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Introduction to MIS

BUSI 100
Jerry Post

Copyright 1998-2002 by Jerry Post

Introduction to MIS 1
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 2
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)

Introduction to MIS 3
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 4
Why is MIS Important?
MIS affects all areas of business
Manufacturing
Accounting & Finance
Human resources
Marketing
Top management
Performance evaluationsexpectations

Introduction to MIS 5
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

Introduction to MIS 6
What do Managers do?
Traditional
Organizing
Planning
Control
Mintzberg
Interpersonal
Informational
Decisional
Luthans
Traditional 50%
Formal Communication 30%
Networking 20%

Introduction to MIS 7
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 8
Making Decisions
Methodology v Ad Hoc Decisions
Decision Process
Collect Data
Identify Problems & Opportunities
Make Choices

2 3
1

Introduction to MIS 9
Traditional Management

CEO Condensed reports


Commands

VP VP VP VP VP
Finance Marketing Accounting HRM MIS
Analyze data

Layers of middle managers

Collect
data
Customers

Introduction to MIS 12
Decentralization
Management Team
CEO
VP VP VP VP VP
Fin Mrkt Acct HRM MIS
Strategy

Corporate
Finance Marketing Accounting HRM
Team Team Team Team Database
&
Network

Sales Methodology/Rules
Franchise
Team

Customers

Introduction to MIS 13
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

Introduction to MIS 14
Specialization
Business Trends & Implications
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

Introduction to MIS 15
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

Introduction to MIS 16
Changing Business Environment
US History:Farmer Laborer Management

Year Farm Mfg Mgt Service

1920 29% 44% 22% 6%


1940 23 38 30 8
1960 9 36 43 12
1980 3 32 52 13
2000 3 25 59 14

Introduction to MIS 17
US Employment Patterns

US Employment Patterns

160
140
120
millions of workers

Service
100
Management
80
Manufacturing
60
Farm
40
20
0
1920 1930 1940 1950 1960 1970 1980 1990 2000

Introduction to MIS 18
Internationalization

US Merchandise Trade

1400
1200
1000 Imports
$ billion

800 Exports

600
400
200
0
1920
1925
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
Introduction to MIS 19
Business Trend

Specialization
Implications for Technology

1.Increased demand for technical skills


Business
2.Specialized MIS tools
3.Increased communication Trend
Methodology & Franchises 1.Reduction of middle management
2.Increased data sharing
3.Increased analysis by top management
Summary
4.Computer support for rules
5.Re-engineering

Mergers 1.Four or five big firms dominate most industries


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

Decentralization & Small 1.Communication needs


Business 2.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
3.Speed

Introduction to MIS 20
MIS Organization

Strategic
Mgt.

Tactical
Management

Business Operations

Introduction to MIS 21
Operations, Tactics,Strategy

Sector Operations Tactics Strategy


Production Machine settings Rearrange work area New factory
Worker schedules Schedule new products New products
Maintenance sch. Change inventory method New industry
Accounting Categorize assets Inventory valuation New GL system
Assign expenses Depreciation method Debt vs. equity
Produce reports Finance short/long term International taxes
Marketing Reward salespeople Determine pricing Monitor competitors
Survey customers Promotional campaigns New products
Monitor promotions Select marketing media New markets

Introduction to MIS 22
Decision Levels

Decision Description Example Type of Information


Level
Strategic Competitive advantage, New product that External events, rivals,
become a market leader. will change the sales, costs quality,
Long-term outlook. industry. trends.
Tactical Improving operations New tools to cut Expenses, schedules,
without restructuring the costs or improve sales, models,
company. efficiency. forecasts.
Operations Day-to-day actions to Scheduling Transactions,
keep the company employees, accounting, human
functioning. ordering supplies. resource management,
inventory.

Introduction to MIS 23
Introduction to Strategy
Risk & Reward
Creativity
Porters External Agents
Customers
Suppliers
Competitors
Government

Introduction to MIS 24
Baxter/Strategy
Typical Supply Relationship

Hospital
American Hospital Supplier
Supply

Supply
Closets Warehouse

Supplier
Supply storeroom

Supplier

Introduction to MIS 25
Baxter/Strategy
AHS/Baxter Computer Link

Supplier
Hospital
American Hospital
Monitor
Supply Baxter
Usage data
Supply Closets Computer

Deliver Warehouse
Supplies as
needed
Supplier
Free space
Accurate usage data

Supplier

Introduction to MIS 26
Strategy/Porter
Threat of
New Entrants

Bargaining Power Rivalry Among Bargaining Power


of Suppliers Existing Competitors of Buyers

Threat of Substitute
Products or Services

Introduction to MIS 27
Strategy/Organization
Strength Weaknesses
Source of strength Effect on company
Value of strength Possible solutions
How can it be developed? Cost of solution
What could undermine it? Result and cost of leaving
Development costs as-is (do nothing)
Additional benefits
(opportunities)

Introduction to MIS 28
Cases: Fast Food Industry

McDonalds uses a considerable amount of information technology to


maintain consistency, monitor employees, and track sales.

Introduction to MIS 29
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?

Introduction to MIS 30
Appendix: Finding Information
Organization
Boolean searches
You know what you are searching for.
You have a vague idea about what you want.

Introduction to MIS 31
Appendix: Boolean Searches
A B A and B A or B not A
Truth Table T T T T F
T F F T F
F T F T T
F F F F T

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

Introduction to MIS 32
Full text Web searches Appendix: Search Engines
Altavista www.altavista.com
Dogpile www.dogpile.com
Google www.google.com
Lycos www.lycos.com
Search www.search.com
Webcrawler www.webcrawler.com
Wisenut 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

Introduction to MIS 33
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 control


of their Sheraton Inns. Instead, ITT sold out to a
white knight (Starwood Lodging) in 1997.

Introduction to MIS 34
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

Introduction to MIS 35