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Information Systems

Chapter 9a

Acknlowledgement to Computers: Information Technology in Perspective

By Long and LongCopyright 2002 Prentice Hall, Inc.

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Objectives

Importance of information systems

4 levels of users (filtering info)

Information system types

Different decision types

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Why?

Understand your role in a system better

Know what systems are available to you

Be a better user to the IT group

Make good IT management decisions

Info Systems cost A LOT of money

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The Competitive Advantage - GOOD

Access to a world market

Improve quality

Aid employee communication

Reduce costs

Increase productivity

Improve company morale

Serendipitous Surfing: Politics

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Cost, Risk, and Change - BAD

IT solutions can be expensive and time consuming

Element of risk in the implantation of IT

Implementing IT means change

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Information Quality

Quality (GIGO)Quality (GIGO)

AccessibilityAccessibility

CompletenessCompleteness

TimelinessTimeliness

Relevance (Information overload)Relevance (Information overload)

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Strategic ManagementStrategic Management

Tactical ManagementTactical Management

Operational ManagementOperational Management

PlanPlanOrganizeOrganize

LeadLeadControlControl

Clerical LevelClerical Level

ResourcesResourcesResourcesResources FunctionsFunctionsFunctionsFunctionsProducts Products

&&ServicesServices

Products Products &&

ServicesServices

Business System Model

Employees Managers Government Customers StockholdersFinancialInstitutions

Colleges/agencies

Media

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Filtering Information

Clerical Level (Transaction Handling)

Operational Level (Exception Reports)

Tactical Level (What-if Reports)

Strategic Level (One-time Reports, What-if Reports or Trend Analyses)

Clerical Level (Transaction Handling)

Operational Level (Exception Reports)

Tactical Level (What-if Reports)

Strategic Level (One-time Reports, What-if Reports or Trend Analyses)

The right information - the right decision maker

- the right time - the right form.

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Making Decisions

ProgrammedDecisions

Information-BasedDecisions

Well-Defined ProblemWell-Defined Problem

Unstructured ProblemUnstructured Problem

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What Can Info System Do?

Retrieve

Record

Update

Summarize

Select

Manipulate

Processing

Hard copy

Soft copy

Control

Output

Data

Text

Images

Other digital information

StorageInput Source DataSource Data InquiryInquiry Response to Response to

prompt prompt InstructionInstruction MessageMessage ChangeChange

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Information System Types

Manual systemNo hardware

No software

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Transaction Processing Systems (TPS)

Activities: Transaction handling Record-keeping

Action documentsScheduled reportsPrimarily support:

Clerical personnelOperational-level managers

InflexibleMISDSSEIS

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Management Information System

An MIS is a computer-based system that optimizes the collection, transfer, &

presentation of information throughout an organization by using an integrated structure of databases & information

flow.

My Definition: System used to support management activities

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MIS vs. DP

MIS offers greater flexibilityMIS integrates the information flowMIS caters to information needs of all management levelsMIS are more timely and have online inquiry capabilitiesBoosts system securityManagement focused reportsMIS uses an integrated database

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MIS In Action

Airline Airline ReservationReservation

SystemSystem(also, (also,

Inventory Inventory Control)Control)

Airline Airline ReservationReservation

SystemSystem(also, (also,

Inventory Inventory Control)Control)

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Decisions Support Systems

interactive

integrated set of hardware and software tools

produce information to support decision-making process

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DSS vs. MIS

MIS:

structured problems

designed to support a set of applications

DSS: semistructured and unstructured problemscan be adapted to any decision environment

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DSS Characteristics

Helps decision makerSemistructured & unstructured problemsMost effective for tactical & strategic management levelsInteractive and user-friendly; little IT help needed

more. . .

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DSS Characteristics

Uses models, simulations, & analytical tools Readily adaptable to any decision environmentInteracts with a corporate databaseNot used for pre-established production scheduleOften makes helpful chartsEX: Forecasting; Chase MIS statistics warehouse analysis

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DSS Tool Box

Applications DevelopmentQuick application buildingThrowaway systemsSupport a one-time decision

Data ManagementData Warehousing (combine and offer preset relationships)Data Mining (search warehouse for new relationships)

more. . .

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DSS Tool Box

ModelingDecisions involve many factors

Uncertainty and risk present

Statistical AnalysisRisk Analysis

Trend Analysis

PlanningWhat-If

Goal Seekingmore. . .

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DSS Tool Box

Inquiry

Graphics

Consolidations

Application-Specific

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EIS – DSS with a twist

Executive Information SystemJust DSS for executivesEach tool is designed specifically to support decision making at the executive levels of management

Primarily the tactical and strategic levels

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Expert Systems

An Expert System is an interactive system

Responds to questions

Asks for clarification

Makes recommendations

Helps the user in the decision-making process

Simulates human thought process

Reasons, draws inferences & makes judgments (heuristic knowledge)

Information acquired from live domain expertsHighest form of knowledge-based systems, not an assistant system

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Expert System Example

Printer - Replace technical support peopleDiagnosis help (you relate symptoms and it asks for more info)Assistant system (call center; life ins quotes)Knowledge base contains

Means of identifying problemPossible solutionsHow to progress from problem to solution

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Intelligent Agents

Type of artificial intelligenceAgent may work on:

An ongoing goalAn action triggered by an eventA one-time goal

Internet intelligent agents growingScan internet for best priceSort through e-mail for call centerScan internet or a few databases for best vacation possibility

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INFORMATION SYSTEMS

Manual

Data Processing – Filing cabinet

MIS – Timely inquiries, focused reports

DSS – interpret unstructured facts, what if

Expert Systems – move user through process

Intelligent Agents – event triggers

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Objective Summary

Different decision typesStructured, semi-structured, unstructured

4 levels of users (filtering info)Clerical, operational, tactical, strategic

information system typesManual, DP, MIS, DSS, (EIS) Expert, Intelligent Agent

Importance of information systems $$

MIS Solution WorkshopCustomers are complaining that orders are arriving late. Five people handle customer service e-mail every day, sending some standard replies and forwarding the rest. They cannot keep up with the volume. You run the customer service department for a retail bank. People are currently on hold for over 20 minutes sometimes.You are the CEO of a small company. You are planning your budget for next year, and you need to know how much income to expect in the next year. You have been calculating this manually in the past.