► intro -1 [email protected]. mis management information system [email protected]
TRANSCRIPT
INTRO -1INTRO -1
FaheemkalwarYahoocom
MISMIS
Management Information Management Information SystemSystem
FaheemkalwarYahoocom
MANAGEMENTMANAGEMENT
ManagementManagement in all business and human in all business and human organization activity is simply the act of getting organization activity is simply the act of getting people together to accomplish desired goals and people together to accomplish desired goals and objectives objectives
Management comprises Management comprises planningplanning organizingorganizing staffingstaffing leadingleading or directing and or directing and controllingcontrolling an an organizationorganization (a group of one or more people or (a group of one or more people or entities) or effort for the purpose of accomplishing a entities) or effort for the purpose of accomplishing a goalgoal
Resourcing encompasses the deployment and Resourcing encompasses the deployment and manipulation of manipulation of human-resourceshuman-resources financialfinancial resources resources technologicaltechnological resources and resources and natural resourcesnatural resources FaheemkalwarYahoocom
MANAGEMENTMANAGEMENT
Frenchman Frenchman Henri Henri FayolFayol considers considers management to consist of seven management to consist of seven functionsfunctions
planningplanning organizingorganizing leadingleading coordinatingcoordinating controllingcontrolling staffingstaffing motivatingmotivating
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InformationInformation
As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation
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SystemSystem
SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole
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MISMIS
Management InformationManagement InformationManagement information system helps Management information system helps
middle level management planning middle level management planning controlling and decision makingcontrolling and decision making
The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports
It can be presented graphically or It can be presented graphically or pictoricallypictorically
DEFINITIONDEFINITION
An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
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INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
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Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
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Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
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Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
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MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
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Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
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An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
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Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
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Manufacturing MISManufacturing MIS
Schematic
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Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
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Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
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Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
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MISMIS
Management Information Management Information SystemSystem
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MANAGEMENTMANAGEMENT
ManagementManagement in all business and human in all business and human organization activity is simply the act of getting organization activity is simply the act of getting people together to accomplish desired goals and people together to accomplish desired goals and objectives objectives
Management comprises Management comprises planningplanning organizingorganizing staffingstaffing leadingleading or directing and or directing and controllingcontrolling an an organizationorganization (a group of one or more people or (a group of one or more people or entities) or effort for the purpose of accomplishing a entities) or effort for the purpose of accomplishing a goalgoal
Resourcing encompasses the deployment and Resourcing encompasses the deployment and manipulation of manipulation of human-resourceshuman-resources financialfinancial resources resources technologicaltechnological resources and resources and natural resourcesnatural resources FaheemkalwarYahoocom
MANAGEMENTMANAGEMENT
Frenchman Frenchman Henri Henri FayolFayol considers considers management to consist of seven management to consist of seven functionsfunctions
planningplanning organizingorganizing leadingleading coordinatingcoordinating controllingcontrolling staffingstaffing motivatingmotivating
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InformationInformation
As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation
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SystemSystem
SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole
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MISMIS
Management InformationManagement InformationManagement information system helps Management information system helps
middle level management planning middle level management planning controlling and decision makingcontrolling and decision making
The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports
It can be presented graphically or It can be presented graphically or pictoricallypictorically
DEFINITIONDEFINITION
An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
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FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
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Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
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Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
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Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
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MANAGEMENTMANAGEMENT
ManagementManagement in all business and human in all business and human organization activity is simply the act of getting organization activity is simply the act of getting people together to accomplish desired goals and people together to accomplish desired goals and objectives objectives
