Management

Management InformationSystemsComptroller’s HandbookMay 1995r4 dM-MISComptroller of the CurrencyAdministrator of National BanksMComptroller's Handbook i Management Information SystemsManagementInformation Systems Table of ContentsIntroduction 1Background 1Risks Associated with MIS 3Assessing Vulnerability to MIS Risk 4Achieving Sound MIS 5MIS Reviews 6Examination Objectives 9Examination Procedures 10Internal Control Questionnaire 17Purpose 17MIS Policies or Practices 17MIS Development 18User Training and Instructions 19

Communication 20Audit 20Conclusion 21Verification Procedures 22Comptroller's Handbook 1 Management Information SystemsManagementInformation Systems IntroductionBackgroundA management information system (MIS) is a system or process that providesthe information necessary to manage an organization effectively. MIS and theinformation it generates are generally considered essential components ofprudent and reasonable business decisions.The importance of maintaining a consistent approach to the development,use, and review of MIS systems within the institution must be an ongoingconcern of both bank management and OCC examiners. MIS should have aclearly defined framework of guidelines, policies or practices, standards, andprocedures for the organization. These should be followed throughout theinstitution in the development, maintenance, and use of all MIS.MIS is viewed and used at many levels by management. It should besupportive of the institution's longer term strategic goals and objectives. Tothe other extreme it is also those everyday financial accounting systems thatare used to ensure basic control is maintained over financial recordkeepingactivities.Financial accounting systems and subsystems are just one type of institutional

MIS. Financial accounting systems are an important functional element or partof the total MIS structure. However, they are more narrowly focused on theinternal balancing of an institution's books to the general ledger and otherfinancial accounting subsystems. For example, accrual adjustments,reconciling and correcting entries used to reconcile the financial systems tothe general ledger are not always immediately entered into other MIS systems.Accordingly, although MIS and accounting reconcilement totals for relatedlistings and activities should be similar, they may not necessarily balance.An institution's MIS should be designed to achieve the following goals:• Enhance communication among employees.• Deliver complex material throughout the institution.• Provide an objective system for recording and aggregating information.Management Information Systems 2 Comptroller's Handbook• Reduce expenses related to labor-intensive manual activities.• Support the organization's strategic goals and direction.Because MIS supplies decision makers with facts, it supports and enhances theoverall decision making process. MIS also enhances job performancethroughout an institution. At the most senior levels, it provides the data andinformation to help the board and management make strategic decisions. Atother levels, MIS provides the means through which the institution's activitiesare monitored and information is distributed to management, employees, andcustomers.Effective MIS should ensure the appropriate presentation formats and timeframes required by operations and senior management are met. MIS can be

maintained and developed by either manual or automated systems or acombination of both. It should always be sufficient to meet an institution'sunique business goals and objectives. The effective deliveries of aninstitution's products and services are supported by the MIS. These systemsshould be accessible and useable at all appropriate levels of the organization.MIS is a critical component of the institution's overall risk managementstrategy. MIS supports management's ability to perform such reviews. MISshould be used to recognize, monitor, measure, limit, and manage risks. Riskmanagement involves four main elements:• Policies or practices.• Operational processes.• Staff and management.• Feedback devices.Frequently, operational processes and feedback devices are intertwined andcannot easily be viewed separately. The most efficient and useable MISshould be both operational and informational. As such, management can useMIS to measure performance, manage resources, and help an institutioncomply with regulatory requirements. One example of this would be themanaging and reporting of loans to insiders. MIS can also be used bymanagement to provide feedback on the effectiveness of risk controls.Controls are developed to support the proper management of risk throughthe institution's policies or practices, operational processes, and theassignment of duties and responsibilities to staff and managers.Comptroller's Handbook 3 Management Information Systems

Technology advances have increased both the availability and volume ofinformation management and the directors have available for both planningand decision making. Correspondingly, technology also increases thepotential for inaccurate reporting and flawed decision making. Because datacan be extracted from many financial and transaction systems, appropriatecontrol procedures must be set up to ensure that information is correct andrelevant. In addition, since MIS often originates from multiple equipmentplatforms including mainframes, minicomputers, and microcomputers, controlsmust ensure that systems on smaller computers have processing controls thatare as well defined and as effective as those commonly found on thetraditionally larger mainframe systems.All institutions must set up a framework of sound fundamental principles thatidentify risk, establish controls, and provide for effective MIS review andmonitoring systems throughout the organization. Commonly, an organizationmay choose to establish and express these sound principles in writing. TheOCC fully endorses and supports placing these principles in writing toenhance effective communications throughout the institution. If however,management follows sound fundamental principles and governs the risk in theMIS Review area, a written policy is not required by the OCC. If soundprinciples are not effectively practiced, the OCC may require management toestablish written MIS policies to formally communicate risk parameters andcontrols in this area.Sound fundamental principles for MIS review include proper internal controls,operating procedures and safeguards, and audit coverage. These principles

are explained throughout this booklet.Risks Associated With MISRisk reflects the potential, the likelihood, or the expectation of events thatcould adversely affect earnings or capital. Management uses MIS to help inthe assessment of risk within an institution. Management decisions basedupon ineffective, inaccurate, or incomplete MIS may increase risk in a numberof areas such as credit quality, liquidity, market/pricing, interest rate, or foreigncurrency. A flawed MIS causes operational risks and can adversely affect anorganization's monitoring of its fiduciary, consumer, fair lending, Bank SecrecyAct, or other compliance-related activities.Since management requires information to assess and monitor performance atall levels of the organization, MIS risk can extend to all levels of theManagement Information Systems 4 Comptroller's Handbookoperations. Additionally, poorly programmed or non-secure systems in whichdata can be manipulated and/or systems requiring ongoing repairs can easilydisrupt routine work flow and can lead to incorrect decisions or impairedplanning.Assessing Vulnerability To MIS RiskTo function effectively as an interacting, interrelated, and interdependentfeedback tool for management and staff, MIS must be "useable." The fiveelements of a useable MIS system are: timeliness, accuracy, consistency,completeness, and relevance. The usefulness of MIS is hindered wheneverone or more of these elements is compromised.Timeliness

To simplify prompt decision making, an institution's MIS should be capable ofproviding and distributing current information to appropriate users.Information systems should be designed to expedite reporting of information.The system should be able to quickly collect and edit data, summarize results,and be able to adjust and correct errors promptly.AccuracyA sound system of automated and manual internal controls must existthroughout all information systems processing activities. Information shouldreceive appropriate editing, balancing, and internal control checks. Acomprehensive internal and external audit program should be employed toensure the adequacy of internal controls.ConsistencyTo be reliable, data should be processed and compiled consistently anduniformly. Variations in how data is collected and reported can distortinformation and trend analysis. In addition, because data collection andreporting processes will change over time, management must establish soundprocedures to allow for systems changes. These procedures should be welldefined and documented, clearly communicated to appropriate employees,and should include an effective monitoring system.Comptroller's Handbook 5 Management Information SystemsCompletenessDecision makers need complete and pertinent information in a summarizedform. Reports should be designed to eliminate clutter and voluminous detail,thereby avoiding "information overload."

RelevanceInformation provided to management must be relevant. Information that isinappropriate, unnecessary, or too detailed for effective decision making hasno value. MIS must be appropriate to support the management level using it.The relevance and level of detail provided through MIS systems directlycorrelate to what is needed by the board of directors, executive management,departmental or area mid-level managers, etc. in the performance of theirjobs.Achieving Sound MISThe development of sound MIS is the result of the development andenforcement of a culture of system ownership. An "owner" is a system userwho knows current customer and constituent needs and also has budgetauthority to fund new projects. Building "ownership" promotes pride ininstitution processes and helps ensure accountability.Although MIS does not necessarily reduce expenses, the development ofmeaningful systems, and their proper use, will lessen the probability thaterroneous decisions will be made because of inaccurate or untimelyinformation. Erroneous decisions invariably misallocate and/or wasteresources. This may result in an adverse impact on earnings and/or capital.MIS which meets the five elements of useability is a critical ingredient to aninstitution's short- and long-range planning efforts. To achieve sound MIS, theorganization's planning process should include consideration of MIS needs atboth the tactical and strategic levels. For example, at a tactical level MISsystems and report output should support the annual operating plan and

budgetary processes. They should also be used in support of the long termstrategic MIS and business planning initiatives. Without the development ofan effective MIS, it is more difficult for management to measure and monitorthe success of new initiatives and the progress of ongoing projects. Twocommon examples of this would be the management of mergers andacquisitions or the continuing development and the introduction of newproducts and services.Management Information Systems 6 Comptroller's HandbookManagement needs to ensure that MIS systems are developed according to asound methodology that encompasses the following phases:• Appropriate analysis of system alternatives, approval points as thesystem is developed or acquired, and task organization.• Program development and negotiation of contracts with equipment andsoftware vendors.• Development of user instructions, training, and testing of the system.• Installation and maintenance of the system.Management should also consider use of "project management techniques" tomonitor progress as the MIS system is being developed. Internal controlsmust be woven into the processes and periodically reviewed by auditors.Management also should ensure that managers and staff receive initial andongoing training in MIS. In addition, user manuals should be available andprovide the following information:• A brief description of the application or system.• Input instructions, including collection points and times to send

updated information.• Balancing and reconciliation procedures.• A complete listing of output reports, including samples.Depending on the size and complexity of its MIS system, an institution mayneed to use different manuals for different users such as first-level users, unitmanagers, and programmers.MIS ReviewsBy its very nature, management information is designed to meet the uniqueneeds of individual institutions. As a result, MIS requirements will varydepending on the size and complexity of the operations. For example,systems suitable for community sized institutions will not necessarily beadequate for larger institutions. However, basic information needs orrequirements are similar in all financial institutions regardless of size. Thecomplexity of the operations and/or activities, together with institution size,point to the need for MIS of varying degrees of complexity to support thedecision-making processes. Examiners should base MIS reviews on anevaluation of whether the system(s) provide management and directors withthe information necessary to guide operations, support timely decisionComptroller's Handbook 7 Management Information Systemsmaking, and help management monitor progress toward reaching institutionalgoals and objectives. Although examiners should encourage management todevelop sound information systems, they also should be reasonable in theirexpectations about what constitutes suitable MIS.Examiner MIS reviews are normally focused on a specific area of activity, on a

clearly identifiable departmental or functional basis, or as a part of the activitybeing examined within a larger department.During the examination, the MIS review should occur at both a macro (bigpicture) level and also at the micro (functional/product oriented view of thebusiness) level. The examiner-in-charge of the MIS-review program shouldlook at the useability and effectiveness of the corporate-wide MIS structure.The examiner should also collect MIS related observations and informationfrom the examiners-in-charge of the other areas under review. It would bevery difficult for one examiner to attempt to perform a detailed MIS review forall of an organization's functional and operational areas of activity. It ispractical and reasonable, however, to have this lead examiner coordinate andconsolidate the MIS reviews from the other examination areas. The MISrelated feedback received from other area examiners provides important andpractical input to the MIS review examiner. The consolidation, coordination,and analysis of this MIS feedback can be used to reach supportable macrolevelconclusions and recommendations for corporate-wide MIS activities.MIS reviews in the functional or product review areas generally should beperformed by an examiner who is considered to be a subject matter expert(SME) in the area of activities or operations that are being supported by theMIS systems or processes under review. The SME must have a thorough andcomplete understanding of the baseline "business" supported by the MISsystem(s) under review. A solid understanding of the business is fundamentalto the completion of a meaningful MIS review. The decision regarding theoverall quality and effectiveness of MIS generally should be made by the SME

for the area under review. The SME for each area where MIS is under reviewmust subsequently communicate MIS related findings, conclusions, andopinions to the examiner charged with the responsibility for the complete MISreview work program at that examination. This is clearly a collaborative effortamong area SMEs and the examiner charged with the responsibility for thisarea of review.The examiner coordinating the overall MIS review program should be acommercial examiner with broad experience and understanding whichManagement Information Systems 8 Comptroller's Handbookcovers many areas of organizational operations and activity. Alternatively, abank information systems (BIS) examiner could serve in this capacity. BISexaminers should be consulted whenever there are questions, issues, orconcerns surrounding the use of information systems (IS) or electronic dataprocessing (EDP) technology or the effectiveness of MIS-related internalcontrols in any automated area of the organization's activities.When performing MIS reviews, examiners should use the guidelines in thisbooklet to determine if management has:• Identified the institution's specific information requirements. Examinerscan focus on specific information needs related to issues such as assetquality, interest rate risk, regulatory reporting, and compliance. Ifpossible, the MIS review should be concurrent with examinations of thecommercial, consumer, fiduciary, and BIS activities. This wouldenhance interaction and communication among examiners.• Established effective reporting mechanisms to guide decisions. This

process includes reviewing controls that ensure that information isreliable, timely, accurate, and confidential.Comptroller's Handbook 9 Management Information SystemsManagementInformation Systems Examination Objectives1. To determine examination procedures necessary to achieve statedobjectives. (Note: BIS examiner support of commercial staff should beconsidered to enhance the depth of coverage for the MIS review if thereare known MIS issues or deficiencies which represent an undue level ofrisk and/or if MIS activities are particularly complex or sophisticated.)2. To determine if MIS policies or practices, processes, objectives, andinternal controls are adequate.3. To evaluate whether MIS applications provide users with timely,accurate, consistent, complete, and relevant information.4. To assess the types and level of risk associated with MIS and the qualityof controls over those risks.5. To determine whether MIS applications and enhancements to existingsystems adequately support corporate goals.6. To determine if MIS is being developed in compliance with anapproved corporate MIS policy or practice statement.7. To determine if management is committed to providing the resourcesneeded to develop the required MIS.8. To determine if officers are operating according to establishedguidelines.

9. To evaluate the scope and adequacy of audit activities.10. To initiate corrective action when policies or practices, processes,objectives, or internal controls are deficient.11. To determine if any additional work is needed to fulfill the examinationstrategy of the institution.Management Information Systems 10 Comptroller's HandbookManagementInformation Systems Examination Procedures1. Obtain the following documents:G Examination Report and related management responses.G Supervisory Monitoring System (SMS) comments.G MIS-related workpapers.G MIS-related audit/compliance reviews.G Institution's formal MIS policies and practicesframework/guidelines.G Board/MIS Committee-related minutes.G Organization charts detailing MIS responsibility.2. Review previous MIS review-related examination findings. Reviewmanagement's response to those findings.• Discuss with OCC examiners their perception of both theusefulness and applicability of the five MIS elements applicableto MIS systems that have been reviewed or are pending review.• Request copies of any reports which discuss either MISdeficiencies or strengths from the SME examiners.

• Determine the significance of deficiencies and set priorities forfollow-up investigations.3. Request and review copies of recent reports prepared by internal orexternal auditors of targeted MIS area(s). Determine the following:• The significance of MIS problems disclosed.• Recommendations provided for resolving MIS deficiencies.• Management's responses and whether corrective actions havebeen initiated and/or completed.• Audit follow-up activities.4. Review the Supervisory Strategy in the Supervisory Monitoring Systemand Scope Memorandum issued by the examiner-in-charge (EIC).5. Review reports for the MIS target area(s). Determine any materialchanges involving the usefulness of information and the five MISelements:Comptroller's Handbook 11 Management Information Systems• Timeliness.• Accuracy.• Consistency.• Completeness.• Relevance.6. Review MIS-related policies or practices and processes. Pay specialattention to any changes since the previous review.7. Review the Internal Control Questionnaire (ICQ) and determine whichquestions and/or sections should be used to support the examination's

