1 Information Systems School of Business Administration Prof. Les Sztandera

Introduction to MIS2 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 MIS3 What is MIS?  Data Five types: numbers, text, images, audio, video  Information Data 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 MIS4 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 MIS5 Why is MIS Important?  MIS affects all areas of business  Manufacturing  Accounting & Finance  Human resources  Marketing  Top management  Performance evaluations—expectations

Introduction to MIS6 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 MIS7 Managers and professionals spend considerable time in meetings. Providing support for teamwork and group decisions is an important issue in MIS. Meetings

Introduction to MIS Making Decisions  Methodology v Ad Hoc Decisions  Decision Process  Collect Data  Identify Problems & Opportunities  Make Choices

Introduction to MIS9 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

Introduction to MIS10 Decentralization Management Team CEO Finance Team Marketing Team Accounting Team HRM Team Sales Team Franchise Strategy Methodology/Rules Customers Corporate Database & Network VP Fin VP Mrkt VP Acct VP HRM VP MIS

Introduction to MIS11 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 MIS12 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 MIS13 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 MIS14 Business Trend Summary Business TrendImplications for Technology Specialization1.Increased demand for technical skills 2.Specialized MIS tools 3.Increased communication Methodology & Franchises1.Reduction of middle management 2.Increased data sharing 3.Increased analysis by top management 4.Computer support for rules 5.Re-engineering Mergers1.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 Workers1.Managing through rules 2.Finding and evaluating workers 3.Coordination and control 4.Personal advancement through technology 5.Security Internationalization1.Communication 2.Product design 3.System development and programming 4.Sales and marketing Service Orientation1.Management jobs are information jobs 2.Customer service requires better information 3.Speed

Introduction to MIS15 MIS Organization Business Operations Tactical Management Strategic Mgt. EIS ES DSS Transaction Process Control

Introduction to MIS16 Operations, Tactics,Strategy

Introduction to MIS17 Decision Levels Decision Level DescriptionExampleType of Information StrategicCompetitive advantage, become a market leader. Long-term outlook. New product that will change the industry. External events, rivals, sales, costs quality, trends. TacticalImproving operations without restructuring the company. New tools to cut costs or improve efficiency. Expenses, schedules, sales, models, forecasts. OperationsDay-to-day actions to keep the company functioning. Scheduling employees, ordering supplies. Transactions, accounting, human resource management, inventory.

Introduction to MIS18 Introduction to Strategy  Risk & Reward  Creativity  Porter’s External Agents  Customers  Suppliers  Competitors  Government

Introduction to MIS19 Strategy/Porter Rivalry Among Existing Competitors Bargaining Power of Buyers Bargaining Power of Suppliers Threat of New Entrants Threat of Substitute Products or Services

Introduction to MIS20 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 MIS21 Cases: Fast Food Industry McDonald’s uses a considerable amount of information technology to maintain consistency, monitor employees, and track sales.

Introduction to MIS22 Cases: McDonald’s Rainforest Café Dave & Busters 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 MIS23 Appendix: Finding Information  Organization  Boolean searches  You know what you are searching for.  You have a vague idea about what you want.

Introduction to MIS24 Appendix: Boolean Searches Truth Table Colombia1,889,871 Medellin37,682 Medellin AND terrorism575 (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 MIS25 Appendix: Search Engines Full text Web searches Altavistawww.altavista.comwww.altavista.com Dogpilewww.dogpile.comwww.dogpile.com Googlewww.google.comwww.google.com Lycoswww.lycos.comwww.lycos.com Searchwww.search.comwww.search.com Webcrawlerwww.webcrawler.comwww.webcrawler.com Wisenutwww.wisenut.comwww.wisenut.com Category Web searches Yahoowww.yahoo.comwww.yahoo.com People and businesses ATTwww.tollfree.att.netwww.tollfree.att.net Superpageswww.superpages.comwww.superpages.com Switchboardwww.switchboard.comwww.switchboard.com

Introduction to MIS26 Appendix: You Know What You Want ITT corporate merger with “white knight”. ITT81,801 ITT corporate merger908 ITT corporate merger “white knight”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 MIS27 Appendix: You Start With a Vague Topic “white knight”47,000 “white knight” corporate5,060 “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