MANAGEMENT INFORMATION

SYSTEM

Global Institute of Management

Rajesh S Sharma
Asst Prof
 INFORMATION SYSTEM
• AN INFORMATION SYSTEM CAN BE DEFINED AS SET OF
INTERRELATED COMPONENTS THAT COLLECT, PROCESS,
STORE, AND DISTRIBUTE INFORMATION TO SUPPORT
DECISION MAKING AND CONTROL IN AN ORGANISATION.

• DIFFERENCE BETWEEN INFORMATION AND DATA.

 PROCESS
Data Process INFO
Input Processing, Classify, Arrange
And Calculate Output

Feedback

INFORMATION SYSTEM
 EXAMPLE-TOYOTA
• CEO-AKIO TYODOA
• SURPASS GM IN 2006 SELLING OVER 9 MILLION
VEHICLES
• Lower priced model and consumer loyalty
• Believe in JIT, quality and improvement
• Vehicle order management system
 TPS-Transaction Processing system
KWS- Knowledge Work system
OAS-Office automation system
CSCWS-Computer-Supported Collaborative Work System
 Management Information Systems
Transaction Processing Management Information
Systems (TPS) Systems (MIS)
– Support operation – Provide decision-making
– Management and support for routine,
control structured decisions
– Routine, normal – Closely linked to and fed
operations by TPS

MIS 175 Spring 2002 Chapter 10 6

 WHY INFORMATION SYSTEM
BUSINESS ORGANISATIONS USE I T AND SYSTEMS TO ACHIEVE CORPORATE OBJECTIVE.

1 ACHIEVING OPERATIONAL EXCELLENCE

2 DEVELOPING NEW PRODUCTS AND SERVICES-APPLE
3 IMPROVING DECISION MAKING
4 ACHIEVING COMPETITIVE ADVANTAGE-DELL
5 SURVIVAL-CITIBANK
6 CUSTOMER AND SUPPLIER INTIMACY-TOYOTA

MIS advantages to an organization

• We can summarize MIS advantages of an organization following these.
• Users can quickly and timely access information since information is systematically stored
by using computer systems and computer networks.
• MIS support executives making decision, setting and adjusting strategies and operational
plans. They summarize and analyze information. So, executives can easily apply it.
• Good MIS will show how an operation accords to an organization goal. It’s adopted to
monitor an operation.
• MIS reduce organizations’ cost because of time, labor and expenses reducing in long run.
 DIMENSIONS OF INFORMATION
SYSTEM
1 ORGANISATION/Credit reporting firms

2 TECHNOLOGY/Hardware and software

3 MANAGEMENT
 DSS
• A Decision Support System (DSS) is an
interactive computer-based system or subsystem
intended to help decision makers use
communications technologies, data, documents,
knowledge and/or models to identify and solve
problems, complete decision process tasks, and
make decisions.
• Decision Support System is a general term for any
computer application that enhances a person or
group’s ability to make decisions.
 Decision Support Systems
• Used for unstructured problems
• Characteristics
– Data from multiple sources internal and external to
organization
– Presentation flexibility
– Simulation and what-if capability
– Support for multiple decision approaches
– Statistical analysis

MIS 175 Spring 2002 Chapter 10 10

 Example of decisions

Decide entrance or exit from market

Unstructured Senior Approve capital budget
Management Decide long term goals

Design a marketing plan

middle
Semistructured management Develop a departmental budget
Design a new corporate website

Determine overtime eligibility

Operational
Restock inventory
management
Structured offer credit to customer or
special offers to customers
 EXAMPLE OF DSS
P&G
1. 80,000 employees in 140 countries
2. Selling more than 300 brands.
3. How to reduce supply chain cost(PROBLEM)
4. Having 1,00,000 suppliers.
5 Help of IT GLOBAL GROUP(DSS).
6 IT GLOBAL constructed models using Microsoft excel spreadsheet (DSS)
powered LINDO system.
7 Taking decision with the help of simulators.
 DECISION MAKING PROCESS
Intelligence
What is the problem

What are the possible Design

Solutions?

What is the best solution choice

Is the solution working or

Implementation
Can we make it work
Better?
Components of DSS
TPS EXTERNAL DATA

Internal Records
DSS
Database

DSS Software System

Decision Models
OLAP Tools
Data Mining Tools

User Interactive
Interface Quick response

(Adapted from Laudon and Laudon)

MIS DSS
Structured problem unstructured problem

Use of reports Use of models

Rigid structure user friendly interaction

Information displaying restricted adaptability

can improve decision making Can improve decision making

by using what if analysis
by clarifying raw data
MARKETING DECISION SUPPORT
SYSTEM
• A coordinated collection of data, systems, tools and
techniques with supporting software and hardware by
which an organization gathers and interprets relevant
information from business and environment and turns it
into a basis for marketing action.
• Marketing decision support system is a computer based
system used by marketing personnel at any functional
level e.g. sales, product or brand management,
advertising. The output is special reports, mathematical
simulations or tracking devices
MARKETING DECISION SUPPORT SYSTEM
value of MDSS
strategic decision in competitive situations e.g. changing personnel, implementing
new pricing policies etc.

Features of MDSS.
1. Focus on specific research problems to support individual marketing personnel.

2. Information to take specific decision(new product planning, advertising

effectiveness etc)

3. To evaluate alternative solutions to marketing related problems and to identify the

best course of action.

4 Solves limited problems.

Marketing Decision support systems,Inc. (www.mdssworld.com)

 MDSS
Environmental
Transactional data Business intelligence
information

Marketing
Research computer software
Database

Specialized Model Responses to

Reports Simulations Database Queries
 MDSS
Informational Requirements
Much of the Information in MDSS is secondary- Contains actual market data.

Environmental Information- Information of suppliers and distributors(Distribution Partners).

Business Intelligence- A procedure for collecting daily operational information pertinent to the
company and the markets it serves.

Transactional Data- Information resulting from a transaction usually between a consumer and a
retailer. Tools-> Bar coding Optical scanning, automatic replenishment, electronic data
interchange and reader sorters.

Information Processing and MDSS Database, Computer facilities, software system.

Statistical software systems- These systems analyze large volumes of data and computer basic
statistics such as means and standard deviations. e.g. SPSS

 Managerial function software systems- These systems are used by managers and includes
forecasting systems, product/brand management systems and promotional budgets.
 MDSS Models and output

A model is a abstraction that explains some phenomenon or activity for e.g. a model is
a way to explain how a company’s sales fluctuate in response to advertising
expenditures.

Types of MDSS outputs are reports, simulations and queries.

 Sales analysis report- Prepared with the help of accounting and sales transaction
data.

 Geographic information systems(simulation)- Commonly used MDSS simulation. It

uses spatial modeling in conjunction with data drawn from MDSS

 Queries- A segment of MDSS that enables the user to retrieve information from the
system without having special software.
 Kotler’s Model of MKIS

Competitors, Publics, Macroenvironment Forces

Target Markets, Marketing Channels, Suppliers,
Marketing Information System

Marketing Environment
Marketing Managers

Developing Information
Assessing
Implementation, Control

Information
Analysis, Planning,

Internal Marketing
Needs Records Intelligence

Distributing Decision Marketing

Information Support Research

Marketing Decisions and Communications

(Kotler)