MIS+ +Classroom+Ppts

7/31/2019 MIS+ +Classroom+Ppts

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MANEGEMENT INFORMATION SYSTEMS

MIS

M I S


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MANAGEMENT

WHAT IS MANAGEMENT?

BASIC PILLERS/FUNCTIONS OF

MANAGEMENT? LEVELS OF MANAGEMENT


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MANAGEMENT-INFORMATION

Managerial functions like PODC can be

discharged effectively and smoothly when

necessary information is given to themanagers, who can make timely and

correct decision.


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Information Systems

Why Do People Need Information?

Individuals - Entertainment and enlightenment

Businesses - Decision making, problem solving and control


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Data, Information and Systems

Data vs. Information

Data

A given, or fact; a number, a statement, or a pictureRepresents something in the real world

The raw materials in the production of information

Information

Data that have meaning within a contextData in relationships

Data after manipulation


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Data Processing

Example: customer survey

Reading through data collected from a customersurvey with questions in various categories would

be time-consuming and not very helpful.

When properly processed, the surveys may provide

useful information.


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Generating Information

Computer-based ISs take data as raw material,process it, and produce information as output.

Figure 1.1 Input-process-output



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Information in Context

Relevant

Complete

Accurate

Current

Economical


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What Is a System? System: A set of components that are

integrated to achieve a common objective.

Subsystem: One part of a system where theproducts of more than one system arecombined to reach an ultimate goal


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Information and Managers

Systems thinking

Creates a framework for problem solving anddecision making.

Keeps managers focused on overall goals and

operations of business.


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Figure 1.5 Qualities of humans and computers that contribute to

synergy


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The Benefits of Human-Computer Synergy

Synergy

When combined resources produce output thatexceeds the sum of the outputs of the same

resources employed separately

Allows human thought to be translated into efficientprocessing of large amounts of data


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The Four Stages of Data Processing

Input: Data is collected and entered into computer.

Data processing: Data is manipulated into informationusing mathematical, statistical, and other tools.

Output: Information is displayed or presented.

Storage: Data and information are maintained forlater use.


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Why Study IS?

Information Systems Careers Systems analyst, specialist in enterprise resource planning (ERP),

database administrator, telecommunications specialist, consulting, etc.

Knowledge Workers Managers and non-managers

Employers seek computer-literate professionals who know how to use

information technology.

Computer Literacy Replacing Traditional

Literacy Key to full participation in western society


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Drawbacks (The Not-So-Bright Side)

Lack of privacy.

Consumer Privacy:-Organizations collect (and

sometimes sell) huge amounts of data on individuals.

Employee Privacy:-IT supports remote monitoring ofemployees, violating privacy and creating stress.


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Freedom of Speech IT increases opportunities for many illegal and unsocial things.

No code of ethics:- No mandatory or enforced code of ethics for IT professionals--unlike

other professions.

Social Inequality:- Less than 20% of the worlds population have ever used a PC; less than

3% have Internet access.


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MIS can be defined as the system ofproviding needed information to the

various persons/employees/manager at

the right time , in the right form andrelevant one which aids his understanding

and stimulates his action.

Its designed to meet the goal of the

organization.


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Competitive analysis by M. Porter:

Analysis ofthe industry

Analysis ofthe

organization

Choosingthe

strategy

Five force

analysis

Entry and

exit barriers

Generic

strategies


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Michel porter competitive forcemodel

Bargaining

powers of

buyers

Bargaining

powers of

suppliers

Threat of

substitute

products

Threat of new

entrants

Competitive

rivalry


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Competitive Rivalry

The intensity of rivalry is influenced by thefollowing industry characteristics:-

1. A larger number of firms increases rivalry because

more firms must compete for the same customers andresources. The rivalry intensifies if the firms have similar

market share, leading to a struggle for market

leadership.

2. Slow market growth causes firms to fight for marketshare. In a growing market, firms are able to improve

revenues simply because of the expanding market.


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3.High fixed costs :-the firm must sell this large quantityof product, high levels of production lead to a fight for

market share and results in increased rivalry.

Example : Airline industry v. medical store

4. High storage costs or highly perishable productscause a producer to sell goods as soon as possible. If

other producers are attempting to unload at the sametime, competition for customers intensifies.


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5. Low switching costs increases rivalry.When a customer can freely switch from

one product to another there is a greater

struggle to capture customers.

6. Low levels of product differentiation

is associated with higher levels of rivalry.Brand identification, on the other hand,

tends to constrain rivalry.


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7. Strategic stakes are high when a firmis losing market position or has potential

for great gains. This intensifies rivalry.

8. High exit barriers :High exit barriers

cause a firm to remain in an industry, even

when the venture is not profitable.


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9. Industry Shakeout:-

Turbulent position

Growing

market

or

potentialfor high

profits

Induces newfirms to

enter in

market

Existing

firms to

increase

production.

creating asituation of

excess

capacity

with too

manygoods

chasing

too few

buyers

A point is

reached

where the

industry

becomescrowded with

competitors

Intense

competitio

n, price

wars, andcompany

failures.


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Threat Of Substitute products

SP are those products which appeared to bedifferent but satisfy the same /similar needs of

the customers.

Functional

similarity

Better/similar

quality @ low

price


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The competition by a Threat of Substitutecomes from products outside theindustry.

For example:-The price of aluminumbeverage cans is constrained by the priceof glass bottles, steel cans, and plastic

containers. These containers aresubstitutes, yet they are not rivals in thealuminum can industry.


