unit 6 the accounting information system & the management information system management...

Unit 6The Accounting The Accounting

Information SystemInformation System&&

The Management The Management Information SystemInformation System

MANAGEMENT INFORMATION SYSTEMS 8/ERaymond McLeod, Jr. and George Schell

Copyright 2001 Prentice-Hall, Inc.

1-1

Chapter 11The Accounting The Accounting

Information SystemInformation System



11-2

What is Data Processing?What is Data Processing?

Manipulation or transformation of symbols Manipulation or transformation of symbols for the purpose of increasing their for the purpose of increasing their usefulness.usefulness.

Data processing (DP) and transaction Data processing (DP) and transaction processing (TP) are often used processing (TP) are often used interchangeably.interchangeably.

Applied to business dataApplied to business data

11-3

Accounting Information Accounting Information Systems (AIS)Systems (AIS)

Gathers data describing a firm’s activityGathers data describing a firm’s activity Transforms data into informationTransforms data into information Makes information available to users inside Makes information available to users inside

and outside the firmand outside the firm

11-4

EnvironmentEnvironmentA Model of an Accounting Information A Model of an Accounting Information

SystemSystem

InformationInformation

DataData

ManagementManagement

DataDataprocessingprocessing

softwaresoftware

TransformTransform

AccountingAccountingInformationInformationSystemSystem

DatabasDatabasee

OutputOutputphysicalphysical

resourcesresources

InputInputphysicalphysical

resourcesresources

EnvironmentEnvironment11-5

Data Processing TasksData Processing Tasks

1. Gather data1. Gather data– Each transaction is documentedEach transaction is documented– What happened?What happened?– When did it happen?When did it happen?– How much (volume, value)?How much (volume, value)?– Transactions describeTransactions describe

11-6

2.2. Manipulate data Manipulate data – Classify (use codes)Classify (use codes)– SortSort– CalculateCalculate– SummarizeSummarize

Data Processing Tasks [cont.]Data Processing Tasks [cont.]

11-7

3. Store data3. Store data

– Describes each transactionDescribes each transaction– Represents most of the databaseRepresents most of the database


11-8

4. Document preparation4. Document preparation– TriggersTriggers

» By an actionBy an action

» By a time scheduleBy a time schedule

– Hardcopy or on-screenHardcopy or on-screen


11-9

Characteristics of the AISCharacteristics of the AIS

Performs necessary tasksPerforms necessary tasks Standard proceduresStandard procedures Detailed dataDetailed data Historical focusHistorical focus Provides minimal problem-solving Provides minimal problem-solving

informationinformation

11-10

Sample AISSample AISThe Distribution SystemThe Distribution System

UsersUsers– Manufacturers Manufacturers – Wholesalers Wholesalers – RetailersRetailers

General in natureGeneral in nature Used in many different types of firmsUsed in many different types of firms

– RetailersRetailers– Manufacturing Manufacturing – Service Service

11-11

DFDsDFDs

Data flow diagramData flow diagram– Document a system in a hierarchical mannerDocument a system in a hierarchical manner– Data flows, processes, environmental elementsData flows, processes, environmental elements

Context level is overall system within Context level is overall system within environmentenvironment

Leveled and Balanced DFDsLeveled and Balanced DFDs

11-12

CustomersCustomers


Distributionsystem

SuppliersSuppliers

MaterialsMaterialsstockroomstockroom

Sales ordersSales orders

RejectedRejectedsalessalesorderordernoticesnotices

InvoicesInvoices

StatementsStatements

Payments by customersPayments by customers

CommitmentsCommitments

Purchases ordersPurchases orders

ShipmentsShipments

Supplier invoicesSupplier invoices

Supplier statementsSupplier statements

Payments to suppliersPayments to suppliers

StockStock

Other reportsOther reports

Budget Budget reportsreports

BalanceBalancesheetsheet

Income Income statementstatement

A Context Diagram of the A Context Diagram of the Distribution SystemDistribution System

