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    Module 02

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    Vijetha K Murthy
    Major types of business information systems include: 1) Transaction processing systems which handle daily business transactions like sales orders or payroll. 2) Management information systems which consolidate transaction data to provide reports for managers. 3) Decision support systems which support management problem solving through interactive analysis and modeling. 4) Executive support systems which provide integrated internal and external data analysis tools to senior executives.

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    Module 02

    Uploaded by

    Vijetha K Murthy
    33 views45 pages
    Major types of business information systems include: 1) Transaction processing systems which handle daily business transactions like sales orders or payroll. 2) Management information systems which consolidate transaction data to provide reports for managers. 3) Decision support systems which support management problem solving through interactive analysis and modeling. 4) Executive support systems which provide integrated internal and external data analysis tools to senior executives.

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    Major types of business information systems include: 1) Transaction processing systems which handle daily business transactions like sales orders or payroll. 2) Management information systems which consolidate transaction data to provide reports for managers. 3) Decision support systems which support management problem solving through interactive analysis and modeling. 4) Executive support systems which provide integrated internal and external data analysis tools to senior executives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    33 views45 pages

    Module 02

    Uploaded by

    Vijetha K Murthy
    Major types of business information systems include: 1) Transaction processing systems which handle daily business transactions like sales orders or payroll. 2) Management information systems which consolidate transaction data to provide reports for managers. 3) Decision support systems which support management problem solving through interactive analysis and modeling. 4) Executive support systems which provide integrated internal and external data analysis tools to senior executives.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 45

    Business Information Systems

    Major Types of Systems

    Level 1-Transaction Processing Systems (TPS) Level 2-Management Information Systems (MIS) Level 2-Decision Support Systems (DSS) Level 3-Executive Support Systems (ESS)

    Transaction Processing System


    Traditional System which is a combination of people, software, hardware and database Focus on completion of a business transaction An atomic activity which ensures consistency of database Objectives of a TPS :
    Reduce Costs Reduce Efforts Automation of business transactions

    Ways of dealing with TPS :


    Batch Processing System Online Transaction Processing System (OLTP) Inputs: Transactions or events Processing: Sorting; listing; merging; updating Outputs: Detailed reports; lists; summaries Users: Operational personnel; supervisors

    Transaction Processing Cycle

    Batch Processing System


    Different transactions are queued and are executed one after another The transactions keep modifying the database and the preceding transaction operate on the data processed by previous transaction Example : Payroll system, electricity billing , telephone billing

    Online Transaction Processing System (OLTP)


    Processes data instantaneously OLTP provides operational level support to the organisation by processing business transactions Requests are received and data may be stored in database on line Failure in the system is costly and recovery is time consuming and intricate Eg : Railway Ticket Booking , Bank Accounting System

    Typical Applications of TPS


    Sales and Marketing Systems Functions : Sales Management Market Research Promotion Pricing Major Applications : Sales Order Info System Market Research System Pricing System

    Typical Applications of TPS


    Manufacturing & Production Systems Functions : Scheduling Purchasing Shipping / Receiving Operations Major Applications : Materials Requirements Planning Systems Purchase Order Control Systems Logistics Systems Quality Control Systems

    Typical Applications of TPS


    Finance and Accounting Systems Functions : Budgeting Accounting Billing Cost Accounting Major Applications : General Ledger Accounts Receivable / Payable Budgeting Funds Management Systems

    Typical Applications of TPS


    Human Resource Systems Functions : Personnel Records Benefits Compensation Labor Relations Training Major Applications : Payroll Employee Records Benefit Systems Career Path Systems Personnel Training Systems

    Office Automation System

    Support all, but mainly knowledge level (average office workers) Automate office tasks and production/distribution of documents Support paperless office environment Example: word processing, electronic scheduling /calendars, spreadsheet, integrated office software

    Office Automation Systems


    Managing Documents Creation Storage Retreival Dissemination Scheduling (individuals & groups) Electronic calendar Intranet Communicating (initiating, receiving, managing) Voice Digital Documents Managing Data Employees, Customers & Vendors

