Management Information System

Hourly 2 Coverage

2009-11-09T00:09:00.000-08:00

Lecture Notes - Hourly 1 Coverage (Incomplete)

2009-10-03T04:35:00.000-07:00

The Fastfood Industry - McDonald's, Rainforest Cafe and Dave & Buster

2009-09-29T02:37:00.000-07:00

Introduction to Strategy and Finding Information on the Web - Lecture 2

2009-09-28T04:57:00.000-07:00

Strategy

Involves changing the overall structure of the firm to give it an advantage over the competition.
Risk and Reward
Creativity
Porter’s External Agents - Customers, Suppliers, Competitors, Government

Cases: McDonald’s Rainforest Café Dave & Busters

Questions:

What is the company’s current status?
What is the Internet strategy?
How does the company use information technology?
What are the prospects for the industry?

Appendix: Finding Information

Organization -

                      Boolean searches
                      You know what you are searching for.
                      You have a vague idea about what you want.

Baxter Healthcare/American Hospital Supply

2009-09-28T02:40:00.000-07:00

Hospitals use a large amount of routine supplies such as bandages and antiseptics. Originally, they purchased them from various suppliers, held them in inventory, and distributed them throughout the hospital as they were needed. This relationship is shown in Figure 1.9. American Hospital Supply (AHS) was one of these suppliers. To gain advantage over their competitors, AHS created a new system and made an offer to the hospital managers.AHS placed computer terminals in hospital locations where the supplies were used (emergency, operating rooms, nursing stations, etc.). As shown in FIgure 1.10 these terminals were connected to the AHS computer.

As hospital personnel removed supplies, they recorded them on the terminals. The computer kept track of the amount of supplies in each location. A list would be printed at the warehouse, and drivers delivered the necessary supplies to each location in the hospital. Monthly usage statistics were sent to the hospital.

The hospital gained because the facility did not need to maintain extra inventory, which saved money and space. Fewer hospital employees were needed, because the supplies were delivered directly to the needed locations. Additionally, the hospital received detailed usage records.

To offer this service, AHS incurred higher costs --largely the cost of creating and maintaining the information system. What did AHS gain in return? As long as it was the only company offering this service, AHS gained a competitive advantage by providing a new service. Hospitals were more likely to choose AHS over the rivals. But what would happen if a competitor created in a similar system? Would the hospitals stay with AHS or switch to the rivals?

Although the answer depended on the prices, hospitals had a strong incentive to stay with AHS. They would encounter various switching cost if they chose another supplier. For example, daily operations would be disrupted while the system was changed. Employees would have to be retrained to use the new system. A rival would have to offer strong price advantages to overcome these costs.

Eventually, Baxter Healthcare, a large manufacturer of supplies, purchased AHS. Of course, over time Baxter had an incentive to cut its costs to maintain higher profits. In the process their delivery service might suffer. Some hospitals apparently experienced problems and returned to in-house stock rooms to eliminate shortages of basic supplies.

Figure 1.9 and Figure 1.10

McDonald's

2009-09-23T09:29:00.001-07:00

McDonald's Corporation has sold billions of hamburgers. Beginning in 1955 with a single drive-in Des Plaines, Illinois, McDonald's has frown to today's system of more than 25,000 restaurants across 115 countries.

As a brand, McDonald's is synonymous with a quality product at a reasonable price. Equally important, McDonald's markets itself as more than a place to get a hamburger. Ronald McDonald, Happy Meals, the clean restaurants and each new product or promotional theme add to the fun that brings more than 40 million customers of all ages to its restaurants around the world each day.

Eighty percent of worldwide McDonald's restaurants are franchised. Each restaurant must meet strict requirements to make the same as all others. This esnures that each time you drive or walk into a McDonald's, no matter where you are, the Big Mac that you order will always be the same taste, size, weight, and quality. It will also be competitively priced.

Legal contracts, quality standards, and performance specifications direct the individual restaurants inthe effort to keep all the food orders the same. What most individuals do not think about when they walk or drive into McDonald's is that McDonald's management information system (MIS)plays a critical role in ensuring the quality and consistency of each sandwich.

McDonald's Corporation maintains a strict requirement that food be fresh and not stored more than a limited amount of time. MIS applications direc managers in the management of employees and the ordering and tracking of hamburgers, buns, potatoes and soft drinks. Because restaurants are not consistently busy throughout the day, the MIS is called upon to assist the manager in maximizing the scheduling of individuals to cook and serve the food. The MIS further helps track restaurants' cash flow and guard against inaccuracy and waste.

As McDonald's add new products and addresses market segments more specifically targeted both ethnically and geographically, the manager must make more complex decisions about eh best mix of products to prepare to serve at each meal and throughout the day.

McDonald's "Made for You" campaign uses a point of sale system to register each custoemr's "Made for you" order. Its "Fresh Tastes" campaign seeks to bring new and more focused products to its customers' attention. Special promotions and communitywide events add additional factors that must be added to the equation that can best be addressed through management information systems.

source: Management Information Systems by Post Anderson

Introduction to MIS - Lecture 1

2009-09-16T00:58:00.000-07:00

Lecture 1

What is MIS?

A combination of computers and people that is used to provide information to aid in making decisions and managing a firm.

Components: Hardware, software, people, procedures and collections of data.

Goal: To enable managers to make better decisions by providing quality information.

Information Technology vs. Information System

Information Technology (IT) - represents the various types of hardware and software used in an information system. It includes computers and networking equipment.

Information System - refers to the interaction between people, processes, and technology. An information system has an information technology component that interacts with the people and processes components.

Data, Information, Knowledge and Wisdom

Data – factual elements

Information – processed data

Knowledge – higher level of understanding such as rules, patterns and decisions

Wisdom – knowledge, experience and analytical skills put together to create new knowledge

E-Commerce and E-Business

Electronic Commerce – selling of products over the Internet.

E-business – a general term which includes using the Internet for other business tasks.

Examples: digital maps, remote data backup and language translation

Types of E-Commerce

1. Business-to-Consumer (B2C) - selling retail products to consumers.

2. Business-to-Business (B2B) - selling at the wholesale level to other businesses.

What do Managers do?

Traditional -organizing, planning and control.

According to Mintzberg:

1.Interpersonal – teaching & leading employees

2. Informational – based on transfer of information

3. Decisional –evaluating alternatives and choosing directions

According to Luthans:

1.Traditional 50%

2. Formal Communication 30%

3. Networking 20%

Decision Process

1. Collect Data

2. Identify Problems and Opportunities

3. Make Choices

Traditional Management

Decentralized Management

Business Trends

Changing business environment

Specialization
Management by Methodology and Franchises
Mergers
Decentralization and Small Business
Temporary Workers
Internationalization
Service-Oriented Business
Re-engineering

Need for faster responses and flexibility

Business Trends and Implications

Specialization

Increased demand for technical skills
Specialized MIS tools
Increased communication

Methodology and Franchises

Reduction of middle management
Increased data sharing
Increased analysis by top management
Computer support for rules
Re-engineering

Mergers

Larger companies
Need for control and information
Economies of scale

Decentralization and Small Business

Communication needs
Lower cost of management tasks
Low maintenance technology

Temporary Workers

Managing through rules
Finding and evaluating workers
Coordination and control
Personal advancement through technology
Security

Internationalization

Communication
Product design
System development and programming
Sales and marketing

Service Orientation

Management jobs are information jobs
Customer service requires better information
Speed

Changing Business Environment

US History: Farmer Laborer Management

Internationalization