Different Types of Management Info Systems

Management information systems are those systems that allow managers to make decisions for the successful operation of businesses. Management information systems consist of computer resources, people, and procedures used in the modern business enterprise. The termMISstands for management information systems. MIS also refers to the organization that develops and maintains most or all of the computer systems in the enterprise so that managers can make decisions. The goal of the MIS organization is to deliver information systems to the various levels of corporate managers. MIS professionals create and support the computer system throughout the company. Trained and educated to work with corporate computer systems, these professionals are responsible in some way for nearly all of the computers, from the largest mainframe to the desktop and portable PCs. Management information systems can be used as a support to managers to provide a competitive advantage. The system must support the goals of the organization. Most organizations are structured along functional lines, andthe typical systems are identified as follows: Accounting management information systems All accounting reports are shared by all levels : of accounting managers. Financial management information systems The financial management information system : provides financial information to all financial managers within an organization including the chief financial officer. The chief financial officer analyzes historical and current financial activity, projects future financial needs, and monitors and controls theuse of funds over time using the information developed by the MIS department. Manufacturing management information systems More than any functional area, operations : have been impacted by great advances in technology. As a result, manufacturing operations have changed. For instance, inventories are provided just in time so that great amounts of money are not spent for warehousing huge inventories. In some instances, raw materials are even processed on railroad cars waiting to be sent directly to the factor . Thus there is no need for y warehousing. Marketing management information systems A marketing management information system : supports managerial activity in the area of product development, distribution, pricing decisions, promotional effectiveness, and sales forecasting. More than any other functional area, marketing systems rely on external sources of data. These sources include competition and customers, for example. Human resources management information systems Human resources management : information systems are concerned with activities related to workers, managers, and other individuals employed by the organization. Because the personnel function relates to all other areas in business, the human resources management information system plays a valuab role in le ensuring organizational success. Activities performed by the human resources management information systems include, work-force analysis and planning, hiring, training, and job assignments.

WHY ARE THERE DIFFERENT TYPES OF INFOR ATION SYSTE ?

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HOW DO YOU IDENTIFY THE DIFFERENT TYPES OF INFOR ATION SYSTE IN AN ORGANIZATION?
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HOW ANY DIFFERENT KINDS OF INFOR ATION SYSTE ARE THERE?

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For example, this is a three level pyramid model based on the type of deci sions taken at different levels in the organization.

Three level pyramid model based on the type of decisions taken at different levels in the organization Similarly, by changing our criteria to the differnt types of date / information / knowledge that are processed at different levels in the organization, we can create a five level model.

Five level pyramid model based on the processing requirement of different levels in the organization

WHAT ARE THE M ST C MM

SYSTEM I AN RGANI ATI N?

TYPES

RMATI

While there are several different versions of the pyramid model, the most common is probably a four level model based on the people who use the systems. Basing the classification on the people who use the information system means that many of the other characteristics such as the nature of the task and informational re uirements, are taken into account more or less automatically.

Four level pyramid model based on the different levels of hierarchy in t he organization

A C MPARIS N SYSTEMS

ERENT INDS

INFORMATION

Using the four level pyramid model above, we can now compare how the information systems in our model differ from each other.

1. Transaction Processing Systems

What is a Transaction Processing System? Transaction Processing System are operational-level systems at the bottom of the pyramid. They are usually operated directly by shop floor workers or front line staff, which provide the key data re uired to support the management of operations. This data is usually obtained through the automated or semi automated tracking of low-level activities and basic transactions. Functions of a TPS TPS are ultimately little more than simple data processing systems.

Functi ns f Inputs

PS in t s f P cessing Vali ati n S ting Listing erging Updating alculati n

cessing equi ements Outputs Lists etail reports Action reports Summary reports?

nsacti ns E ents

Som
o o o o o

x mpl

of PS

Payroll systems Order processing systems Reservation systems Stock control systems Systems for payments and funds transfers

The ole of TPS

o o o o

Produce information for ot er systems ross oundaries (internal and external) Used y operational personnel + supervisory levels Efficiency oriented

2.

For istorical reasons, many of t e different types of Information Systems found in commercial organi ations are referred to as " anagement Information Systems". owever, wit in our p yramid model, anagement Information Systems are management level systems t at are used y middle managers to elp ensure t e smoot running of t e organi ation in t e short to medium term. he highly structured information provided y these systems allows managers to evaluate an organi ation's performance y comparing current with previous outputs. Functions of a MIS IS are uilt on the data provided y the PS Functions of a Inputs Internal ransactions Internal Files IS in terms of data processing requirements Processing Outputs Sorting erging Summary reports Action reports

What i a Management Information System

m i

Structured data Some examples of MIS

o o o o o

Summari ing

etailed reports

Sales management systems Inventory control systems Budgeting systems anagement Reporting Systems ( RS) Personnel ( R ) systems

The role of MIS

o o o o o o

Based on internal information flows Support relatively structured decisions Inflexi le and have little analytical capacity Used y lower and middle managerial levels eals with the past and present rather than the future Efficiency oriented?

