MELJUN CORTES Introduction to Information System

1

Information Systems

MELJUN CORTESMELJUN CORTES

Copyright Prentice Hall, Inc. 2

Why this presentation is essential?

Learning about information systems will help you participate in key office decisions no matter what the organization

Learning about information systems will help you to understand where you and your company fit in the system

Understanding this will help you to use the right information system at the right time and in the right place


Information Technology as a Competitive Strategy Available technology can

determine if you are profitable or not

Information Technology can: Give access to a world market Improve product & service

quality Aid communication between

employees Reduce costs Increase productivity Improve company morale


Cost, Risk, and Change

IT solutions can be expensive and time consuming

Element of risk in the implantation of IT

Implementing IT means change


Leveraging Information Technology

Increasing sales Increasing market share Creating new business Collecting data at the

source Eliminating the

intermediary Improving customer

service


Information and Decision Making

Qualities of information Completeness of

information Timeliness of information Relevance of information Accessibility of

information


Making Decisions to Produce Products and Services

Strategic ManagementStrategic ManagementTactical ManagementTactical Management

Operational ManagementOperational Management

PlanPlanOrganizeOrganize

LeadLeadControlControl

ResourcesResources FunctionsFunctionsProducts Products

&&ServicesServices

Employees Managers Government Customers Stockholders FinancialInstitutions

Colleges/Agencies Media


Filtering Information

Results in the right information reaching the right decision maker at the right time in the right form Clerical Level

Transaction Handling Operational Level

Exception Reports Tactical Level

What-if Reports Strategic Level

One-time reports, what-if reports, and trend analysis


Types of Decisions

Programmed decisions Address well-defined

problems Information-based

decisions Unstructured decisions


What is an Information System

Information processing capabilities System’s ability to

handle and process information

Information to make better decisions System’s ability to

produce on-demand information

HardwareHardware SoftwareSoftware

ProceduresProcedures DataData

PeoplePeople


What Can an Information System Do

Retrieve Record Update Summarize Select Manipulate

Processing Hard copy Soft copy Control

Output Data Text Images Other digital

information

StorageInput Source data Inquiry Response to

prompt Instruction Message Change


Information System Types

Manual system No hardware No software

Function-based information system Independent of other

systems Integrated information

system Common databases


Getting Data into the System

Online vs. Offline Source Data Source Documents Methods

Batch Processing Transaction-Oriented

Processing


Data Processing System

Activities: Transaction handling Recordkeeping

Action documents Scheduled reports Primarily support:

Clerical personnel Operational-level

managers Inflexible


What is MIS? An MIS is a computer-

based system that: Optimizes the collection,

transfer, and presentation of information throughout an organization

Uses an integrated structure of databases and information flow


Decisions Support Systems DSS are interactive

information systems DSS rely on an integrated

set of user-friendly hardware and software tools

These tools produce information to support management in the decision-making process


The DSS Versus the MIS

MIS supports structured problems

DSS supports semistructured and unstructured problems

MIS is designed and created to support a set of applications

DSS can be adapted to any decision environment


Characteristics of DSS Helps decision maker Semistructured & unstructured

problems Most effective for tactical &

strategic management levels Interactive and user-friendly Uses models, simulations, &

analytical tools Readily adaptable to any decision

environment Interacts with a corporate

database Not used for pre-established

production schedule


The DSS Tool Box

Data Management Data warehousing Data mining

Modeling Decisions involve many

factors Uncertainty and risk present

Statistical Analysis Risk analysis Trend analysis

Applications Development Throwaway systems Support a one-time decision

Planning What-if Goal seeking

Inquiry Graphics Consolidations Application-specific


Executive Information Systems The EIS supposedly offer the

same decision support tools as the DSS

However, each tool is designed specifically to support decision making at the executive levels of management Primarily the tactical and

strategic levels


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


Expert System Example- Printer

Replace technical support people

Knowledge base contains: Means of identifying

problem Possible solutions How to progress from

problem to solution


Intelligent Agents and BOTS Type of artificial intelligence Can act on our behalf We set its goals Agent may work on:

An ongoing goal Sort e-mail

An action triggered by an event

A one-time goal Send an e-mail Deliver a present

Internet intelligent agents growing


Summary Information Technology as a

Competitive Strategy Information and Decision

Making All About Information Systems The DP System and the MIS Decision Support Systems Expert Systems Intelligent Agents and Bots