Chapter 9 Management Information Systems

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Management Information Systems (MIS)
 Management information system (MIS)
• An MIS provides managers with information and • •
support for effective decision making, and provides feedback on daily operations Output, or reports, are usually generated through accumulation of transaction processing data Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization
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Sources of Management Information

Schematic
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Employees Corporate databases of internal data Databases of external data Corporate intranet Decision support systems Executive support systems

Business transactions

Transaction processing systems

Databases of valid transactions

Management information systems

Application databases

Drill-down reports Exception reports Demand reports

Expert systems

Operational databases

Key-indicator reports

Input and error list

Scheduled reports

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Outputs of a Management Information System
 Scheduled reports
• Produced periodically, or on a schedule (daily, weekly,
monthly)

 Key-indicator report
• Summarizes the previous day’s critical activities • Typically available at the beginning of each day

 Demand report
• Gives certain information at a manager’s request

 Exception report
• Automatically produced when a situation is unusual or
requires management action
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Scheduled Report Example
Daily Sales Detail Report
Prepared: 08/10/xx Order # P12453 P12453 P12453 P12455 P12456 Customer ID C89321 C89321 C03214 C52313 C34123 Sales Rep ID CAR CAR GWA SAK JMW Ship Date 08/12/96 08/12/96 08/13/96 08/12/96 08J/13/96 Quantity 144 288 12 24 144 Item # P1234 P3214 P4902 P4012 P3214 Amount $3,214 $5,660 $1,224 $2,448 $720

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Key Indicator Report Example
Daily Sales Key Indicator Report This Month Total Orders Month to Date $1,808 Last Month $1,694 Last Year $1,014

Forecasted Sales for the Month

$2,406

$2,224

$2,608

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Demand Report Example
Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx Sales Rep ID CAR Amount $42,345

GWA
SAK JWN

$38,950
$22,100 $12,350

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Exception Report Example
Daily Sales Exception Report – ORDERS OVER $10,000 Prepared: 08/10/xx
Order # P12453 P12453 P12453 … … Customer ID C89321 C89321 C03214 … … Sales Rep ID CAR CAR GWA … … Ship Date 08/12/96 08/12/96 08/13/96 … … Quantity 144 288 12 … … Item # P1234 P3214 P4902 … … Amount $13,214 $15,660 $11,224 … …

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Outputs of a Management Information System
Earnings by Quarter (Millions) Actual Forecast $11.8 $10.7 $14.5 $13.3 Variance 6.8% 0.9% -1.4% -3.0%

Drill Down Reports Provide detailed data about a situation.

2ND Qtr 1999 1st Qtr 1999 4th Qtr 1998 3rd Qtr 1998

$12.6 $10.8 $14.3 $12.8

Etc. See Figure 9.2

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Characteristics of a Management Information System
 Provides reports with fixed and standard formats  Hard-copy and soft-copy reports  Uses internal data stored in the computer system  End users can develop custom reports  Requires formal requests from users
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Management Information Systems for Competitive Advantage
 Provides support to managers as they work to achieve corporate goals  Enables managers to compare results to established company goals and identify problem areas and opportunities for improvement

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MIS and Web Technology
 Data may be made available from management information systems on a company’s intranet  Employees can use browsers and their PC to gain access to the data

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Functional Aspects
 MIS is an integrated collection of functional information systems, each supporting particular functional areas.

Schematic
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Information and Organizations

Internet

An Organization’s MIS Financial MIS

Business transactions

Transaction processing systems

Databases of valid transactions

Accounting MIS

Drill down reports
Exception reports Demand reports

Marketing MIS

Key-indicator reports Scheduled reports

Business transactions

Databases of external data

Human Resources MIS Etc.

Etc.

Extranet

Figure 9.3
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Financial MIS
 Provides financial information to all financial managers within an organization.

Schematic
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Information and Organizations

Databases of internal data

Databases of external data

Financial DSS

Business transactions Transaction processing systems
Databases of valid transactions for each TPS

Financial MIS

Financial applications databases

Business transactions Operational databases

Financial statements Uses and management of funds Financial statistics for control

Financial ES

Internet or Extranet

Business transactions

Customers, Suppliers

Figure 9.3

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Inputs to the Financial Information System
 Strategic plan or corporate policies  Contains major financial objectives and often projects
financial needs.

 Transaction processing system (TPS)  Important financial information collected from almost
every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. External sources Annual reports and financial statements of competitors and general news items.
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 
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Financial MIS Subsystems and Outputs
 Financial subsystems  Profit/loss and cost systems  Auditing  Internal auditing  External auditing  Uses and management of funds

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Manufacturing MIS

Schematic
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Information and Organizations

Databases of internal data

Databases of external data

Manufacturing DSS

Business transactions Transaction processing systems
Databases of valid transactions for each TPS

Manufacturing MIS

Manufacturing applications databases

Business transactions Operational databases

Quality control reports Process control reports

Internet or Extranet

JIT reports MRP reports Production schedule CAD output

Manufacturing ES

Business transactions

Customers, Suppliers

Figure 9.6

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Inputs to the Manufacturing MIS
 Strategic plan or corporate policies.  The TPS:  Order processing  Inventory data  Receiving and inspecting data  Personnel data  Production process  External sources
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Manufacturing MIS Subsystems and Outputs
        Design and engineering Master production scheduling Inventory control Manufacturing resource planning Just-in-time inventory and manufacturing Process control Computer-integrated manufacturing (CIM) Quality control and testing
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Marketing MIS
 Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness

Schematic
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Information and Organizations

Databases of internal data

Databases of external data

Manufacturing DSS

Business transactions

Transaction processing systems

Databases of valid transactions for each TPS

Marketing MIS

Marketing applications databases

Sales by customer Sales by salesperson

Operational databases

Sales by product Pricing report Total service calls Customer satisfaction

Manufacturing ES

Figure 9.9
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Inputs to Marketing MIS
 Strategic plan and corporate policies  The TPS  External sources:  The competition  The market

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Marketing MIS Subsystems and Outputs
 Marketing research  Product development  Promotion and advertising  Product pricing

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Human Resource MIS
 Concerned with all of the activities related to employees and potential employees of the organization

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Information and Organizations

Databases of internal data

Databases of external data

Manufacturing DSS

Business transactions

Transaction processing systems

Databases of valid transactions for each TPS

Human Resource MIS

Human resource applications databases

Benefit reports Salary surveys

Operational databases

Scheduling reports Training test scores Job applicant profiles Needs and planning reports

Manufacturing ES

Figure 9.12
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Inputs to the Human Resource MIS
 Strategic plan or corporate policies  The TPS:  Payroll data  Order processing data  Personnel data  External sources

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Human Resource MIS Subsystems and Outputs
 Human resource planning  Personnel selection and recruiting  Training and skills inventory  Scheduling and job placement  Wage and salary administration

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Other MISs
 Accounting MISs  Provides aggregated information on accounts
payable, accounts receivable, payroll, and other applications.

 Geographic information systems (GISs)  Enables managers to pair pre-drawn maps or
map outlines with tabular data to describe aspects of a particular geographic region.
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Information and Organizations

End of Chapter 9
Chapter 10
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Information and Organizations

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