Types of Information Systems MBA 572 Craig K. Tyran Fall 2002

A. Game Plan Introduction Transaction vs. Analytical Processing Types of information systems

B. Introduction Who cares? Useful to become reacquainted with the range of capabilities of IS And … the related acronyms OLAP, TPS, MIS, DSS, ES, ERP, … Also important to refresh on the relationships between different types of systems

C. Transaction vs. Analytical Processing Online transaction processing (OLTP) What is a business “transaction”? Example??? An OLTP type of system captures new info, does basic processing, updates existing info e.g., bar code scanner, calculation of check-out bill Online analytical processing (OLAP) An OLAP system manipulates info to support decision making e.g., a “what-if” spreadsheet model, a database query, data mining

D. Transaction Processing Systems (TPS) Emerged in the early days of IS Collect, store, and process transactions Perform routine, repetitive tasks Found in all functions of an organization At the very heart of every organization Used as the source of data for other systems If TPS fails, the whole organization may suffer!!!

Order Entry TPS

D. Transaction Processing Systems (TPS) – cont. 2. Other examples of TPS ??? 3. OLTP or OLAP??

E. Management Information Systems (MIS) Evolution of IS types … MIS followed TPS MIS Provide periodic and routine reports e.g., summary reports, exception reports, comparison reports Alternate name: “Management Alerting Systems” Alert managers to problems/opportunities A very common management tool … but Some managers get swamped with lots of paper (or electronic reports) 3. Note: For those that know MS Access You have probably created customized MIS reports

MIS Example

Purchase Order Report (Created with MS Access)

E. Management Information Systems (Cont.) 4. OLTP or OLAP?? 5. A MIS typically uses information that is stored in a database ... Quick review: What type of IS may be used to capture the info in the first place??? What is the relationship between TPS and MIS? TPS (captures/stores info)  MIS (uses info to create reports)

F. Decision Support Systems (DSS) DSS are developed to support: Complex and/or non routine decisions “What if” analysis DSS can be use to support people at all levels of an organization Have you ever developed a DSS??

F. Decision Support Systems (cont.) 3. Examples Car Loan DSS MS Excel and VBA “Cow culling” DSS at http://ag.arizona.edu/AREC/cull/culling.html

DSS Example: Car Loan

DSS Example: Cow Culling

F. Decision Support Systems (cont.) Do DSS replace human decision makers? OLTP or OLAP? Components of a DSS Data management Model management User Interface management Mail management

DSS Components

G. Group Decision Support Systems (GDSS) Designed to support/improve performance of teams e.g., Group meetings Include support for Communication Group decision making

G. Group Decision Support Systems (GDSS) 2. OLTP or OLAP?

H. Expert Systems (ES) and Artificial Intelligence (AI) ES and AI “Intelligent” systems Appear to replicate human thought processes of “experts” Typically process facts, not numbers Can be used to find patterns in data Examples Whale watcher demo at http://www.aiinc.ca/demos/whale.html

H. Expert Systems (ES) and Artificial Intelligence (AI) (cont.) 2. Examples (cont.) Other examples ? ? 3. OLTP or OLAP?

I. Focus of MBA 572 This course will focus on systems and topics related to OLAP Support for management decision making e.g., DSS, GDSS, ES, Data Warehouses, Executive Information Systems, etc.