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

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.

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.

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 http://www.cs.siena.edu/News_&_Events/IS_Speaker_Series.php Videos will be available in the library

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

Exams Exams 1 and 2 given in class Cumulative final exam

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

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

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

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

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

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

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

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 ?

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

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

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

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

Information Technology is part of Information Systems IT 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

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.

Leveraging Technology In 1992, I bought Metallica’s Black Album for $16.99 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

How Leveraging Technology Works Those who purchase “cheap” songs on iTunes often Pay $60-$100/month for their iPhone service Pay $1000-3000 every three years for a MacBook

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.

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

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.

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

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?

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?

#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

#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

#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.

#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.

#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.

#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.

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.

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.

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

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

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?

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

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)

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

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.

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

How could it be better? on the cloud

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.

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

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

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

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.

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 Email 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.

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

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

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

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.

iTunes as a System Hardware Software Data Procedures People Examples?

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

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

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

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

iTunes Stakeholder Goal Input Processing Output Customer Musician/ Artist

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)

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.”

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

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.”

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

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?

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.)

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.

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?

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

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

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

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

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

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!

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?

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?

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?

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.

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

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

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

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

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

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.

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?

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

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

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

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

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

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

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

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

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

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?

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.

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

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

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

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

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

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.

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

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.

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

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.

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

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

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

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

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

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

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

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?

Example of a Business Process Toyota manufactures a Sienna Minivan

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

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

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

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

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.

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.

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

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

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?

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

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

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

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

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

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

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.

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.

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).

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?

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).

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.

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?

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.

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.

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

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.