Management Information Systems & Decision Support Systems

Information Technology

Business Processes
Refer to the manner in which work is organized, coordinated & focused to produce a product/service Set of activities/workflows of material, information & knowledge Unique ways in which org coordinate work, info, knowledge Examples: developing a new product, creating a mktg plan, hiring an employee

Business Model
Describes how a company produces, delivers and sells a product or service to create wealth
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Functional Area Manufacturing and Production Sales and Marketing Finance and Accounting Human Resources

Business Process Assembling the Product Checking for quality Identifying customers Selling the product Creating financial statements

Managing cash accounts

Hiring employees Evaluating employees job performance

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MIS
Deals with behavioral issues and technical issues surrounding the development, use and impact of info systems Effective use requires understanding of the organization, mgmt and technology

Dimensions of MIS
Organization Management Technology

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Hierarchy- Pyramid structure of rising authority and responsibility Senior Mgmt

Makes long range strategic decisions

Middle Mgmt
Carries out the plans of Senior Mgmt Knowledge workers design products and create new knowledge

Operational Mgmt
Monitor the daily activities of the business Data workers assist with paperwork Production and service workers produce the product/deliver the service
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Management
Job is to make decisions and formulate action plans to solve org problems Manage what already exists and create new products and services Creative work driven by new knowledge and info IT plays a significant role

Technology
IT is a tool used by managers to cope with change

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MIS are
part of a series of value adding activities for acquiring, transforming, distributing info to
improve decision making & execution of business processes, enhance organization performance and profitability

MIS makes it possible for a firm to manage all its info

Suppliers, customers, employees, invoices, payments, Products & services

Information Technology

MIS automate many steps in business processes that were formerly performed manually
For ex., checking clients credit, generating invoice

MIS make it possible for more people to access, share info, replace sequential steps with parallel tasks
Decision making is faster Enable new business processes
Ex., ordering a book online from Amazon.com Downloading a music track from i-Tunes
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MIS Type
Sales & Mktg

Responsible For
Selling org products & services

Name of the System

Order processing Pricing Analysis

Description
Enter, process and track orders

Determine prices for products and services Controls the actions of machines and equipment Decides when and how many products should be produced Prepares short term budgets Plans long term profits Tracks employee training, skills, performance appraisals

Mfg & Prod

Producing goods & services

Machine Control Prod planning

Finance & Acctng Human Resources

Managing firms financial assets Hiring, Developing, Maintaining firms workforce

Budgeting Profit Planning Training and Development

Human Resources Planning

Plans the long term labor force needs of the org

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TPS
Purpose is to track the flow of transactions
Sales, Receipts, Cash Deposits, Payroll, Flow of Materials

Is a computerized system that performs and records daily routine transactions necessary to conduct business such as sales order entry, payroll Is central to a business (eg., pkg tracking system, airline reservation system) Is also a producer of info for other systems Used by operational managers

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MIS
Used by middle managers in decision making and to monitor and control the business and predict future performance Provides reports on org current performance Summarize & report org basic operations using data supplied by TPS Reports are produced on a regular schedule

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DSS
Support non routine decision making for middle mgmt Use internal info from TPS , MIS, info from external sources (current stock prices, competitor prices) Provide data analysis by condensing data Focus on problems that are unique, rapidly changing

ESS
Enable senior mgrs to address non routine decisions that require judgment, evaluation, insight Filter and compress data to present graphs Draw summarized info from DSS and MIS Incorporate data about external events (new tax laws, competitors)

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DB
Used for query and analysis May be a small db residing on a PC or a large Data Warehouse Collection of current or historical data from a number of applns Data is generally copy of production db

Software System
With Data Mining software Analytical Tool to analyze data from different perspectives and to summarize it into useful info

User Interface
Permits easy interaction between users of the system and DSS software tools
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DSS enable the firm to coordinate internal and external business processes Following illustrate the range of DSS capabilities
Pricing Decisions
If the retailers wait too long to discount an item that is not selling well, Inventory cost will go high If they discount too early or discount heavily, they lose profits because people buy goods they might have bought a higher price

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 Profitability Analysis
Not all sales contribute to profits If the software determines that the transaction is not profitable, the sales person cant enter the order DSS enable to calculate cost components such as delivery expense, rebate, extended credit term or the impact of currency shifts

Customer Relationship Management

Data mining is used to guide decisions about pricing, customer retention, market share DSS enable consolidation of data from Web site transactions , TPS DSS enable analysis needed for marketing forecast Example, a bank in credit card business, was able to flag customer accounts in risk of defaulting
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