1

Management Information Systems

Structure of Management Information Systems

Jerry Fjermestad

Copyright 1998-1999

2

PART I

The Physical Components of MIS Types of Organizational Information Systems Information for Management

– A. Attributes of quality information– B. Internal vs external information

Management Reporting Systems (MRS)– A. Characteristics of MRS– B. Reporting by MRS

3

PART I

Decision Support Systems (DSS) Executive Information Systems Expert Systems Informational Support of Management Levels of Planning & Control

– A. Operations Planning & Control– B. Tactical Planning & Control– C. Long-term Strategic Planning & Control

4

PART I

Functional Deparmentation & MIS– A. Organizational Structure– B. Information support of a functional area:

Marketing MIS support to Management

5

PART II

The Role of MIS The Evolving Systems Function Conclusion Introduction to Information Systems

Development What is systems analysis and design? Tools for Systems Development

6

The PhysicalComponents of MIS Hardware Software Database Personnel Procedures Z -1998 Figure 2.7

7

A Networked Information System: Three-Tier Architecture

A Networked Information System: Three-Tier Architecture

CorporateHeadquarters

Finance ProductionMarketingand Sales

CorporateDatabases

Mainframe

DivisionalDatabases

Divisional Minicomputerswith Divisional

Databases

Local Area Network:PCs with Local Databases

SalesforceNotebooks

RegionalOfficeWork-stations

Plant Minicomputers

TelecommunicationsLink

8

A Downsized Networked Information System:Client/Server Architecture

A Downsized Networked Information System:Client/Server Architecture

LAN

LAN

WAN

Client PCs

WorkgroupServer

DatabaseServer

Client PCs

Enterprise Computer(Central Server)

9

10

Types of Organizational Information Systems Z-1992 Table 3.2 p84 Z-1992 Fig 3.2 p85

11

12

13

Information for Management

A. Attributes of quality information– Z-1992 Table 3.3 p 86; Z-1998 2.1

B. Internal vs external information– Internal- information for TPS, MRS, DSS,

OIS– External- information for DSS, EIS

• Organizational advantage is gained from external data

14

15

Information for Management

• sources of data are: sales volume of competitor

– Customer profiles– Questionnaire data (focus groups)– Demographic data

• Z-1992 Table 3.4 p87; Z-1998 2.2• Boundary spanning role• Daft and Weick Model

– Time horizon: past, present & future

16

17

Management Reporting Systems (MRS)

Objective: provide lower & middle management operational control information – monthly/weekly performance reports– attendance reports– sales reports– inventory reports

18

19

Management Reporting Systems (MRS) A. Characteristics of MRS

– Designed by MIS, large & complex, multiple users & DB's

– Support highly structured queries, stable

– DO NOT necessarily support decision making; provide

– information for structure decisions

– Oriented on past & present

– Have limited analytical capabilities; summaries

– Report on internal organization operations

20

Management Reporting Systems (MRS) B. Reporting by MRS

Reports produced from main DBMS and or local DB's– Scheduled periodic reports– Exception reports– Demand (Ad hoc) reports: limited queries

or views of Data

21

Decision Support Systems (DSS)

Support decision making process (unstructured & semi-structured decisions); facilitate a dialogue between user and system; the DB is generally an extract of the main DB – Developed by user and MIS– Use application packages (123, etc)– Generally very flexible (can be modified)– Support the decision making process

22

Decision Support Systems (DSS)

– Project future states of the "world"– Have analytical capabilities – Use internal & external data– Graphics capabilities

23

The Structure of Decision Support SystemsThe Structure of Decision Support Systems

ModelManagement

DataManagement

DialogManagement

Decision Support System

Internal and ExternalDatabases

User

...

24

Executive Information Systems

Provide support for top executives and their aids. Unstructured and semi-structured decision making.– Provide easy access to key information pertaining

to the company and environment– User "seductive" interfaces; Users' time is a

premium– Provide access to internal & external DB's– What if capabilities abound– Tailorable systems; cognitive styles

25

26

Expert Systems

Knowledge based about a specific domain

Use heuristic in the process New systems use neural nets Expert systems are knowledge based

systems that imitate a reasoning process (heuristic) to suggest a solution within a specific domain

27

The Structure of Expert SystemsThe Structure of Expert Systems

ExplanationFacility

InferenceEngine

UserInterface

Expert System Knowledge Base

User

Facts of the Case

Recommendation,Explanation

28

Informational Support of Management

– Z-1998 Figure 2.14 p64 Gorry & Scott-Morton Planning: Setting measurable

objectives for a period of time Control: Comparing actual to planned

performance objectives and taking action in response to deviations and making adjustments to the plan

29

A Summary of the Informational Support of Management

A Summary of the Informational Support of Management

GreaterImportanceof ExternalInformation

MoreSummarizedInformation

LongerTimeHorizon

LessStructuredProblems

StrategicManagement

TacticalManagement

OperationsManagement

Hum

an Resources

Production

Finance

Marketin

g

BusinessFunctions

EIS

DSS

MRS

30

Informational Support of Management

Control information:– status or progress information– warning information– comfort information– FEEDBACK information

