MIS 200 Notes - Arun Madapusi PDF

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1 Management Information Systems (MIS) 200-900 Notes Chapter 1: The Information Age in Which You Live Management Information Systems (MIS)= deals with the planning for, development, management, and use of information technology tools to help people perform all tasks related to information processing and management. 1. People 2. Information 3. Technology The Synergy  Achieve a competitive advantage  Do things cheaper and faster  Increase revenue  Innovate new processes Data= raw facts Ex. current temperature, price of movie ticket, age Information= data with particular meaning within a specific context Ex. average age, oldest and youngest, frequency distribution of customers by age Business Intelligence (BI)= collective information that gives you the ability to make effective, important, and often strategic decisions based on:  Customers  Competitors  Business partners  Competitive environment  Internal operations Defining Quality Information  Timeliness  Location  Form  Validity (credibility) ^^Lack of any of the above can create… Garbage-In Garbage-Out (GIGO)= if the information coming into your decisionmaking process is in bad form (garbage-in), you’ll more likely make a poorer decision (garbage-out).

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Information from an Organizational Perspective

Up current state of the organization Down strategies, goals, directives

Information Granularity

In/ Out customers, suppliers, partners

fine granularity Horizontal between functional business units and work teams

Internal Information= operational External Information= environment surrounding Objective Information= known Subjective Information= unknown

People- most important resource to an organization along with:  Technology  Information  Ethics

3 Technology-Literate Knowledge Worker= knows how and when to apply technology. Information-Literate Knowledge Worker:  Can define what information is needed  Knows how and where to obtain information  Understands the information once it is received  Can act appropriately based on the information to help the organization achieve the greatest advantage Business Intelligence (BI)- who, why, what? Ethics= principles and standards that guide our behavior toward other people.

Ethical Unethical

Legal I III

Illegal II IV

Information Technology (IT)= any computer-based tool that people use to work with information and support the information and information-processing needs of an organization. Hardware= physical devices that make up a computer 1. Input Device= enter information and commands a. Ex. mouse, scanner 2. Output Device= hear, see, recognize the results of information-processing request a. Ex. monitor, printer 3. Storage Device= store information for use at a later time a. Ex. DVD, memory 4. Central Processing Unit (CPU)= Hardware that interprets and executes the system and application software instructions and coordinates the operation of all the hardware. a. Random Access Memory (RAM)= Temporary holding area for information and software. b. Ex. brains of computer 5. Telecommunications Device= Tool used to send information and receive it from another person or computer in a network. a. Ex. modem, satellite

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6. Connecting devices a. Ex. USB, cord, port Software= the set of instructions that your hardware executes to carry out a specific task for you. 1. Application Software= software that enables you to solve specific problems and perform specific tasks. 2. System Software= Handles tasks specific to technology management and coordinates the interaction of all technology devices. a. Operating System Software i. Ex. Mac, Windows b. Utility Software= Adds functionality to operating system software i. Ex. Anti-virus Fixed Cost= total costs incurred whether or not you sell anything Variable Costs= the amount it costs to acquire/ produce one unit Revenue= how you sell that one unit for Technology reduces  Fixed Costs (FC)  Digital stores  Telecommuting  Voice over IP (VoIP)= using the internet for phone calls  Cloud computing Technology reduces  Variable Costs (VC)  Virtual goods  Crowdsourcing= use of non-paid non-employees to create value Technology increases  Revenue  Recommendation engines  Long-tail economics- to sell products that are too expensive for stores to carry Competitive Advantage= Providing a product or service in a way that customers value more than what your competition is able to do. Five Forces Model= helps business people understand the relative attractiveness of an industry and the industry’s competitive pressures in terms of the following five forces:

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Buyer power Supplier power Threat of substitute products or services Threat of new entrants Rivalry among existing competitors

