mis01
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Introduction to MIS
Chapter 1Introduction
Jerry Post
Technology Toolbox: Search EnginesTechnology Toolbox: SearchingCases: Fast Food
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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?
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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.
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MIS Components
Backup dataRestart jobVirus scan
HardwareSoftware
People ProceduresData
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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.
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Why is MIS Important?
MIS affects all areas of business◦Manufacturing◦Accounting & Finance◦Human resources◦Marketing◦Top management
Performance evaluations—expectations
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Chapters/Topics
1. Introduction2. Technology
Foundations3. Networks4. Databases5. Security6. Transactions and
ERP7. eCommerce
8. Teamwork9. Decisions10. Strategy11. Entrepreneurship12. Systems13. MIS Organization14. Society
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Productivity Growth: Output per Worker
http://data.bls.gov:8080/PDQ/outside.jsp?survey=pr
1. 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?
1994
-Q1
1994
-Q4
1995
-Q3
1996
-Q2
1997
-Q1
1997
-Q4
1998
-Q3
1999
-Q2
2000
-Q1
2000
-Q4
2001
-Q3
2002
-Q2
2003
-Q1
2003
-Q4
2004
-Q3
2005
-Q2
2006
-Q1
2006
-Q4
2007
-Q3
2008
-Q2
2009
-Q1
2009
-Q4
2010
-Q3
0
20
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60
80
100
120
Output per Person
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What are e-Commerce and e-Business?Business-to-Consumer (B2C)
◦Selling retail products to consumersBusiness-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
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Retail E-Commerce Statistics
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
1999
-4
2000
-2
2000
-4
2001
-2
2001
-4
2002
-2
2002
-4
2003
-2
2003
-4
2004
-2
2004
-4
2005
-2
2005
-4
2006
-2
2006
-4
2007
-2
2007
-4
2008
-2
2008
-4
2009
-2
2009
-4
2010
-2
2010
-40
200
400
600
800
1000
1200
0
10
20
30
40
50
60
U.S. Retail and E-Commerce SalesRetail
EcommerceR
eta
il B
illt
ion $
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Technology Excesses?Typical Price Declines
0
100
200
300
400
500
600
700
800
1 3 5 7 9 11 13 15 17
time
pri
ce
• 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.
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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%
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Managers and professionals spend considerable time in meetings. Providingsupport for teamwork and group decisions is an important issues in MIS.
Meetings
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12 3
Making Decisions
Methodology v Ad Hoc DecisionsDecision Process
◦Collect Data◦Identify Problems & Opportunities◦Make Choices
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Traditional Management
CEO
VPFinance
VPMarketing
VPAccounting
VPHRM
VPMIS
Layers of middle managers
Customers
Commands
Analyze data
Condensed reports
Collectdata
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DecentralizationManagement Team
CEO
FinanceTeam
MarketingTeam
AccountingTeam
HRMTeam
SalesTeam
Franchise
Strategy
Methodology/Rules
Customers
CorporateDatabase
&Network
VPFin
VPMrkt
VPAcct
VPHRM
VPMIS
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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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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
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Business Trend SummaryBusiness Trend Implications for Technology
Specialization 1.Increased demand for technical skills2.Specialized MIS tools3.Increased communication
Methodology & Franchises 1.Reduction of middle management2.Increased data sharing3.Increased analysis by top management4.Computer support for rules5.Re-engineering
Mergers 1.Four or five big firms dominate most industries2.Need for communication3.Strategic ties to customers and suppliers
Decentralization & Small Business
1.Communication needs2.Lower cost of management tasks3.Low maintenance technology
Temporary Workers 1.Managing through rules2.Finding and evaluating workers3.Coordination and control4.Personal advancement through technology5.Security
Internationalization 1.Communication2.Product design3.System development and programming4.Sales and marketing
Service Orientation 1.Management jobs are information jobs2.Customer service requires better information3.Speed
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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
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Internationalization
http://www.bea.gov/national/nipaweb/Index.asp
19
29
19
32
19
35
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2001
2004
2007
2010
0
0.02
0.04
0.06
0.08
0.1
0.12
0.14
0.16
0.18
0.2
U.S. Trade Imports/GDP
Exports/GDP
Year
Pe
rce
nt
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International Web Browsers
http://www.internetworldstats.com/stats7.htm
English; 27.3
Chinese; 22.6
Spanish; 7.8Japanese;
5
Por-tuguese;
4.2
German; 3.8
Arabic; 3.3French; 3
Russian; 3
Korean; 2
Other; 17.8
Web Users (Language)
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Web Users (Counts)
http://www.internetworldstats.com/stats.htm
Asia; 825.1
Europe; 475.1
North Amer-ica; 266.2
Latin Amer-ica/ Carib-
bean; 204.7
Africa; 110.9
Middle East; 63.2Oceania/ Aus-
tralia; 21.3MillionUsers
Asia: 30 percent of populationNorth America: 75 percent
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US Employment Patterns
http://www.bls.gov/webapps/legacy/cpsatab4.htm
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.