Management comprises Management comprises planningplanning organizingorganizing staffingstaffing leadingleading or directing and or directing and controllingcontrolling an an organizationorganization (a group of one or more people or (a group of one or more people or entities) or effort for the purpose of accomplishing a entities) or effort for the purpose of accomplishing a goalgoal
Resourcing encompasses the deployment and Resourcing encompasses the deployment and manipulation of manipulation of human-resourceshuman-resources financialfinancial resources resources technologicaltechnological resources and resources and natural resourcesnatural resources FaheemkalwarYahoocom
MANAGEMENTMANAGEMENT
Frenchman Frenchman Henri Henri FayolFayol considers considers management to consist of seven management to consist of seven functionsfunctions
planningplanning organizingorganizing leadingleading coordinatingcoordinating controllingcontrolling staffingstaffing motivatingmotivating
FaheemkalwarYahoocom
InformationInformation
As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation
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SystemSystem
SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole
FaheemkalwarYahoocom
MISMIS
Management InformationManagement InformationManagement information system helps Management information system helps
middle level management planning middle level management planning controlling and decision makingcontrolling and decision making
The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports
It can be presented graphically or It can be presented graphically or pictoricallypictorically
DEFINITIONDEFINITION
An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
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FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
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Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
MANAGEMENTMANAGEMENT
Frenchman Frenchman Henri Henri FayolFayol considers considers management to consist of seven management to consist of seven functionsfunctions
planningplanning organizingorganizing leadingleading coordinatingcoordinating controllingcontrolling staffingstaffing motivatingmotivating
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InformationInformation
As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation
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SystemSystem
SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole
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MISMIS
Management InformationManagement InformationManagement information system helps Management information system helps
middle level management planning middle level management planning controlling and decision makingcontrolling and decision making
The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports
It can be presented graphically or It can be presented graphically or pictoricallypictorically
DEFINITIONDEFINITION
An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
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FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
InformationInformation
As a As a conceptconcept has a diversity of has a diversity of meanings from everyday usage to meanings from everyday usage to technical settings Generally speaking technical settings Generally speaking the concept of information is closely the concept of information is closely related to notions of related to notions of constraintconstraintcommunicationcommunication controlcontrol datadata formform instructioninstruction knowledgeknowledge meaningmeaning mental stimulusmental stimulus patternpatternperceptionperception and and representationrepresentation
FaheemkalwarYahoocom
SystemSystem
SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole
FaheemkalwarYahoocom
MISMIS
Management InformationManagement InformationManagement information system helps Management information system helps
middle level management planning middle level management planning controlling and decision makingcontrolling and decision making
The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports
It can be presented graphically or It can be presented graphically or pictoricallypictorically
DEFINITIONDEFINITION
An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
SystemSystem
SystemSystem (from (from LatinLatin systēmasystēma in turn in turn from Greek ) is a set of interacting or from Greek ) is a set of interacting or interdependent entities real or interdependent entities real or abstract forming an integrated wholeabstract forming an integrated whole
FaheemkalwarYahoocom
MISMIS
Management InformationManagement InformationManagement information system helps Management information system helps
middle level management planning middle level management planning controlling and decision makingcontrolling and decision making
The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports
It can be presented graphically or It can be presented graphically or pictoricallypictorically
DEFINITIONDEFINITION
An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
MISMIS
Management InformationManagement InformationManagement information system helps Management information system helps
middle level management planning middle level management planning controlling and decision makingcontrolling and decision making
The data stored can be used or The data stored can be used or manipulated to produce differently manipulated to produce differently defined reports from pre-defined defined reports from pre-defined reportsreports
It can be presented graphically or It can be presented graphically or pictoricallypictorically
DEFINITIONDEFINITION
An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
DEFINITIONDEFINITION
An MIS is a planned system of An MIS is a planned system of the collecting processing storing the collecting processing storing and disseminating data in the and disseminating data in the form of information needed to form of information needed to carry out the functions of carry out the functions of management In a way it is a management In a way it is a documented report of the documented report of the activities those were planned and activities those were planned and executedexecuted
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
DEFINITIONDEFINITION
According to Philip Kotler According to Philip Kotler A marketing information system A marketing information system
consists of people equipment and consists of people equipment and procedures to gather sort analyze procedures to gather sort analyze evaluate and distribute needed timely evaluate and distribute needed timely and accurate information to marketing and accurate information to marketing decision makers decision makers
