I NFORMATION S YSTEMS 1

O BJECTIVES Importance of information systems 4 levels of users (filtering info) Information system types Different decision types 2

W HY ? 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) 3

T HE C OMPETITIVE A DVANTAGE - GOOD Access to a world market Improve quality Aid employee communication Reduce costs Increase productivity Improve company morale 4 Serendipitous Surfing: Politics

C OST, R ISK, AND C HANGE - BAD IT solutions can be expensive and time consuming Element of risk in the implantation of IT Implementing IT means change 5

I NFORMATION Q UALITY Quality (GIGO) Accessibility Completeness Timeliness Relevance (Information overload)

B USINESS S YSTEM M ODEL 7 Strategic Management Tactical Management Operational Management PlanOrganizeLeadControl Clerical Level ResourcesResourcesFunctionsFunctions Products & Services Services EmployeesManagersGovernmentCustomersStockholders Financial Institutions Colleges/ agencies Media

F ILTERING I NFORMATION 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) 8 The right information - the right decision maker - the right time - the right form.

M AKING D ECISIONS 9 Programmed Decisions Information-Based Decisions Well-Defined Problem Unstructured Problem

W HAT C AN I NFO S YSTEM D O ? 10 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

I NFORMATION S YSTEM T YPES Manual system No hardware No software 11

T RANSACTION P ROCESSING S YSTEMS (TPS) Activities: Transaction handling Record-keeping Action documents Scheduled reports Primarily support: Clerical personnel Operational-level managers Inflexible 12 MIS DSS EIS

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 13

D ECISIONS S UPPORT S YSTEMS Interactive Integrated set of hardware and software tools Produce information to support decision-making process 14

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

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

DSS C HARACTERISTICS 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

DSS T OOL B OX 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) 18 more...

DSS T OOL B OX Modeling Decisions involve many factors Uncertainty and risk present Statistical Analysis Risk Analysis Trend Analysis Planning What-If Goal Seeking 19 more...

DSS T OOL B OX Inquiry Graphics Consolidations Application-Specific 20

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 21

E XPERT S YSTEMS 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 a ssistant system 22

E XPERT S YSTEM E XAMPLE 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 23

I NTELLIGENT A GENTS 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 for call center Scan internet or a few databases for best vacation possibility 24

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 25

O BJECTIVE S UMMARY 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 26

T HANK YOU 27