1. Information Systems: The Fundamentals The stuff that is not in the book

2. Management Information Systems (MIS) What does this term really mean? Management – is a business field, – a major at Siena, – and a good occupation. Are we going to study Information Systems used by Managers? A well-known manager

3. Will we study Information Systems used by Managers? Yes! But, we will study much, much more MIS really refers to systems that manage information The information could be for – Accounting – Finance – Marketing – Scientific Research – Computer Gaming

4. Why is MIS so important? Chapter 1 answers the question nicely (read it). But, here is my take: – No matter the field, your ability to manage information using new technology will determine your success. – Sadly, most young people are clueless consumers of new technology, not masters of technology

5. Why do business care about information technology? Cost of human labor and 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 is so cheap that CEO’s consider it free. – Businesses are scrambling to leverage this free commodity, whereas consumers are still willing to pay for it

6. Are you a clueless consumer of technology? In 1992, I bought Metallica’s Black album for $16.99 at store called Record Town. Today, you can download most albums on iTunes for $9.99. – Information Technology makes things cheaper! – This is great for the consumer, right or wrong?

7. How Leveraging Technology really works $60/month for iPhone to download a “cheaper” album. $1200-$3000 for a MacBook with a built in store, where you can buy “cheap” movies, games, and more. Apple Corporation can sell media without burning a CD, building a store in your town, or hiring clerks. Apple sells more media with more profit than any store in world history because consumers pay for the store.

8. Famous quote “Instead of learning how to program computers kids are getting 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 clueless user/consumer.

9. Why I care? When I’m not teching MIS, I teach Computer Science majors how to blow up your job! i.e., how to build software systems that replace costly human labor to help businesses become more profitable I feel morally obligated to warn you… – unless you have ideas on how to use information systems to improve business, you might not have a “thinking” career in business.

10. Why you should care about labs. You do not need to know how to build systems (although it helps), but you need to Know how information systems are used to – Make good decisions – Solve problems – Create strategic advantages The best way to learn this is by using Information Systems in non-routine ways.

11. Will taking MIS make me a master of technology? No! But, you can do 5 things outside of this class that will help you become a master of technology – and, get an A in the course – and, avoid a grunt-like career with no job security Do you want to know the 5 things?

12. 5 steps to success Step 1: Read! your text books the lab instructions in this course your own writing before you submit papers or answers If you really don’t understand something you read and need help interpreting it, read it again after someone explains it so you understand your misunderstanding Why? Reading hones your abstract thinking skill Unlike pictures & video, written words help you imagine and build your own model, not someone else's If you rely on others to build a model for you, you’ll never develop abstract problem solving skills

13. 5 steps to success Step 2: Identify goals, make honest observations, and connect inputs with outputs Goal: I want to get an A. Observations: – I studied 2 hours for exam 1 and got a B. – I studied 4 hours for exam 2 and got a A-. Input: more hours studied Output: higher grade The world around is composed of different systems. Some systems are poorly designed, some are well- designed. Regardless, understanding how a system works is the key to controlling the system and achieving goals. This is called systems thinking Input Output

14. 5 steps to MIS success Step 3: Share your ideas and be open to criticism McDonald’s Grunt: We are cooking too many fries at once. By the time we sell them all, the last order is cold. We should cook half as many fries, but twice as often. Idiot Night Manager: But, we are going to have to work harder to fill the fryer twice as often. Grunt: You are right, but I don’t mind working harder. Idiot Night Manager: Good for you dumb ass.

15. 5 steps to success Step 4: Experiment and test things out Grunt: Filling the fryer at 50% capacity twice as often was a lot of work, but filling it at 75% capacity but 1.5 times as often is workable. Also we can change the percentage based on how busy we are. Idiot Night Manager: Grunt, you are a nerd. District Manager: Since we hired Grunt, we are selling more fries because customers say the fries are fresher. Outcome: Grunt gets promoted to “thinking” position, Idiot Manager has to follow Grunt’s nerdy fry cooking process any way.

16. 5 steps to success Step 5: Identify bad ideas and don’t be afraid to do the right thing. Student #1: I want be done with this project, let’s just copy text from Wikipedia. Student #2: That’s a bad idea. Student #1: I don’t care! Student #2: Well, I’m going to do another project on my own. I just don’t feel comfortable copying and cheating. Outcome: Student #1 gets a zero on project, a letter grade reduction, they fail the course and must entirely retake it. Student #2 ends up doing a lot less work than student #1.

