1. MIS Management Information Systems Syllabus
What I expect you to do!

2. 11 Labs
You must go to all 11.
2% penalty for first lab missed
5% for 2nd
10% for 3rd
Automatic course failure if you miss a 4th lab.
Remember you can drop the course and take it in a semester where you are less busy.

3. Lab Pre-lab quiz 20% In-lab activity 50% (hard to makeup)
Post-lab question/activity 30%
If you miss a lab, you still have to make it up before the next lab period, otherwise you get a penalty and a zero.

4. Pop Quizzes & IS Speaker Series
About 10 pop quizzes on reading and the IS Speaker Series
You can use your notes
should be easy to get 100’s
Take notes while reading
Take notes while listening to IS Speaker Series
Attend IS Speaker Series talks
Videos will be available in the library

5. Lecture Eventually, I will stop using PowerPoint.
70% of exam questions are answered in lecture
You can’t do well in this course unless you come to lecture

6. Exams
Exams 1 and 2 given in class
Cumulative final exam

7. Group Project
Propose an idea for how to improve a business using technology
Research the business and technology
Log your hours via Google Spreadsheet
Make an ePortfolio (individual)
Make a group Wiki (to share your research)
Make a group presentation about your idea

8. Summary Attend 11 labs Attend lecture Actual work
One miss won’t kill you
Attend lecture
2-3 misses won’t kill you
Actual work
11 pre-labs
10 post-labs writeups
10 pop quizzes
1 group project (with individual component)
2 in-class exams
1 final exam

9. MIS Management Information Systems The Fundamentals
Stuff that is not in the book

10. Management Information Systems (MIS)
What does this term really mean?
Management
a major at Siena,
a good occupation.
the act of managing; handling, directing, controlling.
A well-known manager on TV

11. MIS applies to many fields
More than just Information Systems used by Managers?
The study of systems that help with the management of information
The information could be for
Accounting
Finance
Marketing
Scientific Research
Computer Gaming
Madden 12 Football Player Management

12. MIS helps build understanding
We will study the principles of transforming data into information and then beyond
Correctness
Wisdom
People
Understanding and developing principles and concepts
Knowledge
Computers and Systems
Understanding patterns
Information
Adding value, context, relationships, and patterns
Data
Understanding

13. A better course title for MIS
I would call this course… Computer Systems for Managing Information
Computer being used to manage information poorly.

14. Why do you have to take MIS?
Chapter 1 answers this question (read it).
Your ability to manage information using technology will determine your success in any business field.
Contrary to media portrayals, high school-aged students are not masters of technology, but often clueless consumers of new technology ?

15. IT vs. IS
First, does anyone know the difference between INFORMATION TECHNOLOGY and INFORMATION SYSTEMS ?

16. INFORMATION TECHNOLOGY INFORMATION SYSTEMS VS.
Innovations in storing, transmitting, and sharing information
hardware devices like:
Telephone
Computer Printer
Wireless Network Router
Also includes software, languages, and protocols:
Photoshop, Java, Flash, HTML, HTTP, etc.
1. Computer hardware and 2. Software,
but also includes:
3. People
4. Processes, and
5. Data
Familiar Information Systems
Twitter
iTunes
Blackboard

17. Software is always part of bigger systems
Consider these examples
Twitter
Pointless without people?
iTunes
Little value without data (music, movies, etc.)
Blackboard
Useless without procedures

18. Hardware is always part of bigger systems
Consider these examples
iPhone
Pointless without people
Solid State Hard Drive
No value without data (files, movies, etc.)
Xbox Kinect
Difficult to use without procedures

19. Information Technology is part of Information SystemsIT
People users, administrators, owners, etc.
Hardware PC, iPad, Android Phone, RFID Scanner, Laser Printer, etc.
Data numbers, words, images, video, etc; computerized (digital) or on paper
Software Excel, Access, Blackboard, iTunes Chrome, Windows 7, Oracle
Procedures often documented in writing

20. IT is practically free
Cost of labor and natural resources keep rising.
But, every 18 months, the cost of information technology decreases by nearly 50%
See Figure 1-1 in the book
Data communication and storage are so cheap that CEO’s consider it free.
Businesses leverage this free commodity.
And, consumers are happy to pay for it.

21. Leveraging Technology
In 1992, I bought Metallica’s Black Album for $ at store called Record Town.
Today, you can download new albums on iTunes for $9.99.
Information Technology makes delivering music cheaper
right or wrong?
This is great for the consumer

22. How Leveraging Technology Works
Those who purchase “cheap” songs on iTunes often
Pay $60-$100/month for their iPhone service
Pay $ every three years for a MacBook

23. How Leveraging Technology Works
Consumers pay for Apple’s store (iTunes) by buying Apple hardware
Apple Corporation can sell music without
moving stuff in trucks
building a store in your town
hiring clerks
BTW: If you own a PC, Microsoft leverages consumers in many other ways.

