Slide 1 - Bütçe ve Mali Kontrol Genel Müdürlüğü
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Transcript of Slide 1 - Bütçe ve Mali Kontrol Genel Müdürlüğü
An introduction to An introduction to
Management Information Management Information (and) Systems(and) Systems
by Rock P.V. Klaar by Rock P.V. Klaar Master of Public AdministrationMaster of Public Administration
Certified Public ControllerCertified Public Controller
SubjectsSubjectsI.I. Context of Performance Context of Performance
management within the Dutch management within the Dutch Government Government
II.II. How do I determine what How do I determine what information I needinformation I need
III.III. How to make use of How to make use of Information TechnologyInformation Technology
I. Context of Performance management within the Dutch Government
a.Separation of policy bodies and operational bodies
b.Governance model around agencies
c. VBTB – From policy budgetting to policy accountibility
d.Accrual accounting
I.a/d. Separation of policy and I.a/d. Separation of policy and operational bodiesoperational bodies
Since the 90’s a proces has started to put Since the 90’s a proces has started to put the operations apart from the policy the operations apart from the policy departmentsdepartmentsToday 80% of the civil servants are Today 80% of the civil servants are working within agenciesworking within agenciesThe actual operation of government policy The actual operation of government policy takes place at the operational bodies such takes place at the operational bodies such as agencies and Independent as agencies and Independent Administrative Bodies (IAB)Administrative Bodies (IAB)Agencies and IAB are at the end of the MIS Agencies and IAB are at the end of the MIS line (where policy results are measured) line (where policy results are measured)
Government as business?Government as business?
private private governmental governmentalenterprisesenterprises bodies bodies
Contractor Contractor market or policy director
(pays) other enterprises general
ownerowner stockholders (dpt) secretary general
auditorauditor supervisory director of board Finance
I.b/d. Governance model around agencies and IAB’s
performerperformer enterprise agency/IAB
Government as business?Government as business?
private private governmental governmental
enterprisesenterprises bodies bodies
drive return of investment serving society
document annual account planning
orientation market politics and citizins
• Cost awareness concerted weighing of both policy and operational management
• professionalization of the relation between policy and operations with attention for results/effects for dutch society
Shared values:
I.b/d. Governance model around agencies/IAB’s
Information-pyramidInformation-pyramid
Regional offices of the agency
Agency
Owner
contractors Degree of detail of information
Accounting
Steering
Lower Chamber
Society: Consumer/ Target groups
minister
PoliticsMedia
Still there are many different formsStill there are many different forms
Minister
SG
DGDG DG
D D D
d4
board
d1
d2
d3d5
1)
1)
2)
3)
4)
5)
I.b/d. Governance model around agencies
5)
2)
3)
II. How to determine what information is neededa.Performance management in the perspective of
outcome
b.Performance management in the perspective of ambition
c. Different information on different tasks
d.Different information for different users
e.Performance management reflected in the Balanced Scorecard of dr.Kaplan
f. Use of Dashboards
g.Requirement of performance indicators
Implementation
Planning
Outcome
Sociaty effects
Output
Products, services and results
Throughput
Activities & processes
Input
Usage of people and means
EffectivityDoes the organization do the right things?
EfficiencyDoes the organization do the things right?
Efficiency and effectivity
II.a/g Performance management in the perspective of outcome
II. b/g Performance management in the perspective of ambition
Different levels of result orientation
Level of result orientation
Level of professionality of
instruments
Process oriented
Outcome oriented
Input oriented
Output oriented
Impact oriented
Management focus on utilizing input (budget disbursement)
(
Management focus on realizing outcome (effects on society)
Management focus on realizing output (products and or services)
Management focus on optimalizing processes (throughput)
Management focus on realizing van integral society changes
The level van be determined bij examening the instruments (components and approach).
