Encyclopedia of Computer Science and Technology

management information system 291system depending on a single mainframe also has a singlepoint of vulnerability, while a network with multiple mirroredfile servers can work around the failure of an individualserver.Further ReadingButler, Janet G. Mainframe to Client-Server Migration: StrategicPlanning Issues and Techniques. Charleston, S.C.: ComputerTechnology Research Corporation, 1996.Ebbers, Mike, Wayne O’Brien, and Bill Ogden. Introduction to theNew Mainframe: z/OS Basics. Raleigh, N.C.: IBM Publications,2007. Available online. URL: ftp://www.redbooks.ibm.com/redbooks/SG246366/zosbasics_textbook.pdf. AccessedAugust 14, 2007.“Mainframe Programming: Some Useful Resources for Practitionersof the Craft.” Available online. URL: http://www.oberoi-net.com/mainfrme.html. Accessed August 14, 2007.Prasad, N. S. IBM Mainframes: Architecture and Design. 2nd ed.New York: McGraw-Hill, 1994.Pugh, Emerson W., Lyle R. Johnson, and John H. Palmer. IBM’s 360and Early 370 Systems. Cambridge, Mass.: MIT Press, 1991.management information systemThe first large-scale use of computers in business in the late1950s and 1960s focused on fundamental data processing.Companies saw computers primarily as a way to automatesuch functions as payroll, inventory, orders, and accountspayable, hoping to keep up with the growing volume of datain the expanding economy while saving labor costs associatedwith manual methods. The separate data files and programsused for basic business functions were generally notwell integrated and could not be easily used to obtain crucialinformation about the performance of the business.By the 1970s, the growing capabilities of computersencouraged executives to look for ways that their informationsystems could be used to competitive advantage.Clearly, one possibility was that reporting and analysissoftware could be used to help them make faster and betterdecisions, such as about what products or markets toemphasize. To achieve this, however, the “data processingdepartment” had to be transformed into a “managementinformation system” (MIS) that could allow analysisof business operations at a variety of levels.The MIS PyramidIf one thinks of the information infrastructure of an enterpriseas being shaped like a pyramid, the bottom of thepyramid consists of the transactions themselves, whereproducts and services are delivered, and the supportingpoint of sale, inventory, and distribution systems that keeptrack of the flow of product.The next layer up begins the process of integration andoperational control. For example, previously separate salesand inventory system (perhaps updated through a dailybatch process) now become part of an integrated systemwhere a sale is immediately reflected in reduced inventory,and the inventory system is in turn interfaced with theorder system so more of a product is ordered when it goesout of stock.The activities involved in managing an enterprise’s informationinfrastructure can be drawn as a pyramid. The raw material oftransactions at the bottom are stored in databases. Moving up thepyramid, these data sources are integrated and refined to providebetter information about business operations as well as material foroperational analysis and strategic planning.The next layer can be called the operational analysislayer. Here such functions as sales, inventory, and orderingaren’t simply connected; they are part of the same systemof databases. This means that both simple and complexqueries and analysis can be run against a database containingevery type of transaction that the business engages in.In addition to routine reports such as sales by region orproduct line, market researchers or strategic planners canreceive the data they need to answer questions such as:• What products are staying on the shelf the longest?• What is the ratio between profitability and shelf spacefor particular items?• What is the relationship between price reductions,sales, and profits for a certain category of items?The goal of this layer is to help managers identify thevariables that affect the performance of their store or otherbusiness division and to determine how to optimize thatperformance (see also digital dashboard).The very top level can be called the strategic planninglayer. Here top-level executives are interested in the overalldirection of the business: determining which divisions of acompany should receive the greatest long-term investment,and which perhaps should be phased out. For example:• Which kind of sales are growing the fastest: in-store,mail-order catalog, or Internet on-line store?• How is our market share trending compared to variousclasses of competitors?