24. Famous quote
“Instead of learning how to program computers kids minds are being programmed by computers.”
Who said it? When?
We rely so much on technology that it changes the way we think and behave.
This change is good if you are a master of technology
its bad if you are
a grunt user/employee
clueless consumer of technology

25. Why I care?
I teach Computer Science (CS) majors how to blow up your business job!
In CS, we build software systems that replace costly human labor to help businesses become more profitable
unless you have ideas on how to use information systems to improve business, you might not have a “thinking” career in business.

26. What lab might look like if I were handsome and smiled
How will I help you?
By making you do lab activities where you will
Use computer systems to solve problems and manage information
Labs are important because
You get to actually do stuff
Then, you think about what you did
Then, I tell you why it was important
What lab might look like if I were handsome and smiled

27. Why you should care about labs.
You need to know
How to use information systems in non-routine ways.
How information systems can help
Solve problems
Make better decisions
Create strategic advantages
What better way to learn this than to actually do it on computer?

28. Will doing the labs make me a master of technology?
You have to do 5 other things
But, these things will also help you
get an A in the course and
avoid a grunt-like career with no job security
Do you want to know the 5 things?

29. #1 Read Abstract Reasoning Reading hones your abstract thinking skill
Pictures & video are nice, but written words
help you imagine
help you build your own mental model of the world
If you rely on others to build a model for you,
You will not understand things as deeply
and, you’ll struggle to solve problems on your own
Read the text book
Read the lab instructions
Read your own writing before you submit it
If you don’t understand what you are reading, read it again 2 more times!
And, if someone still has to explain it to you, read it a 3rd time again so you understand your misunderstanding

30. #2 Look at the world as a system
1. Goal
2. Observe
Input
Output
3. Action
Identify goals
Make honest observations about the world around you, and connect inputs with outputs
Take action to achieve your goal

31. #2 Look at the world as a system
Input
Output
Connect input and outputs
Goal: I want to get an A.
Observations:
Studied 2 hours for exam1 and got a B.
Studied 4 hours for exam2 and got a A-.
Input: hours studied
Output: grade
Why this helps
Some systems are poorly designed and unfair, some are fair and consistent.
Regardless, understanding how a system works is the key to controlling the system and achieving goals.

32. #3 Share ideas and be open to criticism
McDonald’s Grunt:
Goal: To be a manager
Observation: We cook too many fries at once. By the time we sell them all, the last order is cold.
Idea: We should cook half as many fries, but twice as often.
Idiot Night Manager:
Criticism: Dude, we are going to have to work harder to fill the fryer twice as often.
Grunt:
Openness: You are right, but my goal is to make crispy, tasty fries and I’m not afraid to work harder.

33. #4 Experiment (test what works the best)
Grunt:
Filling the fryer at 50% capacity but twice as often is too much work.
but filling it at 66% capacity but 1.5 times as often works out great
Also we can change the % based on how busy we are.
Idiot Night Manager:
Good job, nerd!
District Manager:
Since we hired Grunt, we are selling more fries
customers say the fries are fresher and crispier
Outcome:
Grunt gets promoted to “thinking” position
Idiot Manager has to follow Grunt’s nerdy fry cooking process any way.

34. #5 Identify bad ideas and do the right thing.
Student #1 goal
My goal is to minimize the amount of work to do on this project.
Student #1 idea
I will just copy text from Wikipedia.
Student #2 identifies bad idea
That’s plagiarism and it might lead to you having to do more work.
Outcome:
Student #1 gets
a zero on project,
fails the course
must take the course again
must redo project next semester anyway
Student #2 ends up doing a lot less work on the project than student #1.

35. How these steps apply to MIS
NOT
To leverage information technology and systems in your future career/business, you must often
use technology and systems in new/innovative ways,
do things you’ve never done before with very little help.
This is NOT easy.
It requires: reading, making systematic observations, collaborating, experimenting, and eventually doing the right thing.

36. How can I help to make it easy?
My job as your teacher is NOT to show you what buttons to press.
My job is to teach you non-routine skills, i.e., strategies for how to press the right buttons.

37. Technology & Non-routine skills
Abstract Reasoning
reading is essential in developing thoughts and ideas
technology cannot put thoughts in your mind like reading can
Systems Thinking
business itself is a system with input and output
business systems are rich with technology
Collaboration
sharing your ideas and handling criticism positively makes for better ideas
technology impacts how people collaborate

38. Technology & Non-routine skills
4. Experimentation
try things, take risks, be curious
don‘t just use technology, experiment with it
5. Ethics & Integrity
doing the right thing will eventually pay off.
Technology makes it easier to cheat, but also easier to catch cheats

39. Don’t be afraid to “press new buttons”
But, before you press a button, read and think
What is your goal?
Goals are often formalized in writing.
What does the button do?
Buttons are often described in documentation (i.e., writing).
After you press the button, think and reflect
Did the button do what is was supposed to?
Did pressing it get you closer to your goal?

