Download Week Three - Temple Fox MIS

Week 4:
Internal Information
Systems
MIS 2101: Management Information Systems
Agenda

Organizational Levels
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Horizontal Information Systems
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Type of Decisions
Type of Information
used by different levels
Vertical Information Systems

used across organizational levels
Decision-Making Levels of an
Organization
3
Operational Level

Day-to-day business processes

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4
E.g., Interactions with customers
Type of Decisions
 Structured
 Recurring
 Short or Immediate Term
Role of IT
 Automate repetitive tasks
 Improve efficiency
Examples?
Managerial Level

Functional managers / Midlevel managers
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Type of Decisions

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Semi-structured
Contained within business function
Moderately complex
Time horizon of few days to few months
Role of IT

Automate monitoring and control of operational activities
5
Executive Level

The president, CEO, vice presidents, board of
directors
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Type of Decisions

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Long-term strategic issues
Complex and non-routine problems
Unstructured decisions
Long-term ramifications
Role of IT

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6
Automate summaries of organizational data
Projections for the future
7-6
Summary
Operational
Level
Managerial
Level
Who
Foreman or supervisor
Midlevel managers and
functional managers
Executive-level
managers
What
Automate routine and
repetitive activities
Automate the monitoring
and controlling of
operational activities
Aggregate summaries
of past organizational
data and projections of
the future
Why
Improve organizational
efficiency
Improve organizational
effectiveness
Improve organizational
strategy and planning
IS
Transaction Processing
Systems (TPS)
Management Information
Systems (MIS)
Executive Information
Systems (EIS)
7
Executive
Level
Agenda

Organizational Levels
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

Horizontal Information Systems


Type of Decisions
Type of Information
used by different levels
Vertical Information Systems

used across organizational levels
Transaction Processing
System

Operational level


Purpose


Usually front end information systems
Processing of business events and transactions
Examples



Payroll processing
Sales and order processing
Inventory management
9
Architecture of a TPS: Inputs

Source Documents

10
Different data entry methods
Architecture of a TPS: Processing
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Online processing
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Batch processing
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
11
Immediate results
Transactions collected and later processed
together
Used when immediate notification not
necessary
Architecture of a TPS: Outputs

Counts, summary reports
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Inputs to other systems

Feedback to systems operator
12
Summary of TPS
Characteristics
13
Management Information
Systems

Managerial level

Purpose:


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Produce reports
Support of midlevel managers’ decisions
Examples
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Sales forecasting
Financial management and forecasting
Manufacturing, planning and scheduling
Inventory management and planning
14
Architecture of an MIS:
Outputs
15
Summary of MIS Characteristics
16
Executive Information
Systems

A.k.a. Executive support system

Executive level

Purpose


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Aid in executive decision-making
Provide information in highly aggregated form
Examples


17
Monitoring of internal and external events and
resources
Crisis management
Architecture of an EIS: Inputs
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Hard data
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Facts and numbers
Generated by TPS & MIS
Purchased data
Soft data

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Nonanalytical information
Web-based news portals

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Customizable
Delivery to different media
18
Architecture of an EIS:
Outputs
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Summary reports

Trends

Simulations
19
EIS Output: Digital Dashboards
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Digital dashboard
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
Presentation of
summary
information
Information from
multiple sources
Ability to drill
down if
necessary
20
Summary of EIS Characteristics
21
Summary: Types of Information
Systems
Weaker
EIS
MIS
Controls
and
Security
TPS
Stronger
Operations Staff
Transaction
Processing
Source: Business Driven Technology, by Haag, Baltzan, Phillips, McGraw Hill, 2006 (with modifications)
22
Summary: Decision Levels
Decision Level
Description
Example
Type of
Information
Executive
Competitive advantage
Market leader
Long term
New products
that change
the industry
External events,
rivals, sales, costs
quality, trends.
Management
Improve operations
without restructuring
Operations
Day-to-day actions
keep company running
23
New tools to
Expenses,
cut costs or impschedules, sales
rove efficiency
models, forecast
Scheduling
employees,
placing orders.
Transactions,
accounting,
HRM, inventory
Agenda

