 A computer-based system that makes information available to users with similar needs.

Executive Information System (EIS) Organizational Information Systems Marketing information system Manufacturing information system Financial information system Human resource information system

 Information  Past, present, future  Periodic reports, special reports, simulations  Similar needs  Functional area  Management level  Managers and nonmanagers

 Contributes because MIS is an organization- wide resource  Contributes because it keeps a continuous supply of information to the manager for problem identification and understanding  What is MIS? What is MIS?

 Information is data that has been processed and is useful in decision making. it helps decision makers by increasing knowledge and decreasing uncertainty.  IRS Provide the following;  Correct and timely information to appropriate managers  Information on medium and long range operations  summarised information

 Top Level Management Strategic Decision making  Middle Level Management Tactical Decision Making  Lower Level Management Operational Decision Making  Levels of Management Levels of Management

 Future Orientated and involves a great deal of uncertainty  Involves establishing goals and objectives for the organisation  May include the following;  Introducing new products, new markets, acquiring facilities,  raising capital, capital expenditure proposals etc

 Concerned with tactical decision making  Implementing strategy.  activities include;  planning working capital, scheduling working capital, formulating budgets,  managing personnel, etc

 First line supervisors  Operating decisions to ensure specific jobs are done.  examples  stock control, selling, distribution, assigning jobs to staff

Information Attribute Scope Orientation Detail Source Accuracy Timescale Strategic Wide Future Low External Low Medium to long term Operational Narrow Historic High Internal High Day to Day

 Scheduled listings  Exception Reports  Predictive reports  Demand Reports

 Produced at regular intervals and provide routine information to a wide variety of users.  Suffer from information overload and problems of relevance  Control and tracking oriented  Examples  Stock Listings  Standard costs  Customer Balances  Debtors listings  Monthly Sales reports

 Action Oriented  Monitors the performance of the business and any deviation from expected results triggers the generation of a report.  Examples  Stock Out Reports  Bad debts Report  Customer complaints

 Used for planning what if models,  Examples  MRP  Budgeting

 Solicited by managers  Normally produced on line and from a database  Examples  Correlation reports  Capital expenditure Evaluations

 Interest rates  Exchange Rates  Competitor Actions  Industry News  Socio Economic Information  Pricing  Staffing levels  Sales by month  Strategic Initiatives by Competitors  Regulations

 Much of the data currently reported by Information Systems are based on Financial Performance Measures. These have several shortcomings including;  There are based on the general accounting model  They tend to be lagging as indicators of future performance  They are often not used by mangers when their making decisions  They can be manipulated or gamed both internally and externally.  They tell an incomplete story.

 The objective of many of these measures is to achieve a balanced score card form of reporting for management with financial, customer, quality and innovation information reported in tandem. Order Cycle Times Percent of Orders delivered on time Inventory Turnover Warranty Claim Rates Service Outages Order fulfilment accuracy Friendliness of customer service staff

 Response time to customers calls Shareholder Value Analysis Design to market Time Employee Turnover Process Cycle Times Time to market Capacity utilisation Set up Times Order management Time Right First time

Manufacturing Information Systems

Master Production Scheduling Standard Costing Design Engineering Capacity Requirements Planning Shop Floor Control Bill of Materials Requirements Planning Labour Performance Job Costing Manufacturing Inventory Control Manufacturing Information System

 Definition (same components as marketing)  A computer-based system that works in conjunction with other functional information systems to support the firm's management in solving problems that relate to manufacturing the firm's products

DATABASEDATABASE Accounting information system Industrial engineering system Manufacturing intelligence subsystem Production subsystem Inventory subsystem Quality subsystem Cost subsystem Internal sources Environmental sources Inputsubsystems Outputsubsystems Users Data Information A Model of a Manufacturing System

Material requirements planning Executive information system Order entry Accounts payable Accounts receivable General ledger An MRP II System Other functional information systems Purchasing ReceivingBilling

Customer order file Sales forecast file Finished- goods inventory file Produc- tion capacity file Bill of material file Plannedorderschedule Raw materials inventory file 1.Production scheduling system 2. Material requirements planning system 3. Capacity requirements planning Purchasing system Order release report 4.Order release system Order release report Shop floor control system Performance reports Planning reports Exception reports Changes to planned orders An MRP System Master produc- tion schedule

 CAD (a.k.a. computer-aided engineering)  Design database  CAM  Robotics

 The term accounting applications software refers to packages which computerise the firm’s ledger accounting system and related functions such as payroll.  The emphasis is on transaction processing; hence, such software carries out a data processing function rather than an MIS or DSS function.  The accounting applications software can often be used to provide summary reports which may be useful for managerial decision-making.

