Ch. 04 Information Systems (IS)
Rev. 4: Mar., 2015
Prof. Euiho Suh
POSTECH Strategic Management of Information and Technology Laboratory
(POSMIT: http://posmit.postech.ac.kr)
Dept. of Industrial & Management Engineering
POSTECH
Contents
1
Information System
2
Components of Information System
3
Technical & Behavioral Approaches to MIS
4
Role of IS
5
Types of Information Systems
6
DQ & ECQ
Information System (1/3)
■ Definition of System
– A set of interrelated components, with a clearly defined boundary, working together to achieve
a common set of objectives by accepting inputs and producing outputs in an organized
transformation process
Processing
Input
• Capturing and
• Transformation
Output
• Transferring
assembling
process
transformed
elements that
converts input
elements to
enter the
into output
their ultimate
system to be
destination
processed
3
Information System (2/3)
■ Definition of Information System
– A set of interrelated components which are to collect, process, store, and distribute information
to support decision making and control in an organization
Information
System
4
Information System (3/3)
■ An information system performs three general activities
– It accepts data from sources as input
– It acts on data to process(produce) information
: information generating system
– The system outputs the information for the user, manager or staff member
■ Information System Process
Input of data
Information generating
Output
First Step
Second Step
Third Step
5
Components of Information System (1/2)
A set of people, data, procedure to provide useful information
People
Data
Procedure
Communication
of information
Information System
Management
of activities
Decision
making
Network
Hardware
Software
6
Components of Information System (2/2)
■ E.g. Components of a Loan Information System
• Fund on deposit
• Loan balance
• Balance financial plan
• Loan portfolio
Banking database
Processor
Computer based
loan information
systems
Information supplied by
applicant for loan
• Financial status
• Loan details
• Employment status
Economic database
• Employment data
• Economic data
7
Technical & Behavioral Approaches to MIS
Technical
Approaches
Operations
Research
Computer
Science
Management
Science
Sociology
MIS
Political
Science
Psychology
8
Behavioral
Approaches
Role of IS (1/2)
View Point 1
Data
Information
Statistical
Analysis
Decision Aids
Math
Analysis
Knowledge
Reasoning
View Point 2
View Point 3
H
EIS/ESS
Middle
low
IPS
TPS
Extreme low
OAS
DSS
Strategic Value
Extreme
top
Top
E
R
P
?
?
L
L
9
IS Expansion
H
Role of IS (2/2)
View Point 4
Helper
Management
A Function
Financing
IS
Accounting
IS
IS
Management
Financing
Marketing
Marketing
IS
Controller
Accounting
Melting Pot
IS
Financing
IS
Marketing
Accounting
Financing
Accounting
Marketing
All Functions are melted
10
Types of Information Systems (1/12)
IS
Recognition
about
Information
Motivation
TPS (Transaction
Processing System)
Efficiency
Computer
To process data about transactions
Control
Database
To process information (cooked data)
DSS (Decision Support
System)
Decision
PC and
Model based
ESS (Executive Support
System)
Strategic
Resource
Executive
Support
ES (Expert System)
Knowledge
AI
Purpose
MIS/IPS (Management
Information System/
Information Processing
System)
ERP (Enterprise
Resources Planning)
Management
BPR
Work Group Support
System
Communication
Communication
11
To assist managers with optimal
decisions for semi-structured
problems
To assist top-level executives
Upper-level DSS
To mimic the decision process of a
human expert
To integrate management information
across entire organization, Vertical
and horizontal integration of IS’s
To support group infor./decision
collectively
Types of Information Systems (2/12)
■ 3-Axis MSS Model
Model
IS Type = f(m, d, i)
a?
c?
Intelligence
b?
Ex)
TPS = f(0.1, 0.9, 0)
DSS = f(0.5, 0.3, 0.2)
Data
12
Types of Information Systems (3/12)
■ Transaction Processing Systems (TPS)
– IS to process transactions handling mostly data with arithmetic operations such as plus, minus,
multiplication, and division
– Examples) ATM, KTX Ticketing, Self Check-in Kiosk
13
Types of Information Systems (4/12)
■ Management Information System (MIS)/Information Processing System (IPS)
–
–
–
–
IS to process information (cooked data, statistically analyzed data)
Statistical analysis
Examples) POS (Point-of-sale)
What kinds of analysis are included in POS?
