Management Information Systems

Structure of Management Information Systems

Prof. Rushen Chahal

Prof. Rushen Chahal

PART I
The Physical Components of MIS Types of Organizational Information Systems Information for Management
A. Attributes of quality information B. Internal vs external information

Management Reporting Systems (MRS)

A. Characteristics of MRS B. Reporting by MRS
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PART I
Decision Support Systems (DSS) Executive Information Systems Expert Systems Informational Support of Management Levels of Planning & Control
A. Operations Planning & Control B. Tactical Planning & Control C. Long-term Strategic Planning & Control
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PART I
Functional Deparmentation & MIS
A. Organizational Structure B. Information support of a functional area: Marketing

MIS support to Management

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PART II
The Role of MIS The Evolving Systems Function Conclusion Introduction to Information Systems Development What is systems analysis and design? Tools for Systems Development
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The Physical Components of MIS

Hardware Software Database Personnel Procedures Z -1998 Figure 2.7

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A Networked Information System: Three-Tier Architecture

Corporate Databases Mainframe

Corporate Headquarters

Divisional Minicomputers with Divisional Databases

Marketing and Sales

Divisional Databases

Finance

Production

Regional Office Workstations Salesforce Notebooks Local Area Network: PCs with Local Databases
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Plant Minicomputers Telecommunications Link

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A Downsized Networked Information System: Client/Server Architecture

Database Server LAN Client PCs

WAN

Workgroup Server

Enterprise Computer (Central Server)

Client PCs

LAN

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Types of Organizational Information Systems

Z-1992 Table 3.2 p84 Z-1992 Fig 3.2 p85

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Information for Management

A. Attributes of quality information
Z-1992 Table 3.3 p 86; Z-1998 2.1

B. Internal vs external information

Internal- information for TPS, MRS, DSS, OIS External- information for DSS, EIS
Organizational advantage is gained from external data

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Information for Management

sources of data are: sales volume of competitor
Customer profiles Questionnaire data (focus groups) Demographic data

Z-1992 Table 3.4 p87; Z-1998 2.2 Boundary spanning role Daft and Weick Model

Time horizon: past, present & future

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Management Reporting Systems (MRS)

Objective: provide lower & middle management operational control information
monthly/weekly performance reports attendance reports sales reports inventory reports

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Management Reporting Systems (MRS)

A. Characteristics of MRS Designed by MIS, large & complex, multiple users & DB's Support highly structured queries, stable DO NOT necessarily support decision making; provide information for structure decisions Oriented on past & present Have limited analytical capabilities; summaries Report on internal organization operations

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Management Reporting Systems (MRS)

B. Reporting by MRS Reports produced from main DBMS and or local DB's
Scheduled periodic reports Exception reports Demand (Ad hoc) reports: limited queries or views of Data

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Decision Support Systems (DSS)

Support decision making process (unstructured & semi-structured decisions); facilitate a dialogue between user and system; the DB is generally an extract of the main DB
Developed by user and MIS Use application packages (123, etc) Generally very flexible (can be modified) Support the decision making process
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Decision Support Systems (DSS)

Project future states of the "world" Have analytical capabilities Use internal & external data Graphics capabilities

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The Structure of Decision Support Systems

Model Management Dialog Management User Decision Support System Data Management

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Internal and External Databases
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Executive Information Systems

Provide support for top executives and their aids. Unstructured and semi-structured decision making. Provide easy access to key information pertaining to the company and environment User "seductive" interfaces; Users' time is a premium Provide access to internal & external DB's What if capabilities abound Tailorable systems; cognitive styles

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Expert Systems
Knowledge based about a specific domain Use heuristic in the process New systems use neural nets Expert systems are knowledge based systems that imitate a reasoning process (heuristic) to suggest a solution within a specific domain

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The Structure of Expert Systems

Facts of the Case User Interface User Recommendation, Explanation

Explanation Facility Inference Engine

Expert System

Knowledge Base

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Informational Support of Management

Z-1998 Figure 2.14 p64

Gorry & Scott-Morton Planning: Setting measurable objectives for a period of time Control: Comparing actual to planned performance objectives and taking action in response to deviations and making adjustments to the plan
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A Summary of the Informational Support of Management

Greater Importance of External Information More Summarized Information Longer Time Horizon Less Structured Problems

EIS

DSS Strategic Management Tactical Management

MRS

Operations Management

Business Functions

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Informational Support of Management

