1. Management Information Systems
Lecturer: Gareth Jones

2. Learning Objectives
What are the major features of a business that are important for understanding the role of information systems?
How do information systems support the major business functions: sales and marketing, manufacturing and production, finance and accounting, and human resources?
How do systems serve the various levels of management in a business and how are these systems related?
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

3. Learning Objectives (II)
How do enterprise applications, collaboration and communication systems, and intranets improve organizational performance?
What is the role of the information system’s function in a business?
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

4. Business Components
Business: Formal organization that makes products or provides a service in order to make a profit
Four basic business functions
Manufacturing and production
Sales and marketing
Finance and accounting
Human resources
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

5. Business Functions Management Information Systems (BUS-141 MIS)
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6. Business Entities Five basic business entities: Suppliers Customers
Employees
Invoices/payments
Products and services
Management Information Systems (BUS-141 MIS)
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7. Business Processes are…
Logically related set of tasks that define how specific business tasks are performed
The tasks each employee performs, in what order, and on what schedule
E.g. Steps in hiring an employee
Some processes tied to functional area
Sales and marketing: Identifying customers
Some processes are cross-functional
Fulfilling customer order
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

8. Orders with business functions
Management Information Systems (BUS-141 MIS)
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9. Business Management
Firms coordinate work of employees by developing hierarchy in which authority is concentrated at top
Senior management
Middle management
Operational management
Knowledge workers
Data workers
Production or service workers
Each group has different needs for information
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

10. Business Heirarchy Management Information Systems (BUS-141 MIS)
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11. Business Environment Immediate environment factors
Global environment factors
Technology and science
Economy
Politics
International change
Immediate environment factors
Customers
Suppliers
Competitors
Regulations
Stockholders
Management Information Systems (BUS-141 MIS)
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12. Business Environment Management Information Systems (BUS-141 MIS)
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13. Remember from yesterday?
Firms invest in information systems in order to:
Achieve operational excellence
Develop new products and services
Attain customer intimacy and service
Improve decision making
Promote competitive advantage
Ensure survival
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

14. Systems supporting Factors
Sales and marketing systems
Manufacturing and production systems
Finance and accounting systems
Human resources systems
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

15. Sales and Marketing Sales and marketing systems
Support activities for selling and marketing firm’s products or services
Senior management:
Monitor trends affecting products and sales, planning for new products and services, monitor performance of competitors
Middle management:
Support market research, analyze marketing campaigns, pricing decisions, sales performance
Operational management and employees:
Locating and contacting prospective customers, process orders, provide customer service support
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

16. Sales and Marketing Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

17. Manufacturing Manufacturing and production systems
Support activities for producing firm’s products or services
Senior management:
Help plan long-term manufacturing goals, such as technology investments and locating new plants
Middle management:
Analyze and monitor manufacturing and production costs and resources
Operational management
Manage status of production tasks
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

18. Manufacturing Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

19. Finance Finance and accounting systems
Support activities for managing financial assets, firm’s capitalization, and financial records
Senior management:
Establish long-term investment goals and provide long-range forecasts of firm’s financial performance
Middle management:
Oversee and control firm’s financial resources
Operational management
Track flow of funds in firm through transactions (paychecks, payments, securities reports, receipts, etc.)
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

20. Finance Management Information Systems (BUS-141 MIS)
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21. Human Resources (HR) Human resources systems
Support activities for attracting, developing, and maintaining firm’s workforce
Senior management:
Identify manpower requirements (skill, education level, types and numbers of positions, etc.) for meeting long-term business plans
Middle management:
Monitor and analyze recruitment, allocation, and compensation of employees
Operational management
Track recruitment and placement of employees
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

22. HR
Management Information Systems (BUS-141 MIS)
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23. Support Systems Transaction processing systems
Keep track of basic activities and transactions of organization (e.g. sales, receipts, cash deposits, payroll, credit decisions, flow of materials in a factory)
Management information systems and decision-support systems
Help with monitoring, controlling, decision-making, and administrative activities
Executive support systems:
Help address strategic issues and long-term trends, both in firm and in external environment
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