31

Levels of Planning & Control

A. Operations Planning & Control– Lower level management– Highly structured – Repetitive information– Examples: Scheduling, inventory movement,

aging reports, cash flow reports, etc.– Involves examining the progress of planned

events and dealing with contingencies if necessary

32

Levels of Planning & Control

B. Tactical Planning & Control– Middle management– Semi-structured and structured– The acquisition and implementation of resources to fit

the strategic plan • The financial plan for a new MIS system;• The plan to match the labor requirements of an MRP

II run;• The resources required for the introduction of a new

product– Use DSS and GSS systems

33

Levels of Planning & Control

C. Long-term Strategic Planning & Control

– Top Management

– Unstructured, semi-structured

– Examples:

• A diversification strategy

• downsizing

• Long-term market strategy

• Outsourcing

– EIS systems

– Internal and external data

34

Functional Departmentation & MIS A. Organizational Structure

– Independent units: Strategic Business Units (SBU's)

– Each has their own business objectives– Each SBU can be subdivided into

functional departments or divisions• Figure Z-1992 3.10 p103• Figure Z-1992 3.11 p104

35

36

37

Functional Departmentation & MIS B. Information support of a functional

area: Marketing– Marketing objective: Create a market and

sell– 4 P's– Marketing MIS Hierarchy

• Operational:– weekly scheduling of sales force and promotions– order processing and customer follow-up

38

Functional Departmentation & MIS

• Tactical:– Sales force and product forecasting– Promotional planning & budgeting– Comparisons with industry standards– Competitive performance analysis– MEASUREMENT

• Strategic:– What is our Market?– How will we satisfy the customers needs?– What does the customer want?

39

, 3.5

Zwass-1992

40

The Role of MIS

A. Introduction– Information technology is partly responsible for the

PARADIGM shift (A change, a new model,) from support to contributing to an organizations profitability.

– From efficient data processing shops– to understanding the goals and objectives of an

Organization– to participating directly in the decision making and

strategy formulation

41

The Role of MIS

– The role of the MIS Executive:• Systems Planning

• Data Center Management & Operations

• Management of Remote Equipment

• Identification of Opportunities for New Systems

• Systems Analysis, Design, and Construction of New Systems

• Distributed Systems: The migration of equipment to user areas and control (selection, purchase, and ownership). Standards sometimes set by IS department.

42

The Role of MIS

• Knowledge Users: Users take on increased responsibility. Identify applications, and conduct systems analysis and design.

• Better Applications: More specific, user friendly, functional, lower price, readily available, and self training. Results: less need for programmers, IS head count and budget decrease as a result.

• Outsourcing: Other, external organizations taking over the management and control of the data centers. Results:

– cost reductions

– head count reductions

– budget reductions.

43

The Role of MISSprague, 1993, 2.1, p37

44

The Role of MIS

B. The CIO's Responsibilities– 1. Understand the business: products, markets &

customers– 2. Establish credibility of the systems department:

responsiveness to needs and requests– 3. Increase the technological maturity of the

organization: "Make it easier to take advantage of computer and telecommunications applications,” Spend money, keep up with technology and applications

45

The Role of MIS

– 4. Create a vision and sell it: Create a goal for the use of IT within the Organization and sell the goal to others (The Marketing of IT)

– 5. Implement a systems architecture that will support the vision and the company in the future. This is perhaps the most difficult responsibility (the Tech, and the Paradigm keep changing).

46

The Role of MIS

C. Understand the Business– Environmental Scanning: Find out what is

happening in the market place– Concentrate on the lines of the business– Sponsor weekly briefings– Attend industry meetings with line executives– Read industry publications– Hold informal listening sessions– Become a partner with the line manager

47

The Role of MIS

– 1. Environmental Scanning• External

– industry background– Pertinent government regulations– History & framework

• Internal– business goal and objectives– major policies and practices – The inputs, outputs and resources of the firm

48

The Role of MIS

– 2. Concentrate on Lines of Business– Treat inputs as a request from a customer and

outputs as an order going to a customer.– Example: GM sells cars, parts and financing. Each

is a different line of the business, and each would required different systems.

– support current operations– use system to influence future ways of working

49

The Role of MIS

– 3. Sponsor Weekly meetings• IS departments need to understand the

business and the operating departments need to understand the systems side.

• Meetings (Weekly, monthly, quarterly, as needed) can help inform and communicate to all members of the organization.

• This also help change the culture to one that is open and accessible to change.

