Introduction to MIS

Outline

How can MIS help you in your job?

What is MIS?
Why is information technology important? Why do all majors need to
study it?
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?
Why are strategic decisions so difficult? How do you begin searching
for competitive advantage?

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.

IT and IS

What is Information Technology?

Any form of technology used by people to handle

information.

What are Information Systems?

Integrated components processing, storing and

disseminating information in an organisation.
Interdisciplinary study of systems that provide information
to users in organisations.

Pyle, I.C. & Illingworth, V. (Eds) (1996). Oxford Dictionary of Computing, 4 th Edition. Oxford / New York: Oxford
University Press
4

Information and Data

Information

Clusters of facts meaningful and useful to human beings

in processes such as making decisions

Data

Streams of raw facts representing events such as

business transactions meaningless without structure

MIS Components

Hardware
Software

Backup data
Restart job
Virus scan

People

Procedures

Data

Intelligence

INTELLIGENT MANAGER

+ wisdom

Knowledge

EXECUTIVES

+ experience

Information

LINE MANAGER

+ context

Data

SUPERVISOR

+ procedure

Business Facts

STAFF

2. Help Empowering the People

1. Help Creating the Intelligence

Role of Information System

Why is MIS Important?

MIS affects all areas of business

Manufacturing
Infrastructure
Accounting & Finance
Human resources
Marketing
Top management

Productivity Growth: Output per Worker

Output per Person
120
100
80
60
40
20

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

The Three Domains: IS, IT and IM

What ?
IS Strategy
Applications
Division/function based
Demand oriented
Business focused
Wherefore ?
IM Strategy
Organisation based
Relationship oriented
Management focused
How ?
Management
IT Strategy
Activity based
Supply oriented
Technology focused
Delivery

Making Decisions

Methodology v Ad Hoc Decisions

Decision Process

Collect Data
Identify Problems & Opportunities
Make Choices

Traditional Management

CEO

Commands

VP
Finance

VP
Marketing

VP
Accounting

Condensed reports

VP
HRM

VP
MIS

Analyze data

Layers of middle managers

Collect
data

Customers

Decentralization
Management Team
CEO
VP
Fin

VP
Mrkt

VP
Acct

VP
HRM

VP
MIS

Strategy
Finance
Team

Marketing
Team

Sales
Team

Accounting
Team

Methodology/Rules

Customers

HRM
Team

Franchise

Corporate
Database
&
Network

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

Changing Business Environment

US History: Farmer Laborer Management

Year

Farm

Mfg

Mgt

Service

1920

29%

44%

22%

6%

1940

23

38

30

1960

36

43

12

1980

32

52

13

2000

16

66

17

2010

11

68

20

MIS Organization

Strategic
Mgt.
Tactical
Management

Business Operations

Decision Levels
Decision
Level

Description

Example

Type of Information

Strategic

Competitive advantage,
become a market leader.
Long-term outlook.

New product that

will change the
industry.

External events, rivals,

sales, costs quality,
trends.

Tactical

Improving operations
without restructuring the
company.

New tools to cut

costs or improve
efficiency.

Expenses, schedules,
sales, models,
forecasts.

Operations

Day-to-day actions to
keep the company
functioning.

Scheduling
Transactions,
employees,
accounting, human
ordering supplies. resource management,
inventory.

Management
Levels:
Senior managers: make long-range strategic

decisions about products and services

Middle managers: Carry out the programs and

plans of senior management

Operational managers: monitor the firms daily

activities