Day 2 Management Information system

Day 2 Management Information system - An introduction to...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: An introduction to Management Information (and) Systems (and) by Rock P.V. Klaar Master of Public Administration Certified Public Controller Subjects Subjects I. Context of Performance management within the Dutch Government II. How do I determine what information I need III. How to make use of Information 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 operational bodies operational Since the 90’s a proces has started to put the operations apart from the policy departments Today 80% of the civil servants are working within agencies The actual operation of government policy takes place at the operational bodies such as agencies and Independent Administrative Bodies (IAB) Agencies and IAB are at the end of the MIS line (where policy results are measured) I.b/d. Governance model around agencies and IAB’s Government as business? Government private governmental enterprises bodies owner owner Contractor Contractor stockholders market or (dpt) secretary general policy director (pays) other enterprises general auditor auditor supervisory board director of Finance performer enterprise agency/IAB I.b/d. Governance model around agencies/IAB’s Government as business? Government document private governmental enterprises bodies annual account drive return of investment orientation market planning serving society politics and citizins Shared values: • 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 Info rmatio n-pyramid Info Society: Consumer/ Target groups Lower Chamber Media Politics Ac c o unting minister Owne r De g re e o f d e tail o f info rmatio n c o ntrac to rs Agency Regional offices of the agency S te e ring I.b/d. Governance model around agencies Still there are many different forms Still 1) board Minister 1) SG d1 2) DG 5) DG DG 2) d2 3) d5 5) D D D d3 3) 4) d4 II. How to determine what information is needed a. 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 II.a/g Performance management in the perspective of outcome Efficiency and effectivity Implementation Outcome Output Throughput Input Sociaty effects Products, services and results Activities & processes Usage of people and means Efficiency Does the organization do the things right? Effectivity Does the organization do the right things? Planning II. b/g Performance management in the perspective of ambition Different levels of result orientation Level of result orientation Impact oriented Management focus on realizing van integral society changes Outcome oriented Output oriented Management focus on realizing output (products and or services) Process oriented Input oriented Management focus on realizing outcome (effects on society) Management focus on optimalizing processes (throughput) Management focus on utilizing input (budget disbursement) ( Level of professionality of instruments 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. Administration of estates or datasets 2. Provision of entitlements 3. Keeping supervision by inspection 4. Provide training or information/ related to doing research 5. Registration and providing licences or permits 6. Other II.c/g Different information on different tasks Task Performance Indicator Agency 1. Administration of estates or datasets 2. Provision of entitlements 3. Inspection or keeping supervision 4. Provide training or information bases on research 5. Registration and providing licences or permits 6. Other Number of buildings and parcels Number of processed tax returns, % mistakes Costprize per inspection, number of inspections Quality measured bij visitation, client satisfaction Government Building Service Tax department Number of registrations, time per registration, lead time Costprize per client, percentage of escapes Netherlands Patent Office Food & Goods authority Netherlands Forensic Institute Prison Service Example of BSC for Netherlands Emission authority Product type Product type Ministry of Environment Ministry of Environment Owner Contractor Number of handling registration Hours / kg CO2 System­ Inspection costs per registred kg Costs per CO2 evaluated kg CO2 Society Internal Targetgroup /politics Organisation Policy­ Administrative burden Effectivity Personel­ Effectivity Cost­efficiency Enterprises turnroundtime % of enterprises that participate in the trade of CO2 emission rights Execution time of data within the public register Percentage defective in register % complaints concerning % of CO2 reports evaluated Incorrect within the legal treatment term Satisfaction Processes Debit/Credit balance between obtained and sold kg of with other countries Number of Innovation corrections after first input Catching rate Percentual number of justly suspected enterprises 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 II d/g. Different information for different users KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS MANAGERS MANAGEMENT LEVEL MANAGEMENT MIDDLE MANAGERS MANAGERS KNOWLEDGE LEVEL KNOWLEDGE OPERATIONAL OPERATIONAL MANAGERS SALES & SALES MARKETING KNOWLEDGE & DATA WORKERS LEVEL MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCES RESOURCES TYPES OF INFORMATION SYSTEMS TYPES II. d/g Different information for different users Different levels of result orientation Level of result orientation Impact oriented Outcome oriented Output oriented Process oriented Management focus on realizing van integral society changes (on behalve of the Lower Chamber) 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) Input oriented Management focus on utilizing input (budget disbursement) (on behalve of financial department) Level of professionality of instruments The level van be determined bij examening the instruments (components and approach). Performance Indicators between agency and Contractor Contractor Agency • product portfolio • quantities • qualitiy of products and services • cost-prize Citizens // Citizens enterprises enterprises Scope of management Owner • responsibilities/ authorizations • management control systeem • cost prize model • investment policy • financings policy • risk policy • reporting requirements • approval of tariffs Director of Finance, Court of auditors, General Audit Chamber Agency II.e/g Performance management reflected in the Balanced Scorecard (dr.Kaplan) Financial perspective Costumer perspective Internal Organization Innovation perspective Balanced Scorecard Balanced II.e/g Performance management reflected in the Balanced Scorecard Within the public sector these perspectives can be interpreted as follows: Owners perspective: The perspective of the Secretart General in the role of owner is continuity and quality of the organization Contractors perspective: The perspective of the policy Director General(s) in the role of contractor is focuses on content and quality of the products delivered and the costprize that must ne payed Internal Organization perspective: the perspective of the internal organization is the perspective of a positive balance of personel needs, processes, infrastructure and organizational structure aswell as apropropriate corporate culture Innovation and learning perspective Is the perspective of the degree of readiness for future developments in the broadest meaning Balanced Scorecard Owners Perspective • • • • • • company image profitibility Embedded value Movement Company costs Progress in investment plan Customer perspective • • • • • price premium preferred supplier status service levels brand awareness time to market • Users (target groups) satisfaction • Number of complaints Internal & Business Perspective Balanced Scorecard Innovation & Learning perspective • #of days per employee spended on education • # of defined brand concepts • # drop out R&D projects • • • • • • progress in realisation of plans % staff on required level progress in IT plan potentials +criteria Staff contentment Absence through sickness II. f/g Usage of Dashboards Organisation Missio n Business Business scope/ scope/ SWOT SWOT Strategic Strategic objectives objectives MT Dashboard Financial Perspective • • • • • • • Translated Translated CSF’s CSF’s Performance Performance indicators indicators sales gross margin ROS % milk results operating cash flow % econo mic prem ium/ROI tons Cust omer perspective Internal & Business Perspective • % weigh ed d istrib utio n co verage • co nsumer appreciation • retailer appreciation • market share Critical Success Critical Success Factors Factors From mission to Dashboard From Balanced Business Scorecard Innovation & Learning perspective • # n ew prod uct/market c om bination s • sales new product/market com binatio ns • # R&D p ro jects in prog ress • # en d products per brand • % realised plans ­ b rands ­ co untries ­ acquisitions ­ account plans ­ R& D products ­ R& D processes • pro ductio n resu lt • emp loy ee satisfaction • sales cost/total sales 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 designing a dashboard ? designing design the dashboards Define the document Build the formats Routing/ embedding in systems test the Dasboards Use the Dashboards II. g/g Requirements of Performance indicators II. Financial and non financial Related to translated CSF’s Both internal and external Specific for each dashboard level Sometimes temporary SMART ­ S = Specific ­ M = Measurable ­ A = Achievable ­ R = Reliable ­ 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 Definitions Definitions Data Item. Elementary description of things, events, activities and transactions that are recorded, classified and stored but are not organized to convey any specific meaning. Information. Data organized so that they have meaning and value to the recipient. Knowledge. Data and/or information organized and processed to convey understanding, experience, accumulated learning and expertise as they apply to a current problem or activity. III a/c Types of information systems SYSTEMS FROM A FUNCTIONAL PERSPECTIVE SYSTEMS 1. SALES & MARKETING SYSTEMS 2. MANUFACTURING & PRODUCTION SYSTEMS 3. FINANCE & ACCOUNTING SYSTEMS 4. HUMAN RESOURCES SYSTEMS 5. OTHERS 6. MANAGEMENT INFORMATION SYSTEMS III a/c Types of information systems 1.Sales & Marketing Systems (SMS) 