11-13

CustomersCustomersSales OrdersSales Orders

Rejected sales order noticesRejected sales order notices

InvoicesInvoices


Payments by customersPayments by customers

Receivables ledger dataReceivables ledger data

1. Fill

Orders

Inventory ledger dataInventory ledger data

Payables ledger dataPayables ledger data


Budget reportsBudget reports

BalanceBalancesheetsheet

IncomeIncomestatementstatement


ReceivedReceived itemsitems

Purchasing dataPurchasing data CommitmentsCommitments

Purchase OrdersPurchase Orders 2.Order

replenish-mentstock

ShipmentsShipments




SuppliersSuppliers

StockMaterialsMaterialsstockroomstockroom

A Figure 0 Diagram of the A Figure 0 Diagram of the Distribution SystemDistribution System

3.Maintaingeneralledger

11-14

Customers

1.31.3BillingBilling

1.11.1OrderOrderEntryEntry

1.41.4AccountsAccountsreceivablereceivable

1.21.2InventoryInventory

Sales ordersSales orders

Rejected sales Rejected sales order noticesorder notices

Accepted ordersAccepted orders

Filled itemsFilled items

Purchasing dataPurchasing data

ReceivedReceived itemsitems

InventoryInventoryledger dataledger data


Billed ordersBilled orders

Sta

tem

ents

Sta

tem

ents

InvoicesInvoices

CompletedCompleted ordersorders

P

aym

ents

b

y cu

sto

me

rsP

aym

ents

b

y cu

sto

me

rs

3 3 2

2

A Figure 1 Diagram of A Figure 1 Diagram of the the Systems that Fill Systems that Fill Customer Customer Orders Orders

11-15



SuppliersSuppliers




Payable Payable ledger dataledger data


StockStock

Incurred obligationsIncurred obligations

2.2Receiving

Issued purchaseIssued purchaseorder dataorder dataFilledFilled

purchasepurchaseordersorders

ShipmentsShipments

Received itemsReceived items

Purchase ordersPurchase orders

ReceivedReceivedpurchasespurchases

2.1Purchasing

2.3 Accounts payable

A Figure 2 Diagram of the Systems that Order Replenishment StockA Figure 2 Diagram of the Systems that Order Replenishment Stock

11

33

11

11-16

3.1Update general ledger


Inventory ledger dataInventory ledger data

Payables ledger dataPayables ledger data

General ledger recordsGeneral ledger records

Updated general ledger recordsUpdated general ledger records

GeneralGeneralledgerledger

Management report dataManagement report data

3.2Prepare

management

reports


Budget reportsBudget reports

Balance sheetBalance sheet

Income statementIncome statement ManagementManagement

A Figure 3 Diagram of the Systems That A Figure 3 Diagram of the Systems That Perform General Ledger ProcessesPerform General Ledger Processes

11

11

22

11-17

Fill Customer OrdersFill Customer Orders

Order entryOrder entry– Sales order formSales order form

InventoryInventory– Process salesProcess sales– Process receiptsProcess receipts– Feed general ledgerFeed general ledger

11-18

CustomersCustomersSales ordersSales orders Edit rejectsEdit rejects

Sales Sales orderorder edit edit ejectsejects

Sales Sales orderorder edit edit ejectsejects1.1.1

Edit order data

RejectedRejectedsales ordersales order

noticesnotices

Edited Edited ordersorders

CustomerCustomer credit filecredit file

CustomerCustomer credit filecredit file

Credit dataCredit data

1.1.21.1.2ComputerComputer

creditcredit checkcheck

1.1.21.1.2ComputerComputer

creditcredit checkcheck

Edited and checked ordersEdited and checked orders

Credit RejectsCredit Rejects

Sales Sales orderordercredit credit rejectsrejects

AcceptedAccepted ordersorders

1.1.3 Log inorders

Order dataOrder data

Completed ordersCompleted orders1.1.4Mark filledorders

Date filedDate filedOrder logOrder log

A Figure 1.1 Diagram of the Order Entry SystemA Figure 1.1 Diagram of the Order Entry System