II.c/g Different information on different tasks
Distinction of 5 types of tasks
1.1. Administration of estates or datasetsAdministration of estates or datasets2.2. Provision of entitlementsProvision of entitlements3.3. Keeping supervision by inspectionKeeping supervision by inspection4.4. Provide training or information/ related Provide training or information/ related to doing research to doing research 5. Registration and providing licences or 5. Registration and providing licences or permits permits 6. Other6. Other
II.c/g Different information on different tasksTaskTask Performance IndicatorPerformance Indicator AgencyAgency
1. Administration of 1. Administration of estates or datasetsestates or datasets
Number of buildings and Number of buildings and parcelsparcels
Government Government Building ServiceBuilding Service
2. Provision of 2. Provision of entitlementsentitlements
Number of processed Number of processed tax returns, % mistakestax returns, % mistakes
Tax departmentTax department
3. Inspection or 3. Inspection or keeping supervisionkeeping supervision
Costprize per inspection, Costprize per inspection, number of inspectionsnumber of inspections
Food & Goods Food & Goods authorityauthority
4. Provide training 4. Provide training or information or information bases on researchbases on research
Quality measured bij Quality measured bij visitation, client visitation, client satisfactionsatisfaction
Netherlands Netherlands Forensic Forensic InstituteInstitute
5. Registration and 5. Registration and providing licences providing licences or permits or permits
Number of registrations, Number of registrations, time per registration, time per registration, lead timelead time
Netherlands Netherlands Patent OfficePatent Office
6. Other6. Other Costprize per client, Costprize per client, percentage of escapespercentage of escapes
Prison ServicePrison Service
Example of BSC for Netherlands Example of BSC for Netherlands Emission authority Emission authority
Product Product typetype
Ministry of Ministry of EnvironmentEnvironment
OwnerOwner
Cost-Cost-efficiencyefficiency
Ministry of Ministry of EnvironmentEnvironment
ContractorContractor
Policy-Policy-
EffectivityEffectivity
EnterprisesEnterprises
TargetgroupTargetgroup
Administrative Administrative burdenburden
turnroundtimeturnroundtime
SocietySociety
/politics/politics
EffectivityEffectivity
registrationregistration
Number of Number of handlinghandling
Hours / kg Hours / kg CO2CO2
System-System-
costs per costs per registred kg registred kg CO2CO2
% of % of enterprises enterprises that that participate in participate in the trade of the trade of CO2 CO2 emission emission rights rights
Execution time Execution time of data within of data within the public the public registerregister
Percentage Percentage defective in defective in registerregister
Debit/Credit Debit/Credit balance balance between between obtained and obtained and sold kg of sold kg of with other with other countriescountries
InspectionInspection Costs per Costs per evaluated kg evaluated kg CO2CO2
% of CO2 % of CO2 reports reports evaluated evaluated within the within the legal term legal term
% complaints % complaints concerningconcerning
Incorrect Incorrect treatmenttreatment
Catching rateCatching rate
Internal Internal
OrganisationOrganisation
Personel-Personel-
SatisfactionSatisfaction
ProcessesProcesses
InnovationInnovation
Number of Number of corrections corrections after first after first inputinput
Percentual Percentual number of number of justly justly suspected suspected enterprisesenterprises
II d/g. Different information for different users Management information system (MIS)
• A MIS provides managers with information and support for effective decision making, and provides feedback on daily operations
• Output, or reports, are usually generated through accumulation of transaction processing data
• Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization
TYPES OF INFORMATION SYSTEMSTYPES OF INFORMATION SYSTEMS
DATA WORKERSDATA WORKERS
KIND OF SYSTEM GROUPS SERVEDKIND OF SYSTEM GROUPS SERVED
STRATEGIC LEVEL SENIOR STRATEGIC LEVEL SENIOR MANAGERSMANAGERS
MANAGEMENT LEVEL MIDDLE MANAGEMENT LEVEL MIDDLE MANAGERSMANAGERS
OPERATIONAL OPERATIONAL
OPERATIONAL LEVEL OPERATIONAL LEVEL MANAGERS MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &KNOWLEDGE LEVEL KNOWLEDGE &
SALES & MANUFACTURING FINANCE ACCOUNTING HUMANSALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCESRESOURCESMARKETINGMARKETING
II d/g. Different information for different users
II. d/g Different information for different users
Different levels of result orientation
Level of result orientation
Level of professionality of
instruments
Process oriented
Outcome oriented
Input oriented
Output oriented
Impact oriented
Management focus on utilizing input (budget disbursement)
(on behalve of financial department)
Management focus on realizing outcome (effects on
society) (on behalve of the policy Director General)
Management focus on realizing output (products and
or services) (on behalve of the board of directors)
Management focus on optimalizing processes (throughput)
(on behalve of operational management)
Management focus on realizing van integral society changes
(on behalve of the Lower Chamber)
The level van be determined bij examening the instruments (components and approach).
