Unit II. Information Systems in Business (Part I - TPS MIS) 2024.pdf

PHRM 109–Management Information System Unit II. Information Systems in Business: Transaction Processing and Management Information Systems (Part I) DON MCARTHNEY C....

PHRM 109–Management Information System Unit II. Information Systems in Business: Transaction Processing and Management Information Systems (Part I) DON MCARTHNEY C. TUGAOEN Business Administration Department College of Business, Economics and Accountancy Mariano Marcos State University Contents UNIT II – INFORMATION SYSTEMS IN BUSINESS (PART I) A. Information system and its role in business B. Computer-based information system and their role in communication and decision-making 1. Types of CBIS – definition of each type 2. Levels of management and the CBIS C. Transaction processing system (TPS) 1. Definition/types 2. Traditional/Manual vs TPS 3. Uses/Functions of TPS 4. Objectives of TPS 5. Characteristics of TPS 6. Methods of TPS 7. Batch Processing 8. On-line Transaction Processing 9. Most common TPS in business organizations Contents UNIT II – INFORMATION SYSTEMS IN BUSINESS (PART I) D. Management Information System 1. MIS – definition 2. MIS differentiated with TPS (according to use, human intervention, automation, others) 3. Uses of MIS 4. Outputs of MIS 5. Common MIS in business Desired Learning Outcomes At the end of the unit, the student is expected to: 1. discuss the role of information systems in business organization; 2. discuss the different types of computer-based information systems in business; and 3. Explain transaction processing system, management information system, decision support system and group decision support system, and office automation system.  Introduction What do you think an information system is? Introduction ❑ You've likely used computer-based information systems without even realizing it. From the moment you sit down at your desk, boot up your computer, or check your smartphone, you're interacting with them. ❑ These systems are essential, forming the backbone of our daily tasks, both in personal and professional spheres. ❑ Computer-based information systems are the crux of the modern workplace, streamlining operations, aiding decisions, and enhancing productivity Information System ❑ “Information systems (IS) is the study of complementary networks of hardware and software that people and organizations use to collect, filter, process, create, and distribute data.” ❑ “Information systems are combinations of hardware, software, and telecommunications networks that people build and use to collect, create, and distribute useful data, typically in organizational settings.” ❑ “Information systems are interrelated components working together to collect, process, store, and disseminate information to support decision making, coordination, control, analysis, and visualization in an organization.” Main Aim of Information System “The main aim of an Information System (IS) is to support and enhance the operations, management, and decision-making functions in an organization.” The Main Components of an information system HARDWARE DATA SOFTWARE COMPUTER-BASED INFORMATION SYSTEM The Main Components of a CBIS PEOPLE PROCEDURES/PROCESS Components of Information System HARDWARE Information systems hardware is the part of an information system you can touch – the physical components of the technology. Computers, keyboards, disk drives, iPads, and flash drives are all examples of information systems hardware. The physical equipment and computing devices used for input, storage, processing, output, and telecommunications Components of Information System SOFTWARE ❑ Software is a set of instructions that tells the hardware what to do. Software is not tangible – it cannot be touched. When programmers create software programs, what they are really doing is simply typing out lists of instructions that tell the hardware what to do. ❑ There are several categories of software, with the two main categories being operating- system software, which makes the hardware usable, and application software, which does something useful. Examples of operating systems include Microsoft Windows on a personal computer and Google’s Android on a mobile phone. Examples of application software are Microsoft Excel and Angry Birds. Components of Information System SOFTWARE ❑Operating systems manage the hardware and create the interface between the hardware and the user. The operating system provides several essential functions, including: ❑ managing the hardware resources of the computer; ❑ providing the user-interface components; ❑ providing a platform for software developers to write applications. ❑Application software is, essentially, software that allows the user to accomplish some goal or purpose. Components of Information System Microsoft Office Suite: Microsoft Word: Used for word processing, creating documents, and writing reports. Microsoft Excel: A spreadsheet program for data analysis, financial modeling, and creating charts. Microsoft PowerPoint: Used for creating presentations and slideshows. Email and Communication Software: Microsoft Outlook: An email client and calendar application for managing emails, appointments, and tasks. Slack: A team messaging platform for real-time communication and collaboration. Zoom: Video conferencing software for online meetings and webinars. Examples of softwares 1.Human Resources Software: 1. Workday: A cloud-based HR and finance system for managing HR processes and employee data. 2. BambooHR: HR software for small to medium-sized businesses to manage HR functions. 