1. CBIS © J Holden 2005

2. C also called a “business system” B IS omputer ased nformation ystem

3. INPUT TRANSFORMATION OUTPUT

4. Source: McLeod & Schell (2001), “Management Information Systems”

5. Source: Unknown

6. Transactional Processing Systems (TPS) Management Information Systems (MIS) Decision Support Systems (DSS) Executive Support Systems (ESS)

7. Transaction Processing System p.14.430 Fig. 14.6

8. MIS - What Managers Need to Know  Managers have many responsibilities  Identify and solve problems  Identify and take advantage of opportunities  Must constantly monitor surroundings  Computer systems for managerial responsibilities:  Management information systems  Executive information systems

9. Computer Systems Used by Managers Management Information Systems Executive Information Systems

10. Management Information System  MIS a system that provides periodic and predetermined reports that summarize information  Processes and creates new information  Also called management alerting systems p.14.433 Fig. 14.8

11. Types of Management Information System Reports Exception Report Summarized Report Periodic Report Comparative Report

12. Executive Information System  EIS a highly interactive MIS  Helps managers solve problems & identify opportunities  Creates new information and presents it to user  Can perform "What if?" analysis p.14.434 Fig. 14.10

13. Executive Information System  Allows you to "drill down" through information  Can better determine causes of problems  Can better determine how to take advantage of opportunities What is meant by "drill down"?

14. Decision Making In the business world, managers make decisions every day, some more consequential than others. Decision making is one of the most significant and important activities in business. IT power in the form of artificial intelligence is actually replacing human brainpower to a limited degree.

15. Three Major Categories of Computer- aided Decision-Making Software DecisionSupportSoftware Artificial Intelligence Intelligent Agent

16. 15.1 Decision Support Software  Decisions can be: StructuredUnstructured Somewhere in between

17. Decision Support Software  Decisions  Structured - make by applying a formula  Unstructured – no guaranteed way to get a precise right answer p. 15.457 - Fig. 15.1

18. Decision Making With Personal Productivity Software  Choices for financing a car that costs $10,000:  Three years at 8.25 percent interest  Four years at 9.25 percent interest  $1,000 down and three years at 8 percent interest What are the structured parts of this decision? The unstructured parts?  SimNet Concepts Support CD: “Spreadsheet Applications”

19. DSS - Analyze Options and Make a Decision p. 15.460 - Fig. 15.5

20. Business Tasks Where DSS Can Be Used *  Deciding where to spend advertising dollars  Analyzing sales trend information  Analyzing drug interactions  Developing airline schedules  Developing asset portfolios