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

The right information

- the right decision maker
- the right time - the right form.
••Clerical Level (Transaction
ClericalLevel (TransactionHandling)
Handling)
••Operational Level(Exception
OperationalLevel (ExceptionReports)
Reports)
••Tactical Level (What-if
TacticalLevel (What-ifReports)
Reports)
••Strategic Level (One-time
StrategicLevel (One-timeReports,
Reports,What-if
What-if
Reports
Reportsor
orTrend
TrendAnalyses)
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
• Operational-level managers
MIS
DSS • Inflexible
EIS

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.

Simple Definition: System used to support

management activities

13
 MIS vs. Data Processing

• 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

14
Decisions Support Systems

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

15
DSS vs. MIS

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

16
DSS Characteristics

• Helps decision maker

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

more. . . 17
 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

18
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. . .19
DSS Tool Box

• Modeling
• Decisions involve many factors
• Uncertainty and risk present
• Statistical Analysis
• Risk Analysis
• Trend Analysis
• Planning
• What-If
• Goal Seeking

more. . . 20
DSS Tool Box

• Inquiry
• Graphics
• Consolidations
• Application-Specific

21
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

22
 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
23
 Expert System Example

•Printer - Replace technical support people

•Diagnosis help (you relate symptoms and it
asks for more info)
•Assistant system (call center; life insurance
quotes)
• Knowledge base contains
• Means of identifying problem
• Possible solutions
• Path from problem to solution

24
 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
25
 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

26
 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 $$
27
 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.