Fundamentals of management information system

8/9/2019 Fundamentals of management information system

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Management ConsultancyManagement Consultancy

Principles and EngagementsPrinciples and Engagements

E.B. Cabrera 2011 EditionE.B. Cabrera 2011 EditionChapter 28

Fundamentals of Managem

nformation !ystems"eporter# $aybee %ucito Bantang


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Basic Concepts

Data- plural form of datum which means a raw fagure from which conclusion can be drawn.

Information-data that have been processed and meaningful and useful to users.

System-entity consisting of interacting parts thacoordinated to achieve one or more common objor output or information.

Information System-is a framework in which the collected, processed, controlled and managed thstages in order to provide information to users.


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&hat is anagement

nformation !ystem'

!anagement Information System"!the means by which information isprovided for decision makers to allowto make and implement the necessar

decisions to optimi$e the interrelatioof the available resources to moste%ectively reach the organi$ation&s g


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SYSTEMSYSTEM

INPUT OUPROCESS

FEEDBACK


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INFORMATION SYSTEMINFORMATION SYSTEM

INPUT OUPROCESS

FEEDBACK

DATA INFO


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FUNCTIONS OF AN INFORMATION SYSTEMFUNCTIONS OF AN INFORMATION SYSTEM

INPUT OUTPUTPROCESS

FEEDBACK

INFORMATION SYSTEMINFORMATION SYSTEM

ENVIRONMENTENVIRONMENT

Customers SuppliersCustomers Suppliers

RegulatorRegulator Sto!"#ol$ers CompetitorsSto!"#ol$ers CompetitorsAge%!iesAge%!ies

OR&ANI'ATIONOR&ANI'ATION


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To provide accurate, timmeaningful data for maplanning, analysis, contdecision making to optimperformance of the orga

In short, it must enhancmanagement of the org

(b)ecti*e of !


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+alue ,dded through mpro*e

!

1. Better integration of information-producing activities leads to ithat is more complete and relevant.

2. Managers are freed from loer-level decisions and moved to hpro!lems.

". #ecisions are made more timely due to prompt availa!ility of i

$. #ecisions are made ith increased con%dence derived from imintegrity of underlying data.

&. Information technology and resources are focused here it ill

good.


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Properties of an Effecti*e

and Efficient !

1. 'elevance 2. (ccuracy

". )ompleteness

$. Timeliness

&. )onciseness

*. +lei!ility

. conomy


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-uidelines in esigning an Efficient

Management nformation !ystem

1. (pply resources to only those pro!lhave !een identi%ed.

2. /ork ith facts, not opinion.

". /ork on causes, not e0ects.

$. (ctivities should !e as simple as po

&. )apture data as close to the sourcepossi!le.


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-uidelines in esigning an Efficient

Management nformation !ystem

*. eep the user in mind.. Involve people ho ill !e a0ected !y any c

. 3elect e4uipment compati!le to 5o! re4uireand design the system to maimize the us

e4uipment.6. (lays follo up, evaluate and take correct

measures, if necessary.


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M! e*elopment

1. #e%ne the main secondary goals and

priorities.

2. Identify those factors that are critical success of each goal

". #esign a systems structure to achievedesired goals and priorities.

$. Implement the system.

&. Monitor and control the system.


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.ecision Elements of a /ypic

Business (rgani0ation

Top eecutives- strategic planning, overall policy makin

7ersonnel managers- recruiting, selection, compensatio Marketing managers- market research, advertising, dis

logistics, pricing policies

Manufacturing managers-

purchasing, product

transformation logistics,

production policies


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Business nformation

!ystem

7rimary Management Information 3u!system

1.8ogistics Information 3ystem

2.+inancial Information 3ystem

".7ersonnel Information 3ystem


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Business nformation

!ystem

3econdary Management Information 3u!syst.'ogistics Information System

1.7urchasing 3u!systems

a9:endor selection

!9;rderingc9 Transportation

d9'eceiving

e9Inspection

f9 )ontrol


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Business nformation

!ystem

2. 7roduction 3u!systemsa9 3cheduling

!9 #ispatching

c9 ;peration

d9 Inspectione9 7ackaging

f9 3hipping

g9 )ontrol


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Business nformation

!ystem

2. Marketing 3u!systemsa9 7roduct 3tatistics

!9 )ustomer


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Business nformation

!ystem

2. ;rder-processing 3u!systema9 ;riginating

!9 diting

c9 7ricing

d9 Billinge9 )redit and collection

f9 )ontrol


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Business nformation

!ystem

3econdary Management Information 3u!systems

(. )inancial Information System+inancial 3u!systems

1. Treasury

2.+inancial accounting

".Managerial=)ost accounting

$. Ta accounting

&.7ayroll

*.7lanning

.)ontrol


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Business nformation

!ystem

3econdary Management Information 3u!system

(. *ersonnel Information System7ersonnel 3u!systems1. )andidate selection

2. mployee histories

". Manpoer distri!ution

$. 'egulatory compliance&. Training

*. /elfare and safety

. )ompensation

. )ontrol


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(ther important secondary

subsystems#

1. 'esearch and development

information su!system

2. 3trategic planning and policy makin

su!system.


