© Arjan Raven and Duane Truex1 Business Information Systems LEARNING OBJECTIVES 1.Define and...

© Arjan Raven and Duane Truex 1

Business Information Systems

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

© Arjan Raven & Duane Truex 2

The Business Systems Architecture

Production Database

Data Warehouse Knowledge

Repository

TransactionProcessingSystems

(TPS)

Management Information

Systems (MIS)

Data Mining

(Inductive reasoning)

Search Engines& tools

Content Editing & Production

tools

OrganizationalMemoryInformationSystem(OMIS)

DSS, GDSS& EIS

External Data

Sources

On-line Analytical Processing

(OLAP)(Deductive)

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.


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


• External Data Sources • Databases and knowledge repositories. • Proprietary (paid)• Public (free)

Definitions(3): Repositories, Continued


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


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.

Transaction Processing Systems

Management Information Systems

Decision Support Systems

Complexity

Dependence on external data

MoreMore

More

Routine


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

PayRate

PayrollChecks

Payroll TransactionProcessing


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.


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

Point-of-Sale Transaction Processing System

Scanner

Exception Report

Point-of-Sale TPS

Inventory

MIS

Customer Receipt

UPC

Time,

date,

quantity


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)

Common Database

TPS

Financial MIS

Other MISs

Marketing MIS

ManufacturingMIS


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...


Outputs of a Management Information System

• Demand reports• 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



• 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.



• 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


Conceptual Model of a DSS

Dialogue Manager

User

ExternalDatabases

and models

ModelsBases

Internal Databases

ModelManagement

System

Database Management

System

Interfaceto

Externalsources


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

Subject DomainExperts

User

User Interface

Knowledge Acquisition

System

SubjectKnowledge

Base

User Interface and

Explanation facility

Inference Engine

Human


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

© Arjan Raven and Duane Truex1 Business Information Systems LEARNING OBJECTIVES 1.Define and...

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