Today’s Goals Concepts  I want you to understand the difference between  Data  Information  Knowledge  Intelligence

Today’s Goals Concepts  I want you to understand the difference between  Accuracy  Precision  Reliability  as they pertain to data and information

Today’s Goals Learn about  System concepts and modeling  information system concepts  Importance of feedback in streamlining systems  Importance of people in Information Systems

Chapter 1 Highlights  What exactly are these things –a management information system (MIS) –a database management system (DBMS) –a transaction processing system (TPS) –a workflow system –an enterprise resource planning system (ERP) –a decision support system (DSS) –an expert system

Data vs. Information  Data: raw facts  Information: collection of facts organized in such a way that they have value beyond the facts themselves

Data vs. Information  Excel example

Knowledge  Awareness of information  Understanding information enough to perform a task or make a decision.

Intelligence  While knowledge can help you complete a task or make a decision, Intelligence helps you figure out –which tasks to complete or –which decisions you should be making. –which questions you should be asking.  For example, –you might NOT know how to write a SQL subtraction query (i.e., you lack knowledge of SQL) –but you know the type of task that should be done to streamline your processing.

What comes first?  Some people are incredibly knowledgeable in certain areas and seem to make intelligent decisions in a familiar system. Is this really intelligence?  Some people are incredibly intelligent but lack the necessary knowledge to operate in an unfamiliar system?  Does intelligence derive from knowledge or vice versa?  What do you think?

Characteristics of Valuable Data  Accurate – how close are you to being correct, truthful  Complete – anything missing?  Economical – how much does this data cost?  Flexible – data serves a variety of purposes  Reliable – How is this different than accurate?

Characteristics of Valuable Data  Simple – will the data be overwhelming?  Timely – will I get it in time?  Verifiable – how do I know its accurate?  Accessible – here is where the WWW comes in?  Secure – protect data from the bad guys.

VS. Accuracy vs. Reliability vs. Precision  Q: How much inventory do we have?  Truth: $55, worth. –A1: Between $55,000 and $56,000 worth –A2: $53, worth

Reliability  Two different aspects.  How often is the data accurate?  How often is accurate data available?  A source of data could be unreliable –because it is occasionally wrong, or –because it is occassionally unavailable.

Systems

Information System  Just like any system but  Information is the Input and Output.

System Characteristics Improve your technical vocabulary  Simple  Complex  Open  Closed  Stable  Dynamic  Adaptive   Non-adaptive (static)  Permanent   Temporary

Effectiveness  Measure of how much a system met its goals.  System Performance Standards

Feedback  Feedback might be the most crucial component of an Information System  What is feedback exactly?

Feedback  Output used to make changes to the input and processing components.  Sometimes, feedback can even tell you that your Information System is failing and should be massively re- engineered.

People  Modern computer-based Information Systems consist of Hardware, Software, Databases, Networks, and People! –Duh, right?  Not so intuitive is the fact that People are the most important component.  Because of the Intelligence  Feedback connection.

Mass Mailing  Old System 18,000 Names & Address (XLS) ed from Alumni assoc. 18,000 Formatted Labels (DOC) Import & Mail merged 18,000 Label Stickers (Paper) Printing $250/year maintenance $1600 printer 17,000 Letters (Paper) Prune 1000 labels Exclude list 100+ hours of labor $0.80 per letter

Mass Mailing  Current System 18,000 Names & Address (XLS) ed from Alumni assoc. Alumni List 18,000 DB entries Import into Access Exclude List 1,000 DB entries Updated as we get back hate mail 17,000 DB entries SQL Subtraction Query Exported & Sent directly to Mailing House ($0.60 per letter)

Mass Mailing  New System 17,000 Names & Address (XLS) ed from Alumni assoc. Exclude List 1,000 DB entries Continuous Feedback to Alumni Assoc. Excel file sent direct to mailing house.

Information Systems  What are the differences between these things: –a database management system (DBMS) –a transaction processing system (TPS) –a workflow system –a management information system (MIS) –an enterprise resource planning system (ERP) –a decision support system (DSS) –an expert system

DBMS  Organizes your data.  Handles implementation issues –How will the data be stored? –How will the data be structured? –How will the data be connected (relationships)  Examples: Access, Oracle  Main goal: Storage of Data

TPS  Paper  Digital  Manual  Automated  Handles implementation issues –How will transactions be recorded? –How often? –Who is involved?  Main goal: Capturing Data  May have a DBMS inside.

Workflow Systems  Integrates TPS data to help stream- line or improve tasks or processes.  Helps with organizational issues –Can two tasks be combined? –Is a task even necessary? –How can steps be simplified?  Main goal: Streamlining Tasks or Processes

MIS  Provides information (not data) to managers  Helps with decisions –Who is our best customer? –What is our greatest expense? –Are we making a profit?  Main goal: Transforming data to information, i.e., reporting.  MIS systems are often feed data through TPS and DBMS systems  Example: Banner.

ERP  Companies might have separate MIS systems for different operational divisions –(payroll, shipping, R&D, etc.)  ERP systems seek to combine all of these systems into managerial super-system. –Enterprise implies a huge multi-site, global organization.  Main goal: Streamlining workflow for a whole company and integrating data from all business operations.  Example: PeopleSoft,

DSS  Similar to an ERP, i.e., information from different operational divisions is integrated.

DSS  However, unlike ERP, DSS includes a collection of models used to support decision making, i.e., models of the best business practices.  Managers often play a role in developing DSS to customize it to a particular enterprise.  MIS and ERP system provide information to help managers “do things the right way”  DSS system help managers “do the right thing.”

Expert Systems  Use artificial intelligence and machine learning to help make decisions automatically.  Unlike DSS, expert systems try to remove human decision making by building “intelligence” into the system.  DSS systems merely provide information about different alternative so that a human can make the final decision.

MIS How is data transformed into information DBMS How is data stored TSP How is data captured Workflow System Is there a better way to capture, store, and transform data feedback data

MIS DBMSTSP MIS DBMSTSP MIS DBMSTSP ERP