The document is an introduction chapter that discusses what MIS is, the importance of information technology for business, and provides an outline of topics that will be covered in the course including technology, networks, databases, security, e-commerce, management, decision making, strategy, and the role of MIS in organizations and society. It seeks to help students understand how MIS can help them in their jobs and analyze business problems.

1. Introduction to MIS
Chapter 1
Introduction
Jerry Post
Technology Toolbox: Search Engines
Technology Toolbox: Searching
Cases: Fast Food

2. Outline
 How can MIS help you in your job?
 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?
 How is business changing? What will managers need to know
in the future?
 Does technology alone improve a business?
 How do you break businesses into smaller pieces to analyze
them?
 Why are strategic decisions so difficult? How do you begin
searching for competitive advantage?

3. What is MIS?
 Information
◦ Data that has been put into a meaningful and
useful context. Usually to help make a
decision.
 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)
o processing, and distribution of data using
computer hardware and software,
telecommunications, and digital electronics.

4. MIS Components
Hardware
Software
Backup data
Restart job
Virus scan
People Data
Procedures

5. Goal of This Course
 How can MIS help you do 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.

6. Why is MIS Important?
 MIS affects all areas of business
◦ Manufacturing
◦ Accounting & Finance
◦ Human resources
◦ Marketing
◦ Top management
 Performance evaluations—
expectations

7. Chapters/Topics
1. Introduction 8. Teamwork
2. Technology 9. Decisions
Foundations 10. Strategy
3. Networks 11. Entrepreneurship
4. Databases 12. Systems
5. Security 13. MIS Organization
6. Transactions and 14. Society
ERP
7. eCommerce

8. Productivity Growth: Output per Worker
Output per Person
120
100
80
60
40
20
0
1994-Q1
1994-Q3
1995-Q1
1995-Q3
1996-Q1
1996-Q3
1997-Q1
1997-Q3
1998-Q1
1998-Q3
1999-Q1
1999-Q3
2000-Q1
2000-Q3
2001-Q1
2001-Q3
2002-Q1
2002-Q3
2003-Q1
2003-Q3
2004-Q1
2004-Q3
2005-Q1
2005-Q3
2006-Q1
2006-Q3
2007-Q1
2007-Q3
2008-Q1
2008-Q3
2009-Q1
2009-Q3
2010-Q1
2010-Q3
1. Managers need to use technology to increase productivity to be competitive.
2. With a 2.9% growth rate, in a decade, productivity increases 34%.
Companies can produce the same output with half the workers. Will you be
one of the workers replaced?
http://data.bls.gov:8080/PDQ/outside.jsp?survey=pr

9. 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
 E-Business
◦ Using Internet technologies to conduct any
level of business
◦ E-Commerce
◦ Intranets
◦ Most areas of MIS

10. Retail E-Commerce Statistics
Retail
U.S. Retail and E-Commerce Sales
Ecommerce
1200 60
1000 50
800 40
Retail Billtion $
600 30
400 20
200 10
0 0
In 2010 EC was about 5 percent of total.
Remove autos and auto parts and EC is about 6 percent.
Notice the seasonal peak in the fourth quarter.
Notice the EC is growing faster than total retail sales.
http://www.census.gov/retail/index.html#ecommerce

11. Technology Excesses?
Typical Price Declines
• You can buy a new
model item when it is
800 released or wait for the
700 price to drop.
600 • You can keep buying
500 new releases or
price
400
continue to use an ―old‖
300
model.
200
• Answers depend on
100
your needs, the
0
1 3 5 7 9 11 13 15 17 features offered, and
time the reliability of the old
items.
• Plus the bling factor.

12. What do Managers do?
 Traditional
◦ Organizing
◦ Planning
◦ Control
 Mintzberg (Henry Mintzberg – Canadian Mgmt
Writer)
◦ Interpersonal
◦ Informational
◦ Decisional
 Luthans
◦ Traditional 32%
◦ Formal Communication 29%
◦ Human Resource Mgmt 20%
◦ Networking 19%

13. Meetings
Managers and professionals spend considerable time in meetings. Providing
support for teamwork and group decisions is an important issues in MIS.