14
Types of Information Systems (5/12)
■ Decision Support System (DSS)
– IS to support manager’s decision makings for semi-structured problems
– Three components: DB/DBMS, MB/MBMS, Dialogue (DgB/DgMS)
• Eui-ho Suh and H. Hinomoto, "Use of A Dialogbase for Integrated Relational Decision Support System",
Decision Support Systems, 5(3), pp. 227-286, 1989
– Examples) Investment Planning
• Eui-ho Suh, Chang-kyo Suh and Nam-chul Do, "A Decision Support System for Investment Planning on a
Microcomputer", Journal of Microcomputer Application, 15(4), pp 297-311, 1992
– Examples) Make or Buy
15
Types of Information Systems - Taxonomy for DSS by Daniel Power (6/12)
■ Communication-driven DSS
– To support more than one person working on a shared task
– Examples) Integrated tools like Google Docs or Groove
■ Data-driven DSS or data-oriented DSS
– To emphasize access to and manipulation of a time series of internal company data and,
sometimes, external data
■ Document-driven DSS
– To manage, retrieve, and manipulate unstructured information in a variety of electronic formats
■ Knowledge-driven DSS
– To provide specialized problem-solving expertise stored as facts, rules, procedures, or in similar
structures
■ Model-driven DSS
– To emphasize access to and manipulation of a statistical, financial, optimization,
or simulation model
– To use data and parameters provided by users to assist decision makers in analyzing a
situation
– Not to be necessarily data-intensive
– Examples) Dicodess, an open source model-driven DSS generator.
16
Types of Information Systems (7/12)
■ Executive Information System (EIS)
– To present information for top management
• To support problem/opportunity discovery and assessment
• To be used for control and strategic planning
– To be multimedia systems
– To provide summary and detailed information, with the ability to “drill down” into the data
– To provide internal and external information
– To provide different time and space information
17
Types of Information Systems (8/12)
■ Executive Information System (EIS)/Executive Support System (ESS)
– A type of DSS for executives
– EIS is interchangeably used with ESS, but, sometimes it is only an executive version of
IPS while ESS is an executive version of DSS
• Eui-ho Suh and Dae-ho Byun, "A Builder's Introduction to Executive Information Systems", International
Journal of Information Management, 14, pp. 357-368, 1994
– Examples)
• Conoco’s EIS
• Executive Dashboard: UA
18
Types of Information Systems - Expert System (ES) (9/12)
■ Definition
– Computer-based information systems that use expert knowledge to attain high-level decision
performance in a narrowly defined problem domain
– Example) MYCIN
■ Features of ES
Expertise
 Containing expertise that enables ES to make
expert-level decisions
Symbolic
reasoning
 Containing symbolically represented knowledge and
symbolic primary reasoning mechanism
Deep knowledge
Self-knowledge
 Containing complex knowledge not easily found
among nonexperts
 Learning from its successes and failures as well as
other knowledge sources and examining its own
reasoning and providing proper explanations
19
Types of Information Systems - Important Concepts in ES (10/12)
■ Experts
– Degrees or levels of expertise
– Nonexperts outnumber experts often by 100 to 1
■ Transferring Expertise
– From expert to computer to nonexperts via acquisition, representation, inferencing, transfer
■ Inferencing
– Knowledge = Facts + Procedures (Rules)
– Reasoning/thinking performed by a computer
■ Rules (IF… THEN…)
■ Explanation Capability (Why? How?)
– Chang-kyo Suh, Eui-ho Suh, "Using Human Factor Guideline for Developing Expert System",
Expert Systems, 10(3), pp 151-156, Aug. 1993
20
Types of Information Systems - Architecture of an ES (11/12)
Modeling of Manufacturing Systems
Abstract
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askjaskjakskjas
Expert(s)
Printed Materials
Information
Expertise
Knowledge
Engineer
Control
Structure
External
Interfaces
Inference
Engine
Knowledge
Structured
Knowledge
Knowledge
Base(s)
Working
Memory
Base Model
Data Bases
Spreadsheets
Questions/
Answers
Solutions
Updates
User
Interface
21
Types of Information Systems - ERP (12/12)
■ Enterprise Resource Planning
EIS/ESS
Layer
ERP
DSS
Vertical integrated, horizontal
integrated information system
IPS
TPS
OAS
Function
FIS
AIS
MkIS
PIS
22
DQ & ECQ
■ 1 Six components of IS
■ 2. Least or most important component. Why ?
■ 3. If one more added, what would it be ?
■ 4. Explain each viewpoint
■ 5. For each case, classify it in terms of four different viewpoints.
■ 6. For each IS, classify it in terms of 3-axis MSS model
■ 7. For each IS, name the type of IS
■ 8. For each type of IS, provide your own example
23