Transcript MIS
Chapter 9
Information, Decision
Support…
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Decision Making and Problem Solving
Management Information Systems
Decision Support Systems
Group Decision Support Systems
Hybrid and Special-Purpose Systems
Computer Strengths
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Information Systems
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Information System Types
• Expert System (ES)
• Decision Support System (DSS)
• Management Information System (MIS)
• Transaction Processing System (TPS)
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Transaction Processing
System
A TPS is an information system used
to support and record transactions.
E-commerce
Transactions carried
out online, over the
Internet or other
telecommunications
network.
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Architecture of a TPS
6
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MIS: The Big Picture
MIS provides information about the
performance of an organization
Think of entire company (the firm) as
a system.
An MIS provides management with
feedback
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MIS: Feedback for a Firm
Q: How are we doing?
A: Look at the report from the MIS
Generic reports: Sales, Orders, Schedules, etc.
Periodic: Daily, Weekly, Quarterly, etc.
Pre-specified reports
Obviously, such reports are useful for
making good decisions.
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MIS Input and Output
Corporate
Databases
Transactions
Database
Scheduled
reports
in
External
Databases
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MIS
out
Demand
reports
Exception
reports
Typical MIS Reporting
Periodic Scheduled Reports
Example: Monthly Financial Statements
Exception Reports
Example: List of items out of stock
These reports contain information but they
might not directly help you determine the
best decision to make.
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More MIS Reports
Demand Reports
Available whenever a manager needs them, updated in
real-time.
Push Reporting
Information is pushed to a managers computer
Example: Report is pushed every time a supplier is late with
a shipment
MIS Reporting is all about giving managers
feedback and doesn’t necessarily help directly with
decision making.
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Decision Support System
A DSS is an information system used to
support problem-specific decision-making.
www.progressive.com
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Architecture of a DSS
13
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How is a DSS different?
MIS
Periodic reports
DSS
Special reports that may only
be generated once
Pre-specified,
generic reports
May not know what kind of
report to generate until the
problem surfaces; specialized
reports.
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MIS vs. DSS: Big Differences
In a DSS, a manager generates the
report through an interactive interface
Flexible & Adaptable reports
DSS Reporting is produced through
analytical modeling, not just computing
an average, or plotting a graph.
Business Models are programmed into a
DSS
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How is DSS reporting different?
Modeling helps predict the outcome of
a decision.
This directly helps you make a decision
Possibly an optimal decision
With a DSS you can explore possible
alternatives.
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MIS vs. DSS
MIS
DSS
Support
Info about
performance
Info and modeling to
analyze problems
Report
Form
Periodic reports
or On Demand
Pre-specified
Fixed format
Interactive Inquiries
Processing Extract and
manipulate data
Analytical modeling
of data
Format
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Flexible and Adaptable
Expert System
An ES is an
information
system that
utilizes AI
techniques to
make
suggestions
and reach
conclusions in
one particular
area of
expertise.
http://www.aiinc.ca/demos/whale.html
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Decision Support vs. Artificial
Intelligence
Helps you analyze information
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Makes or recommends a decision
for you
2. Artificial Intelligence
Simulation of human
intelligence
Reasoning, learning,
sensing, hearing, walking,
talking, etc.
AI systems deliver the
conclusion rather than
helping you analyze the
options
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Is Nicholas’ robot
“intelligent”? Will it
become “intelligent” over
the summer?
Be wary of “Artificial”
anything?
Intelligent Systems
Three types
Expert systems
Neural networks
Intelligent agents
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Expert Systems
Typically comprised of 2 operations:
Gather input
Asks a series of questions
Sensory input
Perform inferencing
Statistical pattern matching
Predefined rules
An example
An expert system can
Reduce errors
Improve customer
service
Reduce cost
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An expert system can’t
Use common sense
Automate all processes
Learn and adapt like neural networks
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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Can you recognize patterns
and be trained?
You see a new breed
of dog
How do you know it is
dog?
How do you know it is
even an animal?
How do you know if an
animal is a mammal?
How about a whale?
How about a platypus?
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Example: Neural Network System
Loan
processing
system
relying on a
neural
network
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Typical Neural Network
Structure
A Simulation
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Intelligent Agent Systems
Program working in the background
Bot (software robot)
Provides service when a specific
event occurs
More about software agents
Chat with Alice
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Review: What do they do?
Give a one sentence description of
each term below:
TPS
MIS
DSS
Expert System
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Enterprise Resource Planning
ERP: integrates all data processing in an
enterprise into one unified system that draws
from a common database system.
ERP
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Traditional View of Systems
Business Functions
Accounting
Finance
Marketing and
Sales
Human
Resources
Business
Processes
Business
Processes
Business
Processes
Business
Processes
Business
Processes
Manufacturing
Systems
Accounting
Systems
Finance
Systems
Marketing and
Sales Systems
Human
Resources
Systems
Vendors
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Information Systems
Organizational
Boundaries
Organizational
Boundaries
Manufacturing
Customers
Enterprise Systems
Manufacturing
Accounting
Human
Resources
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Business Process
Business Process
Business Process
Enterprise-wide business
processes
Sales and
Marketing
Organizational
Boundaries
Vendors
Organizational
Boundaries
Enterprise System
Customers
Finance
Benefits and Challenges of
Enterprise Systems
Benefits
Firm structure and organization: One Organization
Management: Firm wide Knowledge-based
Management Processes
Technology: Unified Platform
Business: More Efficient Operations and
Customer-driven Business Processes
Challenges
Daunting Implementation
High Up-front Costs and Future Benefits
Inflexibility
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9.5
Hybrid and SpecialPurpose Systems
Key Terms
• Knowledge Management System
• Geographic information system (GIS)
• Informatics
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Knowledge Management
System
A knowledge management
(KM) system assists an
organization in capturing,
storing, and distributing
knowledge for use and reuse
by the organization and
sometimes by its partners and
customers.
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Question
What is the difference between “data”,
“information”, “knowledge” and
“wisdom”?
Can one be created from the previous?
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Data: A key component of information
systems
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