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1
Information Systems
Chapter 9a
Acknlowledgement to
Computers: Information Technology in Perspective
By Long and Long
Copyright 2002 Prentice Hall, Inc.
2
Objectives
Importance of information systems
4 levels of users (filtering info)
Information system types
Different decision types
3
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
4
The Competitive Advantage -
GOOD
Access to a world market
Improve quality
Aid employee communication
Reduce costs
Increase productivity
Improve company morale
Serendipitous
Surfing:
Politics
5
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
6
Information Quality
Quality (GIGO)
Accessibility
Completeness
Timeliness
Relevance (Information overload)
7
Strategic Management
Tactical Management
Operational Management
Plan
Organize
Lead
Control
Clerical Level
Resources Functions
Products &
Services
Business System Model
Employees Managers Government Customers Stockholders
Financial
Institutions
Colleges/
agencies
Media
8
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)
The right information
- the right decision maker
- the right time - the right form.
9
Making Decisions
Programmed
Decisions
Information-Based
Decisions
Well-Defined Problem
Unstructured Problem
10
What Can Info System Do?
Retrieve
Record
Update
Summarize
Select
Manipulate
Processing
Hard copy
Soft copy
Control
Output
Data
Text
Images
Other digital
information
Storage
Input
 Source Data
 Inquiry
 Response to
prompt
 Instruction
 Message
 Change
11
Information System Types
Manual system
No hardware
No software
12
Transaction Processing Systems (TPS)
Activities:
Transaction handling
Record-keeping
Action documents
Scheduled reports
Primarily support:
Clerical personnel
Operational-level managers
Inflexible
MIS
DSS
EIS
13
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
14
MIS vs. DP
MIS offers greater flexibility
MIS integrates the information flow
MIS caters to information needs of all
management levels
MIS are more timely and have online
inquiry capabilities
Boosts system security
Management focused reports
MIS uses an integrated database
15
MIS In Action
Airline
Reservation
System
(also,
Inventory
Control)
16
Decisions Support Systems
interactive
integrated set of
hardware and
software tools
produce
information to
support decision-
making process
17
DSS vs. MIS
MIS:
structured
problems
designed to
support a set
of
applications
DSS:
semistructured
and
unstructured
problems
can be
adapted to
any decision
environment
18
DSS Characteristics
Helps decision maker
Semistructured & unstructured
problems
Most effective for tactical & strategic
management levels
Interactive and user-friendly; little IT
help needed
more. . .
19
DSS Characteristics
Uses models, simulations, &
analytical tools
Readily adaptable to any decision
environment
Interacts with a corporate database
Not used for pre-established
production schedule
Often makes helpful charts
EX: Forecasting; Chase MIS
statistics warehouse analysis
20
DSS Tool Box
Applications Development
Quick application building
Throwaway systems
Support a one-time decision
Data Management
Data Warehousing (combine
and offer preset relationships)
Data Mining (search
warehouse for new
relationships)
more. . .
21
DSS Tool Box
Modeling
Decisions involve many factors
Uncertainty and risk present
Statistical Analysis
Risk Analysis
Trend Analysis
Planning
What-If
Goal Seeking
more. . .
22
DSS Tool Box
Inquiry
Graphics
Consolidations
Application-Specific
23
EIS – DSS with a twist
Executive Information
System
Just DSS for executives
Each tool is designed
specifically to support
decision making at the
executive levels of
management
Primarily the tactical and
strategic levels
24
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 experts
Highest form of knowledge-
based systems, not an
assistant system
25
Expert System Example
Printer - Replace technical support people
Diagnosis help (you relate symptoms and it
asks for more info)
Assistant system (call center; life ins
quotes)
Knowledge base contains
Means of identifying problem
Possible solutions
How to progress from problem to solution
26
Intelligent Agents
Type of artificial intelligence
Agent may work on:
An ongoing goal
An action triggered by an event
A one-time goal
Internet intelligent agents growing
Scan internet for best price
Sort through e-mail for call center
Scan internet or a few databases for best
vacation possibility
27
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
28
Objective Summary
Different decision types
Structured, semi-structured,
unstructured
4 levels of users (filtering info)
Clerical, operational, tactical, strategic
information system types
Manual, DP, MIS, DSS, (EIS) Expert,
Intelligent Agent
Importance of information systems $$
MIS Solution Workshop
Customers 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.

