Management Information System

Prepared by Chantal Ghobril

11/01/2012

Management Information System

Outline
Mountain of Data MIS Definition MIS Objectives MIS Characteristics MIS Input Types MIS Output Types

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Management Information System

Outline
Mountain of Data MIS Definition MIS Objectives MIS Characteristics MIS Input Types MIS Output Types

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Management Information System

Mountain of Data
Currently, organizations have a lot of data Data is not a form that is useful to decisionmaking
Not easy to review Not informative

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Management Information System

Todays Information Flow

Business in 90s invested in transactional systems:
Supply chain management (SCM) Customer Relationship Management (CRM) Enterprise Resource Planning (ERP) Finance (budget, forecasting and reporting) ,Etc.

Proliferation of Data Data from Disparate Sources

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Outline
Mountain of Data MIS Definition MIS Objectives MIS Characteristics MIS Input Types MIS Output Types

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Management Information System

Definition MIS (1/2)

MIS (Management Information System) is the study of information technology in business settings But MIS also refers to a class of systems used to support operational and tactical decision making

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Management Information System

Definition MIS (2/2)

The three sub-components (Management, Information and System):
System emphasizing a set of components that work together to achieve a common goal Information stressing on processed data in the context which it is used by end users Management focusing on the ultimate use of such information systems for managerial decisions

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Management Information System

Outline
Mountain of Data MIS Definition MIS Objectives MIS Characteristics MIS Input Types MIS Output Types Business Intelligence
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Why MIS?
Good information system helps in better management of resources Analysis target vs achievements Strengthen corporate and financial institutions performance Vital role in strategic decisions, enabling course correction
Right information at right time is key to success
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MIS Objectives
MIS helps:
Establishing relevant and measurable objectives Monitoring results and performances Providing feedback on daily, weekly and monthly operations Informing managers with required information and support in order to :
Achieve corporate goal Identify problem opportunities for improvement
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Outline
Mountain of Data MIS Definition MIS Objectives MIS Characteristics MIS Input Types MIS Output Types

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Characteristics of a Good MIS

Timeless: Information outside of the requested time frame may lead to an improperly informed decision Accurate: Information should be accurate and avoid any inclusions of estimates or probable costs Relevant: Information not related to the decision making should be avoided
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MIS Characteristics
Provides reports with fixed and standard formats Uses internal data stored in the information system End users can develop custom reports

Requires formal requests from users

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Outline
Mountain of Data MIS Definition MIS Objectives MIS Characteristics MIS Input Types MIS Output Types

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MIS input
Accumulation of Transaction Processing System (TPS):
Important financial information collected from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger, etc. Annual reports and financial statements of competitors, general news items, etc.

External database sources

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Input

An Organizations MIS Financial MIS

Output

Business transactions

Transaction processing systems

Databases of valid transactions

Accounting MIS

Exception reports Demand reports

Marketing MIS

Key-indicator reports Scheduled reports

Business transactions

Databases of external data

Human Resources MIS Etc.

Etc.

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Outline
Mountain of Data MIS Definition MIS Objectives MIS Characteristics MIS Input Types MIS Output Types

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MIS Output Types

Periodical automated Scheduled reports Key indicator report: Summarize the previous days/months/years critical activities On demand report: Give certain information according to managers request Exception report: Automatically produced when a situation is unusual and requires management action (data that are outside of normal ranges)
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Input

An Organizations MIS

Output

Business transactions

Financial MIS

Transaction processing systems

Databases of valid transactions

Accounting MIS

Exception reports
On Demand reports

Marketing MIS

Key-indicator reports Scheduled reports

Business transactions

Databases of external data

Human Resources MIS

Etc.

Etc.

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Key Indication Report Example

Monthly Sales Key Indicator Report January 2012 Total Orders Month to Date Forecasted Sales for the Month $1,563M $2,000M December 2011 $4,694M $2,000M November 2011 $1,014M $2,000M

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Exceptional Report Example

Daily Sales Exception Report ORDERS OVER $10,000 Prepared: 10/10/2011

Order #
P10000 P10001 P10002

Customer ID
1234 1085 3214

Ship Date
09/10/11 09/10/11 09/10/11

Quantity 138 86 65

Item # P1234 P3214 P4902

Amount $13,214 $15,660 $11,224

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On demand Report

Daily Sales by Salesmen Summary Report Prepared: 11/01/2011 Salesmen Name Karl Ghosn Issam Karam Hala Assaf Amount $42,345 $38,950 $22,100

Issa Itani

$12,350

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Objectives of MIS reports

Highlight company strengths and weaknesses due to the presence of revenue reports, employees' performance record etc

An overall picture of the company and acting as a communication and planning tool
Predictions of customer trends and behaviors by the analysis of sales and revenue reports
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References
http://www.occ.treas.gov/handbook/mis.pdf Laudon, Jane P. (2009). Management Information Systems: Managing the Digital Firm (11 ed.). Prentice Hall/CourseSmart. p. 164. Transaction processing systems (TPS) collect and record the routine transactions of an organization
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Thank you!

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