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Information Systems
By
Anilkumar R
Objectives
 System
 Data vs. Information
 Strategic role of information in management
 Organization as an information system
 TPS
 MIS
 DSS
 ESS
 OAS
 Networking concepts
 Telecommunications networks
System
What Is a System?

   System: A set of components that work together to achieve a
    common goal

   Subsystem: One part of a system where the products of more
    than one system are combined to reach an ultimate goal

   Closed system: Stand-alone system that has no contact with
    other systems

   Open system: System that interfaces with other systems
Information
Processed date is called information
Information System
 An information      system (IS)-    is    any     combination
  of information technology and people's activities that support
  operations, management and decision making.
 In a very broad sense, the term information system is
  frequently used to refer to the interaction between people,
  processes, data and technology. In this sense, the term is
  used to refer not only to the information and communication
  technology (ICT) that an organization uses, but also to the
  way in which people interact with this technology in support
  of business processes.
Components of Information System:
Example – Health Care Information System:
Information
Why Do People Need Information?

  Individuals - Entertainment and enlightenment

  Businesses - Decision making, problem solving
  and control
Data vs. Information
Data                      Information
 raw facts                data with context
 no context               processed data
 just numbers and text    value-added to data
                             summarized
                             organized
                             analyzed
Data vs. Information
 Data: 51007
 Information:
   5/10/07 The date of your final exam.
   $51,007 The average starting salary of an accounting major.
   51007 Zip code of Bronson Iowa.
Data Manipulation
  Example: customer survey
   Reading through data collected from a customer survey
    with questions in various categories would be time-
    consuming and not very helpful.
   When manipulated, the surveys may provide useful
    information.
Data vs. Information
Data           Information
 6.34                               SIRIUS SATELLITE RADIO INC.
 6.45
 6.39                       $7.20
 6.62                       $7.00
 6.57                       $6.80
 6.64         Stock Price
                             $6.60
 6.71
                             $6.40
 6.82
                             $6.20
 7.12
 7.06                       $6.00

                             $5.80
                                     1   2   3   4   5   6       7   8   9   10
                                                  Last 10 Days
Data  Information  Knowledge
                    Data

           Summarizing the data
             Averaging the data
          Selecting part of the data
             Graphing the data
              Adding context
               Adding value

                Information
Data  Information  Knowledge
                   Information

         How is the info tied to outcomes?
        Are there any patterns in the info?
       What info is relevant to the problem?
       How does this info effect the system?
       What is the best way to use the info?
      How can we add more value to the info?

                   Knowledge
Information Systems
Generic Goal:
 Transform Data into Information

   At the Core of an Information System is a Database (raw data).
Information Systems (TSP and PCS)


     Data doesn’t just appear,
      Capturing Data is really the first step

     These systems help capture data but they also have
      other purposes (goals):
        1. Transaction Processing Systems
           (TPS)
        2. Process Control Systems (PCS)
Capturing Data
 What are some examples of real TPS’s?

 What kind of data is being capture?

 How is this data transformed into Information?
Data Processing
 Recall that a basic system is composed of 5 components
   Input, Output, Processing, Feedback, Control
 Typically processing helps transform data into information.




         Input                                      Output
                               Processing
       Raw Data                                    Information
Processing
 Summarizing
 Computing Averages
 Graphing
 Creating Charts
 Visualizing Data
Processing: Great Example
 Navigation System
  Specialized Geographic Information System
 Input: Maps, Addresses, Points of Interest,
  “Yellow Pages”
 Processing:
  Computing Shortest Paths;
  Finding the Nearest Chinese Restaurant
 Output:
  Directions (each turn + a map with arrows)
  List of nearby Chinese Restaurants (sorted by dist.)
Analysis – Navigation System


   Recall that Information Systems have five more specific
    components:
   People, Data, Communication Network, Hardware, Software.
   In a Navigation System…
     what is the Communication Network?
     what is the Hardware?
     who are the People?
Data, Information,
and Systems




Figure 1.3 Several subsystems make up this corporate accounting
                            system.
Types of Information System:
Executives
                                  24

                   ESS
                                 Senior
                   DSS          Managers

                   MIS



                  KWS



        Transaction Processing System      Workers




Fig 2.1: Types of Information Systems
Transaction Processing
  System
 A TPS support the monitoring, collection, storage, processing and
  dissemination of the organization’s basic business transitions.