40. Chapter 1 take away Non-routine skills that are valued in MIS?
Abstraction
System Thinking
Collaboration
Experimentation
Ethics & Integrity (this one is mine)

41. Good Information Systems vs. Bad ones
Dr. Breimer’s Goal: I want information about you on a roster cheat sheet so I can get to know you all better.
My system (a bad one):
Students make documents (Word)
Student upload them (Blackboard)
I download them and grade them (Blackboard)
I mash them up (Word)

42. My bad system People: Instructor and 30 students
Software: Word and Blackboard
Hardware: Your computers and mine
Processes: The pre-lab instructions (written) my process (in my head)
Data: Your names, majors, pictures, interesting facts about you, your goals

43. My bad system Input: Information entered into 30 Word documents
Processing: A lot of cutting, pasting, screen capturing your photos, cropping them.
Output: My roster cheat sheet
Feedback: I keep track of how long it takes; it takes me about 1.5 hours to make my cheat sheet.

44. Why is it bad?
on your computer
on blackboard
on my computer

45. How could it be better?
on the cloud

46. Major take-away
A better system can reduce the amount of work, but not necessarily for everyone involved.
In your career, do not think a system is bad just because it makes *you* do more work.
Companies care more about the aggregate work and you may be on the wrong end of the pyramid of success.

47. A bad system
You and your partner are working collaboratively on a Word document
Goal: To share document with partner
Information System:
Software:

48. Emailing attachments: a bad system
on your computer
your sent mail/inbox
partner’s inbox/sent mail
partner’s computer V1 V1 V1 V1 V2 V2 V2 V2 V3 V3 V3 V3

49. Using WinSCP a better system?
your z: drive
partner’s z: drive V1 V1 V2 V2 V3 V3

50. Take-aways from Intro Lab
WinSCP is great way for you to access your lab work from home and copy a file for your partner.
ScreenHunter is a nice way to “take a picture” of your computer screen.
Google, when used thoughtfully, is perhaps the greatest software component ever created.
All of these are software components that can be part of bigger systems.

51. Take-aways from Intro Lab
The software and hardware you decide to use greatly impacts how a system works.
Software is often designed with a goal in mind.
The software designer’s goal and your goal in using it may be different
was not designed to help people collaboratively edit a document
Neither was WinSCP
Google Docs was
But, to innovate/improvise with the tools you have is key.

52. Chapter 1 Key Topic
What are the 5 Components of an Information System?

53. Components of an Information System
Actors
Instructions
Bridge
Hardware
Software
Data
Procedures
People
Computer Side
Human Side
Automation: Move work from human side to computer side
More difficult to change

54. Components of an Information System
The benefits of automation is not just to do things automatically.
What are the real benefits of automation?
Automation: Move work from human side to computer side
More difficult to change
Hardware
Software
Data
Procedures
People
Computer Side
Human Side

55. 2 big motivations behind IS automation
Agility
Growth
People are often
slow to change
Often hard to retrain
Replacing people with computers (hardware) helps businesses become more agile.
Business processes can be changed easier if they are implement with hardware or software.
Procedures are often
ambiguous
not formally defined
tedious
difficult to follow
Replacing procedures with programs (software) helps business to grow
Business processes can be scaled –up easier if they are implemented with software or hardware.

56. iTunes as a System Hardware Software Data Procedures People Examples?

57. iTunes as a System Hardware Software Data Procedures People
User devices:
iPhone
iPod
iPad
MacBook
MP3 Player PC
Apple side:
Media Server
Infrastructure:
Network
Routers
User devices:
iTunes itself
Mac OS
Apple side:
Media Content Management System
Media itself
Music
Movies
TV Shows
Apps
Games
User:
Create account
Login
Buy song
Apple Side:
Add new song
Organize songs
Advertise new songs
Content Providers:
Upload song
Get money
User: Consumer who buys songs,
Apple :
System admins
Programmers
CSR
Marketers
Content Providers:
Artists, Record Studios, App Developers, Colleges

58. Blackboard as a System Hardware Software Data Procedures People
Examples?
Examples?
Examples?
Examples?
Examples?

59. Blackboard as a System Hardware Software Data Procedures People
User devices:
PC Laptop
Admin side:
Web Server
Database Server
Infrastructure:
Network
Routers
User devices:
Web Browser Excel
Admin side:
Blackboard system itself
Database tools
Student Grades
PowerPoint files
Word Documents
Assignments
Project Descriptions
Messages
Calendar items
Student:
Login
Submit assignment
Check grades
Faculty:
Enter grades
Upload project description
Admin side: Create courses
Enroll students
Students
Faculty
System Admins

