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INTRODUCTION TO
MANAGEMENT INFORMATION SYSTEMMIS Management Information System
Ms. Aileen P. de Leon, MIT, MOS
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Emergence of DIGITAL AGE
INTERNET boom
I.T. Generation
E-COMMERCE
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E-COMMERCE
Business MIS
SUCCESS
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Business Considerations:
1. Can this technology help streamline and lowerthe cost of our business processes while not
sacrificing the quality we deliver to our customers?
2. Can this technology enable us to reach largermarkets of customers, understand our customers
better so we can deliver more tailored products and
services to them, and/or help us design and develop
products that are better than the competitions?
3. Can this technology enable us to innovate our
business operations and move into completely new
markets?
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Key technologies to support business processes
Important BusinessProcesses
Key Business
Strategies
Industry Pressures
AndCompetition
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Steps in introducing technology in the business:
1. Assess the state of competition and
industry pressures affecting your organization.
2. Determine business strategies critical to
successfully address those competitive and
industry pressures.
3. Identify important business process that
support your chosen business strategies.
4. Finally, align technology tools with those
important business processes.
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MANAGEMENT INFORMATION SYSTEM
deals with
planning
management
Use of technology toolsand
Why?
Helppeople perform all tasks
related to information processing
and management
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MIS deals withINFORMATION AS A KEY RESOURCE
DATARaw facts that describe a particular
phenomenon such as the current temperature, price of
movie, your date of birth.
INFORMATION
Data that have a particular meaning within a
specific context.
BUSINESS INTELLIGENCE
Collective information that gives you the ability to
make effective, important, and often strategic business
decisions.
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Defining Information Quality
Timeliness
Location
Form
Validity
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Information Flow
1. UPWARD describes the current state ofthe organization based on its daily
transactions.
Information Granularityrefers to the
extent of detail within the information.
2. DOWNWARD strategies, goals, and
directives that originate at a higher level arepassed to lower levels in downward
information flows.
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3. HORIZONTAL information flow between
functional business units and work teams.Goal: Eliminate the old dilemma of the
right hand not knowing what the
left hand is doing.
4. OUTWARD/INWARD information is
communicated from and to customers,suppliers, distributors, and other partners for
the purpose of doing business.
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Another Organizational Perspective on Information describes
INTERNAL INFORMATION describesspecific operational aspects of an
organization.
EXTERNAL INFORMATION describesthe environment surrounding the organization.
OBJECTIVE INFORMATION quantifiably
describes something that is known.
SUBJECTIVE INFORMATION attempts
to describe something that is unknown.
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ETHICAL RESPONSIBILITIES
ETHICS are the principles and
standards that guide our behavior toward
other people.
I II
III IV
Legal Illegal
Unethical
Ethical
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PORTERS FIVE FORCES MODELMIS Management Information System
Ms. Aileen P. de Leon, MIT, MOS
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Rivalry amongExisting
Competitors
Threat of New Entrants
BargainingPower
of Suppliers
BargainingPower of
Buyers
Threat of Substitute
Products or Services
Porters Five Forces Model
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Five Forces Model
- helps business people understand the
relative attractiveness of an industry and the
industrys competitive pressures in terms of:
1. Buying Power2. Supplier Power
3. Threat of Substitute Products or
Services4. Threat of New Entrants
5. Rivalry among Existing Competitors
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BUYER POWER
High: Buyers have many choices fromwhom to buy, and low when their choices
are few.
Competitive Advantage: Providing a
product or service in a way that customers
value more than what the competition is
able to do.
First-mover Advantage: Significant impact
on gaining market share by being the first
to market with a competitive advantage.
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SUPPLIER POWER
High: Buyers have few choices from whomto buy, and low when their choices are
many.
Your
Suppliers
Your
Customers
Your
Organizations
You want supplier power to be low here.You want buyer power to be high here.
You want supplier power to be high here.You want buyer power to be low here.
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THREAT OF NEW ENTRANTS
High: It is easy for new competitors toenter a market, and low when there are
significant entry barriers to entering a
market.
EntryBarrier: Product or service feature
that customers have come to expect from
organizations in a particular industry and
that must be offered by an enteringorganization to compete and survive.
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RIVALRY AMONG EXISTING COMPETITORS
High: When competition is fierce in amarket, and low when competition is more
complacent.
EntryBarrier: Product or service feature
that customers have come to expect from
organizations in a particular industry and
that must be offered by an enteringorganization to compete and survive.
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PORTERS THREE GENERIC STRATEGIES:
BUSINESS STRATEGIES
MIS Management Information System
Ms. Aileen P. de Leon, MIT, MOS
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FocusStrategy
Differentiation
Strategy
Overall
Cost
Leadership
Narrow market
scope
Broad market
scope
Unique
Competency
Low-cost
Competency
Three Generic Strategies
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OVERALL COST LEADERSHIP
Offering the same or better qualityproduct or service at a price that is
less than what any of the competition
is able to do.Loss Leader: Product sold at or below cost
to entice customers into a store in the hope
that they will also buy more profitableproducts.
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DIFFERENTIATION
Offering a product or
service that is perceived as
being unique in themarketplace.
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FOCUS
Strategy is usually defined asfocusing on offering products and
services
(1) To a particular market segmentor buyer group
(2) Within a segment of a product
line
(3) To a specific geographic
market
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VALUE CHAIN ANALYSISMIS Management Information System
Ms. Aileen P. de Leon, MIT, MOS
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COMPONENTS OF VALUE CHAIN
Primary Value Processes
Inbound Logistics receiving and warehousing
raw materials and distributing those raw materials to
manufacturing as needed.
Operations processing raw materials intofinished products and services.
Outbound Logistics warehousing and
distributing finished products and services.
Marketing and Sales identifying customer
needs and generating sales.
Service supporting customers after the sale of
products and services.
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Support Value Processes
Firm Infrastructure Human Resource
Management Technology Development
Procurement