Introduction to MIS BUSI 100 Jerry Post Copyright

Outline Ø Ø Ø Ø Ø 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? Ø Information v Ø Management Information System v Ø 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) Introduction to MIS 3

Goal of This Class Ø How can MIS help you do your job? Ø 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. Ø Ø Ø Introduction to MIS 4

Why is MIS Important? Ø MIS affects all areas of business v v v Ø Manufacturing Accounting & Finance Human resources Marketing Top management Performance evaluations—expectations Introduction to MIS 5

What are e-Commerce and e-Business Ø Business-to-Consumer (B 2 C) v Ø Business-to-Business (B 2 B) v Ø Selling retail products to consumers Selling at the wholesale level to other businesses E-Business v v Using Internet technologies to conduct any level of business E-Commerce Intranets Most areas of MIS Introduction to MIS 6

What do Managers do? Ø Traditional v v v Ø Mintzberg v v v Ø Organizing Planning Control Interpersonal Informational Decisional Luthans v v v 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. Introduction to MIS 8

Making Decisions Ø Ø Methodology v Ad Hoc Decisions Decision Process v v v Collect Data Identify Problems & Opportunities Make Choices 1 Introduction to MIS 2 3 9

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 Sales Team Accounting Team Methodology/Rules HRM Team Corporate Database & Network Franchise Customers Introduction to MIS 13

Business Trends Ø Changing business environment v v v v Ø 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 14

Ø Specialization v v v Ø v v Reduction of middle management Increased data sharing Increased analysis by top management Computer support for rules Re-engineering Mergers v v v Ø Increased demand for technical skills Specialized MIS tools Increased communication Methodology & Franchises v Ø Business Trends & Implications Larger companies Need for control and information Economies of scale Decentralization & Small Business v v v Communication needs Lower cost of management tasks Low maintenance technology Introduction to MIS 15

Business Trends & Implications Ø Temporary Workers v v v Ø Internationalization v v Ø Managing through rules Finding and evaluating workers Coordination and control Personal advancement through technology Security Communication Product design System development and programming Sales and marketing Service Orientation v v v Management jobs are information jobs Customer service requires better information Speed Introduction to MIS 16

Changing Business Environment Ø US History: Farmer Laborer Management Year Farm Mfg Mgt 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 Introduction to MIS Service 17

US Employment Patterns Introduction to MIS 18

Internationalization Introduction to MIS 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. Re-engineering 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 Business Trend Summary 1. Management jobs are information jobs 2. Customer service requires better information 3. Speed Introduction to MIS 20

Business Operations Introduction to MIS Pr Tra oc ns es ac s C tion on tro l Tactical Management DS ES S EI Strategic Mgt. S MIS Organization 21

Operations, Tactics, Strategy Introduction to MIS 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. Introduction to MIS 23

Introduction to Strategy Ø Ø Ø Risk & Reward Creativity Porter’s External Agents v v Customers Suppliers Competitors Government Introduction to MIS 24

Baxter/Strategy Typical Supply Relationship Hospital Supply Closets American Hospital Supply Supplier Warehouse Supplier Supply storeroom Supplier Introduction to MIS 25

Baxter/Strategy AHS/Baxter Computer Link Supplier Hospital Monitor Usage data Supply Closets Deliver Supplies as needed Free space American Hospital Supply Computer Baxter Warehouse Supplier Accurate usage data Supplier Introduction to MIS 26

Strategy/Porter Threat of New Entrants Bargaining Power of Suppliers Rivalry Among Existing Competitors Bargaining Power of Buyers Threat of Substitute Products or Services Introduction to MIS 27

Strategy/Organization Ø Strength v v v Source of strength Value of strength How can it be developed? What could undermine it? Development costs Additional benefits (opportunities) Introduction to MIS Ø Weaknesses v v Effect on company Possible solutions Cost of solution Result and cost of leaving as -is (do nothing) 28

Cases: Fast Food Industry Mc. Donald’s uses a considerable amount of information technology to maintain consistency, monitor employees, and track sales. Introduction to MIS 29

Cases: Mc. Donald’s Rainforest Café Dave & 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 30

Appendix: Finding Information Ø Organization v v v Boolean searches You know what you are searching for. You have a vague idea about what you want. Introduction to MIS 31

Appendix: Boolean Searches Truth Table Colombia 1, 889, 871 Medellin 37, 682 Medellin AND terrorism 575 (terror OR bomb OR kidnap) 1, 920, 549 (terrorism OR bombing OR kidnap) 1, 012, 458 Medellin AND (terror OR bomb OR kidnap) 1, 563 Medellin AND (terror OR bomb OR kidnap) AND American AND (dead OR death) 535 Introduction to MIS 32

Full text Web searches Altavista Dogpile Google Lycos Search Webcrawler Wisenut Appendix: Search Engines www. altavista. com www. dogpile. com www. google. com www. lycos. com www. search. com www. webcrawler. com www. wisenut. com Category Web searches Yahoo www. yahoo. com People and businesses ATT www. tollfree. att. net Superpages www. superpages. com Switchboard www. switchboard. com Introduction to MIS 33

Appendix: You Know What You Want ITT corporate merger with “white knight”. ITT 81, 801 ITT corporate merger “white knight” 908 26 Details: Hilton attempted to buy ITT to gain control of their Sheraton Inns. Instead, ITT sold out to a “white knight” (Starwood Lodging) in 1997. Introduction to MIS 34

Appendix: You Start With a Vague Topic “white knight” 47, 000 “white knight” corporate 5, 060 “white knight” corporate NOT (history, Canada, India) 2, 820 “white knight” corporate merger NOT (history, Canada, India) 699 “white knight” corporate merger NOT (history, Canada, India, Germany, foreign) 463 Introduction to MIS 35