Introduction to MIS   Chapter 1   Introduction   Jerry PostTechnology Toolbox: Search EnginesTechnology Toolbox: Searching...
Outline   How can MIS help you in your job?   What is MIS?   Why is information technology important? Why do all    bus...
What is MIS?   Information    ◦ Data that has been put into a meaningful and      useful context. Usually to help make a ...
MIS Components   Hardware                               Software                 Backup data                 Restart job  ...
Goal of This Course   How can MIS help you do your job? Understand the technology. Analyze business problems. An intro...
Why is MIS Important?   MIS affects all areas of business    ◦   Manufacturing    ◦   Accounting & Finance    ◦   Human r...
Chapters/Topics1.   Introduction       8.  Teamwork2.   Technology         9. Decisions     Foundations        10. Strateg...
Productivity Growth: Output per Worker                                      Output per Person             120             ...
What are e-Commerce and e-Business?   Business-to-Consumer (B2C)    ◦ Selling retail products to consumers   Business-to...
Retail E-Commerce Statistics                                                                  Retail                      ...
Technology Excesses?                  Typical Price Declines                                                          • Yo...
What do Managers do?   Traditional    ◦ Organizing    ◦ Planning    ◦ Control   Mintzberg (Henry Mintzberg – Canadian Mg...
MeetingsManagers and professionals spend considerable time in meetings. Providingsupport for teamwork and group decisions ...
Making Decisions     Methodology v Ad Hoc Decisions     Decision Process        ◦ Collect Data        ◦ Identify Problem...
Traditional Management                                CEO                  Condensed reports Commands      VP       VP    ...
Decentralization                       Management Team                            CEO            VP     VP          VP    ...
Business Trends   Changing business environment    ◦ Specialization    ◦ Management by Methodology and      Franchises   ...
Business Trends & Implications   Specialization    ◦   Increased demand for technical skills    ◦   Specialized MIS tools...
Business Trend Summary          Business Trend                                 Implications for TechnologySpecialization  ...
Business Trends & Implications   Temporary Workers    ◦   Managing through rules    ◦   Finding and evaluating workers   ...
Internationalization                                  U.S. Trade          Imports/GDP                                     ...
International Web Browsers                      Web Users (Language)                  Other, 17.8      Korean, 2          ...
Web Users (Counts)                      Middle                     East, 63.2    Oceania/                                 ...
US Employment Patterns                                             U.S. Employment Patterns                  140          ...
Changing Business Environment   US History: Farmer Laborer Management        Year   Farm   Mfg   Mgt   Service        192...
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            ...
Decision Levels Decision           Description              Example          Type of Information  LevelStrategic    Compet...
Introduction to Strategy Risk & Reward Creativity Porter’s External Agents    ◦   Customers    ◦   Suppliers    ◦   Com...
Strategy/Porter                      Threat of                      New EntrantsBargaining Power    Rivalry Among         ...
Baxter/Strategy                   Typical Supply Relationship  Hospital                                  American Hospital...
Baxter/Strategy                    AHS/Baxter Computer Link                                                        Supplie...
An Internet Approach for HospitalSupply           Daily Auction                         Bid1                         Bid2 ...
Strategy/Organization   Strength                        Weaknesses    ◦ Source of strength             ◦ Effect on compa...
Cloud Computing   As consumers and students, you are familiar with Web-    based services.    ◦   E-commerce, sales    ◦ ...
Technology Toolbox: Choosing a SearchEngine purpose search engines   General                                     Consider ...
Quick Quiz: Search EnginesWhere would you begin your search to answer the followingquestions?1. Under the proposed IAU def...
Advanced SearchesBoolean searches: And/Or/NotPhrases: ―white knight‖  ―white knight‖                                     1...
Wolfram Alpha (Mathematica)             http://www.wolframalpha.com/Search:derivative of 5*x^4 - 13*x^3    Other searches:...
Bing (Microsoft)http://www.bing.comOrganizing theresults to help findanswers andknowledge.http://www.yippy.comWas: http://...
Technology Toolbox: Government  DataAgency                        Main Types of Data        SiteLabor (BLS)               ...
Google: Public Data (2009)  WolframAlphaSearch:CA unemployment rateCan use otherstandard statisticsfrom governmentdatabase...
Quick Quiz: Government Data1. What was the U.S. monthly unemployment rate for   the last year?2. What is the current popul...
Cases: Fast Food Industry                                                              Annual Revenue                    3...
