Basic Concepts in MIS1

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    DATA & INFORMATIONDATA & INFORMATION

    DATADATA:: STREAMSSTREAMS OFOF RAW RAW FACTSFACTS

    REPRESENTINGREPRESENTING EVENTSEVENTS SUCHSUCH ASAS

    BUSINESSBUSINESS TRANSACTIONSTRANSACTIONS..

    INFORMATIONINFORMATION:: CLUSTERSCLUSTERS OFOF FACTSFACTS

    MEANINGFULMEANINGFUL && USEFULUSEFUL TOTO HUMANHUMANBEINGSBEINGS ININ PROCESSESPROCESSES SUCHSUCH ASAS MAKINGMAKING

    DECISIONSDECISIONS..

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    SYSTEMSYSTEM

    INPUT OUTPUTPROCESS

    FEEDBACK

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    Information TechnologyInformation Technology

    A science that has evolved over a period of time to assistA science that has evolved over a period of time to assist

    businesses in doing better business!!businesses in doing better business!!

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    FUNCTIONS OFAN INFORMATION SYSTEMFUNCTIONS OFAN INFORMATION SYSTEM

    INPUT OUTPUTPROCESS

    FEEDBACK

    INFORMATIONINFORMATION SYSTEMSYSTEM

    ENVIRONMENTENVIRONMENT

    Customers SuppliersCustomers Suppliers

    Regulatory Stockholders CompetitorsRegulatory Stockholders Competitors

    AgenciesAgencies

    ORGANIZATIONORGANIZATION

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    Why are Information SystemsWhy are Information Systems

    Important to Organizations &Important to Organizations &

    SocietySociety IT will reduce the number of middleIT will reduce the number of middle

    managers.managers.

    IT will change the managers job.IT will change the managers job.

    IT impacts employees at work.IT impacts employees at work.

    IT provides qualityIT provides quality--ofof--life improvements.life improvements.

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    ORGANIZATIONSORGANIZATIONS

    PEOPLEPEOPLE:: Managers,Managers, knowledgeknowledge workers,workers, datadata

    workers,workers, productionproduction oror serviceservice workersworkers

    STRUCTURESTRUCTURE:: OrganizationOrganization chart,chart, groupsgroups ofofspecialists,specialists, products,products, geographygeography

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    INFORMATION SYSTEMSINFORMATION SYSTEMS

    ORGANIZATIONSORGANIZATIONS TECHNOLOGYTECHNOLOGY

    MANAGEMENTMANAGEMENT

    INFORMATIONINFORMATION

    SYSTEMSSYSTEMS

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    SOCIOLOGYSOCIOLOGY

    POLITICALPOLITICAL

    SCIENCESCIENCE

    COMPUTERCOMPUTER

    SCIENCESCIENCEOPERATIONSOPERATIONS

    RESEARCHRESEARCH

    MANAGEMENTMANAGEMENT

    SCIENCESCIENCE

    TECHNICAL APPROACHESTECHNICAL APPROACHES

    APPROACHES TO INFO SYSTEMSAPPROACHES TO INFO SYSTEMS

    MISMIS

    BEHAVIORAL APPROACHESBEHAVIORAL APPROACHES

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    Major Types of SystemsMajor Types of Systems

    Decision Support Systems (DSS)Decision Support Systems (DSS)

    Management Information Systems (MIS)Management Information Systems (MIS)

    Process Control System( PCS)Process Control System( PCS) Management Support System ( MSS)Management Support System ( MSS)

    Operations Support Systems (OSS)Operations Support Systems (OSS)

    Transaction Processing Systems (TPS)Transaction Processing Systems (TPS) Enterprise Collaboration System( ECS)Enterprise Collaboration System( ECS) Executive Information Systems (EIS)Executive Information Systems (EIS)

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    10

    Types of Information SystemsTypes of Information Systems

    Operations Support SystemsOperations Support Systems

    Efficiently process business transactionsEfficiently process business transactions

    Control industrial processesControl industrial processes

    Support communication and collaborationSupport communication and collaboration

    Update corporate databasesUpdate corporate databases

    Management Support SystemsManagement Support Systems

    Provide information as reports and displaysProvide information as reports and displays

    Give direct computer support to managers duringGive direct computer support to managers duringdecisiondecision--makingmaking

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    Chapter 1 Foundations of Information Systems in Business 11

    Types of OSSTypes of OSS

    Transaction Processing SystemsTransaction Processing Systems

    Process Control SystemsProcess Control Systems

    Enterprise Collaboration SystemsEnterprise Collaboration Systems

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    MSSMSS

    When information systems focus on providingWhen information systems focus on providinginformation and support for effective decisioninformation and support for effective decision--makingmakingby managers, they are calledby managers, they are called management supportmanagement supportsystemssystems..

