Management Information Systems INFO August 1998 “Computer Based Systems providing managers with the information and support needed for effective decision making.”

INFO 213 Victoria University of Wellington 2 Learning Objectives Become familiar with Management Information System architecture and purpose Understand a Marketing Information System as a specific MIS example

INFO 213 Victoria University of Wellington 3 Management Functions Plan –Define organisational goals and strategies Organise –Determine resource allocation Lead – Motivating staff to achieve goals Control – Monitor progress toward goal achievement Management Information Systems support these functions

INFO 213 Victoria University of Wellington 4 Management Support Systems

INFO 213 Victoria University of Wellington 5 Map of Organisational Information Systems Executive Information Systems MK IS IRIS HRISFMIS Manufact IS

INFO 213 Victoria University of Wellington 6 “MIS is a Mirage” Dearden in 1972 HBR article criticised MIS as only system in organisation - centralised –Place competent information specialised in functional areas for system implementation (mid-1980’s) –Create functional systems in integrated manner (early 1990’s) –Develop IS for logistics (cost savings) (evolutionary from mid-1980’s) –Centralised management group (mid 1990’s) –Senior administrator to oversee all projects (late 1990’s) Moving to Chief Knowledge Officer (into 21st century)

INFO 213 Victoria University of Wellington 7 Generic MIS Model Management Information Systems Decision Support Systems Executive Information Systems Expert Systems Corporate Database External Information Database of Valid Completed Transactions Transaction Processing Systems Business Transaction Drill down reports Exception reports Demand reports Key Indicator reports Scheduled reports

INFO 213 Victoria University of Wellington 8 Generic Report Types Scheduled Reports –Periodic summary reports Key Indicator Reports –Summary of performance of key indicators –May be scheduled Demand Reports –Reports produced on demand Exception Reports –Automatically generated reports from criteria filter (i.e. trigger points) Drill Down Reports –Multi-level reports with detailed information

INFO 213 Victoria University of Wellington 9 Report Guidelines Prepare Reports only when exception occurs Use the Report sequence to highlight exception Group exceptions together Show variances from the norm !!Reports may be hard or soft copy

INFO 213 Victoria University of Wellington 10 Report Informs of Exception Review Overtime based on seasonal and other issues

INFO 213 Victoria University of Wellington 11 Use Report Sequence to Highlight Exceptions High to Low Volume Sales

INFO 213 Victoria University of Wellington 12 Group Exceptions *Designed to quickly identify exception

INFO 213 Victoria University of Wellington 13 Variance from Norm Compare Variance with level of experience and past history

INFO 213 Victoria University of Wellington 14 Functional Information Systems Marketing Function Human Resources Function Information Services Function Finance Function Manufacturing Function Marketing Information System Human Resources Information System Information Resources Information System Finance Management Information System Manufacturing Information System Physical System of the Firm Functional Information System Linked Functional Information Systems become Inter-Organisational Information System

INFO 213 Victoria University of Wellington 15 Marketing Mix Product –Customer buys product (service) to satisfy a need Promotion –Communicating product information to the customer Place (Distribution) –Physically distributing the product (service) to customer Price –What customer pays or is willing to pay

INFO 213 Victoria University of Wellington 16 Marketing Information System Model Users Accounting Information System Marketing Research Subsystem Marketing Intelligence Subsystem Product Subsystem Place Subsystem Promotion Subsystem Price Subsystem Integrated-Mix Subsystem Database Environmental Sources Internal Sources Data Information

INFO 213 Victoria University of Wellington 17 MKIS Inputs Accounting Information System (AIS) –Sales/Inventory Analysis from TPS Marketing Research Subsystem –Primary Data (own customers) –Secondary Data (third party information) Marketing Intelligence Subsystem –Environmental Scan for Competitor Information

INFO 213 Victoria University of Wellington 18 MKIS Output Subsystems Product –Used with DSS to determine product position in life cycle Place –Distribution Channel relies on 2-way information flow –Electronic Data Interchange improves flow Promotion –Computer-Based used only indirectly to track discounts/targeted advertising Price –Cost-Based > Accurate Cost Data –Demand-Based > DSS forecasts demand

INFO 213 Victoria University of Wellington 19 Integrated-Mix Subsystem Example BRANDAID* Manufacturer Retailer *Presented by John D.C. Little, Operations Research, July/August 1975 Competitor Consumer Environment Price Trade Promotions Package Assortment Price Trade Promotions Package Assortment Environmental Information Product: Sales Price/Promotion Product/Price Promotion Distribution Channel Distribution Channel

INFO 213 Victoria University of Wellington 20 How Managers Use MKIS

INFO 213 Victoria University of Wellington 21 MKIS Support Management Functions

INFO 213 Victoria University of Wellington 22 Who Uses MKIS Subsystems

INFO 213 Victoria University of Wellington 23 Trust Bank Case Study Describe the Trust Bank credit card business using the BRANDAID Model Describe the role of the TPS in this Model Describe how the 4 Ps subsystems are used in this Model