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Bob Travica
MIS 2000
Class 10
Operations and
Information Systems
Updated May 2015
Bob Travica
Outline
• 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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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 TPS/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.
Operational
processes
Supply
Marketing
Track &
carry


Production
Sales
Human Resources



Delivery
Customer Support
Accounting
MIS
MIS
MIS
TPS
TPS
TPS
Reflect past
business
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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,
basic summaries of sales and purchases, etc.
Queries on
Queries
daily, weekly
business
TPS
Database
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Management Information Systems (MIS)
Querie
Queries on
sdaily,
weekly
business
TPS
Database
Complex
Query &
Report
Module
Computer
Screen
Reports
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 quarter or
quarter, with breakdowns and variance figures, and graphics.
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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
Professional
CRMS
Store
campaign
Enter campaign
Enter campaign
in electronic bulletin
Sales Clerk
Mobtel
Vendor
Customer (any)
Place order
Read offers
Find customer
Display
customer record
Update
customer
history
Record order
in system X
• CRMS (Customer Relationship Management System) is Telco’s MIS/TPS.
It is supposed to serve marketing campaigns.
• As-is process is sub-optimal.
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Data Diagram for Telco’s As-Is Marketing Process
Campaign
creates
Offer
given to
makes
Call
Customer
places
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
Professional
CRMS
Store
campaign
Enter campaign
Enter campaign
in electronic bulletin
Sales Clerk
Mobtel
Vendor
Customer (any)
Place order
Read offers
Find customer
Display
customer record
Update
customer
history
Record order
in system X
Process design Issues
Finding
Composition
Is this a marketing or sales process? Mixed
domains, Two start points.
Coordination
Unclear process deliverable as the
assessment basis. CRMS is a black hole.
Complexity
Three IS resources involved (CRMS, ebulletin, customer order system).
CRMS as part of process design
Negligible footprint.
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Marketing Process at Telco – Evaluation
Of Performance
Process
performance
Losses
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 used just as storage of marketing campaigns; no tracking/
reporting of market response.
- Supporting process confusion – campaigning mixed with customer
ordering (see next slides)
Customer Value
- Marketing Professional: Process doesn’t help inform on results of
market campaigns.
- Consumer: Poorly served.
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Marketing Process at Telco – To-Be Process
The term “To-be” signifies a process as it should be (improved).
Marketing
Professional
CRMS
Sales Clerk
Store
campaign
Retreive
campaign
Enter campaign
Display customer
address & offers
Enter campaign
in electronic bulletin
Call
customer
Mobtel
Vendor
Customer (any)
Respond to
offer
Place order
Read offers
Display
Customer Record
Update
customer
history
Find customer
Record order
- Components in red belong to As-is process (deleted).
-
Process optimized by focusing on marketing campaign steps and
eliminating customer ordering (red part), plus promoting CRMS.
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Market Campaign Process Optimization
– Data Diagram
Campaign
promotes
Offer
contains
Customer
given to
OfferDetail
OfferID
CustomerID
Date
Accepted (yes/no)
• OrderDetail entity/table records what is offered to whom
and the offer outcome.
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Organizational Culture Impact
Department boundaries between Sales and Marketing
departments at Telco are rigid (“there are silos”).
Marketing process can’t involve sales people.
“Silos” have different cultures and don’t understand each other.
Organizational processes and ultimately performance suffer.
Wasted investments in CRMS.
Sales Dept.:
Bureaucracy
culture
Marketing Dept.:
Person culture
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Summary
• 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.
• Example of MIS output is a summary of sales in last quarter, with
a breakdown of totals per product/store, & variance figures.
» More…
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• MIS reports transform TPS outputs, contain formatting
features, graphs, and can be regular or 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 fuller use of CRMS.
• Telco’s silo culture is responsible for sub-optimal process
design and performance.
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