 Accounting applications software is generally modular in design. This means that the software can be purchased and operated in individual sections or modules (for example, a small business might decide to computerise only its sales ledger) but that where several modules are used simultaneously data is efficiently shared and transferred between them.  For example, when data is entered to the sales ledger, it is posted automatically by the system to the nominal ledger if that module also exists.

Order Processing and entry Accounts Receivable Purchase Order & Receiving Inventory Management General Ledger Fixed Assets and Depreciation Accounts Payable Payroll Word Processing Accounting Information Systems

Environment A Model of an Accounting Information System Information Data Management Dataprocessingsoftware Transform AccountingInformationSystem Database Outputphysicalresources Inputphysicalresources Environment

 Performs necessary tasks  Standard procedures  Detailed data  Historical focus  Provides minimal problem-solving information

 MIS Depends on a good AIS  DSS Depends on a good AIS  ES Depends on a good AIS

 A computer-based information system that works in conjunction with other functional information systems to support the firm’s management in solving problems that relate to financial operations and status  It provides information to persons both inside and outside of the firm

Database Accounting information system Internal audit subsystem Financial intelligence subsystem Forecasting subsystem Funds management subsystem Control subsystem Internal sources Environmental sources Input subsystems Output subsystems Users Data Information A Model of a Financial Information System

 Most is accounting in nature  Both general business and personal productivity software

Final organizational budget 5. The Budgeting Process Forecasting model Sales forecast Topmanagement Resource planning model Human resource requirementsFinancerequirements ManufacturingrequirementsMarketingrequirements Financemanager manager Informationservicesmanager Manufacturingmanager Marketingmanager Requestedfinancebudget Requestedhumanresourcesbudget Requested information services budget Requestedmanufacturingbudget Requestedmarketingbudget Approved sales forecast Topmanagement Information services requirements

BUDGET REPORT AS OF JANUARY 31 MIDWEST REGION CURRENT MONTH YEAR-TO-DATE ITEM BUDGET ACTUAL DOLLARS BUDGET ACTUAL DOLLARS SALARIES $23,500 $22,000 $1,500- $59,000 $54,250 $4,750- TRAVEL 8,250 9, ,500 28,100 4,600+ ENTERTAINMENT 1,400 1, ,200 5, TELEPHONE RENT ,605 1,605 0 FURNITURE SUPPLIES ,875 1, MISC ,200 1, TOTAL $34,910 $34, $92,400 $93,

Sales Force Management Logistics and Distriubution Market Research Budgeting Sales Performance Analysis Product Analysis Promotion Customer Service Analysis Marketing Information Systems

Functional information systems Marketing information system Manufacturing information system Finance information system Human resource information system Marketing function Manufacturing function Finance function Human resources function Physical system of the firm Functional Information Systems Represent Functional Physical Systems Functional Physical Systems Information resource information system Information Services function

Firm Environ- ment Marketing intelligence Marketing communications Internal marketing information Kotler’s Information Flows

Input subsystems Output subsystems DATABASE Accounting information system Marketing research subsystem Marketing intelligence subsystem Internal sources Environmental sources Product subsystem Place subsystem Promotion subsystem Price subsystem Integrated- mix subsystem Users DataInformation Marketing Information System Model

SalesVolume STAGES Introduction Growth MaturityDecline Should the product be introduced Should the product strategy be changed Should the product be deleted The Product Life Cycle and Related Decisions

Strategic planning level.17 Strategic planning level.30 Management control level.70 Management control level.54 Operational control level.13 Operational control level.16 Note: The percentages are based on the number of respondents ranking the particular management levels first. Model Use Is Becoming More Balanced

Strategic planning level.25 Management control level.57 Operational control level.17 Strategic planning level.28 Management control level.40 Operational Control level.31 Note: The percentages are based on the number of respondents ranking the particular management levels first

Human Resource Information Systems

The importance of the human resource function and the human resources information system has grown over the last ten years

Recruiting Hiring Education & Training Terminat- ion Benefit Administration Potential Employees Retired Employees Data Management The Firm Primary HR Activities

Accounting information system Human resources research system Manufacturing intelligence subsystem Work force planning subsystem Work force management subsystem Benefits subsystem Internal sources Environmenta l sources Input subsystems Output subsystems Users Data Information Environmental reporting subsystem HRIS Database HRIS Model Recruiting subsystem Compensation Subsystem