60. Information System View
General System View
Information System View
VS.
Concrete & Real (i.e., not abstract)
5 components:
Hardware
Software
Data (bridge/center)
Procedures
People
Conceptual View (i.e., abstract)
8 properties:
Stakeholder
Goal
System Boundaries
Input
Processing
Output
Feedback
key in understanding systems
Control

61. iTunes Stakeholder Goal Input Processing Output Customer
Musician/ Artist

62. iTunes Stakeholder Goal Input Processing Output Customer
wants to buy a cheap song
Song selection, credit card number (money)
Check to see if card is valid,
Start download of song
Decoded audio file, can be copied on up to 8 devices (song)
Musician/ Artist
Wants to sell their music
Artist account information, encoded audio file (song)
Create artist account, song added to system
Electronic funds added to account for each song sold (money)

63. iTunes: Customer Feedback
Stakeholder
Goal
Input
Processing
Output
Customer
wants to buy a cheap song
Song selection, credit card number (money)
Check to see if card is valid,
Start download of song
Decoded audio file, can be copied on up to 8 devices (song)
Examples of Feedback:
Message: “Lagy Gada not found, did you mean Lady Gaga.”
Message: “you have $4.99 left on your gift card.”
Message: “this song is authorized on 5 devices.”
Message: “5 minutes left to download song.”

64. Feedback from a user/customer perspective
Messages that let you know what is happening
Information about your usage of the system
Is your input good?
Is your output on the way?
Helps you
correct mistakes
enter input
understand the output

65. iTunes: Artist (content provider) Feedback
Stakeholder
Goal
Input
Processing
Output
Musician/ Artist
Wants to sell their music
Artist account information, encoded audio file (song)
Create artist account, song added to system
Electronic funds added to account for each song sold (money)
Examples of Feedback:
Message: “Your song X has been purchased 74 times.”
Message: “County is not a valid category for song X.”
Message: “You have not uploaded an image for your band.”
Message: “5 minutes left to upload song Y.”

66. Feedback from an artist perspective
Messages that let you know what is happening
Information about your usage of the system
Is your input good?
Is your output on the way?
Helps you
correct mistakes
enter input
understand the output

67. Key Concept: Feedback is relative to the stakeholder/goal.
Notice how similar the feedback is for customers and artists.
Why?
They are both the same kind of stakeholder.
Both users of iTunes.
Symmetric goals
Buy song
Sell song
But, iTunes has another stakeholder! Who?

68. iTunes: System Owners perspective
Stakeholder
Goal
Input
Processing
Output
Apple Corporation
Sell media (music, apps, movies, etc.)
Provide content to add value to iPhone, iPads, etc.
New features
New types of media
Create new user accounts Add new media
Promote media
Increased usage, exposure, market share
Increased
sales (money)
Examples of Feedback:
Top selling songs, shows, apps, etc.
Login/usage report including top devices used (i.e., iPhone, iPod Touch, iPad, MacBook, PC, etc.)
Sales by media type (music, movies, etc.)

69. Feedback from the system owner’s perspective
Messages that tell you
if the system is working
how well it’s working
how close you are to achieving a goal
Apple did NOT create iTunes to generate a sales report?
The sales report is feedback, not output.

70. Pop Quiz #1 Information Systems have 5 components.
What 2 are part of the human side?
What 2 are part of the computer side?
Which one is the bridge?
Describe Moore’s law?

71. Why IT matters? Aeronautical Technology Information Technology
Jet liners today are actually
Slower than ones from the 80’s
More expensive to build
Higher total cost of ownership
Computer of today are
1000 times faster than the ones from the 80’s
1/4th the cost
Cost less than the electricity to power them

73. System Boundaries & Data Flow
1. Goal: Make a profit off the selling of music
2. Stakeholder: Apple Corp.
3. Information System Boundaries
8. Control:
New Features
People:
Customers
Musicians
Hardware:
Media Server
User devices
7. Feedback:
Usage Reports
Software:
iTunes
Data:
Songs
Account Info
Procedures:
Buy song
Sell song
4. Input:
More musicians
5. Processing: Charge customers, distribute songs, organize musicians, promote
6. Output: Electronic Funds

74. 3. Information System Boundaries
Lady Gaga Perspective
1. Goal: Sell my music
2. Stakeholder: Lady Gaga
3. Information System Boundaries
8. Control:
promote new song
People:
Customers
Admin
Hardware:
Media Server
User devices
7. Feedback: Top Selling Songs
Software:
iTunes
Data:
Songs
Account Info
Procedures:
Categorize
song
4. Input:
New songs
5. Processing: Charge customers, distribute songs, promote
6. Output: Electronic Funds

