Week Three - Temple Fox MIS
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Transcript Week Three - Temple Fox MIS
Internal Information
Systems
MIS 2101: Management Information 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.
Learning Objectives
2
Learning Objectives
3
Decision-Making Levels of an
Organization
4
Operational Level
Day-to-day business processes
Interactions with customers
Information systems used to:
Decisions:
5
Automate repetitive tasks
Improve efficiency
Structured
Recurring
Can often be automated using IS
Examples?
Managerial Level
Functional managers
Monitoring and controlling operational-level activities
Providing information to executive level
Midlevel managers
• Focus on effectively utilizing and deploying resources
• Goal of achieving strategic objectives
Managers’ decisions
Semi-structured
Contained within business function
Moderately complex
Time horizon of few days to few months
Examples?
6
Executive Level
The president, CEO, vice presidents,
board of directors
Decisions
Long-term strategic issues
Complex and nonroutine problems
Unstructured decisions
Long-term ramifications
7
Examples?
7-7
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)
8
Learning Objectives
9
General Types of Information
Systems
Input-process-output model
Basic systems model
Payroll system example
10
Transaction Processing
System
Operational level
Purpose:
Processing of business events and transactions
Increase efficiency
• Automation
• Lower costs
• Increased speed and accuracy
Examples
Payroll processing
Sales and order processing
Inventory management
Etc.
11
Architecture of a TPS
12
Architecture of a TPS: Inputs
Source Documents
13
Different data entry methods
Architecture of a TPS:
Processing
Online processing
Batch processing
14
Immediate results
Transactions collected and later processed
together
Used when immediate notification not
necessary
Architecture of a TPS:
Outputs
Counts, summary reports
Inputs to other systems
Feedback to systems operator
15
Summary of TPS
Characteristics
16
Management Information
Systems
Managerial level
Purpose:
Produce reports
Support of midlevel managers’ decisions
Examples
Sales forecasting
Financial management and forecasting
Manufacturing, planning and scheduling
Inventory management and planning
Etc.
17
Architecture of an MIS
18
Architecture of an MIS:
Processing
Aggregation
Summary
19
Architecture of an MIS:
Outputs
20
Summary of MIS Characteristics
21
Executive Information
Systems
A.k.a. Executive support system
Executive level
Purpose
Examples
22
Aid in executive decision-making
Provide information in highly aggregated
form
Monitoring of internal and external events
and resources
Crisis management
Etc.
Architecture of an EIS
23
Architecture of an EIS:
Inputs
Hard data
Facts and numbers
Generated by TPS & MIS
Purchased data
Soft data
Nonanalytical information
Web-based news portals
• Customizable
• Delivery to different media
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Architecture of an EIS:
Processing
Summarizing
Graphical interpreting
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Architecture of an EIS:
Outputs
Summary reports
Trends
Simulations
26
EIS Output: Digital Dashboards
Digital dashboard
Presentation of
summary
information
Information from
multiple sources
Ability to drill
down if
necessary
27
Summary of EIS Characteristics
28
Summary
So what’s the
trend as you go
down the list/up
the pyramid?
Executive Information Systems
Highest level summary of information
Management Information Systems
Aggregate and collect data
Transaction Processing Systems
Collect data
29
Summary: Types of Information
Systems
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)
30
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
Operations
Day-to-day actions
keep company running
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New tools to
Expenses,
cut costs or impschedules, sales
rove efficiency
models, forecast
Scheduling
employees,
placing orders.
Transactions,
accounting,
HRM, inventory
Learning Objectives
32
Information Systems Today: Managing in the Digital World
7-32
Seven Information Systems that
Span Organizational
Boundaries
33
1. Decision Support
Systems
Decision making support for recurring
problems
Used mostly by managerial level
employees (can be used at any level)
Interactive decision aid
What-if analyses
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Analyze results for hypothetical
changes
Architecture of a DSS
35
Common DSS Models
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Information Systems Today: Managing in the Digital World
7-36
Using DSS to Buy a Car
Selling price – $22,500
Down payment – $2,500
Monthly payment – about $400
Interest rate information from the bank
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2. Intelligent Systems
Artificial intelligence
Simulation of human intelligence
Reasoning, learning, sensing, hearing,
walking, talking, etc.
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Intelligent Systems
Three types
Expert systems
Neural networks
Intelligent agents
39
Expert Systems
Use reasoning methods
Manipulate knowledge rather than
information
System asks series of questions
Inferencing/pattern matching
40
Matching user responses with predefined
rules
If-then format
Neural Network System
Approximation of human brain
functioning
Training to establish common patterns
Past information
New data compared to patterns
E.g., loan processing
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Example: Neural Network
System
Loan
processing
system
relying on a
neural
network
42
-42
Intelligent Agent Systems
Program working in the background
Bot (software robot)
Provides service when a specific
event occurs
43
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
information
4. Data-mining agents – analyze large amounts of data
5. Web crawlers (web spiders) – browse the Web for
specific information
6. Destructive agents – malicious agents designed by
spammers
44
3. Data Mining and Visualization
Systems
Application of
sophisticated
statistical techniques
What-if analyses to
support decision
making
Capabilities can be
embedded into a
large range of
systems
45
Visualization
Display of complex data relationships using
graphical methods
Visualization of a
weather system
46
Text Mining
Extraction of
information from
textual documents
Web crawlers used
to extract
information from
Internet
47
4. Office Automation
Systems
Developing documents, scheduling
resources, communicating
Examples
Word processing
Desktop publishing
Electronic calendars
E-mail
48
5. Collaboration
Technologies
Increased need for flexible teams
Virtual teams – dynamic task forces
Forming and disbanding as needed
Fluctuating team size
Easy, flexible access to other team
members
49
Need for new collaboration
technologies
Video Conferencing
Costs – few thousand dollars to $500,000
Dedicated videoconferencing systems
Located within organizational conference rooms
Highly realistic
50
Groupware
Enables more
effective team
work
Distinguished
along two
dimensions
51
Benefits of Groupware
52
6. Knowledge Management
Systems
Generating value from knowledge assets
Collection of technology-based systems
Knowledge assets
Skills, routines, practices, principles, formulas,
methods, heuristics and intuition
Used to improve efficiency, effectiveness and
profitability
Documents storing both facts and procedures
Examples
• Databases, manuals, diagrams, books, etc.
53
Benefits and Challenges of
Knowledge Based Systems
54
7. Functional Area Information
Systems
Cross-organizational-level IS
Support specific functional area
Focus on specific set of activities
55
Business Processes Supported
by Functional Area Information
Systems
56
Cases
57
Amazon.com
• 35 million customers worldwide
• Innovations leading to satisfaction
Fraud protection
Personalized greeting
Memory for recent purchases
Targeted “gold box” offers and
bargains
Shipping vs. billing address
comparison
Method of shipment checks
Credit card sources checks
“One-click” shopping
58
The Growing Blogosphere
One of the fastest growing phenomena in the digital
world
59
Too Much Technology?
RFID and Privacy
RFID tags
Latest in technological tracking devices
Information imprinted on a tag
Tag generates signature signal
Special RFID reader interprets signal
Use of RFID tags
Pharmaceutical industry
• Tracking of medication from factory to pharmacy
Retail businesses
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