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Chapter10_mis.ppt

  • 1. 1 Information Systems Chapter 9a Acknlowledgement to Computers: Information Technology in Perspective By Long and Long Copyright 2002 Prentice Hall, Inc.
  • 2. 2 Objectives Importance of information systems 4 levels of users (filtering info) Information system types Different decision types
  • 3. 3 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
  • 4. 4 The Competitive Advantage - GOOD Access to a world market Improve quality Aid employee communication Reduce costs Increase productivity Improve company morale Serendipitous Surfing: Politics
  • 5. 5 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
  • 7. 7 Strategic Management Tactical Management Operational Management Plan Organize Lead Control Clerical Level Resources Functions Products & Services Business System Model Employees Managers Government Customers Stockholders Financial Institutions Colleges/ agencies Media
  • 8. 8 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) The right information - the right decision maker - the right time - the right form.
  • 10. 10 What Can Info System Do? Retrieve Record Update Summarize Select Manipulate Processing Hard copy Soft copy Control Output Data Text Images Other digital information Storage Input  Source Data  Inquiry  Response to prompt  Instruction  Message  Change
  • 11. 11 Information System Types Manual system No hardware No software
  • 12. 12 Transaction Processing Systems (TPS) Activities: Transaction handling Record-keeping Action documents Scheduled reports Primarily support: Clerical personnel Operational-level managers Inflexible MIS DSS EIS
  • 13. 13 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
  • 14. 14 MIS vs. DP MIS offers greater flexibility MIS integrates the information flow MIS caters to information needs of all management levels MIS are more timely and have online inquiry capabilities Boosts system security Management focused reports MIS uses an integrated database
  • 16. 16 Decisions Support Systems interactive integrated set of hardware and software tools produce information to support decision- making process
  • 17. 17 DSS vs. MIS MIS: structured problems designed to support a set of applications DSS: semistructured and unstructured problems can be adapted to any decision environment
  • 18. 18 DSS Characteristics Helps decision maker Semistructured & unstructured problems Most effective for tactical & strategic management levels Interactive and user-friendly; little IT help needed more. . .
  • 19. 19 DSS Characteristics Uses models, simulations, & analytical tools Readily adaptable to any decision environment Interacts with a corporate database Not used for pre-established production schedule Often makes helpful charts EX: Forecasting; Chase MIS statistics warehouse analysis
  • 20. 20 DSS Tool Box Applications Development Quick application building Throwaway systems Support a one-time decision Data Management Data Warehousing (combine and offer preset relationships) Data Mining (search warehouse for new relationships) more. . .
  • 21. 21 DSS Tool Box Modeling Decisions involve many factors Uncertainty and risk present Statistical Analysis Risk Analysis Trend Analysis Planning What-If Goal Seeking more. . .
  • 23. 23 EIS – DSS with a twist Executive Information System Just DSS for executives Each tool is designed specifically to support decision making at the executive levels of management Primarily the tactical and strategic levels
  • 24. 24 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 experts Highest form of knowledge- based systems, not an assistant system
  • 25. 25 Expert System Example Printer - Replace technical support people Diagnosis help (you relate symptoms and it asks for more info) Assistant system (call center; life ins quotes) Knowledge base contains Means of identifying problem Possible solutions How to progress from problem to solution
  • 26. 26 Intelligent Agents Type of artificial intelligence Agent may work on: An ongoing goal An action triggered by an event A one-time goal Internet intelligent agents growing Scan internet for best price Sort through e-mail for call center Scan internet or a few databases for best vacation possibility
  • 27. 27 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
  • 28. 28 Objective Summary Different decision types Structured, semi-structured, unstructured 4 levels of users (filtering info) Clerical, operational, tactical, strategic information system types Manual, DP, MIS, DSS, (EIS) Expert, Intelligent Agent Importance of information systems $$
  • 29. MIS Solution Workshop Customers 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.