1.Sales MAJOR FUNCTIONS OF SYSTEMS: Sales management, market research, promotion, pricing, new products MAJOR APPLICATION SYSTEMS: Sales order info system, market research system, pricing system III a/c Types of information systems 2. Manufacturing & Production Systems (MPS) 2. : Scheduling, purchasing, shipping, receiving, engineering, operations MAJOR FUNCTIONS OF SYSTEMS MAJOR APPLICATION SYSTEMS: Materials resource planning systems, purchase order control systems, engineering systems, quality control systems III a/c Types of information systems 3. Finance & Accounting Systems (FAS) 3. MAJOR FUNCTIONS OF SYSTEMS: Budgeting, general ledger, billing, cost accounting MAJOR APPLICATION SYSTEMS: General ledger, accounts receivable, accounts payable, budgeting, funds management systems III a/c Types of information systems 4. Human Resources Systems (HRS) 4. MAJOR FUNCTIONS OF SYSTEMS: Personnel records, benefits, compensation, labor relations, training MAJOR APPLICATION SYSTEMS: Payroll, employee records, benefit systems, career path systems, personnel training systems * III a/c Types of information systems 5. Other Types (e.g., University) 5. MAJOR FUNCTIONS OF SYSTEMS: Admissions, grade records, course records, alumni MAJOR APPLICATION SYSTEMS: Registration system, student transcript system, curriculum class control system, alumni benefactor system III a/c Types of information systems 6. Management Information Systems (MIS) 6. (MIS) 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. MANAGEMENT LEVEL MANAGEMENT LEVEL INPUTS: HIGH VOLUME DATA PROCESSING: SIMPLE MODELS OUTPUTS: SUMMARY REPORTS USERS: MIDDLE MANAGERS EXAMPLE: ANNUAL BUDGETING III a/c Types of information systems Management Information Systems (MIS) Management (MIS) Features STRUCTURED & SEMI­STRUCTURED STRUCTURED & SEMI­STRUCTURED DECISIONS REPORT CONTROL ORIENTED PAST & PRESENT DATA INTERNAL ORIENTATION LENGTHY DESIGN PROCESS III a/c Types of information systems INTERRELATIONSHIPS AMONG SYSTEMS INTERRELATIONSHIPS Finance and accouting FAS Management information Manufacturing and production MIS MPS HRS SMS Human Resource Sales and marketing Internet Internet An Organization’s MIS Financial MIS Business transactions Transaction processing systems Business transactions Extranet Extranet Databases of valid transactions Databases of external data Accounting MIS Drill down reports Exception reports Demand reports Marketing MIS Human Resources MIS Etc. Key-indicator reports Scheduled reports Etc. Enterprise Resource Planning (ERP) systems integrate the planning, management and use of all resources of the organization. ERP’s major objective is to tightly integrate the functional areas of the organization and to enable seamless information flows across the functional areas. – Function: Integrate all functional areas of the organization. – Example: Oracle, SAP Enterprise Resource Planning (ERP) systems •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) systems Best practices are the most successful Best practices solutions or problem­solving methods for achieving a business objective. Drawbacks to ERP systems are that they can be extremely complex, expensive and time­ consuming to implement. Leading ERP software vendors include SAP (SAP R/3), Oracle and PeopleSoft. BENEFITS OF ENTERPRISE SYSTEMS SYSTEMS FIRM STRUCTURE & ORGANIZATION: One organization MANAGEMENT: Firmwide knowledge­based management processes TECHNOLOGY: Unified platform BUSINESS: More efficient operations & customer­driven business processes * CHALLENGES OF ENTERPRISE SYSTEMS ENTERPRISE Daunting implementation High up front costs and future benefits Inflexibility Hard to realize strategic value Employees Corporate databases of internal data Business transactions Transaction processing systems Operational databases Databases of valid transactions Databases of external data Management information systems Corporate intranet Decision support systems Application databases Drill-down reports Exception reports Demand reports Key-indicator reports Input and error list Scheduled reports Executive support systems Expert systems Outputs of a Management Information System Management Scheduled reports Produced periodically, or on a schedule (daily, weekly, monthly) Key­indicator report Summarizes the previous day’s critical activities Typically available at the beginning of each day Demand report Gives certain information at a manager’s request Exception report Automatically produced when a situation is unusual or requires management action Characteristics of a Management Information System Information Provides reports with fixed and standard formats – Hard­copy and soft­copy reports Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users Characteristics of Enterprise Systems Systems 24*7 usage Many users Stable and safe Supports primary process Contains essential business data Linked to others systems and technologies Critical asset for business ...
View Full Document

This note was uploaded on 11/15/2011 for the course I SYS 201 taught by Professor Meservy during the Winter '11 term at BYU.

Ask a homework question - tutors are online