75. Dissatisfied Customer Perspective
1. Goal: Buy my favorite music
2. Stakeholder: iTunes Customer
3. Information System Boundaries
7. Feedback: “AC/DC not found”
8. Control:
Pick a new song
Or stop using iTunes
People:
Admin Musician
Hardware:
Media Server
User devices
Software:
iTunes
Data:
Songs
Account Info
Procedures:
Create new account
4. Input:
Song Selection
5. Processing: Charge customers, distribute songs, promote
6. Output: A digital song

76. Satisfied Customer Perspective
1. Goal: Buy my favorite music
2. Stakeholder: iTunes Customer
8. Control:
Buy an iPod so I can enjoy Buckethead on the go
3. Information System Boundaries
7. Feedback: “Buckethead album on sale”
People:
Admin Buckethead
Hardware:
Media Server
User devices
Software:
iTunes
Data:
Songs
Account Info
Procedures:
Create new account
4. Input:
Credit Card #
Song Selection
5. Processing: Charge customers, distribute songs, promote
6. Output: A digital song

77. Key Concept: Feedback is not output
“you have $4.99 left on your gift card.”
Consumers do NOT login to iTunes to find out how much money they have left on a gift card.
They spend the gift card
“County is not a valid category for your song.”
Artists to NOT login to iTunes to figure out how to spell “Country.”
These messages are forms of feedback, not output!

78. Feedback
Output
VS.
All feedback is a form of output because it comes out of the system
But, feedback is specific output that
helps stakeholders use a system
tells owners if a system is working
is more directly connected to the goal or purpose of a system. If you want to buy a song from a system, the output is the song. What if the goal of a system is to generate a sales report?

79. Great Examples Facebook Cash Register System
Goal: In the 1980’s McDonalds wanted to track sales in real time so they invest in a computerized cash register system. Real time sales reporting will help them improve their supply chain. Sales Report Output or feedback?
Goal: In 2008, McDonalds wanted to use social networking to distribute coupons to better promote its new menu items. Hopefully sales for the new items will improve once the coupons are on Facebook? Sales Report Output or feedback?

80. Great Examples Blackboard Blackboard
Goal: Professor wants to share grades with students. Problem: Students keep asking for their grades in class Investigation: Professor notices that students have never logged in. Solution: Professor shows students how to login. Student Login Report Output or feedback?
Goal: Professor wants to track if students are clicking on the assigned case studies Input: Case Studies (Word Documents) Processing: Students login, navigate to case studies, click on document, Blackboard tracks the clicks. Student Click Report Output or feedback?

81. Input vs. Control Input is what you put into the system.
It is typically processed in some way, which directly or indirectly helps to produce output.
You input fuel into a car and the car produces forward movement
From Apple’s perspective, you put musicians and customers in iTunes and money comes out.
Input is usually a noun: Fuel, a song, a grade, money, raw data, potatoes, a musician.
Control is how you might change the system
Control is usually a verb.

82. Examples of System Control
Deep Fat Fryer: Raise the cooking temperature
Facebook: Restrict wall posting to only close friends
Blackboard: Show only my active courses
Assembly Line: Increase production by 20%
iTunes: Block artists from uploading Microsoft file formats
Furnace: Limit the output to 71 degrees

83. System Control Systems have variables that can be changed Variable:
And parameters that cannot be change
Variable:
Assembly line can be set to output between 0 and 20 cars per minute
Output is set to 10
Parameter:
20 cars per minute is the maximum

84. Critical Thinking Question
Setting the thermostat to 68 degrees
Is this an example of input, output, processing, control or feedback.

85. Analysis Technique Setting the thermostat to 68 degrees
First ask two questions:
Who is the stakeholder?
What is their goal?

86. Analysis Technique Setting the thermostat to 68 degrees
Who is the stakeholder? Me
What is their goal? To keep the room temperature at 68 degrees

87. Analysis Technique Setting the thermostat to 68 degrees
“setting” is a verb
Could be processing or control
Control can change/invoke processing but may not produce output.
Processing directly leads to output.
What if there is no fuel?
What if the temp is already 68 degrees?
“Burning fuel” is the process
“Heat” is the output.

88. Analysis Technique Setting the thermostat to 68 degrees
“68 degrees” is a noun, a number, a temp value
Could be input, output, or feedback.
Are you putting this value into the system our does the system spit out this number?
Does this tell you if the system is meeting the goal?