2.Data Analytics and Business Intelligence Tools: 1. Tableau: Data visualization and business intelligence software for creating interactive dashboards. 2. Power BI: Microsoft's business analytics service for data visualization and sharing insights. 3.Video Editing and Graphic Design Software: 1. Adobe Creative Cloud: Includes tools like Photoshop, Illustrator, and Premiere Pro for graphic design and video editing. 2. Canva: Online design platform for creating graphics, presentations, and marketing materials. 4.Learning Management System (LMS): 1. Moodle: An open-source LMS for creating, managing, and delivering online courses and training materials. 2. Canvas: A cloud-based LMS used in educational institutions and corporate settings for course management. Components of Information System DATA ❑ The third component is data. You can think of data as a collection of facts. For example, your street address, the city you live in, and your phone number are all pieces of data. ❑ Like software, data is also intangible. By themselves, pieces of data are not really very useful. But aggregated, indexed, and organized together into a database, data can become a powerful tool for businesses. ❑ Organizations collect all kinds of data and use it to make decisions. These decisions can then be analyzed as to their effectiveness and the organization can be improved. Components of Information System PEOPLE ❑People are involved in information systems in just about every way you can think of: people imagine information systems, people develop information systems, people support information systems, and, perhaps most importantly, people use information systems. Creator of Information Systems - designing, System Analyst developing, and building information systems. Programmer Computer engineer Information-Systems Operations and Administration Computer Operator - Involved in the day-to-day operations and Database administrator administration of IT. These people must keep the Help-Desk/Support Analyst systems running and up-to-date so that the rest of the organization can make the most effective use of these resources. Information Systems Users - This group represents a Most employees very large percentage of the people involved. If the user is not able to successfully learn and use an information system, the system is doomed to failure. Components of Information System PROCESS ❑A process is a series of tasks that are completed in order to accomplish a goal. A business process, therefore, is a process that is focused on achieving a goal for a business. ❑The "process" component in Information Systems (IS) refers to the set of procedures, rules, and routines that dictate how the system operates, how data is collected and processed, and how information is produced and disseminated Why process is crucial ✓ Structured Workflow: Ensures tasks are organized and consistent, defining task sequences and responsibilities. ✓ Data Integrity and Quality: Guarantees accurate data capture, correct processing, and secure storage, preserving data quality. ✓ Standardization: Ensures consistent task performance, crucial for large organizations with multiple users. ✓ Efficiency and Productivity: Streamlines operations, reduces ambiguity, and accelerates decision-making. ✓ Compliance and Regulations: Ensures IS operations align with industry-specific data, security, and privacy regulations. ✓ User Guidance: Provides a roadmap for end-users on system usage, enhancing task completion efficiency. ✓ Security: Safeguards against threats with procedures for backup, authentication, and recovery. ✓ Integration and Interoperability: Dictates how the IS interacts with other systems, ensuring seamless communication and data sharing.  Hardware provides the physical tools or equipment needed for an Hardware information system to operate. It includes things like computers, servers, and devices. Software offers the functionality or capabilities that allow the hardware Software to perform tasks. It's like the programs or apps that give a computer its abilities. Data serves as the input or information that the system processes. It Data can be raw data, like numbers and text, or processed information, like reports. People People are the users and managers of the system. They interact with the software and hardware to make the system work effectively. Processes define how the components work together. They are like the Process instructions or rules that ensure data is processed correctly, software functions are executed, and users can use the system smoothly.  