Lecture Management information systems: Solving business problems with information technology – Chapter 1

In this chapter, the following content will be discussed: 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?,...

Introduction to MIS

BUSI 100 Jerry Post

Outline

What is MIS?

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

 A combination of computers and people that is used to

provide information to aid in making decisions and managing

a firm

Goal of This Class

through cases.

Why is MIS Important?

What are e-Commerce and e-Business

What do Managers do?

Managers and professionals spend considerable time in meetings Providing

support for teamwork and group decisions is an important issues in MIS.

Meetings

Importance of MIS

IS budget as percent of revenue

0 1 2 3 4 5 6

Everyone Uses Computers

Percent of employees with PC/terminal

0 10 20 30 40 50 60 70 80 90 100

Traditional Management

CEO

VP Finance

VP Marketing

VP Accounting

VP HRM

VP MIS

Layers of middle managers

Customers

Commands

Analyze data Condensed reports

Collect data

Management Team

CEO

Finance Team

Marketing Team

Accounting Team

HRM Team

&

Network

VP Fin

VP Mrkt

VP Acct

VP HRM

VP MIS

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

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

Year Farm Mfg Mgt Service

US Employment Patterns

US Employment Patterns

0 20 40 60 80 100 120 140 160

US Merchandise Trade

0 200 400 600 800 1000 1200 1400

Business

Trend Summary

Business Trend Implications for Technology

Specialization 1.Increased demand for technical skills

2.Specialized MIS tools 3.Increased communication Methodology & Franchises 1.Reduction of middle management

2.Increased data sharing 3.Increased analysis by top management 4.Computer support for rules

5.Re­engineering

Mergers 1.Four or five big firms dominate most industries

2.Need for communication 3.Strategic ties to customers and suppliers Decentralization & Small 

Business 1.Communication needs2.Lower cost of management tasks

3.Low maintenance technology Temporary Workers 1.Managing through rules

2.Finding and evaluating workers 3.Coordination and control 4.Personal advancement through technology 5.Security

Internationalization 1.Communication

2.Product design 3.System development and programming 4.Sales and marketing

Service Orientation 1.Management jobs are information jobs

2.Customer service requires better information

MIS Organization

Business Operations

Tactical Management

Strategic Mgt. EI

S ES

Operations, Tactics,Strategy

Production • Machine settings

• Worker schedules

• Maintenance sch.

• Rearrange work area

• Schedule new products

• Change inventory method

Decision Levels

Decision

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.

Supply storeroom

Supply Closets

Hospital

Warehouse

American Hospital

Supply SupplierTypical Supply Relationship

Supplier

Supplier

Deliver Supplies as needed Accurate usage data Free space

Rivalry Among Existing Competitors Bargaining Powerof Buyers

Bargaining Power

of Suppliers

Threat of New Entrants

Threat of Substitute Products or Services

 Strength

 Source of strength

 Value of strength

 How can it be developed?

 What could undermine it?

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 Café Dave & 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?

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

Medellin AND (terror OR bomb OR kidnap) 1,563

Medellin AND (terror OR bomb OR kidnap)

AND American

Appendix: Search Engines

Appendix: You Know What You Want

ITT corporate merger with “white knight”.

Details: Hilton attempted to buy ITT to gain control

of their Sheraton Inns Instead, ITT sold out to a

“white knight” (Starwood Lodging) in 1997.

Appendix: You Start With a Vague Topic

“white knight” corporate 5,060

“white knight” corporate

NOT (history, Canada, India) 2,820

“white knight” corporate merger

NOT (history, Canada, India) 699

“white knight” corporate merger

NOT (history, Canada, India, Germany, foreign) 463