Overview of the “Anthony Model” Theory

In 1965, Anthony and other business management researchers, based on extensive practical observations and validation of manufacturing enterprises in Europe and the United States over a 15-year period, established a Theory regarding business processes and information system architecture in manufacturing management—the renowned “Anthony Model.” This Theory posits that business management activities, or the enterprise management system, can be divided into three levels: strategic planning, tactical decision-making, and operational decision-making.

(1) Strategic Planning Layer (SPL): This is the top management level, referring to planning, programming, and budgeting processes such as setting and revising organizational objectives and establishing resource policies to achieve those objectives.

(2) Tactical Decision Layer (TDL): Also known as the management control layer, this is the middle management level, involving the specific processes designed to achieve organizational objectives and enable the organization to effectively acquire and utilize resources.

(3) Business Processing Layer (BTL): Also known as the operational control layer, this is the lower management level and encompasses the entire process of ensuring that a specific business operation is executed effectively and efficiently.

In the “Anthony Model,” a manufacturing enterprise management system is viewed for the first time as a holistic entity of business operations with business resources as its fundamental elements. It systematically describes the transmission and reception processes of internal and external information flows, cash flows, and material flows.

Through extensive observation and analysis of manufacturing enterprises primarily engaged in assembly and processing, Anthony and others found that their management system business processes involve the two-way flow of logistics, capital, and information, as well as the fundamental principles governing these flows. First, the logistics process generally encompasses the entire journey from component procurement to product sales, flowing from upstream to downstream—from suppliers to the enterprise, then to wholesalers, retailers, and customers. That is, the enterprise must undergo business processes such as component procurement, allocation, production and processing, shipping, and sales. At the same time, before the enterprise carries out the aforementioned allocation or component procurement processes, suppliers such as component manufacturers and raw material processors are also conducting sales activities; Before a company engages in sales activities, wholesalers and retailers are also conducting procurement activities. The flow of capital, however, moves in the opposite direction of logistics, flowing from downstream to upstream—that is, from customers to retailers and wholesalers, then to the company (or directly to the company), and finally to suppliers. Furthermore, compared to logistics and capital flow, the flow of information is far more complex. Corporate information primarily includes order information, shipping information, and financial information. While the flow of information complements logistics and the flow of funds, it also plays a role in managing the enterprise’s overall operations.

Anthony’s Basic Definition of a Management Information System

Anthony’s concept of a Management Information System (MIS) is a system designed to identify and provide effective information for the three levels—strategic planning, tactical decision-making, and operational decision-making—of the enterprise management system he proposed. The system structure is shown in Figure 1. Anthony was the first to outline the basic information flow of a Management Information System (MIS): MIS acquires information from the environment through interactions with customers and business partners, stores this information in a database, and then transmits it to the three levels of the management system as defined by Anthony. By combining transaction processing with decision-making systems to form a Management Information System, the “Anthony Model” Theory views MIS as a system based on business transactions that provides information in a structured format.

Anthony believed that “the Management Information System (MIS) is a corporate management planning and control system composed of the ‘information’ resources involved in business operations. In supporting corporate management activities and facilitating decision-making at all organizational levels, the management of
‘information’ resources plays a crucial role. At the same time, computer-based information systems play a role in improving and optimizing the Q-C-D-S (Quality, Cost, Delivery, Service) elements of business operations, as well as in the implementation of various business activities." In other words, the "Management Information System" (MIS) encompasses two meanings:

　　(1) MIS is a system that supports an enterprise’s management and operational activities;

　　(2) MIS is a system that supports or constitutes business activities.

　　Therefore, Anthony defines a Management Information System as: “a system capable of flexibly utilizing information technology to systematically transmit, store, and exchange internal and external information, thereby forming or supporting an enterprise’s management activities or business operations.”

The Role of the Anthony Model

The role of the Anthony Model lies in its definition of management control and its connection to government management systems, as well as its emphasis on monetary data within management control, particularly focusing on the evaluative function of budgets. It is evident that budget data, like other information, is used in strategic planning, management control, and operational control; however, for a wide range of policy-making and more specialized management control functions, the budget serves merely as an evaluative mechanism.

Application and Development of Management Information System Theory Based on the “Anthony Model”

　　The “Anthony Model” can be considered the pioneer of modern enterprise management information systems, It is evident that the "Anthony Model" already embodies the embryonic form of new concepts in modern enterprise management systems. The fundamental distinction between this model and earlier definitions of management information systems lies in the fact that it is a management system that incorporates and accounts for the interrelationships and mutual influences of internal and external environmental factors. It accurately reflects the actual flow of logistics, capital, and information within the enterprise’s internal and external supply chains, thereby capturing the essence of enterprise management.

　　With the progress of the times and the development of information technology and management science, the functions of enterprise management information systems have been continuously expanded and refined based on the “Anthony Model.” Today, they have evolved into fifth-generation modern management information systems based on computer network technology and e-commerce technology. However, no matter how much they change, they remain true to their roots; regardless of how they develop, their theoretical core still rests on the theoretical foundation of the “Anthony Model.”