Transcript Class 4-Internal-Information-Systems

Class 4:
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.
Blog v. Forum
Blog: personal journal published on the web consisting of discrete entries ("posts")
typically displayed in reverse chronological order so the most recent post appears
first. Blogs are usually the work of a single individual, occasionally of a small group,
and often are themed on a single subject. A typical blog combines text, images, and
links to other blogs, Web pages, and other media related to its topic. The ability of
readers to leave comments in an interactive format is an important part of many blogs.
Forum: an online discussion site where people can hold conversations in the form
of posted messages. Depending on the access level of a user or the forum set-up, a
posted message might need to be approved by a moderator before it becomes visible.
– Hierarchical. A forum consists of a tree like directory structure. The top end is
"Categories". A forum can be divided into categories for the relevant discussions.
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Learning Objectives
Describe operational, managerial,
and executive level decision
making?
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Operational Level
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Managerial Level
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Executive Level
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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 Objectives
Question

What is the difference between a
TPS, MIS, and EIS?
The Input, Process, Output Model
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Architecture of a TPS
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Architecture of a TPS: Inputs
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Architecture of a TPS:
Processing
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Summary of TPS
Characteristics
Architecture of an MIS
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Architecture of an MIS:
Outputs
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Summary of MIS
Characteristics
Architecture of an EIS
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EIS Output: Digital Dashboards
EIS Output: Digital Dashboards
Summary of EIS Characteristics
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
Executive
Competitive advantage
Market leader
Long term
New products
that change
the industry
Type of
Information
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 Activity

Identify 3 computer systems which you have
interacted with in the past month

Classify the system as:


TPS, MIS, or EIS
Explain the characteristics of that system
which correspond to the category you choose
Step 2 – Show Me The Money
Learning Objectives
Question

What are a few of the seven information systems
which our text tells us span organizational
boundaries?
Seven Information Systems that
Span Organizational Boundaries
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Types of Decisions You
Face
Scenario – Warehouse
Manager
You know you have too much cash tied up in
inventory. You want to reduce inventory levels.
 You get a lot of heat when orders are placed and
you can’t fill the order from inventory.
 What information do you need, how would you
like to see it and how do you make decisions
about adjusting inventory levels?
 Are these structured or unstructured decisions?

Decision Support vs.
Artificial Intelligence
Helps you analyze information
Makes or recommends a decision
for you
1. Decision Support Systems
Databases & Data
Warehouses
Operational
Databases
What Is a Hypercube?
Create multi-dimensional
“cubes” of information
that summarize
transactional data across
a variety of dimensions.
OLAP vs. OLTP
Envisioned by smart
businesspeople, built by
the IT pros
Data Marts
Alliance between You and a
DSS
Can you add structure to a nonstructured problem making it “more
structured” and improve the probability of getting the “right” answer?
“If I only knew …?”
Using DSS to Buy a Car

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Selling price – $22,500
Down payment – $2,500
Monthly payment – about $400
Interest rate information from the bank
In-Class Activity

Let’s get together the…
Accounting Majors
 Finance Majors
 Marketing Majors
 HR Majors
 Statistic Majors


How could you use a DSS to help
your organization? (hints to come)
Step 2 – Show Me The Money
Common DSS Models
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Information Systems Today: Managing in the Digital World
Decision Support vs.
Artificial Intelligence
Helps you analyze information
Makes or recommends a decision
for you
Keep an eye out for technologies that mix DS & AI as
well as a mix of AI techniques
2. Artificial Intelligence


Is Nicholas’ robot “intelligent”? Will it become
“intelligent” over the summer?
Be wary of “Artificial” anything?
Expert
Systems
Could You Use an Expert
System?
Talk to the person next to you about the
various jobs that you have had.
 Discuss situations where a decision tree could
be used to lead an employee who wasn’t really
an expert through a series of questions and
eventually to the answer they are looking for.
 Where is the intelligence…in the employee or
the decision tree?

Can you recognize patterns
and be trained?






You see a new breed of dog
How do you know it is
a 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?
animal
Scenario – Loan Officer
You need to make approval/rejection decisions
on loan applications?
 What information do you look at to make your
decisions?
 Do you make decisions based on individual
pieces of information or combinations of
information?
 What combinations correlate with good/bad
loans?

Example: Neural Network
System
Loan
processing
system
relying on a
neural
network
Intelligent Agent Systems



Program working in the background
Bot (software robot)
Provides service when a specific
event occurs
Intelligent Systems

Top line? Bottom line? Both?
Expert systems
 Neural networks
 Intelligent agents

Remember Databases &
Data Warehouses
Operational
Databases
3. Data Mining and Visualization
Systems
Visualization
Visualization of a
weather system
Let’s shop for an
investment property
with the help of
Zillow.Com
Text Mining
4. Office Automation Systems


Developing documents, scheduling
resources, communicating
Examples



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
Word processing
Desktop publishing
Electronic calendars
E-mail
Top line? Bottom line? Both?
Scenario




You are working on a project, trying to bring a new
product to market
You are in Philadelphia, your R&D person is in France,
the product will be manufactured in China, your sales
team is in New York, your finance person is in Canada
What are the challenges of working on a virtual team?
How can technology help you deal with these
challenges?
5. Collaboration Technologies
Video Conferencing
Groupware
Benefits of Groupware
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Question
What is a “Baby Boomer” and how many of
them are in the workforce today?
 How many will be in the workforce 10 years
from now?
 What is “Tacit Knowledge”?
 Why is this keeping CEOs awake at night?
 Is there technology that we can use to help with
this?

6. Knowledge Management
Systems
Benefits and Challenges of
Knowledge Based Systems
7. Business Processes Supported by
Functional Area Information Systems
What is your
major?
Do any of these
have value for
you?
Top/Bottom
Line?
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Cases
Amazon.com
•
•
35 million customers worldwide
Innovations leading to satisfaction
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Fraud protection
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Personalized greeting
Memory for recent purchases
Targeted “gold box” offers and
bargains – Data warehousing/mining
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 organization take advantage of
this?
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Too Much Technology?
RFID and Privacy
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RFID tags
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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
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Retail businesses