Académique Documents
Professionnel Documents
Culture Documents
enable the organizations planning, control, and operational functions to be carried out effectively James A.F. Stoner
The system that monitors and retrieves data from the environment, captures data
from transactions and operations within the firm, filters, organizes, and selects data and
presents them as information to managers, and provides the means for managers to generate information as desired is called the management information system (MIS)
- Robert G. Murdick
MIS is a structured, integrated database that provides and facilitates the flow of
information over all the levels and components in a multi-level organization. MIS optimizes
the transfer, collection, and presentation of information to meet the organizations needs.
Larry Long
To the above definitions can be added that management information systems are
information systems that serve the needs of the various levels of management within
the organization; whether strategic, tactical, and operational.
LEVELS OF MANAGEMENT
There are four levels of management within an organization
1. Operational
2. Knowledge
3. Tactical
4. Strategic
Operational Level
The operational level of management concerns itself with the efficiency
and effectiveness of transactions performed by workers.
Examples of reports produced by operational level management information systems are daily, weekly, or monthly sales reports. These reports are generated from
transaction records produced by transaction processing systems.
Transaction pro-
cessing systems are the systems used in generating records from operational business
processes or transactions.
Knowledge Level
Those who occupy this level of management are technical people engaged in the
generation of new knowledge or work with knowledge and expertise in the different
professional and technical fields such as engineering, architecture, information
technology, etc. This level of management is concerned with the production of new
designs, methods and concepts.
Tactical Level
This level is concerned with meeting the series of goals required to reach the
objectives of the strategic level. This level is also concerned with decisions about
resource allocation. Usually, the information requirements in this level are periodic, such
as from year to year, quarterly, every six months, and the like. Goals in the tactical level
are more long-termed compared to the operational level. The scope, range, and people
being managed at this level are bigger, and the information available for decision
making is hardly ever conclusive. Therefore, intuition and personal judgment play a
bigger role in making decisions because of the information available at this level.
Strategic Level
This level is concerned with formulating policies and long term goals. People
who make the big decisions for the entire company belong to this level. The information
needed at this level should be a comprehensive, summarized report of the statistics and
standing of a company. The information at this level is a summary of the information
gathered at tactical level, whose objective is to meet the goals set by the strategic level.
It should present trends over a period of time i.e. quarter, a semester, or a year.
need not be given to top management. Their job function is for quick analysis and
decision-making on corporate performance trends and competitive position.
Filtering Information
Filtering information is the key to developing quality information system. An
Information systems quality is judged by its output. If an information system generates
the same 20 page report to all people from clerical level to strategic level, it is defeating
the purpose of an information system. There are information which some people do not
need to know, or have very little or no use of. People at the various levels of activity
should receive only the information they need to accomplish their job functions, no
more, no less. If the same 20-page report is given to the president of the company, it
would take a very long time for the president to process all the information, which
should have been filtered into a comprehensive, quality, informative, and summarized
report.
The goal of filtering information is for the right information to reach the right
person at the right moment and in the right form. More details of actual transactions are
needed at the operational level. Summarized performance information about the
resources used in the operational level are given at the tactical level such as Report on
expenditures and manpower loading over a quarter, semester of a year are presented
through graphs and charts.
TYPES OF INFORMATION SYSTEMS
Generally, the different applications of information systems can be classified in
different ways. One convenient way to classify them is according to their role in the
operations and management of a business: either they support operations or
management activities and functions.
Transaction processing systems are systems that records and processes data from
business transactions. Examples of these are the Point-of-Sales (POS) systems in
supermarkets and department stores which input, purchase information of buyers at the
electronic cash register terminals and store and process these information in Servers
that may be located in the same building or in remote locations.
Process control systems controls and monitors physical processes. For example, a
petroleum refinery uses electronic sensors linked to computers to continually monitor
chemical processes and make instant adjustments that control the refinery processes
Decision Support Systems( DSS) provides interactive ad hoc support for the
decision-making processes of managers and other business professionals. For
example, a production manager may use a DSS to decide how much product to
manufacture based on expected sales based on the future product promotions and the
location and availability of raw materials necessary to manufacture the product.
Expert Systems are knowledge-based systems that provide expert advice and act as
expert consultants to users.
Most information systems which are computer based are envisioned, designed,
and put into operation using some form of systematic development process which shall
be discussed in Module X, Systems Development and Project Management.
CONCLUSION
The concept of management information systems has evolved thru the years and
now is back with an expanded scope - information systems serving the needs of
management and business professionals in all levels of management- whether they are
in the strategic, tactical , knowledge, or operational levels.
Reading Assignment:
Read supplemental books: Raymond Mcleod, Management Information
Systems
E-Journals:
Password:
powersearch
E-Books
Exercises/Written Assignments
1. Give three (3) definitions of management information systems. Cite authors
and references.
2. Compare the information concerns of strategic level vs. the tactical level of
management.
