CIMA E1 Syllabus E4. IT - Management Information System - Notes ^{2 / 7}

A MIS converts internal and external data into useful information which is then communicated to managers at all levels and across all functions to enable them to make timely and effective decisions for planning, directing and controlling activities.

Types Of MIS

1. Executive information system (EIS) - this gives senior management access to internal and external information. 

   Information is presented in a flexible, user-friendly, summarised form with the option to ‘drill down’ to a greater level of detail.

2. Decision support system (DSS) - this aids managers in making decisions. 

   The system predicts the consequences of a number of possible scenarios and the manager then uses their judgement to make the final decision.

3. Transaction processing system (TPS) - this is mainly used be operational managers to make decisions. 

   It records all the daily transactions of an organisation and summarises them so they can be reported on a routine basis.

4. Expert systems (ES) - this is a database that is built on knowledge and experience. 

   It cannot be off the shelf and does not only provide help and advice, it actually makes decisions. 

   It simulates the problem solving techniques of human experts. 

   This system can be used at all levels of management.

5. Knowledge Work System (KWS) - this is a computer application designed to help “knowledge workers” (professionals who use information as their primary input and whose major products are distillations of that information) to capture and organize work activity information, and to learn, prioritize, and execute their tasks more efficiently and effectively

6. Enterprise-wide System - this is designed to co-ordinate all business functions, resources and information, wherever they are geographically.

   The central database allows each business area to access and update information in real time and this means that information is easy to share, available to all business areas and is reliable.

7. Knowledge Management System (KMS) - this is the process of acquiring, sharing, retaining and utilising knowledge. Knowledge management systems (KMSs) refer to any type of IT that helps to capture, store, retrieve and use knowledge to enhance the knowledge management process.

Customer Relationship Management (CRM)

CRM systems are software applications which specialise in providing information concerning an organisation's products, services and customers.

Some benefits of CRM are:

1. Personalised service provided to the customer

2. Swift reply to customer queries

3. Increased motivation of customer-facing staff who feel they are properly equipped to do their job

4. Customer retention and loyalty due to better understanding of the customer, and being able to deal with them as an individual

5. Better targeted marketing material