1. k MANAGEMENT INFORMATION SYSTEMS

2. i Definition of key terms Management in business and organizations means to coordinate thebusiness efforts of people to accomplish goals and objectives using availableobjectives resources efficiently and effectively. Management comprises of planning, organizing, staffing, leading or directing, andplanningorganizingstaffingleading controlling an organization or initiative to accomplish a goal.organization Information, in its most restricted technical sense, is a sequencesequence of symbols that can be interpreted as a message being conveyed.symbolsmessageconveyed information is "Knowledge communicated or received concerning a particular fact or circumstance", or rather, information is an answer to a question The term system may be defined as set of inter related elements that operate collectively to accomplish some common purpose or goal.

3. k A management information system (MIS) provides information that organizations require to manage themselves efficiently and effectively. Management information systems are typically computer systems used for managing. The five primary components: 1. Hardware, 2. Software, 3. Data (information for decision making), 4. Procedures (design, development and documentation), and 5. People (individuals, groups, or organizations). Management information systems are distinct from other information systems because they are used to analyze and facilitate strategic and operational activities

4. j Academically, the term is commonly used to refer to the study of how individuals, groups, and organizations evaluate, design, implement, manage, and utilize systems to generate information to improve efficiency and effectiveness of decision making. They include systems termed as decision support systems, expert systems, and executive information systems.

5. f Most business schools (or colleges of business administration within universities) have a MIS department, alongside departments of accounting, finance, management, marketing, etc. A management information system gives the business managers the information that they need to make decisions. Early business computers were used for simple operations such as tracking inventory, billing, sales, or payroll data, with little detail or structure.

6. h Over time, these computer applications became more complex, hardware storage capacities grew, and technologies improved for connecting previously isolated applications. As more data was stored and linked, managers sought greater abstraction as well as greater detail with the aim of creating significant management reports from the raw, stored data.

7. g Management Information System provides managers with information about sales, inventories, and other data that would help in managing the enterprise. Over time, the term broadened to include: decision support systems, resource management and human resource management, enterprise resource planning (ERP), enterprise performance management (EPM), supply chain management (SCM), customer relationship management (CRM), project management and database retrieval applications

8. NOTE: Enterprise resource planning (ERP) is business management software usually a suite of integrated applications that a company can use to store and manage data from every stage of business, including: Product planning, cost and development Manufacturing Marketing and sales Inventory management Shipping and payment

9. In other words; Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate back office functions. ERP software integrates all facets of an operation, including product planning, development, manufacturing processes, sales and marketing.

10. Enterprise Performance Management (EPM) is a management field of Business Performance Management which considers the visibility of operations in a closed-loop model across all facets of the enterprise. There are several emerging domains in the EPM field which are being driven by corporate initiatives, academic research, and commercial approaches. These include: Strategy Formulation Business Planning and Forecasting Financial Management Supply Chain Effectiveness

11. 0 Based on the mission and vision of an organization, different strategic needs may drive how EPM domains are leveraged and promoted within an organization. For example a professional services firm based in Canada may view the need to have effective and transparent supply chain operations much differently than a clothing manufacturer with operations throughout the world enterprise performance management (EPM) solutions helps you to translate your corporate goals into department-specific metrics that everyone can understand – for increased accountability and control, streamlined processes, and strategy-guided, risk- aware plans.

12. 0 Elevate performance – from high-level objectives to operational metrics Accelerate and improve planning, budgeting, and forecasting Automate your processes for quicker, more accurate financial reporting Improve decision making to drive profitability and fuel growth Transform your performance management processes by leveraging mobile devices

13. 0 Management information systems provide a variety of information products to managers. Periodic Scheduled Reports are a traditional form of providing information to managers via a specified format designed to provide managers with information on a regular basis. Exception Reports are produced only when exceptional conditions occur. Exception reporting reduces information overload instead of overwhelming decision makers with periodic detailed reports of business activity

14. Demand Reports and Responses are available when the managers require immediate access to vital information. Web browsers, DBMS query languages, and report generators enable managers to get this information and not force them to wait for periodic detailed reports of business activity. Push Reporting is information that is pushed directly to the manager’s respective networked workstation. Web casting software is being more frequently utilized to broadcast selective reports and other vital information.