3. Discuss three (3) examples of operations support system:
3.1 Transaction processing
Banks
5.3
Hotels
5.4
Airlines
5.5
Insurance
References/Bibliography
Long, Larry. Management Information Systems, pp. 42-45. Prentice Hall, c 1989.
OBrien,
J.A.
Management
Information
Systems:
Managing
Information
OBrien,
J.A.
Management
Information
Systems,
Managing
Information
LESSON 2
Learning Objectives:
LEARNER
Strategic Systems
Competitive Strategies
Competitive Advantage
Competitive Forces
INTRODUCTION
Nowadays, managers view information systems (IS) as something of strategic
importance to their organization. This manifests through greater competition in
developments in information technology and their strategic uses. The use of information
systems for background administrative support is being broadened; information systems
are now being used to support the various strategic goals of the organization. The
strategic use of information systems involves using information technology to develop
products, services, and capabilities that give a company major advantages over the
competitive forces it faces in the global marketplace.
When they consider these things, managers avoid being driven by the latest
technology trends. Without a clear sense of strategy, managers may be tempted to
always get the newest technology without a clear idea of what it would do for them,
resulting in a lack of return of investment. This module starts with the strategy
development process. We examine the strategic alignment concept leading to the use
of alternative ways of using computer-based IS, including the internet, to support their
strategy. The overall aim of this module is to guide the reader in conducting a coherent
analysis of the role which IS can play in a companys strategy.
A niche market;
Competitive Advantage
Lower cost
Differentiation
Broad target
Competitive
Scope
Narrow target
COST
DIFFERENTIATION
LEADERSHIP
COST
DIFFERENTIATION
FOCUS
FOCUS
To cut order processing costs, they can use on-line order entry.
Stock control systems can expand the collection of supplies at any time.
The figure below is called the strategic choice model. IS is the dependent
variable. An example of this is the use of bar codes in stores to encode transaction data
fast and accurately. As a result, it improves the quality of service and reduces costs as
well. This supports the strategic objective of using Information Systems.
InformationSystemsObjectives
Strategy can also be the dependent variable, as shown on the figure below.
ISOpportunities
NewTechnologies
Redefinitionofafirmsstrategy
Yet, it is also possible for the two (IS and Strategy) to affect each other. In an
interaction model, companies have strategy, and look for ways they can apply IS on the
strategy. By doing this, they improve their ability to manage advanced IS.
Customers also are likely to choose the standard service, so that big
companies who have been providing the service for a long time are going to be hard to
compete with.
Using IS to enter markets more easily
Information Systems can track the cost of providing to customers much more
closely, and it is a useful tool for suppliers. For example, the supplier can adjust the cost
of a particular product or service in order to maximize revenue.
When retail chains use modern communication technologies to link with their
suppliers, the balance of power is altered. When they use IS, it reduces inventory costs,
improve information flows and fulfillment time.
Because of IS, new entrants can easily enter the market and compete with the
established market holders. They can immediately be a threat to old players in the
market.
Companies make use of the internet in different forms and modes. Some basic
strategic questions for business regarding the internet are:
Such companies hardly have any competitors in the early age of business development
and are able to gain first-mover advantages. Others are entering established markets
and may challenge existing businesses. Examples of markets which are affected by and
being transformed by new Internet entrants are the markets of stock brokering, books,
CDs, and many business-to-business markets.
Portable (information)
because of its value-adding activities. For example, when a website offers consumers
buying guides or ratings for certain products.
CONCLUSION
The theme of this chapter is to see how information systems can support an
organizations strategy. An observer who sees business organizations as rational, wellinformed decision-making bodies blessed with foresight would have no problem in
advising how managers should do the job. But the link between IS and strategy is much
more temporary and uncertain.
IS isnt an isolated part of the organization. It interacts not just with broad
strategy, but with most other functional areas of the business. Developing an IS strategy
can be cautious at best, provisional approach, with an emphasis on learning and
reflection, and a readiness to change course if business requirements change, as they
unavoidably will.
Reading Assignment:
David Boddy, Albert Boonstra and Graham Kennedy, Managing Information
Systems, an organizational perspective, Pearson Education Limited,Edinburgh Gate,
Harlow Essex CM20 2JE, 2002 Chap4
Exercises/Written Assignments
1. Identify a strategic information system in your company or industry. Do a costbenefit analysis of this system.
2. How should one identify systems for development that could be very strategic
for the company? Can one already say that a conceptualized system will be
strategic for the company? What are the criteria for saying that a system still
to be developed will be strategic for the company?
References/Bibliography
David Boddy, Albert Boonstra and Graham Kennedy, Managing Information
Systems, an organizational perspective, Pearson Education Limited,Edinburgh Gate,
Harlow Essex CM20 2JE, 2002 Chap4
LESSON 3
Learning Objectives:
LEARNER
Strategic Planning
Value Chain Analysis
Information Requirements
Linkage Analysis
INTRODUCTION
Managing Information Systems is becoming more important and also more
difficult nowadays, but technology is changing rapidly, that planning could be difficult.
