Download MIS 301- Database

MIS 301
Information Systems in Organizations
Dave Salisbury
[email protected] (email)
http://www.davesalisbury.com/ (web site)
What We Will Cover:
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The technological infrastructure of an
organization
Databases: the primary data storage for
organizations
Beyond databases: using other methods to
store data, information, and knowledge
The IS integration problem
Information systems that support business
activities
Business intelligence
Student ROI (Return on Investment)
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Your investment of time and effort in this course will result in
your being able to answer these questions:
How do organizations use processors, networks, software, and
storage?
What are the key concepts of data organization for an IS?
In what ways can organizations use IT to store and share data,
information and knowledge?
What is the IS integration problem and how are organizations
solving it?
How do organizations use IT to support transactions and
business processes?
How does business intelligence enhance organizational decision
making?
IT: The “Plumbing of an Organization”
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Data and information are as
vital to an organization as
the water we drink
Data and information must
be delivered in a usable form
Just as pipes acts plumbing
to deliver water for us to
drink, IT acts as the
plumbing of an organization
by delivering “clean” data
and information to those
who need it.
Forms and Organizations of Data &
Information
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While we need only clean water, we
need data and information in different
forms and organizations.
Forms of data and information:
numbers, text, graphics, audio, video
Data and information can be organized
as tables, reports and graphs
Technology Infrastructure of an
Organization
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All core components discussed at the individual
level—hardware, software, and networks—also apply
at the organizational level.
The main difference between personal level and
organizational level is one of size and complexity.
At organizational level, there is more of everything
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Data to process
Larger scale problems to solve
More people and activities to support
Organizational Hardware
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Processing hardware is at the heart of
business IS.
The computer hierarchy categorizes
processors according to their power.
Computer power is often based on physical
size.
Can’t always make compare computer types
on power alone as it is possible to combine
several small computers to have more power
than a single large one.
Computer Hierarchy
Computer Type
Relative Processing Power
Purpose
Supercomputer
Largest and Fastest
Processor intensive
applications
Mainframe
Large
Organizational
processing
Server Farms
Medium/many
Handle network
processing needs
Personal Computer
(PC)
Small to medium
Individual processing
needs
Personal Digital
Assistant (PDA)
Very small
Portable computing
power
Embedded
processors
Extremely small
Low-scale processing
and/or identification
General Computing Job Types
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Input-Output Bound
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Speed of job depends on speed of inputoutput devices
Common in business
Processor Bound
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Speed of job depends on speed of
processor
Heavy calculations – common in science
and advanced statistical fields
Organizational Networks
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Networked computers provide the core
function of data transfer in an organization
Networks also support communications
between individuals and groups within the
organization
Networks also support communications
between the organization and its customers,
suppliers, and so on
Networks are classified by size from small to
global
Types of Organizational Networks
Network
Size
Purpose
PAN (Private Area
Network--private)
Up to a small office
Communication between
devices
LAN (Local Area
Network--private)
Within a building
Sharing between users in an
organization
MAN (Metropolitan
Area Network—
private/public)
Within a metropolitan
area
High speed data and voice
communications
WAN (Wide Area
Network—
private/public)
Over a large geographical area)
Sharing among organizational
units distant from one another
Internet (Public)
Global
Sharing with all stakeholders
in organization; also general
public
Intranets in the Organization
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Intranets are very important
to the organization.
An intranet is a set of
services for distributing
private information
throughout the organization.
From a hardware
perspective, an intranet is a
collection of private
networks.
Intranets use the TCP/IP
protocol to share
information, just like the
Internet.
They use Internet-compatible
Advantages of Intranets
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Reduces paper used by publishing
internal documents on Web sites that
can be accessed by employees and
other stakeholders.
Internal transactions such as pension
plan changes can be automated.
Intranets can lead to improved
communication and teamwork.
Individual vs. Organizational Software
Software at the organizational level is like that at personal level,
just more complex and able to handle more transactions.
Type of
Software
Individual Use
Organizational Use
Operating
Systems
To manage a single
computer
To manage a mainframe or
server farm
Application
Software
Personal productivity
software
Transaction processing, data
storage, and organizational
productivity software
Collaboration
Software
Supports communication
between individuals
Enables members of
organization to share work
Databases: Primary Data Storage for
Organizations
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All business information systems rely on
stored data to make decisions.
The primary technology for data storage is
the database.
A database consists of interrelated that are
stored in files for easy access of specific
pieces of data.
A database management system (DBMS) is a
collection of software that allows users to
create and work with a database.
DBMSs Control Database Access
Database Systems for Organizations
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A database and its DBMS is often referred to
as a database system.
