1

Information Systems

School of Business Administration

Prof. Les Sztandera

Introduction to MIS 2

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 3

What is MIS? Data

Five types: numbers, text, images, audio, video

InformationData 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)

General term used to describe technologies that help produce, manipulate, store, communicate, or disseminate information.

Introduction to MIS 4

Goal of This Class How can MIS help you do your job?

Understand the technology. Alert to privacy and security issues. Use MS Office tools. 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 5

Why is MIS Important? MIS affects all areas of business

Manufacturing Accounting & Finance Human resources Marketing Top management

Performance evaluations—expectations

Introduction to MIS 6

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 Consumer-to-Consumer (C2C)

Auctions, e.g., e-Bay Consumer-to-Business (C2B)

Reverse auctions, e.g., Price Line

E-Business Using Internet technologies to conduct any level of business E-Commerce Intranets Most areas of MIS

Introduction to MIS 7

Managers and professionals spend considerable time in meetings. Providingsupport for teamwork and group decisions is an important issue in MIS.

Meetings

Introduction to MIS 8

12 3

Making Decisions Methodology v Ad Hoc Decisions Decision Process

Collect Data Identify Problems & Opportunities Make Choices

Introduction to MIS 9

Traditional Management

CEO

VPFinance

VPMarketing

VPAccounting

VPHRM

VPMIS

Layers of middle managers

Customers

Commands

Analyze data

Condensed reports

Collectdata

Introduction to MIS 10

Decentralization

Management TeamCEO

FinanceTeam

MarketingTeam

AccountingTeam

HRMTeam

SalesTeam

Franchise

Strategy

Methodology/Rules

Customers

CorporateDatabase

&Network

VPFin

VPMrkt

VPAcct

VPHRM

VPMIS

Introduction to MIS 11

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 12

Business Trends & Implications Specialization

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 13

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 14

Business Trend

Summary

Business 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

Introduction to MIS 15

MIS Organization

Business Operations

TacticalManagement

Strategic

Mgt.

EIS

ESD

SSTr

ansa

ctio

n

Proc

ess

Con

trol

Introduction to MIS 16

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

Introduction to MIS 17

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.

Introduction to MIS 18

Introduction to Strategy Risk & Reward Creativity Porter’s External Agents

Customers Suppliers Competitors Government

Introduction to MIS 19

Strategy/Porter

Rivalry AmongExisting Competitors

Bargaining Powerof Buyers

Bargaining Powerof Suppliers

Threat ofNew Entrants

Threat of SubstituteProducts or Services

Introduction to MIS 20

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)

Introduction to MIS 21

Cases: Fast Food Industry

McDonald’s uses a considerable amount of information technology to maintain consistency, monitor employees, and track sales.

Introduction to MIS 22

Cases: McDonald’s Rainforest CaféDave & Busters

www.mcdonalds.com

www.rainforestcafe.com

Dave and Busters

What is the company’s current status?

What is the Internet strategy?

How does the company use information technology?

What are the prospects for the industry?

Introduction to MIS 23

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 24

Appendix: Boolean Searches

Truth Table

Colombia 1,889,871Medellin 37,682Medellin AND terrorism 575(terror OR bomb OR kidnap) 1,920,549(terrorism OR bombing OR kidnap) 1,012,458Medellin AND (terror OR bomb OR kidnap) 1,563Medellin AND (terror OR bomb OR kidnap)

AND AmericanAND (dead OR death) 535

Introduction to MIS 25

Appendix: Search EnginesFull text Web searchesAltavista www.altavista.comDogpile www.dogpile.comGoogle www.google.comLycos www.lycos.comSearch www.search.comWebcrawler www.webcrawler.comWisenut www.wisenut.com

Category Web searchesYahoo www.yahoo.com

People and businessesATT www.tollfree.att.netSuperpages www.superpages.comSwitchboard www.switchboard.com

Introduction to MIS 26

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

Introduction to MIS 27

Appendix: You Start With a Vague Topic

“white knight” 47,000

“white knight” corporate 5,060

“white knight” corporateNOT (history, Canada, India) 2,820

“white knight” corporate mergerNOT (history, Canada, India) 699

“white knight” corporate mergerNOT (history, Canada, India, Germany, foreign) 463