Control information:
status or progress information warning information comfort information FEEDBACK information

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Levels of Planning & Control

A. Operations Planning & Control
Lower level management Highly structured Repetitive information Examples: Scheduling, inventory movement, aging reports, cash flow reports, etc. Involves examining the progress of planned events and dealing with contingencies if necessary

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Levels of Planning & Control

B. Tactical Planning & Control Middle management Semi-structured and structured The acquisition and implementation of resources to fit the strategic plan The financial plan for a new MIS system; The plan to match the labor requirements of an MRP II run; The resources required for the introduction of a new product Use DSS and GSS systems
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Levels of Planning & Control

C. Long-term Strategic Planning & Control Top Management Unstructured, semi-structured Examples: A diversification strategy downsizing Long-term market strategy Outsourcing EIS systems Internal and external data
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Functional Departmentation & MIS

A. Organizational Structure
Independent units: Strategic Business Units (SBU's) Each has their own business objectives Each SBU can be subdivided into functional departments or divisions
Figure Z-1992 3.10 p103 Figure Z-1992 3.11 p104

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Functional Departmentation & MIS

B. Information support of a functional area: Marketing
Marketing objective: Create a market and sell 4 P's Marketing MIS Hierarchy
Operational:
weekly scheduling of sales force and promotions order processing and customer follow-up

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Functional Departmentation & MIS

Tactical:
Sales force and product forecasting Promotional planning & budgeting Comparisons with industry standards Competitive performance analysis MEASUREMENT

Strategic:
What is our Market? How will we satisfy the customers needs? What does the customer want?

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Zwass-1992 , 3.5

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The Role of MIS

A. Introduction Information technology is partly responsible for the PARADIGM shift (A change, a new model,) from support to contributing to an organizations profitability. From efficient data processing shops to understanding the goals and objectives of an Organization to participating directly in the decision making and strategy formulation

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The Role of MIS

The role of the MIS Executive:
Systems Planning Data Center Management & Operations Management of Remote Equipment Identification of Opportunities for New Systems Systems Analysis, Design, and Construction of New Systems Distributed Systems: The migration of equipment to user areas and control (selection, purchase, and ownership). Standards sometimes set by IS department.
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The Role of MIS

Knowledge Users: Users take on increased responsibility. Identify applications, and conduct systems analysis and design. Better Applications: More specific, user friendly, functional, lower price, readily available, and self training. Results: less need for programmers, IS head count and budget decrease as a result. Outsourcing: Other, external organizations taking over the management and control of the data centers. Results: cost reductions head count reductions budget reductions.

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The Role of MIS

Sprague, 1993, 2.1, p37

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The Role of MIS

B. The CIO's Responsibilities 1. Understand the business: products, markets & customers 2. Establish credibility of the systems department: responsiveness to needs and requests 3. Increase the technological maturity of the organization: "Make it easier to take advantage of computer and telecommunications applications, Spend money, keep up with technology and applications

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The Role of MIS

4. Create a vision and sell it: Create a goal for the use of IT within the Organization and sell the goal to others (The Marketing of IT) 5. Implement a systems architecture that will support the vision and the company in the future. This is perhaps the most difficult responsibility (the Tech, and the Paradigm keep changing).

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The Role of MIS

C. Understand the Business Environmental Scanning: Find out what is happening in the market place Concentrate on the lines of the business Sponsor weekly briefings Attend industry meetings with line executives Read industry publications Hold informal listening sessions Become a partner with the line manager

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The Role of MIS

1. Environmental Scanning
External
industry background Pertinent government regulations History & framework

Internal
business goal and objectives major policies and practices The inputs, outputs and resources of the firm

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The Role of MIS

2. Concentrate on Lines of Business Treat inputs as a request from a customer and outputs as an order going to a customer. Example: GM sells cars, parts and financing. Each is a different line of the business, and each would required different systems. support current operations use system to influence future ways of working

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The Role of MIS

3. Sponsor Weekly meetings
IS departments need to understand the business and the operating departments need to understand the systems side. Meetings (Weekly, monthly, quarterly, as needed) can help inform and communicate to all members of the organization. This also help change the culture to one that is open and accessible to change.

