Presentation on theme: "Business-related Information Systems"— Presentation transcript:
1 Business-related Information Systems EIS - Executive Information SystemsMIS - Management Information SystemsDecision Support SystemsTransaction Processing Systems
2 Transaction Processing Systems The lowest level of information systemUsed by businesses to record “transaction” informationTransactions include things like booking airline tickets, purchasing goods or services
3 Management Information Systems A step up from TPSThis type of systems is used for routine reportingReports are used to monitor and control normal business activities
4 Decision Support Systems Similar in some ways to MISUsed to solve unusual problems, and problems that fall outside the capabilities of the MIS
5 Executive Information Systems The King of the Hill!! (Topmost systems)High-level systems designed to provide Senior Management with information on general trends in business activities rather than the intimate detailsUsed to help S.M.. formulate business strategies, and plan for the future
6 Characteristics of decisions and information needs when ascending the diferent business levels. Less structured problems and decisionsGreater need for summarised informationGreater need for external informationLonger time horizion
7 Transaction Processing Systems The lowest level of Business systemProvides raw data used in processing in EIS, MIS and DSSTPS are important for a business. They manage the data that keeps the business going, e.g. Airline ticket bookings, etc.
8 Transaction Processing Systems (cont’d) TPS accept input related to a transaction event, process it, and produce outputThe primary users of a TPS are staff at the Operational, or lowest-level, of a business
10 What is a Management Information System? A MIS provides Managers with reports on an organisations performance - both past and present.MIS server Managers by helping them monitor actual business performance, and predict future performance.
11 General Properties of a MIS? Used to help Managers track current performance, and predict future performanceBased upon underlying TPS. Transaction data is compressed by summarisation, and presented in long reports.Reports are produced on a regular basis answering routine, structured questions
12 General Properties of a MIS (cont’d) MIS serve Managers interested in Weekly, Monthly, and/or Yearly resuts, not day-to-day.Data is provided from internal company sources only.Uses simple calculatory routines such as summaries and comparisons, not sophisticated statistical analysis
13 General Properties of a MIS (cont’d) Not very flexible. Reports and data are structured according to the original MIS design, this generally cannot be easily changed to provide different data.Development of a MIS requires a lengthy analysis and design process, typcially in the order of 1 to 2 (or more!) yearsLess graphically-oriented than EIS
14 Dynamics of a MIS Inputs: Processing: Summary of Transaction Data High-volume dataSimple modelsProcessing:Routine ReportsSimple ModelsLow-level analysis
15 Dynamics of a MIS (cont’d) Outputs:Summary and Exception ReportsTypical MIS Users: Professionals and Staff Managers
18 Decision Support Systems Definition: A DSS is a coherent system of computer based technology used by managers as an aid to their decision making in semi-structured tasks.Conceptually, DSS and MIS overlap in many aspects, but generally:MIS are used to produce routine reportsDSS use more sophisticated analysis and data modelling tools to solve semi-structured problems
20 The characteristics of a DSS Structured and semi-structured decisionsUsed by managers at different levelsUsed both by groups and individualsSupports a variety of decision styles and processesIt has adaptability and flexibilityEase of useIts based on effectiveness and not effciency
21 Components of a DSSDSS Database - data from internal TPS. Unlike MIS, this can contain data from inventory, production, and accounting sourcesModel Base - Analytical tools used by the DSS. These include built-in spreadsheeting, statistical analysis, and simulation
22 Components of a DSS (cont’d) DSS software system - program to allow easy interaction between users of the system and the DSS database and model base
23 DSS - Questions Where does it obtain its data from? What does it do with the data?What Management and Business problems does the system solve?What difference does a DSS make for a firm?
24 DSS - Answers From the organisations internal transaction files Spreadsheet modelling, What-If scenarios, Regression Analysis, Graphical projection of performanceMonitoring and controlling a production process. Frees Managers time to control production
25 DSS - Answers (cont’d)Provides rapid access to up-to-date information. Also aids quick reaction to unanticipated problems that occur
27 Tools used in a DSSWhat-If analysis tools (found in most spreadsheets)What-if analysis allows users of a system to quickly calculate and display the results of many combinations of input values in a model.
