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MANAGEMENT INFORMATION

SYSTEMS (MIS)

Management information system (MIS)

An MIS provides managers with information and support foreffective 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

Information systems are human artifacts needed by

organizations. The needs and requirements must be

identified and systems must be planned and built. They

are the product of human imagination and human

development processes.

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INFORMATION

TECHNOLOGY

Hardware

Software

Databases

Networks

Other related

components

are used to buildINFORMATION

SYSTEMS

Payroll

System

InventorySystem

Marketing

System

Customer

Service

System

IS VS IT

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EXPANDING ROLES OF IS1. Data Processing: 1950s-1960s

2. Management Reporting: 1960s-1970s

3. Decision support: 1970s-1980s4. Strategic and End User Support: 1980s-1990s

5. Global Internetworking: 1990s-2000s

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1. Operations support systems process data generated by business operations

Major categories are:

i) Transaction processing systems

ii) Process control systems

iii) Office automation systems

2. Management Support Systems provide information and support needed for

effective decision making by managers

Major categories arei) Management Information System

ii) Decision Support Systems

iii) Executive Information System

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2. Management support systems provide information and support needed foreffective decision making by managers

Major categories are:

i) Management information systems

Routine information for routine decisions

Operational efficiency

Use transaction data as main input

Databases integrate MIS in different functional areas

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ii) Decision Support System

Interactive support for non-routine decisions or problems

End-users are more involved in creating a DSS than an MIS

iii) Executive information systems

provide critical information tailored to the information needs of executives

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Other categories

a) Expert systems

b) End user computing systems

c) Business information systems

d) Strategic information systems

a) Expert Systems are knowledge-based systems that provides expert advice and

act as expert consultants to the users

b) End user computing systems support the direct, hands on use of computers

by end users for operational and managerial applications

c) Business information systems support the operational and managerial

applications of the basic business functions of a firm

d) Strategic information systems provide a firm with strategic products, services,and capabilities for competitive advantage

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ENTERPRISE RESOURCE PLANNING

(ERP)

Integrated programs that can manage a companys entireset of business operations

Often coordinate planning, inventory control, production

and ordering

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INFORMATION SYSTEMS DEVELOPMENT

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IS AS DISCIPLINE

IS is an interdisciplinary field influenced by Computer Science, Political

Science, Psychology, Operations Research, Linguistics, Sociology, and

Organizational Theory.

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CHALLENGES

1. Workforce downsizing

2. Information overload

3. Employee mistrust

4. Difficult to built

5. Security breaches

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OPPORTUNITIES

1. Enhanced global competitiveness

2. Capture market opportunities

3. Support corporate strategy

4. Enhance worker productivity5. Improve quality of goods and services

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DSS

DECISION SUPPORT SYSTEMS

Supplements an MISPulls information from variety of databases

Interactive

Nonroutine decision-makingModel mathematical representation of real-life

system

Simulation using a computer model to reach adecision about a real-life situation

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MIS VS. DSS

MIS

Planned reporting

Standard, scheduled, structured, and routine

Constrained by the organizational system

DSS

Decision making

Unstructured and by request

Immediate and friendly

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EIS

EXECUTIVE INFORMATION

SYSTEMS

DSS for top-level managers

How decisions effect entire organization

Overall vision; company goals

Long-term objectives

Organizational structure

Staffing and labor relations

Crisis management Control of overall operations

Access to information from external sources

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Corporatedatabases

of

internal

data

Databases

of

external

data

Databases

of

valid

transactions

Operationaldatabases

Transaction

processing

systems

Management

information

systems

Decision

support

systems

Executive

support

systems

Expert

systems

Business

transactions

Input and

error list

Drill-down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled

reports

Employees

Corporate

intranet

Application

databases

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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 days critical activities

Typically available at the beginning of each dayDemand report

Gives certain information at a managers request

Exception reportAutomatically produced when a situation is unusual or

requires management action

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KEY INDICATOR REPORT EXAMPLE

Daily Sales Key Indicator Report

ThisMonth

LastMonth

LastYear

Total Orders Month to Date $1,808 $1,694 $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 Amount

CAR $42,345

GWA $38,950

SAK $22,100

JWN $12,350

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EXCEPTION REPORT EXAMPLE

Daily Sales Exception Report ORDERS OVER $10,000

Prepared: 08/10/xx

Order#

CustomerID

SalesRep ID

ShipDate Quantity Item # Amount

P12453 C89321 CAR 08/12/96 144 P1234 $13,214

P12453 C89321 CAR 08/12/96 288 P3214 $15,660

P12453 C03214 GWA 08/13/96 12 P4902 $11,224

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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 SYSTEMSFOR COMPETITIVE ADVANTAGE

Provides support to managers as they work to achievecorporate 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 companys intranet Employees can use browsers and their PC to gain

access to the data

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Organization as a System

A system is an assembly of elements arranged in a local

order to achieve certain objectives. The individuals in the organization are selected in terms

of number, quality and ability and are placed in

hierarchical order to plan and execute business activities.

Leavitt identified task, technology and structure as the

key elements that are dependent on each other.

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Modified model of organization system

Tasks

People Structure

Technology Culture

Goal

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Types of Information Systems

Computer-based information systems (CBIS) use

computer technology to perform some or all of their

tasks and are composed of:

Hardware

Software

A Database A Network

Procedures

People

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Information Systems Inside Your Organization

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Information Technology Outside Your Organization

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Breadth of Support of Information Systems

Functional area information systems

Enterprise resource planning systems

Transaction processing systems

Inter-organizational information systems

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Why are Information Systems Important to

Organizations & Society

IT will reduce the number of middle managers.

IT will change the managers job.

IT impacts employees at work.

IT provides quality-of-life improvements.

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Enabling People with Disabilities to Work with

Computers

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The Robot Revolution

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The Robot Revolution

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The Robot Revolution(continued)

Hondas ASIMO robot

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Improvements in Health Care

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Improvements in Health Care(continued)

The Pill Cam: Wireless endoscopy

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The daVinci Surgical Robot

The robot

The surgeons console

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Medical Simulation

Two physiciansperform aprocedure on a

simulated human(mannequin)

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Traditional Major IS Functions

Managing systems development and systems project

management

Managing computer operations

Staffing, training, developing IS skills

Providing technical services

Infrastructure planning, development, control

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New (Consultative) IS Functions

Initiating and designing strategic information systems

Incorporating the Internet and e-commerce into thebusiness

Managing system integration

Educating non-IS managers about IT

Educating IS staff about the business

Supporting end-user computing

Partnering with executives

Managing outsourcing

Innovate

Ally with vendors and IS departments in other

organizations

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