• product portfolio
• quantities
• qualitiy of products
and services
• cost-prize
Performance Indicators between agency and Contractor
Contractor Agency
Citizens / enterprises
Citizens / enterprises
• responsibilities/ authorizations• management control systeem• cost prize model• investment policy• financings policy• risk policy• reporting requirements• approval of tariffs
Scope of management
Agency
Owner
Director of Finance, Court of auditors,
General Audit Chamber
Balanced ScorecardBalanced Scorecard
II.e/g Performance management reflected in the Balanced Scorecard
(dr.Kaplan)
Innovation perspective
Internal Organization
Financial perspective
Costumer perspective
Owners perspective: : The perspective of the Secretart General in the role of The perspective of the Secretart General in the role of ownerowneris continuity and quality of the organization is continuity and quality of the organization Contractors perspective:Contractors perspective: The perspective of the policy Director General(s) in the role The perspective of the policy Director General(s) in the role of contractor is focuses on content and quality of the of contractor is focuses on content and quality of the products delivered and the costprize that must ne payedproducts delivered and the costprize that must ne payed
Internal Organization perspectiveInternal Organization perspective: : the perspective of the internal organization is the the perspective of the internal organization is the perspective of a positive balance of personel needs, perspective of a positive balance of personel needs, processes, infrastructure and organizational structure processes, infrastructure and organizational structure aswell as apropropriate corporate culture aswell as apropropriate corporate culture
Innovation and learning perspectiveInnovation and learning perspectiveIs the perspective of the degree of readiness for future Is the perspective of the degree of readiness for future developments in the broadest meaning developments in the broadest meaning
II.e/g Performance management reflected in the Balanced Scorecard Within the public sector these perspectives can
be interpreted as follows:
BalancedScorecard
Customer perspective
Innovation & Learning perspective
Owners Perspective
Internal & Business Perspective
•#of days per employee spended on education
•# of defined brand concepts
•# drop out R&D projects
•company image•profitibility•Embedded value •Movement•Company costs•Progress in investment
plan
•price premium•preferred supplier status•service levels•brand awareness•time to market
•Users (target groups) satisfaction
•Number of complaints
•progress in realisation of plans
•% staff on required level•progress in IT plan•potentials +criteria•Staff contentment•Absence through sickness
Balanced Scorecard
From mission to DashboardFrom mission to Dashboard
StrategicobjectivesStrategicobjectives
Critical SuccessFactors
Critical SuccessFactors
Performanceindicators
Performanceindicators
Organisation
Mission Business
scope/SWOT
Businessscope/SWOT Translated
CSF’sTranslated
CSF’s
MT Dashboard
BalancedBusinessScorecard
Customer perspective
Innovation & Learning perspective
Financial Perspective
Internal & Business Perspective
• # new product/market combinations• sales new product/market
combinations• # R&D projects in progress• # end products per brand
• sales• gross margin• ROS %• milk results• operating cash flow %• economic premium/ROI• tons
• % weighed distribution coverage• consumer appreciation• retailer appreciation• market share
• % realised plans- brands- countries- acquisitions- account plans- R&D products- R&D processes
• production result• employee satisfaction• sales cost/total sales
II. f/g Usage of Dashboards
Steps to make
1. Mission
2. Business scope/SWOT
3. Strategic objectives
4. CSF’s
5. Translated CSF’s
6. Definition of PI’s (Action oriented en Result oriented)
7. Selection of PI’s for GD Dashboard
8. Evaluation PI’s
What to do after What to do after designing a dashboard ?designing a dashboard ?
design the
dashboards
Definethe
document
Build the formats
Routing/ embeddin
gin systems
test the Dasboards
Use the Dashboard
s
II. g/g Requirements of Performance indicatorsII. g/g Requirements of Performance indicators
Financial and non financialFinancial and non financial
Related to translated CSF’sRelated to translated CSF’s
Both internal and externalBoth internal and external
Specific for each dashboard levelSpecific for each dashboard level
Sometimes temporarySometimes temporary
SMARTSMART- S = Specific- S = Specific- M = Measurable- M = Measurable- A = Achievable- A = Achievable- R = Reliable- R = Reliable- T = Timely- T = Timely
PI’s do not have to cover everything ; it’s all about focus and setting priorities
III.How to make use of Information Technology
a.Types of information systems
b.Financial versus operational information
c. Entreprise Resource Planning systems
Information Systems: Concepts and Information Systems: Concepts and DefinitionsDefinitions
Data Item.Data Item. Elementary description of things, Elementary description of things, events, activities and transactions that are events, activities and transactions that are recorded, classified and stored but are not recorded, classified and stored but are not organized to convey any specific meaning.organized to convey any specific meaning.
Information.Information. Data organized so that they have Data organized so that they have meaning and value to the recipient.meaning and value to the recipient.
Knowledge.Knowledge. Data and/or information organized Data and/or information organized and processed to convey understanding, and processed to convey understanding, experience, accumulated learning and expertise experience, accumulated learning and expertise as they apply to a current problem or activity. as they apply to a current problem or activity.
