Download information systems 1

INFORMATION SYSTEMS
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OBJECTIVES
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Importance of information systems
4 levels of users (filtering info)
Information system types
Different decision types
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WHY?
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Understand your role in a system better
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Know what systems are available to you
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Be a better user to the IT group
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Make good IT management decisions
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Info Systems cost A LOT of money (Cost Vs
Benefit Ratio)
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THE COMPETITIVE ADVANTAGE - GOOD
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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)
Accessibility
Completeness
Timeliness
Relevance (Information overload)
BUSINESS SYSTEM MODEL
Plan
Organize
Lead
Control
Strategic Management
Tactical Management
Operational Management
Clerical Level
Resources
Products &
Services
Functions
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Employees
Managers
Government
Customers
Stockholders
Financial
Institutions
Colleges/
agencies
Media
FILTERING INFORMATION
The right information
- the right decision maker
- the right time - the right form.
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Clerical Level
(Transaction Handling)
Operational Level (Exception Reports)
Tactical Level
(What-if Reports)
Strategic Level (One-time Reports, What-if
Reports or Trend Analyses)
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MAKING DECISIONS
Well-Defined Problem
Programmed
Decisions
Unstructured Problem
Information-Based
Decisions 9
WHAT CAN INFO SYSTEM DO?
Input
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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
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INFORMATION SYSTEM TYPES
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Manual system
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No hardware
No software
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TRANSACTION PROCESSING SYSTEMS (TPS)
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Activities:
Transaction handling
 Record-keeping
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Action documents
 Scheduled reports
 Primarily support:
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MIS
DSS
EIS
Clerical personnel
Operational-level managers
Inflexible
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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
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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
DSS
structured problems
 designed to support a
set of applications
 Semi-structured and
unstructured problems
 can be adapted to any
decision environment
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DSS CHARACTERISTICS
Helps decision maker
 Semistructured & unstructured problems
 Most effective for tactical & strategic
management levels
 Interactive and user-friendly; little IT help
needed
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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
DSS TOOL BOX
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Applications Development
Quick application building
 Support a one-time decision
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Data Management
Data Warehousing (combine and offer
preset relationships)
 Data Mining (search warehouse for new
relationships)
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more. . .
DSS TOOL BOX
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Modeling
Decisions involve many factors
 Uncertainty and risk present
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Statistical Analysis
Risk Analysis
 Trend Analysis
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Planning
What-If
 Goal Seeking
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more. . .
DSS TOOL BOX
Inquiry
 Graphics
 Consolidations
 Application-Specific
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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
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Primarily the tactical
and strategic levels
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EXPERT SYSTEMS
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An Expert System is an interactive system
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Responds to questions
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Asks for clarification
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Makes recommendations
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Helps the user in the decision-making process
Simulates human thought process
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Reasons, draws inferences & makes judgments
(heuristic knowledge)
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Information acquired from live domain
experts
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Highest form of knowledge-based systems,
not an assistant system
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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)
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Knowledge base contains
 Means of identifying problem
 Possible solutions
 How to progress from problem to solution
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INTELLIGENT AGENTS
 Type
of artificial intelligence
 Agent may work on:
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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
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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
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Different decision types
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4 levels of users (filtering info)
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Clerical, operational, tactical, strategic
information system types
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Structured, semi-structured, unstructured
Manual, DP, MIS, DSS, EIS, Expert system, Intelligent Agent
(AI)
Importance of information systems
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THANK YOU
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