89. Special Topic
How are Information Systems used in throughout businesses?
Are there different types or categories?

90. Information Systems support all levels of a business’s hierarchy
Strategic
Decision Making
Executive Level
Tactical Decision Making
Management Level
Business Processes Operations Level

91. Information Systems Support all types of employees
CEO
President
Strategic
Decision Making
Executive Level
VP Finance
Research
Director
District Manager
Tactical Decision Making
Management Level
Dean
Production Manager
Designer
Night Manager
Account Supervisor
Graphic Artist
Teacher
Business Processes Operations Level
Assembly Line Worker
Cashier

92. Abstract Thinking & Experimentation
Be aware of your company’s goal in using Information Systems
Don’t mistaken your ignorance for a stupid system.
Read the system’s instructions, help documents, and manual if available.
And, use the web to find answers
Don’t be afraid to experiment with systems
If you fail, backtrack and try again
Try to find the best process to achieve your goal.
Don’t just settle on a process that works

93. Computer Information Systems first supported the Management Level
Early 1980’s
Strategic
Decision Making
Executive Level
Paper Reports
Spreadsheet Program
Data Import
Store Information in Computer Files instead of Paper Files
Raw Data Entry
Business Processes Operations Level

94. Management demanded specialize systems and pushed data entry to Operational Level
Late 80’s
Strategic
Decision Making
Executive Level
Paper Reports
Accounting Information System
Electronic Reports
Raw Data Entry
Data Entry System

95. Each manager wanted their own custom system for their Functional Area
Late 1980’s to early 90’s
Strategic
Decision Making
Executive Level
Financial Information System
Accounting Information System
Production Information System
Account Data Entry System
Finance Data Entry System
Inventory Data Entry System
Assembly Line
Control System

96. Executives wanted integrated, real-time information (no more paper reports)
Mid 1990’s
Executive Information System
Financial Information System
Accounting Information System
Production Information System
Account Data Entry System
Finance Data Entry System
Inventory Data Entry System
Assembly Line
Control System

97. Functional Systems
In in the early 1990’s, Information Systems were focused on the narrow needs of specific Functional Areas
Accounting – Inventory Control
Finance – Investment Reporting
Operations - Production Control
Human Resources – Benefit Management
Marketing – Sales Management

98. Enterprise Systems Could Accounting and Finance use the same system?
Executives notice that
fast, accurate information gave their company a strategic advantage.
Money was being spent on very similar systems for each Functional Area
Could Accounting and Finance use the same system?
Could all the systems be integrated?

99. Studying Systems
Large companies had so many information systems that you could actually study them like animals.
Mammals, Birds, Reptiles, Fish, etc.
Different families
Different species
This is called a taxonomy
helps you understand similarity and difference
Information Systems also have a taxonomy.

100. Operations & Production
Large companies replaced many “functional systems” with one large “enterprise system”
Late 90’s and 2000’s
Executive Portal
Enterprise
System
(central database) HR
Reports
Financial Reports
Marketing
Reports
Accounting
Reports
Production Reports
Data Entry Framework
Finance
Accounting
Operations & Production
Marketing HR

101. CMCC Lab Computer Mediated Communication (early innovations)
instant messaging
Collaboration (more recent innovations)
shared documents
digital whiteboard

102. Enterprise Collaboration Systems
CMCC  ECS
Enterprise Collaboration Systems
Companies had many independent systems in different departments
(Outlook Express)
Scheduling (r25 system)
Video & Teleconferencing (Cisco system)
Companies now value having one unified system
Outlook ( , scheduling, task management)
Lotus Notes (same)
Google Apps

103. CMCC Lab & Group Project
What you needed to do in lab..
Worklog complete and shared with me
Google Calendar complete with your schedule
Reoccuring group meeting (5 of you should be free)
One meeting with me in March (2 of you should be free)
About Us page on Google Site with links to each group member’s ePortfolio

104. CMCC Post Lab! Ignore the Post-lab on Blackboard! Project Proposal
We are doing a special post-lab
Project Proposal
Each team member will list companies, technologies, and one idea.
Due next Monday/Tuesday
Then, meet with your team and agree on the “best” idea.
Preliminary research and final “idea” are due by February 29th

105. Taxonomy of Systems
Large companies had so many information systems that you could actually study them like animals.
Mammals, Birds, Reptiles, Fish, etc.
Different families
Different species
This is called a taxonomy and it helps you better understand the similarity and difference between animals.
Information Systems also have a taxonomy.