24. Transaction Support Systems
Transaction processing systems
Serve operational managers
Principal purpose is to answer routine questions and to track the flow of transactions through the organization
E.g. Inventory questions, granting credit to customer
Monitor status of internal operations and firm’s relationship with external environment
Major producers of information for other systems
Highly central to business operations and functioning
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

25. Management Information Systems
Provide middle managers with reports on firm’s performance
To monitor firm and help predict future performance
Summarize and report on basic operations using data from TPS
Provide weekly, monthly, annual results, but may enable drilling down into daily or hourly data
Typically not very flexible systems with little analytic capability
Management Information Systems (BUS-141 MIS)
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26. TSS and MISS Management Information Systems (BUS-141 MIS)
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27. MIS Report Management Information Systems (BUS-141 MIS)
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28. Decision Support Systems
Decision support systems (DSS)
Support non-routine decision making for middle management
E.g. What would impact on production schedules be if sales doubled in December?
Use information from TPS, MIS, and external sources
Use models to analyze data
E.g. voyage estimating system of metals company that calculates financial and technical voyage details
Focus on extracting, analyzing information from large amounts of data
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

29. Decision Support Systems
Management Information Systems (BUS-141 MIS)
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30. Executive Support Systems (ESS)
Serve senior managers
Address strategic issues and long-term trends
E.g. What products should we make in 5 years?
Address non-routine decision-making
Provide generalized computing capacity that can be applied to changing array of problems
Draw summarized information from MIS, DSS and data from external events
Typically use portal with Web interface to present content
Management Information Systems (BUS-141 MIS)
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31. ESS Management Information Systems (BUS-141 MIS)
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32. Relationships with each other
TPS: Major source of data for other systems
ESS: Primarily a recipient of data from lower-level systems
Other systems may exchange data as well
Exchange of data between functional areas
E.g. Sales order transmitted to manufacturing system
In most organizations, systems are loosely integrated
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

33. Enterprise Applications
Management Information Systems (BUS-141 MIS)
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34. Enterprise Application Architecture
Management Information Systems (BUS-141 MIS)
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35. Enterprise Systems
Integrate data from key business processes into single system
Speed communication of information throughout firm
Enable greater flexibility in responding to customer requests, greater accuracy in order fulfillment
Enable managers of large firms to assemble overall view of operations
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

36. Enterprise Systems Management Information Systems (BUS-141 MIS)
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37. Supply Chain Management
Manage relationships with suppliers, purchasing firms, distributors, and logistics companies
Manage shared information about orders, production, inventory levels, etc.
Goal is to move correct amount of product from source to point of consumption as quickly as possible and at lowest cost
Type of inter-organizational system:
Automating flow of information across organizational boundaries
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

38. Supply Chain Management
Management Information Systems (BUS-141 MIS)
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39. Customer Relationship Management
Help manage relationship with customers
Coordinate business processes that deal with customers to optimize revenue and customer satisfaction, and increase sales
Combine sales, marketing, and service record data from multiple communication channels to provide unified view of customer, eliminate duplicate efforts
E.g. Saab CRM applications to achieve 360º view of customers resulted in greater follow-up rate on sales leads and increased customer satisfaction
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

40. Knowledge Management Systems
Intangible knowledge assets
Knowledge about producing and delivering products
Source of value and advantage for firms
Knowledge management systems:
Help capture, storage, distribute, and apply knowledge so that it can be leveraged for strategic benefit
Include systems for:
Managing and distributing documents, graphics, other digital knowledge objects
Creating knowledge directories of employees with specialized expertise
Distributing knowledge
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

41. E-Terms E-business E-commerce E-government:
Use of digital technology and Internet to drive major business processes
E-commerce
Subset of e-business
Buying and selling goods and services through Internet
E-government:
Using Internet technology to deliver information and services to citizens, employees, and businesses
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009

42. Key Points 4 Business Functions and Systems 5 Business Entities
Support Systems (TSS, MIS, DSS, ESS)
Management Systems (SCM, CRM, KMS)
Management Information Systems (BUS-141 MIS)
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43. Case Study Part 1
Identify all the current processes in the case study and think about the:
Business Functions
Business Entities
Please justify any assumptions you make
Management Information Systems (BUS-141 MIS)
Tuesday, 17 March 2009