35301318 introduction-to-mis

Introduction to MIS 1

Copyright © 1998-2002 by Jerry Post

Introduction to MIS

BUSI 100Jerry Post


Outline What is MIS? Why MIS is Important? What are e-commerce and e-business? What do Managers do? Business & Technology Trends Re-engineering: Altering the Rules Management and Decision Levels An Introduction to Strategy Cases: Fast Food Industry Appendix: Finding Information


What is MIS? Information

Data that has been put into a meaningful and useful context.

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)


Goal of This Class 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

Performance evaluations—expectations


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

Selling retail products to consumers

Business-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


What do Managers do? Traditional

Organizing Planning Control

Mintzberg Interpersonal Informational Decisional

Luthans Traditional 50% Formal Communication 30% Networking 20%


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 Decisions Decision Process

Collect Data Identify Problems & Opportunities Make Choices


Importance of MISEveryone Uses ComputersTraditional Management

IS budget as percent of revenue

0

1

2

3

4

5

6

Aer

ospa

ce

Con

sum

er

Fin

anci

al

Indu

stria

l

Man

uf.

Pet

role

um

Pha

rm.

Sal

es

Tra

ns.

Util

ities

%

Computerworld 1993*

*1997-2000 data is distorted by Y2k work.


Decentralization

Management TeamCEO

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

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 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


Changing Business Environment US History:Farmer Laborer Management

14592532000

13523231980

12433691960

83038231940

6%22%44%29%1920

ServiceMgtMfgFarmYear


Business Trend

Summary

•Management jobs are information jobs•Customer service requires better information•Speed

Service Orientation

•Communication•Product design•System development and programming•Sales and marketing

Internationalization

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

Temporary Workers

•Communication needs•Lower cost of management tasks•Low maintenance technology

Decentralization & Small Business

•Four or five big firms dominate most industries•Need for communication•Strategic ties to customers and suppliers

Mergers

•Reduction of middle management•Increased data sharing•Increased analysis by top management•Computer support for rules•Reengineering

Methodology & Franchises

•Increased demand for technical skills•Specialized MIS tools•Increased communication

Specialization

Implications for TechnologyBusiness Trend


MIS Organization

Business Operations

TacticalManagement

Strategic

Mgt.

EIS

ESD

SSTr

ansa

ctio

n

Proc

ess

Con

trol


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

Transactions, accounting, human resource management, inventory.

Scheduling employees, ordering supplies.

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

Operations

Expenses, schedules, sales, models, forecasts.

New tools to cut costs or improve efficiency.

Improving operations without restructuring the company.

Tactical

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

New product that will change the industry.

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

Strategic

Type of InformationExampleDescriptionDecision Level


Introduction to Strategy Risk & Reward Creativity Porter’s External Agents

Customers Suppliers Competitors Government


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


Strategy/Porter

Rivalry AmongExisting Competitors

Bargaining Powerof Buyers

Bargaining Powerof Suppliers

Threat ofNew Entrants

Threat of SubstituteProducts or Services


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)


Cases: Fast Food Industry

McDonald’s uses a considerable amount of information technology to maintain consistency, monitor employees, and track sales.


Cases: McDonald’s Rainforest CaféDave & Busters

www.mcdonalds.com

www.rainforestcafe.com

Dave and Busters

What is the company’s current status?

What is the Internet strategy?

How does the company use information technology?

What are the prospects for the industry?

http://www.mcdonalds.com/

http://www.rainforestcafe.com/


Appendix: Finding Information Organization

Boolean searches You know what you are searching for. You have a vague idea about what you want.


Appendix: Boolean Searches

Truth Table

Colombia 1,889,871Medellin 37,682Medellin AND terrorism 575(terror OR bomb OR kidnap) 1,920,549(terrorism OR bombing OR kidnap) 1,012,458Medellin AND (terror OR bomb OR kidnap) 1,563Medellin AND (terror OR bomb OR kidnap)

AND AmericanAND (dead OR death) 535


Appendix: Search EnginesFull text Web searchesAltavista www.altavista.comDogpile www.dogpile.comGoogle www.google.comLycos www.lycos.comSearch www.search.comWebcrawler www.webcrawler.comWisenut www.wisenut.com

Category Web searchesYahoo www.yahoo.com

People and businessesATT www.tollfree.att.netSuperpages www.superpages.comSwitchboard www.switchboard.com

http://www.altavista.com/

http://www.dogpile.com/

http://www.google.com/

http://www.lycos.com/

http://www.search.com/

http://www.webcrawler.com/

http://www.wisenut.com/

http://www.yahoo.com/

http://www.tollfree.att.net/

http://www.superpages.com/

http://www.switchboard.com/


Appendix: You Know What You Want

ITT corporate merger with “white knight”.

ITT 81,801

ITT corporate merger 908

ITT corporate merger “white knight” 26

Details: Hilton attempted to buy ITT to gain controlof their Sheraton Inns. Instead, ITT sold out to a“white knight” (Starwood Lodging) in 1997.


Appendix: You Start With a Vague Topic

“white knight” 47,000

“white knight” corporate 5,060

“white knight” corporateNOT (history, Canada, India) 2,820

“white knight” corporate mergerNOT (history, Canada, India) 699

“white knight” corporate mergerNOT (history, Canada, India, Germany, foreign) 463

35301318 introduction-to-mis

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