    Providing information and support for decisionProviding information and support for decision--makingmakingby all types of managers (from top executives to middleby all types of managers (from top executives to middlemanagers to project supervisors) is a complex taskmanagers to project supervisors) is a complex task..

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    Types ofManagement Support SystemsTypes ofManagement Support Systems

    Management Information Systems (MIS)Management Information Systems (MIS)

    Decision Support Systems (DSS)Decision Support Systems (DSS)

    Executive Information Systems (EIS)Executive Information Systems (EIS)

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    Transaction Processing SystemsTransaction Processing Systems

    (TPS)(TPS)TPSTPS isis anan informationinformation systemsystem thatthat capturecapture andand

    processprocess datadata generatedgenerated duringduring thethe day day--toto--dayday

    transactionstransactions ofof anan organizationorganization..

    ExampleExample:: Deposits,Deposits, payments,payments, ordersorders oror reservationsreservations..

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    TransactionsTransactions

    A transaction is aA transaction is a logical unitlogical unitof programof program

    executionexecution

    A combination of database updates which haveA combination of database updates which haveto be performed togetherto be performed together

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    What is a Transaction?What is a Transaction?

    A logical unit of work.A logical unit of work.

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    What is a Transaction?What is a Transaction?

    An atomic execution unit that,An atomic execution unit that,

    when applied to a consistentwhen applied to a consistent

    database, generates adatabase, generates a

    consistent but possiblyconsistent but possibly

    different database.different database.

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    What is a Transaction?What is a Transaction?

    A short sequence of operationsA short sequence of operationswith the database whichwith the database which

    represents one meaningfulrepresents one meaningful

    activity in the user's environment.activity in the user's environment.

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    Data Input Data Processing Output Generation

    Data Storage

    A Transaction Processing ModelA Transaction Processing Model

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    Typical TPS ApplicationsTypical TPS Applications

    Sales & Marketing SystemsSales & Marketing Systems

    Major FunctionsMajor Functions--

    Sales Management, Market Research, Promotion,Sales Management, Market Research, Promotion,

    Pricing, New ProductsPricing, New Products Major ApplicationsMajor Applications--

    Sales Order info systems, Market research system,Sales Order info systems, Market research system,pricing systempricing system

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    Typical TPS ApplicationsTypical TPS Applications

    Manufacturing & ProductionManufacturing & Production

    SystemsSystems Major FunctionsMajor Functions--

    Scheduling, purchasing, shipping, receiving,Scheduling, purchasing, shipping, receiving,

    engineering, operationsengineering, operations Major ApplicationsMajor Applications--

    Material resource planning systems, Purchase orderMaterial resource planning systems, Purchase ordercontrol systems, engineering systems, quality controlcontrol systems, engineering systems, quality controlsystemssystems

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    Typical TPS ApplicationsTypical TPS Applications

    Human Resources SystemsHuman Resources Systems

    Major FunctionsMajor Functions--

    Personnel records, benefits, compensation, laborPersonnel records, benefits, compensation, labor

    relations, training.relations, training.

    Major ApplicationsMajor Applications--

    Payroll, employee records, benefit systems, careerPayroll, employee records, benefit systems, career

    path systems, personnel training systemspath systems, personnel training systems

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    Typical TPS ApplicationsTypical TPS Applications

    Other Types (exOther Types (ex--University, etc)University, etc)

    Major FunctionsMajor Functions--

    Admissions, Grade records, Course records, AlumniAdmissions, Grade records, Course records, Alumni

    Major ApplicationsMajor Applications--

    RegistrationRegistration system,system, studentstudent transcripttranscript system,system,curriculumcurriculum classclass controlcontrol system,system, alumnialumni benefactorbenefactor

    systemsystem..