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
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INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
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Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
OVERVIEWOVERVIEW
the term MIS arose to describe these the term MIS arose to describe these kinds of applications Today the term kinds of applications Today the term is used broadly in a number of is used broadly in a number of contexts and includes (but is not contexts and includes (but is not limited to) decision support systems limited to) decision support systems resource and people management resource and people management applicationsproject applicationsproject management and database retrieval management and database retrieval applicationapplication
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
OVERVIEWOVERVIEW
At the start in businesses and other At the start in businesses and other organizations internal reporting was organizations internal reporting was made manually and only periodically made manually and only periodically as a by-product of as a by-product of theaccounting system and with some theaccounting system and with some additional statistics and gave limited additional statistics and gave limited and delayed information on and delayed information on management performancemanagement performance
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
OVERVIEWOVERVIEW
In their infancy business computers In their infancy business computers were used for the practical business of were used for the practical business of computing the payroll and keeping computing the payroll and keeping track of accounts payableand accounts track of accounts payableand accounts receivable As applications were receivable As applications were developed that provided managers developed that provided managers with information about with information about sales inventories and other data that sales inventories and other data that would help in managing the enterprise would help in managing the enterprise
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
MIS = IS MIS = IS
The terms The terms MISMIS and and information systeminformation system are often are often confused confused
Information systems include systems that are not Information systems include systems that are not intended for decision making intended for decision making
MIS is sometimes referred to in a restrictive sense MIS is sometimes referred to in a restrictive sense as information technology management That area of as information technology management That area of study should not be confused with computer study should not be confused with computer science IT service management is a practitioner-science IT service management is a practitioner-focused disciplinefocused discipline
MIS has also some differences with Enterprise MIS has also some differences with Enterprise
Resource Planning (ERP) as ERP incorporates elements Resource Planning (ERP) as ERP incorporates elements that are not necessarily focused on decision supportthat are not necessarily focused on decision support
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems1 It Facilitates planning MIS improves the 1 It Facilitates planning MIS improves the
quality of plants by providing relevant quality of plants by providing relevant information for sound decision ndash making information for sound decision ndash making Due to increase in the size and complexity Due to increase in the size and complexity of organizations managers have lost of organizations managers have lost personal contact with the scene of personal contact with the scene of operationsoperations
2 In Minimizes information overload MIS 2 In Minimizes information overload MIS change the larger amount of data in to change the larger amount of data in to summarized form and there by avoids the summarized form and there by avoids the confusion which may arise when managers confusion which may arise when managers are flooded with detailed factsare flooded with detailed facts
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 3 MIS Encourages Decentralization 3 MIS Encourages Decentralization
Decentralization of authority is possibly Decentralization of authority is possibly when there is a system for monitoring when there is a system for monitoring operations at lower levels MIS is operations at lower levels MIS is successfully used for measuring successfully used for measuring performance and making necessary change performance and making necessary change in the organizational plans and proceduresin the organizational plans and procedures
4 It brings Co ordination MIS facilities 4 It brings Co ordination MIS facilities integration of specialized activities by integration of specialized activities by keeping each department aware of the keeping each department aware of the problem and requirements of other problem and requirements of other departments It connects all decision departments It connects all decision centers in the organization centers in the organization
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Various Advantages of Various Advantages of Information Management Information Management
SystemsSystems 5 It makes control easier MIS serves as a 5 It makes control easier MIS serves as a
link between managerial planning and link between managerial planning and control It improves the ability of control It improves the ability of management to evaluate and improve management to evaluate and improve performance The used computers has performance The used computers has increased the data processing and storage increased the data processing and storage capabilities and reduced the cost capabilities and reduced the cost
6 MIS assembles process stores 6 MIS assembles process stores Retrieves evaluates and Disseminates Retrieves evaluates and Disseminates the informationthe information
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
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Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
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Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
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MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
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Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
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An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
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Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
