management information systems last update 2013.09.09 1.1.0 copyright kenneth m. chipps ph.d. 2013 ...

Management Information Systems

Last Update 2013.09.09

1.1.0

Copyright Kenneth M. Chipps Ph.D. 2013 www.chipps.com

1

What is MIS

• What is a MIS• The Texas A&M Mays Business School

defines it this way on their web site– MIS - Management Information Systems is

the study of people, technology, organizations and the relationships among them

– MIS professionals help firms realize maximum benefit from investment in personnel, equipment, and business processes

Copyright Kenneth M. Chipps Ph.D. 2013 www.chipps.com 2

What is MIS

– Businesses use information systems at all levels of operation to collect, process and store data

– Management aggregates and disseminates this data in the form of information needed to carry out the daily operations of business

– Everyone who works in business, from someone who pays the bills to the person who makes employment decisions, uses information systems


What is MIS

– A car dealership could use a computer database to keep track of which products sell best

– A retail store might use a computer-based information system to sell products over the Internet

– In fact, most businesses concentrate on the alignment of MIS with business goals to achieve competitive advantage over other businesses


What is MIS

– MIS professionals create information systems for data management

– In addition, they manage various information systems to meet the needs of managers, staff, and customers


What is MIS

– By working collaboratively with various members of their work group, as well as with their customers and clients, MIS professionals are able to play a key role in areas such as information security, integration, and exchange

• You will see these same things in the textbook we will use for this course as well as the rest of the material


Theme of the Textbook

• Toward this end the authors of the textbook we are using state that their approach to the study of MIS is as follows



– Perhaps the single most important theme in the book, reflected in case studies and exercises, is that managers need to consider the broader organization and management dimensions of information systems to understand current problems as well as to derive substantial above-average returns from their information technology investments



– As you will see throughout the text, firms that can address these related dimensions of the IT investment are, on average, richly rewarded


Approach of the Textbook

• The textbook views MIS as consisting of four main actors– The technologist such as suppliers of

hardware and software– Business firms making investments and

seeking to obtain value from the technology– Managers and employees seeking to achieve

business value– The legal, social, and cultural contexts


Approach of the Textbook

• This constitutes a sociotechnical approach to the study of MIS

• Where the social aspects are just as important as the technology


Aspects of MIS

• There are three aspects of MIS that must be addressed when considering how to integrate the information systems that are used to implement a management information system into a business or government entity– Organizations– Management– Technology


Organizations

• Organizations have a structure that is composed of different levels and specialties

• Their structures reveal a clear-cut division of labor

• Authority and responsibility in a business firm are organized as a hierarchy, or a pyramid structure


Organizations

• The upper levels of the hierarchy consist of managerial, professional, and technical employees, whereas the lower levels consist of operational personnel

• Senior management makes long-range strategic decisions about products and services as well as ensures the financial performance of the firm


Organizations

• Middle management carries out the programs and plans of senior management and operational management is responsible for monitoring the daily activities of the business

• Knowledge workers, such as engineers and scientists, design products thereby creating new knowledge for the firm


Organizations

• Whereas data workers, such as secretaries or clerks, assist with scheduling and communications at all levels of the firm

• Production or service workers actually produce the product and deliver the service


Management

• Management’s job is to make sense out of the situations faced by organizations, make decisions, and formulate action plans to solve organizational problems

• Managers are supposed to– Perceive business challenges in the

environment– Set the organizational strategy for responding

to those challengesCopyright Kenneth M. Chipps Ph.D. 2013 www.chipps.com 17

Management

– Allocate the human and financial resources to coordinate the work and achieve success

• Throughout, they must exercise responsible leadership

• The business information systems described in this book reflect the hopes, dreams, and realities of real-world managers


Technology

• Information technology is just a tool for managers to use

• Examples of information technology include– Computer hardware– Computer software– Network infrastructure– The web


Trends in MIS

• In the view of the authors there are three areas driving change in MIS

• These are– Mobile devices– Software as a Service– Cloud Computing


Trends in MIS

• This table from Laudon and Laudon details these trends


Trends in MIS


The Digital Firm

• A digital firm can be defined along several dimensions

• A digital firm is one in which nearly all of the organization’s significant business relationships with customers, suppliers, and employees are digitally enabled and mediated


The Digital Firm

• Core business processes are accomplished through digital networks spanning the entire organization or linking multiple organizations


The Digital Firm

• Business processes refer to the set of logically related tasks and behaviors that organizations develop over time to produce specific business results and the unique manner in which these activities are organized and coordinated


The Digital Firm

• Developing a new product, generating and fulfilling an order, creating a marketing plan, and hiring an employee are examples of business processes, and the ways organizations accomplish their business processes can be a source of competitive strength


The Digital Firm

• Key corporate assets such as intellectual property, core competencies, and financial and human assets are managed through digital means

• In a digital firm, any piece of information required to support key business decisions is available at any time and anywhere in the firm


The Digital Firm

• Time shifting refers to business being conducted continuously, 24/7, rather than in narrow work day time bands of 9 A.M. to 5 P.M

• Space shifting means that work takes place in a global workshop, as well as within national boundaries

• Work is accomplished physically wherever in the world it is best accomplished


Use of Information Systems

• Specifically, business firms invest heavily in information systems to achieve six strategic business objectives– Operational excellence– New product development– Customer and supplier contact– Improved decision making– Competitive advantage– Mere survival


Operational Excellence

• Businesses continuously seek to improve the efficiency of their operations in order to achieve higher profitability

• Information systems are some of the most important tools managers us to achieve higher levels of efficiency and productivity in business operations, especially when coupled with changes in business practices and management behavior


New Product Development

• An example of a new product development that fundamentally changes the way business is done is the move from physical song delivery to electronic transfers


Contact

• Contact refers to understanding and keeping in touch with customers


Decision Making

• Decision making requires accurate and current information on which to base these decisions


Competitive Advantage

• Doing things better than your competitors, charging less for superior products, and responding to customers and suppliers in real time all add up to higher sales and higher profits that your competitors cannot match this providing a firm with a competitive advantage


Survival

• Business firms also invest in information systems and technologies because they are necessities of doing business

• For example, if Bank of America had not introduced mobile check deposit I would have changed banks


Sources

• Most of this is copied from– Management Information Systems– 12th Edition– Ken Laudon and Jane Laudon


management information systems last update 2013.09.09 1.1.0 copyright kenneth m. chipps ph.d. 2013 ...

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