 It also provides the input data for many applications involving
  support systems such as DSS.

 Some times several TPSs exit in one company

 The TPS are considered critical to the success of any organization
  since they support core operations such as purchasing of materials,
  billing customers, preparing a payroll and shipping goods to
  customers
Routine Business
Transactions in a
Manufacturing Company
Payroll                       Sales
Employee time cards           Sales records
Employee pay and deductions   Invoices and billings
Payroll checks                Accounts receivable
                              Sales returns
                              Shipping

Purchasing                    Production
Purchase orders               Production reports Quality-
Deliveries                    control reports
Payments (accounts payable)

Finance and accounting        Inventory management
Financial statements          Material usage
Tax records                   Inventory levels
Expense accounts
Management Information
  System
It is also popularly known as the Information system, the Information and Decision
system, the computer based Information system

Definitions of MIS:

The MIS is defined as a system which provides information support for decision-
making in the organization
The MIS is defined as an integrated system of man and machine for providing
the information to support the operations, the management and the decision-
making function in the organization.
The MIS is defined as Computer based Information system
MIS
 MIS is an information system, which processes data and
  converts it into information. A management information
  system uses TPS for its data inputs. The information
  generated by the information system may be used for control
  of operations, strategic and long-range planning. Short-range
  planning, management control, and other managerial
  problem solving. It encompasses processing in support of a
  wide range of organizational functions & management
  processes. MIS is capable of providing analysis, planning &
  decision making support. The functional areas of a business
  may be marketing, production, human resource, finance and
  accounting.
Characteristics of MIS
 They are flexible, allowing for many different ways of
  analyzing data and evaluating information;
 They are capable of supporting a range of skills and
  knowledge;
 They help managers get things done through interpersonal
  communication with other members of the organization;
 Because managers are busy people who switch rapidly
  between different tasks, they should not
 require extensive periods of concentration;
 They should make it easy to interrupt the work and return to
  it at a later time;
 They should protect a manager, as far as possible, from
  information overload.
Case study:
Case study: Buying a new car

If you want to purchase a new car from a Ford dealer, chances are that the make and model you
want, in the right colour with the right accessories, is not in stock. It’s just too expensive to have
cars with every possible combination of options sitting in the parking lot waiting for a customer. In
the past, it’s been almost impossible for dealers to track down exactly the model that a customer
wants.

With the new information system, the dealer can type the details of the required car into a terminal
connected to the main Ford plant at Dagenham. The information will then come back to tell the
dealer whether there are any cars available of that specification, and exactly where they are. They
may be on the Ford parking lot, or there may be only two available, one at a dealer's in Perth and
the other in Bournemouth. There may be none available – in which case Ford will make one for
you, though this may take some time.

Plant production managers are also connected to the system, and so they know exactly what cars
have
been ordered and can adjust production to reflect demand every day.
 Discussion: This is an example of a management information system. How does it help
– the dealer?
– the customer?
– the manufacturer?
Discussion:
Discussion: A car company gathers information about its
customer base through many sources, including market
research surveys. One company has discovered that it has
relatively fewcustomers in the 18-30 age range. How can this
information be used by the company to improve
its sales?
Decision Support System
 Gorry and Scott-Morton coined the phrase ‘DSS’
 in 1971: “A DSS is an interactive computer based system
  that helps decision makers utilize data and models to solve
  unstructured problems.”

 A decision support system (DSS) is a computer-based
  information system that supports business or organizational
  decision-makingactivities. DSSs serve the management,
  operations, and planning levels of an organization and help
  to make decisions, which may be rapidly changing and not
  easily specified in advance. Decision support systems can
  be either fully computerized, human or a combination of both.