SYSTEMS FROM A FUNCTIONAL PERSPECTIVESYSTEMS FROM A FUNCTIONAL PERSPECTIVE
1.1. SALES & MARKETING SYSTEMSSALES & MARKETING SYSTEMS2.2. MANUFACTURING & PRODUCTION MANUFACTURING & PRODUCTION
SYSTEMSSYSTEMS3.3. FINANCE & ACCOUNTING SYSTEMSFINANCE & ACCOUNTING SYSTEMS4.4. HUMAN RESOURCES SYSTEMSHUMAN RESOURCES SYSTEMS5.5. OTHERSOTHERS6.6. MANAGEMENT INFORMATION SYSTEMSMANAGEMENT INFORMATION SYSTEMS
III a/c Types of information systems
1.Sales & Marketing Systems (SMS)1.Sales & Marketing Systems (SMS)
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:
Sales management, market research, Sales management, market research, promotion, pricing, new productspromotion, pricing, new products
MAJOR APPLICATION SYSTEMSMAJOR APPLICATION SYSTEMS::Sales order info system, market research Sales order info system, market research system, pricing systemsystem, pricing system
III a/c Types of information systems
2. Manufacturing & Production Systems (MPS)2. Manufacturing & Production Systems (MPS)
MAJOR FUNCTIONS OF SYSTEMSMAJOR FUNCTIONS OF SYSTEMS::
Scheduling, purchasing, shipping, Scheduling, purchasing, shipping, receiving, engineering, operationsreceiving, engineering, operations
MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:
Materials resource planning systems, Materials resource planning systems, purchase order control systems, purchase order control systems, engineering systems, quality control engineering systems, quality control systemssystems
III a/c Types of information systems
3. Finance & Accounting Systems (FAS)3. Finance & Accounting Systems (FAS)
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:
Budgeting, general ledger, billing, Budgeting, general ledger, billing, cost accountingcost accounting
MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:
General ledger, accounts receivable, General ledger, accounts receivable, accounts payable, budgeting, funds accounts payable, budgeting, funds management systemsmanagement systems
III a/c Types of information systems
4. Human Resources Systems (HRS)4. Human Resources Systems (HRS)
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:
Personnel records, benefits, Personnel records, benefits, compensation, labor relations, trainingcompensation, labor relations, training
MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:
Payroll, employee records, benefit Payroll, employee records, benefit systems, career path systems, systems, career path systems, personnel training systemspersonnel training systems
**
III a/c Types of information systems
5. Other Types (e.g., University)5. Other Types (e.g., University)
MAJOR FUNCTIONS OF SYSTEMS:MAJOR FUNCTIONS OF SYSTEMS:
Admissions, grade records, course Admissions, grade records, course records, alumnirecords, alumni
MAJOR APPLICATION SYSTEMS:MAJOR APPLICATION SYSTEMS:
Registration system, student Registration system, student transcript system, curriculum class transcript system, curriculum class control system, alumni benefactor control system, alumni benefactor systemsystem
III a/c Types of information systems
MANAGEMENT LEVELMANAGEMENT LEVEL
INPUTS:INPUTS: HIGH VOLUME DATA HIGH VOLUME DATA
PROCESSING:PROCESSING: SIMPLE MODELS SIMPLE MODELS
OUTPUTS:OUTPUTS: SUMMARY REPORTS SUMMARY REPORTS
USERS:USERS: MIDDLE MANAGERS MIDDLE MANAGERS
EXAMPLE: ANNUAL BUDGETINGEXAMPLE: ANNUAL BUDGETING
6. Management Information Systems 6. Management Information Systems (MIS)(MIS)
III a/c Types of information systems
Management Information System (MIS) Function: Produce reports summarized from transaction data, usually in one functional area.Example: Report on total sales of each customer.Supports: Primarily for middle managers, sometimes for lower level managers as well.
STRUCTURED & SEMI-STRUCTURED STRUCTURED & SEMI-STRUCTURED DECISIONSDECISIONSREPORT CONTROL ORIENTEDREPORT CONTROL ORIENTEDPAST & PRESENT DATAPAST & PRESENT DATAINTERNAL ORIENTATIONINTERNAL ORIENTATIONLENGTHY DESIGN PROCESSLENGTHY DESIGN PROCESS
Management Information Systems Management Information Systems (MIS)(MIS)
III a/c Types of information systems
Features
INTERRELATIONSHIPS AMONG SYSTEMSINTERRELATIONSHIPS AMONG SYSTEMS
FAS
SMSMPS
HRSMIS
III a/c Types of information systems
Finance and accouting
Human Resource
Management information
Manufacturing and production
Sales and marketing
An Organization’sMIS
FinancialMIS
MarketingMIS
HumanResources
MIS
Etc.
