Structure of Management Information Systems

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Management Information Systems

Structure of Management

Information Systems

Prof. Rushen Chahal

1Prof. Rushen Chahal





PART I

Decision Support Systems (DSS)

Executive Information Systems

Expert Systems Informational Support of Management

Levels of Planning & Control

± A. Operations Planning & Control ± B. Tactical Planning & Control

± C. Long-term Strategic Planning & Control




PART I

Functional Deparmentation & MIS

± A. Organizational Structure

±B. Information support of a functional area:Marketing

MIS support to Management




PART II

The Role of MIS

The Evolving Systems Function

Conclusion Introduction to Information Systems

Development

What is systems analysis and design? Tools for Systems Development




The Physical

Components of MIS

Hardware

Software

Database Personnel

Procedures

Z -1998 Figure 2.7




7

A Networked Information System:

Three-Tier Architecture

Corporate

Headquarters

Finance ProductionMarketingand Sales

Corporate

Databases

Mainframe

Divisional

Databases

DivisionalMinicomputerswith Divisional

Databases

Local Area Network:

PCs with Local Databases

Salesforce

Notebooks

RegionalOfficeWork-stations

Plant Minicomputers

Telecommunications

Link

Prof. Rushen Chahal



8

A Downsized Networked Information System:

Client/Server Architecture

LAN

LAN

WAN

Client

PCs

Workgroup

Server

Database

Server

Client

PCsEnterprise Computer

(Central Server)

Prof. Rushen Chahal






Types of Organizational Information

Systems

Z-1992 Table 3.2 p84

Z-1992 Fig 3.2 p85










Information for Management

A. Attributes of quality information

± Z-1992 Table 3.3 p 86; Z-1998 2.1

B. Internal vs external information ± Internal- information for TPS, MRS, DSS, OIS

± External- information for DSS, EIS

Organizational advantage is gained from external data







Information for Management

sources of data are: sales volume of competitor

± Customer profiles

± Questionnaire data (focus groups)

± Demographic data

Z-1992 Table 3.4 p87; Z-1998 2.2

Boundary spanning role

Daft and Weick Model

± Time horizon: past, present & future







Management

Reporting Systems (MRS)

Objective: provide lower & middle

management operational control information

± monthly/weekly performance reports

± attendance reports

± sales reports

± inventory reports







Management


A. Characteristics of MRS

± Designed by MIS, large & complex, multiple users & DB's

± Support highly structured queries, stable

± DO NOT necessarily support decision making; provide ± information for structure decisions

± Oriented on past & present

± Have limited analytical capabilities; summaries

± Report on internal organization operations




Management


B. Reporting by MRS

Reports produced from main DBMS and or

local DB's ± Scheduled periodic reports

± Exception reports

± Demand (Ad hoc) reports: limited queries or views

of Data




Decision Support

Systems (DSS)Support decision making process

(unstructured & semi-structured decisions);

facilitate a dialogue between user and system;

the DB is generally an extract of the main DB

± Developed by user and MIS

± Use application packages (123, etc)

± Generally very flexible (can be modified)

± Support the decision making process




Decision Support

Systems (DSS) ± Project future states of the "world"

± Have analytical capabilities

± Use internal & external data

± Graphics capabilities




23

The Structure of Decision Support Systems

Model

Management

Data

Management

Dialog

Management

Decision Support System

Internal and External

Databases

User

...

Prof. Rushen Chahal



Executive Information Systems

Provide support for top executives and their aids.

Unstructured and semi-structured decision making.

± Provide easy access to key information pertaining to the

company and environment ± User "seductive" interfaces; Users' time is a premium

± Provide access to internal & external DB's

± What if capabilities abound

± Tailorable systems; cognitive styles







Expert Systems

Knowledge based about a specific domain

Use heuristic in the process

New systems use neural nets Expert systems are knowledge based systems

that imitate a reasoning process (heuristic) to

suggest a solution within a specific domain




27

The Structure of Expert Systems

Explanation

Facility

Inference

Engine

User

Interface

Expert SystemKnowledge Base

User

Facts of the Case

Recommendation,

Explanation

Prof. Rushen Chahal



Informational Support of Management

± Z-1998 Figure 2.14 p64

Gorry & Scott-Morton

Planning: Setting measurable objectives for aperiod of time

Control: Comparing actual to planned

performance objectives and taking action in

response to deviations and making

adjustments to the plan




29

A Summary of the Informational

Support of Management

Greater

Importance

of External

Information

More

Summarized

Information

Longer

Time

Horizon

Less

Structured

Problems

Strategic

Management

Tactical

Management

Operations

Management

Business

Functions

EIS

DSS

MRS

Prof. Rushen Chahal



Informational Support of Management

Control information:

± status or progress information

± warning information

± comfort information

± FEEDBACK information





A. Operations Planning & Control

± Lower level management

± Highly structured

± Repetitive information

± Examples: Scheduling, inventory movement,

aging reports, cash flow reports, etc.