 A decision support system may present information
  graphically and may include an expert system or artificial
  intelligence (AI). It may be aimed at business executives or
  some other group of knowledge workers.
Typical information gathered by
DSS are:
 Comparative sales figures between one week and the next
 Projected revenue figures based on new product sales
  assumptions
 The consequences of different decision alternatives, given
  past experience in a context that is described
Benefits of DSS
 Improves personal efficiency
 Speed up the process of decision making
 Increases organizational control
 Encourages exploration and discovery on the part of the
  decision maker
 Speeds up problem solving in an organization
 Facilitates interpersonal communication
 Promotes learning or training
 Generates new evidence in support of a decision
 Creates a competitive advantage over competition
 Reveals new approaches to thinking about the problem
  space
 Helps automate managerial processes
 Create Innovative ideas to speed up the performance
 In 1987, Texas Instruments completed development of the
  Gate Assignment Display System (GADS) for United Airlines.
  This decision support system is credited with significantly
  reducing travel delays by aiding the management of ground
  operations at various airports, beginning with O'Hare
  International Airport in Chicago and Stapleton Airport
  in Denver Colorado
DSS EXAMPLES:
 MSN Autos - http://autos.msn.com/Default.aspx
 Big Charts -- http://bigcharts.marketwatch.com/
 Databeacon Demos -- http://www.storydata.com
 Documentum eRoom - http://www.documentum.com
 elaws Family and Medical Leave Act Advisor -
  http://www.dol.gov/elaws/fmla.htm
 Fidelity Calculators -
  http://www.401k.com/401k/tools/tools.htm
 Inspire - http://interneg.carleton.ca/inspire/
 Pinnacor - http://finance.pinnacor.com/
 Principal Financial -
  http://www.principal.com/calculators/index.htm
 WATERSHEDSS - http://www.water.ncsu.edu/watershedss/
 Categorization and Evaluation Exercise
Group Decision Support
Systems
A GDSS is an interactive computer based system that
facilitates the solution of semi structured and unstructured
problems when made by a group of decision makers. The
objective of a GDSS is to support the process of arriving at a
decision.

Case study: See Page 555 [Virtual meeting at the world
Economic Forum] by Wiley Edition authored by Turban,
Mclean and Wetherbe
GDSS Example:
EX 1:
Internal Revenue Service, which used a one-room GDSS to
implement its quality-improvement programs based on the
participation of a number of its quality teams.
The GDSS was helpful in identifying problems, generating and
evaluating ideas and developing and implementing solutions.

EX 2:
European automobile industry which used a one-room GDSS
to examine the competitive automotive business environment
and make ten-year forecasts, needed for strategic planning.
Executive Information System / Executive
Support System
EIS
An executive information system (EIS) is a type
of management information system that facilitates and
supports senior executive information and decision-making
needs. It provides easy access to internal and external
information relevant to organizational goals. It is commonly
considered a specialized form of decision support system
(DSS)
ESS
An ESS is a comprehensive support system that goes beyond
EIS to include analysis support, communications, office
automation and intelligence support.
Executives’ information needs

 Prompt, easy-to-use information (quick response time,
  simple user interface)
 Presentation should fit his style
 High degree of summarisation
 Details on demand
 Critical success factors
 Exceptions
 External and internal sources
Features of an EIS

 Access to internal and external data
 What-if analysis
 Ad hoc queries
 Drill down
 Project tracking
 Colour business graphics
 Network connections, e-mail access
 High security
Advantages of EIS
 Easy for upper-level executives to use, extensive computer
  experience is not required in operations
 Provides timely delivery of company summary information
 Information that is provided is better understood
 EIS provides timely delivery of information. Management can
  make
 decisions made promptly.
 Improves tracking information
 Offers efficiency to decision makers
Disadvantages of EIS
 System dependent
 Limited functionality, by design
 Information overload for some managers
 Benefits hard to quantify
 High implementation costs
 System may become slow, large, and hard to manage
 Need good internal processes for data management
 May lead to less reliable and less secure data
Types of EIS software
 Prewritten EIS, e.g.
   Command Center – Pilot Software, Inc.
   Commander - Comshare
   Executive Edge – Execucom
 Custom EIS, e.g.
   MIDS at Lockheed-Georgia
TO SUPPORT EVERYDAY
BUSINESS OPERATIONS:

  TPS - TRANSACTION PROCESSING SYSTEM
  OAS - OFFICE AUTOMATION SYSTEM
TO SUPPORT MANAGERIAL
DECISION MAKING
   MIS - (FUNCTIONAL) MANAGEMENT INFORMATION SYSTEM
   DSS - DECISION SUPPORT SYSTEM
   GDSS - GROUP DECISION SUPPORT SYSTEM
   EIS - EXECUTIVE INFORMATION SYSTEM
   ESS - EXECUTIVE SUPPORT SYSTEM
   ES - EXPERT SYSTEM
47