3. D

i i

Supp

A ecision Support System can e seen as a knowledge ased system, used y senior managers, which facilitates the cre ation of knowledge and allow its integration into the organi ation. hese systems are often used to analyze existing structured information and allow managers to project the potential effects of their decisions into the future. Such systems are usually int eractive and are used to solve ill structured problems. hey offer access to databases, analytical tools, allow "what if" simulations, and may support the exchange of information within the organization. Functions of a DSS SS manipulate and build upon the information from a generate insights and new information. IS and/or PS to

Inputs

Functions of a SS in terms of data processing requirements Processing Outputs odelling Simulation Analysis Summarizing Summary reports Forecasts Graphs / Plots

Internal ransactions Internal Files External Information? Some examples of DSS

What is a Decision Support System

o o o o o

Group ecision Support Systems (G SS) omputer Supported o -operative work ( S W) Logistics systems Financial Planning systems Spreadsheet odels?

The role of DSS

o o o o o

Support ill- structured or semi-structured decisions ave analytical and/or modelling capacity Used by more senior managerial levels Are concerned with predicting the future Are effectiveness oriented?

4. Ex

u iv I

m i

What is an EIS? Executive Information Systems are strategic-level information systems that are found at the top of the Pyramid. hey help executives and senior managers analyze the environment in which the organization operates, to identify long-term trends, and to plan appropriate courses of action. he information in such systems is often weakly structured and comes from both internal and external sources. Executive Information System are designed to be operated directly by executives without the need for intermediaries and easily tailored to the preferences of the individual using them. Functions of an EIS EIS organizes and presents data and information from both external data sources and internal IS or PS in order to support and extend the inherent capabilities of senior executives. Functions of a EIS in terms of data processing requirements Processing Outputs Summarizing Simulation " rilling own" Summary reports Forecasts Graphs / Plots

Inputs

External ata Internal Files Pre-defined models Some examples of EIS

Executive Information Systems tend to be highly individualized and are often custom made for a particular client group; however, a number of off -the-shelf EIS packages do exist and many enterprise level systems offer a customizable EIS module. The role of EIS

o o o o o o o

Are concerned with ease of use Are concerned with predicting the future Are effectiveness oriented Are highly flexible Support unstructured decisions Use internal and external data sources Used only at the most senior management levels

types of information system

For most businesses, there are a variety of requirements for information. Senior managers need information to help with their business planning. Middle management need more detailed information to help them monitor and control business activities. Employees with operational roles need information to help them carry out their duties. As a result, businesses tend to have several "information systems" operating at the same time. This revision note highlights the main categories of information system and provides some examples to help you distinguish between them.

The main kinds of information systems in business are described briefly below: Information Description System Executive An Executive Support System ("ESS") is designed to help senior management Support Systems make strategic decisions. It gathers, analyses and summarises the key internal and external information used in the business. A good way to think about an ESS is to imagine the senior management team in an aircraft cockpit - with the instrument panel showing them the status of all the key business activities. ESS typically involve lots of data analysis and modelling tools such as "what-if" analysis to help strategic decision-making. Management Information Systems A management information system ("MIS") is mainly concerned with internal sources of information. MIS usually take data from the transaction processing systems (see below) and summarise it into a series of management reports.

MIS reports tend to be used by middle management and operational supervisors. Decision-Support Decision-support systems ("DSS") are specifically designed to help management Systems make decisions in situations where there is uncertainty about the possible outcomes of those decisions. DSS comprise tools and techniques to help gather relevant information and analyse the options and alternatives. DSS often involves use of complex spreadsheet and databases to create "what models. -if"

Knowledge Management Systems

Knowledge Management Systems ("KMS") exist to help businesses create and share information. These are typically used in a business where employees create new knowledge and expertise - which can then be shared by other people in the organisation to create further commercial opportunities. Good examples include firms of lawyers, accountants and management consultants. KMS are built around systems which allow efficient categorisation and distribution of knowledge. For example, the knowledge itself might be contained in word processing documents, spreadsheets, PowerPoint presentations. internet pages or whatever. To share the knowledge, a KMS would use group collaboration systems such as an intranet.

Transaction Processing Systems

As the name implies, Transaction Processing Systems ("TPS") are designed to process routine transactions efficiently and accurately. A business will have several (sometimes many) TPS; for example: - Billing systems to send invoices to customers - Systems to calculate the weekly and monthly payroll and tax payments - Production and purchasing systems to calculate raw material requirements - Stock control systems to process all movements into, within and out of the business

Office Automation Systems

Office Automation Systems are systems that try to improve the productivity of employees who need to process data and information. Perhaps the best example is the wide range of software systems that exist to improve the productivity of employees working in an office (e.g. Microsoft Office XP) or systems that allow employees to work from home or whilst on the move.