Information systems should be viewed the same as any other system The solar system A railway system An ecological system An economic System (The European Community) They are: “a group of independent but interrelated elements comprising a unified whole” ALL the components work together toward a single goal  Hardware provides the tools, software adds functionality, data serves as input, people use the system, and processes define how everything works together to achieve the system's goals. It's like a well-choreographed performance where each component plays a specific role to make the show a success. Hardware EDUCATION Software COFFEE SHOP Data GROCERY People Process HR DEPARTMENT Aren’t Information Systems and Information Technology the same thing? Information all components and resources Systems (IS): necessary to deliver information and information processing functions to the organization Information various hardware and software components Technology (IT): necessary for the system to operate  A. Information System and its Role in Business Information System and its Role in Business Decision Support: IS offers data for informed decision-making, from daily operations to strategic planning. Operational Efficiency: IS automates tasks, streamlines processes, and boosts workflow efficiency. Customer Relationship Management (CRM): IS enhances understanding and management of customer needs for better service. Supply Chain Management: IS integrates suppliers, manufacturers, and retailers for timely production and distribution. Competitive Advantage: IS fosters innovation, streamlines operations, and improves customer service. Information System and its Role in Business Real-time Monitoring: IS enables real-time operations monitoring for swift issue resolution. Financial Management: IS tracks finances accurately, aiding planning and management. Collaboration and Communication: IS supports internal collaboration and external communication. Data Analytics and Insights: IS analyzes vast data to derive valuable insights. Security and Compliance: IS ensures data security and regulatory compliance. Innovation: IS empowers innovation in products, services, and operations. 4 Major types of Information Systems  Let’s first talk about the fundamental roles of management Anthony’s Hierarchy of Management Focus is on the Long term future Top (e.g., New Products) Mgt. (CEO) Middle or Focus is on the short term future Tactical Mgt. (e.g., Budgeting) (Plant Manager) Operational Focus is on the present Management (e.g., Meeting Production Schedule) (Production Manager) HIERARCHY OF INFORMATION SYSTEM INFORMATION EXECUTIVE SUPPORT SYSTEM Executive Information Systems are strategic-level information systems that are found at the top of the Top level Pyramid. They help executives and senior managers analyze the environment in which the organization operates, to management identify long-term trends, and to plan appropriate courses of action. DECISION SUPPORT SYSTEM a set of related computer programs and the data requiredto assist with analysis and decision-making within an organization. Middle level MANAGEMENT INFORMATION SYSTEM management a computerized information-processing system designed to support the activities of company or organizational management. TRANSACTION PROCESSING SYSTEM First level an information processing system for management business transactions involving the collection, modification DATA and retrieval of all transactiondata. TRANSACTION PROCESSING SYSTEM Purpose: TPS are designed to handle a large volume of routine, recurring transactions. They are the backbone of an organization's operations. Decision Type: Small, operational decisions. Example: Consider a retail business. Every time a customer makes a purchase, the sale is recorded in a TPS. This system will handle inventory updates, sales recording, and receipt generation. These are routine, daily transactions. MANAGEMENT INFORMATION SYSTEM Purpose: MIS take data from TPS and compile it into summaries and reports. They provide regular, routine, and specific information to middle managers. Decision Type: Medium-level, tactical decisions. Example: Using our retail business scenario, an MIS might generate a monthly sales report showing which products sold best, allowing managers to make decisions about future stock orders or promotional activities. DECISION SUPPORT SYSTEM Purpose: DSS are interactive systems designed to assist managers in making individual or semi-structured decisions. They often use advanced analytical models and data visualization. Decision Type: Semi-long term, strategic and tactical decisions. Example: If the retail business is considering opening a new store, a DSS might help analyze various factors like potential locations, predicted sales, and investment required, helping the management make an informed decision. EXECUTIVE INFORMATION SYSTEM Purpose: EIS are tailored for senior executives to provide them with data and insights relevant to strategic decision-making. These systems offer a high-level view of the organization through dashboards and summaries. Decision Type: Long-term, strategic decisions. Example: The top executives of the retail chain might use an EIS to analyze market trends, competitor performance, and long-term financial projections. This could inform decisions like entering a new market, mergers, or significant investments. Comparison of the 4 Information Systems Information Business Personal Definition Goals Purpose HRM Example System Example Example Systems designed Logging daily TPS Capture real- Recording every Recording an to handle a large Handle daily meals and (Transaction time sale in an e- employee's leave volume of routine, operations exercise in a Processing transactional commerce request