1.21.2

1.31.3

11-19

BackorderBackorderfilefile

BackorderBackorderfilefile

1.2.1Check

the balanceon hand

1.2.1Check

the balanceon hand

1.2.2Check

thereorderpoint

1.2.2Check

thereorderpoint

1.2.3Add

receiveditems

1.2.3Add

receiveditems

1.2.4Providegeneralledgerdata

1.2.4Providegeneralledgerdata

Item Item recordsrecords

BackorderBackorderrecordsrecords InventoryInventory

filefile

InventoryInventoryfilefileItemsItems

availableavailable

Updated Updated itemitem

recordsrecords

Filled Filled itemsitems


InventoryInventoryfile additionsfile additions

InventoryInventoryrecordsrecords

Received Received itemsitems

InventoryInventoryledger ledger datadata

A Figure 1.2 Diagram of the Inventory SystemA Figure 1.2 Diagram of the Inventory System1.11.1

1.31.3 22

33

22

AcceptedAcceptedordersorders

11-20

BillingBilling

InvoiceInvoice– Note:Note:

» 1. Customer data1. Customer data

» 2. Item data2. Item data

11-21

CustomersCustomersCustomersCustomers

1.3.1Obtain

customerdata

CustomerCustomerfilefile

1.3.2Prepareinvoices

FilledFilleditemsitems

Customer dataCustomer data

Invoice Invoice datadata

Billed ordersBilled ordersInvoicesInvoices

CompletedCompletedordersorders

A Figure 1.3 Diagram of the A Figure 1.3 Diagram of the Billing SystemBilling System

1.21.2

1.11.1

1.41.4

11-22

Accounts ReceivableAccounts Receivable

Four separate triggersFour separate triggers– Today's salesToday's sales– Today's paymentsToday's payments– Time to send statementsTime to send statements– Need to provide general ledger dataNeed to provide general ledger data

11-23

Billed ordersBilled orders

AccountsAccountsreceivable receivable

filefile

AccountsAccountsreceivable receivable

filefile

ReceivablesReceivablesledger dataledger data

ReceivablesReceivablesrecordsrecordsto deleteto delete

New receivablesNew receivables Receivables recordsReceivables records

1.4.3Prepare

statements

CustomersCustomers

Payments by Payments by customerscustomers

PaidPaidreceivablesreceivables

filefile

PaidPaidreceivablesreceivablesrecordsrecords

Statement recordsStatement records


A Figure 1.4 Diagram of the A Figure 1.4 Diagram of the Accounts Receivable Accounts Receivable

SystemSystem1.4.1Add new

receivables

1.4.4Providegeneral

ledger data

1.4.2Delete paidreceivables

33

1.31.3

11-24

Order Replenishment Order Replenishment StockStock

PurchasingPurchasing– Emerging technologiesEmerging technologies

» EDIEDI

» ISDNISDN

– Purchase orderPurchase order

11-25

SupplierSupplier filefile

SupplierSupplier filefile

Outstanding Outstanding purchasepurchase order filesorder files

Outstanding Outstanding purchasepurchase order filesorder files

2.1.1 Select

suppliers

Purchasing dataPurchasing data Past performance dataPast performance data

InventoryInventoryand supplier dataand supplier data

Purchase order Purchase order datadata

2.1.2Obtain verbalcommitments

SuppliersSuppliers2.1.3Prepare

purchaseorders

2.1.4Close outpurchase

orders


Purchase OrdersPurchase Orders

Issued purchaseIssued purchaseorder dataorder data

IncurredIncurredObligationsObligations

PurchasePurchaseorder recordsorder records

Filled purchase OrdersFilled purchase Orders

Purchase recordsPurchase recordsto close outto close out

A Figure 2.1 Diagram of the Purchasing SystemA Figure 2.1 Diagram of the Purchasing System

11

2.22.2

2.22.2

2.32.3

Purchase Purchase Order Order

history filehistory file

Purchase Purchase Order Order

history filehistory fileRemoved purchaseRemoved purchaseorder recordsorder records

11-26

A Figure 2.2 Diagram of the Receiving SystemA Figure 2.2 Diagram of the Receiving System

SuppliersSuppliersPurchasedPurchaseditems fileitems file

PurchasedPurchaseditems fileitems file

2.2.1processreceipts


2.2.1Notifyother

systems

2.12.1

2.12.1

2.32.3

11

PurchasedPurchaseditem dataitem data

IssuedIssuedpurchasepurchaseorderorderdatadata

ShipmentsShipments

StocksStocks

ReceiptReceiptinformationinformation

Received itemsReceived items

Filled purchase ordersFilled purchase orders

Received purchasesReceived purchases

11-27

Accounts PayableAccounts Payable

The firm pays suppliers when:The firm pays suppliers when:1.1.Stock was ordered (P.O. file copy)Stock was ordered (P.O. file copy)