    Management Information Systems


    Consolidates data obtained from TPS Provides feedback / report for management to execute the tasks correctly Used in all areas such as accounts, inventory, sales, purchase and marketing etc.
    Inputs: Summary transaction data Processing: Simple models; low level analysis Outputs: Summary reports Users: Middle managers

    Applications of MIS

    Inbound Logistics
    Sourcing of components Buying of Commodities

    Operations
    Flexible Manufacturing Systems Automatically guided Vehicles

    Marketing & Sales


    Online Sales

    Decision Support Systems


    It is a collection of hardware and software to support decision making in a specific environment Main objective is to provide the right option Supports management to solve problems
    Inputs: databases optimized for statistical analysis Processing: Interactive. Simulations and statistical analysis Outputs: Responses to queries; statistical test results. Users: Professionals, staff

    MIS vs. DSS


    MIS
    Support Info about performance

    DSS
    Info and modeling to analyze problems Interactive Inquiries Flexible and Adaptable Analytical modeling of data

    Report Form Periodic reports or On Demand Format Pre-specified Fixed format Processing Extract and manipulate data

    GROUP DECISION-SUPPORT SYSTEMS

    What Is a GDSS?
    Group Decision-Support System (GDSS) is an interactive computer-based system used to facilitate the solution of

    unstructured problems by a set of decision makers working


    together as a group.

    Databases

    Model base

    GDSS processor

    GDSS software

    Access to the internet and corporate intranet, networks, and other computer system

    Dialogue manager

    External database access

    External databases

    Users

    Three Main Components of GDSS

    Hardware (conference facility, audiovisual equipment, etc.)


    Software tools (Electronic questionnaires, brainstorming tools, voting tools, etc.) People (Participants, trained facilitator, support staff)

    Overview of a GDSS Meeting

    In a GDSS electronic meeting, each attendee has a workstation.


    The workstations are networked and are connected to the facilitators console, which serves as the facilitators workstation and control panel, and to the meetings file server. All data that the attendees forward from their workstations to the group are collected and saved on the file server.

    Overview of a GDSS Meeting (Continued)

    The facilitator is able to project computer images onto the projection screen at the front of the room. Many electronic meeting rooms have seating arrangements in semicircles and are tiered in legislative style to accommodate a large number of attendees.

    The facilitator controls the use of tools during the meeting.

    Advantages of GDSS

    Traditional decision-making meetings support an optimal size of three to five attendees. GDSS allows a greater number of attendees. Enable collaborative atmosphere by guaranteeing contributors anonymity. Enable nonattendees to locate organized information after the meeting. Can increase the number of ideas generated and the quality of decisions while producing the desired results in fewer meetings Can lead to more participative and democratic decision making

    GDSS Alternatives
    Decision frequency

    high
    Local area Wide area decision network decision network

    Decision Teleconferencing room

    low
    close distant Location of group members

    Executive Support System (ESS)


    Characteristics of Executive Support Systems (ESS) Top level management Designed to the individual

    Ties CEO to all levels


    Very expensive to keep up Extensive support staff Inputs: Aggregate data. Internal and external Processing: Interactive and graphical simulations Outputs: Projections Users: Senior managers

    Gets data from all internal IS plus external industry data bases

    BI Dashboards
    In many respects a reporting dashboard can be likened to a dashboard in an automobile. It provides an 'at-a-glance view' of the current operational state of the vehicle.
    A dashboard is a visual display of the most important information needed to achieve one or more objectives; consolidated and arranged on a single screen so the information can be monitored at a glance.

    The Role of Executive Support Systems in the Firm


    ESS can bring together data from all parts of the firm and enable managers to select, access, and tailor them as needed.
    It tries to avoid the problem of data overload so common in paper reports. The ability to drill down is useful not only to senior executives but also to employees at lower levels of the firm who need to analyze data. Can integrate comprehensive firmwide information and external data in timely manner Inclusion of modeling and analysis tools usable with a minimum of training

    Ability to analyze, compare, and highlight trends


    Graphical interface enables users to review data more quickly and with more insight, speeding decision making.

