© Ali Nasir Management Information Systems (MIS) Management Information Systems (MIS) Lecture 1: Introduction Muhammad Ali Nasir Fall-2010

© Ali Nasir Contact Details MIS Spring 2012

© Ali Nasir Grading Final50 % Sessionals20 % Project10 % Quizzes10 % Assignments5 % Class Participations5 % Total100 %

© Ali Nasir Management Information Systems (MIS)

© Ali Nasir Management Information Systems A System to convert Data from External and Internal Sources into Information and to communicate that Information, in an appropriate form, to Managers at all levels in all functions to enable them to make timely and effective decisions for planning, directing and controlling the activities for which they are responsible Example REVILIOUS CAR VAR

© Ali Nasir The Role of Managers in Organizations Plan organize coordinate decide control Management Information Systems

© Ali Nasir Link your firm’s value chain to the value chains of your suppliers and customersLink your firm’s value chain to the value chains of your suppliers and customers Directly links consumer behavior back to distribution, production, and supply chains Example: TESCO directly links customer purchases to suppliers in nearly real time. It is the suppliers’ job to ensure products are shipped to the store to replace purchased productsExample: TESCO directly links customer purchases to suppliers in nearly real time. It is the suppliers’ job to ensure products are shipped to the store to replace purchased products Management Information Systems TESCO EXAMPLE Supply Chain Management and Efficient Customer Response Systems Supply Chain Management and Efficient Customer Response Systems:

© Ali Nasir OBJECTIVES Management Information systems support the activities of managers in organizations Management Information systems support various business strategies for competitive advantage Information systems technology is a factor of production, like capital and labor. Management Information Systems

© Ali Nasir Transaction cost theory: Firms seek to economize on the cost of participating in markets (transaction costs).Transaction cost theory: Firms seek to economize on the cost of participating in markets (transaction costs). MIS lowers market transaction costs for firm, making it worthwhile for firms to transact with other firms rather than grow the number of employeesMIS lowers market transaction costs for firm, making it worthwhile for firms to transact with other firms rather than grow the number of employees. Management Information Systems Economic Impacts: (Continued) HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

© Ali Nasir Organizational and Behavioral Impacts MIS Flattens Organizations: Management Information Systems Facilitates flattening of hierarchies Broadens the distribution of timely information Increases the speed of decision making HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

© Ali Nasir Management Information Systems Empowers lower-level employees to make decisions without supervision and increase management efficiency Management span of control (the number of employees supervised by each manager) will also grow HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS MIS Flattens Organizations: (Continued)

© Ali Nasir Flattening Organizations Management Information Systems HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

© Ali Nasir Management Information Systems MIS give both large and small organizations additional flexibility to overcome the limitations posed by their size. Small organizations use information systems to acquire some of the muscle and reach of larger organizations. Increasing Flexibility of Organizations: HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

© Ali Nasir Management Information Systems Large organizations use information technology to achieve some of the agility and responsiveness of small organizations. Customization and personalization: MIS makes it possible to tailor products and services to individuals. TOYOTA HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS Increasing Flexibility of Organizations: (Continued)

© Ali Nasir THE IMPACT OF MIS ON MANAGEMENT DECISION MAKING Organizational structure, hierarchy, specialization, routines, and business processes The organization’s culture and politics Factors to consider while planning a new system: Management Information Systems Implications for the Design and Understanding of MIS

© Ali Nasir THE IMPACT OF MIS ON MANAGEMENT DECISION MAKING The type of organization and its style of leadership Groups affected by the system and the attitudes of workers who will be using the system The kinds of tasks, decisions, and business processes that the information system is designed to assist Management Information Systems Implications for the Design and Understanding of MIS (Continued)

© Ali Nasir THE IMPACT OF MIS ON MANAGEMENT DECISION MAKING Flexibility and multiple options for handling data and evaluating information (CREAM WIZARD) managementCapability to support a variety of management styles, skills, and knowledge Characteristics to be kept in mind while Designing Systems: Management Information Systems

© Ali Nasir THE IMPACT OF MIS ON MANAGEMENT DECISION MAKING Capability to keep track of many alternatives and consequences Sensitivity to the organization’s bureaucratic and political requirements Management Information Systems Characteristics to be kept in mind while Designing Systems: (Continued)

© Ali Nasir MIS become bound up in organizational politics because they influence access to a key resource (FINANCE). They potentially change an organization’s structure, culture, politics, and work. Most common reason for failure of large projects is due to organizational and political resistance to change. Management Information Systems Change Managment: HOW MIS IMPACT ORGANIZATIONS AND BUSINESS FIRMS

© Ali Nasir Management Information Systems