Information Systems for

Management
Management Information Systems
Decision Support Systems
Online Analytical Processing
Executive Information systems
Information Systems for Strategic
Advantage

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

Sources of Management Information

Schematic

Employees
Corporate
databases
of
internal
data

Business
transactions

Transaction
processing
systems

Operational
databases

Databases
of
valid
transactions

Databases
of
external
data

Management
information
systems

Corporate
intranet
Decision
support
systems

Application
databases

Drill-down reports
Exception reports
Demand reports
Key-indicator reports

Input and
error list

Scheduled
reports

Executive
support
systems

Expert
systems

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

Scheduled Report Example

Daily Sales Detail Report
Prepared: 08/10/xx
Order
#

Customer
ID

Sales
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

Decision Support Systems

(DSS)
A decision support system is an information
system that assists the user in decision-making.

Knowledge
Base

Database

GUI

User

Model Base

Developing Interactive Systems

Practical decision making requires developing
man-machine interactive systems.

Input
Data

The Model

User Interface,
Re-optimization

Output,
Reports

DSS Development Process

Data Storage Mechanism
MS Excel, Lotus 123
MS Access, Oracle, MS SQL Server, Dbase

Data Manipulation
Visual Basic for Applications (VBA)
Visual Basic .NET (VB .NET)
Java, C/C++

Data Presentation
VBA, VB .NET, MS Access, ASP .NET
Java Applets

TYPES OF DSS
Status Enquiry system
Ex: Railway Reservation System
Data/Information analysis system
Accounting system

Data/Information analysis system

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

Accounting system
Earnings by Quarter (Millions)
Actual

Forecast

Variance

2ND Qtr 1999

$12.6

$11.8

6.8%

1st Qtr 1999

$10.8

$10.7

0.9%

4th Qtr 1998

$14.3

$14.5

-1.4%

3rd Qtr 1998

$12.8

$13.3

-3.0%

USAGE OF DSS
What if Analysis
Goal Seek Analysis
Optimization Analysis

GEOGRAPHIC INFORMATION
SYSTEM

ONLINE ANALYTICAL
PROCESSING
DSS (OLAP)
Drilling breaking up the data into smaller
parts
Slicing & Dicing broken data are used for
any other alternative suitable decisions
Changing Displays- display can be changed
according to the users wish ( charts , tables,
etc)

Components of an OLAP

Multidimensional Data Model

EXECUTIVE INFORMATION
SYSTEM

Definition:
EIS is an interactive computer-based system that allows
executive officers to access data and information to identify
problems, explore solutions, and guide the strategic planning
process.

Purpose:
Executive information system must deliver data to the desktop
of the executive officers and transform it into information that
conveys useful knowledge to the executive. This information is used
to investigate solutions for pressing managerial problems and make
planning decisions for the institution.

Data Requirements for EIS

Highly summarized data - most executives
looking for summary data upon which to make
decisions, not for small details.
Drill down. Inevitably, the executive will want to drill
down or view detailed data that comprise summarized
data.
Integration of data from different data bases.
Occasionally, an executive will need data from on-line
data bases, such as current status of budget accounts.
More frequently, the executive will require access to
official record data that is maintained in a static,
summary data base.

Data Requirements for EIS (2)

Executives are interested in seeing trends
rather than one year in isolation. This
reinforces the need for an information support
data base of official record data.
Information is always more meaningful if
viewed in comparison to a peer group of
institutions. This means the EIS should be able
to access external data that is comparable to
institutional data in the original data set.

