Day 7
Business Information Systems-the portfolio
MBA 8125
Information technology Management
Professor Duane Truex III
Today’s Learning Objectives
1. Define and describe the repository components
of business information systems (BIS):
Production Databases, Data Warehouse,
Knowledge Repository
2. Define and describe the BIS applications: TPS,
MIS, OLAP (including DSS/EIS/GDSS), Data
Mining, Search Engines, Content Editing and
Production Tools
3. Define and describe the relationships between
the repositories and applications
Professor Truex
MBA 8125
Informatioon Technology management
1
The Business Systems Architecture
DSS,
GDSS
& EIS
Transaction
Processing
Systems
(TPS)
On-line
Analytical
Processing
(OLAP)
(Deductive)
Professor Truex
Data
Mining
Management
Information
Systems
(MIS)
Content
Editing &
Production
tools
Search
Engines
& tools
Data
Warehouse
Production
Database
External
Data
Sources
(Inductive
reasoning)
Knowledge
Repository
Organizational
Memory
Information
System
(OMIS)
Collaboration
and
Coordination
tools
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Informatioon Technology management
Definitions(1): Repositories
• Production Database
– A collection of pre-specified and highly organized(mostly) textual data in a
relational database.
– Used by TPS and MIS.
– Has to be very fast and robust
• Data Warehouse
– Like production database, a collection of pre-specified and highly
organized(mostly) textual data in a relational database.
– Can be slower
– Is not mission critical.
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2
Definitions(2): Repositories,
Continued
• Knowledge Repository
– Storage place for unstructured data and information
– Knowledge is in the linkages between the data and
information (e.g. hyperlinks, maps)
– Knowledge is retrieved through searches
– Search engines add intelligence to a knowledge
repository
Two common implementations:
– Lotus Notes (Knowledge Roach Motel)
– Intranets
Professor Truex
MBA 8125
Informatioon Technology management
Definitions(3): Repositories,
Continued
• External Data Sources
– Databases and knowledge repositories.
– Proprietary (paid)
– Public (free)
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MBA 8125
Informatioon Technology management
3
Definitions(4): Applications
– TPS (Transaction Processing System)
• An organized collection of people procedures, databases, and devices to record completed
business transactions
• Any business-related exchange
– MIS (Management Information Systems)
• An information system that provides aggregated, summarized information to decision
makers.
• Inputs typically is transaction data acquired from TPS
• Outputs are standardized, pre-specified reports
– OLAP (On-line Analytical Processing)
• Targeted query, the user knows exactly what she is looking for
• Used in Decision Support Systems (DSS), Executive Information Systems (EIS)
and Group DSS (GDSS)
– Collaboration and Coordination tools
• email, calendaring,electronic bulletin boards, groupware (Lotus Notes, Groupwise…)
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Professor Truex
Informatioon Technology management
Definitions(5): Applications,
Continued
• Organizational Memory Information System
– The collection of repositories and systems that together preserve an organization’s
history, and make it available for current and future use
• Data Mining
– You don’t know what you are looking for
– The mining software looks for patterns
– Uses automated statistical pattern matching algorithms
• Search Engines
– Tools that let you search through knowledge repositories
– Examples: Alta Vista, Excite
– New developments: natural language processing (Ask Jeeves); Dynamically
created concept maps
Professor Truex
MBA 8125
Informatioon Technology management
4
Definitions(6): Applications,
Continued
• Content Editing & Production tools
– HTML Editors and site management tools:
• Dreamweaver, Frontpage, Netscape Composer
– Word Processors, (e.g. Word, Wordperfect)
– Multimedia presentation tools:
• Static: Powerpoint
• Dynamic/interactive: Dreamweaver
Professor Truex
MBA 8125
Informatioon Technology management
Business Information Systems in
Perspective
• Transaction processing systems provide the raw
material for the other types of information system
within most business organizations.
More
Decision Support Systems
Management Information Systems
More
Dependence
Complexity on external
data
Routine
Transaction Processing Systems
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MBA 8125
More
Informatioon Technology management
5
Transaction Processing System
Transaction
Any business-related exchange
Transaction processing systems (TPS)
An organized collection of people procedures, databases, and devices to
record completed business transactions
Hours
Worked
Pay
Rate
Payroll
Transaction
Processing
Payroll
Checks
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Professor Truex
Informatioon Technology management
Transaction Processing Systems
• Transactions
– Basic business activities such as customer orders, time
cards, and payroll checks
• TPS process the detailed data necessary to update
records about fundamental business operations of
an organization.
