My MIS Management

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MIS in ActionMIS in Actiony In 2005, Wal-Mart attained more than $285 billion in sales ± nearly one-

tenth of retail sales in the U.S. ± in large part because of its Retail Link

System, which digitally links its suppliers to every one of Wal-Mart¶s 5, 289

stores worldwide. As soon as a customer purchases an item, the suppliermonitoring the item knows to ship a replacement to the shelf.

y Every time a dress shirt is bought at a JCPenny store in the U.S., the record

of the sale appears immediately on computers in Hong Kong at its supplier,

TAL Apparel Ltd., a large contract manufacturer that produces one in eight

dress shirts sold in the U.S. TAL decides how many replacement shirts to

make, and in what styles, colors, and sizes, and then sends the shirts to each

JCPenny store. JCPenny¶s shirt inventory is near zero, as is the cost of

storing it.

2



y Information and Technology ± Essential to Business!

y Think of the airline industry

y Search for current low prices

y Reservations

y Frequent flier programs

y Communications

y

Partnerships (EX: American Airlines Plus Citibank)y Information and Technology enables much of this

experience.

3

MIS in ActionMIS in Action



Human Vs Computers



MIS 715 Eaton Fall 2001 5

Why Study IS?y Information Systems Careers

y Systems analyst, specialist in enterprise resource planning (ERP), database

administrator, telecommunications specialist, consulting, etc.

y Knowledge Workersy Managers and non-managers

y Employers seek computer-literate professionals who know how to use

information technology.

y

Computer Literacy Replacing Traditional Literacyy Key to full participation in western society



y What is the role of information systems in today¶s competitive business environment?

y What exactly is an information system? What do managers need to

know about information systems?

y How are information systems transforming organizations andmanagement?

y

How has theInternet and

Internet technology transformed business?

y What are the major management challenges to building and usinginformation systems?

What will I lear n?



1. Design competitive and effective systems

2. Understand system requirements of global business

environment

3. Create information architecture that supportsorganization¶s goal

4. Determine business value of information systems

5. Design systems people can control, understand and usein a socially, ethically responsible manner

M anag ement C halleng es



What is IS?

A set f i terrel te c e ts t t c llect ( r retrie e),

r cess, st re, istri te i f r ti t s rt ecisi

i c tr l i r iz ti .



yData: Streams of raw facts representing events such

as business transactions

y Information: Clusters of facts that are meaningful

and useful to human beings in the processes such as

making decisions

Data Vs Information



Data and Information



INPUT OUTPUTPROCESS

FEEDBACK

Activities in an Inf r ation S stem



Fun tions of an Information Syst m

Figure 1-3




Data Manipulation

yExample: customer survey

y Reading through data collected from a

customer survey with questions in various

categories would be time-consuming and

not very helpful.y When manipulated, the surveys may

provide useful information.



y

Generating Informationy Computer-based ISs take data as raw material, process it,

and produce information as output.

Inp t-pr ocess-o tp t



Data, Information, and Systems

Figure 1.2 Chara ter istics of usef ul information



Definitions

y What Is a System?

y System: A set of components that work together to achieve acommon goal

y Subsystem: One part of a system where the products of morethan one system are combined to reach an ultimate goal

y Closed system: Stand-alone system that has no contact withother systems

y Open system: System that interfaces with other systems



Fi r e .6 omponents of an inf or mation s stem

Components of IS




Stages of Data Processing

y The Four Stages of Data Processing

y Input: Data is collected and entered into computer.

y Data processing: Data is manipulated into information using

mathematical, statistical, and other tools.

y Output: Information is displayed or presented.

y Storage: Data and information are maintained for later use.



Business Processes

Information Processing Acti ities

Business Value

Management Acti ities

Su lyChainManagement

Enterpr iseManagement

Customer Management

KnowledgeManagement

DataCollectionandStorage

TransformationIntoBusinessSystems

Dissemination

Planning Coor dinating Controlling Modeling andDecision Making

FirmProf itability

and

StrategicPosition



y Sales and marketing

yManufacturing

y Finance

y Accounting

y Human resources

Major Business Functions



Key Elements:

y People:Managers, knowledge workers, data

workers, production or service workers

y Structure: Organization chart , groups of specialists,

products, geography

Management Information Systems 8/eManagement Information Systems 8/eChapter 1 Managing the Digital FirmChapter 1 Managing the Digital Firm

Or ganizations

WHY INFORMATION

SYSTEMS?



y Operating procedures: Standard operating procedures

(SOP, rules for action)

y Politics: Power to persuade, get things done

y Culture: Customs of behavior

Or ganizations



Levels:

y Senior managers: make long-range strategic decisionsabout products and services

y Middle managers: Carry out the programs and plans of senior management

y Operational managers: monitor the firm¶s daily activities


Management

WHY INFORMATION

SYSTEMS?



Tools managers use to cope with change

y Hardware: Physical equipment

y Software: Detailed preprogrammed instructions

y Storage: Physical media for

storing data and the software


Computer Technology

WHY INFORMATION

SYSTEMS?




CONTEMPOR ARY APPRO ACHES TO INFORMATION

SYSTEMS

Figure 1-

Technical

Approaches

ehavioral Approaches

Management

Science

Operations

Resear ch

Sociology

Economics

Computer

Science

Psychology



y Communicate and collaborate

y Access information

y Participate in discussions

y Supply information

y Find entertainment

y Exchange business transactions


TOW ARD THE DIGIT AL FIRM

What You Can Do on the Internet?



y Flattening organizations

y Separating work from location

y Reorganizing work-flows

y Increasing flexibility

y Redefining organizational boundaries



New Options for Or ganizational Design




Figure 1-10


Flattening Or ganizations & Information Systems




Figure 1-11

Redesigned Work Flow For Insurance Underwr iting




y Electronic commerce

y Electronic business

y Digital market: Information systems links, buyers

and sellers to exchange information, products,

services, payments



The Digital Firm





Customers On-line marketing On-line sales Built-to-or der products Customer service Sales for ce automation

Suppliers Procurement Supply chain management

Business par tners Joint design Outsour cing

Remote off ices and work groups Communicate plans and policies Group colla oration Electronic communication

Scheduling

Factor ies Just-in-time production Continuous inventor y

replenishment Production planning

ELECTRONIC BUSINESS

Electronic Commer ce

THE EMERGING DIGIT AL FIRM

Figure 1-12



y Internet links buyers, sellers

y Lower transaction costs

y Goods and services advertised, bought, exchangedworldwide

y Business-to-business transactions increasing



Electronic Commer ce



y Electronic Business: Executing all the firm¶s business processes with Internet technology

y Intranet: Business builds private, secure network based on Internet technology

y Extranet: Extension of intranet to authorized

external users


Electronic Business


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My MIS Management

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