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Manufacturing MISManufacturing MIS
Schematic
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Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
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Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
SOCIOLOGYSOCIOLOGY
POLITICAL POLITICAL SCIENCESCIENCE
PSYCHOLOGYPSYCHOLOGY
COMPUTER COMPUTER
SCIENCESCIENCEOPERATIONS OPERATIONS
RESEARCHRESEARCH
MANAGEMENTMANAGEMENT
SCIENCESCIENCE
TECHNICAL APPROACHESTECHNICAL APPROACHES
MISMIS
BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
INTRO -2INTRO -2
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Management Management Information SystemsInformation Systems
By Sarfraz HaiderBy Sarfraz Haider
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Data Versus Information Data Versus Information
In everyday language data and information are used In everyday language data and information are used interchangeably interchangeably
For example the Oxford American Dictionary For example the Oxford American Dictionary defines data as defines data as
facts or information to be used as a basis of facts or information to be used as a basis of discussing or deciding something discussing or deciding something
At the same time information is defined as At the same time information is defined as
facts told or discovered or facts to be fed to a facts told or discovered or facts to be fed to a computer computer
In both definition data and information are assumed to In both definition data and information are assumed to be one and same conceptbe one and same concept
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Data are collection of observations Data are collection of observations which may or may not be true Thus which may or may not be true Thus data may not be facts Data become data may not be facts Data become information when they are processed information when they are processed To process data one needs to To process data one needs to
(1) clean the data from errors and (1) clean the data from errors and reduce sources of unreliability reduce sources of unreliability
(2) analyze data to make it relevant to (2) analyze data to make it relevant to decision at hand and decision at hand and
(3) organize data in ways that help (3) organize data in ways that help understanding understanding
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Role of InformationRole of Informationin Organizationsin Organizations
Organizations collect and distribute Organizations collect and distribute information In the process they also distort information In the process they also distort it Some distortions are intentionalit Some distortions are intentional
Sometimes employees are asked to Sometimes employees are asked to summarize data and report it to their summarize data and report it to their supervisors By definition summarizing data supervisors By definition summarizing data means leaving some parts of it out This is means leaving some parts of it out This is one type of distortion that is intentional one type of distortion that is intentional
Other times organizations distort data so Other times organizations distort data so much as to changes its meaning and value much as to changes its meaning and value This section describes the importance of This section describes the importance of information within organization and how information within organization and how information is acquired and changed within information is acquired and changed within organizationsorganizations
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
In this definition information is meaningful data Data are the building blocks and information is the finished house The raw materials are useless as a pile but once organized into a structure they become someones home Likewise data are useless for managers unless organized into information
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
OrganizationOrganization
Basically an organization is a group of Basically an organization is a group of people intentionally organized to people intentionally organized to accomplish an overall common goal accomplish an overall common goal or set of goals Business organizations or set of goals Business organizations can range in size from two people to can range in size from two people to tens of thousands tens of thousands
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
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FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
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Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
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MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Organization as a System Organization as a System
It helps to think of organizations as It helps to think of organizations as systems Simply put a system is an systems Simply put a system is an organized collection of parts that are organized collection of parts that are highly integrated in order to highly integrated in order to accomplish an overall goal The accomplish an overall goal The system has various inputs which are system has various inputs which are processed to produce certain outputs processed to produce certain outputs that together accomplish the overall that together accomplish the overall goal desired by the organization goal desired by the organization
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Organization as a System Organization as a System
There is ongoing feedback among There is ongoing feedback among these various parts to ensure they these various parts to ensure they remain aligned to accomplish the remain aligned to accomplish the overall goal of the organization There overall goal of the organization There are several classes of systems are several classes of systems ranging from very simple frameworks ranging from very simple frameworks all the way to social systems which all the way to social systems which are the most complex Organizations are the most complex Organizations are of course social systemsare of course social systems
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Systems have inputs processes outputs Systems have inputs processes outputs and outcomes To explain and outcomes To explain inputsinputs to the to the system include resources such as raw system include resources such as raw materials money technologies and materials money technologies and people These inputs go through a people These inputs go through a processprocess where theyre aligned moved where theyre aligned moved along and carefully coordinated ultimately along and carefully coordinated ultimately to achieve the goals set for the system to achieve the goals set for the system OutputsOutputs are tangible results produced by are tangible results produced by processes in the system such as products processes in the system such as products or services for consumers or services for consumers
