Transcript Anthony’s Triangle

An information system (IS) is an arrangement of
people, data, processes, communications, and
information technology that interact to support and
improve day-to-day operations in a business as well
as support the problem-solving and decision making
needs of management and users.
Information technology is a contemporary term that
describes the combination of computer technology
(hardware and software) with telecommunications
technology (data, image, and voice networks).
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Front- and Back-Office Information Systems
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Front-office information systems support business functions
that reach out to customers (or constituents).
 Marketing
 Sales
 Customer management
Back-office information systems support internal business
operations and interact with suppliers (of materials, equipment,
supplies, and services).
 Human resources
 Financial management
 Manufacturing
 Inventory control
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Information System Resources

People Resources
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End Users – the people who use an information
system or the information it produces. Ex:
Accountants, salespeople, customers
IS Specialists – the people who develop and
operate information systems based on the
requirements of end users. Ex: programmers,
analysts, system operators
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Information System Resources

Hardware Resources
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Machines, such as computers and other devices,
and media, such as paper, disks
Computer Systems such as the personal
computer (desktop), mainframe, or laptop
Computer peripherals such as keyboard, mouse,
monitor, scanner, printer, disks
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Information System Resources
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Software Resources
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Programs – sets of operating instructions that
direct and control computer hardware
Procedures – sets of information processing
instructions that people need
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Information System Resources

Software Resources continued
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System Software – such as operating system that supports
the operations of a computer system. Ex. Windows 98
Application Software – programs that direct processing for
a particular use of computers by end users. Ex. Excel
Procedures – operating instructions for people who will use
an IS. Ex. Instructions for filling out a form.
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Systems: Some Examples