in the HR recurring efficiently health tracking System) data business. system. transactions. app. Compiling Reviewing a Generating a MIS Systems that Provide Assist in tactical monthly sales monthly monthly report (Management transform raw data regular, decision-making reports in an e- summary of diet on employee Information from TPS into structured and performance commerce and exercise attendance and System) structured reports. information review business. habits. turnover rates. Comparison of the 4 Information Systems Information Business Personal Definition Goals Purpose HRM Example System Example Example Evaluating the potential impact Analyze Analyzing Deciding on a Interactive systems of a new flexible DSS (Decision complex data Assist in making potential demand new diet plan and using advanced work policy using Support sets, model complex, often for a new product exercise regime analytical models to employee System) potential strategic decisions category in an e- using a health aid decision-making. feedback and scenarios commerce store. app's projections. productivity metrics. CHRO CEO deciding on Committing to a Systems tailored for strategizing a five- international long-term health EIS (Executive senior executives, Provide a Inform long-term, year talent expansion based philosophy like Information providing data and holistic, high- strategic decision- acquisition and on annual veganism after System) insights for strategic level overview making retention plan performance and years of health decision-making. based on company market trends. tracking. and industry data.  System Inputs Processing Outputs Sales orders Data capture Sales receipts TPS (Transaction Processing System) Purchase orders Data validation Inventory reports Time cards Data storage Paychecks Data sorting Summary reports Data from TPS MIS (Management Information System) Data summarization Performance reports Business models Data aggregation Periodic dashboards Data from MIS Data analysis Decision analyses DSS (Decision Support System) Analytical models Scenario testing Simulation results External Data Forecasting Predictive models Data visualization Data from DSS Executive dashboards High-level EIS (Executive Information System) Strategic Data Strategic reports aggregation Market trends Trend analyses Strategic analysis  C. Transaction Processing System (TPS) TRANSACTION PROCESSING SYSTEM A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies, and retrieves the daily transactions of an organization. TPS ensures efficient and accurate processing of large volumes of repetitive data. It provides the foundation for all other systems in an organization, capturing crucial business activities such as sales, receipts, deposits, and payroll. As the backbone of routine operations, TPS supports everyday business tasks and serves as a repository of valuable transactional data for higher-level systems. TRANSACTION PROCESSING SYSTEM Primary Objectives of TPS 1.Speed and Efficiency: Fast transaction processing for timely responses. 2.Accuracy: Ensure error-free transaction processing. 3.Reliability: Consistent performance, even under heavy loads. 4.Consistency: Maintain data integrity across transactions. 5.Data Security: Protect transaction data from breaches or loss. 6.Audit Trail: Log transactions for compliance and analysis. 7.Processing Mode: Support for real-time or batch processing. 8.Concurrent Processing: Handle multiple transactions at once. 9.Recovery Mechanisms: Restore data or rollback transactions after failures. 10.User-friendly Interface: Intuitive design for efficient data input and retrieval. TRANSACTION PROCESSING SYSTEM General View of a TPS TRANSACTION PROCESSINGSYSTEM Simplified View of TPS TRANSACTION PROCESSING SYSTEM Data Processing Activities Common to TPS Data collection Data manipulation Data editing Data storage Data correction Document production TRANSACTION PROCESSING SYSTEM CHARACTERISTICS OF TPS Performance Continuous availability Data integrity Ease of use Modular growth & Controlled Processing TRANSACTION PROCESSING SYSTEM QUALIFIERS OF TRANSACTION PROCESSING Example in HR TPS Atomicity (A): 1. Transaction: Updating an employee's salary in the payroll system. 2. Atomicity in Action: Atomicity ensures that if there's an issue during the salary update, such as an incorrect tax calculation, the entire transaction is rolled back. In this case, the salary update and tax calculation are treated as a single unit. If any part fails, both are undone to maintain data consistency. Consistency (C): 1. Transaction: Processing employee bonuses. 2. Consistency in Action: Consistency ensures that before awarding a bonus, the system checks if the employee is eligible based on predefined criteria, such as performance metrics. If an employee doesn't meet the criteria, the bonus transaction is denied, preserving the integrity of the HR data. Example in HR TPS Isolation (I): 1. Transaction: Approving leave requests. 2. Isolation in Action: Isolation ensures that approving one employee's leave request does not interfere with another employee's request. Even if multiple HR personnel are handling leave requests concurrently, the TPS ensures that each request is processed as if it were the only one, avoiding conflicts. Durability (D): 1. Transaction: Updating employee attendance records. 