MIS 2000

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MIS 2000 Class 9 Operations and Information
Systems
Updated Jan. 2016
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Outline

• Operation concept
• Transaction Processing System (TPS)
• Management Information System (MIS)
• Case on Customer Support MIS
• Marketing campaign process at Telco
• Problems and solutions
• Impact of organizational culture
• Summary

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Operations

• Basis of business, recurring activities that
  generate ongoing income and increase
  value of organizational assets.
• Also called business transactions repeating
  atomic events in organizations (buy, sell, bill,
  pay, hire, etc.)
• Best understood as business processes serving
  organizational functions (production, HR,
  purchasing, marketing, sales) previous lecture.

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Operational Processes

• Operational processes are bread butter of
  organizational life because they
• employ most of work
• create income
• (C) incur most of costs (savings in operations
  directly reflects in financial results)

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Operational Processes and TPS/MIS

• TPS is part of operational processes, as they
  carry and track (record) everyday operations in
  all segments of organization. TPS determine
  design and performance of operational processes.
• MIS create summary evidence on operations
  executed, or reflect the business transpired.

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Transaction Processing System (TPS)

• TPS Serves supervisory management and has present
  past time focus.
• TPS is a type of IS that stores processes data
  created in operational processes
  (transactions).
• TPS is a database with stored queries and
  reports.
• Outputs reflect shorter periods of time, present
  and recent past.
• Output examples sorted lists of parts expended,
  basic summaries of sales and purchases, etc.

TPS
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Management Information Systems (MIS)
TPS

• MIS uses outputs from TPS (queries, reports) and
  additional code and to create reports for
  mid-level managers.
• MIS outputs reflect longer periods than the TPS
  outputs and more elaborate numerical figures.
  Charts complement reports.
• Example outputs A summary of sales in last
  quarter or quarter, with breakdowns and variance
  figures, and graphics.

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Management Information Systems (MIS)

• Kinds of reports
• 1. Scheduled report - regularly created (e.g.,
  on the end of month or quarter)
• 2. Exception reports - created when something
  exceptionally happens (e.g., a peak or drop in
  revenues).

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Case of Telco Marketing Campaign Process As-Is
The term As-is refers to the factual state of a
process.

• CRMS (Customer Relationship Management System) is
  Telcos MIS/TPS. It is supposed to serve
  marketing campaigns.
• As-is process is sub-optimal.

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Data Diagram for Telcos As-Is Marketing Process

• Data diagram represents entities included in the
  process as-is.
• The process problems replicated - mixing
  marketing with sales - ordering.

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Marketing Process at Telco Evaluation of Design

Process design Issues Finding
Composition Is this a marketing or sales process? Mixed domains, Two start points.
Coordination Unclear process deliverable as the assessment basis. CRMS is a black hole.
Complexity Three IS resources involved (CRMS, e-bulletin, customer order system).
CRMS as part of process design Negligible footprint.
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Marketing Process at Telco Evaluation Of
Performance
Process performance Losses
Time Cycle time (promote-sell) unpredictable. Slowness due to multiple data sources and sinks.
Cost Inflated by deployment of 3 IS resources and time losses.
IS Support - CRMS used just as storage of marketing campaigns no tracking/ reporting of market response. - Supporting process confusion campaigning mixed with customer ordering (see next slides)
Customer Value - Marketing Professional Process doesnt help inform on results of market campaigns. - Consumer Poorly served.
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Marketing Process at Telco To-Be Process
The term To-be signifies a process as it should
be (improved).

• - Components in red belong to As-is process
  (deleted).
• Process optimized by focusing on marketing
  campaign steps and eliminating customer ordering
  (red part), plus promoting CRMS.

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Market Campaign Process Optimization Data
Diagram

• OrderDetail entity/table records what is offered
  to whom and the offer outcome.

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Organizational Culture Impact

• Department boundaries between Sales and Marketing
  departments at Telco are rigid (there are
  silos).
• Marketing process cant involve sales people.
• Silos have different cultures and dont
  understand each other.
• Organizational processes and ultimately
  performance suffer. Wasted investments in CRMS.

Marketing Dept. Person culture
Sales Dept. Bureaucracy culture
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Summary

• Operations (transactions) are basic business
  processes that generate most of income and costs.
  
• TPS track and carry operational processes. TPS
  outputs result from querying, and examples are
  daily/weekly sorted lists of parts expended, and
  summaries of sales or work hours.
• MIS reflect the business transpired, and use
  outputs from TPS to create reports for mid-level
  mgmt.
• Example of MIS output is a summary of sales in
  last quarter, with a breakdown of totals per
  product/store, variance figures.
• More

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• MIS reports transform TPS outputs, contain
  formatting features, graphs, and can be regular
  or exceptional.
• Case of the marketing campaign process at Telco
  shows process and data diagram in as-is form. The
  process has sub-optimal design and does not
  perform well.
• The to-be process separates marketing from
  customer order management and makes fuller use of
  CRMS.
• Telcos silo culture is responsible for
  sub-optimal process design and performance.