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1
Information Systems
Chapter 9a
Acknlowledgement to Computers: Information Technology in Perspective
By Long and LongCopyright 2002 Prentice Hall, Inc.
2
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.