14. Making Decisions
 Methodology v Ad Hoc Decisions
 Decision Process
◦ Collect Data
◦ Identify Problems & Opportunities
◦ Make Choices
2 3
1

15. Traditional Management
CEO Condensed reports
Commands
VP VP VP VP VP
Finance Marketing Accounting HRM MIS
Analyze data
Layers of middle managers
Collect
data
Customers

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

17. 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

18. Business Trends & Implications
 Specialization
◦ Increased demand for technical skills
◦ Specialized MIS tools
◦ Increased communication
◦ Emphasis on Teamwork
 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

19. Business Trend Summary
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 1.Management jobs are information jobs
2.Customer service requires better information
3.Speed

20. 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

21. Internationalization
U.S. Trade Imports/GDP
Exports/GDP
0.2
0.18
0.16
0.14
0.12
Percent
0.1
0.08
0.06
0.04
0.02
0
Year
http://www.bea.gov/national/nipaweb/Index.asp

22. International Web Browsers
Web Users (Language)
Other, 17.8
Korean, 2
English, 27.
Russian, 3 3
French, 3
Arabic, 3.3
German, 3. Chinese, 22
8 .6
Portuguese,
4.2
Japanese, 5 Spanish, 7.
8
http://www.internetworldstats.com/stats7.htm

23. Web Users (Counts)
Middle
East, 63.2 Oceania/
Australia, 2
Latin Africa, 110. 1.3
America/ 9
Caribbean, Million
204.7 Users
Asia, 825.1
North
America, 26
6.2
Europe, 47
5.1
Asia: 30 percent of population
North America: 75 percent
http://www.internetworldstats.com/stats.htm

24. US Employment Patterns
U.S. Employment Patterns
140
120
100
Million Workers
80 Service
Management
60
Manufacturing
40 Farm
20
0
1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Categories and definitions have changed over time.
Management includes professional, sales, and administrative.
The key point is that most jobs are information-processing jobs.
But the numbers measure number of workers, not the value or sales.
http://www.bls.gov/webapps/legacy/cpsatab4.htm

25. Changing Business Environment
 US History: Farmer Laborer Management
Year Farm Mfg Mgt Service
1920 29% 44% 22% 6%
1940 23 38 30 8
1960 9 36 43 12
1980 3 32 52 13
2000 1 16 66 17
2010 1 11 68 20

26. MIS Organization
Strategic
Mgt.
Tactical
Management
Business Operations

27. Operations, Tactics,Strategy
S e c to r O p e ratio n s T a c tic s S tra te g y
P ro d u c tio n • M a ch in e se ttin g s • R e a rra ng e w o rk a re a • N e w fa cto ry
• W orke r sch e d u le s • S ch e d u le n e w p ro d u cts • N e w p ro d u cts
• M a in te n a n ce sch . • C h a n g e in ve n to ry m eth o d • N e w in d u stry
A c c o u n tin g • C a teg o rize a ssets • In ve n to ry va lu a tio n • N e w G L syste m
• A ssig n e xp e n se s • D e p re cia tio n m e th od • D e b t vs. eq u ity
• P ro d u ce re p orts • F in a n ce sh o rt/lo n g term • Inte rn atio n a l ta xe s
M a rk e tin g • R e w a rd sa le sp e o p le • D e te rm in e pricin g • M o n ito r co m p etito rs
• S u rve y cu sto m ers • P ro m otio n a l cam p a ig n s • N e w p ro d u cts
• M o n ito r p ro m otio n s • S e le ct m a rk eting m e d ia • N e w m a rk e ts

28. Decision Levels
Decision Description Example Type of Information
Level
Strategic Competitive advantage, New product that External events, rivals,
become a market leader. will change the sales, costs quality,
Long-term outlook. industry. trends.
Tactical Improving operations New tools to cut Expenses, schedules,
without restructuring the costs or improve sales, models,
company. efficiency. forecasts.
Operations Day-to-day actions to Scheduling Transactions,
keep the company employees, accounting, human
functioning. ordering supplies. resource management,
inventory.

