Information Systems Reengineering, Integration and Normalization - Information Systems Reengineering, Integration and Normalization - page 4

Generally, decisions are executed based on the information generated from the
corporate database and managerial expertise. Higher-level managers set goals to di-
rect the operational level activities, and produce plans that are part of the corporate
database. Business transactions reflect actual results of operational activities, and
the database is updated by these transactions to reflect the current state of the busi-
ness. Operational-level managers query the database to perform daily operations.
Tactical-level managers receive reports derived from the transaction data stored in
the database. They compare the actual results shown in these reports with planned
results. For managers at the strategic level, they need information for modeling and
forecasting. The corporate database supports all levels of information needs for op-
erations, decision-making, and the management process.
When the concept of MIS was first introduced, its supporters envisaged a single
system that would integrate all organizational functions. Others doubted the pos-
sibility of designing computer-based information systems to support management
planning and decision-making functions, particularly at the strategic level. Over the
years, the concept of a total system proved to be too complex to implement. MIS
now consists of a federation of subsystems, engineered as needed, but conforming to
the overall organizational plan, standards, and procedures. MIS continues to evolve.

1.1.6 Knowledge and Information Needs

The most fundamental element of MIS and the management process is knowledge/
information about the objectives of the organization, as well as its policies, resourc-
es, operations, and environment. In today's complex management environment, no
individual manager can have sufficient personal knowledge to serve the diverse
needs of the organization. Knowledge and information relating to the organization's
management and operations must be stored on the computer file system.
The gathering of data and dissemination of information is complex. Data/infor-
mation is voluminous, scattered, and often difficult and costly to obtain. The costs
and complexities of producing various types of management reports usually cause
data duplication and uncoordinated efforts within the organization. Often people
and departments prefer to duplicate information rather than share, which results in
considerable redundancy within the organization.
Departments fail to recognize the importance of interaction within the company.
For example, the production department is concerned with maximizing its produc-
tion capacity, assuming that goods produced can all be sold by the sales department.
To achieve good organizational congruence, it is essential that activities of these
departments be synchronized via an effective information system that enables the
various departments to act on the same database.
The most pressing concern of management is the cost-effective utilization of
human and economic resources. In large and complex organizations, this will be
difficult to perform without the aid of an MIS to provide information and decision
support to managers. For an MIS to be able to satisfy the information requirements
of the different levels of management, a DBMS is needed to control and make avail-