Introduction to Management Information Systems Chapter 1 MIS

Introduction to Management Information Systems Chapter 1 MIS and You HTM 304 Spring 06

Definition of MIS The Development and Use of Information Systems that Achieve Business Goals and Objectives Three Key Elements: Components of an Info Sys Development and use of the IS Achieving business goals and objectives 2

I. Information Systems Definitions: System: A group of components that interact to achieve some purpose Information System ( give the definition by yourself) Example: non computer-based IS: a schedule sheet posted outside the classroom telling us the classroom reservation information computer-based IS: Web. CT, Online course registration 3 system, online banking system, etc.

What is Information? Four different definitions Knowledge derived from data Data presented in a meaningful context Data processed by summing, ordering, averaging, grouping, comparing, or other similar operations A difference that makes a difference 4

Examples of Information Systems Raw Data 5 Information 1. Jeff Parks earns $10. 00 per hour. 1. Jeff Parks earns less than the average hourly wage of his department 2. George Hanes get 83 in his mid-exam of BUS 304 2. The average score of BUS 304 is 77 3. Gary spent $200 in Bestbuy on Dec 15, 2006 3. The total sale of Bestbuy is $708, 000 on Dec 15, 2006 4. Dallas Mavericks has won 36 games and lost 9 games in the new season 4. Dallas Mavericks is now ranked #1 team in NBA western conference

Information is Subjective Information in one person’s context is just a data point in another person’s context Context changes occur in information systems when the output of one system feeds a second system Information conveys meaning, which contains the information providers’ point of view. (Information manipulation) 6

Characteristics of Good Information Read p. 11 -13, describe the five characteristics of good information Accurate Good information shall be accurate. However, there a lot information that’s inaccurate. Be careful! Example: managers & financial analysts may manipulate earnings to mislead investors 7

Characteristics of Good Information Read p. 11 -13, describe the five characteristics of good information Accurate Timely Good information shall be delivered to the right person at the right time in order to make the right decision. Example: many companies keep outdated customer contact information, which is a waste of time and money. 8

Characteristics of Good Information Read p. 11 -13, describe the five characteristics of good information Accurate Timely Relevant Information is subjective. Good information shall be relevant to the reader which helps make good decision. Example: a list of customer activities is relevant to the marketing department but not that relevant to the CEO. 9

Characteristics of Good Information Read p. 11 -13, describe the five characteristics of good information Accurate Timely Relevant Just Sufficient 10 Users shall have all the available information in order to make the right decision. However, too much information will reduce efficiency. Example: use the credit score instead of the whole transaction history to evaluate a person’s probability to default.

Characteristics of Good Information Read p. 11 -13, describe the five characteristics of good information Accurate Timely Relevant Just Sufficient Worth Its Cost 11 In a business world, think cost-effectively: What is the value of information? How much does it cost to produce that information? Example: why not keep track of all the consumers’ activity?

Characteristics of Good Information Read p. 11 -13, describe the five characteristics of good information Just Sufficient Worth its Money Accurate Relevant Timely -- Good information shall be SMART! 12

Understanding the Five-Components 13

The most important component Your mind and thinking are the most important component If you don’t know what to do with your information system’s information, you are wasting time and money. You may not always like the aid of information systems. (Case Study 1 -1 Page 20, answer question 2. ) 14

II. Development and Use of Info. Sys You need to take an active role in every stage of the information system’s development It doesn’t matter if you are a programmer, database designer, or only a user, you must be active in: Specifying the systems requirements Helping to manage the development project Using the information system System Analysis 15 System Design System Implementation System Development Cycle System Maintenance

III. Achieving Business Goals and Objectives Businesses themselves do not “do” anything Information Systems exist to help people in business to achieve goals and objectives of business. Case 1: Land’s End (Success) -- Describe the critical role IT plays in supporting Land’s End business operation Case 2: IRS (Failure) -- Identify the main reasons the BSM project failed 16

Case of Land’s End Questions: 1. List some of the high tech you’ve seen from the video 2. List some of the critical operations that are supported by IT/IS 3. Explain the system philosophy “keep day-to-day operation running smoothly. ” 4. Give an example how IT/IS help Land’s End collect critical customer information. 17

Extra Knowledge – TAM model Technology Acceptance Model (TAM): Fred Davis, 1989, MIS Quarterly Perceived Usefulness User Acceptance Perceived Ease of Use Why is the word “perceived” critical in the two factors? It’s all about the user’s feelings… 18

Understanding New Information Systems Use the five-component framework to learn about new systems. Focus questions on: Organization impact (people) System administration & Procedures to create or modify Databases and other data to create Programs to license Hardware needs 19

Exercise Describe the five components of a casher’s check-out system 20

Career Path of MIS Major CIO / IS Director Information Center Manager App. Dev. Manager Project Manager Operations Manager System Manager Programming Manager Business Analyst Systems Programmer Emerging Technologies Manager Network Manager Database Admin. Auditing or Computer Security Manager Webmaster Web Designer 21

HTM 304 supports the MIS curriculum HTM 304 Intro to MIS HTM 411 Database Design HTM 425 Sys. Analysis & Design HTM 484 G Web Programming HTM 429 Java Programming HTM 427 Multimedia HTM 426 Tele Comm HTM 430 Wireless E-Commerce Seminar in IS Internship + Practice 22 In every part of MIS courses, you should think about how it contributes to help the organization’s information flow -- How to provide the right information to the right person at the right time?

Full Time Employment Statistics by Major: (2006 undergraduate National wide) 23 Major Avg Standard Dev % of Reports Accounting $40, 670 $7, 655 2% ERB $48, 870 $6, 640 3% Finance $48, 530 $7, 756 50% Honors + BBA $50, 050 $7, 365 15% International Business $45, 920 $9, 584 3% Management $42, 460 $11, 662 4% Marketing $39, 510 $8, 772 13% MIS $52, 010 $5, 815 11%

What is in this semester Management Information System: The management of a group of components the produces information and to achieve the business objective and goals Discussing the components: (technical) Chapter 3: hardware and software Chapter 4: Database HTM 425 Chapter 5: Networking HTM 426, 430 How to put the computer-related components together to automate the business processes (technical + managerial) Chapter 6: System Development HTM 425 How to use the IS to achieve strategic goals? (managerial) Chapter 2: IS for competitive advantage Chapter 7, 8, & 9: Intra- and inter- organizational IS 24 Chapter 10 & 11: IS & Security Management, IS as a career

Summary Definition of MIS: Management information systems is the development and use of information systems that help business achieve their goals and objectives. What is an information system: a group of components that interact to produce information. The five components of an information system hardware, software, data, procedures, and people. 25

Summary (Cont) Explain why you are the most important component Use the five-component framework to analyze an Information System Four definitions of Information Why Information is subjective? 26

Suggested Topic of this Week Blog Read the chapter (including the security guide, the ethics guide, the opposite forces guide, and the problem solving guide) and talk about “MIS and You” Your understanding of MIS, examples of MIS Your use of MIS (career, school, daily life, etc) How do you think you are connected to MIS? How do you think the course MIS can benefit you? Watch the video by Steve Cooper, CIO of the red-cross and discuss how to value information? 27