Fig 2-2: The six major types of information systems.
INTEGRATED BUSINESS
SOFTWARE

Integrates all business functions and processes:
Accounting and Controlling
Finance and Investment
Inventory Control
Materiel Management
Human Resource Management
Production
Sales and Distribution
Project Management
Plant Maintenance
etc.
Major integrated enterprise
solution providers world
wide:

 SAP (R/3 system)
 PeopleSoft
 Oracle
 JDEdwards (OneWorld)
 BAAN
 etc.
 Megatrend (Infosys) Hungarian company
EXPERT SYSTEMS

AI – Artificial Intelligence
         Use of computers to perform tasks that normally
require high-level human intelligence
          - Humans acquire & input data to their brains through
their five senses (vision, hearing, smell, taste & touch)
          - Computers must have a way of mimicking one or
more of these sensing capabilities (computer vision or
“hearing”)
AI areas

 Robotics (primary areas of research & applications);
 Computer vision (image processing – recognize & interpret
  high level patterns & make them meaningful – e.g. defective
  product, smart weapons);
 Speech recognition (recognizing spoken words – e.g.
  dictation);
 Natural language processing (derive the meaning of a
  sentence);
 Neural networks (like brains – learning);
 Expert systems (attempt to reach the same conclusions
  about a problem as the best human expert would)
   wide variety of potential applications in business.
Expert System (ES)

 Other examples of Experts Systems
 Diagnosis of bacteriological diseases in patients
 Diagnosis of malfunctions in diesel electronic
  locomotives
 Configuration of a computer system based on a
  customer’s anticipated application workload
 Quality control of products
Advantages of ES
 Can replace expensive or non-available experts;
 Can merge knowledge of many experts
        (preserving, replicating & distributing expert
  knowledge);
 Decision making is consistent;
 Decision making is faster;
 ES can work under difficult or dangerous situation (wars)
 Reasoning is explained and documented
      (insight into the decision making process – explain the
  rationale by           which they reached the decision);
 ES can be integrated to other type of information
  systems like DSS or EIS.
Disadvantages of ES

  Narrow focus (very narrow domains of applications)
  Expensive to develop and maintain
  Difficult to test (impossible to present all the possible cases)
  Expert’s knowledge is difficult to obtain and put to the
   computer’s knowledge base
  Communication capabilities are poorer (no vague questions!!!)
Thank You All