Organization as a System Organization as a System
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Management againManagement again
Management is the process of Management is the process of leadingleading controlling controlling planning planning and organizing and organizing
The most important thing managers do is The most important thing managers do is make quick accurate and decisive decisions make quick accurate and decisive decisions The manager is important because heshe is The manager is important because heshe is the leader of the organization that leads the leader of the organization that leads people to get things done people to get things done
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Organization and informationOrganization and information
The issue of information requirements of an The issue of information requirements of an organization and their specifications span two organization and their specifications span two isolated territories One territory is that of isolated territories One territory is that of organization and management and the other organization and management and the other belongs to technicians There is a belongs to technicians There is a considerable gap between these two considerable gap between these two territories Research in requirements territories Research in requirements engineering (technicians side) has primarily engineering (technicians side) has primarily concentrated on designing and developing concentrated on designing and developing formal languages to document and analyze formal languages to document and analyze user requirements once they have been user requirements once they have been determined determined
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Organizational StructureOrganizational Structure
Organizational structure is the formal Organizational structure is the formal system of task and reporting relationships system of task and reporting relationships that controls coordinates and motivates that controls coordinates and motivates employees so they cooperate and work employees so they cooperate and work together to achieve organizational goals together to achieve organizational goals
Organizations areOrganizations are Social entitiesSocial entities Goal orientedGoal oriented Deliberately structuredDeliberately structured Linked to the external environmentLinked to the external environment
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
HEC
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Components of an Components of an OrganizationOrganization
The environment influences organizational The environment influences organizational design When uncertainty exists the ability design When uncertainty exists the ability to respond quickly and creatively is to respond quickly and creatively is important when the environment is stable important when the environment is stable an organization improves performance by an organization improves performance by making attitudes and behaviors predictable making attitudes and behaviors predictable Creativity and predictability are fostered by Creativity and predictability are fostered by certain structures and culturescertain structures and cultures
Task - an organizationrsquos mission purpose or Task - an organizationrsquos mission purpose or goal for existinggoal for existing
People - the human resources of the People - the human resources of the organizationorganization
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Components of an Components of an OrganizationOrganization
Structure - the manner in which an Structure - the manner in which an organizationrsquos work is designed at the organizationrsquos work is designed at the micro level how departments micro level how departments divisions amp the overall organization are divisions amp the overall organization are designed at the macro leveldesigned at the macro level
Technology - the intellectual and Technology - the intellectual and mechanical processes used by an mechanical processes used by an organization to transform inputs into organization to transform inputs into products or services that meetproducts or services that meet
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Information SystemInformation System
Information System (IS) refers to a system of Information System (IS) refers to a system of people data records and activities that people data records and activities that process the data and information in an process the data and information in an organization and it includes the organization and it includes the organizations manual and automated organizations manual and automated processes In a narrow sense the term processes In a narrow sense the term information system (or computer-based information system (or computer-based information system) refers to the specific information system) refers to the specific application software that is used to store data application software that is used to store data records in a computer system and automates records in a computer system and automates some of the information-processing activities some of the information-processing activities of the organizationof the organization
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
What is A Component
A component is an independent and replaceable part of a system that fulfills a clear function
A component works in the context of a well-defined architecture
It communicates with other components by the interfaces
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Levels of decision MakingLevels of decision Making
Strategic Management 1048708 Set long-term objectives allocate
resources
1048708 Tactical Management 1048708 Monitor performance make adjustments
1048708 Operational 1048708 How to carry out specific day-to-day
tasks
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Types of DecisionsTypes of Decisions
1048708 1048708 StructuredStructured 1048708 1048708 A routine decision whose factors are knownA routine decision whose factors are known
1048708 1048708 Semi- structuredSemi- structured 1048708 1048708 A risky decision in which one or more factors isA risky decision in which one or more factors is unknownunknown
1048708 1048708 UnstructuredUnstructured 1048708 1048708 A unique decision for which the relevant factors A unique decision for which the relevant factors