People who create and manage organizational
database systems are referred to as database
administrators.
Knowledge workers usually use application
software to access and query the database.
Organizational databases are much larger and
much more complex than what we build in
Access.
Other Methods to Store Data,
Information, and Knowledge
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In addition to using databases, there
are a number of other ways to store
data, information and knowledge.
These include (but are not limited to):
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Data Warehouses
Management Information/Decision Systems
Knowledge Management
Collaborative Software
Using Data Warehouses
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Databases are not the only or necessarily the
best way of storing data for all business
needs.
A data warehouse is a way of storing and
managing data for information access.
It consists of transaction data, cleaned and
restructured to fit the data warehouse model.
It is meant to support queries, summary
reports, and analysis.
Database vs. Data Warehouse
Database
Data Warehouse
Supported Activity
Operational
Analytical
Response Time
Fast
Can be slow
Age of Data
Current transaction
Historical data
Scope
Limited area within
organization
Provides view of
entire organization
Data Variability
Changes often
Infrequent
changes
Source
Transactions
Multiple sources
Data Model
Business rules
Aligns with overall
business structure
Data Warehouses
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Data warehouses are very large and work with tools that allow
users to more easily deal with vast amounts of data.
Data marts are used to extract and reorganize specific data
according to user’s information needs.
Data warehouses often provide support for organizing
multidimensional data (based on two or more characteristics.)
Retrieving data organized in this fashion is sometimes called
slicing-and-dicing.
Using a Data Warehouse
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Automatic production of standard reports and queries.
Queries against summary or detailed data.
Data mining for detailed data to find trends or patterns in large
sets of data. Some data mining tools use artificial intelligence
techniques or provide aids for data visualization to allow
humans to spot trends.
Interfacing with other applications and data stores.
Management Information/Decision
Systems
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Businesses use captured and stored data to
create information which is used for decision
making.
One way to have information available is to
store it in the form of reports created by a
management information system (MIS).
MIS typically generate three types of reports.
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Periodic
Exception
Demand
Document Management Systems
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Some modern versions of MIS are referred to
as document management systems (DMS).
A DMS enters, tracks, routes, and processes
the many documents used in an organization.
Documents can be created electronically or
converted to electronic form using imaging
technology.
DMS can be used to support workflow
systems by managing storage and routing of
documents.
Knowledge Management
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Knowledge is the most difficult form of
informational resource to store and share.
There are two types of knowledge: explicit
knowledge and tacit knowledge.
Explicit knowledge includes everything that
can be written down, stored, and codified.
Tacit knowledge includes know-how that
people have through learning and experience.
Knowledge management involves, recognizes,
generates, manages, and shares knowledge.
Knowledge Management Systems
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Expert Systems are a form of knowledge
management that tries to capture and store the
knowledge of a human expert.
Observation and interview techniques are used to
capture how an expert performs work and makes
decisions.
They are a form of artificial intelligence which tries to
provide computer applications that mimic human
intelligence.
Collaborative software (groupware) is often used to
support tacit knowledge management.
Collaborative Tools
Collaborative Software
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Communication Tools
Facilitates the sharing of
information and data with
messaging tools
Conferencing Tools
Provides a more interactive
facility for sharing of information.
Collaborative Management
Tools
Can help to manage and facilitate
the activities of a team.
The IS Integration Problem
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The problem of combining many disparate
technologies into a single overall system is
known as the IS integration problem.
Solutions to the integration problem include:
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Middleware
Web services
Enterprise resource planning software (ERP)
Middleware
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Middleware is software that links applications
that use dissimilar software or hardware
platforms.
It acts like a specialized messenger/translator
that manages the exchange of information.
An important class of middleware technology
that is designed to work with Internet
protocols is known as Web services.
Middleware
Web Services
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A Web service obtains or processes data from a sending
application.
The data is delivered over the network using a standard data
format known as eXtensible Markup Language (XML).
Programs can interpret the XML data into a format useful to a
receiving application.
Web services allow companies to make their data more useful to
other while retaining control over hardware and access to data.
A mashup is a combination of Web services that seamlessly
combines information from more than one source into an
integrated experience.
Web Services
Enterprise Resource Planning (ERP)
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ERP systems enable a company to run all of its
applications from a single database.
Each functional unit still uses its own supporting
software, but ERP links these applications and
ensures their compatibility via common data storage.
The main benefit of an ERP system is to streamline
the order fulfillment process, but companies can
apply ERP to other business functions as well.
The primary disadvantage of ERP is its complexity
often requiring ERP vendors to develop and maintain
their systems.
Information Systems that Support
Business Activities
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There are a variety of information systems
that support business activities.