MIS review.8. Based on the performance of the previous steps, and discussions withthe EIC and other appropriate supervisors, determine the scope of theexamination and set the objectives.Select from among the following examination procedures those steps thatare necessary to meet the objectives. Examinations may not require all ofthe steps.9. In conjunction with the EIC, identify each of the functional or productrelatedareas to be reviewed at this examination. Once the scope ofthe MIS review has been determined:• Provide copies of the MIS objectives, ICQs, and examinationprocedures to the SME examiner(s). Highlight those areas of MISreview that need to be addressed during the review.• The MIS review examiner will aggregate these observations,conclusions, and recommendations for each of the functionalareas addressed and incorporate them (as appropriate) into thefinal MIS Review conclusions.• If there are issues, observations, conclusions orrecommendations related to operational or technology aspectsof the institution's MIS, the commercial examiner shouldcoordinate these with the BIS examiner or BIS manager if the BISexaminer is not already involved in the MIS review process.Management Information Systems 12 Comptroller's Handbook10. For the selected sample of MIS system(s) and as appropriate to support

the defined scope, obtain:G User manual.G User training manual/instructions.G Project plan and related workpapers.G Sample of MIS Output Reports.G MIS project development/enhancement workpapers.11. As examination procedures are performed, test for compliance withestablished policies or practices and processes, and the existence ofappropriate internal control measures. Refer to the Internal ControlQuestionnaire as needed.12. Identify any area with inadequate supervision and/or undue risk.Discuss with the EIC the need to perform verification procedures. Asrequired, perform appropriate verification procedures.13. Select and review samples of ongoing executive reports for thetargeted MIS area(s). Determine whether:• The source of the information collected originates from theexpected business area.• Users of the information are the appropriate employees ormanagers within that area of activity.• The reports are ultimately distributed to the appropriate users.• The flow of these MIS information/reports is consistent with theresponsibilities reflected on the area's official organization chart.14. Determine the degree to which management and the staff in an areaunder review use MIS adequately and can support that the MIS being

used is appropriate and effective. Perform the following steps:• Discuss the five MIS elements with a senior manager(s) of therespective business unit.• Repeat this work step with an employee of the business unit whohas experience with the MIS system. (Note: This task is designedto determine if significant differences regarding the adequacy ofthe MIS exist among management and/or staff.)• Based on management's self-assessment of the useability of itsComptroller's Handbook 13 Management Information SystemsMIS, identify any planned activities to enhance, modify, orexpand these systems.15. Review minutes of the board of directors or committee(s) representingthe MIS target area(s) for a relevant time period.• Determine any areas where the "packet" of information does notseem to meet the five required elements of MIS.• Identify MIS issues for follow up.16. Request a copy of the development plan for significant MIS-relatedprojects. Examples could include executive information packets, creditapproval and take-out commitments, and funds management systems.• Review MIS project objectives and determine if they addressreported MIS weaknesses and meet business unit plans.• Review the project management technique used by managementand determine the status of important MIS projects.• Sample a significant MIS project(s) and determine whether it

follows an approved and implemented developmentmethodology that encompass the following phases:) Analysis of system alternatives, organization of tasks, andapproval of phases by system users/owners.) Program development and negotiation of contracts forequipment and software vendors.) Development of user instructions and system testingprocedures.) Installation and maintenance of the system.17. Select a system and request copies of relevant user instructions.Determine whether the guidelines are meaningful, easy to understand,and current.18. Determine whether user manuals provide adequate guidelines in thefollowing areas:• Complete description of the system.• Input instructions, including collection points and times tosendupdated information.Management Information Systems 14 Comptroller's Handbook• Balancing/reconciliation instructions.• Full listing of output reports, including sample formats.19. Obtain from the user manuals or the appropriate manager a work flowshowing data from the point-of-entry, through user processes, to finalproduct. The purpose of this task is to review how information isidentified, gathered, merged, manipulated, and presented. (Depending

on the organization's sophistication and system size, examiners mayhave to develop this work flow themselves.)• Discuss the area's MIS process with a representative sample ofusers and determine if they know where the data is coming from,where it is going, and how it gets there. A completeunderstanding would suggest the interviewees both use andunderstand the MIS system(s) supporting them.• Identify and note the points where adjustments to data occur.• Identify the department staff who are responsible for the MISrelatedinput data and reports; i.e., obtain a list of users, ad hocsoftware report writers, and the programmers involved.Compare this information with the material acquired in theimmediately preceding item.• Determine if preparation and reconciliation processes aresufficient to reasonably ensure integrity of information.• Determine if data adjustments are adequately documented.• Determine the effectiveness of ad hoc report-writing capabilitiesby reviewing the software vendor's user manual for datapresentations.• Through observation and interview determine useability,commonality, simplicity, and effectiveness of MIS reportssupporting the decision-making process for that area of activity.20. Review the lines of communication within the institution and determinethe effectiveness of MIS in the following areas:

• Communication paths linking executives, appropriate users, andinformation systems employees.• The flow of communication throughout the organization.• The documentation of which underlying MIS process supportsthe area's management.Comptroller's Handbook 15 Management Information Systems21. Determine the adequacy of MIS training including whether:• Training needs are properly identified and prioritized.• Training is organized in a formal classroom setting, is on-the-job,or is a combination of both approaches.• Training manuals or other material besides the user manual exist.• The training material adequately covers relevant and currentissues.• Training material is distributed to the appropriate employees.22. Determine whether established procedures are sufficient to ensure theproper testing of system developments or enhancements.23. Review whether final versions of software enhancements are installedin a controlled environment that promotes integrity of information.24 Determine if authorized processes are followed as data is acquired,merged, manipulated, and up-loaded from subsystems.25. Determine if the organization has had recent merger and/or acquisitionactivity. If it has, determine how management at the senior anddepartmental levels ensure that the resulting MIS supports and includesthe five MIS elements mentioned previously. If mergers and

acquisitions are frequent, determine whether:• Appropriate policies or practices and procedures have beendeveloped to support such activity from an integrated MISperspective.• The consolidation of MIS systems in a merger still meets therequirements of a quality MIS system.26. Review the results of your work, summarize your findings and initialconclusions, and discuss issues with an appropriate officer(s):• How well risks are controlled.• Identify significant control deficiencies.• Recommend action to remove deficiencies.• Obtain management's corrective commitments and firm timeframes.Management Information Systems 16 Comptroller's Handbook27. Prepare a memorandum of your conclusions and supporting findings.Identify suggested OCC follow-up actions.28. After a full discussion with the EIC prepare a memorandum anddocument work programs to facilitate future examinations.Comptroller's Handbook 17 Management Information SystemsManagementInformation Systems Internal Control QuestionnairePurposeThe following questionnaire is provided as a tool to assist examiners in theassessment, review, and documentation of the quality of the bank's MISrelated

internal controls, policies, practices, and procedures. However,because the nature and scope of MIS among banks, not all of the questionswill be relevant in every bank. Similarly, a negative answer to a particularquestion does not necessarily indicate a weakness in the bank's MIS orsurrounding internal controls if other equally effective or alternate controls arein place or there are other circumstances that mitigate the risk. Whereappropriate, documentation may include narrative descriptions, flowcharts,copies of forms used, and substantiation through observation or testing.Examiners should use their own judgement in deciding which internal controlquestions are relevant for a particular bank and whether a negative responseto any particular question should be considered a matter of supervisoryconcern.MIS Policies or PracticesYes No1. Has management developed and maintained a currentMIS policy or practice?2. Does the policy or practice provide guidance in thefollowing areas:• The definition, purpose, and fundamentalcomponents of MIS?• How to achieve effective two-waycommunication between management andemployees and specific avenues to maintain suchcommunication?

• Processes for initiating, developing, andcompleting MIS enhancements?• Guidelines for installing MIS enhancements in acontrolled change environment?Management Information Systems 18 Comptroller's HandbookYes No• Procedures for acquiring, merging, manipulating,and up-loading data to other systems?• Guidance for delineating the need forinternal/external audit coverage and testing?3. Is the policy or practice reviewed and updatedregularly?4. Is the policy or practice distributed to appropriateemployees?5. Does the policy or practice incorporate or require:• User approval for each phase?• Installation of MIS enhancements in a controlledchange environment?• Employees to follow policy or practice andprocesses as data is acquired, merged,manipulated, and up-loaded to other systems?• Employees to be sufficiently trained for newsystems and subsequent enhancements?MIS Development

6. Does the internal planning process consider andincorporate the importance of MIS at both the strategicand tactical level?• Are longer term strategic goals (beyond 2 years)supported by the development of appropriateMIS?• Are shorter term tactical goals over theimmediate one-to-two year period regularly andappropriately reviewed and monitored bymanagement?Comptroller's Handbook 19 Management Information SystemsYes No7. Do project objectives address reported MIS weaknessesand meet business unit requirements?8. Does management have a process for monitoringproject schedules?9. Does management use a project managementtechnique to monitor MIS development schedules?10. Does the organization use a consistent andstandardized approach or a structured methodology fordeveloping MIS projects?11. Does the methodology encompass the followingphases:• Analysis of the concept, organization of tasks,

completions of phases, and approvals?• Development of the program and contracting forequipment and software?• Development of user manuals and testing of thesystem?• Post-review of the system and futuremaintenance of it?User Training and Instructions12. Is the user manual for the MIS system(s) meaningful,easy to understand, and current?13. Do user manual requirements include the followinginformation:• A brief description of the application or system?• Input instructions, including collection points andtimes to send updated information?• Balancing/reconciliation instructions?Management Information Systems 20 Comptroller's HandbookYes No• A full listing of output reports, including samples?Communication14. Does management encourage communication lines tomeet the following objectives:• To effectively link executives, other appropriateusers, and information systems employees?

• To ensure effective two-way communicationbetween management and employees?• To document the MIS process?Audit15. Has the MIS target area(s) been internally or externallyaudited in the past two years?• If it has, review the scope of the audit, thefindings, and management's response(s) to thatreport.• If it hasn't, interview audit management todetermine what their plans regarding an auditreview of the MIS system are.Comptroller's Handbook 21 Management Information SystemsYes NoConclusion16. Can this information be considered adequate forevaluating internal control of MIS activities? Thisquestion presumes that there are no additionalsignificant internal auditing procedures, accountingcontrols, administrative controls, or other circumstancesthat impair any controls or mitigate any weaknessesnoted above. (Note: Explain negative answers briefly,and indicate conclusions as to their effect on specificexamination or verification procedures.)

17. Based on a composite evaluation, evidenced byanswers to the previous questions, internal control isconsidered to be _________ (good, medium, or bad).Management Information Systems 22 Comptroller's HandbookManagementInformation Systems Verification Procedures1. Using an appropriate sampling technique, select an additional MISproject(s) from the organization's development plan.• Review project objectives and determine if they address reportedMIS weaknesses and meet business unit plans.• Determine whether the MIS projects follow an approved andimplemented development methodology that encompass thefollowing phases:) Analysis of system alternatives, organization of tasks, andapproval of phases by system users/owners.) Program development and contracts for equipment andsoftware vendors.) Development of user instructions and testing the systemchanges.) Installation and maintenance of the system.2. Using the expanded sample, check copies of relevant user instructions.Verify whether the guidelines are meaningful, easy to understand, andcurrent.3. Test whether user manuals provide adequate guidelines in the following

areas:• Complete description of the system.• Input instructions, including collection points and times to sendupdated information.• Reconciliation instructions.• Full listing of output reports, including sample formats.4. Obtain work flows from the user manuals or managers showing datafrom the point-of-entry, through user processes, to final product.• Test the processes with users to determine if they know wherethe data is coming from, where it is going, and how it gets there.• Identify the points in which data adjustments occur.Comptroller's Handbook 23 Management Information Systems• Identify the individuals accountable for contributing to data andreports. Compare information with the material acquired in thestep immediately preceding this step.• Test the preparation and reconciliation processes to verify theintegrity of information.• Determine if data adjustments are adequately documented.5. Expand the sample by interviewing additional managers andexperienced unit employees to determine their perceptions of MIS.• Discuss MIS principles of timeliness, accuracy, consistency,completeness, and relevancy.• Determine if the employees hold any significant perceptions thatthe MIS is ineffective.

6. If available, obtain samples of important recurring executive reports forthe targeted MIS area(s). Test the following areas to determine if:• Information originates from the expected source business area.• Users of the information are the employees one would expectand the data is being used for correct purposes.• Distribution of the reports ultimately is supplied to all appropriateusers.7. Review a sample of audit workpapers relating to reports that disclosedmaterial MIS weaknesses.• Review documents to determine if auditors tested MIS activitiesagainst policies or practices and processes.• Test to determine if documented findings support the audit scopeand report comments.

ManagementInformation SystemResource ToolforBehavioral Health ProvidersAugust 14, 2006 Edition

© 2006, Behavioral Health Collaborative SolutionsThis tool was jointly funded by the Illinois Division ofMental Health and the Connecticut Department of MentalHealth and Addiction Services to aid providers in thosestates with gaining information system capacities.About the AuthorsBHCS is a collaboration of four national behavioralhealthcare consulting firms, offering the combined talentsof clinical, operational, and financial professionals withover fifteen years experience. Nationally known andrespected, BHCS member consultants have worked in all 50states to assist providers, state/county/local authorities,and managed care entities with adapting to and managing inan ever-changing behavioral healthcare environment.BHCS member consultants focus on operational practicalitiesand have an unflagging commitment to implementing solutionsthat work in the real world of day-to-day service delivery.With a complimentary client portfolio of authorities andproviders, BHCS member consultants appreciate the interestsand challenges faced by the entire behavioral healthfunding, management, and delivery system.For more information about selecting and implementingmanagement information systems, please visit our website:www.BHCollaborativeSolutions.com.

2Management Information System Resource ToolFor Behavioral Health ProvidersThe Management Information System Resource Tool is intended to be a starting pointfor organizations that are researching software applications with the intent of purchasinga new system or upgrading an existing system. It is designed to provide a list ofsoftware products used by behavioral health organizations that are known to theauthors, a list of the functions that should be considered in purchasing a softwareproduct, and limited information about the functionality of each software productincluded in the list. The Tool is not intended to be a fully comprehensive listing of allsoftware available to the behavioral healthcare industry and their functions, nor is it anendorsement (either positive or negative) of any of the products listed.When embarking on the process of looking for a software “system/application”, it isimportant to understand and be able to define exactly what “system” requirements orfunctions are needed for your organization. Often behavioral health organizations haveunique programs and services, and have funding/data requirements that may tax eventhe best software. Below are some basic guidelines to think about as your organizationbegins the process of looking for a software application.Size Matters:The size and complexity of your organization will have a direct impact, both on what youactually need and what you have to spend on a software application. Smallerorganizations with only a few users (or programs) can limit implementation andinfrastructure costs because they can operate with a few personal computers on a verysmall network. As an organization grows in size and complexity, more staff members

need access to the software and also need software with greater functionality to performtheir job duties. This requires much more information system infrastructure, morecomplex networking, communications between different sites, and processing power toallow multi-user scalability.The budget ranges below are general guidelines for the types of software and theirrange of functionality that would be most appropriate for organizations of the statedbudget size. In general, 1-4% of the organization’s annual budget is a good guideline forthe initial purchase price; therefore the range for a $10 million organization to considerspending is $100,000 to $400,000, or $10,000 to $40,000 per million. Conversely,organizations should not buy software that is priced well below these generalguidelines, or they risk purchasing an application that will not provide the functionalitynecessary to address the complexity of their organization. Organizations that are closeto one end of the budget range may wish to move up or down in the recommendedsoftware, depending upon anticipated growth and other factors.A note of caution: while it may sound optimal to move quickly to an integrated clinicalrecord, most organization’s first priority for software should be to manage billing,scheduling and staff productivity effectively. Organizations without much informationsystem experience may be best served by implementing billing and scheduling first, withany clinical record modules implemented in a subsequent phase.3Management Information System Resource ToolFor Behavioral Health Providers1. Budget Less than $3 million. If your organization operates on an annualbudget of less than $3 million, you most likely will be looking at a “canned”

practice management software application that requires relatively lowercost and resources to implement basic billing with a few additionalfeatures. These applications give you basic functionality for very specificneeds such as scheduling, basic client information (enough to bill), servicerecording and billing, consumer statements, and maybe some basicreports. These typically provide no business/financial functionality,(general ledger, payroll, etc.) These would need to be purchasedseparately.2. Budget of $3 – 7 million. An organization of this size may need additionalfunctionality above what a practice management package can offer. Theseadditional items could be more detailed enrollment or assessmentinformation about the consumer, data required by state payers to earngrants or contracts, accounts receivable management, and electronicmedical record/treatment planning capabilities. Again, business/financesoftware would most likely need to be purchased separately.3. Budget Over $7 million. Any organization operating in the behavioralhealthcare field with an annual budget of $7 million or more is large andmust take a more holistic approach to their management informationsystem needs. A large behavioral healthcare organization must havesound software applications implemented to deal with all the functionsrequired for day-to-day operations. This would include the ability torespond to and deal with external data requirements and reporting, andthe ability to produce internal management reporting to provide thenecessary information for managing the organization. These system

applications would not only provide the functions listed above, but alsoprovide tools to allow an organization to obtain an electronic medicalrecord, provide dynamic system warnings when problems occur, providealerts indicating when action is required, etc. As a larger organization,having a fully functional and integrated management information system isthe key to your success or failure in the future.IntegrationSome organizations consider buying “the best of breed” for each functional area, andthen trying to link this data together in some fashion. This usually tends to be veryexpensive, and consumes more staff resources than might be necessary if a fullycomprehensive software package was used. This approach does give the organizationthe best in each functional area, and with the right staffing resources, this can work wellfor the organization. Most behavioral healthcare organizations have limited resources,and often cannot afford the staffing to properly manage, maintain and provide training tostaff for multiple software applications.4Management Information System Resource ToolFor Behavioral Health ProvidersWhen purchasing a fully comprehensive package, organizations need to consider whatfunctionality they are or are not willing to give up in each area in order to achieve fullintegration of all their organizational processes.PricingCost is always a major consideration. Once you have identified the scope offunctionality your organization needs, you can begin to look at what different vendors

have to offer. Many of the practice management software applications that offer a morenarrow scope of functionality can be purchased “off the shelf” for a minimuminvestment. Obviously, the larger your organization, and the more functionality theorganization desires, the larger the investment becomes. It is very important tounderstand how each vendor prices their product. Several vendors price theirapplications in pieces or “modules” such as: Clinical Module, Financial Module, HumanResource Module, etc. Other vendors may give you a “total price” for all the functionsthey offer, which may or may not be exactly comparable to another vendor. Othervendors will offer a price based on the number of users the organization is planning onusing their system, and their “system” may or may not have all the features of anothervendor’s product.Implementation Resources.Organizations should also understand that reducing costs for appropriateimplementation planning and staff training on the new system will limit the effectivenessof the system, create a poor return on the investment made in purchasing the system,and ultimately, may cause disaster. Horror stories about poorly functioning systems canoften be traced to poorly planned and resourced implementations. Most reputablesoftware vendors are very clear that part of the cost of the software includes trainingand assistance with implementation. It is very difficult for any organization, large orsmall, to use a product “out of the box” without training and thoughtful implementation.Budgeting for implementation assistance from a consultant with experience inbehavioral healthcare and information technologies may be important for success for allsized organizations: from those larger organizations with high complexity to smallorganizations without internal information technology staff. Consultation should be used

to assist with planning, training, process flow and implementation.Information and FunctionsThe list of functions below represents the type of information that can be captured andtracked in a system along with functionality of the software. This list is intended toprovide the range of possible data and functions that may be available in softwareproducts to assist organizations with comparing products with their needs andresources. This list explains the categories included on the Product Grid.• Client datao Client billing data—client information required to submit electronic orpaper claims, such as name, address, identifying number, etc.5Management Information System Resource ToolFor Behavioral Health Providerso Client clinical data—includes information from an integrated clinicalcomponent of the product, such as assessment scores, treatment plangoals, or outcome datao Other client data—includes fields for information that may be required orcustomized for submission to state payers for enrollment into publiclyfundedservices. Examples include Federal Block grant data, family size,and income level.• Scheduling—includes ability to electronically schedule multiple clinicianso Link schedule to billing—includes an automated link between theschedule and billing once a service is confirmed.• Authorization tracking—includes the ability to enter the number of units or

services authorized and usage against those authorized units. Users shouldinvestigate the functionality within this area depending upon the needs of theirenvironment. For example, if a payer authorizes 40 hours of therapy, the ability ofthe software to track and count down remaining service hours for purposes ofmonitoring usage of that authorization will vary between products.• Billing—will generate a paper or HIPAA compliant electronic claim forprofessional services (837P). If an 837I is needed by the user for census-basedservices, that functionality is not included in the grid and should be researched bythe user.• Accounts Receivable (A/R) Managemento Tracking Aging of Unpaid Serviceso Tracking Reasons for Denialso Aged Receivable Report by Payer Source• Reportingo Basic—includes a “canned” set of reportso Report writer—includes a feature that allows users to design somecustomized reports• Medical record—includes an integrated medical record component. If a productprovides links to other software, such as Microsoft Word, for medical recordactivities, that functionality is not included in this grid.o Assessment—includes a clinical assessment with some tailoring to theagency’s requirements6Management Information System Resource Tool

