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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
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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
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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
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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
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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
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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
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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
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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