Question

The array of strategic MIS application systems in an organization's portfolio, tend to see tactical or operational systems that provide information or data that is then used for strategic purposes. One problem with this approach is that the data in an operational system can overwhelm management who are looking for opportunities, or exceptions within the cacophony. Many organizations try to solve this problem by implementing several models for decision and executive support systems that can aggregate information for decision-making at management positions throughout an organization hierarchy. Many of these systems allow for the viewing of aggregate total information across the enterprise in ways that then allow managers to drill-down or slice-and-dice the data to see the details that they might be interested in.

Question

Describe some examples where systems that you have heard about or been exposed to have demonstrated some of this exception-orientation; or, identify some systems that you can think of that would benefit from being more exception-oriented. What differences would the typical user notice in such systems, and what impact do you think such capability would have on decision-making and the possible outcomes of those decisions?

Answer 1

Hi,

I would like to explain it, though it would end in being more verbose. Please be patient.

For an MIS system, even in ideal cases where all requirements are met by perfect design, the system starts to outdate from the very day of its completion, due to the changes in its use environment, the organization and the world around it are in constant change, eventually causing changes in the technical environment as well. When an information system is not able to handle all events of its domain, exceptions arise.

And what are some of characteristics of exceptions? The nature of exceptions is negative, even though they are sometimes claimed to have positive impacts. Exceptions are not a part of plans and require additional attention and work causing processing delays and additional costs.

There are three elements to exception based MIS systems.

1. Exceptionality: The difference between an exception and a normal event based on rules.

2. Amount of work: The amount of extra work caused by an exception when compared to a normal event.

3. Rule impact: The change an exception causes to an organization's rules. In addition, frequency is a noteworthy characteristic of exception from the viewpoint of system evaluation.

An analysis based on exceptions can be very valuable from the viewpoint of MIS. The analysis provides an MIS team with the 4 main benefits:

a. Structures prioritization of system development and maintenance activities

b. Shifts the focus from technology to processes

c. Increases communication with the user community

d. Provides feedback about the performance of information system operations

Let's talk about a example of MIS system with exceptions. (Unmatched incoming invoices.)

An invoice does not match if the data stored from the invoice does not match the data of the corresponding order or the data of the corresponding deliveries. For example, if the unit price in the order database does not match the unit price in the invoice database, the corresponding invoice is unmatched. Likewise, there can be more cases.

These unmatched invoices are exceptions for transaction verifiers. There are no rules that indicate which method might produce a solution. Thus, unmatched invoices can often be classified as established exceptions. Sometimes there seems to be no method for verifying an invoice at all, in which case an unmatched invoice is an otherwise exception for the transaction verifiers.

Upon more evaluations, great majority of the exceptions were caused internally as a result of staff carelessness or incompetence, the kind of exceptions had increased dramatically as a result of decentralizing the Department of Purchase. Many exceptions caused by the suppliers had not received the attention of the purchasers as the same supplier now received orders from dozens of part-time purchasers instead of a few full-time professionals.

Information systems can be evaluated by focusing in exceptions. The approach field tested in various industrial organizations over the past eight years and presented in this paper can be used to analyze systems functionality in the user’s level, to compare systems, and to provide factual information on the system and process flaws.

Focusing on exceptions can be very beneficial for information systems management in practice. Such analysis formalizes prioritization of system development and maintenance activities, shifts focus from technology to processes, increases communication with the user community, and provides valuable feedback about the performance of information system operations.