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Introduction to MIS

Chapter 1 Introduction
Jerry Post

Technology Toolbox: Search Engines Technology Toolbox: Searching Cases: 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)

MIS Components

Hardware Software

Backup data Restart job Virus scan

People

Procedures

Data

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. 2. 3. 4. 5. 6.

7.

Introduction Technology Foundations Networks Databases Security Transactions and ERP eCommerce

8. 9. 10. 11. 12. 13. 14.

Teamwork Decisions Strategy Entrepreneurship Systems MIS Organization Society

Productivity Growth: Output per Worker


Output per Person
120 100 80 60 40 20 0 1994-Q1 1994-Q3 1995-Q1 1995-Q3 1996-Q1 1996-Q3 1997-Q1 1997-Q3 1998-Q1 1998-Q3 1999-Q1 1999-Q3 2000-Q1 2000-Q3 2001-Q1 2001-Q3 2002-Q1 2002-Q3 2003-Q1 2003-Q3 2004-Q1 2004-Q3 2005-Q1 2005-Q3 2006-Q1 2006-Q3 2007-Q1 2007-Q3 2008-Q1 2008-Q3 2009-Q1 2009-Q3 2010-Q1 2010-Q3

1. 2.

Managers need to use technology to increase productivity to be competitive. 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?
http://data.bls.gov:8080/PDQ/outside.jsp?survey=pr

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

Retail E-Commerce Statistics


U.S. Retail and E-Commerce Sales
1200 1000 800 600 400 200 0 Retail Ecommerce 60 50 40 30 20 10 0

Retail Billtion $

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

Technology Excesses?
Typical Price Declines
800 700 600

price

500 400 300 200 100 0 1 3 5 7 9 11 13 15 17

time

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
Interpersonal Informational Decisional

Luthans
Traditional 50% Formal Communication Networking 20%
30%

Meetings

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

Making Decisions
Methodology v Ad Hoc Decisions Decision Process

Collect Data Identify Problems & Opportunities Make Choices


1

Traditional Management
Commands

CEO

Condensed reports

VP Finance

VP Marketing

VP Accounting

VP HRM

VP MIS

Analyze data

Layers of middle managers

Collect data

Customers

Decentralization
Management Team CEO
VP Fin VP Mrkt VP Acct VP HRM VP MIS

Strategy
Finance Team Marketing Team Accounting Team HRM Team

Corporate Database & Network

Sales Team

Methodology/Rules

Franchise

Customers

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

Business Trends & Implications

Specialization
Increased demand for technical skills Specialized MIS tools Increased communication Emphasis on Teamwork Reduction of middle management Increased data sharing Increased analysis by top management Computer support for rules Re-engineering

Methodology & Franchises

Mergers

Larger companies Need for control and information Economies of scale Communication needs Lower cost of management tasks Low maintenance technology

Decentralization & Small Business

Business Trend Summary


Business Trend Specialization Implications for Technology 1.Increased demand for technical skills 2.Specialized MIS tools 3.Increased communication 1.Reduction of middle management 2.Increased data sharing 3.Increased analysis by top management 4.Computer support for rules 5.Re-engineering 1.Four or five big firms dominate most industries 2.Need for communication 3.Strategic ties to customers and suppliers 1.Communication needs 2.Lower cost of management tasks 3.Low maintenance technology 1.Managing through rules 2.Finding and evaluating workers 3.Coordination and control 4.Personal advancement through technology 5.Security 1.Communication 2.Product design 3.System development and programming 4.Sales and marketing

Methodology & Franchises

Mergers

Decentralization & Small Business

Temporary Workers

Internationalization

Service Orientation

1.Management jobs are information jobs 2.Customer service requires better information 3.Speed

Business Trends & Implications

Temporary Workers
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

Internationalization

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

Internationalization
U.S. Trade
Imports/GDP Exports/GDP

0.2 0.18 0.16 0.14 Percent 0.12 0.1 0.08 0.06 0.04 0.02 0

Year

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

International Web Browsers


Web Users (Language)

Korean, 2 Russian, 3 French, 3 Arabic, 3.3 German, 3.8 Portuguese, 4.2 Japanese, 5

