Management Information Systems: Empowering Executive Decisions

Posted on Nov 24, 2024 in Other subjects

Management Information Systems (MIS)

Executive Information Systems (EIS)

An EIS is a management information system that automates the process of gathering, summarizing, and presenting an organization’s most important data. It provides easy access for executives, both inside and outside the business, to monitor critical success factors.

Characteristics of an EIS

  • Designed to meet the specific needs of senior management.
  • Extracts, filters, compresses, and tracks critical business information from transactional systems and/or external sources.
  • Allows executives to interact directly with the system without intermediaries.
  • Developed with high standards in human-machine interfaces, featuring high-quality graphics, tables, and text. The system is intuitive and requires no prior training.
  • Accesses information online, directly from the organization’s databases, allowing executives to penetrate different levels of information.
  • Supported by specialized hardware, such as high-resolution video monitors, touch screens, and advanced printers.

Decision Support Systems (DSS)

A DSS is an interactive, flexible, and adaptable computer-based information system designed to support the solution of unstructured management problems for improved decision-making. It provides a set of programs and tools to obtain information required during decision-making in uncertain environments.

Functions of a DSS

DSS allows for the analysis of different variables to support the business decision-making process. It also allows for:

  • Flexible data extraction and manipulation.
  • Support for unstructured decisions.
  • Combination of data and tools.
  • Inclusion of simulation and modeling tools.

General Features of DSS

  • Usually implemented after the most important transactional systems.
  • Tend to be intensive in data processing and low in input/output volume.
  • Do not typically save labor.
  • Interactive and user-friendly, with high standards of graphic and visual design.

Transactional Processing Systems (TPS)

A TPS collects, stores, modifies, and retrieves all information generated by an organization’s transactions. Transaction processing involves manipulating symbols like numbers and letters to increase their usefulness. A TPS collects and stores data about transactions, often involving validated documents. It sometimes controls decisions necessary to complete transactions (e.g., credit checks).

Features of a TPS

  • Quick Response
  • Reliability
  • Inflexibility
  • Controlled Processing

Public Tenders

A public tender is an auction or public bidding process for government contracts, works, services, purchasing, or procurement to obtain the best price and quality from contractors or suppliers.

Public tenders may be national or international.

Advantages of Public Tenders

  • Reduces corruption among public officials and private individuals.
  • The procedural requirement to award the tender to the most profitable bidder limits fraudulent agreements.
  • Bidders can monitor the process and use administrative remedies if the bid process is abnormal.

Disadvantages of Public Tenders

  • Slow process.
  • Tender guarantees do not always ensure the best deal.
  • Fraudulent agreements can still occur.

Awarding Public Tenders

A deadline should be specified in the tender notice and should not exceed twice the initial period. This period may be extended once for the same duration. After the deadline, the offeror can revoke their offer.

International Competitive Bidding

Involves participation from national and international bidders.

Tender Brief

  • A minimum of five bidders should be invited to participate.
  • If fewer than five bidders participate, the tender should be published in the official gazette.
  • The deadline for receiving tenders should be no less than twenty days, except in certain cases.
  • The award ceremony should be held on the date specified in the tender notice.
  • A provider registry should be maintained.

Outsourcing

Outsourcing is the long-term hiring and delegation of non-critical business processes to a specialist supplier to achieve greater effectiveness and focus the company’s efforts on its core mission.

Why Use Outsourcing?

  • Easier management of difficult or out-of-control functions.
  • Access to highly trained personnel.
  • Increased efficiency.
  • Cost reduction and/or control of operating expenses.

Advantages of Outsourcing

  • Allows companies to respond quickly to changing environments.
  • Increases company strengths.
  • Helps build shared value.
  • Helps redefine the company.

Disadvantages of Outsourcing

  • Reduced benefits.
  • Cost savings may not meet expectations.
  • Loss of control over production.
  • Stagnation in innovation from the outside supplier.

Areas Suitable for Outsourcing

  • Financial systems.
  • Accounting systems.
  • Marketing activities.
  • Human resources.

Areas Not Suitable for Outsourcing

  • Treasury.
  • Supplier control.
  • Quality management.
  • Customer service.