However, it is still critical for an organizations survival. Planning the effective use of IS
is very important for the survival of an organization.
Various approaches
have been devised in order to derive the organizations information requirements. The
Critical Success Factors Method is one of the earliest methods used by business
organizations to focus on the information support to be given to the critical factors that
contribute to the companys success or greater competitiveness.
The key is in
identifying these critical success factors so that information needed for their execution
or sustenance can be identified. Once identified, information systems to generate these
critical information can be conceptualized and prioritized for development and
implementation. Identifying the CSFs have traditionally been the task of the companys
top executives.
sequence of activities that add value to the product during its creation, production,
delivery and after sales support.
Using this method, companies will then have an analytical guide to determine
which among the activities of the value chain, is vital information lacking or needed.
The timeliness or frequency of information generation is also of great importance in this
analysis. This will not just indicate information to generate but will specify the
performance of the information system. For example, deriving market demand
information on real time is key to production and delivery success of fast moving
products.
VALUE-CHAIN MATRIX
Michael Porter s The Value-Chain Matrix can also determine where another
company adds more value and team up with the said firms outsourcing activity to the
other company. The following terms have evolved to describe e-commerce or ebusiness, where business transactions and information are exchanged via the Internet.
These are the translations of these terms
Virtual value chains marketplaces are termed market spaces in the Internet
Marketplaces physical location of physical products
Market spaces physical location and products are substituted by information.
How can companies create value in market space? Or how can they create value
for both market space and marketplace at the same time, leveraging off each other?
At every step in the chain information, value can be added in five ways:
gathering, organizing, selecting, synthesizing, and distributing. The IS organization
should therefore be playing a major role in market space.
CSFs are defined as the few key areas of the job where things must go right for
the organization to succeed. CSFs should be reexamined as often as needed since it is
time dependent and time sensitive so they can keep track of the current business
climate.
There are four sources for these factors. One is the industry. Another is the
company itself which is situated within the industry. The environment would be the third
source, as the temporal organizational factors be the fourth factor, or the areas of
company activity that usually dont warrant concern but are unacceptable at the
moment.
Listing the current corporate objectives and goals, and using them to determine which
factors are important for accomplishing objectives, are ways to use CSF, along with two
or three main measures for each factor.
Stage 2: Contagion. Interest grows fast as newer products and services based
on technology are brought into the market. Rapid uncontrollable growth
occurs. This is the learning period for the field for new uses and for
new products and services catering to the new technology.
Stage 3: Control. Management begins to cut costs and reduce waste, leading to
efforts toward standardization.
Stage 4: Integration. The use of the new technology is considered mature. Its
dominant design mastered, making way for newer technologies, and
the four stages repeats.
E-BUSINESS MATRIX
The portfolio management approach Cisco uses is called the e-business value
matrix. The e-business value matrix classifies the different information systems projects
identified into the following types:
the
development
of
operations
support
systems
or
Breakthrough Strategy. Such projects have the potential to have a big impact
on the company and even the industry if successful. This strategy is
very risky and failure must be viewed the right way. Once operational
these systems may be viewed as strategic; or likely to have impact on
the companys profitability and greater competitiveness. The CIO must
be educated on their role because their involvement is a key in the
implementation of these projects.
When the one who has the power has been identified, the management must
determine who manages each link. Oftentimes there is no one managing the link, which
should be a concern for the management. The most important link is picked and the firm
decides how to control it.
Electronic devices are used to distribute, create, and present knowledge and
information as part or as an additional good of a product or service. Those who control
electronic markets will be the winners since they will be able to create niche markets as
they arise.
CONCLUSIONS
A successful planning effort should support peering into the future in a sense and
respond way. The systems plan may not be effective when it doesnt align with
corporate strategy. A misalignment is unlikely with the boom of internet commerce. Yet,
ecommerce is not fully integrated in many companies.
Reading Assignment:
Barbara McNurlin and Ralph Sprague,Jr. Information Systems Management in
Practice, 5th Edition, Chap.4
Exercises/Written Assignments
1. Using the Critical Success Factors method, determine the information
requirements of a new company in an automotive industry.
2. Use the Value Chain matrix in identifying application systems that will generate
the information required in the value chain of this company.
3. Use the linkage analysis method in determining what linkages with partners
and suppliers this company must develop and maintain.
4. Use Nolans Stages of growth in identifying which technologies to use and how
these are to be introduced in the company.
Exercises:
1. Knowing the different systems panning processes, find out what automated tool
available in the market you can use to support a particular planning process.
Describe this tool.
2. Interview the MIS manager of a small company and ask about the current
electronic linkages it has with its partners or clientele. What are the benefits of
each party from the electronic channel?
3. Visit the CIO of a local organization/company. Find out how their information
systems plan link with their business plan.
References/Bibliography
Barbara McNurlin and Ralpj Sprague, Jr.Information Systemzs Management in
Practice, 5th Edition.,2002 Prentice Hall.