1. Types and Importance of Information systems

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

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

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

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

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

7. 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

8. 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)

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

10. 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

11. Information System Types
Manual system
No hardware
No software

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

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

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

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

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

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

18. 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. . .

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

20. 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. . .

21. 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. . .

22. DSS Tool Box
Inquiry
Graphics
Consolidations
Application-Specific

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

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

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

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 for call center
Scan internet or a few databases for best vacation possibility

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

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 $$

29. MIS Solution Workshop
Customers are complaining that orders are arriving late.
Five people handle customer service 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.