Organizational Levels



Horizontal Information Systems


Type of Decisions
Type of Information
used by different levels
Vertical Information Systems

used across organizational levels
Seven Information Systems that
Span IntraOrganizational
Boundaries
25
1. Decision Support Systems


Decision making support for recurring problems
Used mostly by managerial level employees (can
be used at any level)

Interactive decision aid

What-if analyses
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26
Analyze results for hypothetical changes
Common DSS Models
27
Information Systems Today: Managing in the Digital World
7-27
2. Intelligent Systems

Artificial intelligence


28
Simulation of human intelligence
Reasoning, learning, sensing, hearing,
walking, talking, etc.
Intelligent Systems

Three types

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29
Expert systems
Neural networks
Intelligent agents
Expert Systems
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Reproduce Performance of Human Experts
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Accounting, Medicine
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System asks series of questions
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Inferencing/pattern matching
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30
Matching user responses with predefined rules
If-then format
Neural Network System
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Approximation of human brain functioning
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Training to establish common patterns
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Past information
Computer Security, Loan Processing
New data compared to patterns
31
Example: Neural Network System
Loan
processing
system
relying on a
neural
network
32
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Intelligent Agent Systems

Program working in the background
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Bot (software robot)

Provides service when a specific
event occurs
33
Intelligent Agent Types
1. Buyer agents (shopping bots) –
2. User agents –
search for best price
perform a task for the user
3. Monitoring and sensing agents –
information
4. Data-mining agents –
analyze large amounts of data
5. Web crawlers (web spiders) –
specific information
6. Destructive agents –
spammers
34
keep track of key
browse the Web for
malicious agents designed by
3. Data Mining and Visualization
Systems

Application of
sophisticated
statistical
techniques
35
Visualization

Display of complex data relationships using
graphical methods
Visualization of a
weather system
36
Text Mining
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Extraction of
information from
textual documents
Web crawlers used
to extract
information from
Internet
Leverage “wisdom of
the crowds”
37
4. Office Automation Systems
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Developing documents, scheduling
resources, communicating
Examples
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38
Word processing
Desktop publishing
Electronic calendars
E-mail
5. Collaboration Technologies
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Increased need for flexible teams
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Virtual teams – dynamic task forces
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Forming and disbanding as needed
Fluctuating team size
Easy, flexible access to other team members
Need for new collaboration technologies
39
Groupware

Enables more
effective team
work

Distinguished
along two
dimensions
40
Benefits of Groupware
41
Video Conferencing
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Costs – few thousand dollars to $500,000
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Dedicated videoconferencing systems
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
Located within organizational conference rooms
Highly realistic
42
6. Knowledge Management
Systems
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Generating value from knowledge assets
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Collection of technology-based systems
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Knowledge assets
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Skills, routines, practices, principles, formulas, methods,
heuristics and intuition
Used to improve efficiency, effectiveness and profitability
Documents storing both facts and procedures
Examples

Databases, manuals, diagrams, books, etc.
43
Benefits and Challenges of
Knowledge Based Systems
44
7. Functional Area Information
Systems
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Cross-organizational-level IS
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Support specific functional area

Focus on specific set of activities
45
Business Processes Supported
by Functional Area Information
Systems
46
Cases
47
Amazon.com
• 35 million customers worldwide
• Innovations leading to satisfaction
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Fraud protection
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Personalized greeting
Memory for recent purchases
Targeted “gold box” offers and
bargains
Shipping vs. billing address
comparison
Method of shipment checks
Credit card sources checks
“One-click” shopping
48
Too Much Technology?
RFID and Privacy
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RFID tags
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Latest in technological tracking devices
Information imprinted on a tag
Tag generates signature signal
Special RFID reader interprets signal
Use of RFID tags
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Pharmaceutical industry
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Tracking of medication from factory to pharmacy
Retail businesses
49