Page 35 - Information Management 3rd Edition

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Some information processed or gathered by each business function is only for those functions’ own use. However, there is also information that needs to be
supplied to the other functions for them to function effectively. An example of this is the financial function that has to supply information regarding the budget to all the other functions. Each function needs to draw up a budget and this cannot be done without getting guidelines regarding the financial situation. Another example is the human resources function which supplies all the other functions with information on the policies of the business. If you look at the information needs as described in Chapter 1, you will see that some of this information can be obtained internally from other functions. This information will be included in the MIS. Any confidential information will obviously not be available to the other functions and will only be available to the specific user.
One of the subsystems that can be found in an MIS is the decision support systems (DSS). The DSS is also a computer system designed to aid managers in the determining and evaluating of different courses of action. It uses special software to allow users to interact with a computer directly to help make decisions for solving complex and sometimes unstructured problems. It acquires data from a range of routine transactions of the business, analyses it by using advanced statistical techniques to create useful information and even narrows down different decision options to assist managers. The DSS has arisen from an ever-increasing need for information system support in non-routine, non-repetitive, uncertain situations
Chapter 2 – Information systems
the business’s current performance but also historical records. An MIS gathers relevant data and information from inside as well as outside the business. This data and information is processed and stored in a database. It is updated regularly and can be accessed by managers whenever needed. This information is also used for control purposes. An example could be a report for the month regarding the budget, noting where actual costs exceeded budgeted costs.
The MIS is specifically designed to use information technology to meet the information needs of lower and middle managers as they make a variety of decisions on a day-to-day basis. The MIS provides managers with information they need to carry out their tasks. It generates regular performance-monitoring information, maintains coordination and provides background information about business activities.
ThePMISdoesnrotdireectlysuppo-rtthepdecision-muakingprocbess,butitmakes information available that managers use to base their decisions on. The MIS usually provides the internal information of the business about its past performance. The system itself does not do any forecasting. Databases from which the information is gathered must be updated first before the MIS can provide the information to managers. This can cause a delay in the decision-making process. Computer- generated reports are an important part of the MIS.
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The subsystems are the marketing, production, purchasing and supply chain, human resources, financial and public relations information systems. The data and information regarding the operations of these functions are recorded and transferred to a database. Each function supplies the information regarding its own operations. The information regarding each function referred to here was discussed in Chapter 1.
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