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The Role of MIS

4. Attend meetings with line managers: PC EXPO 5. Read industry publications: PC Week, CIO, etc 6. Hold informal listening sessions: Manage by walking around 7. Become a partner with the line manager

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The Role of MIS

D. Establish Systems Department Credibility
Typically may MIS organizations have not delivered the systems on time built the "best" systems provided timely maintenance or enhancements controlled costs

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The Role of MIS

IS/IT must become responsive to the needs of the organization. How?
By providing systems on time the "best" system provide for maintenance and enhancements controlling costs

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The Role of MIS

E. Increase Technological Maturity
In a technologically mature organization both the organization and the employees are comfortable using and managing the technology.
Ease of use use in intended ways have a good attitude to it have control over it

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The Role of MIS

To get comfortable:
IS can train and educate provide flexible systems provide "Usable" systems

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The Role of MIS

F. Create a Vision of the Future Paradigm shift from reactive to proactive. Examples: order an elevator in one day design an build a house from a store reprice funds in an hour or less A vision is a statement of how someone believes the future will be or how he/she wants the future to be. 1. explore the present 2. look at tends and make projections

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The Role of MIS: Effective visions

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The Role of MIS

H. Why develop a vision? 1. To set a direction. providing internal stability for a firm in an unstable environment. 2. To help inspire people to take initiative Creating a Vision 1. Explore the Present look at prior experiences: ask questions fiddle around: experiment get participation: Communication clarify the vision over time: feedback Listen

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The Role of MIS

2. Scouting the future
study trends look for shifts in trends How? look everywhere convergent thinking (consensus, reduction in equivocality divergent thinking ability to map the future imagination and visioning

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The Role of MIS

3. Ideas for the Future- Dooley Group Conference
Decline in growth of cities Holograms to replace travel Small is better than big Personalized products Portable and personal 2-way communication Small powerful batteries Manufacturing in outer space A power shift from a manufacturing base to a KNOWLEDGE base Deterrence of the aging process.

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The Role of MIS

I. Implement an Information System Architecture
The IT infrastructure of an organization) Hardware, software, communications. Issues:
IT should focus on simplifying organizations IT should flatten hierarchies IT should shift emphasis on competition to simplification Link IT with business strategy
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The Role of MIS

J. Six Lessons about selling Selling is necessary to advance ideas Selling is how things get done in any enterprise 1. Understand your market place reduce uncertainty about the market place identify the need fill the need with a product 2. Listening is a Potent form of selling 3. Make your buyer successful living up to your commitments and making your customers successful

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The Role of MIS

4. Keep your buyer informed: Customer care 5. Bring in a spokesman if Necessary 6. Personal relationships are the key

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The Evolving Systems Function

C. Where are Systems Departments Headed?
1. One view from CSC (Computer Science Company) an outsource vendor
outsourcing is here IS manages become contracts administers outsourcing vendor will use "their" platforms IS people are either outplaced or absorbed

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The Evolving Systems Function

Strategic alignment
lower level empowerment Teams developing the strategy (Groups)

The questions that must be asked is: What is need to support the business? How will the business be supported?

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The Evolving Systems Function

2. Another point of view (A panel discussion)
The user has/will the IS power The Guild system An infrastructure for both central and de-central control Usability, and satisfaction Leadership and direction guidance and coordination

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The Evolving Systems Function

D. Building Relationships with Line Departments
1. Redefining Roles and Skills
development support business support technical services business services

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The Evolving Systems Function

2. Managing Risks
IS projects are becoming more complex, widespread, and Expensive IS personnel are beings distributed- central systems, division systems and functional systems. Thus, top management must assume responsibility They are more conservative, cautious, less knowledgeable

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3.13 The Evolving Systems Function

3. Building Relationships
Because of costs- build external relationships with vendors, consultants, academics Because of complexity- build internal relationships with senior management Because of competition- build relationships with usersusability and satisfaction.

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Conclusion
THE TRANSFORMATION OF IS "we used to do it to them:" the systems groups (EDP) required end users to obey strict rules for getting changes made to the systems, submitting job requests, etc.
Mainframes, transmittals, batch processing, punch cards, data entry clerks EFFICIENCY
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Conclusion
"Next, we did it for them:" systems groups moved to service. Mainframes, large mini's with custom systems built by IS without user involvement EFFECTIVENESS, Efficiency "Now, we do it with them:" the partnership Mini's, PC, Windows, application packages USABILITY, Effectiveness, Efficiency

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Conclusion
"We are moving toward teach them how to do it themselves:"
UNIX environments, work stations, PC, LANs, application packages SATISFACTION, USABILITY, Effectiveness, efficiency

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