University
 Inputs: Students, Faculty,
Textbooks
 Processes:
Education/Courses
 Output: graduates
 Feedback: surveys,
grades
Toyota Plant
 Inputs: raw materials,
components
 Processes: assembly line
 Output: mini-vans
 Feedback: customer
surveys, quality reports
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Fast Food IS
 Inputs: consumer orders
 Processes: processing
software
 Output: receipts, cook’s
order list
 Feedback: invalid entry
message
Video Store IS
 Inputs: rentals, returns
 Processes: processing
software
 Output: reports, rental
agreement
 Feedback: error repots
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Information & Decision Making
-
Increasing
Scope
Increasing
Detail
EIS
Strategic
MIS Tactical
DSS
Imprecise External
Recurring
Information
Needs
Operational
+
TPS Operational Activity
Precise
Internal
Raw Data
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Strategic Planning Decisions
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Decide Organisations
Objectives – top down
management
Plan how to achieve
Objectives
1. Long term
2. High levels of Uncertainty
and Risk
3. Situations may not be
recurring
4. Deals with complex issues
Environmental
Information
Strategic
Tactical
Summarised
Information
Operational
Operational Activity
Raw Data
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Management Control Decisions
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Taken within the framework
of strategic plans
Ensure that resources are
obtained and used
efficiently and effectively
Decisions encompass
planning activities e.g.
pricing a new product
Some
Environmental
Information Strategic
Tactical
Summarised
Information
Operational
Operational Activity
Raw Data
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Operations, Tactics, Strategy
Sector
Production
Operations
Tactics
Strategy
• Machine settings
• Rearrange work area
• New factory
• Worker schedules
• Schedule new products
• New products
• Maintenance sch.
• Change inventory
• New industry
method
Accounting
Marketing
• Categorize assets
• Inventory valuation
• New GL system
• Assign expenses
• Depreciation method
• Debt vs. equity
• Produce reports
• Finance short/long term
• International taxes
• Reward
• Determine pricing
• Monitor
salespeople
• Promotional campaigns
competitors
• Survey customers
• Select marketing media
• New products
• Monitor
• New markets
promotions
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Decision Levels
Decision
Level
Description
Example
Type of Information
Strategic
Competitive advantage,
become a market leader.
Long-term outlook.
New product that
will change the
industry.
External events, rivals,
sales, costs quality,
trends.
Tactical
Improving operations
without restructuring the
company.
New tools to cut
costs or improve
efficiency.
Expenses, schedules,
sales, models, forecasts.
Operations
Day-to-day actions to keep
the company functioning.
Scheduling
employees,
ordering supplies.
Transactions, accounting,
human resource
management, inventory.
History of the Role of IS
1950-1960
1960-1970
Data
Processing
Management
Reporting
Electronic
Data
Processing
- TPS
Management
Information
Systems
1970-1980
Decision
Support
Decision
Support
Systems
- Ad hoc
Reports
1980-1990
1990-2000
Strategic &
End User
Electronic
Commerce
End User
Computing
Exec Info Sys
Expert Systems
SIS
Electronic
Business &
Commerce
-Internetworked
E-Business &
Commerce
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Operational-level Systems
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Transaction-Processing Systems (TPS)
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Basic business systems
Perform daily routine transactions necessary for
business functions
At the operational level, tasks, resources and
goals are predefines and highly structured
Generally, five functional categories are identified,
as shown in the diagram.
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System Architecture: Transaction Processing System
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System Example: Payroll System (TPS)
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What is MIS?
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A Management Information System (MIS) is an organized
method of providing past, present and projection information
relating to internal operations and external intelligence. It
supports the planning, control and operational functions of an
organization by furnishing uniform information in the proper timeframe to assist the decision-maker ["MIS Universe", Data
Management, Sept 1970]
A Management Information System provides managers with
information and support for effective decision making and
provides feedback on daily operations.
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Management-level Systems
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Management Information Systems (MIS)
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MIS provide managers with reports and, in
some cases, on-line access to the
organisations current performance and
historical records
Typically these systems focus entirely on
internal events, providing the information for
short-term planning and decision making.
MIS summarise and report on the basic
operations of the organisation, dependent on
the underlying TPS for their data.
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System Description: Management Information Systems
MISs are used by managerial employees to support recurring
decision making in managing a function or the entire business
Supported Activities
• Scheduled Reporting - the system produces automatically
based on a predetermined schedule. Some include:
• Key Indicator – High-level summaries to monitor
performance (e.g. Monthly Sales Report)
• Exception – Highlights situations where data is out of normal
range (e.g. Monthly Late Shipments)
• Drill Down – Provides lower level detail aggregated in a
summary report (printed only if needed)
• Ad Hoc Reporting – unscheduled reports that are usually
custom built to answer a specific question (e.g. sales data
by person report to identify issues)
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Scheduled Report Example
Daily Sales Detail Report
Prepared: 08/10/xx
Order
#
Customer
ID
Sales
Rep ID
Ship
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
Key Indicator Report Example
Daily Sales Key Indicator Report
This
Month
Last
Month
Last
Year
Total Orders Month to Date
$1,808
$1,694
$1,014
Forecasted Sales for the Month
$2,406
$2,224
$2,608
Demand Report Example
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
Exception Report Example
Daily Sales Exception Report – ORDERS OVER $10,000
Prepared: 08/10/xx
Order
#
Customer
ID
Sales
Rep ID
Ship
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
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Outputs of a Management Information System
Earnings by Quarter (Millions)
Actual
Drill Down Reports
Provide detailed data
about a situation.
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 Information System (MIS)
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Inputs: Summary transaction data
Processing: Simple models; low level analysis
Outputs: Summary reports
Users: Middle managers
Example: Weekly, monthly, and annual resource
allocation. Not five year plans and not daily details,
but something in between.
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System Architecture: Management Information System
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Guidelines for Developing MIS reports
Guideline
Explanation
Tailor each report to user needs
Involve user in the design
Produce only needed reports
If no one reads the report, do not produce it
Pay attention to report content and
layout
Display the information most desired
Use user accepted words and phrases
Do not use unnecessary data
Use management by exception in
reporting
Produce reports to solve a problem or take
action
Set parameters carefully
Low parameters may result in too many
reports, while high parameters may overlook
valuable information
Produce all reports in a timely fashion
Outdated reports are of little or no value
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System Description: Functional Area Info Systems
Functional Area Information Systems
Cross-organizational information systems are
designed to support a specific functional area
Supported Activities
The following functional organizations have systems
to support their operational and managerial activities
• Accounting
• Finance
• Human Resources
• Marketing
• Operations
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Overview of a Marketing MIS
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Overview of a Financial MIS
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Manufacturing MIS
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Material requirements planning (MRP)
Manufacturing resource planning (MRPII)
Just in time (JIT) inventory system
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Overview of a Manufacturing MIS
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Human Resource MIS
Concerned with activities related to employees and
potential employees of the organization.
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Subsystems include:
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needs and planning assessments
recruiting
training and skills development
scheduling and assignment
employee benefits
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Overview of a Human Resource MIS
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Information Systems in Industry
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Airline industry (e.g., ticketing sites)
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Investment firms (e.g., analyze stocks and
bonds)
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Banks (e.g., online check payment)
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Transportation industry (e.g., schedule trucks
and trains)
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Information Systems in Industry
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Healthcare organizations (e.g., track patient records)
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Retail companies (e.g., process customer orders)
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Power management and utility companies (e.g.,
monitor and control power generation and usage)
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Professional services (e.g., provide information on
products and services to its consultants)
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