There are different types of information systems that can be used for various organizational functions and management levels. Major functional subsystems include marketing, manufacturing, logistics, personnel, finance and accounting, and information processing. These systems support different activities along the value chain such as transaction processing, operational control, management control, and strategic planning. Information systems also differ in terms of time scales, level of detail, source of data, and frequency of use depending on whether they are used for operational, tactical, or strategic management. Transaction processing systems provide data to decision support systems and executive information systems which are used to support non-routine decisions at middle and senior management levels respectively.

1. Management Information
Systems

2. Types of information systems
 For different types of
organizations
 For different functions within
organizations
 For different business needs
 and at different management
levels of an organization
1 - 2

3. 1 - 3
Major
Functional
Subsystem
Some typical uses
Marketing Sales forecasting, sales planning, customer and
sales analysis
Manufacturing Production planning and scheduling, cost
control analysis.
Logistics Planning and control of purchasing, inventories,
distribution
Personnel Planning personnel requirements, analyzing
performance, salary administration.
Finance and
Accounting
Financial analysis, cost analysis, capital
requirements planning, income measurement
Information
processing
Information system planning, cost-effectiveness
analysis
Top management Strategic Planning, resource allocation

4. Value Chain and IS
1 - 4

5. 1 - 5
Activity
Subsystem
Some typical uses
Transaction
Processing
Processing of orders, shipments
and receipts
Operational control Scheduling of activities and
performance reports
Management
control
Formulation of budgets and
resource allocation
Strategic planning Formulation of objectives and
strategic plans

6. 1 - 6

7. 1 - 7
Time
Scales
Level of
Detail
Source
Degree of
Uncertainty
Frequency
Operational Middle Strategic
Management Management Management
Immediate
Highly
detailed
Internal
Certain
Frequent
Long
Term
Summarised
External
Uncertain
Infrequent

8. How MIS Obtains Data from
TPS
1 - 8

9. 9
Decision Support Systems
 Serve middle management
 Support non routine decision making
◦ E.g. What is impact on production schedule if
December sales doubled?
 Often use external information as well
from TPS and MIS
 DSS are either Model-Driven (What if) or
data-driven (Online Analytical Processing)

10. 10
Voyage Estimation Model based
DSS

11. 11
Executive support systems
Support senior management
Address nonroutine decisions requiring
judgment, evaluation, and insight
Incorporate data about external events
as well as summarized information
from internal MIS and DSS
E.g. ESS that provides minute-to-
minute view of firm’s financial
performance as measured by working
capital, AP / AR, cash flow, and
inventory.

12. 12
Model of an ESS
This system pools data from
diverse internal and external
sources and makes them
available to executives in an
easy-to-use form.

13. 13
Interrelationships Among
Systems
TPS are major producers of information, which, in turn, produce information for
other systems. increasingly firms are using new technologies to integrate
information that resides in many different systems.

14. 1 - 14

15. 15
Types of Decisions
Level Operational
Control
Management
Control
Strategic
Planning
Structured
Decisions
Inventory
Reorder,
Production
Scheduling
Pricing of
Bids,
Selection of
credit line
Institutions
Acquisition of
a company,
addition of new
product line
Unstructured
Decisions
Vendor
Selection,
hiring new
supervisor
Allocation of
advertising,
Internal
organization
of a deptt
Entry into new
market, new
organization of
company

16. 16
Information
CharacteristicsStructured Unstructured
Prespecified Ad Hoc
Scheduled Unscheduled
Detailed Summarized
Frequent Infrequent
Historical Forward Looking
Internal External
Narrow Focus Wide Scope

17. 1 -
17