1920 1930 1940 1950 1960 1970 1980 1990 2000 20100
20
40
60
80
100
120
140
U.S. Employment Patterns
ServiceManagementManufacturingFarm
Million W
ork
ers
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Changing Business EnvironmentUS History: Farmer Laborer Management
Year Farm Mfg Mgt Service
192029% 44% 22% 6%
194023 38 30 8
19609 36 43 12
19803 32 52 13
20001 16 66 17
20101 11 68 20
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MIS Organization
Business Operations
TacticalManagement
Strategic
Mgt.
EIS
ESD
SSTr
ansa
ctio
n
Proc
ess
Con
trol
ERP
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Operations, Tactics,Strategy
Sector Operations Tactics Strategy
Production • Machine settings• Worker schedules• Maintenance sch.
• Rearrange work area• Schedule new products• Change inventory method
• New factory• New products• New industry
Accounting • Categorize assets• Assign expenses• Produce reports
• Inventory valuation• Depreciation method• Finance short/long term
• New GL system• Debt vs. equity• International taxes
Marketing • Reward salespeople• Survey customers• Monitor promotions
• Determine pricing• Promotional campaigns• Select marketing media
• 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 employees, ordering supplies.
Transactions, accounting, human resource management, inventory.
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Introduction to Strategy
Risk & RewardCreativityPorter’s External Agents
◦Customers◦Suppliers◦Competitors◦Government
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Strategy/Porter
Rivalry AmongExisting Competitors
Bargaining Powerof Buyers
Bargaining Powerof Suppliers
Threat ofNew Entrants
Threat of SubstituteProducts or Services
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Baxter/Strategy
Supply storeroom
Supply Closets
Hospital
Warehouse
American HospitalSupply
Supplier
Typical Supply Relationship
Supplier
Supplier
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Baxter/Strategy
Supply Closets
Hospital
Warehouse
American HospitalSupply
Supplier
Baxter
Supplier
Supplier
AHS/Baxter Computer Link
Computer
MonitorUsage data
DeliverSupplies as
needed
Accurate usage dataFree space
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An Internet Approach for Hospital Supply
Supply Closets
HospitalSupplier
Baxter
Supplier
Johnson
Supplier
Winning bidder delivers supplies
Internet
Daily AuctionBid1Bid2Bid3 <<purchase
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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)
Weaknesses◦ Effect on company◦ Possible solutions◦ Cost of solution◦ Result and cost of
leaving as-is (do nothing)
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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.
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Technology Toolbox: Choosing a Search EngineGeneral purpose search engines
Google, Bing, YahooMeta-searches across multiple engines
DogpileEncyclopedia
Wikipedia.orgDictionary
Wiktionary.org (or click the research button in IE)Phone book
Switchboard, SuperpagesProducts
Mysimon, CnetGovernment data
CIA.gov (World Factbook)Fedstats.gov (main data source) SEC.gov (EDGAR corporate filings)
Math and Science and some DataWolframalpha
Other (and often better)Your library databases
Consider using multiple search engines because some of them filter responses based on your prior queries.
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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. 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 in the 2010-2011 season?
5. Which celebrities are still alive? Sophia Loren, Harman Killebrew, Phyllis Diller, Nancy Reagan, I.M. Pei.
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Advanced SearchesBoolean 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).
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Wolfram Alpha (Mathematica)http://www.wolframalpha.com/
Search:derivative of 5*x^4 - 13*x^3
Other searches:A dateA townTwo stocks
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Bing (Microsoft)http://www.bing.com
Organizing the results to help find answers and knowledge.
http://www.yippy.comWas: http://www.clusty.com(Vivisimo)
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Technology Toolbox: Government Data
Agency Main Types of Data SiteLabor (BLS) Employment and
priceswww.bls.gov/data
Census Demographic and maps
www.census.gov
Economic Analysis (BEA)
Economic summaries www.bea.gov
Transportation Statistics
Airline, rail, and road www.bts.gov
Justice Statistics Crime and courts bjs.ojp.usdoj.gov Economic Research (Ag)
Food and farm economics
www.ers.usda.gov Health (CDC) Health and
Healthcarewww.cdc.gov/nchs Securities and
Exchange (SEC)Business filings www.sec.gov
(EDGAR)
http://www.fedstats.gov
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Google: Public Data (2009)WolframAlpha
Search:CA unemployment rate
Can use other standard statistics from government databases, including demographics.
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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?
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Cases: Fast Food Industry
199419951996199719981999200020012002200320042005200620072008200920100
5
10
15
20
25
30
Annual Revenue
McDonald'sBurger KingYumStarbucksWendysB
illion $
19941995199619971998199920002001200220032004200520062007200820092010
-0.15
-0.10
-0.05
0.00
0.05
0.10
0.15
0.20
0.25
Net Income / Revenue
McDonald'sBurger KingYumStarbucksWendysR
ati
o