Management Information
Systems
“Computer Based Systems providing
managers with the information and
support needed for effective decision
making.”
INFO 213
3 August 1998
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
2
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
3
Management Support Systems
Type of
Decision
Operational
Control
Make/Buy
Decision, Budget
Analysis
Project
Semistructured Production
scheduling,
Scheduling, Plant
inventory control Layout, Shift
Schedule
Selecting a annual Recruiting,
Unstructured
report cover,
Reordering raw
approving loans
material
MIS
DSS, EIS, ES
Technology
Support Needed
Structured
INFO 213
Accounts
Receivable
Type of Control
Managerial
Control
Strategic Planning
Technology
Support
Needed
MIS
TPS
Financial
Management,
Merger
New Product
DSS
Planning, Quality
Assurance Planning
R & D Planning
DSS.
Expert
Systems
EIS, ES
Victoria University of Wellington
4
Map of Organisational
Information Systems
Executive
Information
Systems
IRIS
MK
IS
INFO 213
FMIS
HRIS
Manufact
IS
Victoria University of Wellington
5
“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
6
Generic MIS Model
Corporate
Database
Business
Transaction
Transaction
Processing
Systems
Database
of Valid
Completed
Transactions
External
Information
Management
Information
Systems
Drill down reports
Exception reports
Demand reports
Decision
Support
Systems
Executive
Information
Systems
Expert
Systems
Key Indicator reports
Scheduled reports
INFO 213
Victoria University of Wellington
7
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
8
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
9
Report Informs of Exception
Review Overtime based on seasonal and other issues
Overtime Earnings
Dept No Dept Name
Current
1
Shelving
750.00
2
Sales
0
4
Administration
1000.00
INFO 213
Victoria University of Wellington
Year-to-Date
5000.00
2000.00
0
10
Use Report Sequence to
Highlight Exceptions
ISBN
BOOK_TITLE
TQUANT
0 671 50993 4 The Thousand Receipe Chinese Cookbook
16
0 688 07822 2 You Just Don't Understand
15
0 394 50391 0 Maida Heatter's Book Of Great Chocolate
Desserts
0 87584 416 1 Competing for the Future
12
1 86359 338 1 The Rise and Rise of Kerry Packer
6
1 56799 020 7 Pasta
6
0 87584 218 1 Competitive Advantage through People
5
1 85788 056 0 Reengineering the Corporation
3
0 87984 235 1 Community Capitalism
3
0 87584 216 1 Strategic Negotiations
3
INFO 213
Victoria University of Wellington
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High
to
Low
Volume
Sales
11
Group Exceptions
AGED ACCOUNTS RECEIVABLE REPORT
AS OF MAY 31
CUSTOMER CUSTOMER CURRENT 30-60 60-90 OVER
TOTAL
NUMBER
NAME
AMOUNT DAYS DAYS 90 DAYS AMOUNT
51212
Kelly &
1,003.10
20.26
1023.36
Marley Inc
51221
52472
53204
54233
Kepner Dana
Kerite Co
Kunkle
Keyman
Associates
376.94
217.82
153.26 114.14 11.12
101.74
432.71
278.52
469.68
217.82
432.71
*Designed to quickly identify exception
INFO 213
Victoria University of Wellington
12
Variance from Norm
Compare Variance with level of experience and past history
Actual versus Planned Activity
Current Month
Sales Sales
No
Name Quota Actual Variance
212 Smith 1200
1083
-117
215 Jones
1000
1162
+162
381 Sams
800
1090
+290
433 Reed
1500
1305
-195
233 Rhode 2000
2333
+333
INFO 213
Year-to-Date
Quota
3600
3000
2400
4500
6000
Victoria University of Wellington
Actual
3505
3320
2510
4110
6712
Variance
-95
+320
+110
-390
+712
13
Functional Information Systems
Functional Information System
Marketing
Information
System
Finance
Manufacturing Management
Information
Information
System
System
Marketing Manufacturing Finance
Function
Function
Function
Human
Resources
Information
System
Information
Resources
Information
System
Human
Resources
Function
Information
Services
Function
Physical System of the Firm
Linked Functional Information Systems become Inter-Organisational
Information System
INFO 213
Victoria University of Wellington
14
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
15
Marketing Information System
Model
Data
Information
Accounting
Information
System
Internal Sources
Marketing
Research
Subsystem
Environmental
Sources Marketing
Intelligence
Subsystem
INFO 213
Product
Subsystem
Place
Subsystem
Database
Promotion
Subsystem
Users
Price
Subsystem
Integrated-Mix
Subsystem
Victoria University of Wellington
16
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
17
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
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Integrated-Mix Subsystem
Example BRANDAID*
Manufacturer
Price
Trade Promotions
Package Assortment
Distribution
Channel
Product: Sales
Consumer
Retailer
Price
Trade Promotions
Package Assortment
Price/Promotion
Distribution
Channel
Competitor
Product/Price
Promotion
*Presented by John D.C. Little, Operations Research, July/August 1975
INFO 213
Victoria University of Wellington
Environmental
Information
Environment
19
How Managers Use MKIS
Reasons for Using MKIS
Percentage of Responses
100
1980
1990
80
60
40
20
0
Retrieving
Data
INFO 213
Responding to
Inquiries
Producing
Reports
Storing Data
Using Models
Coding
Programmes
Victoria University of Wellington
Processing
Data
Transmitting
Reports
Displaying
Graphics
20
MKIS Support Management
Functions
Strategic Planning
25%
Strategic Planning
28%
Management Control
57%
Management Control
40%
Operational Control
17%
1980
INFO 213
Operational Control
31%
1990
Victoria University of Wellington
21
Who Uses MKIS
Subsystems
User
VP, Marketing
Other Senior
Executives
Brand Managers
Sales Managers
Advertising
Managers
Manager,
Marketing Research
Manager, Product
Planning
Manager,
Distribution
Other managers
INFO 213
Product Place Promotion
Price Integrated
Mix
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
X
Victoria University of Wellington
22
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
INFO 213
Victoria University of Wellington
23