2.2.Stock was received (Received purchases file)Stock was received (Received purchases file)

3.3.InvoiceInvoice

11-28

Paid Payables RecordsPaid Payables Records

Paid Supplier Paid Supplier

DataData

AccountsAccountspayablepayable

filefile

AccountsAccountspayablepayable

filefile


filefile


filefile

Paid Paid payablespayables

filefile

Paid Paid payablespayables

filefile

SuppliersSuppliersSuppliersSuppliers

Invoice andInvoice andstatementstatement

filefile

Invoice andInvoice andstatementstatement

filefile

ReceivedReceivedPurchasesPurchases

IncurredIncurredObligationsObligations

New PayablesNew Payablesdatadata

PayablesPayablesRecordsRecords Payables LedgerPayables Ledger

DataData

ReceiptReceiptDataData

Payments to SuppliersPayments to Suppliers

Supplier InvoicesSupplier Invoices

Invoice DataInvoice Data

PayablesPayablesRecords toRecords todeletedelete

A Figure 2.3 Diagram of the Accounts Payable A Figure 2.3 Diagram of the Accounts Payable SystemSystem

PaymentPaymentdatadata

Supplier Supplier statementsstatements

2.3.4Providegeneral ledgerdata

2.3.3Delete paidpayables

2.3.1Set up

supplierpayablesrecords

2.3.2Make

supplierpayments

2.12.1

2.22.2

33

11-29

AIS is the Foundation SystemAIS is the Foundation System

The AIS must be implemented firstThe AIS must be implemented first– MISMIS

– DSSDSS

– ES ES

Depends on a well-designed AIS

11-30

SummarySummary AIS maintains financial records of the firmAIS maintains financial records of the firm Data processing components Data processing components

– Data gatheringData gathering

– Data manipulationData manipulation

– Data storageData storage

– Document preparationDocument preparation AIS SubsystemsAIS Subsystems AIS contributes to problem solvingAIS contributes to problem solving

11-31

Chapter 12The The

Management Management

Information SystemInformation System



12-32

MIS DefinitionMIS Definition

A computer-based system that makes A computer-based system that makes information available to users with similar information available to users with similar needs.needs.– Users are typically comprise a formal Users are typically comprise a formal

organizational entityorganizational entity– Describes what has happened in the pastDescribes what has happened in the past

12-33

Early MIS EffortsEarly MIS Efforts Popular in business by the mid 1960sPopular in business by the mid 1960s Punched card and keydriven machines were used Punched card and keydriven machines were used

only for data processingonly for data processing The first computers were applied the same wayThe first computers were applied the same way Only a few computer literate people in the firmsOnly a few computer literate people in the firms Managers became aware of computer’s processes Managers became aware of computer’s processes

and powerand power

12-34

MIS is an Organizational MIS is an Organizational ResourceResource

InformationInformation– Past, present, futurePast, present, future– Periodic reports, special reports, simulationsPeriodic reports, special reports, simulations

Similar needsSimilar needs– Functional areaFunctional area– Management levelManagement level– Managers and nonmanagersManagers and nonmanagers

12-35

An MIS ModelAn MIS Model

DatabaseDatabase– AIS data and informationAIS data and information– Environmental data and informationEnvironmental data and information

Interorganizational information systems Interorganizational information systems (IOS)(IOS)– Firms band together with other organizations Firms band together with other organizations

such as supplierssuch as suppliers

12-36

EnvironmentEnvironmentOrganizational Organizational

problemproblemsolverssolvers

Report writingReport writingsoftwaresoftware

MathematicalMathematicalmodelsmodels

Management Management InformationInformation

SystemSystem

An MIS ModelAn MIS ModelData Data Information Information

EnvironmentEnvironment

DatabaseDatabase

12-37

ExecutiveInformation

System(EIS)