For Behavioral Health Providerso Treatment plan—includes a treatment plan with some tailoring to theindividual agency’s requirementso Progress/encounter notes—includes the capacity for staff to enterprogress or encounter notes after a service has been delivered• Compliance—three of the most common basic compliance issues associatedwith billing are listed below along with potential system features that can help toaddress the compliance issues. These features require a product that integratesmedical record and billing functions.o Expired treatment plan—produces a report and/or prevents billing whena treatment plan has expiredo Service on treatment plan—prevents billing a service that is not includedon a treatment plano Progress note present—prevents billing for a service if the progress notehas not been entered and “signed” by the clinician• Financialo General ledgero Payrollo Accounts Payableo Financial Reporting• Estimated costs—includes costs for initial purchase and annual licensing ormaintenance costs. Does not include hardware or network costs.• Number of users—indicates the maximum appropriate number of users. Thisinformation is not included in the grid, but should be researched by the user

based on the nature of the product and operating environment. Vendors may beoptimistic about the number of possible users along with the hardware needs andresulting speed of the system.The Product GridThe grid on the following page lists what information and/or functions are available foreach product based on the knowledge of the authors at the time of this publication andmay include representations from vendors of these products. Each information/functionarea on the grid should be researched specifically by potential purchasers to ensureaccuracy at the time of purchase.7Management Information System Resource ToolFor Behavioral Health ProvidersThe grid is divided into two groups to indicate the nature of the software and itscorresponding cost. Group A represents larger, enterprise-wide application solutionswith primary markets of behavioral healthcare and human service organizations. Themajority of these vendors have a long history in the field and offer full functionalityacross a broad spectrum of states, programs and services. Several include fullintegration with complete business functionality while others focus on clinical servicedelivery, requiring the additional purchase of business software. Generally, this groupwould be the target for medium to larger organizations because of the broadercapabilities and higher cost. These systems require a large investment that generallystarts at $100,000 and can exceed $150,000 to $200,000. It is also important toremember that additional investments are required for hardware and communicationequipment to implement these applications throughout the entire organization. Several

offer “web-based” ASP (Application Service Provider) versions of their product. Thesecan greatly reduce equipment and infrastructure costs for the organization. Manyvendors offer financing and leasing options to reduce the “upfront” cash investment.Vendors listed in Group B are a collection of offerings referred to as “PracticeManagement” products or software. These are developed with very specific functionsand can be purchased off-the-shelf. Because these applications are intended to be“canned”, and are less expensive, they do not have flexibility for any customization foryour organization’s specific needs. Many are based on a medical practice office-basedenvironment adapted for behavioral healthcare. These products can range from anapplication designed to run on a single personal computer (single user mode) to ascalable application that can be networked and utilized by multiple users. For those thatclaim to be multi-user, the optimal number of users should be researched as a part ofthe purchase decision since many products may function poorly with a large number ofusers. Some of these products focus on a very specific function like billing and have noother capabilities. A number of these products are offered as a web-based ASP productthat only requires a personal computer and a reliable high-speed Internet connection.Providers should be clear that the products in Group B are designed to meet specificneeds, and not intended to address the multiple information system needs of anorganization with a wide range of programs and services.Information contained in the grid was obtained based on vendor-supplied information,and the authors do not warrant the accuracy of specific items on the grid. The grid isintended to offer general information about the systems, and functionality of eachsystem should be researched and confirmed prior to purchase.8

Management Information System Resource Toolfor Behavioral Health ProvidersClient Auth. A/R Basic State TX EMR Fin.Data Tracking Mgnt. Reports Reports PlansGroup AAnasazi Software, Inc. anasazisoftware.com Individualized Pricing X X X X X X X X X X Comprehensive Behavioral Health ApplicationAskesis Development Group(PsychConsult) askesis.com Individualized Pricing X X X X X X X X X Comprehensive Clincial OperationsDefran Systems, Inc. (Evolv CS) defran.com Individualized Pricing X X X X X Web-Based, Human Service ApplicationHarmony Information Systems,Inc. harmonyis.com Individualized Pricing X X X X X X X X XWeb-Based, Comprehensive Behavioral HealthApplicationHealth Care Software, Inc. (HCS) hcsinteractant.com Individualized Pricing X X X X X X X X XWeb-Based ASP, Client Server, ComprehensiveBH App.Lavender & Wyatt Systems, Inc.(Essentia) lwsi.com Individualized Pricing X X X X X X X X X XComprehensive/Fully Integrated EnterpriseApplicationNetsmart Technologies, Inc.

(CSM- CMHC) ntst.com Individualized Pricing X X X X X X X X X X Comprehensive Behavioral Health ApplicationNextGen nextgen.com Individualized Pricing X X X X X X X X X Comprehensive Medical Service ApplicationQualifacts Systems, Inc. qualifacts.com Individualized Pricing X X X X X X X X X Web-Based, ASP OnlySequest Technologies, Inc.(TIER) sequest.net Individualized Pricing X X X X X X "Clinical Records System"The Echo Group echoman.com Individualized Pricing X X X X X X X X X Comprehensive Enterprise ApplicationUNI/CARE Systems, Inc. unicaresys.com Individualized Pricing X X X X X X X X X Comprehensive Behavioral Health ApplicationGroup BCIS (Kenneth Young/IL Only) $50,000 to $60,000 X X X X X X X Plus Monthly Fee $1,000 - $2,000Civerex - Civer Psych civerex.com $1,700 per user X X X X XClaimTrak Systems, Inc. claimtrak.com $50,000 X X X X X X X XClient Server & ASP Options, Can PurchaseModulesPsych Advantage (Compulink) advantagesoftware.com $3,500 to $6,500/5 user X X X X X X X X X Practice Management Package- ScalableCore Solutions, Inc. (Web Care3.0) coresolutionsinc.com $36,000 for 20 users X X X X XWeb Based Application & ASP, Focus on SA andMR

Easy Billing System easybillingsoftware.com $2,148 to $7,334 X X X X X Billing Application OnlyEsteam esteam.net $60,000+ X X X X X X X XWeb-Based:Internally Hosted, Agencies > 8Million BudgetEZ Claim ezclaim.com <$1,000 X X X Billing Application OnlyFoothold Technology, Inc.(AWARDS) footholdtechnology.com $1,100 to $2,200/Mo X X X X X X X XASP Only, One Time Set-Up Fee $7,500 PlusMonthly FeeHandel Information Technologies(RiteTrack) handelit.com $52,500 to $195,000 X X X X X X X X Comprehesive Human Services ProductHill Associates Health Mngt.Systems hill-associates.com $30,000 for 3 Users X X X X X X X X Additional Users: $1,500 per Work StationIntergy Practice emdeonps.com Individualized Pricing X X X X X X X XPM: Priced by Provider Drs. $12,500, Others$1,000 EachInventive Software Solutions inventivesoftware.net Not available X X X X X Focus on Custom Design and DevelopmentKaleidacare kaleidacare.com $400/mo for 50 users X X X X XASP Only, Focus on Care Management, Set-upFee $3,500LYTECS completemedicalbilling.com $5,000 to $20,000 X X X X X Small Medical Practice Software

Med Ware medware.com $2,500 X X X XPractice Management App./Small Practice, notScalableMedAssist inservio.com $4,800 single user X X X X X XPractice Management Application: $6,400 up to99 usersMedez (Integrated SoftwareSolutions) emedez.com $10,000 for 5 users X X X X X Have Behavioral Health Specific ProductNDC Medisoft completemedicalbilling.com $1,074 to $7,798 X X X X Medical Practice Management ApplicationMisys Healthcare Systems misyshealthcaresystems.com$15,000/Initial SingleProvider X X X X X XPractice Mgnt. Application: Individual PricingSingle ProviderCompany Web Address Price Range Schedule Billing Comments/Characteristics9Management Information System Resource Toolfor Behavioral Health ProvidersClient Auth. A/R Basic State TX EMR Fin.Company Web Address Price Range Data Schedule Tracking Billing Mgnt. Reports Reports Plans Comments/CharacteristicsMS* Health Software mshealth.com $11,495 to $69,995 X X X X X X X X Client Server Based, Only Behavioral Health

Payerpath, Inc. payerpath.com $49/per Mo/Per Provider X X XWeb-Based ASP Clearinghouse with Billing &Claims Mgnt.Practice ManagementTechnologies pmtechweb.com$12,000 to $14,000 for10 users X X X X X X X X Michigan Only:Larger users (CMH: $125,000)PsyTech Solutions, Inc.(Epitomax) psytechsolutions.net25-50 Users/$2,000-$3,000/Mo X X X X X Web-Based ASP or Installed on your Own ServerRaintree Systems, Inc. raintreeinc.com Not available X X X X X X XWeb-Based, ASP or Installed on your OwnServerScerIS, Inc. sceris.com $4,000 to 100,000 X X X XEMR: Document Management:Pricing onconcurrent usersShrink Rapt shrinkrapt.com $635 to $1,035 X X X X X Small Therapists Practice ApplicationSOS Software (Synergistic OfficeSolutions) sosoft.com $2,963 to $32,105 X X X X X X X Medical Practice Management ApplicationSSIMED ssimed.com$7,000 for singleprovider X X X X X X X XPractice Management App.: $3,000 per Service

Provider FTEThe CIMS Group, Inc.(ChartEvolve) thecimsgroup.com$499 to $1,200 per userper year X X X X X X X X X Comprehesive Behavioral Health SolutionTeresa Pickering (IL) $12,000 to $21,000 X X X X Illinois ApplicationKey:Auth. Tracking--Authorization trackingA/R Mgnt--Accounts Receivable ManagementTX Plans--Treatment PlansEMR--Electronic Medical RecordFin--Financial records, general ledger, etc.10Project Management Information System (P2)The Project Management Information System (P2) provides a standard tool for Program/Project Managers (PMs) to facilitate project planning, execution, and management in accordance with the Project Management Business Process (PMBP). The ERDC Information Technology Laboratory is responsible for its operation, maintenanDescriptionVersion 3, currently under development by the ERDC Information Technology Laboratory, will enhance and upgrade the software while significantly reducing the annual maintenance costs. Version 3 focuses on reducing the technical complexity of the system and providing consistent informatioIt will simplify the user interface by minimizing software restrictions, removing underutilized software products, and eliminating performance bottlenecks. In addition, it will

improve information retrieval by creating a common authoritative data souand will apply industry best practices to the integration of P2 dataThe P2 system uses Oracle Primavera Project Management software and softwareextensions built in-house to satisfy the project management andVersion 3 willMaximize consistent informationIncrease workforce productivityImprove system response times aEnhance system maintainabilityProvide Return-on-Investment within 3 yearsMary Ballard, CEERD-IS-S, 601-634-MDr. Elaine Hulitt, CEERD-IS-SE

• Employers seeking more comprehensiveSHMS information, especially those with asafety and health professional on staff, canwork with OSHA’s Voluntary ProtectionPrograms: www.osha.gov/dcsp/vpp/index.html and/or benefit from OSHA’s “SHMSeTool”: www.osha.gov/SLTC/etools/safetyhealth/index.htmlTake Advantage of FreeOSHA AssistanceCompliance Assistance Specialists are availablein every OSHA Area Office to help you.Find the one in your local area:http://www.osha.gov/dcsp/compliance_assistance/cas.htmlYou may also contact your state’s OSHA OnsiteConsultation program for free, expertassistance: www.osha.gov/consultation

The States that operate OSHA-approvedState plans can also provide assistance;some have specific requirements for SHMS:www.osha.gov/dcsp/osp/index.htmlOSHA’s “$afety Pays” program is an interactiveexpert system to assist employers in estimatingthe costs of occupational injuriesand illnesses and the impact on a company’sprofitability: http://www.osha.gov/dcsp/smallbusiness/safetypays/index.htmlCritical Elements of anEffective SHMSThe critical elements of an effective SHMSare: management commitment and employeeinvolvement; worksite analysis; hazard preventionand control; training for employees,supervisors and managers. (See the reverseof this fact sheet for a checklist of action itemsfor every SHMS component.)OSHA Resources to AssistEmployers with SHMS• Small and medium-sized employers canbenefit from OSHA’s “Small BusinessHandbook” which contains specific information

about SHMS: www.osha.gov/Publications/smallbusiness/small-business.html• OSHA’s “Compliance Assistance QuickStart” Web page is another onlineresource providing SHMS information:www.osha.gov/dcsp/compliance_assistance/quickstarts/index.html• OSHA’s “Hazard Awareness Advisor” isan online tool to assist in identifying andcorrecting safety and health workplacehazards: www.osha.gov/dts/osta/oshasoft/hazexp.htmlFactSheetEffectiveWorkplace Safety andHealth Management SystemsEvery day, workplace injuries, illnesses and fatalities cause immeasurable painand suffering to employees and their families. Recent estimates indicate thatworkplace injuries and illnesses cost our nation’s businesses $170 billion peryear in wasteful and often preventable expenses.Effective Safety and Health Management Systems (SHMS) have proven to be adecisive factor in reducing the extent and severity of work-related injuries andillnesses. SHMS will result in reduced injury-related costs.These savings, whenproperly administered, will exceed the cost of a workplace SHMS.This is one in a series of informational fact sheets highlighting OSHA programs, policies or

standards. It does not impose any new compliance requirements. For a comprehensive list ofcompliance requirements of OSHA standards or regulations, refer to Title 29 of the Code of FederalRegulations. This information will be made available to sensory impaired individuals upon request.The voice phone is (202) 693-1999; teletypewriter (TTY) number: (877) 889-5627.U.S. Department of Laborwww.osha.gov(800) 321-OSHAFormore complete information:DEA 3/2008Safety and HealthManagement SystemsChecklistManagement Commitment andEmployee Involvement_ Develop and communicate a safety andhealth policy to all employees._ Demonstrate management commitment byinstilling accountability for safety and health,obeying safety rules and reviewing accidentreports._ Conduct regular safety and health meetings

involving employees, managers and supervisors._ Assign responsible person(s) to coordinatesafety and health activities._ Integrate safety and health into businesspractices (e.g., purchases, contracts, designand development)._ Involve employees in safety and healthrelatedactivities (e.g., self-inspections, accidentinvestigations and developing safepractices)._ Recognize employees for safe and healthfulwork practices.Worksite Analysis_ Evaluate all workplace activities and processesfor hazards._ Reevaluate workplace activities when there arechanges in:_ Processes _ Materials _ Machinery_ Conduct on-site inspections, identify hazardsand take corrective actions._ Provide a hazard reporting system for employeesto report unsafe and unhealthful conditions._ Investigate all accidents and near misses todetermine their root causes.

Hazard Prevention and Control_ Eliminate and control workplace hazards (e.g.,engineering controls, workstation design andwork practices)._ Establish a preventive maintenance program._ Keep employees informed of safety and healthactivities and conditions._ Plan for emergencies (e.g., create an evacuationplan, train employees and conduct firedrills)._ Record and analyze occupational injuries andillnesses.Training for Employees, Supervisorsand Managers_ Provide training on specific safe work practicesbefore an employee begins work._ Provide additional training for new workprocesses and when accidents and nearmisses occur._ Provide refresher training on a routine basis.(NOTE: OSHA regulations do not require employersto have a SHMS. Thus, the items on this checklistare strictly voluntary with the exception ofconstruction industry employers.)

