Introduction to Management Information Systems (MIS)

MIS

Systems that manage information to support business decisions and operations.

Input

Collects raw data.

Processing

Converts to meaningful info.

Output

Delivers information.

Feedback

Improves the system using results.

Operational Excellence

Better performance, lower cost (e.g., Walmart).

New Products/Models

Tech creates new services (e.g., Apple Music).

Customer/Supplier Intimacy

Personalization improves loyalty & reduces cost.

Improved Decision-Making

Real-time data helps managers act fast.

Competitive Advantage

Stand out from rivals using IS.

Survival

Keeping up with tech & regulations is essential.

IT

Tools (hardware/software)

MIS

How those tools are used to achieve business goals

Globalization & IS

Technology reduces costs and barriers to global business

The Digital Firm

Business functions are connected via digital networks

Essential Tech Trends

Cloud Computing - Scalable IT resources

Big Data

Better insights from huge data sets

IoT

Devices collect and share data

AI/Machine Learning

Smart automation & predictions

Mobile Platforms

Apps, mobile commerce

Social Networks

Business tools for marketing & engagement

Transaction Processing Systems (TPS)

Records daily transactions (e.g., payroll, sales entry)

Management Information Systems (MIS)

Uses TPS data to generate reports on current performance

Decision Support Systems (DSS)

Supports nonroutine decisions

Executive Support Systems (ESS)

Provides real-time dashboards & data visualization

Enterprise Systems (ERP)

Integrates internal processes across functions (e.g., finance, HR)

Supply Chain Management (SCM)

Optimizes supplier, production, and distribution flows

Customer Relationship Management (CRM)

Manages sales, marketing, and customer service data

Knowledge Management Systems (KMS)

Captures and shares internal expertise across the org

Collaboration

Working together to achieve shared goals

Social Business

Using social platforms to boost employee, customer, and supplier engagement

Michael Porter's Competitive Forces Model

A framework that identifies five competitive forces that shape strategy

Low-Cost Leadership

Reduce costs (e.g., Walmart's supply chain system)

Product Differentiation

Unique experiences, mass customization (e.g., Nike ID, Apple)

Focus on Market Niche

Specialized services or products (e.g., Hilton's OnQ)

Strengthen Customer & Supplier Intimacy

Loyalty through close relationships (e.g., Amazon, Toyota)

Inbound logistics

The activities related to receiving, storing, and disseminating inputs.

Operations

The processes that transform inputs into the final product.

Outbound logistics

The activities required to get the finished product to the customer.

Marketing & sales

Activities that inform buyers about products and services and persuade them to purchase.

Service

Activities that maintain and enhance the product's value.

Infrastructure

The systems that support the entire value chain, including management, planning, and finance.

HR management

The practices related to recruiting, hiring, training, and developing personnel.

Technology development

The activities related to the development of new technologies to support value-creating activities.

Procurement

The process of acquiring goods and services needed for the value chain.

Value Web

A networked model linking suppliers, partners, and customers, more flexible and customer-driven than linear value chains.

Transaction Cost Theory

IT reduces the cost of market participation, encouraging smaller, more agile firms.

Agency Theory

IT reduces supervision costs, making it easier to scale firms without bloated management.

Network Economics

Value grows with the number of users; the marginal cost of adding users is near zero, but each adds value.

Disruptive Technologies

Innovations that transform industries, such as smartphones and AI.

Smart Products & IoT

Technologies that extend product value, raise switching costs, and differentiate firms.

Business Ecosystems

Interdependent networks of firms using IT platforms, where keystone firms provide platforms and niche firms innovate.

Virtual Company Model

Uses IT to outsource and collaborate without physical presence.

Cookies

Used for tracking user behavior and identifying browsers.

Web Beacons (Web Bugs)

Embedded in emails and websites to monitor user activity.

Spyware

Installed on user devices to track activity or display ads.

Fair Information Practices (FIP)

Principles governing the collection and use of data, driving privacy laws in the US and Europe.

COPPA (Children's Online Privacy Protection Act)

Protects children's data.

Gramm-Leach-Bliley Act

Governs financial institutions and the use of customer data.

HIPAA (Health Insurance Portability and Accountability Act)

Ensures the privacy of health data.

GDPR (General Data Protection Regulation)

A major EU regulation enhancing privacy rights, including the right to be forgotten and heavy fines for non-compliance.

Intellectual Property (IP)

Legal protections for intangible assets created by individuals or firms.

Five-Step Ethical Analysis Process

A method to analyze ethical dilemmas through identifying facts, conflicts, stakeholders, options, and assessing consequences.

Golden Rule

Do unto others as you would have them do unto you.

Immanuel Kant's Categorical Imperative

If an action is wrong for everyone, it is wrong for anyone.

Slippery Slope Rule

If an action can't be repeated without negative consequences, it should not be done.

Utilitarian Principle

Choose actions that maximize overall benefit.

Risk Aversion Principle

Take actions that minimize harm.

No Free Lunch Rule

Assume everything is owned unless otherwise stated.

Responsibility

Taking ownership of decisions and their consequences.

Accountability

Mechanisms to identify who is responsible for actions.

Liability

The ability for individuals or organizations to be held financially or legally responsible for damages.

Data Quality

Poor data quality is the most common cause of system failures.

System Errors

Caused by software bugs, hardware failures, or poor data input.

Acceptable System Quality

Flawless systems are unrealistic, but reliability should be a standard goal.

Employee Monitoring

Companies may monitor employees to maximize productivity, but this can infringe on personal privacy.

Facebook's Data Use

Collects personal information for targeted advertising, raising concerns about data privacy and the ethical use of personal data.

Hardware

Physical components of a computer system (e.g., servers, personal computers, mobile devices).

Software

The programs or applications that run on hardware to perform specific tasks (e.g., enterprise software, mobile apps).

Operating Systems

Manage the hardware and provide the environment for software to run (e.g., Windows, Linux, macOS).

Client/Server Concepts

A system where clients (end-user devices) request services from servers (machines providing resources or services), enabling efficient sharing of data and application execution across networks.

IBM

Primarily known for its mainframe and cloud services. Supports industries like banking, telecommunications, and large-scale enterprise systems.

Oracle

Known for database management systems and enterprise software. Offers solutions in data storage, management, and cloud computing.

Cloud Computing

Offers scalable, on-demand services like SaaS, PaaS, and IaaS, minimizing the need for extensive in-house IT infrastructure.

Mobile Computing

The growth of smartphones and tablets has made business operations more mobile, enabling real-time communication and access to data.

Big Data & Analytics

Organizations use data analytics to optimize operations, enhance customer experiences, and make informed business decisions.

Artificial Intelligence (AI)

Businesses leverage AI to automate tasks, analyze data, and improve customer interactions.

Competitive Force Model of IT Infrastructure Investment

Aligning IT infrastructure investments with business strategy and market demands.

Total Cost of Ownership (TCO)

Analyzing both direct (hardware, software) and indirect (support, training, maintenance) costs.

Data Hierarchy

Entity: The object or thing (e.g., person, place, thing) on which data is stored.

Attributes

Characteristics of the entity (e.g., name, age, address).

Record

A collection of related fields about an entity (e.g., a person's data).

File

A collection of records of the same type.

Database

A group of related files that store information in a structured manner.

SQL (Structured Query Language)

It is the standard language used for querying and managing databases.

SELECT

Retrieves specific data based on set criteria.

JOIN

Combines tables to provide more information.

PROJECT

Selects specific columns to form a new subset of data.

Relational Databases (RDBMS)

Data is stored in tables (rows and columns).

Primary Key

Uniquely identifies each record in a table.