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Introduction to MIS

BUSI 100
Jerry Post

Copyright 1998-2002 by Jerry Post

Introduction to MIS

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

Introduction to MIS

What is MIS?

Information

Management Information System

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.

Information Technology (IT)

Introduction to MIS

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.

Introduction to MIS

Why is MIS Important?

MIS affects all areas of business

Manufacturing
Accounting & Finance
Human resources
Marketing
Top management

Performance evaluationsexpectations

Introduction to MIS

What are e-Commerce and e-Business

Business-to-Consumer (B2C)

Business-to-Business (B2B)

Selling retail products to consumers


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

Introduction to MIS

What do Managers do?

Traditional

Mintzberg

Organizing
Planning
Control
Interpersonal
Informational
Decisional

Luthans

Traditional
Formal Communication
Networking

Introduction to MIS

50%
30%
20%

Meetings

Managers and professionals spend considerable time in meetings. Providing


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

Introduction to MIS

Making Decisions

Methodology v Ad Hoc Decisions


Decision Process

Collect Data
Identify Problems & Opportunities
Make Choices

Introduction to MIS

Traditional Management

CEO

Commands

VP
Finance

VP
Marketing

VP
Accounting

Condensed reports

VP
HRM

VP
MIS

Analyze data

Layers of middle managers

Customers

Introduction to MIS

Collect
data

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Decentralization
Management Team
CEO
VP
Fin

VP
Mrkt

VP
Acct

VP
HRM

VP
MIS

Strategy
Finance
Team

Marketing
Team

Sales
Team

Accounting
Team

Methodology/Rules

HRM
Team

Corporate
Database
&
Network

Franchise

Customers

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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

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Specialization

Reduction of middle management


Increased data sharing
Increased analysis by top management
Computer support for rules
Re-engineering

Mergers

Increased demand for technical skills


Specialized MIS tools
Increased communication

Methodology & Franchises

Business Trends & Implications

Larger companies
Need for control and information
Economies of scale

Decentralization & Small Business

Communication needs
Lower cost of management tasks
Low maintenance technology

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Business Trends & Implications

Temporary Workers

Internationalization

Managing through rules


Finding and evaluating workers
Coordination and control
Personal advancement through technology
Security
Communication
Product design
System development and programming
Sales and marketing

Service Orientation

Management jobs are information jobs


Customer service requires better information
Speed

Introduction to MIS

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Changing Business Environment

US History:Farmer Laborer Management


Year

Farm

Mfg

Mgt

Service

1920

29%

44%

22%

6%

1940

23

38

30

1960

36

43

12

1980

32

52

13

2000

25

59

14

Introduction to MIS

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US Employment Patterns
US Employment Patterns
160

m illions of w orkers

140
120
100
80
60

Service
Management
Manufacturing
Farm

40
20
0
1920 1930 1940 1950 1960 1970 1980 1990 2000

Introduction to MIS

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Internationalization
US Merchandise Trade
1400

$ billion

1200
1000

Imports

800

Exports

600
400
200

Introduction to MIS

2000

1995

1990

1985

1980

1975

1970

1965

1960

1955

1950

1945

1940

1935

1930

1925

1920

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Business Trend

Implications for Technology

Specialization

1.Increased

demand for technical skills


2.Specialized MIS tools
3.Increased communication

Methodology & Franchises

1.Reduction

Mergers

1.Four

Decentralization & Small


Business

1.Communication

Temporary Workers

1.Managing

of middle management
2.Increased data sharing
3.Increased analysis by top management
4.Computer support for rules
5.Re-engineering

Business
Trend
Summary

or five big firms dominate most industries


2.Need for communication
3.Strategic ties to customers and suppliers
needs
2.Lower cost of management tasks
3.Low maintenance technology
through rules
and evaluating workers
3.Coordination and control
4.Personal advancement through technology
5.Security
2.Finding

Internationalization

1.Communication
2.Product

design
3.System development and programming
4.Sales and marketing
Service Orientation

Introduction to MIS

1.Management

jobs are information jobs


2.Customer service requires better information
3.Speed

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Business Operations

Introduction to MIS

Pr Tra
oc ns
es act
s C ion
on
tro
l

Tactical
Management

DS ES
S

Strategic
Mgt.

EI
S

MIS Organization

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Operations, Tactics,Strategy
Sector

Operations

Production

Machine settings
Worker schedules
Maintenance sch.
Categorize assets
Assign expenses
Produce reports
Reward salespeople
Survey customers
Monitor promotions

Accounting
Marketing

Introduction to MIS

Tactics
Rearrange work area
Schedule new products
Change inventory method
Inventory valuation
Depreciation method
Finance short/long term
Determine pricing
Promotional campaigns
Select marketing media

Strategy
New factory
New products
New industry
New GL system
Debt vs. equity
International taxes
Monitor competitors
New products
New markets

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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
Transactions,
employees,
accounting, human
ordering supplies. resource management,
inventory.

Introduction to MIS

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Introduction to Strategy

Risk & Reward


Creativity
Porters External Agents

Customers
Suppliers
Competitors
Government

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Baxter/Strategy
Typical Supply Relationship
Hospital

Supply
Closets

American Hospital
Supply

Supplier

Warehouse
Supplier

Supply storeroom

Supplier

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Baxter/Strategy
AHS/Baxter Computer Link
Supplier

Hospital
Monitor
Usage data
Supply Closets

Deliver
Supplies as
needed
Free space

American Hospital
Supply
Computer

Baxter

Warehouse
Supplier

Accurate usage data

Supplier

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Strategy/Porter
Threat of
New Entrants

Bargaining Power
of Suppliers

Rivalry Among
Existing Competitors

Bargaining Power
of Buyers

Threat of Substitute
Products or Services

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Strategy/Organization

Strength

Source of strength
Value of strength
How can it be developed?
What could undermine it?
Development costs
Additional benefits
(opportunities)

Introduction to MIS

Weaknesses

Effect on company
Possible solutions
Cost of solution
Result and cost of leaving
as-is (do nothing)

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Cases: Fast Food Industry

McDonalds uses a considerable amount of information technology to


maintain consistency, monitor employees, and track sales.

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Cases: McDonalds
Rainforest Caf
Dave & Busters
www.mcdonalds.com
www.rainforestcafe.com
Dave and Busters
What is the companys current status?
What is the Internet strategy?
How does the company use information technology?
What are the prospects for the industry?
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Appendix: Finding Information

Organization

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

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Appendix: Boolean Searches


Truth Table

Colombia
1,889,871
Medellin
37,682
Medellin AND terrorism
575
(terror OR bomb OR kidnap)
1,920,549
(terrorism OR bombing OR kidnap)
1,012,458
Medellin AND (terror OR bomb OR kidnap) 1,563
Medellin AND (terror OR bomb OR kidnap)
AND American
AND (dead OR death)
535
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Full text Web searches


Altavista
Dogpile
Google
Lycos
Search
Webcrawler
Wisenut

Appendix: Search Engines


www.altavista.com
www.dogpile.com
www.google.com
www.lycos.com
www.search.com
www.webcrawler.com
www.wisenut.com

Category Web searches


Yahoo
www.yahoo.com
People and businesses
ATT
www.tollfree.att.net
Superpages
www.superpages.com
Switchboard
www.switchboard.com

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Appendix: You Know What You Want


ITT corporate merger with white knight.
ITT

81,801

ITT corporate merger


ITT corporate merger white knight

908
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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.
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Appendix: You Start With a Vague Topic


white knight

47,000

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

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