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MANAGEMENT INFORMATION

SYSTEMS
By
DR S SENA
SENIOR LECTURER
BUSINESS STUDIES

ITEC 1010 Information and Organizations


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
ITEC 1010 Information and Organizations
Sources of Management Information

Schematic

ITEC 1010 Information and Organizations


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

ITEC 1010 Information and Organizations


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
ITEC 1010 Information and Organizations
Scheduled Report Example
Daily Sales Detail Report
Prepared: 08/10/xx

Order Customer Sales Rep Ship


# ID 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

ITEC 1010
P12456 C34123 JMW
Information08J/13/96 144
and Organizations P3214 $720
Key Indicator Report
Example
Daily Sales Key Indicator Report

This Last Last


Month Month Year

Total Orders Month to Date $1,808 $1,694 $1,014

Forecasted Sales for the Month $2,406 $2,224 $2,608

ITEC 1010 Information and Organizations


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
ITEC 1010 Information and Organizations
Exception Report Example
Daily Sales Exception Report – ORDERS OVER $10,000
Prepared: 08/10/xx

Order Customer Sales Rep Ship


# ID ID Date 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

… … … … … … …

… 1010
ITEC … …
Information …Organizations
and … … …
Outputs of a Management
Information System
Drill Down Reports
Provide detailed data about a situation.
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%

rd Qtr 1010
3ITEC 1998 $12.8 and Organizations
$13.3 -3.0%
Information
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
ITEC 1010 Information and Organizations
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

ITEC 1010 Information and Organizations


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

ITEC 1010 Information and Organizations


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

Schematic

ITEC 1010 Information and Organizations


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 Etc.
external
data MIS
Extranet
Etc.

ITEC 1010 Information and Organizations


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

Schematic

ITEC 1010 Information and Organizations


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
Financial statements
Financial
Operational Uses and management ES
Internet or databases of funds
Extranet Financial statistics
for control

Business Customers,
transactions Suppliers

ITEC 1010 Information and Organizations


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.
ITEC 1010 Information and Organizations
Financial MIS Subsystems and
Outputs
Financial subsystems
 Profit/loss and cost systems
 Auditing
 Internal auditing
 External auditing
 Uses and management of funds
ITEC 1010 Information and Organizations
Manufacturing MIS

Schematic

ITEC 1010 Information and Organizations


Databases of Manufacturing
Databases of
internal data external data DSS

Business
transactions
Transaction Databases
processing of valid
Manufacturing
systems transactions MIS Manufacturing
for each applications
TPS databases

Business Quality control reports


transactions
Process control reports Manufacturing
Operational ES
JIT reports
Internet or databases
MRP reports
Extranet
Production schedule
CAD output

Business Customers,
transactions Suppliers

ITEC 1010 Information and Organizations


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
ITEC 1010 Information and Organizations
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
ITEC 1010 Information and Organizations
Marketing MIS
Supports managerial activities in product
development, distribution, pricing
decisions, and promotional effectiveness

Schematic

ITEC 1010 Information and Organizations


Databases of Manufacturing
Databases of
internal data external data DSS

Transaction Databases
Business processing of valid
Marketing
transactions systems transactions MIS Marketing
for each applications
TPS databases

Sales by customer

Sales by salesperson Manufacturing


Operational Sales by product ES
databases Pricing report
Total service calls
Customer satisfaction

Figure 9.9
ITEC 1010 Information and Organizations
Inputs to Marketing MIS
Strategic plan and corporate policies
The TPS
External sources:
The competition
The market

ITEC 1010 Information and Organizations


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

ITEC 1010 Information and Organizations


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

ITEC 1010 Information and Organizations


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

ITEC 1010 Information and Organizations


Inputs to the Human
Resource MIS
Strategic plan or corporate policies
The TPS:
Payroll data
Order processing data
Personnel data
External sources
ITEC 1010 Information and Organizations
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

ITEC 1010 Information and Organizations


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.

ITEC 1010 Information and Organizations

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