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Learn the importance of information systems, levels of users, and decision types. Discover how to leverage systems for cost efficiency and competitive advantage. Explore different system types and how they impact organizations.
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Objectives • Importance of information systems • 4 levels of users (filtering info) • Information system types • Different decision types
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 (Cost Vs Benefit Ratio)
The Competitive Advantage - GOOD • Access to a world market • Improve quality • Aid employee communication • Reduce costs • Increase productivity • Improve company morale Serendipitous Surfing: Politics
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
Information Quality Quality (GIGO) Accessibility Completeness Timeliness Relevance (Information overload)
Employees Managers Government Customers Stockholders Financial Institutions Colleges/ agencies Media Business System Model Plan Organize Lead Control Strategic Management Tactical Management Operational Management Clerical Level Resources Functions Products & Services
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.
Making Decisions Programmed Decisions Well-Defined Problem Information-Based Decisions Unstructured Problem
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 What Can Info System Do?
Information System Types • Manual system • No hardware • No software
Transaction Processing Systems (TPS) • Activities: • Transaction handling • Record-keeping • Action documents • Scheduled reports • Primarily support: • Clerical personnel • Operational-level managers • Inflexible MIS DSS EIS
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
Decisions Support Systems • Interactive • Integrated set of hardware and software tools • Produce information to support decision-making process
DSS vs. MIS • DSS • Semi-structured and unstructured problems • can be adapted to any decision environment MIS • structured problems • designed to support a set of applications
DSS Characteristics • Helps decision maker • Semistructured & unstructured problems • Most effective for tactical & strategic management levels • Interactive and user-friendly; little IT help needed more. . .
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
DSS Tool Box • Applications Development • Quick application building • Support a one-time decision • Data Management • Data Warehousing (combine and offer preset relationships) • Data Mining (search warehouse for new relationships) more. . .
DSS Tool Box • Modeling • Decisions involve many factors • Uncertainty and risk present • Statistical Analysis • Risk Analysis • Trend Analysis • Planning • What-If • Goal Seeking more. . .
DSS Tool Box • Inquiry • Graphics • Consolidations • Application-Specific
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
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
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
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
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
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 system, Intelligent Agent (AI) • Importance of information systems