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Informa.on Systems in Organiza.ons MIS 2101 Week 4 and 5 Internal Informa.on Systems Based on material from Information Systems Today: Managing in the Digital World, Leonard Jessup and Joseph Valacich, Pearson Prentice Hall, 2007 Also includes material by David Schuff, Paul Weinberg, and Cindy Joy Marselis Photo: Objet Mathema+que by Man Ray, 1934 Learning Objec.ves Describe opera.onal, managerial, and execu.ve level decision making 3 Opera.onal Level 4 Managerial Level 5 Execu.ve Level 6 Comparison of Decision-‐Making Levels Operational Level Managerial Level Executive Level Who Foreman or supervisor Midlevel managers and functional managers Executive-level managers What Automate routine and repetitive activities Automate the monitoring and controlling of operational activities Aggregate summaries of past organizational data and projections of the future Why Improve organizational efficiency Improve organizational effectiveness Improve organizational strategy and planning IS Transaction Processing Systems (TPS) Management Information Systems (MIS) Executive Information Systems (EIS) Learning Objec.ves ? What is the difference between a TPS, MIS, and EIS? The Input, Process, Output Model 10 Architecture of a TPS 11 Architecture of a TPS: Inputs 12 Architecture of a TPS: Processing 13 Summary of TPS Characteris.cs Architecture of an MIS 15 Architecture of an MIS: Outputs 16 Summary of MIS Characteris.cs Architecture of an EIS 18 EIS Output: Digital Dashboards Summary of EIS Characteris.cs What is the trend as you go up/down? Weaker EIS MIS Controls and Security TPS Stronger Operations Staff Transaction Processing Source: Business Driven Technology, by Haag, Baltzan, Phillips, McGraw Hill, 2006 (with modifications) Summary: Decision Levels Decision Level Description Example Type of Information Executive Competitive advantage Market leader Long term New products that change the industry External events, rivals, sales, costs quality, trends. Management Improve operations without restructuring New tools to cut costs or improve efficiency Expenses, schedules, sales models, forecast Operations Day-to-day actions keep company running Scheduling employees, placing orders. Transactions, accounting, HRM, inventory In-‐Class Ac.vity • Iden.fy 3 computer systems which you have interacted with in the past month • Classify the system as: – TPS, MIS, or EIS • Explain the characteris.cs of that system which correspond to the category you choose Learning Objec.ves ? What are the seven informa.on systems which our text tells us span organiza.onal boundaries? Seven Informa.on Systems that Span Organiza.onal Boundaries 26 ? 1. What are Decision Support Systems (DSS)? Architecture of a DSS 28 Common DSS Models Information Systems Today: Managing in the Digital World 7-2929 Using DSS to Buy a Car • • • • Selling price – $22,500 Down payment – $2,500 Monthly payment – about $400 Interest rate informa.on from the bank 30 ? 2. What are Intelligent Systems Intelligent Systems • Ar.ficial intelligence – Simula.on of human intelligence – Reasoning, learning, sensing, hearing, walking, talking, etc. 32 Intelligent Systems • Three types – Expert systems – Neural networks – Intelligent agents 33 ? What are Expert Systems Expert Systems • • • • Use reasoning methods Manipulate knowledge rather than informa.on System asks series of ques.ons Inferencing/pa`ern matching – Matching user responses with predefined rules – If-‐then format 35 ? What are Neural Network Systems Neural Network System • Approxima.on of human brain func.oning • Training to establish common pa`erns – Past informa.on • New data compared to pa`erns • E.g., loan processing 37 Example: Neural Network System Loan processing system relying on a neural network -3838 ? What are Intelligent Agent Systems Intelligent Agent Systems • Program working in the background • Bot (soaware robot) • Provides service when a specific event occurs 40 Intelligent Agent Types 1. Buyer agents (shopping bots) – search for best price 2. User agents – perform a task for the user 3. Monitoring and sensing agents – keep track of key informa.on 4. Data-‐mining agents – analyze large amounts of data 5. Web crawlers (web spiders) – browse the Web for specific informa.on 6. Destruc.ve agents – malicious agents designed by spammers 41 ? 3. What are Data Mining and Visualiza.on Systems Data Mining and Visualiza.on Systems • Applica.on of sophis.cated sta.s.cal techniques – What-‐if analyses to support decision making • Capabili.es can be embedded into a large range of systems 43 Visualiza.on • Display of complex data rela.onships using graphical methods Visualization of a weather system 44 Text Mining • Extrac.on of informa.on from textual documents • Web crawlers used to extract informa.on from Internet 45 ? 4. What are Office Automa.on Systems ? 5. What are Collabora.ve Technologies Video Conferencing • Costs – few thousand dollars to $500,000 • Dedicated videoconferencing systems – Located within organiza.onal conference rooms – Highly realis.c 48 Groupware • Enables more effec.ve team work – Dis.nguished along two dimensions 49 Benefits of Groupware 50 ? 6. What are Knowledge Management Systems Benefits and Challenges of Knowledge Based Systems 52 ? 7. What are Func.onal Area Informa.on Systems Business Processes Supported by Func.onal Area Informa.on Systems 54 Cases Amazon.com • • 35 million customers worldwide Innovations leading to satisfaction – Personalized gree.ng – Memory for recent purchases – Targeted “gold box” offers and bargains – Data warehousing/mining • Fraud protec.on – Shipping vs. billing address comparison – Method of shipment checks – Quick! – Credit card sources checks – Small banks with poor credit checking • “One-‐click” shopping As a company, what is Amazon’s most precious assets? The Growing Blogosphere • One of the fastest growing phenomena in the digital world – How can your organiza.on take advantage of this? 57 Too Much Technology? RFID and Privacy • RFID tags – Latest in technological tracking devices – Informa.on imprinted on a tag – Tag generates signature signal – Special RFID reader interprets signal • Use of RFID tags – Pharmaceu.cal industry • Tracking of medica.on from factory to pharmacy – Retail businesses