areare unknown entails uncertainty and requires unknown entails uncertainty and requires
judgmentjudgment
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
6 Major Information Sys Types
by Support Provided 1048708 Transaction Processing Systems
(TPS) 1048708 Office (Automation) Systems (OAS) 1048708 Knowledge (Work) Systems (KWS) 1048708 Management Information Systems
(MIS) 1048708 Decision Support Systems (DSS) 1048708 Executive Support Systems (ESS)
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
IS TypesIS Types
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Management Information Systems (MIS)
1048708 Mainly support tactical management level 1048708 Deals with structuredsemi-structured decisions 1048708 Generally reporting and control oriented 1048708 Little analytical capability 1048708 Input data stored in DB by TPS 1048708 Processing simple models 1048708 Output summary and exception reports 1048708 Example inventory control systems sales
performance analysis pricing systems TPS KWS OAS MIS DSS EIS
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Types of SystemTypes of System
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Computer Based Information Computer Based Information SysSys
Computer-based information Computer-based information systemsystem) refers to the specific ) refers to the specific application software that is used to application software that is used to store data records in a computer store data records in a computer system and automates some of the system and automates some of the information-processing activities of the information-processing activities of the organization Computer-based organization Computer-based information systems are in the field of information systems are in the field of information technologyinformation technology
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
a technologically a technologically implemented medium for implemented medium for recording storing and recording storing and disseminating linguistic disseminating linguistic expressions as well as for expressions as well as for drawing conclusions from drawing conclusions from such expressions such expressions
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Decision MakingDecision Making
Decision Making 1048708 Decision making involves choosing
between two or more alternatives minus Remember that not making a
decision is a decision minus It has four major elements
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Decision MakingDecision Making
minus Problem definition clearly there are more issues questions and problems than individuals or society has the time or resources to confront
minus Problems are plentiful attention is scarce minus In order for problems to get attention they
have to first get on the policy agenda minus As the problem emerges and gains attention
it also tends to gain focus and take shape minus See problem definition notes below
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Decision MakingDecision Making
minus Information search The definition between problem definition and information is never sharp When we are vaguely aware of some problem our first step is often to learn more about it This learning process often gives the problem focus
minus Time is often a big factor in information search When time is short we often satisfice rather than optimize (see discussion on bounded rationality below)
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Decision MakingDecision Making
minus Choice Weighing options and selecting among alternatives are often the visible part of decision-making processes
minus However choices are rarely clear and when clear alternatives are know the consequences of these actions is often poorly understood
minus Similarly our preferences are rarely clear or constant when viewed over time
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Decision MakingDecision Making
minus Evaluation Decisions do not end with a choice among alternatives Few choices are final and most are continually reconsidered in light of new information
minus Even if choices are not repeated current choices become precedents for future decision
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Decision MakingDecision Making
minus Most difficult aspect of evaluating choices is to establish criteria for evaluation and to not fall victim to common decision-making problems like cognitive bolstering (discussed below) where you search for information to justify rather than scrutinize past decisions
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Constraints on decision making
minus Upper Limits of a Decision Limitations on how far a decisionmaker can go
minus Lower Limits of a Decision Minimum that must occur for problem to be solved
minus Strategic Limiting Factors Factor whose availability in the right form at the right place and time will establish a new system of conditions
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Individual differences individuals have different decision-making styles minus Different ways of thinking (eg some
are logical some process information serially some are intuitive or creative some view interconnections better than others etc)
minus Some are more tolerant of ambiguity
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Combination of these two factors creates four styles minus Directive style have low tolerance for
ambiguity and seek rationality minus Analytical types accept ambiguity and
seek rationality minus Conceptual style tend to be intuitive
and accept ambiguity minus Behavioral styles work well with others
are intuitive and have a low tolerance for ambiguity
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Organizational constraints
minus Managers are strongly influenced by the criteria that they will be evaluated on
minus Reward systems influences decision-makers by suggesting to them what choices are preferable in terms of a personal payoff
minus Organizations often impose time constraints minus Organizations often give preference to
historical precedents and decisions are often made in the context of a stream of decisions
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Decisionmakers tend to rely on heuristics(serving to indicate Pattern ) judgmental
shortcuts when making decisions minus Availability heuristic the tendency for people
to base their judgments on information that is readily available to them
minus Representative heuristic Decision-makers tend to assess the likelihood of an occurrence by trying to match it with a preexisting category
minus Escalation of commitment is an increased commitment to a pervious decision in spite of negative information
1048708
