MIS Introduction Lecture1

8/8/2019 MIS Introduction Lecture1

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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



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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



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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



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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

Documents

MIS Introduction Lecture1