Types and Importance of Information systems

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

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

The Competitive Advantage - GOOD Access to a world market Improve quality Aid employee communication Reduce costs Increase productivity Improve company morale Serendipitous Surfing: Politics

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

Information Quality Charged vs Allowed Amt Quality (GIGO) Nights at BMI Accessibility Charged vs Allowed Amt Completeness Statements on Demand Timeliness Relevance (Information overload)

Business System Model Plan Organize Lead Control Strategic Management Tactical Management Operational Management Clerical Level Resources Functions Products & Services Employees Managers Government Customers Stockholders Financial Institutions Colleges/ agencies Media

Filtering Information The right information - the right decision maker - the right time - the right form. Clerical Level (Transaction Handling) Operational Level (Exception Reports) Tactical Level (What-if Reports) Strategic Level (One-time Reports, What-if Reports or Trend Analyses)

Making Decisions Programmed Decisions Well-Defined Problem Unstructured Problem Information-Based Decisions

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

Information System Types Manual system No hardware No software

Transaction Processing Systems (TPS) Activities: Transaction handling Record-keeping Action documents Scheduled reports Primarily support: Clerical personnel Operational-level managers Inflexible MIS DSS EIS

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

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 capabilities Boosts system security Management focused reports MIS uses an integrated database

(also, Inventory Control) MIS In Action Airline Reservation System (also, Inventory Control)

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

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

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

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

more. . . DSS Tool Box Applications Development Data Management 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. . .

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

DSS Tool Box Inquiry Graphics Consolidations Application-Specific

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

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

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

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

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

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 $$

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.