Organizational Information Organizational Information SystemsSystems

Marketinginformation

system

Manufacturinginformation

system

Financialinformation

system

Human resourceinformation

system 12-38

Functional Information Functional Information SystemsSystems

MIS tailored to meet users’ needs for information MIS tailored to meet users’ needs for information concerning functional areasconcerning functional areas– ManufacturingManufacturing– HRISHRIS– OthersOthers

Executive information systems (EIS)Executive information systems (EIS) Enterprise information systemEnterprise information system

– Pulls functional ISs togetherPulls functional ISs together– Enterprise resource planning (ERP) Enterprise resource planning (ERP)

Report Writing SoftwareReport Writing Software

Periodic and special reports may look the Periodic and special reports may look the samesame

Difference is in what Difference is in what triggerstriggers the report the report– Periodic report Periodic report

» Produced on a scheduleProduced on a schedule

– Special report Special report » Produced when something out of the ordinary Produced when something out of the ordinary

occursoccurs

12-40

Incorporating Incorporating Management Management by Exceptionby Exception

Prepare the report only when exceptions Prepare the report only when exceptions occuroccur

Use the report sequence to highlight Use the report sequence to highlight exceptionsexceptions

Group exceptions togetherGroup exceptions together Show the variance from the normShow the variance from the norm

12-41

An Overtime Earnings ReportAn Overtime Earnings Report

OVERTIME EARNINGS REPORTFOR WEEK ENDING AUGUST 19

OVERTIME EARNINGSDepartment No. Department Name Current Month Year-to-Date

16-10 Receiving $ 2,305.00 $ 5,319.2016-11 Inspection $ 1,025.60 $ 4,386.1216-12 Materials Handling $ 3,392.50 $12,629.0016-13 Tooling $ 78.00 $ 1,049.0016-14 Assembly $ 0.00 $ 792.8016-15 Plating $ 3,504.90 $12,635.2016-16 Shipping $ 5,219.16 $18,294.16 TOTALS $15,525.16 $55,105.48

12-42

SALES BY PRODUCT FOR THE MONTH OF JUNE

PRODUCT PRODUCT CURRENT MONTH YEAR-TO-DATE

NUMBER NAME SALES SALES

129875 GASKET CENTER CASE $ 5,090.23 $ 31,764.00

087235 MAINSHAFT 4,760.01 29,329.45

118320 1ST MOTION SHAFT 1,789.45 28,243.59

250067 OIL SEAL REAR 11,560.24 23,450.07

228203 LAYGEAR 8,369.34 14,709.03

576000 HUB 5TH .00 13,623.68

516012 SHIFT FORK 1-2 450.95 12,634.44

090407 SYNCHRO RING 2ND 2,243.27 9,963.58

282130 BUSH SHIFT LEVER .00 490.00

576301 OIL SLINGER .00 11.50

12-43

AGED ACCOUNTS RECEIVABLE REPORT AS OF MAY 31

-----------------------------------------------------------------

----CUSTOMER-------- CURRENT 30-60 60-90 OVER 90 TOTAL

NUMBER NAME AMOUNT DAYS DAYS DAYS AMOUNT

-----------------------------------------------------------------

51212 KELLY & MARLEY INC 1,003.10 20.26 1023.26

51221 KENNEDY ELECTRIC 181.34 181.34

52472 KENYON MACHINERY 443.10 443.10

53204 KEPNER DANA CO 153.26 114.14 11.12 278.52

54233 KERITE CO 367.94 101.74 469.68

54574 KEYMAN ASSOCIATES 432.71 431.71

55081 KIMBULIANS 24.12 122.81 146.93

55430 KIRSCH CO 26.30 26.30

60245 LEBEN DRILLING 1.10 476.93 174.96 652.39

60772 LEEMONT INC 35.87 35.95 71.82

12-44

SALES BY SALESPERSON REPORT FOR THE MONTH ENDING MARCH 31

SALESPERSON CURRENT-MONTH YEAR-TO-DATE

----------- ---------------------- ----------------------

NO. NAME QUOTA ACTUAL VARIANCE QUOTA ACTUAL VARIANCE

0120 JOHN NELSON 1200 1083 -117 3600 3505 -95

10469 LYNN SHERRY 1000 1162 +162 3000 3320 +320

19261 DARVIN UPSHAW 800 1090 +290 2400 2510 +110

20234 JANIE EVANS 1500 1305 -195 4500 4110 -390

61604 TRAVIS BURKE 2000 2333 +333 6000 6712 +712

62083 CATHY HAGER 1000 990 -10 3000 2319 -681

63049 STEVE JENNER 1100 1250 +150 3300 2416 -884

64040 SAM MOSELY 1050 985 -65 3150 3020 -130

TOTALS 9650 10198 548 28950 27912 -1028

12-45

ModelingModeling

Models are abstractionsModels are abstractions Models may be:Models may be:

