Bob Travica
MIS 2000
Class 10
Operations and
Information Systems
Updated 2018
Bob Travica
Outline
• Typologies of Information Systems
• Operation concept
• Transaction Processing System (TPS)
• Management Information System (MIS)
• Case on Customer Support MIS
– Marketing campaign process at Telco
– Problems and solutions
– Impact of organizational culture
• Summary
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Typologies of Information Systems
Information systems studied in this course:
• Transaction Processing system (TPS)
• Management Information System (MIS)
• Decision Support System (DSS)
• Knowledge Work System (KWS)
• Group Support System (GSS)
• Communication & Social Media Systems
• Enterprise Resource Planning System (ERPS)
Typologies show similarities and differences between these
systems looking from different angels.
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Typologies of Information Systems:
Organizational Function Focus
• Based on Org. Function:
- Production systems (support the core operations in an
organization; UofM: Aurora, D2L/UMLearn…)
- Accounting IS
- HRIS (human resources)
- Sales system, Purchasing system, Marketing system …
- In practice, may be called by brand name (D2L, Concur)
• These system are usually TPS & MIS
• Key difference between department-based information
systems in the data coverage (look back at schemas for
different business domains)
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Typologies of Information Systems:
Time Focus
• Based on Time Focus:
• Past/present focused:
– Supporting & recording current operations
– Reporting on the past business
• Future focused
– Planning, predicting
– Longer range decision making
Past Now Future
TPS, MIS DSS
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Typologies of Information Systems (IS):
User Group Focus
Different systems serve different groups of users.
System types have different level of detail, processing capabilities, and outputs.
Executive Decision Support System (DSS)
Management - Strategic decision making
Management Information
Mid-level
System (MIS) - Mid-range
Management
performance control & planning
Supervisory Transaction Processing
Management system (TPS) - Daily
operations control
Knowledge Work Group Support Communication Office Automation
Systems Systems Systems Systems
(professionals) (any teams) (everybody) (clerks, others)
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Typology of Information Systems:
Cross-referencing
• Relationship between IS types based on org. function and management
user groups:
Organizational User-based IS Type
Function-based IS
Human Resources IS TPS MIS DSS
(HRIS)
Management Level Supervisory Middle Executive
Example Database of Atop TPS; more Atop MIS; aggregate annual
travel claims queries and reports figures, and projecting future
with some with aggregate travel expenses and budget needs
queries expenses for longer
periods
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Operations
• Basis of business, recurring activities that generate
ongoing income and increase value of organizational assets.
• Also called business transactions – repeating atomic events
in organizations (buy, sell, bill, pay, hire, etc.)
• Best understood as business processes serving
organizational functions (production, HR, purchasing,
marketing, sales) – previous lecture.
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Operational Processes
• Operational processes are “bread & butter” of organizational life
because they:
(A) employ most of work
(B) create income
(C) incur most of costs (savings in operations directly
reflects in financial results)
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Operational Processes and their systems:
TPS and MIS
• TPS is part of operational processes, as they carry and track
(record) everyday operations in all segments of organization.
TPS determine design and performance of operational
processes.
• MIS create summary evidence on operations executed, or
reflect the business transpired.
Supply Production Delivery
Operational
Marketing Sales Customer Support
processes
Human Resources Accounting
Track & Reflect past
MIS MIS MIS
carry business
TPS TPS TPS
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Transaction Processing System (TPS)
TPS Serves supervisory management and has
present & past time focus.
TPS is a type of IS that stores & processes data
created in operational processes (‘transactions’).
TPS is a database with stored queries and reports.
Outputs reflect shorter periods of time, present and
recent past.
Output examples: sorted lists of parts expended,
Queries
Queries on
basic summaries of sales and purchases, etc. daily, weekly
business
Example of applications software for TPS
TPS
Database
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Management Information Systems (MIS)
Querie
Queries on
sdaily,
weekly
business
Computer
Complex Screen
Query & Reports
TPS Database
Report
Module Paper
MIS uses outputs from TPS (queries, reports) and additional
code and to create reports for mid-level managers.
MIS outputs reflect longer periods than the TPS outputs and
more elaborate numerical figures. Charts complement reports.
Example outputs: A summary of sales in last month or
quarter, with breakdowns and variance figures, and graphics.