29. Introduction to Strategy
 Risk & Reward
 Creativity
 Porter’s External Agents
◦ Customers
◦ Suppliers
◦ Competitors
◦ Government

30. Strategy/Porter
Threat of
New Entrants
Bargaining Power Rivalry Among Bargaining Power
of Suppliers Existing Competitors of Buyers
Threat of Substitute
Products or Services

31. Baxter/Strategy
Typical Supply Relationship
Hospital
American Hospital Supplier
Supply
Supply
Closets Warehouse
Supplier
Supply storeroom
Supplier

32. Baxter/Strategy
AHS/Baxter Computer Link
Supplier
Hospital
American Hospital
Monitor
Supply Baxter
Usage data
Supply Closets Computer
Deliver Warehouse
Supplies as
needed
Supplier
Free space
Accurate usage data
Supplier

33. An Internet Approach for Hospital
Supply Daily Auction
Bid1
Bid2 Supplier
Hospital
Bid3 <<purchase
Baxter
Supply Closets
Internet
Supplier
Johnson
Winning bidder
delivers supplies
Supplier

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

35. Cloud Computing
 As consumers and students, you are familiar with Web-
based services.
◦ E-commerce, sales
◦ News, entertainment
◦ Communications
◦ Social networks and interaction
 Businesses can use the same approaches and run
software and data on Web servers with applications on
laptops, tablets, and cell phones to access this data.
◦ Cloud computing consists of running the main
servers, data, and business logic on Web-based servers in
the Internet cloud.
◦ Each chapter explores impacts and implications for
business of moving more operations into a Web-based
system.

36. Technology Toolbox: Choosing a Search
Engine purpose search engines
General Consider using multiple
Google, Bing, Yahoo search engines because
Meta-searches across multiple engines some of them filter
Dogpile responses based on your
Encyclopedia prior queries.
Wikipedia.org
Dictionary
Wiktionary.org (or click the research button in IE)
Phone book
Switchboard, Superpages
Products
Mysimon, Cnet
Government data
CIA.gov (World Factbook)
Fedstats.gov (main data source)
SEC.gov (EDGAR corporate filings)
Math and Science and some Data
Wolframalpha
Other (and often better)
Your library databases

37. Quick Quiz: Search Engines
Where would you begin your search to answer the following
questions?
1. Under the proposed IAU definition, which planetoid falls between
Mars and Jupiter?
2. By revenue, which was the largest company in the world in 2010?
3. Find the best price on a 512 GB SSD.
4. Which U.S. professional basketball team had the fewest wins in
the 2010-2011 season?
5. Which celebrities are still alive? Sophia Loren, Harman Killebrew,
Phyllis Diller, Nancy Reagan, I.M. Pei.

38. Advanced Searches
Boolean searches: And/Or/Not
Phrases: ―white knight‖
―white knight‖ 126,000
―white knight‖ corporate 12,000
―white knight‖ corporate
–hackers –groups –Australia –resources 5,080
―white knight‖ corporate merger
–hackers –groups –resources 701
―white knight‖ corporate merger
–hackers –groups –resources –history –Australia 655
You can also search by date, domain (company), linked
pages, and even reading level (with Google).

39. Wolfram Alpha (Mathematica)
http://www.wolframalpha.com/
Search:
derivative of 5*x^4 - 13*x^3
Other searches:
A date
A town
Two stocks

40. Bing (Microsoft)
http://www.bing.com
Organizing the
results to help find
answers and
knowledge.
http://www.yippy.com
Was: http://www.clusty.com
(Vivisimo)

41. Technology Toolbox: Government
Data
Agency Main Types of Data Site
Labor (BLS) Employment and prices www.bls.gov/data
Census Demographic and maps www.census.gov
Economic Analysis (BEA) Economic summaries www.bea.gov
Transportation Statistics Airline, rail, and road www.bts.gov
Justice Statistics Crime and courts bjs.ojp.usdoj.gov
Economic Research (Ag) Food and farm www.ers.usda.gov
economics
Health (CDC) Health and Healthcare www.cdc.gov/nchs
Securities and Exchange Business filings www.sec.gov
(SEC) (EDGAR)
http://www.fedstats.gov

42. Google: Public Data (2009)
WolframAlpha
Search:
CA unemployment rate
Can use other
standard statistics
from government
databases,
including
demographics.

43. Quick Quiz: Government Data
1. What was the U.S. monthly unemployment rate for
the last year?
2. What is the current population of the U.S.?
3. What was the value of the U.S. trade deficit for the
last year?

44. Cases: Fast Food Industry
Annual Revenue
30
25
20 McDonald's
Billion $
Burger King
15
Yum
10 Starbucks
Wendys
5
0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net Income / Revenue
0.25
0.20
0.15
McDonald's
0.10
Burger King
Ratio
0.05 Yum
Starbucks
0.00
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Wendys
-0.05
-0.10
-0.15