Mis01

Introduction to MIS

Chapter 1Introduction

Jerry Post

Technology Toolbox: Search EnginesTechnology Toolbox: SearchingCases: Fast Food

Outline How can MIS help you in your job? What is MIS? Why is information technology important? Why do all

business majors need to study it? What are e-commerce and e-business? Is e-business

increasing or decreasing? Do you know what a manager does? Do you know what a

successful manager will do in the future? How is business changing? What will managers need to

know in the future? Does technology alone improve a business? How do you break businesses into smaller pieces to

analyze them? Why are strategic decisions so difficult? How do you begin

searching for competitive advantage?

What is MIS?

Information◦Data that has been put into a meaningful

and useful context. Usually to help make a decision.

Management Information System◦A combination of computers and people

that is used to provide information to aid in making decisions and managing a firm.

Information Technology (IT)o processing, and distribution of data using

computer hardware and software, telecommunications, and digital electronics.

MIS Components

Backup dataRestart jobVirus scan

HardwareSoftware

People ProceduresData

Goal of This Course

How can MIS help you do your job?

Understand the technology.Analyze business problems.An introduction to systems analysis.Identify types of problems that MIS

can help solve through cases.Ability to classify problems.Know when to call for help.

Why is MIS Important?

MIS affects all areas of business◦Manufacturing◦Accounting & Finance◦Human resources◦Marketing◦Top management

Performance evaluations—expectations

Chapters/Topics

1. Introduction2. Technology

Foundations3. Networks4. Databases5. Security6. Transactions and

ERP7. eCommerce

8. Teamwork9. Decisions10. Strategy11. Entrepreneurship12. Systems13. MIS Organization14. Society

Productivity Growth: Output per Worker

http://data.bls.gov:8080/PDQ/outside.jsp?survey=pr

1. Managers need to use technology to increase productivity to be competitive.

2. With a 2.9% growth rate, in a decade, productivity increases 34%. Companies can produce the same output with half the workers. Will you be one of the workers replaced?

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What are e-Commerce and e-Business?Business-to-Consumer (B2C)

◦Selling retail products to consumersBusiness-to-Business (B2B)

◦Selling at the wholesale level to other businesses

E-Business◦Using Internet technologies to conduct

any level of business◦E-Commerce◦ Intranets◦Most areas of MIS

Retail E-Commerce Statistics

In 2010 EC was about 5 percent of total.Remove autos and auto parts and EC is about 6 percent.Notice the seasonal peak in the fourth quarter.Notice the EC is growing faster than total retail sales.

http://www.census.gov/retail/index.html#ecommerce

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EcommerceR

eta

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illt

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Technology Excesses?Typical Price Declines

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pri

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• You can buy a new model item when it is released or wait for the price to drop.

• You can keep buying new releases or continue to use an “old” model.

• Answers depend on your needs, the features offered, and the reliability of the old items.

• Plus the bling factor.

What do Managers do?

Traditional◦ Organizing◦ Planning◦ Control

Mintzberg (Henry Mintzberg – Canadian Mgmt Writer)◦ Interpersonal◦ Informational◦ Decisional

Luthans◦ Traditional 32%◦ Formal Communication 29%◦ Human Resource Mgmt 20%◦ Networking 19%

Managers and professionals spend considerable time in meetings. Providingsupport for teamwork and group decisions is an important issues in MIS.

Meetings

12 3

Making Decisions

Methodology v Ad Hoc DecisionsDecision Process

◦Collect Data◦Identify Problems & Opportunities◦Make Choices

Traditional Management

CEO

VPFinance

VPMarketing

VPAccounting

VPHRM

VPMIS

Layers of middle managers

Customers

Commands

Analyze data

Condensed reports

Collectdata

DecentralizationManagement Team

CEO

FinanceTeam

MarketingTeam

AccountingTeam

HRMTeam

SalesTeam

Franchise

Strategy

Methodology/Rules

Customers

CorporateDatabase

&Network

VPFin

VPMrkt

VPAcct

VPHRM

VPMIS

Business Trends

Changing business environment◦Specialization◦Management by Methodology and

Franchises◦Mergers◦Decentralization and Small Business◦Temporary Workers◦Internationalization◦Service-Oriented Business◦Re-engineering

Need for faster responses and flexibility

Business Trends & Implications Specialization

◦ Increased demand for technical skills◦ Specialized MIS tools◦ Increased communication◦ Emphasis on Teamwork

