1. Management Information Systems
CS208

2. Information System Overview
An information system is a collection of people, procedures, software, hardware, and data
Having sufficient information is crucial to an organization’s success
Computers can collect information and then use that information to help people make decisions

3. Management Levels
Top-level managers - responsible for strategic planning -- need highly summarized information
Mid-level managers - responsible for tactical planning -- need partially summarized information
Supervisors - responsible for operational matters -- need detailed day-to-day information

4. Information Flow by Management Level
Information needs are based on the level of management
Top level management
Strategic: future-oriented
Information summaries from both internal and external sources
Flow is up and from outside

5. Information Flow by Management Level
Middle management
Tactical: Historical
Summarized weekly or monthly information from internal sources
Flow is horizontal and vertical across functions
Supervisors
Operational: day-to-day
Detailed information from internal sources
Information flow is primarily vertical

6. Computer-Based Information Systems
There are four kinds of computer-based information systems:
Transaction Processing Systems
Management Information Systems
Decision Support Systems
Executive Information Systems

7. Transaction Processing System (TPS)
Performs routine transactions necessary to conduct business.
Records day-to-day transactions (operations) in a database
Maintains foundational data for the other information systems

8. File and Methods used in Transaction Processing
Files Used:
Master File – Permanent data records
Transaction File – Holding file that contains transactions (additions, deletions, and revisions) to be applied to the master file.
Methods Used:
Batch Processing – Transactions are collected over time and then processed all at once, as a “batch” to update the master file.
Online (Real-time) Processing – Each transactions is used to update the master file immediately.

9. Management Information Systems (MIS)
Collects and analyzes data from all departments.
Produces standardized reports in summarized, structured form
Designed to provide an organization's middle management with up-to-date information (such as financial reports, inventory, etc.) at any time.
Unlike transaction processing systems, which create databases, the MIS uses databases
DBMS is required to integrate data across functional areas

10. MIS Common Report Categories
Periodic - regular intervals, pre-determined format, consistent content
Exception - highlight unusual events
Demand - as opposed to periodic, only upon request

11. Decision Support System (DSS)
Helps provide answers to unexpected, non-recurring problems
Produces summaries of large amounts of data, filtered and synthesized to support strategic non-routine, decision-making
Combines data from TPS with analytical models or data analysis tools
Uses communications technologies, data, documents, knowledge and/or models to complete decision process tasks.

12. Sample DSS Analyses Sensitivity Analysis What-if Analysis
Study of effect that changes in one or more parts of a model have on other parts of the model
What-if Analysis
Checks impact of a change in the assumptions or other input data on the proposed solution
Goal-seeking Analysis
Finds the value of the inputs necessary to achieve a desired level of output

13. Executive Information System (EIS)
A special type of DSS that presents data so that it is easy to use by top executives without extensive training.
Provides corporate information, such as financial condition and market share, usually presented graphically so executives retrieve information by pointing to objects on the screen.
Has drill-down capability and access to key external data.

14. Executive Information System (EIS), continued
Information is presented in a very aggregate form so executives can quickly scan it for trends and anomalies
Addresses unstructured decision making through advanced graphics and communications.
Sourced both internally from TPS and MIS and from external sources
Gives senior management a broad company view, assists with strategic planning

15. Information Systems Summary
TPS
MIS
DSS
EIS
Repetetive
Linear Logic
Regular Reports
No Decision Support
Specialized Heuristics
Complicated Logic
No Regular Reports
Supports Decision Making