Buyer Power= high when buyers have many options and low when their choices are few Loyalty Program= Reward customers based on the amount of business they do with a particular organization. First-Mover Advantage= A significant impact on gaining market share by being the first to market with a competitive advantage. Supplier Power= High when buyers have few choices and low when choices are many. Threat of Substitute Products and Services= High when there are many alternatives for buyers and low when there are few alternatives. Switching Costs= Costs that make customers reluctant to switch to another product or service supplier. Threat of New Entrants= High when it is easy for competitors to enter the market and low when entry barriers are significant. Entry Barrier= Product or service feature that customers have come to expect from organizations in a particular industry and that must be offered by an entering organization to compete and survive. Rivalry Among Existing Competitors= High when competition is fierce and low when competition is more calm. 3 Strategies for Beating the Competition Identified by Porter: 1. Overall cost leadership 2. Differentiation 3. Focus 1. Overall Cost Leadership= Offering the same or better quality product/service at a price cheaper than the competition. 2. Differentiation= Unique product/service in the marketplace. 3. Focus= Focusing on offering products/services i.

To a particular market segment or buyer group

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Within a segment of a product line To a specific geographic market

Run-Grow-Transform (RGT) Framework= An approach in which you allocate in terms of percentages how you will spend your IT dollars on various types of business strategies. Run= overall cost leadership Grow= focus and differentiation Transform= (new) differentiation Minicomputer= meets needs of several people simultaneously in a small or med-size business Mainframe Computer= meets needs of hundreds of people in a large business Supercomputer= fastest, most powerful, expensive type of computer Personal Productivity Software= helps you perform personal tasks Software Suite= several applications bundled together Word Processing= helps you create letters, memos and documents Spreadsheets= helps you work with numbers, perform calculations and make graphs Presentation= create and edit information that will appear in slides Desktop Publishing= design and formatting to enhance appearance of document Personal Information Management (PIM)= create and maintain to-do lists, appointments and calendars Personal Finance= maintain checkbook and other finance tasks Web Authoring= design and develop websites Graphics= create and edit photos and art Communications= help communicate Database Management System (DBMS)= helps you specify the logical organization for a database; access and use the information within a database. Vertical Market Software= Application software for a specific industry Ex. POS

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Horizontal Market Software= Application software suitable for use in many industries Ex. Payroll Chapter 2: Major Business Initiatives Supply Chain Management Distribution Chain= simply the path a product or service follows from the originator of the product or service to the end consumer. Supply Chain Management (SCM)= tracks inventory and information among business processes and across companies. Supply Chain Management (SCM) system= an IT system that supports supply chain management activities by automating the tracking of inventory and information among business processes and across companies. Just-in-Time (JIT)= a method for producing or delivering a product or service just at the time the customer wants it. Inter-Model Transportation= the use of multiple channels of transportationrailway, truck, boat, and so on- to move products from origin to destination. Strategic and Competitive Opportunities with Supply Chain Management (SCM)  Overall cost leadership (Porter’s 3 strategies)  Running the organization (run-grow-transform framework) 1. 2. 3. 4. 5.

Fulfillment Logistics Production Revenue and profit Cost and price

Information Partnership= two or more companies cooperating by integrating their IT systems, thereby providing customers with the best of what each can offer.

Customer Relationship Management Customer Relationship Management (CRM) system= uses information about customers to gain insight into their needs, wants, and behaviors in order to serve them better.

8 Multi-Channel Service Delivery= describes a company’s offering multiple ways in which customers can interact with it. E-mail, fax, phone, and the Web are all ways in which most companies interact with their customers. Customer Relationship Management (CRM) systems include such functions:  Sales force automation  Customer service and support  Marketing campaign management  Analytics Sales Force Automation (SFA) systems= automatically track all the steps in the sales process. The sales process contains many steps, including contact management, sales lead tracking, sales forecasting and order management, and product knowledge. SFA systems empower sales representatives with information and business intelligence focused on customer buying patterns and needs. Strategic and Competitive Opportunities with Customer Relationship Management (CRM)  Differentiation and focus (Porter’s 3 strategies)  Growing the organization (run-grow-transform framework) 1. Devising more effective marketing campaigns based on more precise knowledge of customer needs and wants 2. Assuring that the sales process is efficiently managed. 3. Providing superior after-sale service and support, for example, through well-run call centers. IT Support for CRM Front Office Systems= the primary interface to customers and sales channels; they send all the customer information they collect to the database. Back Office Systems= used to fulfill and support customer orders and they also send all their customer information to the database. Software-as-a-Service (SaaS)= a delivery model for software in which you pay for software on a pay-per-use basis instead of buying the software outright. Enterprise Resource Planning Enterprise Resource Planning (ERP) system= a collection of integrated software for business management, accounting, finance, human resources management, project management, inventory management, service and maintenance, transportation, ebusiness, and supply chain management, customer relationship management, and ecollaboration. ERP systems include all technology systems and software in your organization.