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1.Economies of scale:-

2.Brand name:-umbrella branding:

for example: Maggie catch-up

3. Access of Distribution channels:

Threat of new entrants:-


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Customers compels the industry to lowerdown the price of products.

For example

In handicraft industry: give discount

otherwise consumers will move out.

Alternate options are available

Low switching cost

Bargaining powers of the buyers:-


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When industry forces customers to payhigher price:

Monopoly

High switch cost

Bargaining powers of the suppliers:-


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Entry and exit barriers..

Easy to enter Difficult to enter Common technology

Ease in brand switching

Access to distribution channels

Quick to achieve BEP.

Patented technology

Difficulty in brand switching

Restricted access to distribution

channels

Takes long to achieve BEP.

Easy to exit Difficult to exit

Sellable assets

Independent business

Specialized assets

Interdependent business


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Cost leadership strategy


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Risks involved in low cost


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Differentiation strategy.


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Focus strategy

Focus strategy concentrates on a narrowsegment and within that segment

attempts to achieve either a cost

advantage or differentiation.

Needs of the group can be better

serviced by focusing entirely on it.


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For exampleTelecom industry..


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The value chain analysis..


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Value chain activities..

Primary activities: Inbound

Operations

Out bound

Marketing and sales

Services

Secondary activities:

Procurement*

Technology development

HRM Finance, legal, quality managementetc

*Procurement:-Almost all purchasing decisions include factors such as

delivery and handling, marginal benefit, and price fluctuations. Procurement

generally involves making buying decisions .


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Primary activities.


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Role of MIS

inStrategic

Management


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Innovative applications:For example, Federal Express was the first company in its

industry to use IT for tracking the location of every package in

its system. Next, FedEx was the first company to make this

database accessible to its customers over the Internet. FedEx has

gone on to provide e-fulfillment solutions based on IT and is

even writing software for this purpose

Competitive weapons: Michael Dell, founder of Dell Computer, puts it bluntly: The

Internet is like a weapon sitting on the table, ready to be picked up

by either you or your competitors


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Change in process: IT supports changes in business processes that translate to

strategic advantage. IT can change business processes include

better control over remote stores or offices by providing speedy

communication tools, streamlined product design time with

computer-aided engineering tools, and better decision-making

processes by providing managers with timely information reports

Links with business partners

Cost reductions

Relationship with suppliers and

customers


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New products Competitive intelligence:

IT provides competitive (business) intelligence by collecting and

analyzing information about products, markets, competitors, and

environmental changes.

For example:-

if a company knows something important before its competitors,

or if it can make the correct interpretation of information before

its competitors, then it can act first, gaining strategic advantage

through first-mover advantage


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Cost leadership strategy

A firm achieves cost leadership in its industry by thrifty buying

practices, efficient business processes, forcing up the prices paid by

competitors, and helping customers or suppliers reduce their costs.

A cost leadership example is the Wal-Mart automatic inventory

replenishment system. This system enables Wal-Mart to reduce

storage requirements so that Wal-Mart stores have one of the

highest ratios of sales floor space in the industry. Essentially Wal-

Mart is using floor space to sell products, not store them, and it

does not have to tie up capital in inventory. Savings from thissystem and others allows Wal-Mart to provide low-priced products

to its customers and still earn high profits.


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Differentiation strategy:

Offer different products, services, or product features byoffering different, better products companies can charge

higher prices, sell more products, or both. Southwest

Airlines has differentiated itself as a low-cost, short-haul,

express airline, and that has proven to be a winning strategyfor competing in the highly competitive airline industry. Dell

has differentiated itself in the personal computer market

through its mass-customization strategy.


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Niche strategy:

Select a narrow-scope segment (niche market)and be the best in quality, speed, or cost in thatmarket. For example, several computer-chip

manufacturers make customized chips for specific

industries or companies.

Some of the best-selling products on the Internet are

niche products. For example, dogtoys.com and cattoys.com

offer a large variety of pet toys that no other pet toyretailer offers.


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Growth strategy:

Increase market share, acquire more customers,or sell more products. Such a strategy strengthens acompany and increases profitability in the long run.

Web-based selling can facilitate growth by creating new

marketing channels, such as electronic auctions. An

example is Dell Computer (dellauction.com), which

auctions both new and used computers mainly toindividuals and small businesses.

O ti l ff ti


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Operational effectiveness

strategy:

Improve the manner in which internal businessprocesses are executed so that a firm performs similar

activities better than rivals (Porter, 1996).

Such improvements increase employee and customer

satisfaction, quality, and productivity while decreasing

time to market. Improved decision making and

management activities also contribute to improvedefficiency.


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Customer-orientation strategy:

Concentrate on making customers happy, as is thecase with RadioShack Online. Strong competition and

the realization that the customer is king (queen) is the

basis of this strategy.

Web-based systems that support customer relationship

management are especially effective in this area because

they can provide a personalized, one-to-one relationshipwith each customer.


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Data is like raw material while

information is finished goods producedafter processing of raw material.

Cl ifi ti f i f ti


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Classification of information.

Action v non action information: No stock purchase calling is action information while

stock ledger showing a store transaction and stock

balance is non action information.

Recurring v non recurring information: Monthly reports and stock statements is recurring

information while annual report is non recurring

information.


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Internal v external informationInformation generated through internal or external

sources.

Planning information Control information

Knowledge information:Research studies, library reports


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Methods of data collection

Observation Experiment

Survey

Subjective estimation

Purchased from outside

Publications

Government agencies

Documents

MIS+ +Classroom+Ppts