Organizing Information Systems and Business Intelligence

1. Chapter 7 Organizing Information Systems and Business Intelligence

2. Transaction Processing Systems (TPS) • Support Operational level • Purpose: Process business events and transactions, Increase efficiency (Automation, Lower costs, & Increased speed and accuracy • Examples: Payroll processing, Sales and order processing, Inventory management

3. Architecture of a TPS: Inputs • Requires the use of source documents (documents that serve as a stimulus to a TPS from external source) • Utilizes different data entry methods

4. Architecture of a TPS: Processing • Online processing • Immediate results • Batch processing • Transactions collected and later processed together • Used when immediate notification not necessary

5. Architecture of a TPS: Outputs • Counts, summary reports • Inputs to other systems • Feedback to systems operator

6. Management Information Systems • Support Managerial level • Purpose: Produce reports, Support of midlevel managers’ decisions • Examples: Sales forecasting, Financial management and forecasting, Manufacturing, planning and scheduling, Inventory management and planning

7. Architecture of an MIS: Inputs & Processing Architecture of an MIS: Inputs • TPS data, Internal data & Requests for reports Architecture of an MIS: Processing • Aggregation & Summary of data

8. Architecture of an MIS: Output & Summary

9. Executive Information Systems • A.k.a. Executive support system, support Executive level • Purpose: Aid in executive decision-making, Provide information in highly aggregated form • Examples: Monitoring of internal and external events and resources, Crisis management

10. Architecture of an EIS: Inputs • Hard data • Facts and numbers • Generated by TPS & MIS • Soft data • Non-analytical information • Web-based news portals • Customizable • Delivery to different media

11. Architecture of an EIS: Processing, Outputs & summary Architecture of an EIS: Processing • Summarizing, Graphical interpreting Architecture of an EIS: Outputs • Summary reports, Trends; Simulations Summary of EIS Characteristics

12. Decision Support Systems (DSS) • Decision making support for recurring problems • Used mostly by managerial level employees (can be used at any level) • Interactive decision aid • What-if analyses -Analyze results for hypothetical changes E.g., Microsoft Excel

13. Common DSS Models

14. Summary of DSS Characteristics

15. Functional Area Information Systems • Are designed to support Cross-organizational-level IS (top, middle and operational levels) • Support specific functional area (accounting, finance, human resource) • Focus on specific set of activities (human resource – personnel forecasting, compensation analysis etc) • Examples include TPS, MIS, EIS, ES.

16. Organizational Functions and Representative Information Systems

17. Collaboration Technologies • Helps bring together the right combination of people who have the appropriate set of knowledge, skills, info and authority to solve problem quickly and easily. • Replaces ‘taskforce’ (temporary workgroup) who cannot solve problem quickly. • Bring about Virtual teams – dynamic task forces (that are Formed and disbanded as needed, have fluctuated team size & that have easy, flexible access to other team members) • Technologies: 1) groupware 2) videoconferencing, 3) desktop conferencing

18. Groupware • Class of software that enables people to work together more effectively • Distinguished along two dimensions: 1) working together at the same time (synchronous) or different time (asynchronous); 2) working together face-to-face or distributed

19. Asynchronous Groupware • 1989—Lotus Development released Notes • Lotus Notes still an industry leader • Other tools • E-mail, newsgroups, and mailing lists, work flow automation systems, intranets, group calendars, and collaborative writing tools.

20. Synchronous Groupware • Electronic meeting systems • Help groups have better meetings • Uses of EMS • Strategic planning sessions • Marketing focus groups • Brainstorming sessions • Business process management • Quality improvement

21. Video Conferencing • Costs – few thousand dollars to $500,000 • Dedicated videoconferencing systems • Located within organizational conference rooms • Highly realistic

22. Desktop Videoconferencing • Low-cost alternative to dedicated videoconferencing • Enablers • Increase in processing power of PCs • Higher Internet connection speed

23. Intelligent Systems • Systems that comprised of sensors, software and computers to emulate and enhance human capabilities. • Three types: 1) Expert systems, 2) Neural networks, 3) Intelligent agents

24. Expert Systems • Use reasoning methods • Manipulate knowledge rather than information • System asks series of questions • Inferencing/pattern matching • Matching user responses with predefined rules • If-then format • Fuzzy logic • Represent rules using approximations

25. Example of Expert systems process

26. Summary of ES Characteristics

27. Neural Network System • Approximation of human brain functioning • Training to establish common patterns (e.g. Past info) • New data compared to patterns • E.g., loan processing

28. Intelligent Agent Systems • Program working in the background • Bot (software robot) • Provides service when a specific event occurs • Intelligent Agent System Types 1) Buyer agents (shopping bots) – search for best price 2) User agents – perform a task for the user 3) Monitoring and sensing agents – Keep track of information and notifies users when it changes 4) Data-mining agents – Continuously browse data warehouses to detect changes 5) Web crawlers (web spiders) – browse the Web for specific information 5) Destructive agents – Designed to farm e-mail addresses or deposit spyware

29. Knowledge Management Systems • Helps to store and disseminate knowledge assets. • Knowledge assets are skills, routines, practices, principles, formulas, methods, heuristics and intuition, used to improve efficiency, effectiveness and profitability. They are usually documented in form of Databases, computer files, plans, manuals, diagrams & books. • Includes Collection of technology-based systems including collaboration technologies (e-mail, groupware, instant messaging) and storage and retrieval systems (databases, data mining technologies). • Commonly utilized the concept of knowledge portal (specific database connected via Internet used to share knowledge collected into repository with employees, customers, suppliers and general publics)

30. Web-Based Knowledge Portals Knowledge repository

31. Geographic Information System (GIS) • A system for creating, storing, analyzing, and managing geographically referenced information. • Examples of usage: • Finding optimal location for a new store • Identification of areas too wet to fertilize (see figure) • Locating target customers • Infrastructure design (e.g. building road, bridges)

32. Geographic Information System Uses Methods of usage: • Customer dot mapping- used to map currents customers for store locations. • Trade area analysis- assess where customers coming from by combining location info. E.g. drive time, to determine area under-serve or over-serve. • Thematic mapping- using color code to map demographics information (e.g. income, household size) to identify potential customers.