Example of applications software for MIS
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Management Information Systems (MIS)
Kinds of reports:
1. Scheduled report - regularly created (e.g., on the end of
month or quarter)
2. Exception reports - created when something
exceptionally happens (e.g., a peak or drop in revenues).
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Case of Telco: Marketing Campaign Process As-Is
The term “As-is” refers to the factual state of a process.
Marketing CRMS Sales Clerk Mobtel Customer (any)
Professional Vendor
Store
campaign Place order
Read offers
Enter campaign
Enter campaign Find customer
in electronic bulletin
Display
customer record
Record order
Update in system X
customer
history
• CRMS (Customer Relationship Management System) is Telco’s MIS/TPS.
It is supposed to serve marketing campaigns.
• As-is process is sub-optimal. 14
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Data Diagram for Telco’s As-Is Marketing Process
creates given to
Campaign Offer Customer
makes places
Call Order
• Data diagram represents entities included in the process as-is.
• The process problems replicated - mixing marketing with sales -
ordering.
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Marketing Process at Telco – Evaluation of Design
Marketing CRMS Sales Clerk Mobtel Customer (any)
Professional Vendor
Store
campaign Place order
Read offers
Enter campaign
Enter campaign Find customer
in electronic bulletin
Display
customer record
Record order
Update in system X
customer
history
Process design Issues Finding
Composition Is this a marketing or sales process? Mixed
domains, two start points (wrong).
Coordination Unclear process deliverable as the
assessment basis. CRMS is a black hole (no
contribution to marketing campaigns).
Complexity Three IS resources involved (CRMS,
e-bulletin, customer order system).
CRMS as part of process design Negligible footprint.
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Marketing Process at Telco – Evaluation
Of Performance
Process Losses
performance
Time Cycle time (promote-sell) unpredictable. Slowness due to multiple
data sources and sinks.
Cost Inflated by deployment of 3 IS resources and time losses.
IS Support - CRMS is so little involved that its non-functional characteristics
make insignificant effect on process time, cost or customer value.
Customer Value - Marketing Professional: Process as-is doesn’t help informing on
results of marketing campaigns.
- Consumer: Poorly served.
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Marketing Campaign Process at Telco –
To-Be Process
The term “To-be” signifies a process as it should be (improved).
Marketing CRMS Sales Clerk Mobtel Customer (any)
Professional Vendor
Store Retreive
campaign campaign
Enter campaign Respond to
Call offer
Display customer
address & offers customer
Enter campaign Place order
in electronic bulletin
Read offers
Display
Find customer
Customer Record
Update Record order
customer
history
- Components in red belong to As-is process (deleted).
- Process optimized by focusing on marketing campaign steps and
eliminating customer ordering (red part), plus increasing the use of
CRMS. 18
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Marketing Campaign Process Optimization
– Data Diagram
promotes
Campaign Offer Customer
contains given to
OfferDetail
OfferID
CustomerID
Date
Accepted (yes/no)
• OrderDetail entity/table records what is offered to whom
and the offer outcome.
• The ratio Offers number/Accepted number provides a
clear indication of a marketing campaign success.
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Organizational Culture Impact
Department boundaries between Sales and Marketing
departments at Telco are rigid (departments as “silos”).
Marketing process can’t involve sales people but it should.
“Silos” have different cultures and don’t understand each other.
Organizational processes and ultimately performance suffer.
Wasted investments in CRMS.
Marketing Dept.:
Sales Dept.: Person focused
Bureaucracy culture
culture
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Summary
• IS are grouped on organizational function, time, and user group.
• Operations (transactions) are basic business processes that
generate most of income and costs.
• TPS track and carry operational processes. TPS outputs result from
querying, and examples are daily/weekly sorted lists of parts
expended, and summaries of sales or work hours.
• MIS reflect the business transpired, and use outputs from TPS to
create reports for mid-level mgmt. MIS outputs reports, containing
summary business figure for month/quarter/longer periods,
breakdowns, variance from plans, etc.
» More…
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• MIS reports can be regular and exceptional.
• Case of the marketing campaign process at Telco shows
process and data diagram in as-is form. The process has
sub-optimal design and does not perform well.
• The to-be process separates marketing from customer
order management and makes a fuller use of CRMS.
• Telco’s silo culture is responsible for sub-optimal process
design and performance.
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