2. Durability in Action: Durability ensures that once attendance records are updated and committed, they are permanent and won't be lost, even in the event of a system crash or power outage. Employee attendance data remains intact and recoverable when the system is back online. TRANSACTION PROCESSING SYSTEM Methods of Processing transactions Manual TPS Computerized TPS TRANSACTION PROCESSING SYSTEM Types of TPS Batch transaction processing Real-time transaction processing or online transaction processing Online delayed transaction processing TRANSACTION PROCESSING SYSTEM 1) Batch Transaction Processing Examples: Check clearing, bill generation, credit card billing In batch processing, transactions are collected over a period and processed together in a single run. Instead of handling each transaction as it comes in real- time, the system waits until it has accumulated a "batch" of transactions and processes them all at once. TRANSACTION PROCESSING SYSTEM 2) Real-time Processing or Online Transaction Processing Examples: online reservations, bank transactions, such as deposits, and withdrawals, point-of-sale terminals Real-time processing involves handling each transaction or data input immediately as it's received, without any delay, ensuring instantaneous feedback or action. TRANSACTION PROCESSING SYSTEM 3) Online Delayed Transaction Processing It is a compromise of the batch and online transaction processing when transactions are entered in the computer as they occur but are not processed immediately. Examples: Credit card authorization hold Hotel reservations with payment at Check-out Mobile payment bill settlement Subscription services (trial periods) Ride-sharing (Uber/Grab/Angkas) TRANSACTION PROCESSING SYSTEM Most common used TPS in Business 1) Customer Integrated System (CIS) It is an extension or hybrid of TPS that places technology in the hands of the customers and allows them to process their own transactions. Examples: Online shopping and purchasing (e.g. Lazada, Zalora) ATMs and online banking (e.g. LBP iAccess) Universities and College’s online services. (e.g. MMSU’s enrollment system) TRANSACTION PROCESSING SYSTEM Most common used TPS in Business 2) Accounting Information System or Financial Information System a) Order Entry Processing System It is designed to process customer’s order. Orders come from variety of sources such as mails, fax, and phone from customers who are ordering on demand basis. It is an important source of sales and management information. b) Point of Sale System Small computer system that captures order of sales data while transaction is occurring. Computerized network operated by a main computer and linked to several checkout terminals. Each has a small memory that stores item identification, prices and tax rates programs. TRANSACTION PROCESSING SYSTEM Most common used TPS in Business 2) Accounting Information System or Financial Information System c) Receiving and Shipping Whenever goods are received and shipped, transactions are created. If items are shipped, a bill is issued, inventories are updated and general ledger is modified. If items are received, a confirmation is generated to accounts payable so payments can be made and inventories updated. c) Accounts Receivable System Manages customer purchase records on account, payments and account balances. TRANSACTION PROCESSING SYSTEM Most common used TPS in Business 2) Accounting Information System or Financial Information System e) Accounts Payable System Handles payments to suppliers f) General Ledger System Integrates transaction data from the other major processing subsystems. TRANSACTION PROCESSING SYSTEM Most common used TPS in Business 2) Accounting Information System or Financial Information System g) Payroll System Used to produce paychecks for employees and data for tax purposes. h) Inventory Management System Used to monitor the quantities of inventories available for use or for sale and help ensure proper stock levels are maintained. TRANSACTION PROCESSING SYSTEM Most common used TPS in Business 2) Accounting Information System or Financial Information System i) Fixed Assets Management Used to monitor the value of fixed assets of the business. j) Periodic Reports and Statement Generation Used to generate reports and statement in an given specific period such as daily, weekly, monthly or annually. TRANSACTION PROCESSING SYSTEM Most common used TPS in Business 3) Human Resource Information System Software or online solution for data entry, data tracking, and data information needs of the HR and payroll management. 