Management Information Systems

Adapted from: Chapter 10 Gordon, J.R. & Gordon S.R.(1996). Information Systems: A Management Approach. Orlando: Harcourt Brace

What is a management information system?

Managers at all levels can
Collect Analyze Summarize

different types of data Helps top level managers to:

Formulate strategy and policy

How does an MIS help managers who function in a global environment? The global economy is complex and unpredictable MIS helps managers access, analyze and report on current and comprehensive information

What is a management reporting system (MRS)?

Helps managers monitor the operations and resources of an organization and the environment in which the organization operates Reports often occur on a scheduled basis
Daily Weekly Monthly Quarterly Biannually Yearly

How do detail, summary, and exception reports differ?

Detail Reports
Provide information useful in overseeing dayto-day operations of a department or working group Provide data on individual transactions
Payments by customers Parts manufactured Debits and credits to the general ledger

How do detail, summary, and exception reports differ?

Summary (or Statisical) Reports
Show:
Totals Averages Maximums Minimums

Summarizes a large amount of transaction data over time, personnel, products or some other quantity

How do detail, summary, and exception reports differ?

Exception Reports
Alert managers to potential problems Show data that fall outside of an expected range Show data at transaction or summary level

How do periodic, event-initiated, and on-demand reports differ?

Periodic Reports
Weekly, monthly, quarterly etc. summaries (not too much detail)

Event-initiated Reports
Generated on the occurrence of a specific event, e.g. a milestone or deadline reached

On-demand Reports
A request for specific information

What is the relationship between a MRS and a transaction processing system (TPS)?
A MRS is the reporting component of a TPS

What is a decision support system (DSS)?

Can help a manager make complex decisions for the future base upon current circumstances

What are the benefits of a DSS?

Improved decision making through better understanding of the business An increased number of decision alternatives examined The ability to implement ad hoc (on-demand) analysis Improved communications More effective teamwork Better control Time and cost savings

What are the components of a DSS?

Database
Access to all relevant data necessary to make a decision

Knowledge base
Information about highly complex relationships among data Heuristics rules of thumb
Acceptable solutions and how they are defined

What are the components of a DSS?

Model base
Selection of spreadsheets, business simulation packages, forecasting tools, and statistical packages

User interface
Allow users to control the selection of data and models used in their analysis

What is Groupware?
Supports the group activities of managers and other workers
Exchanging information Coordinating activities Managing workflow

What are the major elements of groupware?

Message systems Multiuser editors Computer conferencing The Internet Intelligent agents Coordinating systems

What three ways can managers hold conferences?

Real-time conferencing via computer networks Teleconferencing (audio- and videoconferencing) via phone and video broadcast Desktop conferencing
Computer-based audio-, video-, and realtime conferencing
Works best with groups of 4 or less

How does an executive information systems (EIS) differ from a DSS? DSS
Deal with specific problems Focus on modelling

EIS
Use enterprise-wide and external data Focus on:
assembling and displaying data recognizing trends determining underlying causes communicating knowledge

What are the typical features of an EIS?

User interface Communication with employees Scanned news updates Query features Functional support

Strategic Information Systems

Adapted from: Chapter 11 Gordon, J.R. & Gordon S.R.(1996). Information Systems: A Management Approach. Orlando: Harcourt Brace

What is a strategic information system?

Helps organizations implement their longterm direction and the activities used to achieve their goals

How can strategic information systems give a company a sustainable competitive advantage? React to market conditions Improve customer service Control costs Improve quality Expand globally