– PhysicalPhysical– NarrativeNarrative– GraphicGraphic– MathematicalMathematical

12-46

Mathematical ModelingMathematical Modeling

Most important to MIS usersMost important to MIS users Three dimensionsThree dimensions

– Influence of timeInfluence of time– Degree of uncertaintyDegree of uncertainty– Ability to optimizeAbility to optimize

12-47

Mathematical Model TypesMathematical Model Types

StaticStatic– Does not include timeDoes not include time– Like a snapshot Like a snapshot

DynamicDynamic– Includes timeIncludes time– Like a motion pictureLike a motion picture

12-48

Mathematical Model Types Mathematical Model Types (cont.)(cont.)

ProbabilisticProbabilistic– Includes probabilities of events occuringIncludes probabilities of events occuring– 0.00 to 1.000.00 to 1.00

DeterministicDeterministic– Events are certainEvents are certain– Not randomNot random

12-49

Mathematical Model Types Mathematical Model Types (cont.)(cont.)

OptimizingOptimizing– Selects best solutionSelects best solution– Requires structured problemsRequires structured problems

SuboptimizingSuboptimizing– Also called satisficingAlso called satisficing– Model identifies outcomes for manager to Model identifies outcomes for manager to

select amongselect among

12-50

SimulationSimulation

Use of a model is called simulationUse of a model is called simulation ScenarioScenario

– Conditions that influence the simulationConditions that influence the simulation– Scenario data elementsScenario data elements

Decision variablesDecision variables– Input valuesInput values

Output format variesOutput format varies

12-51

Simulation (cont.)Simulation (cont.)

Simulation TechniqueSimulation Technique– Single scenario for optimizing modelSingle scenario for optimizing model– What-if game for suboptimizing modelsWhat-if game for suboptimizing models– Change only single decision variable per runChange only single decision variable per run– Systematically discover answers to problemsSystematically discover answers to problems

Output formatOutput format– Include both decision variables and outcomes Include both decision variables and outcomes

on same reporton same report

12-52

Modeling ExampleModeling Example

Use model to simulate the effect of:Use model to simulate the effect of:– Price of productPrice of product– Amount of plant investment necessary to Amount of plant investment necessary to

provide sufficient capacityprovide sufficient capacity– Amount to invest in marketing activityAmount to invest in marketing activity– Amount to invest in R & DAmount to invest in R & D

Enter model inputEnter model input Review model outputs Review model outputs

12-53

More on ModelingMore on Modeling

AdvantagesAdvantages– Can be a learning experienceCan be a learning experience– Speed allows consideration of more optionsSpeed allows consideration of more options– Provides predictive powerProvides predictive power– Less expensive than trial-and-error methodLess expensive than trial-and-error method

DisadvantagesDisadvantages– Difficult to model a business systemDifficult to model a business system– High degree of mathematical skills requiredHigh degree of mathematical skills required

12-54

INVENTORY PLANNING MODEL OCTOBER 11

SCENARIO:

BEGINNING BALANCE: 200

DAILY SALES UNITS: 20

DECISIONS:

0RDER QUANTITY: 100

REORDER POINT: 175

LEAD TIME: 3

RESULTS:

BEGINNING ENDING ORDER RECEIPT

DAY BALANCE RECEIPTS SALES BALANCE QUANTITY DUE DATE

1 200 20 180 25 5

2 180 50 20 160

3 160 20 140 12-55

Graphic OutputGraphic Output

Use graphics toUse graphics to– present a quick summarypresent a quick summary– detect trends over timedetect trends over time– forecast activitiesforecast activities– seek relatively simple impressions from a large seek relatively simple impressions from a large

volume of data volume of data

12-56

Graphical OutputGraphical Output

Reports and model outputs can be produced Reports and model outputs can be produced in tabular or graphical formin tabular or graphical form

