Information Systems

1. Information Systems

2. Objectives • Importance of information systems • 4 levels of users (filtering info) • Information system types • Different decision types

3. Why? • Understand your role in a system better • Know what systems are available to you • Be a better user to the IT group • Make good IT management decisions • Info Systems cost A LOT of money (Cost Vs Benefit Ratio)

4. The Competitive Advantage - GOOD • Access to a world market • Improve quality • Aid employee communication • Reduce costs • Increase productivity • Improve company morale Serendipitous Surfing: Politics

5. Cost, Risk, and Change - BAD • IT solutions can be expensive and time consuming • Element of risk in the implantation of IT • Implementing IT means change

6. Information Quality Quality (GIGO) Accessibility Completeness Timeliness Relevance (Information overload)

7. Employees Managers Government Customers Stockholders Financial Institutions Colleges/ agencies Media Business System Model Plan Organize Lead Control Strategic Management Tactical Management Operational Management Clerical Level Resources Functions Products & Services

8. Filtering Information • Clerical Level (Transaction Handling) • Operational Level (Exception Reports) • Tactical Level (What-if Reports) • Strategic Level (One-time Reports, What-if Reports or Trend Analyses) The right information - the right decision maker - the right time - the right form.

9. Making Decisions Programmed Decisions Well-Defined Problem Information-Based Decisions Unstructured Problem

10. Input Storage Output Processing • Retrieve • Record • Update • Summarize • Select • Manipulate • Hard copy • Soft copy • Control • Data • Text • Images • Other digital information • Source Data • Inquiry • Response to prompt • Instruction • Message • Change What Can Info System Do?

11. Information System Types • Manual system • No hardware • No software

12. Transaction Processing Systems (TPS) • Activities: • Transaction handling • Record-keeping • Action documents • Scheduled reports • Primarily support: • Clerical personnel • Operational-level managers • Inflexible MIS DSS EIS

13. MIS vs. DP • MIS offers greater flexibility • MIS integrates the information flow • MIS caters to information needs of all management levels • MIS are more timely and have online inquiry capabilities • Boosts system security • Management focused reports • MIS uses an integrated database

14. Decisions Support Systems • Interactive • Integrated set of hardware and software tools • Produce information to support decision-making process

15. DSS vs. MIS • DSS • Semi-structured and unstructured problems • can be adapted to any decision environment MIS • structured problems • designed to support a set of applications

16. DSS Characteristics • Helps decision maker • Semistructured & unstructured problems • Most effective for tactical & strategic management levels • Interactive and user-friendly; little IT help needed more. . .

17. DSS Characteristics • Uses models, simulations, & analytical tools • Readily adaptable to any decision environment • Interacts with a corporate database • Not used for pre-established production schedule • Often makes helpful charts • EX: Forecasting; Chase MIS statistics warehouse analysis

18. DSS Tool Box • Applications Development • Quick application building • Support a one-time decision • Data Management • Data Warehousing (combine and offer preset relationships) • Data Mining (search warehouse for new relationships) more. . .

19. DSS Tool Box • Modeling • Decisions involve many factors • Uncertainty and risk present • Statistical Analysis • Risk Analysis • Trend Analysis • Planning • What-If • Goal Seeking more. . .

20. DSS Tool Box • Inquiry • Graphics • Consolidations • Application-Specific

21. EIS – DSS with a twist • Executive Information System • Just DSS for executives • Each tool is designed specifically to support decision making at the executive levels of management • Primarily the tactical and strategic levels

22. Expert Systems • An Expert System is an interactive system • Responds to questions • Asks for clarification • Makes recommendations • Helps the user in the decision-making process • Simulates human thought process • Reasons, draws inferences & makes judgments (heuristic knowledge) • Information acquired from live domain experts • Highest form of knowledge-based systems, not an assistant system

23. Expert System Example • Printer - Replace technical support people • Diagnosis help (you relate symptoms and it asks for more info) • Assistant system (call center; life ins quotes) • Knowledge base contains • Means of identifying problem • Possible solutions • How to progress from problem to solution

24. Intelligent Agents • Type of artificial intelligence • Agent may work on: • An ongoing goal • An action triggered by an event • A one-time goal • Internet intelligent agents growing • Scan internet for best price • Sort through e-mail for call center • Scan internet or a few databases for best vacation possibility

25. INFORMATION SYSTEMS • Manual • Data Processing – Filing cabinet • MIS – Timely inquiries, focused reports • DSS – interpret unstructured facts, what if • Expert Systems – move user through process • Intelligent Agents – event triggers

26. Objective Summary • Different decision types • Structured, semi-structured, unstructured • 4 levels of users (filtering info) • Clerical, operational, tactical, strategic • information system types • Manual, DP, MIS, DSS, EIS, Expert system, Intelligent Agent (AI) • Importance of information systems

27. Thank you