Lesson 2
MANAGEMENT INFORMATION
SYSTEMS
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
Used for generating reports including inventory status
reports, financial statements, performance reports etc.
Reports are essential for analyzing different aspects of
business.
Help to answer 'what-if' questions like what would be the
effect on cash flows of a company if the credit term is
changed for its customers etc.
Each MIS is an integrated collection of subsystems, which
are typically organized along functional lines within an
organization
CHARACTERISTICS OF MIS
Integrated user machine system
Supports operations, management, analysis & decision
making functions
Utilizes computer hardware, software, manual
procedures, models for analyzing, planning, control &
decision making and a database
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
SOURCES OF MANAGEMENT
INFORMATION
Schematic
Employees
Corporate
Databases Corporate
databases
of intranet
of
external
internal
data
data Decision
support
systems
Transaction Databases Management Executive
Business processing of information Application support
transactions systems valid systems databases systems
transactions
Drill-down reports Expert
Exception reports systems
Demand reports
Operational Key-indicator reports
databases
Input and Scheduled
error list reports
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
SCHEDULED REPORT EXAMPLE
Daily Sales Detail Report
Prepared: 08/10/xx
Order Customer Sales Ship
# ID Rep ID Date Quantity Item # Amount
P12453 C89321 CAR 08/12/96 144 P1234 $3,214
P12453 C89321 CAR 08/12/96 288 P3214 $5,660
P12453 C03214 GWA 08/13/96 12 P4902 $1,224
P12455 C52313 SAK 08/12/96 24 P4012 $2,448
P12456 C34123 JMW 08J/13/96 144 P3214 $720
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
FUNCTIONAL ASPECTS
MIS is an integrated collection of functional information
systems, each supporting particular functional areas.
Schematic
Internet
Internet An Organization’s
MIS
Financial
MIS
Business
transactions
Drill down reports
Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports
Business
transactions Databases Human
of
Resources
external
data MIS
Extranet
Extranet
Production &
operation
MIS
ACCOUNTING MIS
The system shares all accounting reports at different
levels of management
FINANCIAL MIS
Provides financial information to all financial managers
within an organization.
Schematic
Databases of Financial
Databases of
internal data external data DSS
Business
transactions
Transaction Databases
processing of valid
Financial
systems transactions MIS Financial
for each applications
TPS databases
Business
transactions
Uses and management
of funds Financial
Operational ES
Internet databases Financial statistics
Internetoror for control
Extranet
Extranet
Business Customers,
transactions Suppliers
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.
MANUFACTURING MIS
Schematic
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
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-assisted manufacturing (CAM)
Computer-integrated manufacturing (CIM)
Flexible manufacturing system
Quality control and testing
HUMAN RESOURCE MIS
Concerned with all of the activities related to employees
and potential employees of the organization
Databases of Manufacturing
Databases of
internal data external data DSS
Transaction Databases Human
Business processing of valid Resource Human
transactions systems transactions resource
for each MIS applications
TPS databases
Benefit reports
Salary surveys Manufacturing
Operational Scheduling reports ES
databases Training test scores
Job applicant profiles
Needs and planning
reports
INPUTS TO THE HUMAN RESOURCE MIS
Strategic plan or corporate policies
The TPS:
Payrolldata
Order processing data
Personnel data
External sources
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
MARKETING INFORMATION SYSTEM
Continuing and interacting structure of people,
equipment and procedures
Used to gather, sort, analyse, evaluate, and distribute
timely and accurate information
For marketing decision makers to improve their
marketing planning, implementation, and control
INPUTS TO MARKETING MIS
Strategic plan and corporate policies
The TPS
External sources:
The competition
The market
MARKETING MIS SUBSYSTEMS AND
OUTPUTS
Marketing research
Web based market research
Product development
Promotion and advertising
Product pricing
USES OF MIS – FEW EXAMPLES
Education Government
Consumers Strategy
Tactics Businesses
Culture
Privacy Operations Employees
Company
E-GOVERNMENT
Government Representatives and Agencies
Providing Internet access to government data.
Democracy and participation
Getting data and information
Providing feedback and participating
Voting—will we ever see electronic or online voting?
Information warfare
Will the Internet consolidate the world?