• Data should be captured at its source. It should be
recorded accurately, in a timely fashion, with
minimal manual effort, and in a form that can be
directly entered into the computer.
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MBA 8125
Informatioon Technology management
6
Characteristics of Transaction
Processing Systems
• Provide fast, efficient processing to handle
large amounts of input and output
• Perform rigorous data editing to ensure that
records are accurate and up to date
• Are audited to ensure that all input data,
processing, procedures, and output are
complete, accurate, and valid
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Professor Truex
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Example of Source Data
Automation
Customer
Receipt
MIS
Point-of-Sale
TPS
UPC
Scanner
Exception
Report
Time,
date,
quantity
Inventory
Point-of-Sale Transaction Processing System
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7
Management Information System
(MIS)
• An information system that provides
aggregated, summarized information to
decision makers.
• Inputs typically is transaction data acquired
from TPS
• Outputs are standardized, prespecified
reports
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Management Information System
(MIS)
Marketing
MIS
Manufacturing
MIS
Common
Database
Financial
MIS
Professor Truex
TPS
Other
MISs
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8
Outputs of a Management
Information System
• Scheduled reports
– Produced periodically or on a schedule (daily,
weekly, monthly)
– Key-indicator report
• Type of scheduled report that summarizes the
previous day’s critical activities
• Typically available at the beginning of each
workday
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Professor Truex
continued...
Informatioon Technology management
Outputs of a Management
Information System
• Demand reports
– Developed to give certain information at a manager’s
request
• Exception reports
– Automatically produced when a situation is unusual or
requires management action
• Drill-down reports
– Provides increasingly detailed data about a situation
Professor Truex
MBA 8125
Informatioon Technology management
9
Decision Support System (DSS)
An information system that support different decision making styles
through on-the-fly queries and pre-specified models, using data from
internal and external sources, presented according to user preferences
Model
Base
Database
User Interface
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Conceptual Model of a DSS
Internal
Databases
Models
Bases
Model
Database
Management Management
System
System
Interface
to
External
sources
External
Databases
and
models
Dialogue Manager
Professor Truex
User
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10
Decision Support Systems
• Primary characteristic: performs different types of
analyses
– “What-if” analysis
• Makes hypothetical changes to problem and observes
impact on the results
– Simulation
• Duplicates features of a real system
– Goal-seeking analysis
• Determines problem data required for a given result
Professor Truex
MBA 8125
Informatioon Technology management
Decision Support Systems
• An information system that supports different decision
making styles through on-the-fly queries and pre-specified
models, using data from internal and external sources,
presented according to user preferences
• Focus on decision-making effectiveness when faced with
unstructured or semi-structured business problems
• Decision Support Systems can help identify potential mistakes
and provide a structure that makes it more difficult for a
person to make a mistake.
• With the use of decision support systems, employees risk
losing touch with the underlying principles that guide the
enterprise.
Professor Truex
MBA 8125
Informatioon Technology management
11
Artificial Intelligence
• Artificial intelligence
– A field that involves computer systems taking on the
characteristics of human intelligence
• General Categories:
–
–
–
–
Expert Systems
Neural Networks
Case Based Reasoning
Collaborative Filtering
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Components of Expert Systems
Inference
Engine
Subject
Knowledge
Base
Human
Professor Truex
Knowledge
Acquisition
System
Subject
Domain
Experts
User Interface
and
Explanation
facility
User
Interface
User
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Informatioon Technology management
12
AI Applications
• Years of overpromise and underdelivery, but now
new technologies:
–
–
–
–
Voice recognition
Optical character recognition
Handwriting recognition
Search engines
• Tangible results, e.g.
–
–
–
–
Professor Truex
Credit Card Fraud Detection
Stock market prediction
Automated Helpdesks
Great/Annoying Personal Assistants in Office Suite
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Wrap Up
Professor Truex
MBA 8125
Informatioon Technology management
13
A Look ahead…
Professor Truex
MBA 8125
Informatioon Technology management
Study questions
Professor Truex
MBA 8125
Informatioon Technology management
14