As a bank industry Creel need to capture customer data, store it and deliver it on time in order to be effective in providing customer related questions or queries. As a Chief Information Officer I need to do a careful analyze on utilizing the three systems such as Management Information System, Executive Information Systems and Decision Support System. All these three systems are very useful to make business related decision. Basically different level managers required different type of information to make decision.
For an example middle level managers required management information system, senior level managers required decision support system and Executives required executive support systems. Each level of Managers requires different type of information system to make decision and the information is important for them. First of all, understanding the definition of each type of information system is a basic study can be done in the initial stage. The initial concepts of MIS were to process data from the organization and present it in the form of reports at regular intervals.
The system was largely capable of handling the data from election to processing (Guppy, 2007). It was more impersonal, requiring each individual to pick and choose the processed data and use it for his requirements. This concept was further modified when a distinction was made between data and information. The information is a product of an analysis of data. This concept is similar to a raw material and the finished product. This concept is similar to a raw material and the finished product.
What are needed are information and not a mass of data. However, the data can be analyzed in a number of ways, producing different shades and specifications of the information as a product. Objectives: 1 . To utilize the information system in Creel banking system fully. 2. To identify the system this required much budget allocation. 3. To reduce the spending on information systems by allocating sufficient resources. 4. To propose the right system that can be implemented in future. 5. To study each and every system thoroughly.
Management Information System Definition and Functions The Management Information System is an approach of the preceding decade and it has been understood and described in a several types. Management information system ensures that a relevant data is collected from the different resources and processed to send further to all the required persons (C. L. P. Guppy, Sahara, & Tripartite, 2012). The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and the top management.
The management information system satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems the MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing. The MIS helps the clerical personnel in the transaction processing ND answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents.
The MIS helps the junior management personnel by providing the operational data for planning, scheduling and control, and helps them further in decision making at the operations level to correct an out of control situation. The MIS helps the middle management in short them planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. The MIS helps the top management in goal setting, strategic planning ND evolving the business plans and their implementation.
The MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization. Every person in the organization is a user of the MIS. The people in the organization operate at all levels in the hierarchy. A typical user is a clerk, an assistant, an officer, an executive or a manager. Each of them has a specific task and a role to play in the management of business. For example, a clerk is to search the data, make a statement and submit it to the higher level.
A clerk can use the MIS for a quick search and reporting the same to higher level. An assistant has the task of collecting and organizing the data, and conducting a rudimentary analysis of integrating the data from different and disciplines to analyze it and make a critical comment if anything adverse is found. The MIS offers the methods and facilities to integrate the data and report the same in a proper format. An executive plays the role of a decision maker. Decision Support System Definition and Functions Decision support systems are not entirely different from other systems and require a structure approach.
The decision support system’s guideline has three main levels which is technology levels, people involved and the developmental approach. Basically, technology levels are divided into three levels of hardware and software (level 1 – specific ADS, level 2 – ADS generator and level 3- ADS tools) (Thiensville & Cachet, 2012). Level 1 – specific ADS is the actual application that will be used by the user. This is the part of the application that allows the decision maker to make decisions in a particular problem area. The user can act upon that particular problem.
Level 2 – ADS generator contains hardware and software environment that allows people to easily develop specific ADS applications. This level makes use of case tools or systems. Level 3 – ADS tools contains lower level hardware and software, ADS generators including special languages, function libraries and linking modules. There are five roles involved in a typical ADS development cycle: the end user, an intermediary, ADS developer, technical supporter, systems expert. The developmental approach for a ADS system should be iterative.
This will allow for the application to be hanged and redesigned at various intervals. Model based management system is a set of computer programs embedded within a ADS generator that allows users to create, edit, update, and / or delete a model. Today, most of the ADS in use are developed to generate and evaluate decision alternatives via “what-if’ analysis and “goal-seeking” analysis in the design and choice stages. Accounting models facilitate planning by calculating the consequences of planned actions on estimate of income statements, balance sheets and other financial statements.
Representational models estimate the future consequences of actions on the axis of partially non definitional models, including all simulation models. Optimization models generate the optimal solutions (MARIN, 2011). Suggestion models leads to a specific suggested decision for a fairly structured task. Such systems perform mechanical calculations and leave little role for managerial judgment. The support given by a decision support system can be separated into three different, interrelated categories: group support, knowledge based support and organizational support.
Single user ADS and group ADS can be distinguished in many different ways in terms of purpose and components (hardware, software, people, procedures). First, group ADS and single user ADS have distinguishable purposes. A ADS group is defined as an interactive computer based system which facilitates solution of unstructured problems by a set of decision makers working together as a group. To support a set of decision makers working together as a group, ADS have a special technological requirements of hardware, software, people and procedures.
Each member of the group have a personal computer linked to the personal computer of the other group members and to one or more large public viewing screens, so that each member can see the inputs of other embers or let other members to see their work. Computer based information systems to support group activities have been conducted under the titles of group decision support systems (EGGS), computer-supported cooperative work (CSCW), group support systems GAS), collaboration support systems (CSS), and electronic meeting systems (EMUS).
Executive Information System Definition and Functions An executive information system (IIS) provides key information, gathered from both internal and external sources, to senior executives and managers. It accomplishes the multiple purposes of supporting decision making, immunization information, and providing awareness (Ion, Bucharest, & Romania, 2007). Kiss typically present summarized information, but allow the user to drill down to more detailed information.