SIGAR Audit-09-3 Management Information SystemsA Better Management Information System Is Needed to Promote Information Sharing, Effective Planning, and Coordination of Afghanistan Reconstruction ActivitiesJuly 30, 2009OFFICE OF THE SPECIAL INSPECTOR GENERAL FOR AFGHANISTANRECONSTRUCTIONSIGAR Audit-09-3 Management Information Systems Page iJuly 30, 2009The Honorable Karl W. Eikenberry U.S. Ambassador to AfghanistanGeneral David Petraeus, USA Commander, U.S. Central CommandGeneral Stanley A. McChrystal Commander, U.S. Forces Afghanistan and International Security Assistance ForcesAlonzo L. Fulgham Acting Administrator U.S. Agency for International DevelopmentGeneral Richard P. Formica Commanding General, Combined Security Transition Command – AfghanistanColonel Michael McCormick Commander, Afghanistan Engineering District U.S. Army Corps of EngineersThis report examines the use of management information systems at key U.S. agencies and commands to track and report on reconstruction activities in Afghanistan. Several agencies and commands—the State Department, U.S. Embassy Kabul; the U.S. Agency for International Development; U.S. Central Command; U.S. Forces –Afghanistan and Combined Security Transition Command – Afghanistan; and the U.S. Army Corps of Engineers’ Afghanistan Engineer District—serve a key role in the implementation of U.S.-funded reconstruction, security, and development

programs in Afghanistan. Based on SIGAR’s findings, we concluded that an integrated management information system for all U.S. reconstruction activities in Afghanistan would provide essential information for decision-makers and stakeholders to better plan, coordinate, monitor, and report on U.S. activities. We are recommending that the U.S. civilian agencies and military commands work together toward developing an interagency information management system for Afghanistan reconstruction.SIGAR Audit-09-3 Management Information Systems Page iiA summary of our report is on page iii. The audit was conducted by the Office of the Special Inspector General for Afghanistan Reconstruction under the authority of Public Law 110-181, and the Inspector General Act of 1978, as amended. When preparing the final report, we considered written comments from the U.S. Agency for International Development, U.S. Central Command, and the Combined Security Transition Command - Afghanistan on a draft of this report. Copies of their comments are included in appendices II-IV of this report. In addition, we also considered informal comments received from the U.S. Embassy Kabul.John BrummetAssistant Inspector General for Audits Office of the Special Inspector General for Afghanistan ReconstructionSIGAR Audit-09-3 Management Information Systems Page iiiSIGAR RESULTSThe U.S. Government has appropriated about $38 billion to fund reconstruction and development activities in Afghanistan since 2001. This report examines the use of management information systems by U.S. agencies and commands to track and report on reconstruction efforts in Afghanistan and the extent to which these systems are integrated. We conducted our review from March to June 2009 in Kabul, Afghanistan where we obtained information from documents and

interviews with U.S. officials, from the Department of State, the U.S. Agency for International Development, and the Department of Defense. Our work was conducted in accordance with generally accepted government auditing standards.What SIGAR ReviewedKey U.S. agencies and commands in Afghanistan have management information systems for collecting data on their reconstruction activities, but there is no single management information system that provides complete and accurate information of all completed, underway, and planned reconstruction activities. While these U.S. entities indicated they utilize fairly mature and established management information systems for financial and accounting purposes, the availability and use of management information systems for project management varied significantly and provided little opportunity for sharing information without considerable effort. Sharing of reconstruction information between agencies and commands typically occurs through periodic meetings and manually intensive processes involving spreadsheets, presentations, and other ad hoc reports. An integrated management information system that provides a common operating picture of all U.S. reconstruction activities in Afghanistan would provide essential information for the decision-makers to better plan, coordinate, monitor, and report on U.S. activities. Without an effective management information system or other means to provide a complete view of reconstruction efforts undertaken by the various U.S. entities operating in Afghanistan, there is an increased chance of duplication of efforts, conflicting ventures, and overall wasted resources. Senior representatives from the key agencies and commands we met with agreed that there would be a benefit in having visibility into the projects undertaken by other entities. In June 2009, at the direction of the National Security Council’s Deputies Committee, the U.S. Agency for International Development completed a study assessing the feasibility of a joint information management system for reconstruction activities. A more formal, fully-coordinated

effort among key U.S. Government implementing entities is now needed to jointly assess current information systems and develop the requirements for an integrated management information solution.What SIGAR FoundTo provide a complete view of U.S. reconstruction efforts in Afghanistan, SIGAR recommends that U.S. civilian agencies and military commands work together toward developing an integrated management information system, or comparable integrated information solution, for Afghanistan reconstruction activities that provides a common operating picture of reconstruction programs and projects. The U.S. Agency for International Development, U.S. Central Command, and the Combined Security Transition Command-Afghanistan generally concurred with the report’s recommendations. They also cautioned that the development of an integrated management information system would be a challenging effort, raising various issues that should be discussed and considered in the implementation of these recommendations. Similar comments regarding the recommendations and challenges were expressed by the U.S. Coordinating Director for Development and Economic Assistance at the U.S. Embassy Kabul.What SIGAR RecommendsSIGAR Audit-09-3 Management Information Systems Page ivTABLE OF CONTENTSObjectives and Scope 1Background 1U.S. Management Information Systems for Afghanistan Reconstruction 3 are Not Integrated Across U.S. Agencies and CommandsConclusions 7Recommendations 7

Comments 8Appendix I: Scope and Methodology 9Appendix II: Comments from the U.S. Agency for International Development 10Appendix III: Comments from the U.S. Central Command 12Appendix IV: Comments from the Combined Security Transition Command – Afghanistan 15AbbreviationsCSTC-ACombined Security Transition Command–AfghanistanICMAGIntegrated Civil-Military Action GroupISAFInternational Security Assistance ForceSIGARSpecial Inspector General for Afghanistan ReconstructionUSAIDU.S. Agency for International DevelopmentUSFOR-AU.S. Forces–AfghanistanSIGAR Audit-09-3 Management Information Systems Page 1A Better Management Information System Is Needed to Promote Information Sharing, Effective Planning, and Coordination of Afghanistan Reconstruction ActivitiesOBJECTIVES AND SCOPEThis report examines the use of management information systems by key U.S. agencies and commands to track and report on reconstruction activities in Afghanistan and the extent to which

these systems are integrated. We obtained information from documents and interviews with key U.S. Government agencies and commands responsible for reconstruction and development efforts in Afghanistan, including the Department of State and the U.S. Agency for International Development at the U.S. Embassy Kabul; U.S. Forces-Afghanistan and its subordinate commands, the Combined Security Transition Command-Afghanistan and the Combined Joint Task Force-101; and the U.S. Army Corps of Engineers’ Afghanistan Engineer District.1Specifically, we reviewed the management information systems used by each of these entities to collect and track information and to report on their reconstruction efforts. We did not evaluate the accuracy or completeness of data in those systems. We conducted work in Kabul, Afghanistan, from March to July 2009. We conducted this performance audit in accordance with generally accepted government auditing standards.BACKGROUNDSince 2001, the United States has appropriated about $38 billion in support of reconstruction efforts in Afghanistan.2To execute these strategies, a complex coalition of international support is involved in bringing assistance and aid to the people of Afghanistan and the Government of the Islamic Republic of Afghanistan. The International Security Assistance Force (ISAF), a North Atlantic Treaty Organization-led coalition of 42 contributing countries, operates under the authority of the United Nations Security Council. ISAF is organized into five Regional Commands, which include the 26 provincial reconstruction teams responsible for reconstruction activities at the provincial level. In addition to the international support coordinated by ISAF, a number of U.S. agencies and commands play a key role in the implementation of U.S.-funded reconstruction activities in Afghanistan. In addition, the international community has pledged $25 billion in support of reconstruction efforts. Recent statements by leadership of the U.S. Government and the

governments of its international partners have indicated plans to increase the level of financial and military support for Afghanistan over the coming years. Providing the strategic framework for the on-going efforts in Afghanistan are the Afghanistan National Development Strategy and the new U.S. Government strategy for Afghanistan and Pakistan. Both strategies demand robust oversight for the entire reconstruction program.1In June 2009, the 82nd Airborne Division assumed command of the Combined Joint Task Force from the 101st Airborne Division.2This amount includes funds appropriated in the 2009 Supplemental Appropriations for Iraq, Afghanistan, Pakistan, and Pandemic Flu (P.L. 111-32).SIGAR Audit-09-3 Management Information Systems Page 2The U.S. Embassy in Kabul is the principal authority for all Department of State and other U.S. agency activities in Afghanistan. The U.S. Agency for International Development (USAID) is the key agency for implementing many of the reconstruction and development efforts in Afghanistan. In addition, the U.S. Army Corps of Engineers’ Afghanistan Engineer District provides engineering support to reconstruction efforts for the Departments of Defense and State, and for USAID.In October 2008, the U.S. Central Command established U.S. Forces–Afghanistan (USFOR-A) to consolidate U.S. military forces operating in Afghanistan under one unified command. USFOR-A and its sub-commands—the Combined Joint Task Force-Afghanistan and the Combined Security Transition Command-Afghanistan (CSTC-A) —provide support to ISAF. The Combined Joint Task Force 101 is the command authority responsible for the 12 U.S.-led provincial reconstruction teams in Afghanistan. CSTC-A is responsible for managing the training and equipment programs for the Afghan National Security Force. In addition, training support for the Afghan National Police is provided, in coordination with CSTC-A, by the Department of State’s International Narcotics and Law Enforcement Affairs Bureau.

U.S. MANAGEMENT INFORMATION SYSTEMS FOR AFGHANISTAN RECONSTRUCTION ARE NOT INTEGRATED ACROSS U.S. AGENCIES AND COMMANDSAccurate and timely information helps decision-makers to plan, coordinate, monitor, and report on activities and, if necessary, take appropriate corrective actions. While the key agencies and commands indicate that they utilize fairly mature and well-established management information systems for financial and accounting purposes, the availability and use of these systems for project management varied significantly and provided little opportunity for sharing information without considerable effort. Information shared between U.S. agencies and commands conducting reconstruction activities is typically done using periodic meetings and manually intensive processes that include spreadsheets, presentations, and other ad hoc reports. An integrated management information system that provides a common operating picture of reconstruction efforts by all entities in Afghanistan would provide useful information to decision-makers so that they can better plan and coordinate the total effort.3 Currently there is no single management information system available to provide a common operating picture across all reconstruction agencies and commands of past, present, and future reconstruction efforts. As a result, without an effective management information system or other means to provide a cross-organizational view of reconstruction efforts undertaken by the various agencies and commands operating in Afghanistan, there is an increased chance of duplication of efforts, conflicting ventures, and overall wasted resources. Senior representatives from key U.S. agencies and commands told us that there would be a benefit in having more visibility into the reconstruction activities undertaken by other U.S. entities in Afghanistan. In June 2009, at the direction of the National Security Councils Deputies Committee, USAID completed a study that assessed available opportunities to create a joint system for information sharing of Afghanistan reconstruction activities.

Generally, there are two types of information systems used to track and report on reconstruction efforts: financial data systems and project tracking systems. Table 1 provides a summary of the most prominent management information systems used by five key U.S. agencies and commands, or sub-Multiple Management Information Systems Used in U.S. Reconstruction Efforts3We use the term “common operating picture” to refer to the entire Afghanistan reconstruction program across all U.S. agencies and commands to include their past, present, and planned future projects and programs.SIGAR Audit-09-3 Management Information Systems Page 3commands, responsible for reconstruction activities in Afghanistan. According to U.S. government officials, none of the financial or project information managed by the reconstruction entities listed in the table below is shared directly with any of the other entities in a systematic way. Further, the systems listed in table 1 are of varying complexity and capability and therefore present an added challenge for any information solution that would integrate financial and project tracking data.Table 1: Management Information Systems Used by U.S. Government Agencies and Commands for Reconstruction Activities in AfghanistanU.S. Agency or CommandFinancial Data SystemsProject Tracking SystemsU.S. Agency for International DevelopmentWorldwide Financial Management SystemAriba Acquisition Management SystemsGeoBaseInfrastructure Project Management and Reporting Database

SpreadsheetsDepartment of State, Bureau of International Narcotics and Law Enforcement AffairsResource Management ToolStandard Financial SystemSpreadsheetsPresentation slidesU.S. Forces - Afghanistan and Combined Joint Task ForceNavigatorStandard Financial SystemCombined Information Data Network ExchangeCombined Security Transition Command – AfghanistanNavigatorStandard Financial SystemSpreadsheetsPresentation slidesU.S. Army Corps of Engineers’ Afghanistan Engineer DistrictCorps of Engineers Financial Management SystemResident Management SystemPromise (P2) application systemPrimaveraSource: USAID, Department of State, USFOR-A, CSTC-A, U.S. Army Corps of Engineers’ Afghanistan Engineer District.The financial data systems used to manage financial information on reconstruction projects and activities in Afghanistan vary by agency or command from fairly mature and well established

systems to locally collected and consolidated systems. For example, the financial data systems used by USAID, USFOR-A and its sub-commands, and the U.S. Army Corps of Engineers’ Afghanistan Engineer District, are integrated throughout their respective departments, allowing for centralized fiscal and budgetary tracking and reporting processes with data input coordinated between the authorized field units up through the higher agency or command levels. In another example, financial data for reconstruction activities under the Combined Joint Task Force-101 are collected and input into the system at the provincial reconstruction team level using a local resource management tool and then subsequently rolled up and included in the Standard Financial System of the Department of Defense.The project tracking systems we reviewed in Afghanistan were generally structured to meet the immediate local requirements rather than a department-level requirement for program information.SIGAR Audit-09-3 Management Information Systems Page 4These systems varied from integrated organizational systems4USAID officials stated that they have developed some independent databases such as GeoBase and the Infrastructure Project Management and Reporting Database for project tracking. However, neither database links directly to other data sources. Project data is collected and recorded at the field level using a local data collection tool, such as a spreadsheet. This data is often manually rolled up and/or merged with other agency data and sometimes included in one of the independent databases. As this data is passed from one source to the next, there is a risk that the integrity of the data could be compromised. USAID officials acknowledged the potential risk of introducing data integrity and accuracy errors. In addition, these officials stated that USAID has an effort underway to develop a new management information system intended to better integrate financial and project data and minimize the manual manipulation of the data once recorded. to

independently managed databases, to spreadsheets and presentation slides. For example, the U.S. Army Corps of Engineers’ Afghanistan Engineer District uses an integrated organizational system. According to officials from the Afghanistan Engineer District, their project tracking system interfaces with their financial management system, allowing for accounting and project data to be shared and verified between the two systems. This interface between the two systems minimizes the risk associated with entering data multiple times and potentially introducing data integrity and accuracy errors. The integration of the financial and project information allows decision-makers at the U.S. Army Corps of Engineers and its Afghanistan Engineer District to obtain timely and complete information, allowing them to assess project progress and, when necessary, implement corrective actions, according to these officials.Management Information Systems Lack Integration Across U.S. Agencies and CommandsTo effectively plan, coordinate, monitor, and report on U.S. reconstruction and development activities in Afghanistan, agencies and commands need a system for sharing and integrating information from existing systems with varying complexity, and this needs to be done in a consistent and timely way. The officials we met with from the key reconstruction agencies and commands indicated they did not have a management information system in place that provides a common operating picture across all U.S. Government activities. Senior U.S. Government officials we interviewed expressed an interest in having access to a management information system that could provide a common operating picture. They cited numerous benefits such a system could provide. These include:• enhancing unity of effort,• minimizing duplication of effort,• identifying areas saturated with a particular form of assistance and others that have not received adequate attention,

• providing better coordination and oversight capability,• providing a comprehensive historical record to mitigate the effects of personnel and unit rotations, and• providing the capability for more thorough data analysis of efforts.4An integrated organizational system is one that directly links data from multiple information systems.SIGAR Audit-09-3 Management Information Systems Page 5In addition, U.S. officials we interviewed noted that time provided to support a new management information system would be offset by the value added of such a system and time saved in no longer having to manually generate reports or acquire external data from other commands. However, these officials also expressed concern that data for a new system should have a focused purpose and not be collected just for the sake of collecting data. The U.S. Embassy in Kabul established the Integrated Civil-Military Action Group (ICMAG) in November 2008 with the intention that this group would better align actions of U.S. Government civilian and military agencies in support of an integrated counter-insurgency strategy.5USAID has taken some steps towards the development of an integrated management information system. According to USAID officials, in late 2008, the National Security Council’s Deputies Committee identified a need for a development tracking database in Afghanistan. In January 2009, USAID provided an initial report and recommended further study to assess the feasibility of a Joint Management Information System, which was approved by the National Security Council’s Deputies Committee. USAID awarded a contract for the assessment and the contractor conducted the assessment from February to April 2009. Representatives from the ICMAG stated that having a management information system that provides a common operating picture across all U.S. Government reconstruction agencies and commands would be a valuable tool.

6 The contractor delivered the final report on the results to USAID in June 2009.7While this assessment was a good step toward developing an integrated management information system, SIGAR noted, in discussions with USAID, several potential weaknesses in the study. For example, the assessment excluded CSTC-A and U.S. Army Corps of Engineers’ Afghanistan Engineer District in the feasibility assessment, although the two entities together are responsible for over $20 billion in reconstruction activities. Furthermore, the assessment proposed reliance on the ICMAG for unified data management and control responsibilities, although discussions SIGAR had with ICMAG officials indicated they did not have the technical expertise to do this. In addition, the assessment proposed the establishment of a Unified Change Control Management Board to review or approve any change recommendation for the joint management information system, but did not suggest membership or participation in the Board by CSTC-A or U.S. Army Corp of Engineers’ Afghanistan Engineer District. In June 2009, USAID officials stated that any future actions regarding the development or establishment of a Joint Management Information System were pending discussion with the U.S. Ambassador to Afghanistan. The assessment included recommendations for a development strategy, design requirements, and change management control that could be used as a basis for a broader coordinated effort to develop a robust system to share information on reconstruction efforts in Afghanistan.Further efforts to develop a system to provide a common operating picture should consider lessons learned government-wide and in Iraq. The U.S. Congress and Office of Management and Budget have5The Executive Working Group is comprised of the Deputy Chief of Mission, USFOR-A Deputy Commanding General, USFOR-A Military Advisor to the Ambassador, USAID Mission Director, Regional Command East Deputy Commanding General for Support, CSTC-A Deputy Commanding General for Programs, and Regional Command South Deputy Commanding General for Stability.