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Module 1

  • 2. Objectives  System  Data vs. Information  Strategic role of information in management  Organization as an information system  TPS  MIS  DSS  ESS  OAS  Networking concepts  Telecommunications networks
  • 3. System What Is a System?  System: A set of components that work together to achieve a common goal  Subsystem: One part of a system where the products of more than one system are combined to reach an ultimate goal  Closed system: Stand-alone system that has no contact with other systems  Open system: System that interfaces with other systems
  • 4. Information Processed date is called information
  • 5. Information System  An information system (IS)- is any combination of information technology and people's activities that support operations, management and decision making.  In a very broad sense, the term information system is frequently used to refer to the interaction between people, processes, data and technology. In this sense, the term is used to refer not only to the information and communication technology (ICT) that an organization uses, but also to the way in which people interact with this technology in support of business processes.
  • 7. Example – Health Care Information System:
  • 8. Information Why Do People Need Information? Individuals - Entertainment and enlightenment Businesses - Decision making, problem solving and control
  • 9. Data vs. Information Data Information  raw facts  data with context  no context  processed data  just numbers and text  value-added to data  summarized  organized  analyzed
  • 10. Data vs. Information  Data: 51007  Information:  5/10/07 The date of your final exam.  $51,007 The average starting salary of an accounting major.  51007 Zip code of Bronson Iowa.
  • 11. Data Manipulation  Example: customer survey  Reading through data collected from a customer survey with questions in various categories would be time- consuming and not very helpful.  When manipulated, the surveys may provide useful information.
  • 12. Data vs. Information Data Information  6.34 SIRIUS SATELLITE RADIO INC.  6.45  6.39 $7.20  6.62 $7.00  6.57 $6.80  6.64 Stock Price $6.60  6.71 $6.40  6.82 $6.20  7.12  7.06 $6.00 $5.80 1 2 3 4 5 6 7 8 9 10 Last 10 Days
  • 13. Data  Information  Knowledge Data Summarizing the data Averaging the data Selecting part of the data Graphing the data Adding context Adding value Information
  • 14. Data  Information  Knowledge Information How is the info tied to outcomes? Are there any patterns in the info? What info is relevant to the problem? How does this info effect the system? What is the best way to use the info? How can we add more value to the info? Knowledge
  • 15. Information Systems Generic Goal:  Transform Data into Information  At the Core of an Information System is a Database (raw data).
  • 16. Information Systems (TSP and PCS)  Data doesn’t just appear, Capturing Data is really the first step  These systems help capture data but they also have other purposes (goals): 1. Transaction Processing Systems (TPS) 2. Process Control Systems (PCS)
  • 17. Capturing Data  What are some examples of real TPS’s?  What kind of data is being capture?  How is this data transformed into Information?
  • 18. Data Processing  Recall that a basic system is composed of 5 components  Input, Output, Processing, Feedback, Control  Typically processing helps transform data into information. Input Output Processing Raw Data Information
  • 19. Processing  Summarizing  Computing Averages  Graphing  Creating Charts  Visualizing Data
  • 20. Processing: Great Example  Navigation System  Specialized Geographic Information System  Input: Maps, Addresses, Points of Interest, “Yellow Pages”  Processing:  Computing Shortest Paths;  Finding the Nearest Chinese Restaurant  Output:  Directions (each turn + a map with arrows)  List of nearby Chinese Restaurants (sorted by dist.)
  • 21. Analysis – Navigation System  Recall that Information Systems have five more specific components:  People, Data, Communication Network, Hardware, Software.  In a Navigation System…  what is the Communication Network?  what is the Hardware?  who are the People?
  • 22. Data, Information, and Systems Figure 1.3 Several subsystems make up this corporate accounting system.
  • 24. Executives 24 ESS Senior DSS Managers MIS KWS Transaction Processing System Workers Fig 2.1: Types of Information Systems
  • 25. Transaction Processing System  A TPS support the monitoring, collection, storage, processing and dissemination of the organization’s basic business transitions.  It also provides the input data for many applications involving support systems such as DSS.  Some times several TPSs exit in one company  The TPS are considered critical to the success of any organization since they support core operations such as purchasing of materials, billing customers, preparing a payroll and shipping goods to customers
  • 26. Routine Business Transactions in a Manufacturing Company Payroll Sales Employee time cards Sales records Employee pay and deductions Invoices and billings Payroll checks Accounts receivable Sales returns Shipping Purchasing Production Purchase orders Production reports Quality- Deliveries control reports Payments (accounts payable) Finance and accounting Inventory management Financial statements Material usage Tax records Inventory levels Expense accounts
  • 27. Management Information System It is also popularly known as the Information system, the Information and Decision system, the computer based Information system Definitions of MIS: The MIS is defined as a system which provides information support for decision- making in the organization The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision- making function in the organization. The MIS is defined as Computer based Information system