Spreadsheets have encouraged the use of Spreadsheets have encouraged the use of graphicsgraphics

Can improve decision making capabilityCan improve decision making capability

12-57

Which Graphs to UseWhich Graphs to Use Line or bar charts are best to summarize dataLine or bar charts are best to summarize data Grouped line or bar charts show trends over timeGrouped line or bar charts show trends over time Grouped bar charts are better for representing Grouped bar charts are better for representing

parts of a wholeparts of a whole Compare variables using horizontal, not vertical, Compare variables using horizontal, not vertical,

barsbars Use single line or bar charts to compare data Use single line or bar charts to compare data

pointspoints

12-58

0

10

20

30

40

50

60

70

80

90

1980 1981 1982 1983 1984

Apples Oranges Peanuts

0

10

20

30

40

50

60

70

80

90

100

1980 1981 1982 1983 1984

Apples

Oranges

Peanuts

Years

(c)

Years

(a)

GROUPED/MULTIPLE GROUPED/MULTIPLE LINE CHARTLINE CHART

GROUPED BAR GROUPED BAR CHARTCHART Sales RevenueSales Revenue

12-59

Segmented Line ChartSegmented Line Chart

0

50

100

150

200

1980 1981 1982 1983 1984

Years (b) Legend:

ApplesOrangesPeanuts

Dol

lars

in M

illi

ons

12-60

Segmented/Divided Bar ChartSegmented/Divided Bar Chart

0

50

100

150

200

Sales Revenue

1980 1981 1982 1983 1984

Years (d)

Dol

lars

in M

illi

ons

Legend:ApplesOrangesPeanuts

12-61

Human Factors Human Factors ConsiderationConsideration

Behavioral influences can affect employees Behavioral influences can affect employees in their computer-related tasksin their computer-related tasks

FearFear– Replacement of people by computersReplacement of people by computers– Computer systems tailored to organizations, not Computer systems tailored to organizations, not

individualsindividuals– Managers and line workers are affectedManagers and line workers are affected

12-62

Minimizing FearMinimizing Fear

Use computer as a means of achieving job Use computer as a means of achieving job enhancementenhancement

Use formal communications to keep Use formal communications to keep employees aware of firm’s intentionsemployees aware of firm’s intentions

Build a relationship of trust with employeesBuild a relationship of trust with employees Align employees’ needs with firm’s Align employees’ needs with firm’s

objectivesobjectives

12-63

Putting the MIS in Putting the MIS in PerspectivePerspective

The first attempt to make information The first attempt to make information available to available to managementmanagement

Enjoyed its greatest prominence in the Enjoyed its greatest prominence in the 1960s when it first originated1960s when it first originated

Now integrated throughout the firmNow integrated throughout the firm

12-64

MIS and Problem SolvingMIS and Problem Solving

Organizationwide information resourcesOrganizationwide information resources– Provides problems solving informationProvides problems solving information– Sets stage for accomplishment in other areas such as Sets stage for accomplishment in other areas such as

DSS, the virtual office, and knowledge-basedDSS, the virtual office, and knowledge-based Problem identification and understandingProblem identification and understanding

– Main idea is to keep information flowing to the Main idea is to keep information flowing to the managermanager

– Manager uses MIS to signal impending problemsManager uses MIS to signal impending problems Main weakness is that it is not aimed at individual Main weakness is that it is not aimed at individual

problem solversproblem solvers

12-65

SummarySummary

MIS is an organizational reason providing MIS is an organizational reason providing information to managers with similar needsinformation to managers with similar needs

Functional MISs began to emergeFunctional MISs began to emerge MIS subsystemsMIS subsystems

– Report-writing softwareReport-writing software– Mathematical modelsMathematical models

Management by exception can be Management by exception can be incorporatedincorporated

12-66

Summary [cont.]Summary [cont.]

Mathematical modelingMathematical modeling– Only an approximationOnly an approximation

Computer graphicsComputer graphics Behavioral influencesBehavioral influences Quality of ISQuality of IS

12-67

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