6USAID awarded the contract task order to the contractor using an existing contract.7Joint Management Information System Assessment Final Report, June 2009.SIGAR Audit-09-3 Management Information Systems Page 6identified the importance of information technology management controls for U.S. agencies.8In November 2003, the U.S. Congress passed P.L. 108-106, the Emergency Supplemental Appropriations Act for Defense and for the Reconstruction of Iraq and Afghanistan. The Act established reporting and monitoring requirements on the implementing agencies in Iraq and appropriated $50 million to fund a solution for meeting these requirements in Iraq, which led to the development of the Iraq Reconstruction Management System. In Afghanistan, the National Security Council’s Deputies Committee identified the need for a common development tracking database which led to the USAID joint management information system assessment report. Additionally, U.S. Government officials we met with in Afghanistan acknowledged the benefits of an integrated management information system. Specifically, the Office of Management and Budget has issued guidance on integrated information technology modernization planning. While the overall information technology guidance does not specifically address multi-agency contingency operations such as those in Afghanistan or Iraq, legislative and executive action indicate the importance of utilizing basic principles for promoting better efficiency, effectiveness, and oversight in multi-agency operations.In Iraq, the Special Inspector General for Iraq Reconstruction has reviewed the management information systems used by U.S. agencies in Iraq and identified several issues that needed to be considered in a revision of the Iraq Reconstruction Management System.9• Organizational Accountability: Executive level leadership is necessary to provide long-term leadership and strategic guidance, resources management, and, issue resolution of coordinating working group. These issues included:

• Data Quality: System designs must ensure data integrity, consistency, accuracy, and completeness. Designs should be scalable and flexible to allow for emerging requirements.• Funding and Other Resource Responsibility: Identifying funding and resource requirements and sources for developing, operation and support, and maintaining the system are necessary for budgetary planning.• Transferring Information to the Host Government: If data is to be transferred to the host government, design considerations should be made regarding what data will be transferred and how it will be delivered. A formal agreement defining the expected format of the data and the transfer process should be made with the host government and reviewed periodically.840 U.S.C. 11311-11313 and see OMB, Management of Federal Information Resources, Circular A-130 (Washington, D.C., Nov. 28, 2000).9SIGIR has issued four reports on the management of information for reconstruction programs and activities in Iraq: Issues Related to the Use of the $50 Million Appropriation to Support the Management and Reporting of the Iraq Relief and Reconstruction Fund (SIGIR-05-026, January 2006); Management of Iraq Relief and Reconstruction Fund Program: The Evolution of the Iraq Reconstruction Management System (SIGIR-06-001, April 2006); Review of Data Entry and General Controls in the Collecting and Reporting of the Iraq Relief and Reconstruction Fund (SIGIR-06-003, April 28, 2006); and, Comprehensive Plan Needed to Guide the Future of the Iraq Reconstruction Management System (SIGIR-08-021, July 2008).SIGAR Audit-09-3 Management Information Systems Page 7CONCLUSIONSThe U.S. Government along with its international partners has made large investments in the reconstruction and development of Afghanistan over the last eight years and the number of civilian and military stakeholders involved requires significant coordinating efforts. Funding and

personnel support is likely to increase in the near term, resulting in additional reconstruction and development projects for Afghanistan. However, U.S. Government leadership and stakeholders do not share a common management information system to plan, coordinate, monitor, and report on reconstruction activities in an accurate, timely, and integrated way. The U.S. Government needs to develop an appropriate means to share integrated information in a timely manner across all U.S. Government stakeholders and decision-makers to effectively manage the assistance provided to the Government and people of Afghanistan. An integrated management information system, or comparable integrated information solution, for all U.S. Government implementing agencies and commands in Afghanistan, would provide essential information to decision-makers to assist in their planning and coordination of activities supporting the U.S. strategy for Afghanistan. Any solution for the integration of reconstruction information must account for the different methodologies for collecting data by the various agencies and commands. Senior officials from the key U.S. agencies and commands responsible for reconstruction agreed that having a system that generates a common operating picture would enhance their initiatives and provide additional benefits of accountability and transparency for project funds. USAID has taken the first steps towards the development of an integrated management information system. Additional effort, coordinated among key U.S. Government reconstruction implementers, is now needed to jointly assess current information systems and develop the requirements for an integrated management information system or comparable integrated information solution.RECOMMENDATIONSThe development of an integrated management information system will require the participation and coordination of multiple agencies and commands. Therefore, we are addressing the three recommendations below to each of the key agencies and commands, so that they, together, will commit to developing an integrated information solution.

• To provide a common operating picture of U.S. reconstruction programs and projects in Afghanistan, SIGAR recommends that the Secretary of State, Secretary of Defense, and the Acting Administrator of the U.S. Agency for International Development (in coordination with the U.S. Ambassador to Afghanistan and the Commanding General, U.S. Central Command) work together to jointly develop an integrated management information system, or comparable integrated information solution, for Afghanistan reconstruction activities.• SIGAR also recommends that the reconstruction stakeholders appoint an executive agent to coordinate the overall interagency development and implementation of an integrated management information system or comparable integrated information solution, including responsibilities for progress and issue resolution.• SIGAR recommends that the executive agent, once appointed, should work with stakeholder entities to, at a minimum, determine interagency requirements for an integrated management information system or comparable integrated information solution that takes into account theSIGAR Audit-09-3 Management Information Systems Page 8various systems and methods currently used to collect reconstruction data; develop a plan to ensure that data integrity, consistency, accuracy, and completeness are taken into consideration in any system development; and identify funding and resource requirements to implement the development and sustainment of the system.COMMENTSUSAID, U.S. Central Command, and CSTC-A provided written comments on a draft of this report, which are included in appendixes II-IV. We also received comments from the State Department that stated that the Coordinating Director for Development and Economic Assistance at the U.S. Embassy Kabul concurred that the development of an integrated management information system

is a laudable objective, but that it would be difficult to realize. USAID also provided technical comments which we incorporated in this report, as appropriate.USAID, U.S. Central Command, and CSTC-A generally concurred with the report’s recommendations. USAID stated that an integrated management information system is needed, but it would be time-consuming to establish such a system considering the constraints of the operating environment. USAID discussed steps taken to meet specific information requirements and standards and said it will continue to work with other agencies to determine what system or systems would best enable the sharing of information for decision-making. U.S. Central Command partially concurred with our recommendations and suggested the consideration of existing systems or systems under development as a possible solution. The Command also suggested that sharing reconstruction data with non-governmental organizations working in Afghanistan would provide transparency to the international community and reduce duplication of efforts. In addition, U.S. Central Command stated that the term “common operating picture” is used to refer to a specific program and therefore suggested alternative wording. We have noted in this report that we are using the term common operating picture to refer to the entire Afghanistan reconstruction program across all U.S. agencies and commands to include their past, present, and planned future projects and programs. CSTC-A concurred with our recommendations and stated that it will support their implementation. CSTC-A also suggested that U.S. Central Command serve as the executive agent to implement policies that will address the findings and recommendations identified in the report.We acknowledge that the development of an integrated information management system, or comparable integrated information solution, for all U.S. agencies and commands in Afghanistan presents challenges and will need to account for the different methodologies used for collecting data by the various agencies and commands. However, we believe that an integrated information

solution is essential to providing information in a timely manner to all U.S. Government stakeholders and decision-makers to effectively manage the assistance provided to the Government and people of Afghanistan; enhance their initiatives; and provide additional benefits of accountability and transparency for project funds.SIGAR Audit-09-3 Management Information Systems Page 9Appendix I: Scope and MethodologyWe examined management information systems and how they are used by U.S. government agencies and commands to plan, execute, monitor, and report on reconstruction in Afghanistan and the extent to which these systems are integrated to provide a complete operating picture of reconstruction activities.During our audit we met with key U.S. Government agencies and commands conducting reconstruction and development efforts in Afghanistan. We reviewed and discussed the various management information systems—financial and project—used to track and report on reconstruction activities and projects. We did not evaluate the accuracy or completeness of those management information systems.We conducted our audit from March to July 2009, in Kabul, Afghanistan. We conducted our work at the U.S. Embassy, the U.S. Agency for International Development, U.S. Forces–Afghanistan and its sub-commands, the Combined Security Transition Command–Afghanistan and the Combined Joint Task Force 101, and the U.S. Army Corps of Engineers’ Afghanistan Engineer District where we reviewed documents and interviewed officials responsible for operations, management, and reporting of reconstruction information. We also interviewed officials at the International Security Assistance Force to discuss their collection, management, and reporting of reconstruction information.

We conducted this performance audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain sufficient, appropriate evidence to provide a reasonable basis for our findings and conclusions based on our audit objectives. We believe the evidence obtained provides a reasonable basis for our findings and conclusions based on our audit objectives. The audit was conducted by the Office of the Special Inspector General for Afghanistan Reconstruction under the authority of Public Law 110-181, and the Inspector General Act of 1978, as amended.SIGAR Audit-09-3 Management Information Systems Page 10Appendix II: Comments the U.S. Agency for International DevelopmentSIGAR Audit-09-3 Management Information Systems Page 11SIGAR Audit-09-3 Management Information Systems Page 12Appendix III: Comments from the U.S. Central CommandSIGAR Audit-09-3 Management Information Systems Page 13SIGAR Audit-09-3 Management Information Systems Page 14SIGAR Audit-09-3 Management Information Systems Page 15Appendix IV: Comments from the Combined Security Transition Command – AfghanistanSIGAR Audit-09-3 Management Information Systems Page 16(This report was conducted under the audit project code SIGAR-001A)_________________________________________________________________________________SIGAR’s Mission The mission of the Special Inspector General for Afghanistan Reconstruction is to enhance oversight of programs for the reconstruction of Afghanistan by conducting independent and objective audits, inspections, and investigations on the use of taxpayer dollars and related funds. SIGAR works to provide accurate and balanced information, evaluations,

analysis, and recommendations to help the U.S. Congress, U.S. agencies, and other decision-makers to make informed oversight, policy, and funding decisions to:• improve effectiveness of the overall reconstruction strategy and its component programs;• improve management and accountability over funds administered by U.S. and Afghan agencies and their contractors;• improve contracting and contract management processes;• prevent fraud, waste, and abuse; and• advance U.S. interests in reconstructing Afghanistan.Obtaining Copies of SIGAR To obtain copies of SIGAR documents at no cost, go toReports and Testimonies SIGAR’s Web site (www.sigar.mil). SIGAR posts all releasedreports, testimonies, and correspondence on its Web site.To Report Fraud, Waste, and To help prevent fraud, waste, and abuse by reportingAbuse in Afghanistan allegations of fraud, waste, abuse, mismanagement, andReconstruction Programs reprisal contact SIGAR’s hotline:• Web: www.sigar.mil/fraud• Email: hotline@sigar.mil• Phone Afghanistan: +93 (0) 700-10-7300• Phone DSN Afghanistan 318-237-2575• Phone International: +1-866-329-8893• Phone DSN International: 312-664-0378• U.S. fax: +1-703-604-0983Public Affairs Public Affairs Officer• Phone: 703-602-8742• Email: PublicAffairs@sigar.mil

• Mail: SIGAR Public Affairs 400 Army Navy Drive Arlington, VA 22202

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Occupational Outlook Handbook, 2010-11 Edition

FONT SIZE: PRINT: OOH Home Index OVERVIEW OF THE 2008-

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Computer and Information Systems Managers

Nature of the Work Training, Other Qualifications, and Advancement Employment Job Outlook Projections Earnings Wages Related Occupations Sources of Additional Information

Significant Points

Employment is expected to grow faster than the average for all occupations.

A bachelor's degree in a computer-related field usually is

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required for management positions, although employers often prefer a graduate degree, especially an MBA with technology as a core component.

Many managers possess advanced technical knowledge gained from working in a computer occupation.

Job prospects should be excellent.

Nature of the Work About this section

In the modern workplace, it is imperative that Information Technology (IT) works both effectively and reliably. Computer and information systems managers play a vital role in the implementation and administration of technology within their organizations. They plan, coordinate, and direct research on the computer-related activities of firms. In consultation with other managers, they help determine the goals of an organization and then implement technology to meet those goals. They oversee all technical aspect of an organization, such as software development, network security, and Internet operations.

Computer and information systems managers direct the work of other IT professionals, such as computer software engineers and computer programmers, computer systems analysts, and computer support specialists (information on these occupations

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can be found elsewhere in the Handbook). They plan and coordinate activities such as installing and upgrading hardware and software, programming and systems design, the implementation of computer networks, and the development of Internet and intranet sites. They are increasingly involved with the upkeep, maintenance, and security of networks. They analyze the computer and information needs of their organizations from an operational and strategic perspective and determine immediate and long-range personnel and equipment requirements. They assign and review the work of their subordinates and stay abreast of the latest technology to ensure that the organization remains competitive.

Computer and information systems managers can have additional duties, depending on their role within an organization. Chief technology officers (CTOs),for example, evaluate the newest and most innovative technologies and determine how these can help their organizations. They develop technical standards, deploy technology, and supervise workers who deal with the daily information technology issues of the firm. When a useful new tool has been identified, the CTO determines one or more possible implementation strategies, including cost-benefit and return on investment analyses, and presents those strategies to top management, such as the chief information officer (CIO). (Chief

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information officers are covered in a separate Handbook section on top executives.)

Management information systems (MIS) directors or information technology (IT) directors manage computing resources for their organizations. They often work under the chief information officer and plan and direct the work of subordinate information technology employees. These managers ensure the availability, continuity, and security of data and information technology services in their organizations. In this capacity, they oversee a variety of technical departments, develop and monitor performance standards, and implement new projects.

IT project managers develop requirements, budgets, and schedules for their firm’s information technology projects. They coordinate such projects from development through implementation, working with their organization’s IT workers, as well as clients, vendors, and consultants. These managers are increasingly involved in projects that upgrade the information security of an organization.

Work environment. Computer and information systems managers generally work in clean, comfortable offices. Long hours are common, and some may have to work evenings and weekends to meet deadlines or solve unexpected problems; in 2008, about 25 percent worked more than 50 hours per week. Some computer

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and information systems managers may experience considerable pressure in meeting technical goals with short deadlines or tight budgets. As networks continue to expand and more work is done remotely, computer and information systems managers have to communicate with and oversee offsite employees using laptops, e-mail, and the Internet.

Injuries in this occupation are uncommon, but like other workers who spend considerable time using computers, computer and information systems managers are susceptible to eyestrain, back discomfort, and hand and wrist problems such as carpal tunnel syndrome.

Computer and information systems managers oversee a variety of workers, including systems analysts, support specialists, and

software engineers.

Training, Other Qualifications, and Advancement About this

section

Computer and information systems managers generally have technical expertise from working in a computer occupation, as

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well as an understanding of business and management principles. A strong educational background and experience in a variety of technical fields is needed.

Education and training. A bachelor's degree in a computer-related field usually is required for management positions, although employers often prefer a graduate degree, especially an MBA with technology as a core component. Common majors for undergraduate degrees are computer science, information science, or management information systems (MIS).

A bachelor’s degree in a computer-related field generally takes 4 years to complete, and includes courses in computer science, computer programming, computer engineering, mathematics, and statistics. Most also include general education courses such as English and communications. MIS programs usually are part of the business school or college, and contain courses such as finance, marketing, accounting, and management, as well as systems design, networking, database management, and systems security.

MBA programs usually require 2 years of study beyond the undergraduate degree, and, like undergraduate business programs, include courses on finance, marketing, accounting, and management, as well as database management, electronic

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business, and systems management and design.

A few computer and information systems managers attain their positions with only an associate or trade school degree, but they must have sufficient experience and must have acquired additional skills on the job. To aid their professional advancement, many managers with an associate degree eventually earn a bachelor's or master's degree while working.

Certification and other qualifications. Computer and information systems managers need a broad range of skills. Employers look for individuals who can demonstrate an understanding of the specific software or technology used on the job. Generally, this knowledge is gained through years of experience working with that particular product. Another way to demonstrate this trait is with professional certification. Although not required for most computer and information system management positions, certification demonstrates an area of expertise, and can increase an applicant’s chances of employment. These high-level certifications are often product-specific, and are generally administered by software or hardware companies rather than independent organizations.

Computer and information systems managers also need a thorough understanding of business practices. Because

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information technology is a central component of many organizations, these workers often must make important business decisions. Consequently, many firms seek managers with a background in business management, consulting, or sales. These workers also must possess good leadership and communication skills, as one of their main duties is to assign work and monitor employee performance. They also must be able to explain technical subjects to people without technical expertise, such as clients or managers of other departments.

Advancement. Computer and information systems managers may advance to progressively higher leadership positions in an information technology department. A project manager, for instance, might be promoted to the chief technology officer position and then to chief information officer. On occasion, some may become managers in non-technical areas such as marketing, human resources, or sales because in high technology firms an understanding of technical issues is helpful in those areas.

Employment About this section

Computer and information systems managers held about 293,000 jobs in 2008. About 16 percent worked in the computer systems design and related services industry. This industry provides IT

services on a contract basis, including custom computer programming services; computer systems design and integration services; and computer facilities management services. Other large employers include insurance and financial firms, government agencies, business management organizations, and manufacturers.

Job Outlook About this section

Faster than average employment growth is expected, and job prospects should be excellent.

Employment change. Employment of computer and information systems managers is expected to grow 17 percent over the 2008-18 decade, which is faster than the average for all occupations. New applications of technology in the workplace will continue to drive demand for workers, fueling the need for more managers. To remain competitive, firms will continue to install sophisticated computer networks and set up more complex intranets and websites. They will need to adopt the most efficient software and systems and troubleshoot problems when they occur. Computer and information systems managers will be needed to oversee these functions.

Because so much business is carried out over computer networks,

security will continue to be an important issue for businesses and other organizations, and will lead to strong growth for computer managers. Firms will increasingly hire security experts to fill key leadership roles in their information technology departments because the integrity of their computing environments is of utmost importance.

The growth of computer and information systems managers should be closely related to the growth of the occupations they supervise. For information on these occupations, see the Handbook sections on computer software engineers and computer programmers; computer systems analysts; computer network, systems, and database administrators; computer scientists; and computer support specialists.

Among computer and information systems managers, job growth is expected to be the fastest in computer systems design establishments; software publishing firms; data processing and hosting companies; management, scientific, and technical consulting services; and healthcare organizations. Increased consolidation of IT services may reduce growth to some extent in other industries.

