Management Information Systems

Management Information Systems (MIS)

 Information system at the management level of an
organization that serves the functions of planning,
controlling, and decision making by providing routine
summary and exception reports.

• TYPE: Management-level
• INPUTS: high volume data
• PROCESSING: simple models
• OUTPUTS: summary reports
• USERS: middle managers
• DECISION-MAKING: structured to semi-structured
 EXAMPLE: annual budgeting
MIS
 Management information systems
 Serve middle management
 Provide reports on firm’s current performance, based on
data from TPS
 Provide answers to routine questions with predefined
procedure for answering them
 Typically have little analytic capability
How Management Information Systems Obtain
Their Data from the Organization’s TPS

In the system illustrated by this diagram, three TPS supply summarized

transaction data to the MIS reporting system at the end of the time
period. Managers gain access to the organizational data through the MIS,
which provides them with the appropriate reports.
Sample MIS Report
Characteristics of Management
information Systems
1. MIS support structured decisions at the operational and
management control levels. However, they are also
useful for planning purposes of senior management staff.
2. MIS are generally reporting and control oriented. They
are designed to report on existing operations and
therefore to help provide day-to-day control of operations.
3. MIS rely an existing corporate data-and data flows.
4. MIS have little analytical capability.
5. MIS generally aid in decision making using past and
present data.
6. MIS are relatively inflexible.
7. MIS have an internal rather than an external orientation.
 Knowledge Work Systems (KWS)

Information system that aids knowledge workers in

the creation and integration of new knowledge in
the organization.

•TYPE: Knowledge-level
• INPUTS: design specifications
• PROCESSING: modelling
• OUTPUTS: designs, graphics
• USERS: technical staff; professionals

EXAMPLE: Engineering workstations

7
 Decision Support Systems (DSS)

Information system at the management level of an

organization that combines data and sophisticated
analytical models or data analysis tools to support
semi-structured and unstructured decision making.

•TYPE: Management-level
• INPUTS: low volume data
• PROCESSING: simulations, analysis
• OUTPUTS: decision analysis
• USERS: professionals, staff managers
• DECISION-MAKING: semi-structured

EXAMPLE:
8
sales region analysis
 Executive Support Systems (ESS)

Information system at the strategic level of an

organization that address unstructured decision
making through advanced graphics and
communications.
TYPE: Strategic level
• INPUTS: aggregate data; internal and external
• PROCESSING: interactive
• OUTPUTS: projections
• USERS: senior managers
• DECISION-MAKING: highly unstructured

EXAMPLE:
10
5 year operating plan
 Major Types of Information Systems
TYPES OF SYSTEM S

Strate gic Le ve l Sys te ms

ESS 5-ye ar 5-ye ar 5-ye ar Profit M anpowe r
ope rating budge t s ale s tre nd planning planning
plan fore cas ting fore cas ting

M anage me nt-Le ve l Sys te ms

Sale s Inve ntory Annual Capital Re location
M IS
manage me nt Control budge ting Inve s tme nt analys is analys is
Pricing/profitability Contract cos t
DSS Sale s re gion Production Cos t
analys is analys is
analys is Sche duling analys is

Knowle dge -Le ve l Sys te ms

KWS Engine e ring Graphics M anage rial
work s tations work s tations work s tations
OAS Word Docume nt Ele ctronic
proce s s ing Imaging Cale ndars

Ope rational Le ve l Sys te ms

M achine control Se curitie s Payroll Compe ns ation
TPS trading
Orde r Track ing Plant s che duling Accounts payable Training & de ve lopme nt
Orde r proce s s ing M ate rial move me nt Cas h Accounts re ce ivable Employe e re cord k e e ping
control manage me nt

12 Sale s and M anufacturing Finance Accounting Human

mark e ting Re s ource s