Information systems v. data processing systems

1
Information systems v. data processing systems

• Data on items sold is collected by the data
  processing system and stored on a computer file
• An operational information system then reads this
  data and produces a list of items that need
  reordering
• A management information system may analyse the
  sales data to highlight sales trends and use this
  information to plan a new marketing campaign,
  adjust price levels or plan an increase or
  reduction in production facilities.

2
Purpose of a MIS System

• Help managers with decision making
• Warn managers when something needs action stock
  low
• Produce summary reports (actual vs budget sales)
• Analyse and report on data over a period of time
  (showing sales trends)
• Enable a manger to perform what if calculations
  to forecast likely affect of policy decisions
  (price changes, additional staff)

3
The role of a Management Information System
4
What managers do

• The 5 classical functions of managers
• Planning
• Plan the direction a company is to take
• whether to diversify
• which areas of the world to operate in
• how to maximise profit
• Organising (resources)
• People
• Space
• Equipment
• services
• Co-ordinating
• The activities of various departments

5

• Decision-making
• About the organisation
• Products or services made or sold
• Employees
• Use of IT
• Controlling
• Monitoring and supervising the activities of
  others

6
MIS

• Management information systems must be designed
  to support managers in as many of these functions
  as possible, at different levels (operational,
  tactical, strategic) of an organisation.

7
Types of decision

• Management decisions can be
• Structured (i.e. repetitive, routine, definite
  procedures)
• Or
• Unstructured (i.e. require judgement, insight,
  evaluation)

Stages of decision-making

• Recognition that there is a problem
• Consideration of possible solutions
• Choosing a solution
• Implementing the solution

8
Benefits of an MIS System

• Computer systems operated by many companies dont
  necessary allow for making executive decisions
• Can purchase additional software to obtain
  management info from an operational system
• Can produce graphs for predictions, sales trends
• Can obtain data relating to the success of a
  particular promotional or marketing activity

9
Typical functions of a MIS

• a comprehensive database holding all the
  information about products, customers, suppliers
  and finance that would be needed to provide
  managers with reports for decision-making
• the ability to analyse the information in the
  database to highlight situations that need
  attention
• the ability to show figures over a period of
  time, perhaps in graphical format including
  production and sales figures
• ability to show a snapshot of the companys
  financial situation over a period of time
• ability to perform what-if calculations to show
  what the effect would be of raising production
  levels, hiring more staff, acquiring a new
  building etc.
• daily calculation of productivity levels by
  analysis of costs and output