4) Manufacturing Information System Used for scheduling productions Tracking movement of work in process Tracking receipts of materials  D. Management Information System (MIS) MANAGEMENT INFORMATIONSYSTEM An MIS provides managers with information and support for effective decision making, and provides feedback on daily operations Output, or reports, are usually generated through accumulation of transaction processing data Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization Management Information Systems (MIS) are integral in organizations for managing and analyzing information to make well-informed business decisions. They combine data from various sources and present it in a comprehensible format, such as dashboards or reports. MANAGEMENT INFORMATIONSYSTEM Characteristics of MIS Provides reports with fixed and standard formats (Hard-copy and soft-copy reports) Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users MANAGEMENT INFORMATIONSYSTEM MIS and Web Technology Data may be made available from management information systems on a company’s intranet Employees can use browsers and their PC to gain access to the data MANAGEMENT INFORMATIONSYSTEM Transaction Processing System Management Information System Collects, store, modifies between Differences and retrieves all M ISHelps middle level management in TPS and information about a transaction. monitoring, controlling, decision making and administrative activities. Transaction is referred to any event that Provides manager with the current generates or modifies the stored performance of the organization. information Tend to perform routine operations and Managers makes use of the information serve as a foundation for other systems. to monitor and control business and to devise strategies to improve the performance in the future MANAGEMENT INFORMATIONSYSTEM Transaction Processing System Management Information System IS A type of information system that Usually attached, and part of a manages data created in bigger TPS, and exists to give everyday operations that include management reports of storing, formatting, processing, activities. retrieving, and creating some aggregate data Records daily and routine activities. Uses outputs of a TPS Serves supervisory level management Focused on internal events in a organization. Becomes a major source of data for Also called administrative system MIS (used for administration) or reporting system (main function) MANAGEMENT INFORMATIONSYSTEM Outputs of MIS MANAGEMENT INFORMATIONSYSTEM Outputs of MIS 1) Scheduled reports Produced periodically, or on a schedule (daily, weekly, monthly) Daily Sales Detail Report Prepared: 08/10/xx Order Customer Sales Ship # ID Rep ID Date Quantity Item # Amount P12453 C89321 CAR 08/12/96 144 P1234 $3,214 P12453 C89321 CAR 08/12/96 288 P3214 $5,660 P12453 C03214 GWA 08/13/96 12 P4902 $1,224 P12455 C52313 SAK 08/12/96 24 P4012 $2,448 P12456 C34123 JMW 08J/13/96 144 P3214 $720 MANAGEMENT INFORMATIONSYSTEM Outputs of MIS 2) Key-indicator report Summarizes the previous day’s critical activities Typically available at the beginning of each day Daily Sales Key Indicator Report This Last Last Month Month Year Total Orders Month to Date $1,808 $1,694 $1,014 Forecasted Sales for the Month $2,406 $2,224 $2,608 MANAGEMENT INFORMATIONSYSTEM Outputs of MIS 3) Demand report Gives certain information at a manager’s request Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx Sales Rep ID Amount CAR $42,345 GWA $38,950 SAK $22,100 JWN $12,350 MANAGEMENT INFORMATIONSYSTEM Outputs of MIS 4) Exception report Automatically produced when a situation is unusual or requires management action Daily Sales Exception Report – ORDERS OVER $10,000 Prepared: 08/10/xx Order Customer Sales Ship # ID Rep ID Date Quantity Item # Amount P12453 C89321 CAR 08/12/96 144 P1234 $13,214 P12453 C89321 CAR 08/12/96 288 P3214 $15,660 P12453 C03214 GWA 08/13/96 12 P4902 $11,224 MANAGEMENT INFORMATIONSYSTEM Outputs of MIS 5) Drill Down Report Provides detailed data about a situation. Earnings by Quarter (Millions) Actual Forecast Variance 2ND Qtr 1999 $12.6 $11.8 6.8% 1st Qtr 1999 $10.8 $10.7 0.9% 4th Qtr 1998 $14.3 $14.5 -1.4% 3rd Qtr 1998 $12.8 $13.3 -3.0% MANAGEMENT INFORMATIONSYSTEM MIS Used in Business Organization MANAGEMENT INFORMATIONSYSTEM 1) Financial MIS Provides financial information to all financial managers within an organization. MANAGEMENT INFORMATIONSYSTEM Inputs to the Financial Information System 1) Strategic plan or corporate policies Contains major financial objectives and often projects financial needs. 2) Transaction processing system (TPS) Important financial information collected from almost every TPS - payroll, inventory control, order processing, accounts payable, accounts receivable, general ledger. External sources:Annual reports and financial statements of competitors and general news items. MANAGEMENT INFORMATIONSYSTEM Financial MIS Subsystems and Outputs Financial subsystems Profit/loss and cost systems Auditing Internal auditing External auditing Uses and management of funds MANAGEMENT INFORMATIONSYSTEM 2) Manufacturing MIS A management information system that is targeted for use anywhere production is taking place. Modern management information systems are generally computerized and are designed to collect and present the data which managers need in order to plan and direct operations within the company. MANAGEMENT INFORMATIONSYSTEM 2) Manufacturing MIS MANAGEMENT INFORMATIONSYSTEM Inputs to the Manufacturing MIS 1) Strategic plan or corporate policies. 