Introduction to Management Information Systems Chapter 1 MIS and You

1. Introduction to Management Information SystemsChapter 1 MIS and You HTM 304 Spring 06

2. 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

3. 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: WebCT, Online course registration system, online banking system, etc.

4. 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

5. Examples of Information Systems

6. 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)

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

8. 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 Example: many companies keep outdated customer contact information, which is a waste of time and money.

9. 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.

10. Characteristics of Good Information • Read p.11-13, describe the five characteristics of good information • Accurate • Timely • Relevant • Just Sufficient 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.

11. Characteristics of Good Information • Read p.11-13, describe the five characteristics of good information • Accurate • Timely • Relevant • Just Sufficient • Worth Its Cost 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?

12. 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!

13. Understanding the Five-Components

14. 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.) You!

15. 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 System Design System Implementation System Maintenance System Development Cycle

16. 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

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

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

19. Understanding New Information 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 Use the five-component framework to learn about new systems.

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

21. 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 Analyst • Systems Programmer • Emerging Technologies Manager • Network Manager • Database Admin. • Auditing or Computer Security Manager • Webmaster • Web Designer

22. HTM 304 Intro to MIS HTM 411 Database Design HTM 425 Sys. Analysis & Design HTM 484G Web Programming HTM 429 Java Programming HTM 427 Multimedia HTM 426 Tele Comm HTM 430 Wireless E-Commerce Seminar in IS Internship + Practice HTM 304 supports the MIS curriculum 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?

23. Full Time Employment Statistics by Major: (2006 undergraduate National wide)

24. 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 Chapter 10 & 11: IS & Security Management, IS as a career

25. 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.

26. 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?

27. 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?