Job prospects. Prospects for qualified computer and information systems managers should be excellent. Workers with specialized

technical knowledge and strong communications and business skills, as well as those with an MBA with a concentration in information systems, will have the best prospects. Job openings will be the result of employment growth and the need to replace workers who transfer to other occupations or leave the labor force.

Projections Data About this section

Projections data from the National Employment Matrix

Occupational Title

SOC Cod

e

Employment, 2008

Projected Employme

nt, 2018

Change,2008-18 Detailed

StatisticsNumber

Percent

Computer and

information systems managers

11-302

1293,000 342,500 49,500 17

[PDF]

[XLS]

    NOTE: Data in this table are rounded. See the discussion of the employment projections table in the Handbook introductory chapter on Occupational Information Included in the Handbook.

Earnings About this section

Wages of computer and information systems managers vary by specialty and level of responsibility. Median annual wages of these managers in May 2008 were $112,210. The middle 50 percent earned between $88,240 and $141,890. Median annual wages in the industries employing the largest numbers of computer and information systems managers in May 2008 were as follows:

Software publishers $126,840Computer systems design and related services

118,120

Management of companies and enterprises

115,150

Depository credit intermediation 113,380Insurance carriers 109,810

In addition to salaries, computer and information systems managers, especially those at higher levels, often receive employment-related benefits, such as expense accounts, stock option plans, and bonuses.

For the latest wage information:

The above wage data are from the Occupational Employment Statistics (OES) survey program, unless otherwise noted. For the latest National, State, and local earnings data, visit the following pages:

computer and information systems managers

Related Occupations About this section

Other occupations that manage workers, deal with information technology, or make business or technical decisions include:

Advertising, marketing, promotions, public relations, and sales managers

Computer network, systems, and database administrators

Computer scientists

Computer software engineers and computer programmers

Computer support specialists

Computer systems analysts

Engineering and natural sciences managers

Financial managers

Top executives

Sources of Additional Information About this section

Disclaimer:

Links to non-BLS Internet sites are provided for your convenience and do not constitute an endorsement.

Additional information on a career in information technology is available from the following organizations:

Association for Computing Machinery (ACM), 2 Penn Plaza, Suite 701, New York, NY 10121-0701. Internet: http://computingcareers.acm.org

Institute of Electrical and Electronics Engineers Computer Society, Headquarters Office, 2001 L St. NW., Suite 700 Washington, DC 20036-4910. Internet: http://www.computer.org

National Workforce Center for Emerging Technologies, 3000

Landerholm Circle SE., Bellevue, WA 98007. Internet: http://www.nwcet.org

University of Washington Computer Science and Engineering Department, AC101 Paul G. Allen Center, Box 352350, 185 Stevens Way, Seattle, WA 98195-2350. Internet: http://www.cs.washington.edu/WhyCSE

National Center for Women and Information Technology, University of Colorado, Campus Box 322 UCB, Boulder, CO 80309-0322. Internet: http://www.ncwit.org

O*NET-SOC Code CoverageAbout this section Get more information from O*NET—the Occupational Information Network:

O*NET provides comprehensive information on key characteristics of workers and occupations. For information on a specific occupation, select the appropriate link below. For more information on O*NET, visit their homepage.

Computer and Information Systems Managers (11-3021.00)

Suggested citation: Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2010-11 Edition, Computer

and Information Systems Managers, on the Internet at http://www.bls.gov/oco/ocos258.htm (visited August 01, 2010).

 

Last Modified Date: December 17, 2009

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1MANAGEMENT INFORMATION SYSTEMSStephen B. HarshDepartment of Agricultural EconomicsMichigan State Universityharsh@msu.eduINTRODUCTIONManagement information systems encompass a broad and complex topic. To make this topic more manageable, boundaries will be defined. First, because of the vast number of activities relating to management information systems, a total review is not possible. Those discussed here is only a partial sampling of activities, reflecting the author's viewpoint of the more common and interesting developments. Likewise where there were multiple effects in a similar area of development, only selected ones will be used to illustrate concepts. This is not to imply one effort is more important than another. Also, the main focus of this paper will be on information systems for use at the farm level and to some lesser extent systems used to support researchers addressing farm level problems (e.g., simulation or optimization models, geographic information systems, etc.) and those used to support agribusiness firms that supply goods and services to agricultural producers and the supply chain beyond the production phase.

Secondly, there are several frameworks that can be used to define and describe management information systems. More than one will be used to discuss important concepts. Because more

than one is used, it indicates the difficult of capturing the key concepts of what is a management information system. Indeed, what is viewed as an effective and useful management information system is one environment may not be of use or value in another.Lastly, the historical perspective of management information systems cannot be ignored. This perspective gives a sense of how these systems have evolved, been refined and adapted as new technologies have emerged, and how changing economic conditions and other factors have influenced the use of information systems.Before discussing management information systems, some time-tested concepts should be reviewed. Davis offers a commonly used concept in his distinction between data and information. Davis defines data as raw facts, figures, objects, etc. Information is used to make decisions. To transform data into information, processing is needed and it must be done while considering the context of a decision. We are often awash in data but lacking good information. However, the success achieved in supplying information to decision makers is highly variable. Barabba, expands this concept by also adding inference, knowledge and wisdom in his modification of Haechel's hierarchy which places wisdom at the highest level and data at the lowest. As one moves up the hierarchy, the value is increased and volume decreased. Thus, as one acquires knowledge and wisdom the decision making process is refined. Management information systems attempt to address all levels of Haechel's hierarchy as well as converting2data into information for the decision maker. As both Barabba and Haechel argue, however, just supplying more data and information may actually be making the decision making process more difficult. Emphasis should be placed on increasing the value of information by moving up Haechel's hierarchy.

Another important concept from Davis and Olsen is the value if information. They note that “in general, the value of information is the value of the change in decision behavior caused by the information, less the cost of the information.” This statement implies that information is normally not a free good. Furthermore, if it does not change decisions to the better, it may have no value. Many assume that investing in a “better” management information system is a sound economic decision. Since it is possible that the better system may not change decisions or the cost of implementing the better system is high to the actual realized benefits, it could be a bad investment. Also, since before the investment is made, it is hard to predict the benefits and costs of the better system, the investment should be viewed as one with risk associated with it.Another approach for describing information systems is that proposed by Harsh and colleagues. They define information as one of four types and all these types are important component of a management information system. Furthermore, the various types build upon and interact with each other. A common starting level is Descriptive information. (See Figure 1). This1 Figure 1 – Types of Informationinformation portrays the “what is” condition of a business, and it describes the state of the business at a specified point in time. Descriptive information is very important to the business manager, because without it, many problems would not be identified. Descriptive information includes a variety of types of information including financial results, production records, test results, product marketing, and maintenance records.Descriptive information can also be used as inputs to secure other needed types of information. For example, “what is” information is needed for supplying restraints in analyzing farm adjustment alternatives. It can also be used to identify problems other than the “what is” condition. Descriptive information is necessary but not completely sufficient in identifying and addressing farm management problems.

The second type of information is diagnostic information, This information portrays this “what is wrong” condition, where “what is wrong” is measured as the disparity between “what is” and “what ought to be.” This assessment of how things are versus how they should be (a fact-value conflict) is probably our most common management problem. Diagnostic information has two major uses. It can first be used to define problems that develop in the business. Are production levels too low? Is the rate earned on investment too low? These types of question cannot be answered with descriptive information alone (such as with financial and production records). A manager may often be well supplied with facts about his business, yet be unable to recognize this type of problem. The manager must provide norms or standards which, when compared with the facts for a particular business, will reveal an area of concern. Once a problem has been identified, a manager may choose an appropriate course of action for dealing with the problem (including doing nothing). Corrective measures may be taken so as to better achieve the manager’s goals. Several pitfalls are involved for managers in obtaining diagnostic information. Adequate, reliable, descriptive information must be available along with appropriate norms or standards for particular business situations. Information is inadequate for problem solving if it does not fully describe both “what is” and “what ought to be.”As description is concerned with “what is” and diagnostics with ”what is wrong,” prediction is concerned with “what if...?” Predictive information is generated from an analysis of possible future events and is exceedingly valuable with “desirable” outcomes. With predictive information, one either defines problems or avoids problems in advance. Prediction also assists in analysis. When a problem is recognized, a manager will analyze the situation and specify at least one alternative (including doing nothing) to deal with it. Predictive information is needed by managers to reduce the risk and uncertainty concerning technology, prices, climate, institutions, and human relationships affecting the business. Such information is vital in formulating production plans and

examining related financial impacts. Predictive information takes many forms. What are the expected prices next year? What yields are anticipated? How much capital will be required to upgrade production technologies? What would be the difference in expected returns in switching from a livestock farm to a cropping farm? Management has long used various budgeting techniques, simulation models, and other tools to evaluate expected changes in the business.3Without detracting from the importance of problem identification and analysis in management, the crux of management tasks is decision making. For every problem a manager faces, there is a “right” course of action. However, the rightness of a decision can seldom, if ever, be measured in absolute terms. The choice is conditionally right, depending upon a farm manager’s knowledge, assumptions, and conditions he wishes to impose on the decision. Prescriptive information is directed toward answering the “what should be done” question. Provision of this information requires the utilization of the predictive information. Predictive information by itself is not adequate for decision making. An evaluation of the predicted outcomes together with the goals and values of the manger provides that basis for making a decision. For example, suppose that a manager is considering a new changing marketing alternative. The new alternative being considered has higher “predicted” returns but also has higher risks and requires more management monitoring. The decision as to whether to change plans depends upon the managers evaluation of the worth of additional income versus the commitment of additional time and higher risk. Thus, the goals and values of a farm manager will ultimately enter into any decision.HISTORICAL PERSPECTIVEThe importance of management information systems to improve decision making has long been understood by farm management economists. Financial and production records have long been used by these economists as an instrument to measure and evaluate the success of a farm

business. However, when computer technology became more widely available in the late 1950s and early 1960s, there was an increased enthusiasm for information systems to enhance management decision processes. At an IBM hosted conference, Ackerman, a respected farm management economist, stated that:“The advances that have taken place in calculating equipment and methods make it possible to determine the relationship between ultimate yields, time of harvest and climatic conditions during the growing season. Relationship between the perspective and actual yields and changing prices can be established. With such information at hand the farmer should be in a position to make a decision on his prediction with a high degree of certainty at mid-season regarding his yield and income at harvest time.”This statement, made in 1963, reflects the optimism that prevailed with respect to information systems. Even though there was much enthusiasm related to these early systems they basically concentrated on accounting activities and production records. Examples include the TelFarm electronic accounting system at Michigan State University and DHIA for dairy operations. These early systems relieved on large mainframe computers with the data being sent to a central processing center and the reports send back to the cooperating businesses. To put these early efforts into a management information system framework, the one proposed by Alder (House,ed.) is useful. (See Figure 2). They would be defined as data oriented systems with452 Figure 2 – Types of Information Systemslimited data analysis capabilities beyond calculating typical ratios (e.g., return on assets, milk per cow, etc.).

By the mid 1960s it became clear that the accounting systems were fairly effective in supplying descriptive and diagnostic information but they lacked the capacity to provide predictive and prescriptive information. Thus, a new approach was needed – a method of doing forward planning or a management information system that was more model oriented. Simulation models for improving management skills and testing system interaction were developed. As an example, Kuhlmann, Giessen University, developed a very robust and comprehensive whole farm simulation model (SIMPLAN) that executed on a mainframe computer. This model was based on systems modeling methods that could be used to analyze different production strategies of the farm business. To be used by managers, however, they often demanded that the model developer work closely with them in using the model.Another important activity during this period was the “Top-Farmer Workshops” developed by Purdue University. They used a workshop setting to run large linear-programming models on mainframe computers (optimization models) to help crop producers find more efficient and effective ways to operate their business.As mainframe timeshare computers emerged in the mid-1960's, I became possible to remotely access the computer with a terminal and execute software. Systems such TelPlan developed by Michigan State University made it possible for agricultural producers to run a farm related computer decision aids. Since this machine was shared by many users, the cost for executing anagriculturally related decision aid was relatively inexpensive and cost effective. These decision aids included optimization models (e.g., least cost animal rations) budgeting and simulation models, and other types of decision aids. These decision aids could be accessed by agricultural advisor with remote computer terminals (e.g., Teletype machine or a touch-tone telephone). These advisors used these computer models at the farm or at their own office to provide advice to farm producers.

These were exciting times with many people becoming involved in the development, testing, refining, and implementation of information systems for agriculture. Computer technology continued to advance at a rapid pace, new communication systems were evolving and the application of this technology to agriculture was very encouraging. Because of the rapid changes occurring, there were international conferences held where much of the knowledge learned in developing these systems was shared. One of the first of these was held in Germany in the mid-1980s.It was also clear from these early efforts that the data oriented systems where not closely linked to the model oriented systems. Information for the data oriented systems often did not match the data needed for the model oriented systems. For example, a cash-flow projection model was not able to directly use financial data contained in the accounting system. In most cases, the data had to be manually extracted from the accounting system and re-entered into the planning model. This was both a time consuming and error prone process.Because of the lack of integration capabilities of various systems, they were devoid of many of the desirable characteristics of an evolving concept describes as decision support systems (DSS). These systems are also known as Executive Support Systems, and Management Support System, and Process Oriented Information Systems . The decision support system proposed by Sprague and Watson (House, ed.) Has as its major components a database, a modelbase, a database/modelbase management system and a user interface (see Figure 3). The database has information related to financial transactions, production information, marketing records, the resource base, research data, weather data and so forth. It includes data internally generated by the business (e.g., financial transactions and production data) and external data (e.g., market prices). These data are stored in a common structure such that it is easily accessible by other database packages as well as the modelbase.

The modelbase component of the system has decision models that relate to operational, tactical and strategic decisions. In addition, the modelbase is able to link models together in order to solve larger and more complex problems, particularly semi-structured problems. The database/modelbase management system is the bridge between database and modelbase components. It has the ability to extract data from the database and pass it to the modelbase and vice versa. The user interface, one of the more critical features of the system, is used to assist the decision maker in making more efficient and effective use of the system. Lastly, for these systems to be effective in supporting management decision, the decision maker must have the673 Figure 3 – Decision Support Systemskills and knowledge on how to correctly use these systems to address the unique problem situation at hand.Several follow-up international conferences were held to reflect these new advances in management information systems. The first of these conferences focused on decision support systems was held in Germany. This conference discussed the virtues of these systems and the approach used to support decisions. Several prototype systems being developed for agriculture were presented. From these presentations, it was clear that the decision support systems approach had many advantages but the implementation in agriculture was going to be somewhat involved and complex because of the diversity of agricultural production systems. Nevertheless, there was much optimism for the development of such systems.A couple of years later, another conference was held in Germany that focused on knowledge-based systems with a major emphasis on expert systems and to a lesser extent optimum control methods and simulation models. Using Alter’s scheme to describe information systems, for the

most part these would be described as suggestion models. It was interesting to note that the prototype knowledge-based systems for the most part did not utilize the concepts of decisions support systems which was the focus of the earlier conference. Perhaps this was related to the fact that many of the applications were prototypes.The international conference that followed in France focused on the low adaption rate of management information systems. This was a topic of much discussion but there were few conclusions reached except the systems with the highest adaption rate were mainly data-oriented ones (e.g., accounting systems, field record systems, anaimal production and health records, etc.) which provide mainly descriptive and diagnostic information.The international conferences that followed had varying themes. One of the major themes was precision agriculture with several conferences held. These conferences extolled the use of geographic information systems (GIS) in conjunction with geographic positioning systems (GPS) to record and display data regarding cropping operations (e.g., yields obtained) and to control production inputs (e.g., fertilizer levels). Other conference addressed the use of information systems to more tightly control agriculture production such as those developed for greenhouse businesses.To briefly summarize the historical developments, there have been significant efforts devoted to improving the management information systems from the early computerized activities forty years earlier. The decision aids available have grown in number and they are more sophisticated. There has been some movement toward integration of the data oriented systems and the model oriented systems. An examination of our current usage of management information systems, however, suggests that we have not nearly harnessed the potential of the design concepts contained modern management information systems.CURRENT STATUS OF INTERNAL INFORMATION SYSTEMS

The current status of management information systems is remains dynamic. Several adoption surveys and personal experiences lead to some interesting observations. These observations will be reviewed in the context of a decision support system as defined by Spraque and Watson.On-Farm Information Systems -- Computer HardwareThe percentage of farms owning a computer continues to grow. Most commercial farms now own a computer and have access to the Internet, many with high speed connections. Most of the computers are of recent vintage with large data storage and memory capacity. It is safe to state that the hardware is not the bottleneck with respect to management information systems.8On-Farm Database and Modelbase ApplicationsThe decision support system literature stressed that the database and modelbase remain separate entities. They should be bridged by the database/modelbase management system. In examining much of the software developed for on-farm usage, it appears that most of it does not currently employ this design concept. Indeed most of the software is a stand-alone product with the database an integral part of the modelbase. However, some packages have the ability to export and import data, allowing for the sharing of data across the various packages, but these data sharing features are usually rather narrow in scope and flexibility.The most common software packages used by agricultural producers are data oriented with the most common being one designed for financial accounting. Accounting packages explicitly designed for agricultural businesses and general business accounting packages are used for keeping the financial records. Because of their rather low cost relative to the agricultural specific packages, the general purpose packages are growing in market share. These financial accounting systems are used beyond completing tax documents. They are also important for providing information to creditors and for planning and control.

