IE 368 Manufacturing Information System

Overview
Theodorus B. Hanandoko

LEARNING OUTCOMES
1.1 Compare management information systems
(MIS) and information technology (IT)
1.2 Describe the relationships among people,
information technology, and information
1.3 Describe why people at different levels of
an organization have different information
needs
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What is information?

Information has two dimensions:

physical or digital representation
and human cognition.

As a commodity, information refers

to facts, statistics, or other data
that are valuable or useful to a
person for accomplishing a task.

What is IT ?

Information technology (IT)

any computer-based tool that people use

to work with information and support the
information and information-processing
needs of an organization

Information technology is an important

enabler of business success and innovation

Achieving Business Success

Through Information Technology

People use
information
technology
to work with
information

What is MIS?

Management information systems (MIS)

the function that plans for, develops,

implements, and maintains IT hardware,
software, and the portfolio of applications that
people use to support the goals of an
organization

MIS is a business function

similar to Accounting, Finance, Operations, and

Human Resources
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A Federation of Information Systems

Components of
Information Systems

Purpose / Business Function

People
Information Technology
Procedures
Data

Benefits of Information
Systems

High-quality information
Access to information
Utilization of information
Perform organizational work efficiently
Better communication and decision
making
Better products and services for
customers
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Information System
Applications
A transaction processing system (TPS) is an information
system that captures and processes data about business
transactions.
A management information system (MIS) is an
information system that provides for managementoriented reporting based on transaction processing and
operations of the organization.
A decision support system (DSS) is an information
system that either helps to identify decision making
opportunities or provides information to help make
decisions.
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Information System
Applications (contd)
An Executive Information System (EIS) is an information system
designed for top-level managers that integrates data from all over
the organization into at-a-glance graphical indicators and
controls.
An expert system is an information system that captures the
expertise of workers and then simulates that expertise to the
benefit of non-experts.
A communications and collaboration system is an information
system that enables more effective communications between
workers, partners, customers, and suppliers to enhance their
ability to collaborate.
An office automation system is an information system that
supports the wide range of business office activities that provide
for improved work flow between workers.

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Information System Applications (contd)

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Organizations must manage

information properly
1.
2.
3.

4.
5.

Determine what information it requires

Acquire that information
Organize the information in a meaningful
fashion
Assure the information's quality
Provide tools (hardware and software) so
employees throughout the organization
can access and use the information they
require
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At the heart of all management

information systems is a database
and DBMS

Database

maintains information about various types of

objects (inventory), events (transactions),
people (employees), and places (warehouses)

Database management system

(DBMS)

software through which users and application

programs interact with a database
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Two primary ways that users

obtain information from a
database
1.

Direct user interaction

2.

Indirect user interaction

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The role of IT in strategic

decision making
Data marts

Data-mining tools

Data mining involves sorting through large amounts of data

and picking out relevant information

Digital dashboards

data marts contain a snapshot of operational data that helps

business people to strategize based on analyses of past trends
and experiences

also known as an enterprise dashboard or executive

dashboard, is a business management tool used to visually
ascertain the status (or "health") of a business enterprise via
key business indicators. Digital dashboards use visual, at-aglance displays of data pulled from disparate business systems
to provide warnings, action notices, next steps, and summaries
of business conditions

Supply chain management (SCM)

Customer relationship management (CRM)
Enterprise resource planning (ERP)

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Enhancing Business
Decisions

Business intelligence, gained through OLTP and

OLAP, enables organization to make strategic
business decisions

Business intelligence
information that people use to support their
decision-making efforts
Online transaction processing (OLTP)

the capturing of transaction and event information

Online analytical processing (OLAP)
the manipulation of information to create business
intelligence in support of strategic decision making

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Enhancing Business
Decisions

Organizational employees have unique

information processing and analyzing
needs

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Enhancing Business
Decisions

Many organizations use data warehouses and datamining tools to support strategic decision making

Data warehouse a logical collection of information

gathered from many different operational databases that
supports business analysis activities and decision-making
tasks

Data-mining tools use a variety of techniques to find

patterns and relationships in large volumes of information
and infer rules from them that predict future behavior and
guide decision making

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Creating Collaborative
Partnerships In Business

Organizations create and use teams,

partnerships, and alliances to:
Undertake new initiatives
Address both minor and major problems
Capitalize on significant opportunities

Organizations create teams, partnerships,

and alliances both internally with employees
and externally with other organizations
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Creating Collaborative
Partnerships In Business

Collaboration system supports the work

of teams by facilitating the sharing and flow
of information

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Creating Collaborative
Partnerships In Business

Organizational collaboration systems

include:

Groupware supports team interaction and dynamics

including calendaring, scheduling, and videoconferencing

Document management systems (DMS) supports the

electronic capturing, storage, distribution, archival, and
accessing of documents

Knowledge management systems (KMS) supports

the capturing and use of organizational know how

Project management software supports long-term and

day-to-day management and execution of a project
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Creating Collaborative
Partnerships In Business

Organizations form alliances and

partnerships with other organizations based
on their core competency

Core competency is an organizations key

strength, a business function that it does better
than any of its competitors

Core competency strategy an organization

chooses to focus specifically on its core
competency and forms partnerships with other
organizations to handle nonstrategic business
processes
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Creating Collaborative
Partnerships In Business

Information technology can make a business

partnership easier to establish and manage

Information partnership occurs when two or

more organizations cooperate by integrating their IT
systems, thereby providing customers with the best
of what each can offer

The Internet has dramatically increased the

ease and availability for IT-enabled
organizational alliances and partnerships
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Transforming Organizations

Some business environment observers have an ominous vision

of the future - digital Darwinism organizations which
cannot adapt to new demands are doomed to extinction

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