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Management ConsultancyManagement Consultancy

Principles and EngagementsPrinciples and Engagements

E.B. Cabrera 2011 EditionE.B. Cabrera 2011 EditionChapter 2

,ccounting nformation !ys"eporter# $aybee %ucito Bantang


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Basic Conceptsccounting Information System

-subsystem of the )inancial Information system

the orderly arrangement of procedures , perso

records, e+uipment, and devices utili$ed for a

orderly gathering, processing and reporting of

and other information essential to the ecient

and evaluation of the activities of a business e


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Basic Conceptsccounting Information System

-is the information subsystem within an organ

that accumulates information from the entity&s

subsystems and communicates it to the organi

information processing subsystem.


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Objective of AIS:

-To collect, process and provide financial information needed by man

other interested parties in conducting and evaluating the business acti

Essential Elements of an AIS

1.Procedures

2.Statement of accounting policies and standards

3.Records and reports

.!oo""eeping system#.Personnel

$.%&uipment and devices


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Characteristics of an Effective AIS

1. 'dentify properly and record all valid transactions.

2. (escribe the transactions on a timely basis and in sufficient detail proper classification of transactions for financing reporting.

3. (etermine the time period in )hich the transaction occurred so as

recording in the proper accounting period.

. *easure the value of the transaction in manner that permits their r

their proper monetary value in the financial statement.#. Permit proper presentation of the transactions and related re&uired

in the financial statement.

$. +ssist management in planning, controlling and decision ma"ing.


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The AIS should possess the following

Characteristics:

1. ompatibility to the companys organiation.2. Provision of necessary reports.

3. Provision for controls.

. +de&uacy of provision for audit trail.

#. Presence of &ualified and competent personne$. Simplicity, fle/ibility, and favorable cost0ben

relationship.


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THA! "O#

11


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"elationship of ,! M!

Sales(Mar"eti%g Pro$u!tio% AIS

MIS

Fi%a%!e

Or$er e%tr(Sale

Billi%g(A)Re!)(C

Pro$u!tio%

&e%eral le$ger

Paroll

I%*e%tor

Pur!#asi%g(A)

E l f ,! ! b t


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E3amples of ,! !ubsystems

4Merchandising5

o Plannin 0ontrol, 'nvestment, or Production cles reflected

Inventor$

S$stem

%eneral&edger

S$stem

Order entr$

SalesS$stem

'illing0A. (eceivableCash (eceipts

S$stem

)ur

A* )CaS

Hu(es

,ana)aS$

Revenue

ycle

%/penditure

ycle

Shipping Receiving

Ext/Fin. reporting

Tax & req. reporting

Internal reporting

/h ( ti l ! t


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/he (perational !ystem o

Manufacturing F-acilities

&abor.humanservices/

+ata

-unds

Ac0uiring

,aterials

)roducing

-inished

%oods

Storing

-inished

%oods

Shippin

-inished

%oods

SupportingOperations

AIS

,aterial

from

Supplier

Manufacturing Firm

+ata and information flow

)h$sical flows

E l f ,! ! b t


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E3amples of ,! !ubsystemProduction Cycle

Inventor$S$stem

Human(esourc,anagem

)a$rolS$stem

%eneral

&edger

S$stem

)

)roduction

S$stem

Production ycle

o Revenue, and 'nvestment ycles reflected here


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(b)ecti*es and 6sers of ,!

Support day-to-day operations

Transaction processing

Support Internal Decision-!aking

Trend (nalyses

>uantitative ? >ualitative #ata @on-transactional sources

elp fulll Stewardship ole


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"esources "e7uired for an ,

*rocessor"s#/ Manual or )omputer Data (ase"s#/ #ata 'epositories

*rocedures/ Manual or

)omputerized Input01utput Devices

!iscellaneous esources


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"oles of ,ccountants &ith

"espect to an ,!

)inancial accountan%nancial information fodecision-making in accith A((7

!anagerial accountprepare %nancial inforinternal decision-maki


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"oles of ,ccountants &ith

"espect to an ,!

uditors - evaluate coattest to the fairness o%nancial statements.

ccounting manageall accounting activitie

2a3 specialists - devinformation that reeco!ligations of the %rm

4onsultants - devisespeci%cations for the (

Fundamentals of management information system

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