Other, 17.8 English, 27.3

Chinese, 22.6

Spanish, 7.8

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

Web Users (Counts)


Africa, 110.9

Latin America/ Caribbean, 204.7

Middle East, 63.2

Oceania/ Australia, 21.3

Million Users

North America, 266.2

Asia, 825.1

Europe, 475.1

Asia: 30 percent of population North America: 75 percent http://www.internetworldstats.com/stats.htm

US Employment Patterns
U.S. Employment Patterns
140 120 100 Million Workers

80
60 40 20 0

Service Management Manufacturing Farm

1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

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

Changing Business Environment

US History: Farmer Laborer Management


Year 1920
1940 1960 1980 2000 2010

Farm 29%
23 9 3 1 1

Mfg 44%
38 36 32 16 11

Mgt 22%
30 43 52 66 68

Service 6%
8 12 13 17 20

MIS Organization

Strategic Mgt. Tactical Management

Business Operations

Operations, Tactics,Strategy
Sector Production Operations Machine settings Worker schedules Maintenance sch. Categorize assets Assign expenses Produce reports Reward salespeople Survey customers Monitor promotions 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

Accounting

Marketing

Decision Levels
Decision Level
Strategic

Description
Competitive advantage, become a market leader. Long-term outlook. Improving operations without restructuring the company.

Example
New product that will change the industry. New tools to cut costs or improve efficiency.

Type of Information
External events, rivals, sales, costs quality, trends. Expenses, schedules, sales, models, forecasts.

Tactical

Operations

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

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

Introduction to Strategy
Risk & Reward Creativity Porters External Agents

Customers Suppliers Competitors Government

Strategy/Porter
Threat of New Entrants

Bargaining Power of Suppliers

Rivalry Among Existing Competitors

Bargaining Power of Buyers

Threat of Substitute Products or Services

Baxter/Strategy
Typical Supply Relationship Hospital American Hospital Supply Warehouse Supplier Supplier

Supply Closets

Supply storeroom

Supplier

Baxter/Strategy
Hospital

AHS/Baxter Computer Link Supplier


Monitor Usage data

Supply Closets

American Hospital Supply Computer Warehouse

Baxter

Deliver Supplies as needed Free space

Supplier

Accurate usage data

Supplier

An Internet Approach for Hospital Supply Daily Auction


Hospital
Bid1 Bid2 Bid3 <<purchase

Supplier Baxter

Supply Closets

Internet Supplier Johnson

Winning bidder delivers supplies

Supplier

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 Webbased 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 Engine purpose search engines General


Google, Bing, Yahoo Meta-searches across multiple engines Dogpile Encyclopedia Wikipedia.org Dictionary Wiktionary.org (or click the research button in IE) Phone book Switchboard, Superpages Products Mysimon, Cnet Government data CIA.gov (World Factbook) Fedstats.gov (main data source) SEC.gov (EDGAR corporate filings) Math and Science and some Data Wolframalpha 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. 3. By revenue, which was the largest company in the world in 2010? 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 Searches
Boolean 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 date A town Two stocks

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

Organizing the results to help find answers and knowledge.

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

Technology Toolbox: Government Data


Agency Labor (BLS) Census Economic Analysis (BEA) Transportation Statistics Justice Statistics Economic Research (Ag) Main Types of Data Employment and prices Demographic and maps Economic summaries Airline, rail, and road Crime and courts Food and farm economics Health and Healthcare Business filings Site www.bls.gov/data www.census.gov www.bea.gov www.bts.gov bjs.ojp.usdoj.gov www.ers.usda.gov

Health (CDC) Securities and Exchange (SEC) http://www.fedstats.gov

www.cdc.gov/nchs www.sec.gov (EDGAR)

Google: Public Data (2009) WolframAlpa


Search: CA unemployment rate Can use other standard statistics from government databases, including demographics.

Quick Quiz: Government Data


1. 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


Annual Revenue
30 25 20 Billion $ 15 10 5 0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

McDonald's Burger King Yum Starbucks Wendys

Net Income / Revenue


0.25
0.20 0.15 McDonald's 0.10 Ratio 0.05 0.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 -0.05 -0.10 -0.15 Burger King Yum Starbucks Wendys

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