  • 28. MIS  MIS is an information system, which processes data and converts it into information. A management information system uses TPS for its data inputs. The information generated by the information system may be used for control of operations, strategic and long-range planning. Short-range planning, management control, and other managerial problem solving. It encompasses processing in support of a wide range of organizational functions & management processes. MIS is capable of providing analysis, planning & decision making support. The functional areas of a business may be marketing, production, human resource, finance and accounting.
  • 29. Characteristics of MIS  They are flexible, allowing for many different ways of analyzing data and evaluating information;  They are capable of supporting a range of skills and knowledge;  They help managers get things done through interpersonal communication with other members of the organization;  Because managers are busy people who switch rapidly between different tasks, they should not  require extensive periods of concentration;  They should make it easy to interrupt the work and return to it at a later time;  They should protect a manager, as far as possible, from information overload.
  • 30. Case study: Case study: Buying a new car If you want to purchase a new car from a Ford dealer, chances are that the make and model you want, in the right colour with the right accessories, is not in stock. It’s just too expensive to have cars with every possible combination of options sitting in the parking lot waiting for a customer. In the past, it’s been almost impossible for dealers to track down exactly the model that a customer wants. With the new information system, the dealer can type the details of the required car into a terminal connected to the main Ford plant at Dagenham. The information will then come back to tell the dealer whether there are any cars available of that specification, and exactly where they are. They may be on the Ford parking lot, or there may be only two available, one at a dealer's in Perth and the other in Bournemouth. There may be none available – in which case Ford will make one for you, though this may take some time. Plant production managers are also connected to the system, and so they know exactly what cars have been ordered and can adjust production to reflect demand every day.  Discussion: This is an example of a management information system. How does it help – the dealer? – the customer? – the manufacturer?
  • 31. Discussion: Discussion: A car company gathers information about its customer base through many sources, including market research surveys. One company has discovered that it has relatively fewcustomers in the 18-30 age range. How can this information be used by the company to improve its sales?
  • 32. Decision Support System  Gorry and Scott-Morton coined the phrase ‘DSS’  in 1971: “A DSS is an interactive computer based system that helps decision makers utilize data and models to solve unstructured problems.”  A decision support system (DSS) is a computer-based information system that supports business or organizational decision-makingactivities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. Decision support systems can be either fully computerized, human or a combination of both.  A decision support system may present information graphically and may include an expert system or artificial intelligence (AI). It may be aimed at business executives or some other group of knowledge workers.
  • 33. Typical information gathered by DSS are:  Comparative sales figures between one week and the next  Projected revenue figures based on new product sales assumptions  The consequences of different decision alternatives, given past experience in a context that is described
  • 34. Benefits of DSS  Improves personal efficiency  Speed up the process of decision making  Increases organizational control  Encourages exploration and discovery on the part of the decision maker  Speeds up problem solving in an organization  Facilitates interpersonal communication  Promotes learning or training  Generates new evidence in support of a decision  Creates a competitive advantage over competition  Reveals new approaches to thinking about the problem space  Helps automate managerial processes  Create Innovative ideas to speed up the performance
  • 35.  In 1987, Texas Instruments completed development of the Gate Assignment Display System (GADS) for United Airlines. This decision support system is credited with significantly reducing travel delays by aiding the management of ground operations at various airports, beginning with O'Hare International Airport in Chicago and Stapleton Airport in Denver Colorado
  • 36. DSS EXAMPLES:  MSN Autos - http://autos.msn.com/Default.aspx  Big Charts -- http://bigcharts.marketwatch.com/  Databeacon Demos -- http://www.storydata.com  Documentum eRoom - http://www.documentum.com  elaws Family and Medical Leave Act Advisor - http://www.dol.gov/elaws/fmla.htm  Fidelity Calculators - http://www.401k.com/401k/tools/tools.htm  Inspire - http://interneg.carleton.ca/inspire/  Pinnacor - http://finance.pinnacor.com/  Principal Financial - http://www.principal.com/calculators/index.htm  WATERSHEDSS - http://www.water.ncsu.edu/watershedss/  Categorization and Evaluation Exercise
  • 37. Group Decision Support Systems A GDSS is an interactive computer based system that facilitates the solution of semi structured and unstructured problems when made by a group of decision makers. The objective of a GDSS is to support the process of arriving at a decision. Case study: See Page 555 [Virtual meeting at the world Economic Forum] by Wiley Edition authored by Turban, Mclean and Wetherbe