29 ProjectionProjection tools typically use historical data gathered by the TPS and compressed by the MISThis data is used to project future trends based upon past and present information about market behaviourGenerally makes use of the What-If capabilities in a DSS
30 Regression AnalysisAdvanced routines to predict values based upon relationships in existing data.Seeks to analyse how a single dependant variable is affected by the values of one or more independent variables.
31 Regression Analysis (cont’d) Example:Several factors may contribute to an athletes performance: Age, Sex, Height, Weight. Regression apportions shares in the performance measure to each of the factors based up a set of performance data.Regressive results can be used to try and predict the performance of a new, untested athlete.
32 Cash Flow analysis Important to know: what incomings and outgoings there are in a company for planning purposesWhen do they take place?the lead time between incurring an expense and paying for itthe lag time between making a sale and collecting money from debtors
33 What problems does the DDS solve? Monitoring and controlling of production processesBetter quality control of final productBetter planning capabilitiesFaster reaction times
34 What differences does it make to the company? Increase in the number of alternatives examinedBetter understanding of the businessImproved communication and controlLowering of costsImproved efficiencyImproved productivityMakes better use of data resourcesBetter decisions
35 Examples of DSSAmerican airlines: for pricing decisions and choosing air routesIBM: for determining routing for repair peopleTexas oil and gas: for evaluating potential drill sitesNational Gypsum: corporate planning and forecasting.
37 Definition: An EIS is a software product, front-ended by a user friendly terminal and software interface which electronically provides executives (senior management) with rapid and relaible access to information regarding key areas of the business.
38 General Properties of an EIS Used for strategic business planningRelatively long time-frame consideredUnstructured and open-ended (many variables can be considered)For accurate results EIS require information from inside and outside the business
39 General Properties of an EIS Graphically oriented to provide readily understandable views of complex dataTailored to suit an executive’s decision making styleprovides rapid access to current information and filters and tracks critical dataIts major activity is information scanning and evaluation, it deals mainly with the intellegence phase of decision-making.
40 Benefits of executive information systems Improved financial and operational controlEnhances business problem solving(eg British Airways during the 1986 libyan crisis).Helps in the identification of new opportunities (eg tour operators use it to identify new holiday destinations)Increases IT awareness among senior management.
41 What are the information needs of executives Three classical criteria: Timeliness, accuracy and relevance.Should focus on the critical success factors:The limited number of areas in which results, if satisfactory, will ensure successful competitive performance for the organisation.
42 What are the information needs of executives (cont’d) Five main types of information based on CSF:Key problem narravtives (highlights overall performance, key problems and causes of problems)Highlight charts (highlight areas of concern)Top-level financial displaysKey factors (displays measures of key performance indicators)Detailed KPI responsibility reports (performance reports on areas critical to the success of the company)
43 Types of EISFor focusing on executive communications and office work, e.g. , document handling, schedulingBetter interface for existing corporate dataFor developing elaborate scenarios involving business data
45 EIS and corporate planning EIS are ideal for aiding Executives in planning for an organisation or businessEIS give a good overview of trends in business data that can be used to more accurately determine planning for the future
46 EIS Graphics Display Strong graphical element in displaying data Data is displayed in as simple a form as possible, e.g. line/bar charts etc..Colour is often used to provide extra informationFrom an EIS screen the Manager can usually “drill down” for more info
47 Tools and TechniquesTypically the EIS resides on a central computer, e.g. a powerful PC or even mainframeExecutives access the information from a PC on their desktop via a networkThe information can be viewed and manipulated on-screen, and printed out on paper
48 Consolidation of Information Data is extracted from a number of sourcesOutside the company - Customers, News Services, GovernmentInside the company - TPS, financial systems, HR, Marketing depts.
49 EIS Problems and Issues PeopleWhat data do Executives really want?Changes in Executives data requirements over timeLevel of computer skills in the group using the system
50 EIS Problems and Issues OrganisationalCost of implementing the systemChanges may be needed to create, install, and use the new EIS system
51 EIS Problems and Issues TechnologyRetaining compatibility with older “Legacy” systemsIntegrating data from different sources into the new system can be complex. At worst it may need to be typed into the new systemObsolescence