± Involves examining the progress of planned eventsand dealing with contingencies if necessary





B. Tactical Planning & Control

± Middle management

± Semi-structured and structured

± The acquisition and implementation of resources to fit thestrategic plan

The financial plan for a new MIS system;

The plan to match the labor requirements of an MRP II

run; The resources required for the introduction of a new

product

± Use DSS and GSS systems





C. Long-term Strategic Planning & Control

± Top Management

± Unstructured, semi-structured

± Examples: A diversification strategy

downsizing

Long-term market strategy

Outsourcing

± EIS systems

± Internal and external data




Functional Departmentation & MIS

A. Organizational Structure

± Independent units: Strategic Business Units

(SBU's)

± Each has their own business objectives

± Each SBU can be subdivided into functional

departments or divisions

Figure Z-1992 3.10 p103 Figure Z-1992 3.11 p104










Functional Departmentation & MIS

B. Information support of a functional area:

Marketing

± Marketing objective: Create a market and sell

± 4 P's

± Marketing MIS Hierarchy

Operational:

± weekly scheduling of sales force and promotions ± order processing and customer follow-up




Functional

Departmentation & MIS Tactical:

± Sales force and product forecasting

± Promotional planning & budgeting

± Comparisons with industry standards

± Competitive performance analysis

± MEASUREMENT

Strategic:

± What is our Market?

± How will we satisfy the customers needs? ± What does the customer want?




39

, 3.5

Zwass-1992

Prof. Rushen Chahal



The Role of MIS

A. Introduction

± Information technology is partly responsible for the

PARADIGM shift (A change, a new model,) from support to

contributing to an organizations profitability.

± From efficient data processing shops

± to understanding the goals and objectives of an

Organization

± to participating directly in the decision making and

strategy formulation




The Role of MIS

± The role of the MIS Executive:

Systems Planning

Data Center Management & Operations

Management of Remote Equipment

Identification of Opportunities for New Systems

Systems Analysis, Design, and Construction of New

Systems

Distributed Systems: The migration of equipment touser areas and control (selection, purchase, and

ownership). Standards sometimes set by IS

department.




The Role of MIS

Knowledge Users: Users take on increased responsibility. Identify

applications, and conduct systems analysis and design.

Better Applications: More specific, user friendly, functional, lower price,

readily available, and self training. Results: less need for programmers, IS

head count and budget decrease as a result.

Outsourcing: Other, external organizations taking over the management

and control of the data centers. Results:

± cost reductions

± head count reductions

± budget reductions.




The Role of MISSprague, 1993, 2.1, p37




The Role of MIS

B. The CIO's Responsibilities

± 1. Understand the business: products, markets &

customers

±2. Establish credibility of the systems department:responsiveness to needs and requests

± 3. Increase the technological maturity of the organization:

"Make it easier to take advantage of computer and

telecommunications applications, Spend money, keep up

with technology and applications




The Role of MIS

± 4. Create a vision and sell it: Create a goal for the

use of IT within the Organization and sell the goal

to others (The Marketing of IT)

± 5. Implement a systems architecture that willsupport the vision and the company in the future.

This is perhaps the most difficult responsibility

(the Tech, and the Paradigm keep changing).




The Role of MIS

C. Understand the Business

± Environmental Scanning: Find out what is happening in

the market place

±Concentrate on the lines of the business

± Sponsor weekly briefings

± Attend industry meetings with line executives

± Read industry publications

± Hold informal listening sessions ± Become a partner with the line manager




The Role of MIS

± 1. Environmental Scanning

External

± industry background

±Pertinent government regulations

± History & framework

Internal

± business goal and objectives

± major policies and practices

± The inputs, outputs and resources of the firm




The Role of MIS

± 2. Concentrate on Lines of Business

± Treat inputs as a request from a customer and outputs as

an order going to a customer.

±Example: GM sells cars, parts and financing. Each is adifferent line of the business, and each would required

different systems.

± support current operations

± use system to influence future ways of working




The Role of MIS

± 3. Sponsor Weekly meetings

IS departments need to understand the business and

the operating departments need to understand the

systems side. Meetings (Weekly, monthly, quarterly, as needed) can

help inform and communicate to all members of the

organization.

This also help change the culture to one that is open

and accessible to change.




The Role of MIS

± 4. Attend meetings with line managers: PC EXPO

± 5. Read industry publications: PC Week, CIO, etc

± 6. Hold informal listening sessions: Manage by

walking around

± 7. Become a partner with the line manager




The Role of MIS

D. Establish Systems Department Credibility

Typically may MIS organizations have not

delivered the systems on time

built the "best" systems

provided timely maintenance or enhancements

controlled costs




The Role of MIS

± IS/IT must become responsive to the needs of the

organization. How?

