CS 105P

Management Information Systems

Management Information Systems

This chapter is a very well written introduction to business management and what role computers have.

You should know the functions of a manager: (Planning, Organizing, Staffing, Directing, and Controlling) (Focus is based on where manager is in the pyramid.) (Upper level managers think in terms of years, mid level managers months, low level managers days.)
Why do computers flatten the pyramid?

Communication (Email, newsgroups, web publishing)
They empower workers (Can type your own letters, Can publish your own documents. Can produce your own videos...)
Not only empower you the worker, but your suppliers.

New management model. Flatten Pyramid. Span of control is larger 5-7 is now 10-12. Matrix organizations emerging.
Corporate culture is changing. (not just from intro of computers...) ("Give careful attention to selection and training of workers." Most workers need freedom to do their work. More complex they know it best. Need workers that can work independently.
Teamwork.
In the information age decisions are important. More decisions to be made. Effects of decisions is greater. Making the right decision often requires data. MIS can provide the data.
What is an MIS (Management Information System) (Integrated system including all functions. If it's missing one piece it's of less value. Can't have a system that produces the best answer based on all the data except labor relations. Or government regulation. Very few integrated systems. Why? Things change quickly. Not enough time. Cost. Don't want to write things down. How to take into account those unwritten policies no one wants to write down. There are lots of transaction processing systems, and inventory control systems.)
Decision Support Systems

Model the problem, represent it in the computer, what to do with subjective data?
independent vars
dependent vars
Use database of information.
Historical data still valid?
Complex interrelationships
Not the real world. How well does it map to the real world.
Don't base decisions on it. Additional information.

Yield management example. Business class and tourist. Less and more restrictions. Don't want to sell a cheep ticket if you can sell a more expensive ticket later.
How can you use a spreadsheet as a decision support tool? Use what-if scenarios. Here is an example.
Executive Support Systems. need to solve more abstract problems
Managing PCs

Same problem with managing PC's is being repeated with networks today.
We have an information center on campus. Computing services. WP, Web page development?
Cost of PC is 1/10 the total cost of owning a pc.

Companies have for awhile relied on software to run efficiently. This software was written in-house or purchased from a 3rd party. After awhile companies found themselves with a psychedelic mix of aging software. Given the difference in age and origin it doesn't work well together.
ERP is the evolution of materials resource planning (MRP). MRP was developed for manufactures. Included modules for,
- shop floor control
- inventory control
- purchasing/receiving
- (financial) general ledger
- (financial) accounts payable
- (financial) accounts receivable
As more modules were added to MRP it became know as ERP.
ERP software is generally used to automate and integrate corporate functions such as,
- human resource
- management/payroll
- materials management
- accounting
- manufacturing
- [sales force automation]
SAP, Oracle, and PeopleSoft are three main providers of ERP software.
The following quotes were taken from an article that was negative about ERP software's potential,
- "Responding to changes ... requires quick thinking, which isn't ERP's forte....Plant schedulers and planners make those decisions in their heads or resort to spreadsheets and the backs of envelopes."
- "...without understanding demand. ERP systems.."
- "Without intelligence. ERP systems let companies institute radical business process change. But they make dumb decisions."