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  • Adhoc Decisions meanit refers to anything that is designed for a specific purpose. This is exactly how we can characterize the decision making of small businesses: there’s a new decision for each new situation; and no plans for future contingencies.To the contrary, large corporations plan, work out contingencies, and create systems that can be re-used without spending the time to re-invent the wheel. Take, for instance, the concept of franchising. This makes it possible to create hundreds of retail stores or restaurants without coming up with an “ad hoc” plan for each individual store.
  • An executive information system (EIS) is a type of management information system intended to facilitate and support the information and decision-making needs of senior executives by providing easy access to both internal and external information relevant to meeting the strategic goals of the organizationEnterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.Emergency Systems (ES)DSS include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, and personal knowledge, or business models to identify and solve problems and make decisions.
  • Mis01

    1. 1. Introduction to MIS Chapter 1 Introduction Jerry PostTechnology Toolbox: Search EnginesTechnology Toolbox: SearchingCases: Fast Food
    2. 2. 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?
    3. 3. 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.
    4. 4. MIS Components Hardware Software Backup data Restart job Virus scan People Data Procedures
    5. 5. 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.
    6. 6. Why is MIS Important? MIS affects all areas of business ◦ Manufacturing ◦ Accounting & Finance ◦ Human resources ◦ Marketing ◦ Top management Performance evaluations— expectations
    7. 7. 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
    8. 8. 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
    9. 9. 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
    10. 10. 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
    11. 11. 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.
    12. 12. 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%
    13. 13. MeetingsManagers and professionals spend considerable time in meetings. Providingsupport for teamwork and group decisions is an important issues in MIS.
    14. 14. Making Decisions  Methodology v Ad Hoc Decisions  Decision Process ◦ Collect Data ◦ Identify Problems & Opportunities ◦ Make Choices 2 31
    15. 15. 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
    16. 16. 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
    17. 17. 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
    18. 18. 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
    19. 19. 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
    20. 20. 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
    21. 21. Internationalization U.S. Trade Imports/GDP Exports/GDP 0.2 0.18 0.16 0.14 0.12 Percent 0.1 0.08 0.06 0.04 0.02 0 Yearhttp://www.bea.gov/national/nipaweb/Index.asp
    22. 22. International Web Browsers Web Users (Language) Other, 17.8 Korean, 2 English, 27. Russian, 3 3 French, 3 Arabic, 3.3 German, 3. Chinese, 22 8 .6 Portuguese, 4.2 Japanese, 5 Spanish, 7. 8 http://www.internetworldstats.com/stats7.htm
    23. 23. 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
    24. 24. 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
    25. 25. 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 1 16 66 17 2010 1 11 68 20
    26. 26. MIS Organization Strategic Mgt. Tactical Management Business Operations
    27. 27. 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
    28. 28. 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.
    29. 29. Introduction to Strategy Risk & Reward Creativity Porter’s External Agents ◦ Customers ◦ Suppliers ◦ Competitors ◦ Government
    30. 30. Strategy/Porter Threat of New EntrantsBargaining Power Rivalry Among Bargaining Powerof Suppliers Existing Competitors of Buyers Threat of Substitute Products or Services
    31. 31. Baxter/Strategy Typical Supply Relationship Hospital American Hospital Supplier Supply Supply Closets Warehouse SupplierSupply storeroom Supplier
    32. 32. 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
    33. 33. An Internet Approach for HospitalSupply Daily Auction Bid1 Bid2 Supplier Hospital Bid3 <<purchase Baxter Supply Closets Internet Supplier Johnson Winning bidder delivers supplies Supplier
    34. 34. 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)
    35. 35. 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.
    36. 36. 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
    37. 37. 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.
    38. 38. 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).
    39. 39. Wolfram Alpha (Mathematica) http://www.wolframalpha.com/Search:derivative of 5*x^4 - 13*x^3 Other searches: A date A town Two stocks
    40. 40. Bing (Microsoft)http://www.bing.comOrganizing theresults to help findanswers andknowledge.http://www.yippy.comWas: http://www.clusty.com(Vivisimo)
    41. 41. 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
    42. 42. Google: Public Data (2009) WolframAlphaSearch:CA unemployment rateCan use otherstandard statisticsfrom governmentdatabases,includingdemographics.
    43. 43. 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?
    44. 44. Cases: Fast Food Industry Annual Revenue 30 25 20 McDonalds Billion $ Burger King 15 Yum 10 Starbucks Wendys 5 0 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Net Income / Revenue 0.25 0.20 0.15 McDonalds 0.10 Burger KingRatio 0.05 Yum Starbucks 0.00 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Wendys -0.05 -0.10 -0.15

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