17. How these steps apply to MIS In using Information systems, you must often do things you’ve never done before with very little help (we’ll talk about why later). My job as your teacher is NOT to show you what button to press. My job is to teach you non-routine skills, i.e., strategies for how to press the right buttons. NOT

18. Non-routine skills Abstract Reasoning – Step 1… reading is essential Systems Thinking – Step 2… business itself is a system with input and output Collaboration – Step 3… sharing your ideas and handling criticism positively is important and technology can help or hinder. Experimentation – Step 4… try things, take risks, be curious Ethics – Step 5…doing the right thing will eventually pay off.

19. Don’t be afraid to “press a button” But, pressing buttons on your own is not enough in MIS Before you press something, read – What have you been asked to do (the goal)? – Will pressing the button help you do it. After you press the button, think and reflect – What did the button do exactly – Did it get you closer to the goal.

20. Chapter 1 Reading What are the Non-routine Skills that are valued in MIS? – Abstraction – System Thinking – Collaboration – Experimentation What are the parts of an Information System? – Hardware – Software – Data – Procedure – People

21. What Chapter 1 doesn’t cover How are Information Systems used in real businesses? Are there different types or categories? Given a real information system… – What are the inputs? – How does the system process information? – What are the output to a system?

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

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

24. Abstract Thinking & Experimentation Be aware of your company’s goal in using Information Systems – Don’t mistaken your ignorance as 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 – Don’t just settle on a process that works – Try to find the best process to achieve your goal.

25. Business Processes Operations Level Strategic Decision Making Executive Level Computer Information Systems first supported the Management Level Spreadsheet Program (great tool for Accounting Reports) Late 1960’s to late 70’s Store Information in Computer Files instead of Paper Files Data Import Paper Reports Raw Data Entry

26. Strategic Decision Making Executive Level Computer Information Systems Management demanded more specialize systems pushed grunt work to Operational Level Accounting Information System Late 1970’s to Late 80’s Data Entry System Paper Reports Raw Data Entry

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

28. Computer Information Systems Executives wanted integrated, realtime information (no more paper reports) Accounting Information System Mid 1990’s Accounting Data Entry System Financial Information System Finance Data Entry System Production Information System Assembly Line Control System Executive Information System

29. Company executives started to notice how fast, accurate information gave their company a strategic advantage. Previously, Information Systems were focused on the narrow needs of each Functional Area – Accounting – Inventory Control – Finance – Investment Reporting – Operations - Production Control Also, the money spent on all these systems was mindboggling Could these systems be combined or integrated? Strategic Information Systems

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

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

32. Process Control Systems (PCS) Information Systems that help to control processes. PCS’s help to – automate processes – speed up processes – make processes more cost effective – generate feedback to better understand processes

33. 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

34. Business Processes that involve a financial transaction Siena College bills a student for classes Times Union Center sells tickets to customers Doctor’s Office cashes check from patient

35. Is this a business process or a financial transaction? 1.Lakisha says, “I want a Big Mac without Mayo!” 2.Mason enters order into McDonald’s Point-of- Sale Terminal, which he thinks is pointless. 3.Mason says, “duh, umm, that’ll be $3.75.” 4.Lakisha hands Mason a $5 bill 5.Mason hands Lakisha $1 and one quarter 6.17 minutes later… Mason hands Lakisha a Big Mac with Mayo.

36. Here is the real business process: 1.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. 2.2 minutes later… Aiden stops thinking about his Madden 2012 season progress and reads the order monitor and places beef patty on grill. After undercooking the burger, he moves it to a processing area 3.3 minutes later… Hailey looks up from her smart phone, which she is not supposed to use while working, and reads her order screen but ignores the “no mayo” description. 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. 4.12 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 sitting the receiving area for 12 minutes.

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

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

39. Process vs. Transaction While a transaction may involve processing, 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?

40. Process vs. Transaction Transactions – are necessary if the provider of the service or product wants something (usually money) in exchange. Transactions are not always necessary to actually produce a product or service. – Example: McDonalds cooks many Big Macs that do not get sold.

41. Process or transaction? Using a credit card to buy your 40 year old brother a $120 StarWars light-saber.

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

43. Process or transaction? Mailing a customer a cable TV bill

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

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

46. What is a cash register these days? Stores money in a drawer Can swipe/read a credit card Can scan a product’s bar code Can calculate the amount of change to give back to the customer.