50

The Role of MIS

– 4. Attend meetings with line managers: PC EXPO

– 5. Read industry publications: PC Week, CIO, etc

– 6. Hold informal listening sessions: Manage by walking around

– 7. Become a partner with the line manager

51

The Role of MIS

D. Establish Systems Department Credibility

• Typically may MIS organizations have not• delivered the systems on time• built the "best" systems• provided timely maintenance or enhancements• controlled costs

52

The Role of MIS

– IS/IT must become responsive to the needs of the organization. How?

• By providing• systems on time • the "best" system• provide for maintenance and enhancements• controlling costs

53

The Role of MIS

E. Increase Technological MaturityIn a technologically mature organization both the organization and the employees are comfortable using and managing the technology.

• Ease of use• use in intended ways• have a good attitude to it• have control over it

54

The Role of MIS

– To get comfortable:• IS can train and educate• provide flexible systems• provide "Usable" systems

55

The Role of MIS

F. Create a Vision of the Future– Paradigm shift from reactive to proactive.– Examples:

• order an elevator in one day• design an build a house from a store• reprice funds in an hour or less

– A vision is a statement of how someone believes the future will be or how he/she wants the future to be.

• 1. explore the present • 2. look at tends and make projections

56

The Role of MIS:Effective visions

57

The Role of MIS

H. Why develop a vision?

– 1. To set a direction. providing internal stability for a firm in an unstable environment.

– 2. To help inspire people to take initiative

– Creating a Vision

• 1. Explore the Present

– look at prior experiences: ask questions

– fiddle around: experiment

– get participation: Communication

– clarify the vision over time: feedback

– Listen

58

The Role of MIS

• 2. Scouting the future– study trends– look for shifts in trends– How?

» look everywhere» convergent thinking (consensus, reduction in

equivocality» divergent thinking » ability to map the future» imagination and visioning

59

The Role of MIS

• 3. Ideas for the Future- Dooley Group Conference– Decline in growth of cities

– Holograms to replace travel

– Small is better than big

– Personalized products

– Portable and personal 2-way communication

– Small powerful batteries

– Manufacturing in outer space

– A power shift from a manufacturing base to a KNOWLEDGE base

– Deterrence of the aging process.

60

The Role of MIS

I. Implement an Information System Architecture– The IT infrastructure of an organization)– Hardware, software, communications.– Issues:

• IT should focus on simplifying organizations• IT should flatten hierarchies• IT should shift emphasis on competition to

simplification• Link IT with business strategy

61

The Role of MIS

J. Six Lessons about selling– Selling is necessary to advance ideas– Selling is how things get done in any enterprise– 1. Understand your market place

• reduce uncertainty about the market place• identify the need• fill the need with a product

– 2. Listening is a Potent form of selling– 3. Make your buyer successful

• living up to your commitments and making your customers successful

62

The Role of MIS

– 4. Keep your buyer informed: Customer care

– 5. Bring in a spokesman if Necessary– 6. Personal relationships are the key

63

The Evolving Systems Function C. Where are Systems Departments

Headed?– 1. One view from CSC (Computer Science

Company)– an outsource vendor

• outsourcing is here• IS manages become contracts administers• outsourcing vendor will use "their" platforms• IS people are either outplaced or absorbed

64

The Evolving Systems Function

• Strategic alignment – lower level empowerment– Teams developing the strategy (Groups)

• The questions that must be asked is:• What is need to support the business? • How will the business be supported?

65

The Evolving Systems Function

– 2. Another point of view (A panel discussion)

• The user has/will the IS power• The Guild system• An infrastructure for both central and de-central

control• Usability, and satisfaction• Leadership and direction• guidance and coordination

66

The Evolving Systems Function D. Building Relationships with Line

Departments– 1. Redefining Roles and Skills

• development support• business support• technical services• business services

67

The Evolving Systems Function

– 2. Managing Risks• IS projects are becoming more complex,

widespread, and Expensive• IS personnel are beings distributed- central

systems, division systems and functional systems.

• Thus, top management must assume responsibility

• They are more conservative, cautious, less knowledgeable

68

3.13 The Evolving Systems Function

– 3. Building Relationships• Because of costs- build external relationships

with vendors, consultants, academics• Because of complexity- build internal

relationships with senior management• Because of competition- build relationships with

users- usability and satisfaction.

69

Conclusion

THE TRANSFORMATION OF IS

"we used to do it to them:" the systems groups (EDP) required end users to obey strict rules for getting changes made to the systems, submitting job requests, etc.– Mainframes, transmittals, batch processing,

punch cards, data entry clerks– EFFICIENCY

70

Conclusion

"Next, we did it for them:" systems groups moved to service.– Mainframes, large mini's with custom systems built

by IS without user involvement– EFFECTIVENESS, Efficiency

"Now, we do it with them:" the partnership– Mini's, PC, Windows, application packages– USABILITY, Effectiveness, Efficiency

71

Conclusion

"We are moving toward teach them how to do it themselves:"– UNIX environments, work stations, PC,

LANs, application packages– SATISFACTION, USABILITY,

Effectiveness, efficiency