Production management also accounts for a significant proportion of computer usage. There are many software packages available that address livestock problems. Some are database programs to keep track of animal related data and/or feed inventories. There are models to address operational and tactical decisions such as ration balancing, culling decisions, alternative replacements options, etc.However, many livestock producers also use off-farm production records processing such as using the DHIA service bureau for processing dairy records. These service bureaus provide a downloading feature so the data can be moved to the on-farm computer.For cropping operations, there are similarities in software availability. Database systems are available for keeping track of information on fields and sub-fields, particularly fertilizers and pesticides applied, varieties planted and yields achieved.Though there is increasing interest in geographic information systems by agricultural producers, the main usage is for yield monitoring and mapping. This approach is used to evaluate the effectiveness of alternative management practices employed in the production of the crop (e.g., comparison of varieties, seeding rates, pest control measures, tillage systems, etc.) and to identify field problems (e.g., soil compaction, drainage problems, etc.). This yield monitoring approach is finding the greatest acceptance and this may be in part because the yield monitoring and mapping systems are common option on grain harvesting equipment. One of the real concerns with using yield monitoring and mapping systems relates to the issue of arriving at the correct inference of what causes the variation in yields noted. The potential layers of data (e.g., pH, precious crops grown, soil structure, planting date, nutrients applied, variety grown, pesticides used, rainfall, etc.) has been suggested to exceed 100. To be able to handle the large number of9

data layers in an effective manner would suggest a full-feature geographic information system (GIS) might be needed. However, few agricultural producers have access to a full-feature GIS and/or training to utilize these systems, and there are substantial costs related to capturing and storing various data layers. Nevertheless, the more obvious observations originating from these systems (e.g., such as poor drainage and soil compaction) have resulted in sound investments being made in corrective measures.To a limited extent, some agricultural producers are starting to make use of remote sensing data to identify problems related to the growing crop such as an outbreak of a disease. Those using remote sensing feel they are able to more quickly identify the problems and take corrective action, minimizing the damage done.Precision agriculture applied to the animal industries is on a different scale. Information systems are playing a major role on the integrated mega-farms. When using information systems to carefully track genetic performance, balance rations, monitor health problems, facilities scheduling, control the housing environment and so forth, it is generally acknowledged that it is possible to achieve a fairly significant reduction in cost per unit of output (10-15%) over that of more traditional, smaller farming operations. These are proprietary information systems and the information from these systems are used to gain a strategic competitive advantage.Lastly, the general purpose spreadsheet is the most common software used for planning purposes. Some of these applications are very sophisticated and address complex problems.User InterfaceThe user interface has improved in greatly in quality. Most agricultural software now uses the windowing environment. This environment makes it easier for the user to use and access data and information, and to move data from one application to another or to link applications. However, this still remains a user-initiated task and in some cases can be complex. Also most of the data

contained in the software package is unique to that package and not easily shared with other software packages. Thus, from a DSS viewpoint there are still significant shortcomings.The Decision MakerAn often overlooked component of a decision support system is the decision maker. Prior surveys suggest that the primary user of the on-farm computer system is the farm operator. Operators that are younger and college educated were much more likely to routinely use the computer. Also large farms were more likely to utilize a computer in their farming operation. It is also observed that there is a fair amount of “learning cost” related to use of on-farm information systems. These cost can be large enough to hinder the adoption of management information systems.10CURRENT STATUS OF EXTERNAL INFORMATION SYSTEMSThere is increased interest and excitement about the role external information systems available to agricultural producers, particularly Internet and satellite data transmission systems. Each of these technologies is a vast resource of data which can be used to enhance the various levels (e.g., information, intelligence, knowledge, wisdom) of Haechel's Hierarchy for an individual or organization.Another information source is the outside advisor. As the complexity and breadth of the farm level decision process has increased, the use of consultants and advisors has grown. This is particularly true of the larger farming operations.InternetThe growth in Internet is phenomenal. The growth in its use by agricultural producers is also phenomenal. Email is a common communication tool used by agricultural business. The same is true for the world-wide-web (WWW). They made extensive use of the web to find information that fit their unique requirement. Even though they find it a major source of information for their

operation, it takes good skills to locate the information desired. One of the common complaints is the amount of time it takes to utilize the Internet effectively and the lack of depth of information. One of the critical questions relates to how effective Internet is in addressing the higher levels of Haechel's hierarchy.Other Internet resources available to agriculture include sites for downloading agricultural software. Much of the economic data compiled by the government is now available on-line. Lastly, in some cases it is being used as a marketing tool for products produced by the business.Satellite Data Transmission SystemsThe satellite data transmission systems are widely used by producers. These systems are passive data acquisition systems from the user's viewpoint. Data is continuously broadcast to the leased data terminal from a satellite. The data is automatically stored in the data terminal and can be accessed by a menuing process. These systems provide current data/information on a number of topics. Amounts and types of data/information received depends upon the options purchased. The basic subsystem provides for the latest market prices and news, weather maps (e.g., rainfall, jet streams, severe weather, crop soil moisture index, soil temperature, air temperature, etc.), government reports on market developments, long- and short-term weather forecasts, political developments that pertain to agriculture, and product information. Premium service options add even more features.Outside AdvisorsSeveral recent studies suggest that use of outside advisory services by farmers to enhance and supplement their on-farm information systems was fairly prevalent. The tax preparer is the11

advisory most commonly used. Other important sources of information include the local Extension agents, veterinary consultants, accountants, crop/pest management consultants, and livestock management advisors (e.g., a nutritionist).The outside advisors utilize many different software packages to help provide advice to producers. FINPAK developed by the University of Minnesota is an example of a software package widely used by outside advisors with farmers. This financial analysis and related projection package helps evaluate the financial process being made by the farm and compares alternative future business options. This package (an accounting type model) is widely used in the U.S.THE FUTUREPredicting the future is not an exact science. But with the structural changes occurring in agriculture today, the management problems are significantly different from the problems of yesterday. Earlier emphasis in information systems was on improving production management decisions. Today, major issues that are commonly faced in management relate to financial, human resource, and marketing management. These management areas and their importance are identified in the strategic management workshops I have conducted with agricultural producers. Thus, managers will have less time to address production issues because more time and effort are being focused in the other management areas. This will have an impact on information systems to address production management.Addressing Structured DecisionsIn the future information systems to address production management will likely be of five general types: 1) software for systems analysis, 2) theory testing, software for teaching purposes, 3) software for advisors, 4) software for use by producers, and 5) software to control and monitor the supply chain.

Software for systems analysis and theory testing will be developed with the primary objective of defining the structure and studying the dynamics and interaction of the various system components. Its main use is in research. These models are fairly complex and often have robust data requirements. Their utilization often depends upon availability of the developers to run the model or assist in the use of the model. This software is very useful in testing various hypotheses regarding system dynamics (e.g., would supplemental irrigation in the early growth stages greatly affect yields?)These models play a vital role in generating a better understanding of the overall system and can give valuable insight on how to manage the system. They are also useful in identifying areas for further research. The results from these models are communicated in various ways (e.g., journal articles, trade journals, and advisory service publications and conferences) and these12communicated results are often used by producers to adjust production practices. However, direct use by producers to evaluate their own unique situations is not common with these models. There are several reasons for this limited use including a poor user interface or lacking the data to drive the model. Also, it is generally unlikely that transformation of a model of this nature into one that is to be used by the producers will be successful.Software developed for teaching purposes is likely to continue. Sometimes these software packages are referred to as simulation games. Because these models teach concepts and principles, they are often a simplification of reality. They tend to use the case analysis approach, making it difficult to use the model to analyze various options and alternatives utilizing actual business data. The models are often used in an interactive mode (e.g., in a classroom or workshop environment) where knowledge is gained by testing “what if” questions, then observing the results. These models can be very powerful teaching tools, but are rarely used to analyze actual

business situations. Producers often lose interest in using this software because it is too simplistic, takes too much time and effort to extract knowledge for better decision-making, or it does not adequately reflect the reality of the business.Software for advisors is a class of software that is used by agricultural advisors (e.g., Extension staff, consultants, and agribusiness firms) to assist producers in making decisions. The advisor is a necessary intermediary, because the software could demand a thorough understanding of a difficult set of concepts (e.g., long range planning) or it may be rather demanding of the user’s time and effort (e.g., a large amount of data has to be collected, entered and analyzed), or the time and effort to become proficient in the use of the model is considered excessive. This type of software will grow in importance as the use of outside consultants and advisory services by agricultural businesses grows. These outside advisors and consulting services will increasingly use many different software packages to help provide advice to the producer. The package they use depends upon their area of specialization. For instance, those that are offering production advise may use one of several production decision aid models.Advisors also serve as an intermediary to extracting information from Internet (external data). They often subscribe to threaded discussion groups. They use these groups for posting problems and receiving back suggested solutions. They also learn from the exchange of ideas between others using the system. Also, advisors more readily see the merit of using a software program designed for systems analysis for enhancing their personal knowledge and skills and solving problems for their clients. This is particularly true if the software has a good user interface.Software for use by producers is and will continue to be some of the most demanding software to develop. As indicated earlier, a large amount of software has been written, but much of it has fallen short of expected usage rate. One reason is the decision makers have found the software fails to address their problems. The software must be fairly easy to utilize, and the producer

expects it to provide information that has a perceived value greater than the cost of attaining that information.13Software being used by producers can be grouped into two subcategories. The first subcategory is used to process transaction data and meet regulatory requirements. These are the software applications most used by the actual businesses. They must keep accounting, personnel and crop production records (e.g., pesticides used) because of government regulation. They also use software to reduce the time, effort and cost of processing the transaction records. This is why payroll packages, and shipping and billing systems are commonly employed on these operations. This usage will continue to grow in importance.The other subcategory of software is used for management purposes. This currently accounts for a lesser portion of the computer usage. A large growth in this usage of this software is unlikely. The time and effort to master this software is major commitment. Since management time is being diverted to areas other than production management, they will have less and less time to become proficient in the use of this software. Thus, very thorough and sophisticated systems (e.g., the SAP software system) currently being employed by large companies are not likely to be common on farm businesses because of their complexity and cost.Software for process control is used to control and automate many of the structured-operational decisions of the business enterprises, such as controlling temperature, light, irrigation and fertility in greenhouses. These models are generally of a closed-loop optimal control design. The process control models are generally knowledge based systems and have been developed using knowledge from many sources including the systems analysis models discussed earlier. The use of process control systems will grow in importance and acceptance. This acceptance implies that the

managers have confidence in the models and that they improve the efficiency and effectiveness of the business. These models also free them to concentrate on more complex decisions.Software to control and monitor the supply chain will greatly grow in importance. The will be many factors driving this grow including concerns about food safely, country of origin labeling, organic foods, foods to meet special dietary requirements, and concerns about product liability suits. In will likely become commonplace that a food item purchased by the consumer at the retail level will have attached its entire history, including identity preservation and traceability, included with the purchase. The new advances in RFID chips and the requirements by certain major retailers to label all products with these chips will impact agricultural businesses including those engaged in producing farm products. The system imposed upon the entire supply chain will likely be designed by the retailers and the entire chain will need to adjust to the defined information structure. To adapt to the defined information structure may mean a major restructuring of the information system currently being used by the business with substantial costs associated with the conversion.Addressing Ill-Structured and Unstructured DecisionsTo address the management areas related to human resources, finances, and marketing, suggest information systems that can address ill-structured or unstructured problems. Some would state that we are in the process of moving from the “old economy” to “new economy.” With this14paradigm shift, among the changes is a movement from resource based to idea based wealth creation, from a stable comparative advantage to a dynamic one, from investment in physical assets to investment in human capital, from protected to open markets, from subsidies to encouragement to adapt, from hierarchal organizations to strategies alliances and partnerships. In

addition agriculture will move from commodity markets to product markets and it will become more environmentally friendly, concerned with food safety, and quality and supply coordination.If this transition from the “old economy” to the “new economy” occurs for agriculture, then the information systems of the past will not be adequate for the future. They will need to be much broader and more comprehensive than the current systems. The future systems must:• address the larger scope of financial management rather than financial record keeping, tax reporting, and analysis;• help define marketing strategies and alliances;• help identify potential niche markets rather than supplying data on current commodity market trends;• support the creation of new ideas;• nurture the growth of knowledge since this will become a major source of wealth creation;• deal with the many dimensions and complexity of human resource management;• signal needed production changes in an overall system of supply chain management;• assist in negotiating contractual arrangements;• help the producer adopt to an economic climate that has more risk and uncertainty because of less government intervention in markets;• provide the capacity to track the identify of a product from its genetics to the consumer;• assist in producing a product that meets customer desires rather than the production of a commodity.Developing farm-level information systems to fulfill these needs will be a major challenge. It will take a major rethinking with regard to the role of management information systems. It will involve more than enhancing hardware, communications infrastructure, and software components of the

information system. An equally important consideration will be the analytical skills, knowledge, wisdom, and interests of the agricultural decision maker.The information system of the future will need to concentrate more on the upper levels of Haechel's hierarchy -- knowledge and wisdom. As Honaka and Hirotaka observe, knowledge has two forms, tacit (subjective) and explicit (objective). Tacit knowledge is gained from experiences and practice, whereas explicit knowledge is based more on theory and rationality. As decision makers address problems, they convert knowledge between the two forms. An information system that focuses only on one form will have shortcomings. The information system of the future must have both forms of knowledge, and encourage the conversion of knowledge between the forms as a continuous process. Only by this process will the manager's knowledge base grow in size and function.15Information systems of the past have tended to concentrate on explicit knowledge (e.g., linear programming to balance a ration) and, to lesser extent tacit knowledge. Many of the problems of the future will involve tacit knowledge. The challenge will be designing information systems that will allow for an easier and more effective means of sharing tacit knowledge. The Internet will no doubt play a key role in meeting this challenge. Perhaps a system for documenting experiences (e.g., structured case studies) can be used to enhance the sharing of tacit knowledge.SUMMARYAgriculture has a long and proud past history in applying information systems including farming operations. Although there have been significant strides forward in improving the decision making of farm managers there are still areas for improvement. The decisions of the future will be different from those of the past. There will be no quick and easy solutions on how to design the farm information system of the future. Indeed, each farm business will likely have its own unique

system that has been tailored to meet the special informational requirement of the farm business and address the needs of the entire supply chain. Those that are able to build and effectively utilize the farm information systems of the future will have a strategic advantage over their competitors.SELECTED REFERENCESBarabba, V.P. (1991). “Through a Glass Less Darkly,” Journal of the American Statistical Association, Vol. 86, No. 413, pp. 1-8.Harsh, Stephen B., L. J. Connor, and G. D. Schwab. (1981). Managing The Farm Business. Prentice-Hall, Inc., Englewood Cliffs, New Jersey.House, William C. (1983). Decision Support Systems – A Data-Based, Model-Oriented User-Developed Discipline. Petrocelli Books, Inc. New York, NY.IBM Agricultural Symposium (1963). Endicott, New York, September 23-26.Integrated Decision Support Systems in Agriculture - Successful Practical Applications. (1990) Papers from International DLG - Congress for Computer Technology held in Frankfurt, Germany on May 27-30.Keller, Gerhard and Thomas Teufel. (1998). SAP R/3 Process-Oriented Implementation. Addison Wesley Longman, New York, NY.Knowledge Based Systems in Agriculture - Prospects for Application. (1988) Papers from International DLG - Congress for Computer Technology held in Frankfurt, Germany on June 19-22.1617Microelectronics in Agriculture - Facts and Trends. (1986) Papers from International DLG - Congress for Computer Technology held in Hanover, Germany on May 4-7, 1986.

Nonaka, I. and H. Takeuchi. (1995). The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation, Oxford University Press:NewYork.Sullivan, Laurie (2004). “Heavyweight Retailer Looks Inward to Stay Innovative in Business Technology.” InformationWeek, 27 September 2004.Prof. Stephen B. Harsh is Professor and Distinguished Faculty Member at Michigan State University in the Department of Agricultural Economics. He received his undergraduate degree from the University of Nebraska and graduate degrees from Cornell University. He has been a Visiting Professor at the University of Naples, Italy and Justus-Liebig University, Giessen Germany. His research interests are in the areas of production economics, information systems for management support, economics of alternative energy systems, human resources management, and strategic and operations management. He teaches courses in operations management and quantitative methods. He also has an Extension appointment that allows him to closely work with agricultural advisors and farming and agribusiness firms. He has published widely with more than 250 publications including a book and several chapters in books. He is the recipient of several national and international awards for his efforts in the area of information systems and he has lectured widely on this topic.

