Week 1:

MIS 5001: Management Information SystemsDavid S. McGettigan

Adapted from material by Arnold Kurtz, David Schuff, and Paul Weinberg

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Agenda

Introductions

IT Fundamentals

IT History

Gaining Competitive Advantage from IT

Next Week

Introductions

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Introductions Contact Information

Email (preferred): david.mcgettigan@temple.edu

Work Phone (urgent issues only): 484-865-4418

Work Experience Pfizer Wyeth Pharmaceuticals Exxon Mobil Corporation DuPont Corporation

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Syllabus

Tentative Schedule Assignments and Weighting Grading Expectations Code of Conduct Class Guidelines

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Goals of This Class

Survey of MIS concepts

Primary goal…to understand the role of IT: The role of technology in solving business problems The role of technology in supporting the organization The transformative nature of technology

Secondary goal…to understand the “stuff”: The basics of a technology infrastructure A vocabulary of technology terms and ideas To be able to interact with technology professionals

Fundamentals

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What is a System?

• A set of interacting components that operate together to accomplish a purpose

INPUT OUTPUTPROCESS

FEEDBACK

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What is an Information System?

People Data

Hardware

IF SSNO <> 9 Char THEN ErrorEND IF

SoftwareNetworking

Business Processes

A set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organizationSource: Laudon, K., & Laudon, J. Management Information Systems. 8/e

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A combination of computers and people that is used to provide information to aid in making decisions and managing a firm

Rely on computer hardware and software Processing and disseminating information

What is a Computer-Based Information System (CBIS)?

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Why are CBISs Important?

Affect all areas of business Manufacturing Accounting & Finance Human resources Marketing Top management

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Data, Information and Intelligence Data: Stream of raw facts representing events

For example, a business transaction Information: Clusters of facts that are meaningful

and useful to human beings in processes such as decision-making For example, retail product placement

Information is data that has been put into a meaningful and useful context

Intelligence is information that provides competitive advantage

History

Men make history, and not the other way around. In periods where there is no leadership, society stands still. Progress occurs when courageous, skillful leaders seize the opportunity to change things for the better.

Harry S. Truman (1884 - 1972)

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MIS is a Relatively New Discipline Started in the mid–1960’s Terminology still being codified

What are the distinctions among these terms Management Information Systems (MIS) Information Technology (IT) Information Systems (IS) Office systems

Even the term MIS is fuzzy narrowly (such as a type of CBIS) or broadly (as in “MIS Department”)

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Role of MIS

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Role of MIS

Accounting Finance Sales Human Resources

Production

MIS is the “glue” that ties businesses together…

…and uses the technology that makes business work.

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Historic View of ISTIME PERIOD INFORMATION SYSTEM PURPOSE

1950-1960

SPEED ACCOUNTING & PAPER PROCESSING

TRANSACTION PROCESSING SYSTEM (TPS)

1960s-1970s

MANAGEMENT INFORMATION SYSTEMS (MIS)

SPEED AND IMPROVE GENERAL REPORTING

1970s-1980s

DECISION SUPPORT SYSTEMS (DSS), EXECUTIVE SUPPORT SYSTEMS

IMPROVE DECISION MAKING AND CONTROL

1998 - ? E-BUSINESS SYSTEMSENTERPRISE SYSTEMS

SURVIVAL OF THE ORGANIZATION

COLLABORATIVE SYSTEMS, VISUALIZATION, KNOWLEDGE MANAGEMENT,…

CREATE KNOWLEDGE AND COMPETITIVE ADVANTAGE

1990s

How would you categorize the current decade?

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Transformation of the Business Enterprise Flattening Decentralization Flexibility Location independence Transaction and coordination

cost pressure Collaborative work and

teamwork

What do all of these things have in common and what does technology have to do with it?

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Emergence of the “digital firm”

Digitally-enabled relationships with customers, suppliers, and employees

Core business processes accomplished via digital networks

Digital management of key corporate assets Rapid and automated sensing and

responding to environmental changes

Gaining Competitive Advantage from IT

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How Can IT Impact the Bottom Line? There’s really only two things:

Reduce Costs Increase

profit Increase Revenue

Everything else relates to one of these two things

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Competitive Advantage From IT

Barriers to Entry Additional costs of creating an information

system. Distribution Channels

Prevent others from entering the industry. Switching Costs

Consumers incur learning and data transfer costs

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Competitive Advantage From IT

Lower Production Costs IT to cut costs

Product Differentiation Add new features or create new products with IT

Quality Management Monitoring production lines and analyzing data

Value Chain Expanding forward or back the value chain to find

greater profits

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Search for Innovation: Marketing

Frequent buyer databases Point-of-Sale and trends Statistical analysis of data Geographic Information Systems Links to external marketing agencies Multimedia development of promotions

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Search for Innovation: Sales and Order Entry

Sales force automation, hand-held computers Customer workstation access Expert Systems for

product and option selection configuration and shipping

Front-line support expert systems, e-mail, work groups

CRM shared data with Customer Service

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Search for Innovation: Post Sale Service

Portable computers for service anywhere Databases (e.g., customer service) Location monitoring of service personnel Product internal, automatic diagnostics Expert Systems

diagnostic tools CRM

Shared data with Sales

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Search for Innovation: Manufacturing

Links to customers Links to suppliers Mass customization Robotics Diagnostic Expert Systems Quality monitoring and control

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Search for Innovation: Logistics and Supply

Just-In-Time Inventory and EDI Configuration and design Searching for availability, pricing,

networks, et al.

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IT Strategy Should Address

Infrastructure Applications Service Level Targets or Agreements Human Resources (skills, recruitment and

retention strategies, et al.). Processes Organizational Structure

Next Class:Week #2

Case Study: Google Inc.

Porter Five Forces Analysis

Value Chain