In this chapter, the following content will be discussed: What is MIS? Why is information technology important? Why do all business majors need to study it? What are e-commerce and e-business? Is e-business increasing or decreasing? Do you know what a manager does? Do you know what a successful manager will do in the future?,...
Introduction to MIS BUSI 100 Jerry Post Copyright © 1998-2002 by Jerry Post Introduction to MIS Outline What is MIS? Why MIS is Important? What are e-commerce and e-business? What 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 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) Introduction to MIS Goal of This Class How can MIS help you 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 Introduction to MIS Why is MIS Important? MIS affects all areas of business Manufacturing Accounting & Finance Human resources Marketing Top management Performance evaluations—expectations Introduction to MIS 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 Introduction to MIS What Managers do? Traditional Mintzberg Interpersonal Informational Decisional Luthans Organizing Planning Control Traditional Formal Communication Networking Introduction to MIS 50% 30% 20% 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 Making Decisions Methodology v Ad Hoc Decisions Decision Process Collect Data Identify Problems & Opportunities Make Choices Introduction to MIS Importance of MIS Computerworld 1993* IS budget as percent of revenue % Utilities Trans Sales Pharm Petroleum Manuf Industrial Financial Aerospace Consumer *1997-2000 data is distorted by Y2k work Introduction to MIS 10 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 Introduction to MIS 23 Introduction to Strategy Risk & Reward Creativity Porter’s External Agents Customers Suppliers Competitors Government Introduction to MIS 24 Baxter/Strategy Typical Supply Relationship Hospital American Hospital Supply Supply Closets 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 Rivalry Among Existing Competitors Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products or Services Introduction to MIS 27 Strategy/Organization Strength Source of strength Value of strength How can it be developed? What could undermine it? Development costs Additional benefits (opportunities) Introduction to MIS Weaknesses Effect on company Possible solutions Cost of solution Result and cost of leaving as-is (do nothing) 28 Cases: Fast Food Industry McDonald’s uses a considerable amount of information technology to maintain consistency, monitor employees, and track sales Introduction to MIS 29 Cases: McDonald’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 Organization 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 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 ... billion 12 00 10 00 Imports 800 Exports 600 400 200 Introduction to MIS 2000 19 95 19 90 19 85 19 80 19 75 19 70 19 65 19 60 19 55 19 50 19 45 19 40 19 35 19 30 19 25 19 20 19 Business Trend Implications for Technology. .. wo rkers 14 0 12 0 Service 10 0 Management 80 Manufacturing 60 Farm 40 20 19 20 19 30 19 40 19 50 19 60 19 70 19 80 19 90 2000 Introduction to MIS 18 Internationalization US Merchandise Trade 14 00 $ billion... Laborer Management Year Farm Mfg Mgt Service 19 20 29% 44% 22% 6% 19 40 23 38 30 19 60 36 43 12 19 80 32 52 13 2000 25 59 14 Introduction to MIS 17 US Employment Patterns US Employment Patterns 16 0