2) The TPS: Order processing Inventory data Receiving and inspecting data Personnel data Production process 3) External sources MANAGEMENT INFORMATIONSYSTEM Manufacturing MIS Subsystems and Outputs Subsystem Outputs Production Planning and Scheduling Subsystem - This Production Schedules: Detailed schedules indicating subsystem focuses on creating production plans, when each manufacturing task should occur. scheduling manufacturing processes, and allocating Resource Allocation Reports: Information on the resources efficiently. allocation of machinery, labor, and materials for upcoming production runs. Capacity Utilization Metrics: Metrics showing how effectively manufacturing capacity is being used. Quality Control and Assurance Subsystem - This Quality Inspection Reports: Reports detailing the results subsystem is responsible for monitoring and maintaining of inspections at various stages of production. product quality throughout the manufacturing process. Defect Tracking Data: Data indicating the frequency and nature of defects identified during production. Quality Performance Metrics: Metrics showing overall quality performance and trends. MANAGEMENT INFORMATIONSYSTEM Manufacturing MIS Subsystems and Outputs Subsystem Outputs Inventory Management Subsystem-This subsystem Inventory Reports: Reports showing current inventory tracks the levels, locations, and movement of raw levels, reorder points, and stock movement. materials, work-in-progress (WIP), and finished goods. Materials Requirement Plans (MRPs): Plans outlining the materials needed for upcoming production runs. Stock Turnover Analysis: Metrics indicating how quickly inventory is being used or sold. Maintenance and Equipment Management Subsystem- Maintenance Schedules: Schedules detailing when This subsystem manages the maintenance of equipment should undergo preventive maintenance. manufacturing equipment and ensures their reliability. Equipment Performance Logs: Records of equipment downtime, repairs, and maintenance activities. Predictive Maintenance Alerts: Notifications indicating when equipment is likely to require maintenance based on data analysis. MANAGEMENT INFORMATIONSYSTEM Manufacturing MIS Subsystems and Outputs Subsystem Outputs Supplier and Procurement Management Subsystem - Supplier Scorecards: Reports evaluating supplier This subsystem manages relationships with suppliers, performance based on factors like delivery reliability and procurement processes, and supplier performance. quality. Purchase Orders: Documentation of orders placed with suppliers for raw materials or components. Supplier Performance Metrics: Metrics indicating how well suppliers are meeting agreed-upon standards. Environmental and Sustainability Tracking Subsystem - Carbon Emission Reports: Reports on the carbon This subsystem monitors environmental impact and footprint of manufacturing operations. sustainability efforts within manufacturing processes. Sustainability Metrics: Metrics tracking resource efficiency and sustainability goals. Compliance Documentation: Records demonstrating adherence to environmental regulations. MANAGEMENT INFORMATIONSYSTEM 3) Marketing MIS Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness MANAGEMENT INFORMATIONSYSTEM Inputs to Marketing MIS 1) Strategic plan and corporate policies 2) The TPS Sales data, CRM data, Inventory data 3) External sources: The competition – competitors products, strategies, market positions The market - External sources related to the market include market research reports, industry publications, and consumer trends. MANAGEMENT INFORMATIONSYSTEM Marketing MIS Subsystems and Outputs Subsystems Outputs Market Research -This subsystem focuses on gathering Market Research Reports: Detailed reports on market and analyzing data about markets, customers, and trends, consumer behavior, and competitive analysis. competitors to support marketing decision-making. Customer Segmentation: Identification of customer segments based on demographics, psychographics, and buying behavior. Competitor Profiles: In-depth profiles of competitors, including their strengths, weaknesses, and market positioning. Marketing Intelligence - This subsystem continuously Competitive Analysis Reports: Documents that compare collects and evaluates information from external a company's performance or offerings against sources to track and analyze market trends, competitors. competition, and other environmental factors. Market Trend Forecasts: Predictive analyses on potential future market trends. Alerts: Notifications about important market shifts or competitor moves. MANAGEMENT INFORMATIONSYSTEM Marketing MIS Subsystems and Outputs Subsystems Outputs Product Subsystem: It focuses on Product Performance Reports: Documents detailing specific metrics gathering and analyzing information such as sales, inventory levels, and customer feedback. related to the lifecycle of a product, Example: A monthly sales report for a particular product line. including sales figures, customer Lifecycle Analysis: Insights into the current stage of a product's life feedback, and inventory levels. (e.g., introduction, growth, maturity, or decline). Example: An analysis indicating that a product is in its maturity phase with slowed growth. Pricing Subsystem-This subsystem Comparative Pricing Charts: Tables or graphics juxtaposing a collects and analyzes data related to company's prices against those of competitors. product pricing, cost structures, and Example: A chart showcasing the price of a product across competitor pricing to inform pricing different brands. decisions. Price Elasticity Models: Predictive models showcasing how demand. might change with different pricing strategies. Example: A model predicting a 10% drop in sales for a 5% price increase. MANAGEMENT