2. Business Processes and
Information Systems
The Order Fulfillment Process
Fulfilling a customer order involves a complex set of steps that requires
the close coordination of the sales, accounting, and manufacturing
functions.
3. Types of MIS
Information Systems are developed around the functional
areas of business like marketing, finance etc. and are also
termed as Functional Information Systems.
These may be as
•Financial Information System
•Marketing Information System
•Personnel Information System
•Production Information System
and so on.
6. Financial Information System
Financial Information System provides financial information
to all financial managers within an organization and a
broader set of people who need to make better decisions.
Financial MIS performs the following functions:
•Makes financial data available on a timely basis to shorten
analysis turnaround time.
•Provides easy access to data for both financial and
non-financial users, often through the use of corporate
intranet .
•Integrates financial and operational information from
multiple sources, including the Internet, into a single MIS.
•Enables analysis of financial data along multiple dimensions-
time, geography, product, plant , customer etc.
•Analyzes historical and current financial activity.
•Monitors and controls the use of funds over time.
•For adhering to legal requirements
7. Financial Information System
Financial MIS aids managers in:
•Capital Budgeting Decisions
•Financing decisions
•Dividend decisions
•Current asset management
9. Financial Information System ( Contd.)
Financial MIS composes of the Inputs
1. Transaction Data: This data includes credit applications,
billing, payment vouchers, stock transfers, cheques,
journal and ledger entries etc.
2. Financial Intelligence : This data is collected from banks,
government, stock markets, etc. which is processed to
determine its impact on the company’s economy.
3. Organizational Plan: Another important input to
Financial MIS, that portrays the objectives of the
company. This needs to be reflected in the output of
Financial MIS, which may be in the form of financial plans.
10. Financial Information System
Database
Of External
Data •Sorted Data
•Forecasts
Business Transaction Database FINANCIAL •Management Ratios
Transactions Processing From MIS
System TPS •Audit &
Control
•Other Financial
Decisions& Plans
Datawarehouse
•Financial DSS/EIS
12. Marketing MIS
It is the MIS that supports managerial activities in marketing as product
development, distribution, pricing decisions, and promotional effectiveness.
The Marketing MIS help managers in marketing activities of:
• Customer Identification: who, when, where, in what quantity,etc.
• Purchase motivation factors: social, economical,
psychological factors of customers.
• Physical distribution: optimum integration of
transportation, warehousing, merchandising.
• Communication function: This function includes
decisions on advertising, personal selling,
sales promotion, publicity, packaging etc.
• Transaction functions : Activities that transfer the
title of ownership as order handling,
invoicing, billing, credit management, policy
& guarantee etc.
• Post transaction Function: Feedback, after sales
service support etc.
14. Marketing MIS
Database
Of External
Data
Marketing DSS
Transaction Database MARKETING
Business Processing From MIS
Transactions System TPS Marketing EIS
•Internet
Marketing ES
•CRM
Datawarehouse
15. Human Resource Management
Information System
Human Resource MIS are concerned with activities related to
employees and potential employees of the organization.
The HR functions that are facilitated by HRMIS are as:
•Manpower Planning
•Staffing
•Training & Development
•Performance evaluation
•Wage & Salary administration
•Separation activities
17. Manufacturing Management
Information System
Manufacturing or Production Information System provides
information on production/ operation activities of an
organization and thus facilitates the decision-making process
of production managers of the organization.
Manufacturing MIS facilitate decision making in areas as:
•Product Design: CAD, CAE
•Plant Location & Layout:
•Production Planning & Control:Routing, Scheduling,
Loading
•Quality Control:
19. MIS Characterstics
A Management Information System has the following
Characterstics:
•Systems Approach
MIS follows Systems approach i.e. MIS adopts wholistic
approach to the study of systems and its performance in the light of the
objective of the MIS. It takes comprehensive view or complete look at
the subsystems of the organization.
•Management Oriented
MIS should be designed in Top-down approach. MIS should be
derived from the overall business plan.
•Need based
MIS should cater to specific information needs of managers at
different levels I.e. for strategic planning level, management control
level, and operations control level.
20. MIS Characterstics( Contd.)
•Exception Based
MIS should be on Exception based reporting Principle and
deviation should be reported to decision maker at the required level.
•Future Oriented
MIS should not merely provide past information but
should provide information based on the future projections
based on which manager may initiate suitable action.
•Integrated
MIS should blend information from different departments or
constitute of different possible subsystems of the organization.
•Long Term Planning
MIS designers should have future objectives and
needs of the company in mind.
•Common Data Flow & Central Database