Methodology & Franchises◦ Reduction of middle management◦ Increased data sharing◦ Increased analysis by top management◦ Computer support for rules◦ Re-engineering

Mergers◦ Larger companies◦ Need for control and information◦ Economies of scale

Decentralization & Small Business◦ Communication needs◦ Lower cost of management tasks◦ Low maintenance technology

Business Trend SummaryBusiness Trend Implications for Technology

Specialization 1.Increased demand for technical skills2.Specialized MIS tools3.Increased communication

Methodology & Franchises 1.Reduction of middle management2.Increased data sharing3.Increased analysis by top management4.Computer support for rules5.Re-engineering

Mergers 1.Four or five big firms dominate most industries2.Need for communication3.Strategic ties to customers and suppliers

Decentralization & Small Business

1.Communication needs2.Lower cost of management tasks3.Low maintenance technology

Temporary Workers 1.Managing through rules2.Finding and evaluating workers3.Coordination and control4.Personal advancement through technology5.Security

Internationalization 1.Communication2.Product design3.System development and programming4.Sales and marketing

Service Orientation 1.Management jobs are information jobs2.Customer service requires better information3.Speed

Business Trends & Implications Temporary Workers

◦ Managing through rules◦ Finding and evaluating workers◦ Coordination and control◦ Personal advancement through technology◦ Security

Internationalization◦ Communication◦ Product design◦ System development and programming◦ Sales and marketing

Service Orientation◦ Management jobs are information jobs◦ Customer service requires better information◦ Speed

Internationalization

http://www.bea.gov/national/nipaweb/Index.asp

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Exports/GDP

Year

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International Web Browsers

http://www.internetworldstats.com/stats7.htm

English; 27.3

Chinese; 22.6

Spanish; 7.8Japanese;

5

Por-tuguese;

4.2

German; 3.8

Arabic; 3.3French; 3

Russian; 3

Korean; 2

Other; 17.8

Web Users (Language)

Web Users (Counts)

http://www.internetworldstats.com/stats.htm

Asia; 825.1

Europe; 475.1

North Amer-ica; 266.2

Latin Amer-ica/ Carib-

bean; 204.7

Africa; 110.9

Middle East; 63.2Oceania/ Aus-

tralia; 21.3MillionUsers

Asia: 30 percent of populationNorth America: 75 percent

US Employment Patterns

http://www.bls.gov/webapps/legacy/cpsatab4.htm

Categories and definitions have changed over time.Management includes professional, sales, and administrative.The key point is that most jobs are information-processing jobs.But the numbers measure number of workers, not the value or sales.

1920 1930 1940 1950 1960 1970 1980 1990 2000 20100

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U.S. Employment Patterns

ServiceManagementManufacturingFarm

Million W

ork

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Changing Business EnvironmentUS History: Farmer Laborer Management

Year Farm Mfg Mgt Service

192029% 44% 22% 6%

194023 38 30 8

19609 36 43 12

19803 32 52 13

20001 16 66 17

20101 11 68 20

MIS Organization

Business Operations

TacticalManagement

Strategic

Mgt.

EIS

ESD

SSTr

ansa

ctio

n

Proc

ess

Con

trol

ERP

Operations, Tactics,Strategy

Sector Operations Tactics Strategy

Production • Machine settings• Worker schedules• Maintenance sch.

• Rearrange work area• Schedule new products• Change inventory method

• New factory• New products• New industry

Accounting • Categorize assets• Assign expenses• Produce reports

• Inventory valuation• Depreciation method• Finance short/long term

• New GL system• Debt vs. equity• International taxes

Marketing • Reward salespeople• Survey customers• Monitor promotions

• Determine pricing• Promotional campaigns• Select marketing media

• Monitor competitors• New products• New markets

Decision Levels

Decision Level

Description Example Type of Information

Strategic Competitive advantage, become a market leader. Long-term outlook.

New product that will change the industry.

External events, rivals, sales, costs quality, trends.

Tactical Improving operations without restructuring the company.

New tools to cut costs or improve efficiency.

Expenses, schedules, sales, models, forecasts.

Operations Day-to-day actions to keep the company functioning.

Scheduling employees, ordering supplies.

Transactions, accounting, human resource management, inventory.