  • 38. GDSS Example: EX 1: Internal Revenue Service, which used a one-room GDSS to implement its quality-improvement programs based on the participation of a number of its quality teams. The GDSS was helpful in identifying problems, generating and evaluating ideas and developing and implementing solutions. EX 2: European automobile industry which used a one-room GDSS to examine the competitive automotive business environment and make ten-year forecasts, needed for strategic planning.
  • 39. Executive Information System / Executive Support System EIS An executive information system (EIS) is a type of management information system that facilitates and supports senior executive information and decision-making needs. It provides easy access to internal and external information relevant to organizational goals. It is commonly considered a specialized form of decision support system (DSS) ESS An ESS is a comprehensive support system that goes beyond EIS to include analysis support, communications, office automation and intelligence support.
  • 40. Executives’ information needs  Prompt, easy-to-use information (quick response time, simple user interface)  Presentation should fit his style  High degree of summarisation  Details on demand  Critical success factors  Exceptions  External and internal sources
  • 41. Features of an EIS  Access to internal and external data  What-if analysis  Ad hoc queries  Drill down  Project tracking  Colour business graphics  Network connections, e-mail access  High security
  • 42. Advantages of EIS  Easy for upper-level executives to use, extensive computer experience is not required in operations  Provides timely delivery of company summary information  Information that is provided is better understood  EIS provides timely delivery of information. Management can make  decisions made promptly.  Improves tracking information  Offers efficiency to decision makers
  • 43. Disadvantages of EIS  System dependent  Limited functionality, by design  Information overload for some managers  Benefits hard to quantify  High implementation costs  System may become slow, large, and hard to manage  Need good internal processes for data management  May lead to less reliable and less secure data
  • 44. Types of EIS software  Prewritten EIS, e.g.  Command Center – Pilot Software, Inc.  Commander - Comshare  Executive Edge – Execucom  Custom EIS, e.g.  MIDS at Lockheed-Georgia
  • 45. TO SUPPORT EVERYDAY BUSINESS OPERATIONS:  TPS - TRANSACTION PROCESSING SYSTEM  OAS - OFFICE AUTOMATION SYSTEM
  • 46. TO SUPPORT MANAGERIAL DECISION MAKING  MIS - (FUNCTIONAL) MANAGEMENT INFORMATION SYSTEM  DSS - DECISION SUPPORT SYSTEM  GDSS - GROUP DECISION SUPPORT SYSTEM  EIS - EXECUTIVE INFORMATION SYSTEM  ESS - EXECUTIVE SUPPORT SYSTEM  ES - EXPERT SYSTEM
  • 47. 47 Fig 2-2: The six major types of information systems.
  • 48. INTEGRATED BUSINESS SOFTWARE Integrates all business functions and processes: Accounting and Controlling Finance and Investment Inventory Control Materiel Management Human Resource Management Production Sales and Distribution Project Management Plant Maintenance etc.
  • 49. Major integrated enterprise solution providers world wide:  SAP (R/3 system)  PeopleSoft  Oracle  JDEdwards (OneWorld)  BAAN  etc.  Megatrend (Infosys) Hungarian company
  • 50. EXPERT SYSTEMS AI – Artificial Intelligence Use of computers to perform tasks that normally require high-level human intelligence - Humans acquire & input data to their brains through their five senses (vision, hearing, smell, taste & touch) - Computers must have a way of mimicking one or more of these sensing capabilities (computer vision or “hearing”)
  • 51. AI areas  Robotics (primary areas of research & applications);  Computer vision (image processing – recognize & interpret high level patterns & make them meaningful – e.g. defective product, smart weapons);  Speech recognition (recognizing spoken words – e.g. dictation);  Natural language processing (derive the meaning of a sentence);  Neural networks (like brains – learning);  Expert systems (attempt to reach the same conclusions about a problem as the best human expert would)  wide variety of potential applications in business.
  • 52. Expert System (ES)  Other examples of Experts Systems  Diagnosis of bacteriological diseases in patients  Diagnosis of malfunctions in diesel electronic locomotives  Configuration of a computer system based on a customer’s anticipated application workload  Quality control of products
  • 53. Advantages of ES  Can replace expensive or non-available experts;  Can merge knowledge of many experts  (preserving, replicating & distributing expert knowledge);  Decision making is consistent;  Decision making is faster;  ES can work under difficult or dangerous situation (wars)  Reasoning is explained and documented  (insight into the decision making process – explain the rationale by which they reached the decision);  ES can be integrated to other type of information systems like DSS or EIS.
  • 54. Disadvantages of ES  Narrow focus (very narrow domains of applications)  Expensive to develop and maintain  Difficult to test (impossible to present all the possible cases)  Expert’s knowledge is difficult to obtain and put to the computer’s knowledge base  Communication capabilities are poorer (no vague questions!!!)

Notes de l'éditeur

  1. http://searchcio.techtarget.com/definition/decision-support-system
  2. EIS emphasizes graphical displays and easy-to-use user interfaces. They offer strong reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level executives analyze, compare, and highlight trends in important variables so that they can monitor performance and identify opportunities and problems. EIS and data warehousing technologies are converging in the marketplace. In recent years, the term EIS has lost popularity in favor of business intelligence (with the sub areas of reporting, analytics, and digital dashboards).