2. 1 Information Systems Chapter 9a Acknlowledgement to Computers: Information Technology in Perspective By Long and Long Copyright 2002 Prentice Hall, Inc.

3. 2 Objectives Importance of information systems 4 levels of users (filtering info) Information system types Different decision types

4. 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

5. 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

6. 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

7. 6 Information Quality Quality (GIGO) Accessibility Completeness Timeliness Relevance (Information overload)

8. 7 Strategic Management Tactical Management Operational Management PlanOrganizeLeadControl Clerical Level ResourcesResourcesFunctionsFunctions Products & Services Services Business System Model EmployeesManagersGovernmentCustomersStockholders Financial Institutions Colleges/ agencies Media

9. 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) 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.

10. 9 Making Decisions Programmed Decisions Information-Based Decisions Well-Defined Problem Unstructured Problem

11. 10 What Can Info System Do? Retrieve Record Update Summarize Select Manipulate Processing Hard copy Soft copy Control Output Data Text Images Other digital information StorageInput  Source Data  Inquiry  Response to prompt  Instruction  Message  Change

12. 11 Information System Types Manual system No hardware No software

13. 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

14. 13 Management Information System An MIS is a computer-based system that optimizes the collection, transfer, & presentation of information throughout an organization by using an integrated structure of databases & information flow. My Definition: System used to support management activities

15. 14 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 capabilitiestimely Boosts system securitysecurity Management focused reportsreports MIS uses an integrated database

16. 15 MIS In ActionAirlineReservationSystem (also, Inventory Control) AirlineReservationSystem

17. 16 Decisions Support Systems interactive integrated set of hardware and software tools produce information to support decision- making process

18. 17 DSS vs. MIS MIS: structured problems designed to support a set of applications DSS: semistructured and unstructured problems can be adapted to any decision environment

19. 18 DSS Characteristics Helps decision maker Semistructured & unstructured problems Most effective for tactical & strategic management levels Interactive and user-friendly; little IT help needed more...

20. 19 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

21. 20 DSS Tool Box Applications Development Quick application building Throwaway systems Support a one-time decision Data Management Data Warehousing (combine and offer preset relationships) Data Mining (search warehouse for new relationships) more...

22. 21 DSS Tool Box Modeling Decisions involve many factors Uncertainty and risk present Statistical Analysis Risk Analysis Trend Analysis Planning What-If Goal Seeking more...

23. 22 DSS Tool Box Inquiry Graphics Consolidations Application-Specific

24. 23 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

25. 24 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

26. 25 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

27. 26 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

28. 27 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

29. 28 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, Intelligent Agent Importance of information systems $$

30. MIS Solution Workshop Customers are complaining that orders are arriving late. Five people handle customer service e-mail every day, sending some standard replies and forwarding the rest. They cannot keep up with the volume. You run the customer service department for a retail bank. People are currently on hold for over 20 minutes sometimes. You are the CEO of a small company. You are planning your budget for next year, and you need to know how much income to expect in the next year. You have been calculating this manually in the past.