Management Information System

Management Information System


Toyota the world's second in overall production in the automotive industry and Lexus is Toyota's high end luxury car in the world. Owing a Toyota Lexus is very costlier and it is dream car of many. So to make high customer service and satisfaction, they contacted their customer, picked up their car and offered a free service, until that they offered a standby car to them. They washed the car, filled up the fuel and returned to the customer with full gesture. The company used their Customer Information system to access the customer details. Later the company identified that there was a troublesome tyres installed on their customer's car. So they planned to mail the cheques of $400 to their customers. When doing so they encountered a data administration problem, people other than their customer received the cheque and the worst case is their auditor received the cheque who does not own a Lexus car. Because of this data quality problem, it caused a serious financial problem in their company. Senior management called for single centralised customer database to resolve the data quality problems. The management should take necessary steps to resolve this problem otherwise the company will faces a serious problems and decreases the overall productivity.


Traditionally, the corporate business systems are used for specific business functions and now it has moved to all service such as logistics, human resources, customer relationship management and supply chain management of their industry.

Nowadays, the customer expectation plays vital role in the industry for their growing needs. Such as

Value added customer service and quality of service should be in multiple delivery channels.
Reduction of time to market the new products and services of their company.
Control in operational costs and operational inefficiencies.
Adaptation of corporate structures and work method.

Customer Relationship Management:

In recent years many organization realized the need for customer relationship management due to increased global competition. Customer relationship management is a recognized widely used technique for managing the interactions between the company and the customer. CRM is also known as relationship marketing or customer management, is an information technology industry methodologies, strategies, software and other web based support. CRM captures, analyzes and distributes relevant data from customer and prospect interactions to everyone in an organization.


There are several advantages in customer relationship management. They are

Increase the sales and marketing processes.
Improves customer services, loyalty and retention.
Increases call center efficiency.
Reduces the marginal costs and the expenses.
Increases overall profitability.

The senior or the top management of the company should needs to know what happenings in their company. However the management team should not be overburdened with too much operational and transactional data. The data should be review and processed into information i.e. analysis, summary, and exception reporting. The information systems should enable them to implement the system, control and monitor plans, strategies, tactics, new business models or new business ventures. The reporting should be made periodically about their customer information system. They should be alerted immediately when significant events or problems occur.

Management team of the company should get information for:
· Activity forecasting of the company
· Monitoring Performance of the system
· Customer satisfaction
· Setting revenue goals
· Market penetration
· Cost

Upon the information collected by management team should be used in decision making:

Setting earnings targets

* Making business continuity plans

* Compensation plans

* Performance measures

CRM implementation issues:

CRM is a business process change and the introduction of information technology to the traditional business process and effective leadership is important. Because the external environment of an organization are monitor by the business leaders. The authorization, control of expenditures, the setting and monitoring of the performance, the empowerment and motivation are key roles of the business leaders. As it is a difficult process to manage these key roles.


Areas include:

Regulatory requirements

* Competitive trends in global markets

* Financing/liquidity needs

* Financial exposures

* Benchmarking information i.e. comparing the company's financial performance and ratios with industry competitors

* Industry trends

* Key Performance Indicators

Market data

New product sales and its demand.
Customer profiles and their purchase histories
Marketing research data
Advertising data



* In particular level the schedule of manual entries, backup for each entry and senior executive should authorize the entry to increase the data quality.

* Adjustments to data in a period a time.

* Analysis of budget if a variation occurs.

* Analysis of deviations from accounting standards.

* Analysis of major revenue items in regular interval of time.

Financial statements

The revenue should be analysed in linearity by division or segments compared in regular interval of time.


The major assets should be analysed as current assets impairment and changes should be done in regular interval of time.


The changes in reserve should be regularly analysed such as bad debt, accounts payables.
In a regular period of time the amount reserve and changes should be noticed.


* The findings, recommendations, conclusions, any reservations or qualifications.

