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Weeks 4-5: Internal Information Systems. MIS 2101: Management Information Systems Douglas M. Schutz. 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

Weeks 4-5: Internal Information Systems

MIS 2101: Management Information Systems

Douglas M. Schutz

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, Cindy Joy Marselis, Munir Mandviwalla, and Mart Doyle.

enhancing business intelligence bi using information systems
Enhancing Business Intelligence (BI) using Information Systems
  • Business Intelligence :
    • The process of gathering information from both internal and external sources to make better decisions
    • The data derived from these processes
    • Companies such as Amazon.com use Information Systems to gain BI for increasing sales and for reducing the risk of ecommerce fraud.
learning objectives
Learning Objectives
  • Describe the characteristics that differentiate the operational, managerial, and executive levels of an organization.
  • Explain the characteristics or the three MIS systems designed to support each level of an organization:
      • Transaction Processing Systems (TPS)
      • Management Information Systems (MIS)
      • Executive Information Systems (EIS)
  • Describe the characteristics seven MIS systems that span the operational, managerial, and executive levels:
      • Decision Support Systems (DSS)
      • Intelligent Support Systems
      • Data Mining and Visualization Systems
      • Office Automation Systems
      • Collaboration Technologies
      • Knowledge Management Systems
      • Functional Area Information Systems
1 operational level
1. Operational Level

Day-to-day business processes

Interactions with customers

Information systems used to:

Automate repetitive tasks

Improve efficiency

Decisions:

Structured (What are structured decisions?)

Recurring

Can often be automated (using TPSs)

Usually daily/weekly

Examples of Operational Level Decisions?

2 managerial level
2. 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

Semistructured

Contained within business function

Moderately complex

Time horizon of few days to few months

Examples of Managerial Level Decisions?

3 executive level
3. Executive Level

The president, CEO, vice presidents, possibly board of directors

Decisions

Long-term strategic issues

Unstructured decisions

Complex and nonroutine problems

Long-term ramifications

Examples of executive level decisions?

7-7

learning objectives9
Learning Objectives
  • Describe the characteristics that differentiate the operational, managerial, and executive levels of an organization.
  • Explain the characteristics or the three MIS systems designed to support each level of an organization:
      • Transaction Processing Systems (TPS)
      • Management Information Systems (MIS)
      • Executive Information Systems (EIS)
  • Describe the characteristics seven MIS systems that span the operational, managerial, and executive levels:
      • Decision Support Systems (DSS)
      • Intelligent Support Systems
      • Data Mining and Visualization Systems
      • Office Automation Systems
      • Collaboration Technologies
      • Knowledge Management Systems
      • Functional Area Information Systems
question
Question
  • What is the difference between a:
    • TPS,
    • MIS, and
    • EIS?
general types of information systems
General Types of Information Systems

Input-process-output model

Basic systems model

Payroll system example

1 transaction processing system tps
1. Transaction Processing System (TPS)

Operational level

Purpose

Processing of business events and transactions

How does TPS increase efficiency?

What are examples of business processes supported by TPS?

2 management information systems mis
2. Management Information Systems (MIS)

Managerial level

Purpose:

Produce reports

Support of midlevel managers’ decisions

What are some examples of the types of business processes supported by MISs?

3 executive information systems eis
3. Executive Information Systems (EIS)

A.k.a. Executive Support System

Executive level

Purpose

Aid in executive decision-making

Provide information in highly aggregated form

What are some examples of the types of business processes supported by EIS?

architecture of an eis inputs
Architecture of an EIS: Inputs

Internal data

External data

What other type of input do EIS systems typically have?