________ ____ ____ ___

_____ ____ _______RECOMMENDATION FOR SPACEDATA SYSTEM STANDARDSReference Model for anOpen Archival InformationSystem (OAIS)CCSDS 650.0-B-1BLUE BOOK

Fall 2006Class Thursday: 6:55-9:35 p.m. Room CCB 104Instructor Dr. Rajiv SabherwalUniversity of Missouri SystemCurators’ ProfessorPhone 314-516-6490OfficeHoursThursday 4:00-6:00 p.m., & byappointmentOffice CCB 206

E-mail sabherwal@umsl.edu URL http://web.mac.com/sabherwal/“Information technology is very important to our strategy. These days wecan’t work without it.” (Shengman Zhang, Managing Director of the World Bank).Motivation for the CourseThe impact and usefulness of information systems(IS’s) have risen dramatically in the lasttwo decades. Information technology (IT) isfound everywhere, in the form of iPods, cellphones, laptops, desktops, servers, printers, andso on. This proliferation of IT has been accompaniedby increase in graphical user-interfaces,rapid decline in cost/benefit ratios, and the developmentof the Internet (with its use for disseminatingand retrieving information, electronicmail, electronic commerce, etc.). IT playsan important role in a variety of areas, includingcustomer service, market research, financialmanagement, product innovation, manufacturing,knowledge management, and so on. Indeed,the very success or failure of the organizationoften depends on how well it manages its ISresources. However, the greater options andtechnological uncertainty also make it difficultto manage, and best utilize, information systems

and technologies.Course ObjectivesDesigned for individuals who need to understandthe role and potential contribution of ITwithin organizations, this course should helpyou in making decisions about IT utilization inyour roles as a user of information systems or asan IS professional. Please note that our focus isnot on IT itself, but rather on its business applications.The course focuses on the interface betweenorganizations (and their various facets,such as structures, strategies, and people) andinformation systems. Specific objectives includelearning about: the roles of emerging informationtechnologies in contemporary organizations;strategic use of IT; IT impacts on individuals,organizations, etc.; and the processesinvolved in IS management.You should be able to integrate various and disparatematerial (cases, project, textbook, andlectures) into a coherent "big picture". To thisend, this course will encourage you to think,argue logically, and apply the concepts andknowledge to real-life situations. Overall, your

learning in the course will be facilitatedthrough:Case preparation – by students, individually andin groups, as well as by the instructorClassroom instruction – through lectures, overheads,etc.Collaboration -- among groups of studentsworking together on cases and the projectManagement Information Systems (IS 5800)Management Information Systems, Fall 2006, Dr. Sabherwal1Fall 2006Competition -- across groups, often by encouragingthem to take opposing positions on casesConversations -- between students and instructorand among students, both inside and outsidethe classCreativity -- in presentations of group projectsand also in providing insights during case discussionsReading MaterialsThe course will not use a textbook. However, itmight be a good idea for at least some students(especially those without any prior informationsystems coursework or experience) to use a book

to understand some of the fundamentals andterminology of information systems. Any recent(preferably 2004 or later) book on informationsystems, which may be obtained through thelibrary, friends, or a bookstore should be sufficient.Three examples are given below:Essentials of Business Information Systems (7thEdition) (Hardcover), by Jane P. Laudon, KennethC. Laudon, Prentice Hall, 7th edition(April 3, 2006), ISBN: 0132277816.Management Information Systems (10th Edition)(Paperback), by Raymond McLeod, GeorgeSchell, Prentice Hall; 10th edition (April 26,2006), ISBN: 0131889184.Management Information Systems (Hardcover),by Gerald V Post, McGraw-Hill/Irwin; 4edition (February 4, 2005), ISBN: 0072947799.Instead of using a textbook, the course will use aset of readings and cases, which are given below.Of these, the underlined cases/article will needto be purchased through Harvard BusinessSchool Publishing (the procedure for which Iwill describe in an e-mail to the students),whereas the rest can be obtained as PDF files

through UMSL’s online library (ABI/INFORM).Articles1. Evolving From Information to Insight. 2005.G. Ferguson, S. Mathur, B. Shah. MIT SloanManagement Review. Winter 2005. Vol. 46, Iss.2; pp. 51-58.2. Automated Decision Making Comes of Age,2005. Davenport, T.H., and J.G. Harris, MITSloan Management Review, Summer, Vol 46,Iss. 4; pp. 83-89.3. Enterprise 2.0: The Dawn of Emergent Collaboration.2006. A.P. McAfee. MIT SloanManagement Review. Spring 2006. Vol. 47, Iss.3; pp. 21-28.4. Learning From the Internet Giants. 2004.L.M Weiss, M.M Capozzi, L. Prusak. MITSloan Management Review. Summer 2004.Vol. 45, Iss. 4; pp. 79-84.5. The End of Corporate Computing. 2005.Nicholas G. Carr. MIT Sloan ManagementReview. Spring. Vol. 46, Iss. 3; pp. 67-73.6. David L Margulius. 2005. Nick Carr Backpedals... Just a Bit. InfoWorld. Dec 5. Vol. 27, Iss.49; p. 30.

7. Detours in the path toward strategic informationsystems alignment. 2001. R. Hirschheim,R. Sabherwal. California Management Review.Fall 2001. Vol. 44, Iss. 1; pp. 87-109.8. Technology and Human Vulnerability, HBRArticle, September, 2003, Reprint R0309B.9. RFID enhances visitors' museum experienceat the Exploratorium, 2005. S. Hsi, H. Fait.Communications of the ACM. Sep 2005. Vol.48, Iss. 9; pp. 60-65.10.Privacy in the Global E-Village. 2004. G.J.Pottie. Communications of the ACM. Feb. Vol.47, Iss. 2; pp. 21-23.11.Who’s reading your office e-mail? Is that legal?2006. C.M DePree Jr, R.K Jude. StrategicFinance. Apr 2006. Vol. 87, Iss. 10; pp. 44-47.12.Proven Practices for Effectively OffshoringIT Work. J.W. Rottman, M.C. Lacity. 2006.Management Information Systems (IS 5800)Management Information Systems, Fall 2006, Dr. Sabherwal2Fall 2006MIT Sloan Management Review. Spring 2006.Vol. 47, Iss. 3; pp. 56-63.

13.The role of trust in outsourced IS developmentprojects. 1999. R.Sabherwal. Communications of the ACM.Feb. Vol. 42, Iss. 2; pp. 80-86.14.Open-source software development. 2003.Georg von Krogh. MIT Sloan ManagementReview. Spring. Vol. 44, Iss. 3; pp. 14-18.Cases1. Wyndham International: Fostering High-Touch with High-Tech, Product #: 9-803-092.2. Pharmacy Service Improvement at CVS (A).Product#: 9-606-0153. Ford Argentina: Transforming a Global Industryin a Local Market, Product #: 9-803-093.4. “Real-time Business Intelligence: Best Practicesat Continental Airlines,” by H. Watson,B.H. Wixom, J.A. Hoffer, R. Anderson-Lehman, and A.M. Reynolds. InformationSystems Management, Winter 2006, pp. 7-18.5. Enterprise IT at Cisco. Product #: 9-605-015.6. Pfizer's Virtual CIO (Abridged). Product #:

9-305-018.7. Cathay Pacific: Doing More with Less. Product#:9-303-1068. Novell: Open Source Software Strategy Product#:9-605-009.9. A Blogger in their Midst, HBR Case Study,September 2003 (Reprint R0309A)10.Wikis at Dresdner Kleinwort Wasserstein:(A). Product#: 9-606-074.Expectations of PerformanceYou are expected to prepare for, attend, andcontribute to, the classes on a regular basis. 20%of the course grade is based on class contribution.Another forum for you to demonstrate yourknowledge of information systems will be availablethrough three exams (best two will be considered),which account for 50% of the coursegrade. Finally, you will learn through a groupproject. Working in a group of 3 to 5 students,you will examine an organization's IT’s, IS’s, andtheir management, as described later. Eachgroup will prepare a case and two proposals,and present the proposals in class at the end ofthe semester.

Thus, your grade will be calculated as follows:Class Contribution = 20%Exams (best 2 of 3 @ 25% each = 50%Group Project = 30%(Case = 15%; two proposals = 8%;presentation = 5%; peer evaluation = 2%)Grading PolicyLetter grades will not be assigned to individualcomponents of the course. Only points (numericscores) will be assigned. These scores will beadded at the end of the course. The exact cutoffpoints for final grades will depend on the pointdistribution. But the following is a rough guide:Points percentage Letter grade> 90 A-, A80 - 89.9 B-, B, B+70 - 79.9 C-, C, C+55 - 69.9 D-, D, D+< 55 FClass Contributions (20%)We will all need to read each case or readingbefore we talk about it in class. In preparingeach case, please carefully consider the "casequestions." The questions for the cases will be

posted on MyGateway.Management Information Systems (IS 5800)Management Information Systems, Fall 2006, Dr. Sabherwal3Fall 2006You are expected to help all of us by contributingto the discussions in class. The class discussionsshould be conducted in a friendly fashion,although we may have occasional disagreementsand debates. I will keep track of your contributionsin each class.Of course, if you have prepared the material butdo not come to class, the rest of us will be deprivedof the opportunity to benefit from yourinsights. Therefore, attendance will be taken inevery class, and a penalty of 0.50 point will beapplied for every class missed excluding ONE"free" absences.Exams (50%)There will be three exams. Your best two examscores will be considered.Each exam will be open-book and open-notes(but closed friends). Each exam will be of 2-1/2hour duration. Each exam will include FOUR

essay questions, of which you will be expectedto answer any THREE.All exams will be cumulative. Therefore, exam 2will cover more material than exam 1, and exam3 will cover more material than both exams 1and 2.Group Project (30%)Student groups of 3 to 5 will study one organization’suse and management of IT. The informationabout this organization's IT use andmanagement should be obtained through acombination of means, including: personal orphone interviews with the organization's employees;articles/cases from Wall Street Journal,Fortune, Business Week, Information Week,CIO, Harvard Business Review, Sloan ManagementReview, etc.; and the worldwide web. Ifyou cannot interview any executive from theorganization, either personally or by phone, youshould obtain a greater variety of publishedinformation so that you can form reliable andrich conclusions. The instructor will hold anyinformation you provide in the report in theSTRICTEST CONFIDENCE. If any portion of

the report is used for other purpose, the presentationwill be such as to make it impossible forthe readers to identify the specific firm or individuals.Based on the above information, each group willpresent its findings in three documents and onein-class presentation. The three documentsinclude a case, and two proposals (an applicationproposal and a process proposal).The case (worth 15% of the course grade) shouldbe similar in style to the cases discussed inclass. It should be 8 to 10 single-spaced pages,excluding appendices (Tables, Figures, etc.), andshould include the following:Executive Summary 5%General background of the organization5%A summary of the functions of keyinfo. systems10%Description of the IS department10%Description of the structures andprocesses for managing IS’s30%

Detailed description of one majorinformation system20%Conclusion (Including recommendations& links to literature)15%Appendices 5%Management Information Systems (IS 5800)Management Information Systems, Fall 2006, Dr. Sabherwal4Fall 20061. Executive Summary (5%) should summarizethe rest of the report in 1 or 2 pages. It shouldpoint the key points of the report so that anexecutive who is too busy to read the entire reportcan get an excellent idea of the report justby reading the executive summary.2. General Background of the Organization (5%):(a) The business the organization is in,(b) The size of the organization (in terms ofnumber of employees and annual sales),(c) Its organization structure, and(d) Its main competitors.3. A summary of the functions of info. systems

(10%). This section should briefly summarizethe functions performed by the various informationsystems within the organization. This sectioncould benefit from a Table that conciselygives a list of the major benefits for each ofthese information systems.4. The IS Department (10%), including informationon:(a) The number of employees in the IS department,(b) The structure of the IS department,(c) The working style within the IS department(i.e., how formal or informal it is), and(d) The placement of the IS department in theoverall organization structure (i.e., who does thehead of the IS department report to?).5. Description of the structures and processesfor managing IS’s (30%). This section shoulddescribe how the organization manages informationsystems and technologies. Questionssuch as the following should be answered in thissection: How does the organization plan for thevarious information systems it would be developing?Which individuals and departments areinvolved in the IS planning process? How does

it decide how much resources would be allocatedto each system? How does it usually developsystems (e.g., in-house or outsourced?)Who evaluates information systems? How arethey typically evaluated? Who are the main individualsand committees involved in IS management?etc.6. Detailed description of one major informationsystem (20%): Select the one most importantinformation system for this organization, anddescribe it in detail. This section should addressquestions such as the following: Who are themain users of the system? What are the key inputsand outputs for the system? What benefitsdoes the system provide to various users? Whenwas it developed, and by whom? How much hasthe system changed over the years, and in whatways?7. Conclusion (15%). To conclude the report, theabove sections should be used to comment on(a) the nature of the overall IS managementprocess and the organization’s information systems;and (b) the future direction you (based oninterviews, etc.) foresee for the organization's IT

use and management. In drawing these conclusions,you should draw upon the concepts andcases covered in this course.8. Appendices (5%). The required appendicesinclude: (a) indicators of the organization’s size(annual sales & no. of employees); (b) a chart forthe overall organization structure; (c) a chart forthe structure of the IS department; (d) a list ofthe individual interviewed for the projects, includingtheir names and titles, and the date andapproximate duration of each interview; and (e)a list of all the articles referred in the report.Management Information Systems (IS 5800)Management Information Systems, Fall 2006, Dr. Sabherwal5Fall 2006TWO detailed proposals, which are each worth4% of the course grade, should be submitted.Each proposal should be 2 to 3 pages long(single-spaced), excluding appendices (Figures,Tables, etc.).One proposal (application proposal) should focuson a new IT application. This proposalshould state: (a) description of the proposed

application; (b) how you would go about developingit; (c) the expected benefits; (d) the expectedcosts; (e) why do you believe that thebenefits outweigh the costs.The second proposal (process proposal) shouldfocus on improvement in IS management. Inthis proposal, you should describe (a) the problemsin the current IS management, focusing onone specific process (e.g., planning, development,hardware acquisition, IS evaluation), (b)the proposed improvement (which should notbe a laundry list of several minor changes, but asubstantially different approach -- think “processreengineering”; and (c) the costs and benefitsof the proposed approach to IS management.In both these proposals, you may borrowideas from the cases discussed in class, but creativity(as long as not so wild as to be indefensible)will also be considered very important.Group Presentation (5%): Each group will presentin class its proposals about (a) the new ITapplication and (b) the new IS managementprocess. Each presentation is expected to lastabout 10 minutes (plus Q&A), although the exact

time available will depend on the number ofgroups. The presentation will concentrate onthe two proposals, providing the informationdescribed above. In addition, to help the otherstudents in following the proposal, each groupwill present a brief summary (one or two overheads)of the key information about the organization,its industry, and its current informationsystems.Peer evaluations (2%): All members should contributeto the group effort. To increase the likelihoodthat this happens, 2 points in the coursewill be based on peer evaluation by groupmembers. For this evaluation, each student willallocate 100 points among the OTHER membersof his/her group, and submit these peerevaluations in a closed envelope along with thegroup’s final assignment. If a student does notsubmit peer evaluations, it will be assumed that(s)he believes that the other group memberscontributed equally.Each group is expected to submit a one-pageproject idea identifying the organization, thenature of its IS’s, your reasons for selecting this

organization. and possible sources of information.The approval of the project idea by theInstructor will avoid duplication and ensureproper focus. This project idea should be submittedearly in the semester so that it can beapproved latest by 9/21NotesIf anyone has a health condition or disability,which may require accommodations in order toeffectively participate in this class, please contactthe Disability Access Services Office in 144Millennium Student Center at 516-6554. Informationabout the disability will be regarded asconfidential.No plagiarism! You may not copy directly fromsources unless you indent the text and put it inquotes. This should be limited to a few sentencesof specific quotations. You must rephrasesources, and only draw ideas from explicitlycited references. Any student who copies directlyfrom the web or printed sources will beturned over to Academic Affairs.Management Information Systems (IS 5800)Management Information Systems, Fall 2006, Dr. Sabherwal

6Fall 2006Contacting MeYou can meet me during my office hours or setup an appointment.You can contact me via e-mail. Please includeIS 5800 as the first part of the subject of your emailmessages. If you are attaching files, theymust be in Microsoft Office, ASCII (text), PDF,or iWork formats, and should be carefullychecked for virus. I will most likely reply toyour e-mail messages within 24 hours.You can call me at 516-6490. Again, I will try toreply to voice messages within 24 hours. But emailis much better.Finally, in case of an emergency, please send mean e-mail message with the subject as "EMERGENCY… IS 5800" and I will reply to it as soonas I see the message.Instructor BioI am a Curators’ Professor for the University ofMissouri System, the Emery C. Turner Professorof Information Systems at University of Missouri,St. Louis, and Director of the Ph.D. Program

in Business Administration (with informationsystems emphasis). I am the DepartmentalEditor (information technology) for IEEE Transactionson Engineering Management, and serveon the editorial boards for Information SystemsResearch, Journal of MIS, and Journal of AIS. Irecently completed a 3-year term as a SeniorEditor of MIS Quarterly.My research focuses on knowledge management,information systems strategy, and socialaspects of systems development. It has beenpublished in journals such as Information SystemsResearch, MIS Quarterly, California ManagementReview, Communications of the ACM,and Organization Science. Some of my researchhas been funded by the Advanced PracticesCouncil of the Society for Information Management.I have conducted detailed case studies at a varietyof leading organizations, including NASAKennedy Space Center, Ryder System Inc., BurgerKing, Microsoft, Miami Dade County, andTata Consultancy Services. I have spoken frequentlyto academic and business audiences inUnited States, Canada, Norway, Finland, and

India, and have taught executive or companybasedcourses on Project Management, GlobalElectronic Commerce, and Organizational InformationSystems.Management Information Systems (IS 5800)Management Information Systems, Fall 2006, Dr. Sabherwal7Fall 2006Date Topic Articles Cases8/24 Introductions Syllabus8/31 IT’s and decisions Evolving From Information to Insight Wyndham International9/7 IT’s and work processesInitial Project IdeaAutomated Decision Making … Pharmacy Service ... atCVS (A)9/14 Communication & InternettechnologiesEnterprise 2.0 Ford Argentina9/21 Knowledge management andbusiness intelligenceApproval of Project IdeaLearning From the Internet Giants Continental Airlines9/28 Exam 110/5 Outsourcing IT Proven Practices for Effectively Offshoring

...; The role of trust in outsourced

...Cathay Pacific …10/12 Open source development Open-source software development Novell …10/19 Strategic Management of IT Detours in the path toward strategicinformation systems alignment.Pfizer's Virtual CIO10/26 Exam 211/2 Organizational impacts of IT The End of Corporate Computing;Nick Carr BackpedalsEnterprise IT at Cisco11/9 Social impacts of IT ... #1 Privacy in Global E-Village;Who’s reading your office e-mail …Blogger in their Midst11/16 Social impacts of IT ... #2 Technology and Human Vulnerability;RFID enhances visitors' …Wikis at DresdnerKleinwort Wasserstein:(A)11/30 Conclusions, Recap, Presentations12/7 Presentations + Cases/Proposals12/14 Exam 3Management Information Systems (IS 5800)Management Information Systems, Fall 2006, Dr. Sabherwal

8