MIS 301 Information Systems in Organizations Dave Salisbury ( ) (web site)

IS&T Investment Profit Operational Systems Revenue Strategic Systems Costs + – + – Why We Invest in IS&T Management Support & Decision Systems

Decisions in Business Decisions Information Decision Characteristics Unstructured Semi-structured Structured Strategic Management Tactical Management Operational Management Ad Hoc Unscheduled Summarized Infrequent Forward Looking External Broad Scope Prespecified Scheduled Detailed Frequent Historical Internal Narrow Focus Short Time Frame

Management Reports Periodic Scheduled Reports Periodic Scheduled Reports Exception Reports Demand Reports and Responses Demand Reports and Responses Push Reports Major Management Information Systems Reports

Management Roles Interpersonal - figurehead, leader, liaison Informational - monitor, disseminator, spokesperson Decisional - entrepreneur, problem solver, resource coordinator, and negotiator

Simon & the Rational Person Humans can be rational actors, their rationality is bounded by their limitations Humans tend to satisfice, or settle on the first acceptable option, rather optimizing Information stored in computers can increase human rationality if accessible when needed The central problem is not how to organize to produce efficiently, but how to organize to make decisions (i.e. process information)

IT Provides Assistance to... Communicate and/or distribute knowledge Collaborate with other workers Routinize procedures Capture and codify knowledge Create knowledge

Two Key Issues Uncertainty Lack of information Ambiguity Lack of structure

Data, Information, Knowledge Data are a collection of: Facts Measurements Statistics Information is organized or processed data that are: Timely Accurate Knowledge is information that is: Contextual Relevant Actionable

Knowledge Types Explicit Knowledge Facts, figures Easily codified Easily transmitted People to Documents Learn by studying Codify in programs and systems Tacit Knowledge Experiences Not easily codified Hard to transmit People to People Learn by doing Share by networking holders of the knowledge

Knowledge Management Structuring of knowledge enables effective and efficient problem solving dynamic learning strategic planning decision making. Knowledge management initiatives focus on identifying knowledge how it can be shared in a formal manner leveraging its value through reuse. Knowledge management can promote organizational learning help solve problems

Knowledge Management Systems Communication technologies allow users to access needed knowledge and to communicate with each other. Collaboration technologies provide the means to perform group work. Storage and retrieval technologies (database management systems) to store and manage knowledge.

Knowledge & IT Codify knowledge for transfer Easily reusable People to documents Individual-level standardization a.k.a process in your book

Knowledge & IT Create networks among expert knowledge holders Knowledge lies in experts, not easily reusable Person to person Individual-level uniqueness and innovation a.k.a practice in your book

Knowledge Management Systems IT that helps gather, organize, and share business knowledge within an organization Hypermedia databases that store and disseminate business knowledge. May also be called knowledge bases Best practices, policies, business solutions Entered through the enterprise knowledge portal

Enterprise Information Portals & DSS Enterprise Information Portal Gateway Enterprise Information Portal User Interface Search Agents Search Agents OLAP Data Mining Data Mining Knowledge Management Knowledge Management Database Management Functions Data Mart Other Business Applications Operational Database Analytical Database Knowledge Base DSS What-If Models Sensitivity Models Goal-Seeking Models Optimization Models Internet Intranet Extranet

Online Analytical Processing Enables interactive examination/manipulation of detailed & consolidated data from many perspectives Analyze complex relationships to discover patterns, trends, and exception conditions in real time Consolidation The aggregation of data. From simple roll-ups to complex groupings of interrelated data Drill-Down Display detail data that comprise consolidated data Slicing and Dicing The ability to look at the database from different viewpoints. When performed along a time axis, helps analyze trends and find patterns

Decision Support Systems What If-Analysis Sensitivity Analysis Goal-Seeking Analysis Optimization Analysis Important Decision Support Systems Analytical Models Important Decision Support Systems Analytical Models

Data Mining for Decision Support Software analyzes vast amounts of data Attempts to discover patterns, trends, & correlations May perform regression, decision tree, neural network, cluster detection, or market basket analysis

Management Support Systems Decision Support Systems (DSS) provide support primarily to analytical, quantitative types of decisions. Executive (Enterprise) Support Systems (ESS) support the informational roles of executives. Group Decision Support Systems supports managers and staff working in groups. Intelligent Systems

Decision Process Act on it Review It Define the Process or Problem Define the Process or Problem Develop Alternative Courses of Action Develop Alternative Courses of Action Select The “Best” One Select The “Best” One Intelligence phase Modeling phase Choice phase Implementation phase

Models as decision making aids A model (in decision making) is a simplified representation of reality. The benefits of modeling in decision making are: Cost of virtual experimentation is much lower Simulated compression of time. Manipulating the model is much easier The cost of mistakes are much lower Modeling for “what-ifs” Analysis and comparison of a large number alternatives Models enhance and reinforce learning

Group Decision Support Systems Decision making is frequently a shared process involving groups using group decision support systems (GDSS). Groups Co-located Dispersed Process structuring Problem structuring

Executive Information & Support Systems Serves top management Original intent – provide executives with immediate, information about the firm “critical success factors” Features of an EIS Information presented in forms tailored to the preferences of the users Most stress use of graphical user interface and graphics displays May also include exception reporting and trend analysis Very user friendly Supported by graphics Provide drill down (investigating information in increasing detail). ESS goes beyond EIS to include: Analysis support Communications Office automation Intelligence support

Artificial Intelligence Cognitive Science Applications Cognitive Science Applications Artificial Intelligence Artificial Intelligence Robotics Applications Robotics Applications Natural Interface Applications Natural Interface Applications Expert Systems Fuzzy Logic Genetic Algorithms Neural Networks Visual Perceptions Locomotion Navigation Tactility Natural Language Speech Recognition Multisensory Interface Virtual Reality

AI Application Areas in Business Neural Networks Fuzzy Logic Systems Virtual Reality Expert Systems AI Application Areas in Business AI Application Areas in Business Intelligent Agents Genetic Algorithms

Intelligent Agents Interface Tutors Interface Tutors Presentation Agents Presentation Agents Network Navigation Agents Network Navigation Agents Role- Playing Agents Role- Playing Agents User Interface Agents Information Management Agents Search Agents Search Agents Information Brokers Information Brokers Information Filters Information Filters

Expert Systems The Expert System Knowledge Base User Workstation Expert Advice User Interface Programs User Interface Programs Inference Engine Program Inference Engine Program Expert System Development Workstation Knowledge Engineering Knowledge Acquisition Program Knowledge Acquisition Program Expert and/or Knowledge Engineer

Expert System Applications Decision Management Diagnostic/Troubleshooting Maintenance/Scheduling Design/Configuration Selection/Classification Major Application Categories of Expert Systems Process Monitoring/Control