15. i Most management information systems specialize in particular commercial and industrial sectors, aspects of the enterprise, or management substructure. Management information systems (MIS), produce fixed, regularly scheduled reports based on data extracted and summarized from the firm’s underlying transaction processing systems to middle and operational level managers to identify and inform structured and semi-structured decision problems.transaction processing systems Decision Support Systems (DSS) are computer program applications used by middle and higher management to compile information from a wide range of sources to support problem solving and decision making. DSS is majorly used for semi-structured and unstructured decision problems.Decision Support Systems

16. i Executive Information Systems (EIS) is a reporting tool that provides quick access to summarized reports coming from all company levels and departments such as accounting, human resources and operations.Executive Information Systems Marketing Information Systems (MIS) are Management Information Systems designed specifically for managing the marketing aspects of the business.Marketing Information Systemsmarketing

17. i Office Automation Systems (OAS) support communication and productivity in the enterprise by automating work flow and eliminating bottlenecks. OAS may be implemented at any and all levels of management.Office Automation Systems School Information Management Systems (SIMS) cover school administration, and often including teaching and learning materials.School Information Management Systems Enterprise Resource Planning (ERP) facilitates the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholderEnterprise Resource Planning

18. i Advantages Companies are able to highlight their strengths and weaknesses due to the presence of revenue reports, employees' performance record etc. The identification of these aspects can help the company improve their business processes and operations. The availability of the customer data and feedback can help the company to align their business processes according to the needs of the customers.

19. i The effective management of customer data can help the company to perform direct marketing and promotion activities. Giving an overall picture of the company and acting as a communication and planning tool. Management Information Systems can help a company gain a competitive advantage. Competitive advantage is a firm’s ability to do something better, faster, cheaper, or uniquely, when compared with rival firms in the market.

20. i Enterprise systems—also known as enterprise resource planning (ERP) systems—provide integrated software modules and a unified database that personnel use to plan, manage, and control core business processes across multiple locations. Modules of ERP systems may include finance, accounting, marketing, human resources, production, inventory management, and distribution.enterprise resource planning Supply chain management (SCM) systems enable more efficient management of the supply chain by integrating the links in a supply chain. This may include suppliers, manufacturers, wholesalers, retailers, and final customers.Supply chain management

21. i Customer relationship management (CRM) systems help businesses manage relationships with potential and current customers and business partners across marketing, sales, and service.Customer relationship management Knowledge management system (KMS) helps organizations facilitate the collection, recording, organization, retrieval, and dissemination of knowledge. This may include documents, accounting records, unrecorded procedures, practices, and skills.Knowledge management

22. i Note. Knowledge management (KM) as a system covers the process of knowledge creation and acquisition from internal processes and the external world. The collected knowledge is incorporated in organizational policies and procedures, and then disseminated to the stakeholders

23. i Reasons to have a good management information system 1. To control the creation and growth of records Despite decades of using various non-paper storage media, the amount of paper in our offices continues to escalate. An effective records information system addresses both creation control (limits the generation of records or copies not required to operate the business) and records retention (a system for destroying useless records or retiring inactive records), thus stabilizing the growth of records in all formats.

24. i 2.To reduce operating costs Recordkeeping requires administrative dollars for filing equipment, space in offices, and staffing to maintain an organized filing system (or to search for lost records when there is no organized system). 3. To improve efficiency and productivity Time spent searching for missing or misfiled records is non-productive. A good records management program (e.g. a document system) can help any organization upgrade its recordkeeping systems so that information retrieval is enhanced, with corresponding improvements in office efficiency and productivity.

25. i 4. To assimilate new records management technologies A good records management program provides an organization with the capability to assimilate new technologies and take advantage of their many benefits. Investments in new computer systems whether this is financial, business or otherwise, don't solve filing problems unless current manual recordkeeping or bookkeeping systems are analyzed (and occasionally, overhauled) before automation is applied

26. i 5. To ensure regulatory compliance In terms of recordkeeping requirements, China is a heavily regulated country. These laws can create major compliance problems for businesses and government agencies since they can be difficult to locate, interpret and apply. 6. To minimize litigation risks Business organizations implement management information systems and programs in order to reduce the risks associated with litigation and potential penalties.

27. i This can be equally true in Government agencies. For example, a consistently applied records management program can reduce the liabilities associated with document disposal by providing for their systematic, routine disposal in the normal course of business. 7. To safeguard vital information Every organization, public or private, needs a comprehensive program for protecting its vital records and information from catastrophe or disaster, because every organization is vulnerable to loss.

28. i 8. To support better management decision making In today's business environment, the manager that has the relevant data first often wins, either by making the decision ahead of the competition, or by making a better, more informed decision. A good management information system can help ensure that managers and executives have the information they need when they need it

29. i 9. To preserve the corporate memory An organization's files, records and financial data contain its institutional memory, an irreplaceable asset that is often overlooked. Every business day, you create the records, which could become background data for future management decisions and planning. 10. To foster professionalism in running the business A business office with files, documents and financial data askew, stacked on top of file cabinets and in boxes everywhere, creates a poor working environment.

30. k The perceptions of customers and the public, and "image" and "morale" of the staff, though hard to quantify in cost-benefit terms, may be among the best reasons to establish a good management information system

31. Next lecture: Information systems and business framework.