Introduction to MIS Chapter 1 Introduction Jerry PostTechnology Toolbox: Search EnginesTechnology Toolbox: SearchingCases: 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) o processing, and distribution of data using computer hardware and software, telecommunications, and digital electronics.
MIS Components Hardware Software Backup data Restart job Virus scan People Data Procedures
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/Topics1. Introduction 8. Teamwork2. Technology 9. Decisions Foundations 10. Strategy3. Networks 11. Entrepreneurship4. Databases 12. Systems5. Security 13. MIS Organization6. Transactions and 14. Society ERP7. eCommerce
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-Q31. Managers need to use technology to increase productivity to be competitive.2. 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 Retail U.S. Retail and E-Commerce Sales Ecommerce 1200 60 1000 50 800 40Retail Billtion $ 600 30 400 20 200 10 0 0 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 • You can buy a new model item when it is 800 released or wait for the 700 price to drop. 600 • You can keep buying 500 new releases orprice 400 continue to use an ―old‖ 300 model. 200 • Answers depend on 100 your needs, the 0 1 3 5 7 9 11 13 15 17 features offered, and time the reliability of the old items. • Plus the bling factor.
What do Managers do? Traditional ◦ Organizing ◦ Planning ◦ Control Mintzberg (Henry Mintzberg – Canadian Mgmt Writer) ◦ Interpersonal ◦ Informational ◦ Decisional Luthans ◦ Traditional 32% ◦ Formal Communication 29% ◦ Human Resource Mgmt 20% ◦ Networking 19%
MeetingsManagers and professionals spend considerable time in meetings. Providingsupport 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 2 31
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
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
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 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 Trend Summary Business Trend Implications for TechnologySpecialization 1.Increased demand for technical skills 2.Specialized MIS tools 3.Increased communicationMethodology & Franchises 1.Reduction of middle management 2.Increased data sharing 3.Increased analysis by top management 4.Computer support for rules 5.Re-engineeringMergers 1.Four or five big firms dominate most industries 2.Need for communication 3.Strategic ties to customers and suppliersDecentralization & Small Business 1.Communication needs 2.Lower cost of management tasks 3.Low maintenance technologyTemporary Workers 1.Managing through rules 2.Finding and evaluating workers 3.Coordination and control 4.Personal advancement through technology 5.SecurityInternationalization 1.Communication 2.Product design 3.System development and programming 4.Sales and marketingService 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 Internationalization ◦ Communication ◦ Product design ◦ System development and programming ◦ Sales and marketing Service Orientation ◦ Management jobs are information jobs ◦ Customer service requires better information ◦ Speed
Web Users (Counts) Middle East, 63.2 Oceania/ Australia, 2 Latin Africa, 110. 1.3 America/ 9 Caribbean, Million 204.7 Users Asia, 825.1 North America, 26 6.2 Europe, 47 5.1 Asia: 30 percent of population North America: 75 percent http://www.internetworldstats.com/stats.htm
US Employment Patterns U.S. Employment Patterns 140 120 100Million Workers 80 Service Management 60 Manufacturing 40 Farm 20 0 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
MIS Organization Strategic Mgt. Tactical Management Business Operations
Operations, Tactics,Strategy S e c to r O p e ratio n s T a c tic s S tra te g yP ro d u c tio n • M a ch in e se ttin g s • R e a rra ng e w o rk a re a • N e w fa cto ry • W orke r sch e d u le s • S ch e d u le n e w p ro d u cts • N e w p ro d u cts • M a in te n a n ce sch . • C h a n g e in ve n to ry m eth o d • N e w in d u stryA c c o u n tin g • C a teg o rize a ssets • In ve n to ry va lu a tio n • N e w G L syste m • A ssig n e xp e n se s • D e p re cia tio n m e th od • D e b t vs. eq u ity • P ro d u ce re p orts • F in a n ce sh o rt/lo n g term • Inte rn atio n a l ta xe sM a rk e tin g • R e w a rd sa le sp e o p le • D e te rm in e pricin g • M o n ito r co m p etito rs • S u rve y cu sto m ers • P ro m otio n a l cam p a ig n s • N e w p ro d u cts • M o n ito r p ro m otio n s • S e le ct m a rk eting m e d ia • N e w m a rk e ts
Decision Levels Decision Description Example Type of Information LevelStrategic 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 Strategy Risk & Reward Creativity Porter’s External Agents ◦ Customers ◦ Suppliers ◦ Competitors ◦ Government
Strategy/Porter Threat of New EntrantsBargaining Power Rivalry Among Bargaining Powerof Suppliers Existing Competitors of Buyers Threat of Substitute Products or Services
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
An Internet Approach for HospitalSupply Daily Auction Bid1 Bid2 Supplier Hospital Bid3 <<purchase Baxter Supply Closets Internet Supplier Johnson Winning bidder delivers supplies Supplier
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)
Cloud Computing As consumers and students, you are familiar with Web- based 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 SearchEngine purpose search engines General Consider using multiple Google, Bing, Yahoo search engines because Meta-searches across multiple engines some of them filter Dogpile responses based on your Encyclopedia prior queries. 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
Quick Quiz: Search EnginesWhere would you begin your search to answer the followingquestions?1. Under the proposed IAU definition, which planetoid falls betweenMars and Jupiter?2. By revenue, which was the largest company in the world in 2010?3. Find the best price on a 512 GB SSD.4. Which U.S. professional basketball team had the fewest wins inthe 2010-2011 season?5. Which celebrities are still alive? Sophia Loren, Harman Killebrew,Phyllis Diller, Nancy Reagan, I.M. Pei.
Advanced SearchesBoolean searches: And/Or/NotPhrases: ―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.comOrganizing theresults to help findanswers andknowledge.http://www.yippy.comWas: http://www.clusty.com(Vivisimo)
Technology Toolbox: Government DataAgency Main Types of Data SiteLabor (BLS) Employment and prices www.bls.gov/dataCensus Demographic and maps www.census.govEconomic Analysis (BEA) Economic summaries www.bea.govTransportation Statistics Airline, rail, and road www.bts.govJustice Statistics Crime and courts bjs.ojp.usdoj.govEconomic Research (Ag) Food and farm www.ers.usda.gov economicsHealth (CDC) Health and Healthcare www.cdc.gov/nchsSecurities and Exchange Business filings www.sec.gov(SEC) (EDGAR) http://www.fedstats.gov
Google: Public Data (2009) WolframAlphaSearch:CA unemployment rateCan use otherstandard statisticsfrom governmentdatabases,includingdemographics.
Quick Quiz: Government Data1. 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?