106. Classic Taxonomy of Information Systems
All Information Systems
Operational Systems:
Systems that Support Operations
Management Systems:
Systems that Support Management
EIS
Executive Information
Systems
DSS
Decision Support
Systems
MIS
Management Information
Systems
ECS
Enterprise Collaboration
Systems
TPS
Transaction Processing
Systems
PCS
Process Control
Systems

107. Functional vs. Enterprise
An attribute of a system, not a category in taxonomy.
Analogy: Some lizards are Herbivores, some Carnivore, and some Omnivores.
Some DSS’s can be Functional, some Enterprise, and some Cross-Functional.
Functional
Tailored to the goals of one functional business unit (Accounting, Marketing, HR, etc.)
Enterprise
Tailored to the goals of the entire company; typically used by all units
Cross-functional
Tailored to two or more functional business units, but not all.

108. Another Taxonomy All Information Systems Cross-Functional Systems:
Two or more area, but not all
Enterprise Systems:
Integrates all functional areas
Functional Systems:
Focused on one functional area
EIS
Executive Information
Systems
ECS
Enterprise Collaboration
Systems
MIS
Management Information
Systems
DSS
Decision Support
Systems
TPS
Transaction Processing
Systems
PCS
Process Control
Systems

109. Transaction Processing System (TPS)
Transaction Processing System (TPS)
Helps to manage transactions
ATM Machine System
Banking Transactions
Cash Register System
Point of Sale Transactions
Accounting System – Checking Account Transactions
Even Pay-per-view or OnDemand is a TPS
What functional areas use TPS?
Accounting, Finance, Operations, Marketing, Human Resources.

110. Process Control Systems (PCS)
Monitors and Controls Production Processes (duh)
Often Industrial/Manufacturing Processes
Examples:
Petroleum Refining
Power Generation
Automobile Manufacturing
Making French Fries

111. Enterprise Collaboration Systems (ECS)
Enterprise Collaboration Systems (ECS)
Supports Operations (Surprised?)
Teamwork, communication, and collaboration
Examples:
Chat
Video Conferencing
Calendaring
Journaling
Workflow
File Sharing

112. Management Information System (MIS)
Management Information System (MIS)
Supports Management (duh?)
Analysis & Reporting
Charts, Graphs, Summary Tools
Usually connected to TPS and PCS systems.
Examples:
Banner – Manages College Information (Siena uses it)
Spreadsheet (Excel) – One of the first and most basic
Now considered a tool that is part of a system
Oracle's Corporate Performance Management

113. Decision Support System (DSS)
What-if Analysis, Decision Modeling, Scenario Building, Highly interactive, ad hoc.
Most DSS’s are custom developed for specific companies; very few out-of-the-box products.
One Example:
Enterprise Decision Manager 2.0  Fair Isaac Corporation

114. Executive Information Systems (EIS)
Executive Information Systems (EIS)
Supports high-level strategic management
Uses critical data from other systems (MIS and DSS).
Portal Concept: one place with links to all information
EIS’s integrate external information such as economic developments and news about related markets and competitors. Helps strategic decision making, not just tactical.
Tactical – doing things the right way right
Strategic – doing the right things

115. Information Flow System Information Flow
Executive Information System
Executives
Enterprise Collaboration System
DSS
Managers
System Information Flow
MIS
Information Exchange/ Communication
TPS
PCS
Operational Systems and Staff

116. Information Flow Executives Enterprise Collaboration System Management
Executives
Enterprise Collaboration System
Management
Executive Information System
Managers
DSS
MIS
Operations
TPS
PCS
Operational Systems and Staff

117. Processes vs. Transactions
Are transactions a type of business process or are processes a type of business transaction?
Do transactions involve processing?
Do processes involve transactions?
Confused?

118. Example of a Business Process
Toyota manufactures a Sienna Minivan

119. Example of a Business Process
Exxon-Mobile refines crude oil into gasoline

120. Process Control Systems (PCS)
PCS’s help to
control processes (duh!)
automate processes
speed up processes
make processes more cost effective
generate feedback to better understand processes

121. Business Processes involving Computers and Information
Siena College registers students for classes
Times Union Center checks tickets at door
Doctor’s Office schedules patient visit

122. The transaction component of information processing
Siena College bills a student for classes
Times Union Center sells tickets to customers
Doctor’s Office cashes check from patient

123. Is this a process or a transaction?
Lakisha says, “I want a Big Mac without Mayo!”
Mason enters order into McDonald’s Point-of-Sale Terminal, which he thinks is a stupid system.
Mason says, “duh, umm, that’ll be $3.75.”
Lakisha hands Mason a $5 bill
Mason hands Lakisha $1 and one quarter
17 minutes later… Mason hands Lakisha an undercooked Big Mac with Mayo.

