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Information Systems

Discover the elements of information quality and the four levels of users in information systems. Understand the competitive advantages and potential challenges of implementing IT solutions. Learn how to filter information effectively and make informed decisions with the help of information systems.

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Information Systems

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  1. Information Systems Chapter 10

  2. Objectives • Explore enterprise solutions • Elements of information quality • 4 levels of users (filtering info) • 4 information system 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 • A good manager must make good IT decisions

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

  7. Business System Model Employees Managers Government Customers Stockholders Financial Institutions Colleges/ agencies Media Plan Organize Lead Control Strategic Management Tactical Management Operational Management Clerical Level Resources Functions Products & Services

  8. Filtering Information • Clerical Level (Transaction Handling) • Operational Level (Exception Reports) • Tactical Level (What-if Reports) • Strategic Level (One-time Reports, What-if Reports or Trend Analyses) The right information - the right decision maker - the right time - the right form.

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

  10. What Can Info System Do? Input Storage Output Processing • Retrieve • Record • Update • Summarize • Select • Manipulate • Hard copy • Soft copy • Control • Data • Text • Images • Other digital information • Source Data • Inquiry • Response to prompt • Instruction • Message • Change

  11. Information System Types • Manual system • No hardware • No software • Function-based information system • Independent of other systems • Integrated information system • Common databases

  12. Data Processing (DP) Systems • Activities: • Transaction handling • Record-keeping • Action documents • Scheduled reports • Primarily support: • Clerical personnel • Operational-level managers • Inflexible MIS DSS EIS

  13. Book: 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 Management Information System

  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. 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. 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. DSS Tool Box • Applications Development • 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. DSS Tool Box • Modeling • 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 e-mail for call center • Scan internet or a few databases for best vacation possibility

  27. INFORMATION SYSTEMS • 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 • Explore enterprise solutions • Elements of information quality • 4 levels of users (filtering info) • Clerical, operational, tactical, strategic • 4 information system types • DP, MIS, Expert, Intelligent Agent

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

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