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Improving Creativity
minus Direct instruction ask people to be creative It works because people tend to accept obvious solutions and this often prevents people from exploring creative solutions
minus Attribute listing list attributes of alternatives and examine them fully to generate new alternatives or eliminate them
minus Lateral thinking instead of thinking beginning to end other avenues are explored ndash perhaps starting with the solution and working towards the beginning
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Cultural differences
minus People from different cultures often make decisions in different ways by giving different importance to rationality their belief in the ability of people to solve problems and emphasis on solving problems
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
INTRO-3INTRO-3
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Chapter 9Chapter 9Management Information Systems
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Management Information Management Information Systems (MIS)Systems (MIS)
Management information system (MIS)Management information system (MIS)An MIS provides managers with information An MIS provides managers with information
and support for effective decision making and and support for effective decision making and provides feedback on daily operationsprovides feedback on daily operations
Output or reports are usually generated Output or reports are usually generated through accumulation of transaction through accumulation of transaction processing dataprocessing data
Each MIS is an integrated collection of Each MIS is an integrated collection of subsystems which are typically organized subsystems which are typically organized along functional lines within an organizationalong functional lines within an organization
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Sources of Management Sources of Management InformationInformation
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically or on a schedule (daily Produced periodically or on a schedule (daily
weekly monthly)weekly monthly)
Key-indicator reportKey-indicator reportSummarizes the previous dayrsquos critical activitiesSummarizes the previous dayrsquos critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a managerrsquos requestGives certain information at a managerrsquos request
Exception reportException reportAutomatically produced when a situation is Automatically produced when a situation is
unusual or requires management actionunusual or requires management action
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Scheduled Report ExampleScheduled Report Example
Daily Sales Detail ReportDaily Sales Detail Report
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $3214$3214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $5660$5660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $1224$1224
P1245P124555
C52313C52313 SAKSAK 081296081296 2424 P4012P4012 $2448$2448
P1245P124566
C34123C34123 JMWJMW 08J139608J1396 144144 P3214P3214 $720$720
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Key Indicator Report ExampleKey Indicator Report Example
Daily Sales Key Indicator ReportDaily Sales Key Indicator Report
ThisThisMonthMonth
LastLastMonthMonth
LastLastYearYear
Total Orders Month to DateTotal Orders Month to Date $1808$1808 $1694$1694 $1014$1014
Forecasted Sales for the MonthForecasted Sales for the Month $2406$2406 $2224$2224 $2608$2608
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Demand Report ExampleDemand Report Example
Daily Sales by Sales Rep Summary ReportDaily Sales by Sales Rep Summary Report
Prepared 0810xxPrepared 0810xx
Sales Rep IDSales Rep ID AmountAmount
CARCAR $42345$42345
GWAGWA $38950$38950
SAKSAK $22100$22100
JWNJWN $12350$12350
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Exception Report ExampleException Report Example
Daily Sales Exception Report ndash ORDERS OVER $10000Daily Sales Exception Report ndash ORDERS OVER $10000
Prepared 0810xxPrepared 0810xx
OrderOrder
CustomerCustomerIDID
Sales Sales Rep IDRep ID
ShipShipDateDate QuantitQuantit
yyItem Item AmountAmount
P1245P124533
C89321C89321 CARCAR 081296081296 144144 P1234P1234 $13214$13214
P1245P124533
C89321C89321 CARCAR 081296081296 288288 P3214P3214 $15660$15660
P1245P124533
C03214C03214 GWAGWA 081396081396 1212 P4902P4902 $11224$11224
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip helliphellip
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Outputs of a Management Outputs of a Management Information SystemInformation System
Earnings by Quarter (Millions)Earnings by Quarter (Millions)
ActualActual ForecastForecast VarianceVariance
22NDND Qtr Qtr 19991999
$126$126 $118$118 6868
11stst Qtr 1999 Qtr 1999 $108$108 $107$107 0909
44thth Qtr 1998 Qtr 1998 $143$143 $145$145 -14-14
33rdrd Qtr 1998 Qtr 1998 $128$128 $133$133 -30-30
Etc See Figure 92
Drill Down ReportsProvide detailed data about a situation
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Characteristics of a Characteristics of a Management Information Management Information
SystemSystem Provides reports with fixed and Provides reports with fixed and
standard formatsstandard formats Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Management Information Management Information Systems for Competitive Systems for Competitive
AdvantageAdvantageProvides support to managers as they Provides support to managers as they work to achieve corporate goalswork to achieve corporate goals
Enables managers to compare results Enables managers to compare results to established company goals and to established company goals and identify problem areas and identify problem areas and opportunities for improvementopportunities for improvement
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
MIS and Web TechnologyMIS and Web Technology
Data may be made available from Data may be made available from management information systems on management information systems on a companyrsquos intraneta companyrsquos intranet
Employees can use browsers and their Employees can use browsers and their PC to gain access to the dataPC to gain access to the data
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Functional AspectsFunctional Aspects
MIS is an integrated collection of MIS is an integrated collection of functional information systems each functional information systems each supporting particular functional areassupporting particular functional areas
Schematic
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
An OrganizationrsquosMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Figure 93
Etc
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Financial MISFinancial MIS
