Lecture Management information systems: Solving business problems with information technology – Chapter 1
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Introduction to MIS
BUSI 100
Jerry Post
Copyright © 1998-2002 by Jerry Post
Introduction to MIS
1
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
2
What is MIS?
Information
Management Information System
Data that has been put into a meaningful and useful context.
A combination of computers and people that is used to
provide information to aid in making decisions and managing
a firm.
Information Technology (IT)
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3
Goal of This Class
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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4
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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5
What are e-Commerce and e-Business
Business-to-Consumer (B2C)
Business-to-Business (B2B)
Selling at the wholesale level to other businesses
E-Business
Selling retail products to consumers
Using Internet technologies to conduct any level of business
E-Commerce
Intranets
Most areas of MIS
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6
What do Managers do?
Traditional
Mintzberg
Interpersonal
Informational
Decisional
Luthans
Organizing
Planning
Control
Traditional
Formal Communication
Networking
Introduction to MIS
50%
30%
20%
7
Meetings
Managers and professionals spend considerable time in meetings. Providing
support for teamwork and group decisions is an important issues in MIS.
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8
Making Decisions
Methodology v Ad Hoc Decisions
Decision Process
Collect Data
Identify Problems & Opportunities
Make Choices
2
1
Introduction to MIS
3
9
Importance of MIS
Computerworld 1993*
IS budget as percent of revenue
6
5
%
4
3
2
Utilities
Trans.
Sales
Pharm.
Petroleum
Manuf.
Industrial
Financial
Aerospace
0
Consumer
1
*1997-2000 data is distorted by Y2k work.
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10
Computerworld 1993
Everyone Uses Computers
Percent of employees with PC/terminal
100
90
80
70
60
50
40
Introduction to MIS
Utilities
Trans.
Sales
Pharm.
Petroleum
Manuf.
Industrial
Financial
Aerospace
10
0
Consumer
30
20
11
Traditional Management
CEO
Commands
VP
Finance
VP
Marketing
VP
Accounting
Condensed reports
VP
HRM
VP
MIS
Analyze data
Layers of middle managers
Customers
Introduction to MIS
Collect
data
12
Decentralization
Management Team
CEO
VP
Fin
VP
Mrkt
VP
Acct
VP
HRM
VP
MIS
Strategy
Finance
Team
Marketing
Team
Accounting
Team
Methodology/Rules
Sales
Team
HRM
Team
Corporate
Database
&
Network
Franchise
Customers
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13
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
Methodology & Franchises
Larger companies
Need for control and information
Economies of scale
Decentralization & Small Business
Reduction of middle management
Increased data sharing
Increased analysis by top management
Computer support for rules
Re-engineering
Mergers
Increased demand for technical skills
Specialized MIS tools
Increased communication
Communication needs
Lower cost of management tasks
Low maintenance technology
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Business Trends & Implications
Temporary Workers
Internationalization
Communication
Product design
System development and programming
Sales and marketing
Service Orientation
Managing through rules
Finding and evaluating workers
Coordination and control
Personal advancement through technology
Security
Management jobs are information jobs
Customer service requires better information
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
8
1960
9
36
43
12
1980
3
32
52
13
2000
3
25
59
14
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US Employment Patterns
US Employment Patterns
160
millio ns o f wo rkers
140
120
Service
100
Management
80
Manufacturing
60
Farm
40
20
0
1920 1930 1940 1950 1960 1970 1980 1990 2000
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Internationalization
US Merchandise Trade
1400
$ billion
1200
1000
Imports
800
Exports
600
400
200
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2000
1995
1990
1985
1980
1975
1970
1965
1960
1955
1950
1945
1940
1935
1930
1925
1920
0
19
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.Reengineering
Mergers
1.Four or five big firms dominate most industries
2.Need for communication
3.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
Introduction to MIS
Business
Trend
Summary
20
Business Operations
Introduction to MIS
Pr Tra
o c ns
es a c
s C tion
on
tro
l
Tactical
Management
DS ES
S
Strategic
Mgt.
EI
S
MIS Organization
21
Operations, Tactics,Strategy
Sector
Operations
Production
• Machine settings
• Worker schedules
• Maintenance sch.
• Categorize assets
• Assign expenses
• Produce reports
• Reward salespeople
• Survey customers
• Monitor promotions
Accounting
Marketing
Introduction to MIS
Tactics
• Rearrange work area
• Schedule new products
• Change inventory method
• Inventory valuation
• Depreciation method
• Finance short/long term
• Determine pricing
• Promotional campaigns
• Select marketing media
Strategy
• New factory
• New products
• New industry
• New GL system
• Debt vs. equity
• International taxes
• Monitor competitors
• New products
• New markets
22
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
Transactions,
employees,
accounting, human
ordering supplies. resource management,
inventory.
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Introduction to Strategy
Risk & Reward
Creativity
Porter’s External Agents
Customers
Suppliers
Competitors
Government
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Baxter/Strategy
Typical Supply Relationship
Hospital
American Hospital
Supply
Supply
Closets
Supplier
Warehouse
Supplier
Supply storeroom
Supplier
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