1. © Arjan Raven and Duane Truex1 Business Information Systems LEARNING OBJECTIVES 1.Define and describe the repository components of business information systems (BIS): Production Databases, Data Warehouse, Knowledge Repository 2. Define and describe the BIS applications: TPS, MIS, OLAP (including DSS/EIS/GDSS), Data Mining, Search Engines, Content Editing and Production Tools 3. Define and describe the relationships between the repositories and applications

2. © Arjan Raven & Duane Truex2 The B usiness S ystems Architecture Production Database Data Warehouse Knowledge Repository Transaction Processing Systems (TPS) Management Information Systems (MIS) Data Mining (Inductive reasoning) Search Engines & tools Content Editing & Production tools Organizational Memory Information System (OMIS) DSS, GDSS & EIS External Data Sources On-line Analytical Processing (OLAP) (Deductive) Collaboration and Coordination tools

3. © Arjan Raven & Duane Truex3 Definitions (1): Repositories Production Database A collection of pre-specified and highly organized(mostly) textual data in a relational database. Used by TPS and MIS. Has to be very fast and robust Data Warehouse Like production database, a collection of pre-specified and highly organized(mostly) textual data in a relational database. Can be slower Is not mission critical.

4. © Arjan Raven & Duane Truex4 Definitions (2): Repositories, Continued Knowledge Repository Storage place for unstructured data and information Knowledge is in the linkages between the data and information (e.g. hyperlinks, maps) Knowledge is retrieved through searches Search engines add intelligence to a knowledge repository Two common implementations: Lotus Notes (Knowledge Roach Motel) Intranets

5. © Arjan Raven & Duane Truex5 External Data Sources Databases and knowledge repositories. Proprietary (paid) Public (free) Definitions (3): Repositories, Continued

6. © Arjan Raven & Duane Truex6 Definitions (4): Applications TPS (Transaction Processing System) An organized collection of people procedures, databases, and devices to record completed business transactions Any business-related exchange MIS (Management Information Systems) An information system that provides aggregated, summarized information to decision makers. Inputs typically is transaction data acquired from TPS Outputs are standardized, pre-specified reports OLAP (On-line Analytical Processing) Targeted query, the user knows exactly what she is looking for Used in Decision Support Systems (DSS), Executive Information Systems (EIS) and Group DSS (GDSS) Collaboration and Coordination tools email, calendaring,electronic bulletin boards, groupware (Lotus Notes, Groupwise…)

7. © Arjan Raven & Duane Truex7 Definitions (5): Applications, Continued Organizational Memory Information System The collection of repositories and systems that together preserve an organization’s history, and make it available for current and future use Data Mining You don’t know what you are looking for The mining software looks for patterns Uses automated statistical pattern matching algorithms Search Engines Tools that let you search through knowledge repositories Examples: Alta Vista, Excite New developments: natural language processing (Ask Jeeves); Dynamically created concept maps

8. © Arjan Raven & Duane Truex8 Definitions (6): Applications, Continued Content Editing & Production tools HTML Editors and site management tools: Dreamweaver, Frontpage, Netscape Composer Word Processors, (e.g. Word, Wordperfect) Multimedia presentation tools: Static: Powerpoint Dynamic/interactive: Dreamweaver

9. © Arjan Raven & Duane Truex9 Business Information Systems in Perspective Transaction processing systems provide the raw material for the other types of information system within most business organizations. Transaction Processing Systems Management Information Systems Decision Support Systems Complexity Dependence on external data More Routine

10. © Arjan Raven & Duane Truex10 Transaction Processing System Transaction Any business-related exchange Transaction processing systems (TPS) An organized collection of people procedures, databases, and devices to record completed business transactions Hours Worked Pay Rate Payroll Checks Payroll Transaction Processing

11. © Arjan Raven & Duane Truex11 Transaction Processing Systems Transactions Basic business activities such as customer orders, time cards, and payroll checks TPS process the detailed data necessary to update records about fundamental business operations of an organization. Data should be captured at its source. It should be recorded accurately, in a timely fashion, with minimal manual effort, and in a form that can be directly entered into the computer.

12. © Arjan Raven & Duane Truex12 Characteristics of Transaction Processing Systems Provide fast, efficient processing to handle large amounts of input and output Perform rigorous data editing to ensure that records are accurate and up to date Are audited to ensure that all input data, processing, procedures, and output are complete, accurate, and valid

13. © Arjan Raven & Duane Truex13 Example of Source Data Automation Point-of-Sale Transaction Processing System Scanner Exception Report Point-of-Sale TPS Inventory MIS Customer Receipt UPC Time, date, quantity

14. © Arjan Raven & Duane Truex14 Management Information System (MIS) An information system that provides aggregated, summarized information to decision makers. Inputs typically is transaction data acquired from TPS Outputs are standardized, prespecified reports

15. © Arjan Raven & Duane Truex15 Management Information System (MIS) Common Database TPS Financial MIS Other MISs Marketing MIS Manufacturing MIS

16. © Arjan Raven & Duane Truex16 Outputs of a Management Information System Scheduled reports Produced periodically or on a schedule (daily, weekly, monthly) Key-indicator report Type of scheduled report that summarizes the previous day’s critical activities Typically available at the beginning of each workday continued...

17. © Arjan Raven & Duane Truex17 Outputs of a Management Information System Demand reports Developed to give certain information at a manager’s request Exception reports Automatically produced when a situation is unusual or requires management action Drill-down reports Provides increasingly detailed data about a situation

18. © Arjan Raven & Duane Truex18 Decision Support Systems An information system that supports different decision making styles through on-the-fly queries and pre- specified models, using data from internal and external sources, presented according to user preferences Focus on decision-making effectiveness when faced with unstructured or semi-structured business problems Decision Support Systems can help identify potential mistakes and provide a structure that makes it more difficult for a person to make a mistake. With the use of decision support systems, employees risk losing touch with the underlying principles that guide the enterprise.

19. © Arjan Raven & Duane Truex19 Decision Support Systems Primary characteristic: performs different types of analyses “What-if” analysis Makes hypothetical changes to problem and observes impact on the results Simulation Duplicates features of a real system Goal-seeking analysis Determines problem data required for a given result

20. © Arjan Raven & Duane Truex20 Conceptual Model of a DSS Dialogue Manager User External Databases and models Models Bases Internal Databases Model Management System Database Management System Interface to External sources

21. © Arjan Raven & Duane Truex21 Artificial Intelligence Artificial intelligence A field that involves computer systems taking on the characteristics of human intelligence General Categories: Expert Systems Neural Networks Case Based Reasoning Collaborative Filtering

22. © Arjan Raven & Duane Truex22 Components of Expert Systems Subject Domain Experts User Interface Knowledge Acquisition System Subject Knowledge Base User Interface and Explanation facility Inference Engine Human

23. © Arjan Raven & Duane Truex23 AI Applications Years of overpromise and underdelivery, but now new technologies: Voice recognition Optical character recognition Handwriting recognition Search engines Tangible results, e.g. Credit Card Fraud Detection Stock market prediction Automated Helpdesks Great/Annoying Personal Assistants in Office Suite

24. © Arjan Raven and Duane Truex24 End of Business Information Systems