1. Week 1: MIS 5001: Management Information Systems David S. McGettigan Adapted from material by Arnold Kurtz, David Schuff, and Paul Weinberg

2. 2 Agenda Introductions IT Fundamentals IT History Gaining Competitive Advantage from IT Next Week

3. Introductions

4. 4 Contact Information  Email (preferred): david.mcgettigan@temple.edu  Work Phone (urgent issues only): 484-865-4418 Work Experience  Pfizer  Wyeth Pharmaceuticals  Exxon Mobil Corporation  DuPont Corporation

5. 5 Syllabus Tentative Schedule Assignments and Weighting Grading Expectations Code of Conduct Class Guidelines

6. 6 Goals of This Class Survey of MIS concepts Primary goal…to understand the role of IT:  The role of technology in solving business problems  The role of technology in supporting the organization  The transformative nature of technology Secondary goal…to understand the “stuff”:  The basics of a technology infrastructure  A vocabulary of technology terms and ideas  To be able to interact with technology professionals

7. Fundamentals

8. 8 What is a System? A set of interacting components that operate together to accomplish a purpose INPUTOUTPUTPROCESS FEEDBACK

9. 9 What is an Information System? PeopleData Hardware IF SSNO <> 9 Char THEN Error END IF Software Networking Business Processes A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization Source: Laudon, K., & Laudon, J. Management Information Systems. 8/e

10. 10 A combination of computers and people that is used to provide information to aid in making decisions and managing a firm  Rely on computer hardware and software  Processing and disseminating information What is a Computer-Based Information System (CBIS)?

11. 11 Why are CBISs Important? Affect all areas of business  Manufacturing  Accounting & Finance  Human resources  Marketing  Top management

12. 12 Data, Information and Intelligence Data: Stream of raw facts representing events  For example, a business transaction Information: Clusters of facts that are meaningful and useful to human beings in processes such as decision-making  For example, retail product placement Information is data that has been put into a meaningful and useful context Intelligence is information that provides competitive advantage

13. History Men make history, and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better. Harry S. Truman (1884 - 1972)

14. 14 MIS is a Relatively New Discipline Started in the mid–1960’s Terminology still being codified  What are the distinctions among these terms Management Information Systems (MIS) Information Technology (IT) Information Systems (IS) Office systems Even the term MIS is fuzzy  narrowly (such as a type of CBIS) or  broadly (as in “MIS Department”)

15. 15 Role of MIS

16. 16 Role of MIS AccountingFinanceSalesHuman Resources Production MIS is the “glue” that ties businesses together… …and uses the technology that makes business work.

17. 17 Historic View of IS TIME PERIODINFORMATION SYSTEMPURPOSE 1950-1960SPEED ACCOUNTING & PAPER PROCESSING TRANSACTION PROCESSING SYSTEM (TPS) 1960s- 1970s MANAGEMENT INFORMATION SYSTEMS (MIS) SPEED AND IMPROVE GENERAL REPORTING 1970s- 1980s DECISION SUPPORT SYSTEMS (DSS), EXECUTIVE SUPPORT SYSTEMS IMPROVE DECISION MAKING AND CONTROL 1998 - ?E-BUSINESS SYSTEMS ENTERPRISE SYSTEMS SURVIVAL OF THE ORGANIZATION COLLABORATIVE SYSTEMS, VISUALIZATION, KNOWLEDGE MANAGEMENT,… CREATE KNOWLEDGE AND COMPETITIVE ADVANTAGE 1990s How would you categorize the current decade?

18. 18 Transformation of the Business Enterprise Flattening Decentralization Flexibility Location independence Transaction and coordination cost pressure Collaborative work and teamwork What do all of these things have in common and what does technology have to do with it?

19. 19 Emergence of the “digital firm” Digitally-enabled relationships with customers, suppliers, and employees Core business processes accomplished via digital networks Digital management of key corporate assets Rapid and automated sensing and responding to environmental changes

20. Gaining Competitive Advantage from IT

21. 21 How Can IT Impact the Bottom Line? There’s really only two things: Reduce Costs Increase profit Increase Revenue Everything else relates to one of these two things

22. 22 Competitive Advantage From IT Barriers to Entry  Additional costs of creating an information system. Distribution Channels  Prevent others from entering the industry. Switching Costs  Consumers incur learning and data transfer costs

23. 23 Competitive Advantage From IT Lower Production Costs  IT to cut costs Product Differentiation  Add new features or create new products with IT Quality Management  Monitoring production lines and analyzing data Value Chain  Expanding forward or back the value chain to find greater profits

24. 24 Search for Innovation: Marketing Frequent buyer databases Point-of-Sale and trends Statistical analysis of data Geographic Information Systems Links to external marketing agencies Multimedia development of promotions

25. 25 Search for Innovation: Sales and Order Entry Sales force automation, hand-held computers Customer workstation access Expert Systems for  product and option selection  configuration and shipping Front-line support  expert systems, e-mail, work groups CRM  shared data with Customer Service

26. 26 Search for Innovation: Post Sale Service Portable computers for service anywhere Databases (e.g., customer service) Location monitoring of service personnel Product internal, automatic diagnostics Expert Systems  diagnostic tools CRM  Shared data with Sales

27. 27 Search for Innovation: Manufacturing Links to customers Links to suppliers Mass customization Robotics Diagnostic Expert Systems Quality monitoring and control

28. 28 Search for Innovation: Logistics and Supply Just-In-Time Inventory and EDI Configuration and design Searching for availability, pricing, networks, et al.

29. 29 IT Strategy Should Address Infrastructure Applications Service Level Targets or Agreements Human Resources (skills, recruitment and retention strategies, et al.). Processes Organizational Structure

30. Next Class: Week #2 Case Study: Google Inc. Porter Five Forces Analysis Value Chain