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Business Information Systems LEARNING OBJECTIVES © Arjan Raven and Duane Truex 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 1 The B usiness S ystems Architecture DSS, GDSS & EIS Transaction Processing Systems (TPS) Management Information Systems (MIS) © Arjan Raven & Duane Truex Content Editing & Production tools Search Engines & tools On-line Analytical Processing (OLAP) (Deductive) Production Database External Data Sources Data Warehouse Data Mining (Inductive reasoning) Knowledge Repository Organizational Memory Information System (OMIS) Collaboration and Coordination tools 2 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. © Arjan Raven & Duane Truex 3 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 © Arjan Raven & Duane Truex 4 Definitions(3): Repositories, Continued • External Data Sources • Databases and knowledge repositories. • Proprietary (paid) • Public (free) © Arjan Raven & Duane Truex 5 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…) © Arjan Raven & Duane Truex 6 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 © Arjan Raven & Duane Truex 7 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 © Arjan Raven & Duane Truex 8 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 More © Arjan Raven & Duane Truex 9 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 Payroll Transaction Processing Payroll Checks Pay Rate © Arjan Raven & Duane Truex 10 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. © Arjan Raven & Duane Truex 11 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 © Arjan Raven & Duane Truex 12 Example of Source Data Automation Customer Receipt MIS UPC Scanner Exception Report Point-of-Sale TPS Time, date, Inventory quantity Point-of-Sale Transaction Processing System © Arjan Raven & Duane Truex 13 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 © Arjan Raven & Duane Truex 14 Management Information System (MIS) Marketing MIS Manufacturing MIS Common Database Financial MIS © Arjan Raven & Duane Truex Other MISs TPS 15 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 continued... © Arjan Raven & Duane Truex 16 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 © Arjan Raven & Duane Truex 17 Decision Support Systems • An information system that supports different decision making styles through on-the-fly queries and prespecified 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. © Arjan Raven & Duane Truex 18 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 © Arjan Raven & Duane Truex 19 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 User © Arjan Raven & Duane Truex 20 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 © Arjan Raven & Duane Truex 21 Components of Expert Systems Inference Engine Subject Knowledge Base Human © Arjan Raven & Duane Truex Knowledge Acquisition System Subject Domain Experts User Interface and Explanation facility User Interface User 22 AI Applications • Years of overpromise and underdelivery, but now new technologies: • • • • Voice recognition Optical character recognition Handwriting recognition Search engines • Tangible results, e.g. • • • • Credit Card Fraud Detection Stock market prediction Automated Helpdesks Great/Annoying Personal Assistants in Office Suite © Arjan Raven & Duane Truex 23 End of Business Information Systems © Arjan Raven and Duane Truex 24