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
Organize
Lead
Control
Strategic Management
Tactical Management
Operational Management
Clerical Level
Resources
Employees
Managers
Products &
Services
Functions
Government
Customers
Stockholders
Financial
Institutions
Colleges/
7
agencies
Media
Filtering Information
The right information
- the right decision maker
- the right time - the right form.
Clerical Level
(Transaction Handling)
Operational Level (Exception Reports)
Tactical Level
(What-if Reports)
Strategic Level (One-time Reports, What-if
Reports or Trend Analyses)
8
Making Decisions
Well-Defined Problem
Programmed
Decisions
Unstructured Problem
Information-Based
Decisions
9
What Can Info System Do?
Input






Source Data
Inquiry
Response to
prompt
Instruction
Message
Change
Processing
Retrieve
Record
Update
Summarize
Select
Manipulate
Output
Hard copy
Soft copy
Control
Storage
Data
Text
Images
Other digital
information
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:
MIS
DSS
EIS
Clerical personnel
Operational-level managers
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
management activities
13
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
14
MIS In Action
Airline
Reservation
System
(also,
Inventory
Control)
15
Decisions Support Systems
interactive
integrated set of
hardware and
software tools
produce
information to
support decisionmaking process
16
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
17
DSS Characteristics
Helps decision maker
Semistructured & unstructured
problems
Most effective for tactical & strategic
management levels
Interactive and user-friendly; little IT
help needed
18
more. . .
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)
20
more. . .
DSS Tool Box
Modeling
Decisions involve many factors
Uncertainty and risk present
Statistical Analysis
Risk Analysis
Trend Analysis
Planning
What-If
Goal Seeking
21
more. . .
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
23
Expert Systems
An Expert System is an
interactive system
Responds to questions
Asks for clarification
Makes recommendations
Helps the user in the decisionmaking process
Simulates human thought
process
Reasons, draws inferences &
makes judgments (heuristic
knowledge)
Information acquired from live
domain experts
Highest form of knowledgebased systems, not an
assistant system
24
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
26
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
27
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 $$
28
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.