INFORMATIONSYSTEM Marketing MIS Subsystems and Outputs Subsystems Outputs Distribution Subsystem-It deals with data Distribution Efficiency Reports: Documents detailing the performance regarding product distribution, including of distribution channels in terms of metrics like shipping times and channel effectiveness, retailer costs. Example: A report showing average delivery times for various performance, and warehouse efficiency. shipping partners. Distributor Performance Evaluations: Assessments of how individual distributors or retailers perform in terms of sales, returns, and other metrics. Example: A quarterly performance scorecard for distributors. Promotion Subsystem-This subsystem Campaign Performance Reports: Detailed analyses of promotional focuses on data related to marketing campaign metrics like reach, engagement, and conversion rates. promotions, including ad campaign Example: A post-campaign report showcasing online ad views, effectiveness, reach, and customer click-through rates, and purchases made. engagement.. A/B Testing Results: Comparisons of different promotional strategies to determine which is more effective. Example: Results showing that Ad Version A had a higher conversion rate than Ad Version B.  MANAGEMENT INFORMATIONSYSTEM 4) Human Resource MIS Concerned with all of the activities related to employees and potential employees of the organization MANAGEMENT INFORMATIONSYSTEM Inputs to the Human Resource MIS 1. Strategic plan or corporate policies 2. The TPS: Payroll data Order processing data Personnel data 3. External sources - Industry salary surveys, labor laws and regulations MANAGEMENT INFORMATIONSYSTEM Human Resource MIS Subsystems and Outputs Subsystems Outputs Recruitment and Selection Digital job postings and advertisements. Subsystem:This subsystem Databases of applicants and their resumes. automates the process of job Automated screening tools identifying potential matches. postings, receiving applications, Interview scheduling and feedback tracking. shortlisting candidates, and managing interview schedules. Training and Development Training schedules and online modules. Subsystem - Focuses on the Employee skill assessment tools. management of employee skill Reports on training program effectiveness. development, training programs, and Employee progression and certification tracking. performance evaluations. MANAGEMENT INFORMATIONSYSTEM Human Resource MIS Subsystems and Outputs Subsystems Outputs Compensation and Benefits Payroll processing reports. Subsystem: Manages employee Benefits distribution tracking. remuneration details, including Bonus and incentive calculations. salaries, bonuses, benefits, and Total compensation statements for employees. other perks. Performance Appraisal Digital performance review forms. Subsystem: Performance metrics and KPI dashboards. Facilitates the process of Historical performance tracking for each employee. evaluating employee Feedback and recommendation reports. performance, setting objectives, and providing feedback. MANAGEMENT INFORMATIONSYSTEM Human Resource MIS Subsystems and Outputs Subsystems Outputs Employee Relations Subsystem: Employee satisfaction surveys and results. Manages interactions with Grievance tracking and resolution reports. employees, addresses grievances, Internal communication tools and feedback mechanisms. and fosters a positive working environment. HR Analytics Subsystem: Utilizes Turnover and retention reports. data-driven tools to analyze and Time-to-hire and recruitment source effectiveness analyses. provide insights on various HR Training ROI (Return on Investment) reports. metrics, such as turnover rates, Predictive analytics on staffing needs. recruitment efficiency, and training outcomes. MANAGEMENT INFORMATIONSYSTEM Other MIS Used by Business Organizations 1) Accounting MIS Provides aggregated information on accounts payable, accounts receivable, payroll, and other applications. 2) Geographic information systems (GISs) Enables managers to pair pre-drawn maps or map outlines with tabular data to describe aspects of a particular geographic region. References 1. FitzGerald, Jerry, and Alan Dennis. Business Data Communications and Networking, 6th ed. New York: John Wiley & Sons, 1999. Hutchinson, Sarah E., and Stacey C. Sawyer. 2. Computers, Communications, and Information: A User's Introduction, 7th ed. Boston: Irwin McGraw-Hill, 2000. 3. Jackson, Maggie. "Companies Seek to End Their Offices' Paper Chase; Technology: Pioneering Businesses Go Electronic to Raise Productivity." Los Angeles Times, July 27, 1998. 4. Laudon, Kenneth C., and Jane Price Laudon. Essentials of Management Information Systems: Transforming Business and Management, 3rd ed. Upper Saddle River, NJ: Prentice Hall, Inc., 1999. 5. Sipress, Alan. "Initiative to Encourage Telecommuting; Regional Goal Is to Double Number of People Working From Home or in Centers." Washington Post, April 12, 2000. 6. https://www.reference.com/technology/computer-based-information-system-2b71b55a1d045af 7. https://youtu.be/Ogsl1ZdT7ic 8. http://searchdatamanagement.techtarget.com/feature/Understanding-and-comparing-six-types-of-processing- systems 9. study.com/.../transaction-processing-systems-tps-manual-and-automated-systems.html 10. MIS: www.cse.yorku.ca/~mack/1010/1010-Chapter9.ppt