MIS - 1. Introduction
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8/10/2019 MIS - 1. Introduction
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Introduction to MIS
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Outline
How can MIS help you in your job?
What is MIS?
Why is information technology important? Why do all majors need to
study it?
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?
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.
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IT and IS
4
What is Information Technology? Any form of technology used by people to handle
information.
What are Information Systems? Integrated components processing, storing and
disseminating information in an organisation.
Interdisciplinary study of systems that provide information
to users in organisations.
Pyle, I.C. & Illingworth, V. (Eds) (1996). Oxford Dictionary of Computing, 4thEdition. Oxford / New York: Oxford
University Press
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Information and Data
5
Information Clusters of facts meaningful and useful to human beings
in processes such as making decisions
Data
Streams of raw facts representing events such asbusiness transactionsmeaningless without structure
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MIS Components
Backup data
Restart job
Virus scan
HardwareSoftware
People ProceduresData
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Role of Information System
Business Facts
Data
Information
Knowledge
Intelligence
+ procedure
+ context
+ experience
+ wisdom
INTELLIGENT MANAGER
EXECUTIVES
LINE MANAGER
SUPERVISOR
STAFF
1.
HelpCreatingtheIntelligence
2.
HelpEmpo
weringthePe
ople
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Why is MIS Important?
MIS affects all areas of business Manufacturing
Infrastructure
Accounting & Finance
Human resources Marketing
Top management
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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?
0
20
40
60
80
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120
1994-Q1
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Output per Person
http://data.bls.gov:8080/PDQ/outside.jsp?survey=prhttp://data.bls.gov:8080/PDQ/outside.jsp?survey=pr -
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The Three Domains: IS, IT and IM
IS Strategy
Division/function based
Demand oriented
Business focused
IT Strategy
Activity based
Supply oriented
Technology focused
IM Strategy
Organisation based
Relationship oriented
Management focused
Delivery
Applications
Management
What ?
How ?
Wherefore ?
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1
2 3
Making Decisions
Methodology v Ad Hoc Decisions Decision Process
Collect Data
Identify Problems & Opportunities
Make Choices
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Traditional Management
CEO
VP
Finance
VP
Marketing
VP
Accounting
VP
HRM
VP
MIS
Layers of middle managers
Customers
Commands
Analyze data
Condensed reports
Collect
data
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Decentralization
Management Team
CEO
Finance
Team
Marketing
Team
Accounting
Team
HRM
Team
Sales
TeamFranchise
Strategy
Methodology/Rules
Customers
Corporate
Database
&
Network
VP
Fin
VP
Mrkt
VP
Acct
VP
HRM
VP
MIS
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Business Trend Summary
Business Trend Implications for Technology
Specialization 1.Increased demand for technical skills
2.Specialized MIS tools
3.Increased communication
Methodology & Franchises 1.Reduction of middle management
2.Increased data sharing
3.Increased analysis by top management
4.Computer support for rules
5.Re-engineering
Mergers 1.Four or five big firms dominate most industries
2.Need for communication3.Strategic ties to customers and suppliers
Decentralization & Small Business 1.Communication needs
2.Lower cost of management tasks
3.Low maintenance technology
Temporary Workers 1.Managing through rules
2.Finding and evaluating workers
3.Coordination and control
4.Personal advancement through technology
5.Security
Internationalization 1.Communication
2.Product design
3.System development and programming
4.Sales and marketing
Service Orientation 1.Management jobs are information jobs
2.Customer service requires better information
3.Speed
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Changing Business Environment
US History: Farmer Laborer Management
Year Farm Mfg Mgt Service
1920 29% 44% 22% 6%
1940 23 38 30 81960 9 36 43 12
1980 3 32 52 13
2000 1 16 66 17
2010 1 11 68 20
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MIS Organization
Business Operations
Tactical
Management
Strategic
Mgt.
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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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Levels:
Senior managers:make long-range strategicdecisions about products and services
Middle managers:Carry out the programs andplans of senior management
Operational managers:monitor the firms dailyactivities
Management