124. Here is the real business process:
Lakisha says, “I want a Big Mac! with no mayo” and Mason enters this order into an Information System and then goes back to picking his nose.
2 minutes later… Aiden stops thinking about Madden 2012, reads the order monitor and places beef patty on grill. After undercooking the burger, he moves it to a processing area
3 minutes later… Hailey stops texting, reads her order screen but ignores “no mayo.” She places burger on bun with lettuce, tomato, and lots of mayo, and moves it to a receiving area, but forgets to press the “order complete” button so no one knows its ready.
12 minutes later… Lakisha says, “Where the **** is my Big Mac?” and Mason hands Lakisha a Big Mac with lots of mayo that is undercooked and has been in the receiving area for 12 minutes.

125. Process vs. Transaction
McDonald’s “makes” a hamburger
McDonald’s takes customer’s money and gives customer a hamburger.

126. Process vs. Transaction
A Process
A Transaction
The steps involved in
transforming raw materials into a product
providing a service
FYI: taking a customer’s money is not a service
Information Processing: Transforming Raw Data into useful Information
Usually involves two entities
customer and business (or C2C, B2B, etc)
Things of value are exchanged
money for a product
money for a service

127. Process vs. Transaction
While a transaction is part of a bigger business process, the transaction does not produce the product or service
Example: Handing a cashier money does NOT produce a hamburger.
What are the key processes in making a hamburger?

128. Process or transaction?
Customer use a credit card to buy their 40 year old brother a $120 StarWars light-saber from Amazon.com.

129. Process or transaction?
Placing 10 lbs of sliced potatoes into a deep-fat fryer in order to cook French fries.

130. Process or transaction?
Time Warner mails a customer a cable TV bill

131. Process or transaction?
Toyota printing 1000 payroll checks for the assembly line workers at a plant in Ohio.

132. Process or transaction?
Siena department heads
develop a schedule of classes and
assign professors to teach the classes.
Students register for classes.
These processes were hell before information systems could help

133. Process Control Systems (PCS)
Information Systems that help control processes, not transactions.
Is a cash register a PCS?

134. What is a cash register these days?
Functionality/Capabilities
Store money in a drawer
Swipe/read a credit card
Connect to VISA/MC/AE
Scan a product’s bar code to get price
Calculate the amount of change
These capabilities
Have nothing to do with making products or services
Have everything to do with transaction of the product.

135. Bored? Offended?
The examples I’m giving you are intentionally simple to eliminate confusion.
Soon we will look at very complex systems and you will be challenged.

136. PCS + TPS + MIS is common
IBM sells McDonalds a system which combines a
Cash Register System (example of TPS) with an
Order Processing System (example of PCS).
Together the TPS and PCS send data to a
Supply Chain Management System (example of MIS)
helps McDonalds streamline its distribution of raw materials (buns, burgers, potatoes).

137. Critical Thinking Question
Observation: The new deep fat fryer at McDonalds has a wireless network adapter.
Question: Is this the stupidest thing you’ve ever heard of or what?
Real Question: Why would you ever connect a deep fat frying to the Internet?

138. Deep Fat Fryer as a Hardware Device
Goals: Fresher fries, less waste
Fryer as PCS Data Source
Amount of Fries cooked is input to other systems
Helps you determine when to change the fryer oil more consistently
Compare to fries sold (from TPS) and you get feedback
If fries sold << fries cooked then we are cooking too many fries.
Fryer as a processing control device
Fryer tells you exactly how far to fill it.
Instead of cooking fries on demand, you always cook fries, but vary the “load” based on historical sales (from TPS).

139. Control vs. Processing revisited
Comparing fries cooked to fries sold to calculate % waste is information processing
Cooking the fries is physical processing, not information processing.
% waste is feedback
Not necessary to cook fries but indicates if you are meeting your goal.
Looking at yesterdays data might not be enough to make good estimates.
Changing the system so it looks at the average for all weekdays is information system control.
Computing this average is information processing.

140. Human Reaction
Imagine if you’ve been working at McDonalds for 10 years and now a device tells you exactly how many pounds of potatoes to put in the fryer.
How might you react?
How should you react?

141. Summary
Information Systems include IT (Hardware and Software) but also People, Data, and Procedures to follow.
Understanding General System requires identifying 8 key components: Goals, Stakeholders, System Boundaries, Input, Processing, Output, Feedback, and Control.

142. Summary
Historically, system have been designed for the 5 core functional units of business.
6 different types of systems emerged: PCS, TPS, ECS, MIS, DSS, and EIS.
More recently, enterprise systems have been developed to integrate systems in all the units.

143. Summary The output of one system could be the input to another.
The output of one system could be feedback to another.
Feedback is information that helps you
Improve a system
Change a system
Control a system

144. Summary
If you clearly define a system’s goals, boundaries, and stakeholder than it is easier to separate input, processing, output, feedback and control.
Just understanding the input and the output of a system is often enough to “figure it out” and “leverage it” to gain advantages.
Leveraging system or designing good systems requires understanding good and bad systems.