These IS include
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Transaction processing systems
Functional information systems
Workflow management systems
These are just a few of the many IS that
organizations use to support knowledge work
and business processes.
Transactions
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Business transactions are critical to the core
activities of an organization.
A transaction is a unit of work that has the
following characteristics (ACID):
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Atomicity: a transaction must be completed.
Consistency: All unchanging properties of data
must be preserved.
Isolation: Each transaction should execute
independently of other transactions.
Durability: The effects of a transaction should be
permanent.
Transaction Processing Systems
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A TPS brings together the common
components of IT (data storage, data
processing, data capture, and software).
A TPS must control the flow of both the
activities and data involved in the transaction.
TPS must incorporate:
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The logic for controlling and enabling transactions
The business rules of the organization
Necessary error handling logic
Transaction Processing Systems
Types of TPS
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Batch transaction processing:
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A local server first stores transaction data captured at a
location.
Data sent to central data store as a group or batch.
Batch processing is useful when actual processing time is
significant.
Online transaction processing (OLTP):
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Data from each transaction is processed and sent as it is
captured.
Requires faster and more expensive network infrastructure
Data is available to decision makers more quickly.
Functional IS
Functional information systems (FIS) focus on the activities of a
department to improve its efficiency and effectiveness.
System
Description
Accounting IS
Dedicated to tracking and reporting a firm’s
financial health
Marketing IS
Supports marketing research and decision
making
Human Resource IS Supports activities related to managing the
employees of an organization
Financial IS
Provides financial information to an
organization’s financial managers
Manufacturing IS
Supports manufacturing processes and activities
Workflow Management Systems
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A workflow represents the steps, resources, input and output
data, and tools needed to complete a business process.
A workflow management system (WMS) or business process
management (BPM) focuses on a business process from
beginning to end.
WMS enables modeling the steps of the business process to
show the flow of work along with the state of the components.
Workflow Reference Model
Business Intelligence
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Business intelligence (BI) is a process for gaining
competitive advantage through the intelligent use of
data and information in decision making.
Data and information must go through several stages
to be used in decision making.
IT assists at every step.
Stages of Business Intelligence
Stage
Description
1. Data sourcing
Mining data and information from text documents,
images, media files, and Web pages.
2. Data analysis
Producing useful knowledge from collected data and
information
3. Situation
awareness
Culling out and relating the useful facts and
knowledge
4. Risk assessment
Identifying decision options and evaluating them
5. Decision support
Using interactive software tools to identify and select
intelligent decisions and strategies
Decision Support Systems (DSS)
DSS help businesses use technology, data organization
and access, knowledge, and models to carry out decisionmaking.
Type of DSS
Description
Communication-driven
DSS
Focuses on communications, collaboration, and
shared decision-making
Data-driven DSS
Focuses on access to and manipulation of internal
company data
Document-driven DSS
Focuses on retrieval and management of unstructured
documents
Knowledge-driven DSS Aids decision making by suggesting actions to users
Model-driven DSS
Focuses on access to and manipulation of a model
Types of Models in Model-driven DSS
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Financial models use financial mathematical
models and financial data
Statistical models use statistics and
probability to describe or forecast scenarios
Optimization models seek to find the “best”
solution to a mathematical model of a
situation
Simulation modeling conducts experiments
using a computer to test possible outcomes
from a quantitative model of a system
Why We Invest in IS&T
Revenue
+
Strategic
Systems
+
Management
Support & Decision
Systems
IS&T
Investment
–
Operational
Systems
Profit
–
Costs
Decisions in Business
Decision Characteristics
Unstructured
Semi-structured
Strategic
Management
Tactical
Management
Structured
Operational
Management
Ad Hoc
Unscheduled
Summarized
Infrequent
Forward Looking
External
Broad Scope
Prespecified
Scheduled
Detailed
Frequent
Historical
Internal
Narrow Focus
Short Time Frame
Management Reports
Periodic Scheduled
Reports
Exception Reports
Major
Management
Information
Systems Reports
Demand Reports
and Responses
Push Reports
Decision Support Systems
What If-Analysis
Sensitivity Analysis
Important
Decision
Support
Systems
Analytical Models
Goal-Seeking Analysis
Optimization Analysis
Expert Systems
The Expert System
Expert
Advice
User
User
Interface
Programs
Inference
Engine
Program
Knowledge
Base
Workstation
Expert System Development
Knowledge
Engineering
Knowledge
Acquisition
Program
Workstation
Expert and/or
Knowledge Engineer
Expert System Applications
Decision Management
Diagnostic/Troubleshooting
Maintenance/Scheduling
Design/Configuration
Major
Application
Categories
of Expert Systems
Selection/Classification
Process Monitoring/Control