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Enterprise Resource Planning (ERP) functionality: Legacy Information System (LIS)= represents a massive, long-term business investment in a software system with a single focus; such systems are often brittle, slow, and nonextensible. 1. Integrated information across the board (data, information, and business intelligence) 2. One suite of applications 3. A unified interface across the entire enterprise Enterprise Resource Planning (ERP) systems have the following characteristics: 1. Modular design comprising many distinct business functions such as financial, manufacturing, and distribution. 2. A centralized database that organizes and manages information. 3. Integrated functions that provide seamless information flow among them. 4. Flexible best practices 5. Functions that work in real time 6. Internet-enabled Successful ERP functions:  Accounting  Financials  Manufacturing  Production  Transportation  Sales and distribution  Human resources  Supply chain  Customer relationship  E-business Social Media Social Media= a collection of Web-based and mobile technologies that create true interactivity among users, most usually allowing users to be both creators and consumers of content. Web 2.0= the so-called second generation of the Web and focuses on online collaboration, users as both creators and modifiers of content, dynamic and customized information feeds, and many other engaging Web-based services. Web 1.0= the early Web was characterized by pulling static information.

10 Information Gathering Pull= users research, find, request, and retrieve the information they want. Push= organizations provide users with customized, personalized, and timely information based on each user’s individual profile. Information Status Static= snap-shot of information, usually built into the actual content of a Web page. Dynamic= (near) real time information retrieved from a live database as the Web page is built. Social Networking Social Networking Site= a site on which you post information about yourself, create a network of friends, read about other people, share content such as photos and videos, and communicate with people. Social Shopping Social Playing Massively Multiplayer Online Role-Playing Games (MMORPGs)= games in which thousands or perhaps millions of people play and interact in a robust virtual world. Social “Saving the World”

Social Locationing Social Locationing or Location-Based Services= the use of a mobile device and its location (as determined by GPS) to check into locations such as businesses and entertainment venues, find friends and their locations, and receive rewards and take advantage of “specials” based on location. Extended Learning Module C- Designing Databases and Entity-Relationship Diagramming Database= a collection of information that you organize and access according to the logical structure of that information.

11 Relational Database= uses a series of logically related two-dimensional tables or file to store information in the form of a database. Designing and Building a Relational Database 1. Define entity classes and primary keys 2. Define relationships among entity classes 3. Define information (fields) for each relation (file) 4. Use a data definition language to create your database Business Rules: 1. A given concrete type will have many raw materials in it 2. A given raw material may appear in many types of concrete 3. Each raw material has one and only one supplier 4. A supplier may provide many raw materials Step 1: Define Entity Classes and Primary Keys Entity Class= a concept- typically people, places, or things- about which you wish to store information and that you can identify with a unique key (primary key). Primary Key= a field (or group of fields in some cases) that uniquely describes each record. Instance= an occurrence of an entity class that can be uniquely described with a primary key. Step 2: Define Relationships Among the Entity Classes Entity-Relationship (E-R) Diagram= a graphic method of representing entity classes and their relationships. An E-R diagram includes 5 basic symbols: 1. A rectangle to denote an entity class 2. A dotted line connecting entity classes to denote a relationship 3. A to denote a single relationship 4. A O to denote a zero or optional relationship 5. A crow’s foot (shown as...