Provides financial information to all Provides financial information to all financial managers within an financial managers within an organizationorganization
Schematic
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Financial statements
Uses and managementof funds
Financial statisticsfor control
Operationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 93
FinancialMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
FinancialDSS
FinancialES
Financialapplications
databases
CustomersSuppliers
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Inputs to the Financial Inputs to the Financial Information SystemInformation System
Strategic plan or corporate policiesStrategic plan or corporate policies Contains major financial objectives and often Contains major financial objectives and often
projects financial needsprojects financial needs Transaction processing system (TPS)Transaction processing system (TPS)
Important financial information collected from Important financial information collected from almost every TPS - payroll inventory control almost every TPS - payroll inventory control order processing accounts payable accounts order processing accounts payable accounts receivable general ledgerreceivable general ledger
External sourcesExternal sources Annual reports and financial statements of Annual reports and financial statements of
competitors and general news itemscompetitors and general news items
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Financial MIS Subsystems Financial MIS Subsystems and Outputsand Outputs
Financial subsystemsFinancial subsystems Profitloss and cost systemsProfitloss and cost systems AuditingAuditing Internal auditingInternal auditing External auditingExternal auditing Uses and management of fundsUses and management of funds
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Manufacturing MISManufacturing MIS
Schematic
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Quality control reports
Process control reports
JIT reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Businesstransactions
Internet orExtranet
Internet orExtranet
Figure 96
ManufacturingMIS
Businesstransactions
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Manufacturingapplications
databases
CustomersSuppliers
MRP reports
Production schedule
CAD output
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Inputs to the Manufacturing Inputs to the Manufacturing MISMIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Order processingOrder processing Inventory dataInventory data Receiving and inspecting dataReceiving and inspecting data Personnel dataPersonnel data Production processProduction process
External sourcesExternal sources
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Manufacturing MIS Manufacturing MIS Subsystems and OutputsSubsystems and Outputs
Design and engineeringDesign and engineering Master production schedulingMaster production scheduling Inventory controlInventory control Manufacturing resource planningManufacturing resource planning Just-in-time inventory and manufacturingJust-in-time inventory and manufacturing Process controlProcess control Computer-integrated manufacturing (CIM)Computer-integrated manufacturing (CIM) Quality control and testingQuality control and testing
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Marketing MISMarketing MIS
Supports managerial activities in Supports managerial activities in product development distribution product development distribution pricing decisions and promotional pricing decisions and promotional effectivenesseffectiveness
Schematic
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Sales by customer
Sales by salesperson
Sales by productOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 99
MarketingMIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Marketingapplications
databases
Pricing report
Total service calls
Customer satisfaction
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Inputs to Marketing MISInputs to Marketing MIS
Strategic plan and corporate policiesStrategic plan and corporate policies The TPSThe TPS External sources External sources
The competitionThe competition The marketThe market
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Marketing MIS Subsystems Marketing MIS Subsystems and Outputsand Outputs
Marketing researchMarketing research Product developmentProduct development Promotion and advertisingPromotion and advertising Product pricingProduct pricing
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Human Resource MISHuman Resource MIS
Concerned with all of the activities Concerned with all of the activities related to employees and potential related to employees and potential employees of the organizationemployees of the organization
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Benefit reports
Salary surveys
Scheduling reportsOperationaldatabases
Databasesof valid
transactionsfor each
TPS
Transactionprocessing
systems
Businesstransactions
Figure 912
HumanResource
MIS
Databases ofexternal data
Databases ofinternal data
ManufacturingDSS
ManufacturingES
Humanresource
applicationsdatabases
Training test scores
Job applicant profiles
Needs and planningreports
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Inputs to the Human Inputs to the Human Resource MISResource MIS
Strategic plan or corporate policiesStrategic plan or corporate policies The TPSThe TPS
Payroll dataPayroll data Order processing dataOrder processing data Personnel dataPersonnel data
External sourcesExternal sources
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Human Resource MIS Human Resource MIS Subsystems and OutputsSubsystems and Outputs
Human resource planningHuman resource planning Personnel selection and recruitingPersonnel selection and recruiting Training and skills inventoryTraining and skills inventory Scheduling and job placementScheduling and job placement Wage and salary administrationWage and salary administration
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom
Other MISsOther MISs
Accounting MISsAccounting MISs Provides aggregated information on Provides aggregated information on
accounts payable accounts receivable accounts payable accounts receivable payroll and other applicationspayroll and other applications
Geographic information systems Geographic information systems (GISs)(GISs) Enables managers to pair pre-drawn Enables managers to pair pre-drawn
maps or map outlines with tabular data to maps or map outlines with tabular data to describe aspects of a particular describe aspects of a particular geographic regiongeographic region
End of Chapter 9End of Chapter 9
Chapter 10
FaheemkalwarYahoocom