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Weeks 4-5: Internal Information Systems

Weeks 4-5: 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

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Weeks 4-5: Internal Information Systems

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  1. Weeks 4-5: 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.

  2. Learning Objectives

  3. Learning Objectives

  4. Decision-Making Levels of an Organization

  5. Operational Level Day-to-day business processes Interactions with customers Information systems used to: Automate repetitive tasks Improve efficiency Decisions: Structured Recurring Can often be automated using IS Examples?

  6. 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?

  7. Executive Level The president, CEO, vice presidents, board of directors Decisions Long-term strategic issues Complex and nonroutine problems Unstructured decisions Long-term ramifications Examples? 7-7

  8. Comparison of Decision-Making Levels

  9. Learning Objectives

  10. General Types of Information Systems Input-process-output model Basic systems model Payroll system example

  11. 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.

  12. Architecture of a TPS

  13. Architecture of a TPS: Inputs Source Documents Different data entry methods

  14. Architecture of a TPS: Processing Online processing Immediate results Batch processing Transactions collected and later processed together Used when immediate notification not necessary

  15. Architecture of a TPS: Outputs Counts, summary reports Inputs to other systems Feedback to systems operator

  16. Summary of TPS Characteristics

  17. 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.

  18. Architecture of an MIS

  19. Architecture of an MIS: Processing Aggregation Summary

  20. Architecture of an MIS: Outputs

  21. Summary of MIS Characteristics

  22. Executive Information Systems A.k.a. Executive support system Executive level Purpose Aid in executive decision-making Provide information in highly aggregated form Examples Monitoring of internal and external events and resources Crisis management Etc.

  23. Architecture of an EIS

  24. 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

  25. Architecture of an EIS: Processing Summarizing Graphical interpreting

  26. Architecture of an EIS: Outputs Summary reports Trends Simulations

  27. EIS Output: Digital Dashboards Digital dashboard Presentation of summary information Information from multiple sources Ability to drill down if necessary

  28. Summary of EIS Characteristics

  29. 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

  30. Summary: Types of Information Systems Weaker EIS MIS TPS Controls and Security Stronger Operations Staff Transaction Processing Source: Business Driven Technology, by Haag, Baltzan, Phillips, McGraw Hill, 2006 (with modifications)

  31. 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 imp- rove efficiency Expenses, schedules, sales models, forecast Operations Day-to-day actions keep company running Scheduling employees, placing orders. Transactions, accounting, HRM, inventory

  32. Learning Objectives Information Systems Today: Managing in the Digital World 7-32

  33. Seven Information Systems that Span Organizational Boundaries

  34. 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 Analyze results for hypothetical changes

  35. Architecture of a DSS

  36. Common DSS Models Information Systems Today: Managing in the Digital World 7-36

  37. Using DSS to Buy a Car Selling price – $22,500 Down payment – $2,500 Monthly payment – about $400 Interest rate information from the bank

  38. 2. Intelligent Systems Artificial intelligence Simulation of human intelligence Reasoning, learning, sensing, hearing, walking, talking, etc.

  39. Intelligent Systems Three types Expert systems Neural networks Intelligent agents

  40. Expert Systems Use reasoning methods Manipulate knowledge rather than information System asks series of questions Inferencing/pattern matching Matching user responses with predefined rules If-then format

  41. Neural Network System Approximation of human brain functioning Training to establish common patterns Past information New data compared to patterns E.g., loan processing

  42. Example: Neural Network System Loan processing system relying on a neural network -42

  43. Intelligent Agent Systems Program working in the background Bot (software robot) Provides service when a specific event occurs

  44. Intelligent Agent Types Buyer agents (shopping bots) – search for best price User agents – perform a task for the user Monitoring and sensing agents – keep track of key information Data-mining agents – analyze large amounts of data Web crawlers (web spiders) – browse the Web for specific information Destructive agents – malicious agents designed by spammers

  45. 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

  46. Visualization Display of complex data relationships using graphical methods Visualization of a weather system

  47. Text Mining Extraction of information from textual documents Web crawlers used to extract information from Internet

  48. 4. Office Automation Systems Developing documents, scheduling resources, communicating Examples Word processing Desktop publishing Electronic calendars E-mail

  49. 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 Need for new collaboration technologies

  50. Video Conferencing Costs – few thousand dollars to $500,000 Dedicated videoconferencing systems Located within organizational conference rooms Highly realistic

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