AccountingMIS
Drill down reports
Exception reports
Demand reports
Key-indicator reports
Scheduled reports
Databasesof
externaldata
Databasesof
validtransactions
Transactionprocessing
systems
Businesstransactions
Businesstransactions
ExtranetExtranet
InternetInternet
Etc.
– Function: Integrate all functional areas of the Function: Integrate all functional areas of the organization.organization.
– Example: Oracle, SAPExample: Oracle, SAP
Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) systemssystems
integrate the planning, management and use of integrate the planning, management and use of all resources of the organization.all resources of the organization.
ERP’s major objective is to tightly integrate the ERP’s major objective is to tightly integrate the functional areas of the organization and to functional areas of the organization and to enable seamless information flows across the enable seamless information flows across the functional areas.functional areas.
•Business process is a set of related steps or procedures designed to produce a specific outcome.
•Business processes supported by ERP modules include Financial and Accounting Processes, Sales and Marketing Processes, Manufacturing and Production Processes and Human Resources Processes.
Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) systemssystems
Best practicesBest practices are the most successful are the most successful solutions or problem-solving methods for solutions or problem-solving methods for achieving a business objective.achieving a business objective.Drawbacks to ERP systems are that they Drawbacks to ERP systems are that they can be can be extremely complexextremely complex, , expensiveexpensive and and time-consumingtime-consuming to implement. to implement.Leading ERP software vendors include Leading ERP software vendors include SAP (SAP R/3), Oracle and PeopleSoft.SAP (SAP R/3), Oracle and PeopleSoft.
Enterprise Resource Planning (ERP) Enterprise Resource Planning (ERP) systemssystems
BENEFITS OF ENTERPRISE BENEFITS OF ENTERPRISE SYSTEMSSYSTEMS
FIRM STRUCTURE & ORGANIZATION:FIRM STRUCTURE & ORGANIZATION: One One organizationorganization
MANAGEMENT:MANAGEMENT: Firmwide knowledge-based Firmwide knowledge-based management processesmanagement processes
TECHNOLOGY:TECHNOLOGY: Unified platform Unified platform
BUSINESS:BUSINESS: More efficient operations & More efficient operations & customer-driven business processescustomer-driven business processes
**
CHALLENGES OF CHALLENGES OF ENTERPRISE SYSTEMSENTERPRISE SYSTEMS
Daunting implementationDaunting implementation
High up front costs and future High up front costs and future benefitsbenefits
InflexibilityInflexibility
Hard to realize strategic valueHard to realize strategic value
Corporatedatabasesofinternaldata
Databasesofexternaldata
Databasesofvalidtransactions
Operationaldatabases
Transactionprocessingsystems
Managementinformationsystems
Decisionsupportsystems
Executivesupportsystems
Expertsystems
Businesstransactions
Input anderror list
Drill-down reports
Exception reports
Demand reports
Key-indicator reports
Scheduledreports
Employees
Corporateintranet
Applicationdatabases
Outputs of a Outputs of a Management Information SystemManagement Information System
Scheduled reportsScheduled reportsProduced periodically, or on a schedule (daily, Produced periodically, or on a schedule (daily, weekly, monthly)weekly, monthly)
Key-indicator reportKey-indicator reportSummarizes the previous day’s critical activitiesSummarizes the previous day’s critical activitiesTypically available at the beginning of each dayTypically available at the beginning of each day
Demand reportDemand reportGives certain information at a manager’s requestGives certain information at a manager’s request
Exception reportException reportAutomatically produced when a situation is unusual Automatically produced when a situation is unusual or requires management actionor requires management action
Characteristics of a Management Characteristics of a Management Information SystemInformation System
Provides reports with fixed and Provides reports with fixed and standard formatsstandard formats– Hard-copy and soft-copy reportsHard-copy and soft-copy reports
Uses internal data stored in the Uses internal data stored in the computer systemcomputer system
End users can develop custom End users can develop custom reportsreports
Requires formal requests from usersRequires formal requests from users
Characteristics of Enterprise Characteristics of Enterprise SystemsSystems
24*7 usage24*7 usage
Many users Many users
Stable and safeStable and safe
Supports primary processSupports primary process
Contains essential business dataContains essential business data
Linked to others systems and Linked to others systems and technologiestechnologies
Critical asset for businessCritical asset for business