What is the difference between hard data and soft data?

architecture of an eis processing
Architecture of an EIS: Processing

Summarizing

Graphical interpreting

architecture of an eis outputs
Architecture of an EIS: Outputs

Summary Reports

Trends

Simulations

eis output digital dashboards
EIS Output: Digital Dashboards

Digital Dashboards

Presentation of summary information

Information from multiple sources

Ability to drill down - what does this mean?

summary types of information systems supporting each level of the organization
Summary: Types of Information Systems Supporting each Level of the Organization
  • Executive Information Systems (EIS)
    • highly aggregated information at the executive level
  • Management Information Systems (MIS)
    • reporting and analysis at the managerial level
  • Transaction Processing Systems (TPS)
    • captures and records basic business events on a day-to-day basis at the operational level

What are the trends as you go up the list?

summary types of information systems
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)

summary decision levels
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

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

amazon com and business intelligence
Amazon.com and Business Intelligence
  • 35 million customers worldwide
  • Innovations for satisfaction (Name Some?)
  • Fraud protection
  • (How?)
learning objectives33
Learning Objectives
  • Describe the characteristics that differentiate the operational, managerial, and executive levels of an organization.
  • Explain the characteristics or the three MIS systems designed to support each level of an organization:
      • Transaction Processing Systems (TPS)
      • Management Information Systems (MIS)
      • Executive Information Systems (EIS)
  • Describe the characteristics seven MIS systems that span the operational, managerial, and executive levels:
      • Decision Support Systems (DSS)
      • Intelligent Support Systems
      • Data Mining and Visualization Systems
      • Office Automation Systems
      • Collaboration Technologies
      • Knowledge Management Systems
      • Functional Area Information Systems
question34
Question
  • How does the structure of activities and decisions vary going from:

operational, to

managerial, to

executive levels of an organization?

1 decision support systems
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

databases data warehouses
Databases & Data Warehouses

Operational Databases

how can dss help your organization
How can DSS help your organization?
  • Accounting
  • Finance
  • Marketing
  • HR
  • Statistics
common dss models
Common DSS Models

Information Systems Today: Managing in the Digital World

7-42

using dss to buy a car
Using DSS to Buy a Car

Selling price – $22,500

Down payment – $2,500

Monthly payment – about $400

Interest rate information from the bank

question45
Question
  • Identify a computer systems which you have interacted with in the recent past
  • Classify the system as:
    • TPS, MIS, EIS, or DSS
  • Explain the characteristics of that system which correspond to the category you choose
2 intelligent systems
2. Intelligent Systems

Artificial intelligence

Simulation of human intelligence

Reasoning, learning, sensing, hearing, walking, talking, etc.

decision support vs artificial intelligence
Decision Support vs. Artificial Intelligence

Makes or recommends a decision for you

Helps you analyze information

three types of intelligent systems
Three Types of Intelligent Systems

a) Expert systems

b) Neural networks

c) Intelligent agents

a expert systems
a) Expert Systems

Use reasoning methods

Manipulate knowledge rather than information

System asks series of questions

Inferencing/pattern matching

Matching user responses with predefined rules

Rules are typically expressed using an if-then format

Can you provide an example with respect to car loan approval?

b neural network system
b) Neural Network System

Approximation of human brain functioning

Training to establish common patterns

Past information

New data compared to patterns

E.g., loan processing

can you recognize patterns and be trained
Can you recognize patterns and be trained?
  • 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?
example neural network system
Example: Neural Network System

Loan processing system relying on a neural network

-53

c intelligent agent systems
c) Intelligent Agent Systems

Program working in the background

Bot (software robot)

Provides service when a specific event occurs

intelligent agent types
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)

– What do Web crawlers do?

Destructive agents

– malicious agents designed by spammers

3 data mining and visualization systems
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

visualization
Visualization

Display of complex data relationships using graphical methods

Visualization of a weather system

text mining
Text Mining

Extraction of information from textual documents

What are Web crawlers?

4 office automation systems oas
4. Office Automation Systems (OAS)
  • Software and hardware for:
    • Developing documents
    • Scheduling resources
    • Communicating

What are examples of the types of OAS?

5 collaboration technologies
5. Collaboration Technologies

Increased need for flexible teams

Virtual teams – dynamic task forces

What are characteristics of virtual teams?

Need for new collaboration technologies

groupware
Groupware

Enables more effective team work

Distinguished along two dimensions

6 knowledge management systems
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

What are examples of knowledge assets?

7 functional area information systems
7. Functional Area Information Systems

Cross-organizational-level MIS Systems

Support specific functional area

Focus on specific set of activities

the growing blogosphere
The Growing Blogosphere

One of the fastest growing phenomena in the digital world

too much technology rfid and privacy
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