Management Information

Systems

Types of information systems

For different types of organizations

For different functions within organizations

For different business needs

and at different management levels of an organization

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3

Major Functional

Subsystem

Some typical uses

Marketing Sales forecasting, sales planning, customer and sales

analysis

Manufacturing Production planning and scheduling, cost control

analysis.

Logistics Planning and control of

purchasing, inventories, distribution

Personnel Planning personnel requirements, analyzing

performance, salary administration.

Finance and

Accounting

Financial analysis, cost analysis, capital requirements

planning, income measurement

Information

processing

Information system planning, cost-effectiveness

analysis

Top management Strategic Planning, resource allocation

Value Chain and IS

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5

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6

Activity

Subsystem

Some typical uses

Transaction

Processing

Processing of orders, shipments

and receipts

Operational control Scheduling of activities and

performance reports

Management

control

Formulation of budgets and

resource allocation

Strategic planning Formulation of objectives and

strategic plans

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8

Time

Scales

Level of

Detail

Source

Degree of

Uncertainty

Frequency

Operational Middle Strategic

Management Management Management

Immediate

Highly

detailed

Internal

Certain

Frequent

Long

Term

Summarised

External

Uncertain

Infrequent

How MIS Obtains Data from

TPS

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9

1

0

Decision Support Systems Serve middle management

Support non routine decision making

◦ E.g. What is impact on production schedule if

December sales doubled?

Often use external information as well

from TPS and MIS

DSS are either Model-Driven (What if) or

data-driven (Online Analytical Processing)

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1

Voyage Estimation Model based

DSS

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2

Executive support systemsSupport senior management

Address nonroutine decisions requiring

judgment, evaluation, and insight

Incorporate data about external events

as well as summarized information

from internal MIS and DSS

E.g. ESS that provides minute-to-

minute view of firm’s financial

performance as measured by working

capital, AP / AR, cash flow, and

inventory.

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3

Model of an ESS

This system pools data from

diverse internal and external

sources and makes them

available to executives in an

easy-to-use form.

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4

Interrelationships Among

Systems

TPS are major producers of information, which, in turn, produce information for

other systems. increasingly firms are using new technologies to integrate

information that resides in many different systems.

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16

Types of Decisions

Level Operational

Control

Management

Control

Strategic

Planning

Structured

Decisions

Inventory

Reorder,

Production

Scheduling

Pricing of

Bids,

Selection of

credit line

Institutions

Acquisition of

a company,

addition of new

product line

Unstructured

Decisions

Vendor

Selection,

hiring new

supervisor

Allocation of

advertising,

Internal

organization

of a deptt

Entry into new

market, new

organization of

company

17

Information

CharacteristicsStructured Unstructured

Prespecified Ad Hoc

Scheduled Unscheduled

Detailed Summarized

Frequent Infrequent

Historical Forward Looking

Internal External

Narrow Focus Wide Scope

Campus Overview

907/A Uvarshad,

Gandhinagar

Highway, Ahmedabad –

382422.

Ahmedabad Kolkata

Infinity Benchmark,

10th Floor, Plot G1,

Block EP & GP,

Sector V, Salt-Lake,

Kolkata – 700091.

Mumbai

Goldline Business Centre

Linkway Estate,

Next to Chincholi Fire

Brigade, Malad

(West), Mumbai – 400

064.