Kiss should also present information in a user friendly format to facilitate easy analysis, and employ graphical user interfaces (Guise), which can be tailored to individual preferences. Often, Kiss are integrated with spreadsheet, word processing, and other decision-support software. A key ability of an IIS is easily communicating the comments and conclusions of executives to others. As a result, Kiss are typically purported by an electronic mail (e-mail) system. Installing an IIS often forces a business to restructure the information it uses to make decisions and the process by which it collects information.
For example, if an IIS is designed for the company’s chief executive officer (CEO), then all those reporting to the CEO will want the same information; likewise, if it is designed for vice presidents, then those reporting to them will want that same information. The IIS facilitates a shared view of the company that is focused on the issues of interest and importance to its executives, in contrast to traditional accounting systems hat are focused on day-to-day financial transactions. Kiss have been known by many names over the years.
Initially, decision support systems (Adds) were developed with the same aim of current Kiss (Sad, Main, & Aladdin, 2007). In addition, Kiss are known in some circles as executive-support systems (Sees). No matter what they are called, the number of IIS installations continues to grow. According to industry estimates, revenues from the sales of commercial IIS software have grown at an average rate of 30 percent per year for the past five years. Projections indicate future growth at or above that rate.
Kiss normally access information from virtually all of a company’s internal databases, including production, financial, customer, and vendor information. In addition, Sis’s can access external databases that provide executives with industry information and business news services. Kiss with access to external news databases must effectively filter huge amounts of data to be effective. News services such as DOD Jones News Retrieval allow subscribers to filter the material they receive based on individual, predefined selections. Texaco Corp.. S Exploration Producing Technology department hires outside consultants to sift through raw petroleum industry data before loading it into company information systems. Other filtering alternatives include having either the public relations department or a separate in-house department review, filter, and scan interesting items into the IIS. Justifications Advantages and disadvantages of three systems Usage in the bank Target users Advantages Disadvantages Management information system 1 . Accrual adjustments. 2. Reconciling and correcting entries used to reconcile the financial systems. 3.
Transaction process system. 4. Operational control 5. Management control 1 Cacao ants 2. Middle level managers. 1 . Transparency and efficiency of information provided for bank’s clients 2. Able to provide quality information for investors. 3. Meet the requirements of the client to financial information and satisfy these requirements. 1. May increase risk in a number of areas such as credit quality, liquidity, market/pricing, interest rate, or foreign currency. Decision Support system 1 . Sales forecasts 2. Real estate investment 1. Decision maker, advisors, domain experts, system Experts, data collectors. . Knowledge workers. 1 . Faster queries 2. Faster and better grounded decisions. 3. Easier measurement – possibility of using statistical methods 4. Increase organizational control. 1. Problem of infrastructure. 2. Problem of applicability by respondents. 3. Monetary cost Executive information system 1 . Cost accounting information. 1 . Top level executives. 2. Chief executive officer 1. Provide a friendly graphical interface. 2. Improve the quality of management by extracting, transforming, processing. 3. Improves tracking information. 4.
Offers efficiency to decision makers 1. High complexity 2. High implementation costs 3. System may become slow, large, and hard to manage MIS should get highest budget allocation Based on the information gathered management information system should get sights budget allocation improve the banking service and support decision- making process. The Creel banking activities such as investment and daily operations are considered as one of the fast growing industry in the financial and banking sector. MIS are transparency and efficiency of information provided for bank’s clients.
Investors need for efficient information before they decide to invest in Creel bank and they need quality in information, which can only be provided using Management Information Systems. The measurement of success of any bank is by providing banking services with high quality based n the capacity of the bank to meet the requirements of the client to financial information and satisfy these requirements better than other competitors. The huge developments in information systems are strategic weapons in dealing with current conditions that are characterized by rapid changes and strong competition among financial institutions.
Competition in the financial sector matters for a number of reasons. The degree of competition in the financial sector emphasizes on the efficiency of production of financial services, the quality of financial products and the degree of innovation. MIS in the present Monnet of high availability of voluminous data on electronic media at diverse locations and on diverse platforms has become more pertinent to banks’ decision-making process. In Creel banking management information system provides information that organizations need to manage themselves efficiently and effectively.
Management information systems are distinct from other information systems, in that they are used to analyze and facilitate strategic and operational activities. Management information system produce fixed, regularly scheduled reports based on data extracted and summarized from the rim’s underlying transaction processing systems to middle and operational level managers to identify and inform structured and semi structured decision problems. Management Information Systems MIS is very significant and fundamental for efficient banking service.
In Creel bank, there is a great role of Management Information system in providing accurate information related to customer requirement and data gathering and processing. MIS helps in many ways the Creel Bank for the better result and customer satisfaction. Management Information Systems that provide reliable information for bank’s clients has such increased in recent years. Investors nowadays are much interested to use the new technologies to support their investment decisions. Providing high quality of information is important to rationalize the decisions of investors.
MIS can help the management in Creel bank to make good and strategic decisions, but this target can’t be achieved without implementing an efficient Management Information System. The information technology is vital to the success of any banking institution. Management information system ensure high level of service quality and effective information sharing between all the departments n the bank and provide accurate information to the senior management inside the banks that help to make precise strategic decisions.
MIS will improve their experience and ability to deal with these functions and good practicing on using these functions. In addition to that the perception and willingness of managers in the bank is very important to ensure swift implementation of MIS. Financial accounting systems and subsystems are just one type of institutional MIS. Financial accounting systems are an important functional element or part of the total MIS structure. However, they are more narrowly focused on the internal balancing of an institution’s books to the general ledger and other financial accounting subsystems.