Management Information Systems Lecture 1 Instructor: Iman Ahmed El Sayed 1 What is MIS? Management information systems (MIS) is a general name covering the use and study of procedures and technologies by people in order to lead to solving business problems. Began in the mid 1960s and consolidated in the early 1980s 2 A very Important Question Is MIS the same as computer science?!!!!!!! 3 An MIS professional at work A computer scientist in his world Figure 1. Illustrating the difference between MIS professionals and computer scientists 4 5 In Conclusion MIS focuses on both business processes and information technology 6 MIS Advantages Companies are able to identify their strengths and weaknesses due to the presence of revenue reports, employees' performance record etc. which later can help in competing more successfully in the marketplace by improving business processes and operations. Acting as a communication and planning tool through evaluating and efficiently managing departments within an organization. 7 Key Terms Information technology (IT) – can be described as the application of technological knowledge to any aspect of generating, manipulating, and communicating information. (Narrow definition of IT refers to the technical aspect of information systems). 8 Key Terms An information system (IS) refers to a set of interrelated components that collect (retrieve), process, store, and distribute information to support decision making and control in an organization. 9 Examples of MIS used in organizations Customer Relation Ship Management (CRM). Enterprise Resource Planning (ERP) Business Intelligent (BI) Systems DATA WAREHOUSE (Chapter 4) Supply chain management (SCM) Decision Support System (DSS) An Executive Support System (ESS or EIS) Business process management (BPM) 10 Customer Relation Ship Management (CRM) An approach to managing a company's interaction with current and potential future customers. Tries to analyze data about customers' history with a company, to improve business relationships with customers, specifically to drive sales growth. 11 Benefits of (CRM) Enhance ability to target profitable customers. Improved pricing. Integrated assistance across channels Enhance sales efficiency. Customize products and services according to needs. Individualized marketing messages also called as “campaigns”. 12 Examples for (CRM) Good Example: Conclusion: A dentist has invested in a service to send SMS reminders to patients about their upcoming meeting. 1. a new value added service helping the customer. 2. a way to limit the number of late or no- shows. 13 Cont’d: Examples for (CRM) Bad Example: Conclusion: a “personal invitation” from Lancôme to its annual party for special customers through an email which didn’t even include the customer’s name. mass companies need to get better at interfacing with — and attracting — their customers 14 Enterprise Resource Planning (ERP) Is an integrated view of core business processes and a suite of integrated applications maintained by a database management system that can be used to collect, store, manage and interpret data from many business activities, such as: product planning, purchase. manufacturing or service delivery marketing and sales. inventory management. shipping and payment. 15 Benefits of (ERP) Tracks business resources (ex.: cash, raw materials, production capacity) and the status of business commitments: (ex.: orders, purchase orders, and payroll) Share data across various departments (i.e.: manufacturing, purchasing, sales, accounting, etc.). Facilitates information flow between all business functions, and manages connections to outside stakeholders. 16 Business Intelligent (BI) Systems A set of techniques and tools for the acquisition and transformation of raw data into meaningful and useful information for business analysis purposes. 17 Benefits of (BI- systems) Handling large amounts of structured and sometimes unstructured data to help identify, develop and otherwise create new strategic business opportunities. Allow easy interpretation of large volumes of data. Identifying new opportunities and implementing an effective strategy based on insights can provide businesses with a competitive market advantage and long-term stability. 18 Examples for (BI) A fast food restaurant using cloud strategy for food takeaway business. CIC using dashboards in their advising systems to know how many students have done their advising and how many are still in progress, etc. 19 Supply chain management (SCM) Management of the flow of goods and services. Involves the movement and storage of raw materials, of work-inprocess inventory, and of finished goods from point of origin to point of consumption. 20 Benefits of (SCM) Firms with more extensive supply chains become more innovative and productive. Organizations relying on effective supply chains, or networks, compete very well in the global market and networked economy. Improve trust and collaboration among supply chain partners, thus improving inventory visibility and the velocity of inventory movement. 21 Key Concepts Data – streams of raw facts representing events in the organization or in the external environment Information – data that have been shaped into meaningful forms Input – the capture or collection of raw data from the organization or the external environment Processing – the conversion, manipulation, and analysis of raw input into a form that is more meaningful to humans Output – the distribution of processed information to people who will use it or the activities for which it will be used 22 Benefits of IS to the Organization Offers new services (e.g. ATMs allow banks to offer roundthe-clock service) Improved efficiency - Products and services can be produced cheaply (e.g. CAM) Improved decision making - (e.g. the use of enterprise systems, ERP in organizations) IS means expanded e-commerce / e-business (e.g. Barnes and Noble) An investment in IS can support a core competency (e.g. SABRE) IS supports distribution channel management (e.g. UPS) Synergistic information systems (e.g. EDI) 23 Why Study MIS? MIS is a business function, similar to Accounting, Finance, Marketing, Operations Management, and Human Resources You must be IS literate to succeed in an organization today MIS skills enable you to think critically and solve business problems using IT You signal to potential employer that you have an understanding of how IS can be used to meet organizational objectives and goals MIS opens new doors for business graduates (positions as IS/business analysts, IS coordinators, E-commerce consultants, IT specialists, etc). 24