
A computer-based system that makes
information available to users with similar
needs.
Organizational Information Systems
Executive
Information
System
(EIS)
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 organizationwide resource
Contributes because it keeps a continuous
supply of information to the manager for
problem identification and understanding
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



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
Strategic
Operational
Scope
Wide
Narrow
Orientation
Future
Historic
Detail
Low
High
Source
External
Internal
Accuracy
Low
High
Timescale
Medium to long term
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
Manufacturing Information System
Manufacturing
Inventory
Control
Master
Production
Scheduling
Design
Engineering
Standard
Costing
Materials
Requirements
Planning
Capacity
Requirements
Planning
Bill
of
Materials
Shop Floor
Control
Job Costing
Labour
Performance

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
A Model of a Manufacturing System
Output
subsystems
Input
subsystems
Production
subsystem
Accounting
information
system
Internal
sources
Industrial
engineering
system
Environmental
sources
Manufacturing
intelligence
subsystem
Data Information
D
A
T
A
B
A
S
E
Inventory
subsystem
Users
Quality
subsystem
Cost
subsystem
An MRP II System
Executive
information
system
Other functional
information systems
Order
entry
Billing
Accounts
receivable
Purchasing
Material
requirements
planning
General
ledger
Receiving
Accounts
payable
An MRP System
Bill of
material
file
Customer
order file
Sales
forecast
file
Finishedgoods
inventory
file
Production
capacity
file
1.Production
scheduling
system
Master
production
schedule
Purchasing
system
3. Capacity
requirements
planning
2. Material
requirements
planning
system
Order release
report
Planned
order
schedule
Planning reports
Raw
materials
inventory
file
4.Order
release
system
Order release
report
Performance reports
Exception reports
Changes to
planned orders
Shop floor
control
system

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.
Accounting Information Systems
Order
Processing
and entry
Fixed
Assets
and
Depreciation
Purchase
Order &
Receiving
Word
Processing
Accounts
Receivable
General
Ledger
Inventory
Management
Payroll
Accounts
Payable
A Model of an Accounting Information System
Environment
Information
Management
Data
processing
software
Data
Database
Accounting
Information
System
Input
physical
resources
Transform
Environment
Output
physical
resources





Performs necessary tasks
Standard procedures
Detailed data
Historical focus
Provides minimal problem-solving information



MIS
DSS
ES
Depends on a good AIS
Depends on a good AIS
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
A Model of a Financial Information System
Output
subsystems
Input
subsystems
Data Information
Forecasting
subsystem
Accounting
information
system
Internal sources
Internal
audit
subsystem
Environmental
sources
Financial
intelligence
subsystem
Database
Funds
management
subsystem
Control
subsystem
Users


Most is accounting in nature
Both general business and personal
productivity software
1.
Forecasting model
Sales forecast
2.
Top
management
The Budgeting
Process
Approved sales
forecast
3.
Finance
requirements
4.
Finance
manager
Requested
finance
budget
Resource planning
model
Human resource Information services
requirements
requirements
Human
resource
manager
Information
services
manager
Requested
information
services budget
Requested
human
resources
budget
5.
Top
management
Final organizational
budget
Manufacturing
requirements
Manufacturing
manager
Requested
manufacturing
budget
Marketing
requirements
Marketing
manager
Requested
marketing
budget
BUDGET REPORT
AS OF JANUARY 31
MIDWEST REGION
CURRENT MONTH
ITEM
BUDGET
ACTUAL
SALARIES
TRAVEL
ENTERTAINMENT
TELEPHONE
RENT
FURNITURE
SUPPLIES
MISC.
$23,500
8,250
1,400
200
535
0
625
400
$22,000
9,000
1,635
85
535
0
410
620
TOTAL
$34,910
$34,285
DOLLARS
$1,500750+
235+
115+
0
0
215220+
625-
YEAR-TO-DATE
BUDGET
ACTUAL
DOLLARS
$59,000
23,500
4,200
600
1,605
420
1,875
1,200
$54,250
28,100
5,100
225
1,605
505
1,320
1,963
$4,7504,600+
900+
375+
0
85+
555765+
$92,400
$93,070
670+
Marketing Information Systems
Customer
Service
Analysis
Sales Force
Management
Logistics
and
Distriubution
Sales
Performance
Analysis
Market
Research
Promotion
Budgeting
Product
Analysis
Functional Information Systems Represent
Functional Physical Systems
Functional information systems
Marketing
information
system
Manufacturing
information
system
Finance
information
system
Human resource
information
system
Information
resource
information
system
Marketing
function
Manufacturing
function
Finance
function
Human
resources
function
Information
Services
function
Physical system of the firm
Kotler’s Information Flows
Marketing intelligence
Internal
marketing
information
Environment
Firm
Marketing communications
Marketing Information System Model
Input
subsystems
Accounting
information
system
Internal sources
Marketing
research
subsystem
Environmental sources
Marketing
intelligence
subsystem
Data
Information
Output subsystems
D
A
T
A
B
A
S
E
Product
subsystem
Place
subsystem
Promotion
subsystem
Price
subsystem
Integratedmix
subsystem
Users
The Product Life Cycle and Related Decisions
STAGES
Introduction
Growth
Maturity
Decline
Sales
Volume
Should the
product be
introduced
Should the product strategy
be changed
Should the
product be
deleted
Model Use Is Becoming More Balanced
Strategic planning
level
.17
Management
control
level
.70
Strategic
planning
level
.30
Management
control
level
.54
Operational control
level
.13
Operational control
level
.16
1980
1990
Note: The percentages are based on the number of respondents
ranking the particular management levels first.
Strategic planning
level
.25
Strategic planning
level
.28
Management control
level
.57
Management control
level
.40
Operational control
level
.17
1980
Operational Control
level
.31
1990
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
Primary HR Activities
Recruiting
Hiring
Education
& Training
Termination
Benefit
Administration
The Firm
Potential
Employees
Employees
Data Management
Retired
Employees
HRIS Model
Output
subsystems
Input
subsystems
Work force
planning
subsystem
Accounting
information
system
Internal
sources
Human
resources
research
system
Environmenta
l
sources
Manufacturing
intelligence
subsystem
Data Information
Recruiting
subsystem
HRIS
Database
Work force
management
subsystem
Compensation
Subsystem
Benefits
subsystem
Environmental
reporting
subsystem
Users