    A Composite Dashboard

    Interrelationships among systems

    TPS generally feed all other systems MIS generally indicate when a DSS is needed and provide input for them to crunch ESS take all internal data but usually only summary data from MIS and DSS level

    Output data from one is input data for others to process

    Expert Systems
    Definition: A knowledge-based information system that uses its knowledge about a specific, complex application to act as an expert consultant to end users

    An expert system is a computer program that is designed to hold the accumulated knowledge of one or more domain experts

    Characteristics of an Expert System


    Can explain their reasoning or suggested decisions Can display intelligent behavior Can draw conclusions from complex relationships Can provide portable knowledge Can deal with uncertainty Not widely used or tested Limited to relatively narrow problems Cannot readily deal with mixed knowledge Possibility of error Cannot refine its own knowledge May have high development costs Raise legal and ethical concerns

    Capabilities of Expert Systems


    Strategic goal setting
    Planning Design Decision making Quality control and monitoring Diagnosis

    Explore impact of strategic goals


    Impact of plans on resources Integrate general design principles and manufacturing limitations Provide advise on decisions Monitor quality and assist in finding solutions Look for causes and suggest solutions

    Explanation facility

    Inference engine

    Knowledge base

    Knowledge base acquisition facility

    User interface

    Components of an Expert System

    Experts

    User

    Components of an Expert System (1)


    Knowledge base
    Stores all relevant information, data, rules, cases, and relationships used by the expert system

    Inference engine
    Seeks information and relationships from the knowledge base and provides answers, predictions, and suggestions in the way a human expert would

    Rule
    A conditional statement that links given conditions to actions or outcomes

    Components of an Expert System (2)


    Fuzzy logic
    A specialty research area in computer science that allows shades of gray and does not require everything to be simply yes/no, or true/false

    Backward chaining
    A method of reasoning that starts with conclusions and works backward to the supporting facts

    Forward chaining
    A method of reasoning that starts with the facts and works forward to the conclusions

    When to Use an Expert System (1) Provide a high potential payoff or significantly reduced downside risk Capture and preserve irreplaceable human expertise Provide expertise needed at a number of locations at the same time or in a hostile environment that is dangerous to human health

    When to Use an Expert System (2)

    Provide expertise that is expensive or rare Develop a solution faster than human experts can Provide expertise needed for training and development to share the wisdom of human experts with a large number of people

    Expert System Benefits


    Faster and more consistent than an expert
    Can have the knowledge of several experts Does not get tired or distracted by overwork or stress Helps preserve and reproduce the knowledge of experts

    Expert System Limitations


    Limited focus
    Inability to learn Maintenance problems Developmental costs

    Applications of Expert Systems


    PUFF: Medical system for diagnosis of respiratory conditions

    PROSPECTOR: Used by geologists to identify sites for drilling or mining

    Applications of Expert Systems


    MYCIN: Medical system for diagnosing blood disorders. First used in 1979

    DESIGN ADVISOR: Gives advice to designers of processor chips

    Applications of Expert Systems


    DENDRAL: Used to identify the structure of chemical compounds. First used in 1965

    LITHIAN: Gives advice to archaeologists examining stone tools

    Intelligent Agents in P&Gs Supply Chain Network

    Intelligent agents are helping Procter & Gamble shorten the replenishment cycles for products, such as a box of Tide.

    Why use Expert Systems?


    Experts are not always available. An expert system can be used anywhere, any time. Human experts are not 100% reliable or consistent Experts may not be good at explaining decisions Cost effective

    Problems with Expert Systems


    Limited domain Systems are not always up to date, and dont learn No common sense Experts needed to setup and maintain system

    Legal and Ethical Issues


    Who is responsible if the advice is wrong?
    The user? The domain expert? The knowledge engineer? The programmer of the expert system shell? The company selling the software?

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