Areas of non existence or weaknesses in internal controls.
The exceptions in the area are observed where internal controls exist.
Improvements in the operations between the last audit and the current audit.



The receivables aging, along with comparison of current data in a regular interval of periods should analysed.
The returns by customer including comparisons should be scheduled with prior to notice.
The significant sales by new customer should be analysed regularly.
The collection problems should be scheduled regularly, with explanation of reasons for non payment.
In a significant transactions the schedule of deviation from standard or discount payment terms.

Review of other information

* Concentration on customers.

* Concentration on suppliers.

* For prevention of fraud and misappropriation, the system should be reviewed periodically.

* Estimate the review of analyst.

* Organisational structure and staffing should be reviewed periodically to ensure they are adequate with regard to business.

Exception reporting

* Reporting of issues: Technical problems like machinery breakdown, equipment failure, telecommunications failure, hardware/software problems, space related issues, staff attrition etc are to be informed to the management.

* Reporting of transaction related issues: Exceptional transaction related issues, like failure to deliver on time, unresolved customer complaints, loss of goods etc are to be reported.

* Reporting of events requiring management intervention: The management require intervention procedure for reporting events.


The computer based reporting systems called as Executive Information System (EIS) can be used for obtaining financial system reports. An EIS is available in graphical mode which helps the executives to analyze, compare and highlight trends in important variables so that we can easily monitor the performance and identify the problems and opportunities.

Provided below are the features of the two widely used software for the management systems.

* Hyperion

* Cognos



* Interactive Reporting
* Compliance Dashboard
* Analysis

Interactive Reporting features

Hyperion has an interactive graphical dashboard personalised by the users. Dashboards provide an organized view of operations makes easier to spot trends so that opportunities can be utilised or corrective action taken.
Dashboards offer at-a-glance summaries of key performance indicators (KPIs) so managers can quickly spot trends and anomalies, select different views of data, and drill into deeper detail for the most relevant insight into the health of the business.
Interactive Reporting synthesizes multiple analyst reports, presentations, and spreadsheets to deliver visibility into organizational performance.
Access a wide variety of business data sources. Data can be accessed and analysed from transactional systems, data warehouses, and data marts. Managers and analysts can access both data and metadata from multiple sources on one report, gaining side-by-side analysis.
Users can provide drill paths into additional reports and other dashboards for deeper analysis.
Provides multiple levels of viewing and analysis in a single report. Rather than being forced to design multiple reports for people with different access privileges, Interactive Reporting lets you deliver a single report that different users can interact with based on their varying privileges.
Reports support both pre-defined and “drill anywhere” analysis, allowing users to instantly expand their ad hoc analyses by adding items to their datasets.

User friendly:

Business users can create a dashboard with easy, wizard based dashboard development
Requires minimal training and support and encourages rapid user adoption.

* Managers who best understand their business needs can work with business analysts to quickly create dashboards without relying on IT.

Provides Offline access. This enables mobile employees, customers, and partners to view business information, even when they're offline.
Interactive Reporting lets non-technical users quickly create their analyses with its drag-and-drop functionality. Manager's access common data models created by power users, analysts, or IT—and then select information, specify sorts, define filters, and even create computed items. They also can access report visualization options, such as charts, gauges, and pivots for “cross-tab” reporting. Conditional formatting further enables a management-by-exception paradigm.

Compliance Dashboard features

* It helps in assessment of potential risk exposures.

* It helps in identifying the remediation needed to correct gaps in internal controls and provides confidence to senior management that financial statements and disclosures are accurate and in full compliance.

* It includes a data model with pre-built connectors to data sources, a set of compliance metrics, as well as a series of easy-to-use dashboard screens, gauges, meters and stoplights designed to rapidly convey the critical information financial managers require.

* It provides important financial insights like the status of the financial closing process.