By providing

systems on time the "best" system

provide for maintenance and enhancements

controlling costs




The Role of MIS

E. Increase Technological Maturity

In a technologically mature organization both the

organization and the employees are comfortable

using and managing the technology.

Ease of use

use in intended ways

have a good attitude to it

have control over it




The Role of MIS

± To get comfortable:

IS can train and educate

provide flexible systems

provide "Usable" systems




The Role of MIS

F. Create a Vision of the Future

± Paradigm shift from reactive to proactive.

± Examples:

order an elevator in one day

design an build a house from a store

reprice funds in an hour or less

± A vision is a statement of how someone believes the future will be or

how he/she wants the future to be.

1. explore the present

2. look at tends and make projections




The Role of MIS:

Effective visions




The Role of MIS

H. Why develop a vision?

± 1. To set a direction. providing internal stability for a firm in an unstable

environment.

± 2. To help inspire people to take initiative

± Creating a Vision

1. Explore the Present

± look at prior experiences: ask questions

± fiddle around: experiment

± get participation: Communication

± clarify the vision over time: feedback

± Listen




The Role of MIS

2. Scouting the future

± study trends

± look for shifts in trends

± How?

» look everywhere

» convergent thinking (consensus, reduction in equivocality

» divergent thinking

» ability to map the future

»imagination and visioning




The Role of MIS

3. Ideas for the Future- Dooley Group Conference

± Decline in growth of cities

± Holograms to replace travel

± Small is better than big

± Personalized products

± Portable and personal 2-way communication

± Small powerful batteries

± Manufacturing in outer space

±A power shift from a manufacturing base to a KNOWLEDGEbase

± Deterrence of the aging process.




The Role of MIS

I. Implement an Information System

Architecture

± The IT infrastructure of an organization)

± Hardware, software, communications.

± Issues:

IT should focus on simplifying organizations

IT should flatten hierarchies IT should shift emphasis on competition to

simplification

Link IT with business strategy




The Role of MIS

J. Six Lessons about selling

± Selling is necessary to advance ideas

± Selling is how things get done in any enterprise

± 1. Understand your market place

reduce uncertainty about the market place

identify the need

fill the need with a product

± 2. Listening is a Potent form of selling

± 3. Make your buyer successful

living up to your commitments and making your customers

successful




The Role of MIS

± 4. Keep your buyer informed: Customer care

± 5. Bring in a spokesman if Necessary

± 6. Personal relationships are the key




The Evolving

Systems Function

C. Where are Systems Departments Headed?

± 1. One view from CSC (Computer Science

Company)

± an outsource vendor

outsourcing is here

IS manages become contracts administers

outsourcing vendor will use "their" platforms

IS people are either outplaced or absorbed




The Evolving

Systems Function Strategic alignment

± lower level empowerment

± Teams developing the strategy (Groups)

The questions that must be asked is:

What is need to support the business?

How will the business be supported?




The Evolving

Systems Function ± 2. Another point of view (A panel discussion)

The user has/will the IS power

The Guild system

An infrastructure for both central and de-centralcontrol

Usability, and satisfaction

Leadership and direction

guidance and coordination


h l



The Evolving

Systems Function

D. Building Relationships with Line

Departments

± 1. Redefining Roles and Skills

development support

business support

technical services

business services


h l



The Evolving

Systems Function ± 2. Managing Risks

IS projects are becoming more complex, widespread,

and Expensive

IS personnel are beings distributed- central systems,division systems and functional systems.

Thus, top management must assume responsibility

They are more conservative, cautious, less

knowledgeable


h l i



3.13 The Evolving

Systems Function ± 3. Building Relationships

Because of costs- build external relationships with

vendors, consultants, academics

Because of complexity- build internal relationships withsenior management

Because of competition- build relationships with users-

usability and satisfaction.




Conclusion

THE TRANSFORMATION OF IS

"we used to do it to them:" the systems

groups (EDP) required end users to obey strict

rules for getting changes made to the systems,

submitting job requests, etc.

± Mainframes, transmittals, batch processing, punch

cards, data entry clerks ± EFFICIENCY

69

Prof. Rushen Chahal



Conclusion

"Next, we did it for them:" systems groups moved to service.

± Mainframes, large mini's with custom systems built by IS

without user involvement

± EFFECTIVENESS, Efficiency

"Now, we do it with them:" the partnership

± Mini's, PC, Windows, application packages

± USABILITY, Effectiveness, Efficiency




Conclusion

"We are moving toward teach them how to do

it themselves:"

± UNIX environments, work stations, PC, LANs,

application packages

± SATISFACTION, USABILITY, Effectiveness, efficiency

Documents

Structure of Management Information Systems