ARTIFICIAL INTELLIGENCE
(AI)

Computer Games
Robots
Natural Language Understanding
Speech Recognition
Computer Vision
Pattern Recognition
Expert System

Levels of Decision Making

Type of IS
Executive
Support System
Decision
Support System
Management
Information System
Transaction
Processing
System

Groups Served
Strategic
Level
Decisions
Tactical Level
Decisions
Operational Level
Decisions

Senior
Managers

Middle
Managers
Operational
Managers

System Types
Executive
Support
Systems
(ESS)

Strategic-Level Systems
5 year
sales trend
forecasting

5 year
operating
plan

5 year
Profit
Manpower
budget
planning planning
forecasting

Decision
Tactical-Level Systems
Support
Sales
Inventory Annual
Capital inv. Relocation
Systems (DSS) management control
budgeting analysis
analysis
Management
Info Sys
(MIS)
Transaction
Processing
Systems
(TPS)

Sales region Production Cost

analysis
analysis
analysis

Pricing
analysis

Contract cost
analysis

Operational-Level Systems
Order
Inventory Cash
Payroll
processing control
management
Order
tracking

Work-in-progress

Training &
development

Asset
Accounts Employee
management receivable record keeping
/payable

Business Process Reengineering

(BPR)

BPR is the search for and implementation of radical change in

business processes to achieve breakthrough improvements in
products and services
Changes to the underlying Business Process (BP) can vary from
project to project
Some common BPR Goals
Reorganize complete flow of data in major sections of an
organization
Eliminate unnecessary steps completely
Combine steps
Become more responsive to future change (Agility)

Business Process Reengineering

(BPR)
Business Process Automation (BPA) small change
Business Process Improvement (BPI)
- moderate change
Business Process Reengineering
(BPR) - significant change

Business Process Re-engineering

BPR - Steps
Step 1

Step 2

Step 3

Understand

Simplify/Improve Automate

Understand the
existing
systems
associated with
all the
functionalities

Draft & frame the

Implement
possibilities & ways with the help
to simplify or
of ERP
Improve or eliminate
the processes

BPR Vs TQM
FACTOR

BPR

TQM

Level of
Change

Radical

Incremental

Frequency of One time

Change

Continuous
change

Participation Top-down

Bottom-up

Risk Factor

High

Moderate

Primary
Enable

IT dept

Statistical
Control

AGILITY IN BUSINESS
Adapting ability of the business with the
change of the Business Environment
Maintain flexible Organizational Structure
Motivating the employees to accept the
changes
Cordial relationship with the competitors
so that major changes can be avoided

VIRTUAL COMPANY
A company with fully networked
A company with more agility
A company with more IT enable
infrastructure
A company which easily accepts
the merging with competitors

HOW INTERNET CAN BE USED AS A

STRATEGIC TOOL?
Internet
- Communication with Customers,
suppliers, dealers, etc.
- reduces the cost & improves the
efficiency
- interaction with the customers to get
the feedback
- to know the current market trend & Competitors
position
Intranet
- Communication within the Organization

E-Commerce

Differentiating Data,
Information, and Knowledge
Data
Digital object
Objects are streams of bits

Information
Any tagged data, which is treated as an attribute.
Attributes may be tagged data within the digital object, or tagged data
that is associated with the digital object

Knowledge
Relationships between attributes

KNOWLEDGE MANAGEMENT
SYSTEM
In general, KM focuses on organizing and making
available important knowledge, wherever and
whenever it is needed.

KM is useful in market volatility and accelerated

responsiveness, todays younger manager feels less
adequate to make the difficult decisions faced each day.
KM is important for organizations that continually face
downsizing or a high turnover percentage due to the
nature of the industry.

Is Knowledge Management for

Everybody?

KM is important for all organizations

Todays decision maker faces the
pressure to make better and faster
decisions, even in light of
lack of experience typically from
the decision-maker
outcome of those decisions could
have such a considerable impact
on the organization

Knowledge
sharing/management system
people are different and are driven by different
motives. KM Systems should take this into account.
KM systems should not try to provide to all users
every functionality, and to deliver all the knowledge
that is potentially useful, but rather to provide the
individuals with what they really need.

Knowledge sharing /
management system
Questioner
Tell me how to write
an equipment plan.

Language/
intention
understanding
Intranet
Information
retrieval

Experienced person

Office
knowledge
Personal
know-how

 Thank you