* If potential risk exposures are identified, one can drill into time periods, sub-accounts, and different entities in the organizational hierarchy to quickly discover the potential source of the risks.
Enterprise Analytics


• Gain rich insight into your business

• Move beyond silos of business intelligence and disconnected spreadsheets

• Understand customer segments and behaviour patterns

• Rapidly discover trends and highlights in large datasets with an innovative visual interface

• Gain deep analytic power and responsiveness for thousands of simultaneous users

• Reduce costs with easy, fast development, deployment, and maintenance

• Rely on robust security

Gain rich insight into your business: Essbase Analytics supports more than 250 sophisticated algorithms out of the box, with extensible analytics and procedural calculations built on centralized logic and business rules.

• Financial functions such as Net Present Value, Rate of Return, and Compound Growth are important for translating strategic goals into operational plans, evaluating competing requests for capital expenditures, and tracking the effectiveness of capital investment decisions. Expense reporting is as easy as tagging members that require expense computation, making all subsequent calculations involving those members “expense aware.”

• Time series algorithms track moving minimum, maximum, and average inventory levels.

• Statistics and data mining are important to predict customer purchasing behavior based on a variety of pricing and promotional strategies.

Microsoft Office Integration

· Hyperion System 9 BI+provides advanced Microsoft Office integration so business users can leverage Microsoft Excel, Word, Outlook, and

· PowerPoint as interactive access points to centralized analytic data. Secure, multi-user write back allows users to interactively create forecasts, budgets, and plans to

· allocate resources.

Understand customer segments and behavior patterns.

* Clustering, attributes, and set analysis. Essbase Analytics includes features such as clustering, attributes, and set analysis to make it easy to create value segments;

* Company can assess customer affinity to a particular message, product, or service; and determine which communication channel to use for cross-sell and up-sell campaigns into different segments.

Rapidly discover trends and highlights in large datasets with an innovative visual interface. Essbase Analytics and Enterprise Analytics are easy to use and allow even novice database users to rapidly discover trends and highlights in large datasets.

Gain deep analytic power and responsiveness for thousands of simultaneous users. Essbase Analytics and Enterprise Analytics deliver sub-second response times for sophisticated analysis of terabytes of data for thousands of simultaneous users, and giving business user's speed-of-thought responsiveness to manage performance in real time.

Reduce costs with easy, fast development, deployment, and maintenance. Manageability features of Essbase Analytics and Enterprise Analytics make it easy to quickly address business needs at a lower cost of development, deployment, and maintenance.

Rely on robust security. As a module of the Hyperion System 9 BI+ platforms, Essbase Analytics integrates with the platform's common authentication system thus reducing

The administrative and maintenance costs of users integrating with LDAP, MSAD, and NTLM authentication systems.

* Control of user access. User access can be controlled down to the individual cell level through Essbase Analytics functionality, which safeguards sensitive information.

* Group- and role-based security models. Flexible security models allow your users to access the information they need to drive performance while supporting the access control required.

Time Series Analysis

* Built in time series analysis lets users quickly and easily performance from one period to the next using automatic calculations for absolute and percentage

* Support for large data volumes lets users explore large flat business dimensions such as products users can control the data they view, search for values with a simple right mouse click

* Details & attributes: Provides users with related information about the data they want to analyze, including attributes defined in the OLAP data source.

* Top/Bottom “N” analyses: Helps users isolate best and worst performers in any dimension , based on any measure

* Drag –and –Drop context: Lets users focus on most relevant information. Users can set the context of a report based on sophisticated category combinations.


* Present key performance data in automotive style gauges to see performance data at a glance.

* Integrate information from different sources into a single chart that users can print and share

* Interactive maps provide high level information and let users drill through to more detail

Please be aware that the free essay that you were just reading was not written by us. This essay, and all of the others available to view on the website, were provided to us by students in exchange for services that we offer. This relationship helps our students to get an even better deal while also contributing to the biggest free essay resource in the UK!