Introduction to Strategy

Risk & RewardCreativityPorter’s External Agents

◦Customers◦Suppliers◦Competitors◦Government

Strategy/Porter

Rivalry AmongExisting Competitors

Bargaining Powerof Buyers

Bargaining Powerof Suppliers

Threat ofNew Entrants

Threat of SubstituteProducts or Services

Baxter/Strategy

Supply storeroom

Supply Closets

Hospital

Warehouse

American HospitalSupply

Supplier

Typical Supply Relationship

Supplier

Supplier

Baxter/Strategy

Supply Closets

Hospital

Warehouse

American HospitalSupply

Supplier

Baxter

Supplier

Supplier

AHS/Baxter Computer Link

Computer

MonitorUsage data

DeliverSupplies as

needed

Accurate usage dataFree space

An Internet Approach for Hospital Supply

Supply Closets

HospitalSupplier

Baxter

Supplier

Johnson

Supplier

Winning bidder delivers supplies

Internet

Daily AuctionBid1Bid2Bid3 <<purchase

Strategy/Organization

Strength◦ Source of strength◦ Value of strength◦ How can it be

developed?◦ What could undermine

it?◦ Development costs◦ Additional benefits

(opportunities)

Weaknesses◦ Effect on company◦ Possible solutions◦ Cost of solution◦ Result and cost of

leaving as-is (do nothing)

Cloud Computing

As consumers and students, you are familiar with Web-based services.◦ E-commerce, sales◦ News, entertainment◦ Communications◦ Social networks and interaction

Businesses can use the same approaches and run software and data on Web servers with applications on laptops, tablets, and cell phones to access this data.◦ Cloud computing consists of running the main servers,

data, and business logic on Web-based servers in the Internet cloud.

◦ Each chapter explores impacts and implications for business of moving more operations into a Web-based system.

Technology Toolbox: Choosing a Search EngineGeneral purpose search engines

Google, Bing, YahooMeta-searches across multiple engines

DogpileEncyclopedia

Wikipedia.orgDictionary

Wiktionary.org (or click the research button in IE)Phone book

Switchboard, SuperpagesProducts

Mysimon, CnetGovernment data

CIA.gov (World Factbook)Fedstats.gov (main data source) SEC.gov (EDGAR corporate filings)

Math and Science and some DataWolframalpha

Other (and often better)Your library databases

Consider using multiple search engines because some of them filter responses based on your prior queries.

Quick Quiz: Search Engines

Where would you begin your search to answer the following questions?

1. Under the proposed IAU definition, which planetoid falls between Mars and Jupiter?

2. By revenue, which was the largest company in the world in 2010?

3. Find the best price on a 512 GB SSD.

4. Which U.S. professional basketball team had the fewest wins in the 2010-2011 season?

5. Which celebrities are still alive? Sophia Loren, Harman Killebrew, Phyllis Diller, Nancy Reagan, I.M. Pei.

Advanced SearchesBoolean searches: And/Or/Not

Phrases: “white knight”

“white knight” 126,000“white knight” corporate 12,000“white knight” corporate

–hackers –groups –Australia –resources 5,080“white knight” corporate merger

–hackers –groups –resources 701“white knight” corporate merger

–hackers –groups –resources –history –Australia 655

You can also search by date, domain (company), linked pages, and even reading level (with Google).

Wolfram Alpha (Mathematica)http://www.wolframalpha.com/

Search:derivative of 5*x^4 - 13*x^3

Other searches:A dateA townTwo stocks

Bing (Microsoft)http://www.bing.com

Organizing the results to help find answers and knowledge.

http://www.yippy.comWas: http://www.clusty.com(Vivisimo)

Technology Toolbox: Government Data

Agency Main Types of Data SiteLabor (BLS) Employment and

priceswww.bls.gov/data

Census Demographic and maps

www.census.gov

Economic Analysis (BEA)

Economic summaries www.bea.gov

Transportation Statistics

Airline, rail, and road www.bts.gov

Justice Statistics Crime and courts bjs.ojp.usdoj.gov Economic Research (Ag)

Food and farm economics

www.ers.usda.gov Health (CDC) Health and

Healthcarewww.cdc.gov/nchs Securities and

Exchange (SEC)Business filings www.sec.gov

(EDGAR)

http://www.fedstats.gov

Google: Public Data (2009)WolframAlpha

Search:CA unemployment rate

Can use other standard statistics from government databases, including demographics.

Quick Quiz: Government Data1. What was the U.S. monthly unemployment rate for

the last year?2. What is the current population of the U.S.?3. What was the value of the U.S. trade deficit for the

last year?

Cases: Fast Food Industry

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McDonald'sBurger KingYumStarbucksWendysB

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McDonald'sBurger KingYumStarbucksWendysR

ati

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