Day 7 Business Information Systems-- the portfolio MBA 8125 Information technology Management Professor Duane Truex III Today s Learning Objectives 1. Define and describe the repository components of business information systems (BIS): Production Databases, Data Warehouse, Knowledge Repository 2. Define and describe the BIS applications: TPS, MIS, OLAP (including DSS/EIS/GDSS), Data Mining, Search Engines, Content Editing and Production Tools 3. Define and describe the relationships between the repositories and applications 1
The Business Systems Architecture Transaction Processing Systems (TPS) Production Database Management Information Systems (MIS) DSS, GDSS & EIS On-line Analytical Processing (OLAP) (Deductive) Data Warehouse Knowledge Repository Data Mining (Inductive reasoning) Search Engines & tools Organizational Memory Information System (OMIS) External Data Sources Content Editing & Production tools Collaboration and Coordination tools Definitions(1): Repositories Production Database A collection of pre-specified and highly organized(mostly) textual data in a relational database. Used by TPS and MIS. Has to be very fast and robust Data Warehouse Like production database, a collection of pre-specified and highly organized(mostly) textual data in a relational database. Can be slower Is not mission critical. 2
Definitions(2): Repositories, Continued Knowledge Repository Storage place for unstructured data and information Knowledge is in the linkages between the data and information (e.g. hyperlinks, maps) Knowledge is retrieved through searches Search engines add intelligence to a knowledge repository Two common implementations: Lotus Notes (Knowledge Roach Motel) Intranets Definitions(3): Repositories, Continued External Data Sources Databases and knowledge repositories. Proprietary (paid) Public (free) 3
Definitions(4): Applications TPS (Transaction Processing System) An organized collection of people procedures, databases, and devices to record completed business transactions Any business-related exchange MIS (Management Information Systems) An information system that provides aggregated, summarized information to decision makers. Inputs typically is transaction data acquired from TPS Outputs are standardized, pre-specified reports OLAP (On-line Analytical Processing) Targeted query, the user knows exactly what she is looking for Used in Decision Support Systems (DSS), Executive Information Systems (EIS) and Group DSS (GDSS) Collaboration and Coordination tools email, calendaring,electronic bulletin boards, groupware (Lotus Notes, Groupwise ) Definitions(5): Applications, Continued Organizational Memory Information System The collection of repositories and systems that together preserve an organization s history, and make it available for current and future use Data Mining You don t know what you are looking for The mining software looks for patterns Uses automated statistical pattern matching algorithms Search Engines Tools that let you search through knowledge repositories Examples: Alta Vista, Excite New developments: natural language processing (Ask Jeeves); Dynamically created concept maps 4
Definitions(6): Applications, Continued Content Editing & Production tools HTML Editors and site management tools: Dreamweaver, Frontpage, Netscape Composer Word Processors, (e.g. Word, Wordperfect) Multimedia presentation tools: Static: Powerpoint Dynamic/interactive: Dreamweaver Business Information Systems in Perspective Transaction processing systems provide the raw material for the other types of information system within most business organizations. More More Decision Support Systems Management Information Systems Transaction Processing Systems Complexity Dependence on external data Routine More 5
Transaction Processing System Transaction Any business-related exchange Transaction processing systems (TPS) An organized collection of people procedures, databases, and devices to record completed business transactions Hours Worked Pay Rate Payroll Transaction Processing Payroll Checks Transaction Processing Systems Transactions Basic business activities such as customer orders, time cards, and payroll checks TPS process the detailed data necessary to update records about fundamental business operations of an organization. Data should be captured at its source. It should be recorded accurately, in a timely fashion, with minimal manual effort, and in a form that can be directly entered into the computer. 6
Characteristics of Transaction Processing Systems Provide fast, efficient processing to handle large amounts of input and output Perform rigorous data editing to ensure that records are accurate and up to date Are audited to ensure that all input data, processing, procedures, and output are complete, accurate, and valid Example of Source Data Automation Customer Receipt Scanner UPC Time, date, quantity Point-of-Sale TPS Inventory MIS Exception Report Point-of-Sale Transaction Processing System 7
Management Information System (MIS) An information system that provides aggregated, summarized information to decision makers. Inputs typically is transaction data acquired from TPS Outputs are standardized, prespecified reports Management Information System (MIS) Marketing MIS Manufacturing MIS Common Database Financial MIS TPS Other MISs 8
Outputs of a Management Information System Scheduled reports Produced periodically or on a schedule (daily, weekly, monthly) Key-indicator report Type of scheduled report that summarizes the previous day s critical activities Typically available at the beginning of each workday continued... Demand reports Outputs of a Management Information System Developed to give certain information at a manager s request Exception reports Automatically produced when a situation is unusual or requires management action Drill-down reports Provides increasingly detailed data about a situation 9
Decision Support System (DSS) An information system that support different decision making styles through on-the-fly queries and pre-specified models, using data from internal and external sources, presented according to user preferences Model Base Database User Interface Models Bases Conceptual Model of a DSS Internal Databases Model Management System Database Management System Dialogue Manager Interface to External sources External Databases and models User 10
Decision Support Systems Primary characteristic: performs different types of analyses What-if analysis Makes hypothetical changes to problem and observes impact on the results Simulation Duplicates features of a real system Goal-seeking analysis Determines problem data required for a given result Decision Support Systems An information system that supports different decision making styles through on-the-fly queries and pre-specified models, using data from internal and external sources, presented according to user preferences Focus on decision-making effectiveness when faced with unstructured or semi-structured business problems Decision Support Systems can help identify potential mistakes and provide a structure that makes it more difficult for a person to make a mistake. With the use of decision support systems, employees risk losing touch with the underlying principles that guide the enterprise. 11
Artificial intelligence Artificial Intelligence A field that involves computer systems taking on the characteristics of human intelligence General Categories: Expert Systems Neural Networks Case Based Reasoning Collaborative Filtering Components of Expert Systems Inference Engine User Interface and Explanation facility Subject Knowledge Base Knowledge Acquisition System User Interface Human Subject Domain Experts User 12
AI Applications Years of overpromise and underdelivery, but now new technologies: Voice recognition Optical character recognition Handwriting recognition Search engines Tangible results, e.g. Credit Card Fraud Detection Stock market prediction Automated Helpdesks Great/Annoying Personal Assistants in Office Suite Wrap Up 13
A Look ahead Study questions 14