Information Systems

Chapter 9a
Acknlowledgement to
Computers: Information Technology in Perspective
By Long and Long
Copyright 2002 Prentice Hall, Inc.

1
 Objectives

Importance of information systems

4 levels of users (filtering info)
Information system types
Different decision types

2
 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

3
 The Competitive Advantage -
GOOD
Access to a world market
Improve quality
Aid employee communication
Reduce costs
Increase productivity
Improve company morale

Serendipitous
Surfing:
Politics
4
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

5
Information Quality

Quality (GIGO)
Accessibility
Completeness
Timeliness
Relevance (Information overload)

6
 Business System Model

Plan Strategic Management

Organize Tactical Management
Lead
Operational Management
Control
Clerical Level

Products
Products
Resources
Resources Functions
Functions &&
Services
Services

Financial Colleges/
7
Employees Managers Government Customers Stockholders Media
Institutions agencies
Filtering Information

The right information

- the right decision maker
- the right time - the right form.

Clerical
Clerical Level
Level (Transaction
(TransactionHandling)
Handling)
Operational
Operational Level
Level (Exception
(ExceptionReports)
Reports)
Tactical
Tactical Level
Level (What-if
(What-ifReports)
Reports)
Strategic
Strategic Level
Level (One-time
(One-timeReports,
Reports,What-if
What-if
Reports
Reportsor
orTrend
Trend
Analyses)
Analyses) 8
 Making Decisions

Well-Defined Problem Programmed

Decisions

Unstructured Problem Information-Based

Decisions
9
 What Can Info System Do?

Input Processing Output Storage

 Source Data Retrieve Hard copy Data
 Inquiry Record Soft copy Text
 Response to Update Control Images
prompt Summarize Other digital
 Instruction Select information
 Message Manipulate
 Change

10
Information System Types

Manual system
No hardware
No software

11
 Transaction Processing Systems (TPS)

Activities:
Transaction handling
Record-keeping
Action documents
Scheduled reports
Primarily support:
Clerical personnel
MIS
Operational-level managers
DSS
EIS
Inflexible
12
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

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management activities
 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

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MIS In Action

Airline
Airline
Reservation
Reservation
System
System
(also,
(also,
Inventory
Inventory
Control)
Control)
15
Decisions Support Systems

interactive
integrated set of
hardware and
software tools
produce
information to
support decision-
making process

16
DSS vs. MIS

MIS: DSS:
semistructured
structured and
problems unstructured
designed to problems
support a set can be
adapted to
of any decision
applications environment

17
DSS Characteristics

Helps decision maker

Semistructured & unstructured
problems
Most effective for tactical & strategic
management levels
Interactive and user-friendly; little IT
help needed

more. . .
18
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
19
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. . .
20
DSS Tool Box

Modeling
Decisions involve many factors
Uncertainty and risk present
Statistical Analysis
Risk Analysis
Trend Analysis
Planning
What-If
Goal Seeking
more. . .
21
DSS Tool Box

Inquiry
Graphics
Consolidations
Application-Specific

22
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

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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 experts
Highest form of knowledge-
based systems, not an
assistant system

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 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

25
 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
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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 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 $$
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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.