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    Chapter 1 Foundations of Information Systems in Business 24

    Process Control SystemsProcess Control Systems

    Monitor and control physical processesMonitor and control physical processes

    ExampleExample:: using using sensorssensors toto monitormonitor chemicalchemicalprocessesprocesses inin aa petroleumpetroleum refineryrefinery

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    Chapter 1 Foundations of Information Systems in Business 25

    Enterprise Collaboration SystemsEnterprise Collaboration Systems

    Enhance team and workgroup communicationEnhance team and workgroup communication

    Example: email, video conferencingExample: email, video conferencing

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    Management Information SystemsManagement Information Systems

    (MIS)(MIS)MISMIS isis anan informationinformation systemsystem thatthat generatesgenerates

    accurate,accurate, timelytimely andand organizedorganized informationinformation soso thatthat

    managersmanagers cancan makemake decisions,decisions, solvesolve problems,problems,supervisesupervise activitiesactivities andand tracktrack progressprogress.. However,However,employeesemployees areare wiredwired intointo thethe systemssystems andand

    technologytechnology isis pushedpushed downwardsdownwards andand becomesbecomes

    widelywidely accessibleaccessible..

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    MANAGEMENT INFORMATIONMANAGEMENT INFORMATION

    SYSTEMSSYSTEMSA Management Information System is used byA Management Information System is used by

    managers throughout the organization to helpmanagers throughout the organization to helpthem in directing, planning, coordinating,them in directing, planning, coordinating,

    communicating, and decisioncommunicating, and decision--makingmaking

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    MISMIS--DefinitionDefinition

    MIS refers broadly to a computerMIS refers broadly to a computer--based system thatbased system thatprovides managers with the tools for organizing,provides managers with the tools for organizing,evaluating and efficiently running their departments.evaluating and efficiently running their departments.

    In order to provide past, present and predictionIn order to provide past, present and predictioninformation, an MIS can include software that helps ininformation, an MIS can include software that helps indecisiondecision--making, data resources such as databases, themaking, data resources such as databases, thehardware resources of a system, decision supporthardware resources of a system, decision support

    systems, people management and project managementsystems, people management and project managementapplications, and any computerized processes thatapplications, and any computerized processes thatenable the department to run efficientlyenable the department to run efficiently

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    Role OfMISRole OfMIS

    MIS plays very vital role in the management,MIS plays very vital role in the management,

    administration and operation of theadministration and operation of theorganization.organization.

    The system ensures that an appropriate data isThe system ensures that an appropriate data iscollected from various sources, processed andcollected from various sources, processed and

    sent further to all the needy destinations.sent further to all the needy destinations.

    fulfill the information needs of an individual andfulfill the information needs of an individual and

    top managementtop management

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    Role OfMISRole OfMIS

    Basic roles of MIS can be outlines as below :Basic roles of MIS can be outlines as below :

    Hardware administrationHardware administration

    Software development, and supportSoftware development, and support End user supportEnd user support

    Computing standardsComputing standards

    DB administrationDB administration

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    Role OfMISRole OfMIS

    At every phase of the management process, managers constantlyAt every phase of the management process, managers constantlyneed information in order to make effective decisions.need information in order to make effective decisions.

    It does not include purely functional information or technicalIt does not include purely functional information or technicalinformation.information.

    Management information is the information required byManagement information is the information required bymanagers as they make their decisions, such as themanagers as they make their decisions, such as the number of staff required to be employed by each department,number of staff required to be employed by each department,

    their training requirements,their training requirements,

    career development plans,career development plans,

    job descriptions,job descriptions,

    budgets,budgets,

    overall forecasts,overall forecasts,

    benchmark surveys, andbenchmark surveys, and

    progress reports on socio economic conditions.progress reports on socio economic conditions.

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    The Role of MISThe Role of MIS

    (i) Timely and Accurate Transaction Processing.(i) Timely and Accurate Transaction Processing.(ii) Streamlining Accounting and Records(ii) Streamlining Accounting and Records

    Management.Management.

    (iii) Providing Managers with ad hoc and(iii) Providing Managers with ad hoc andinteractive support in decisioninteractive support in decision--making.making.

    (iv) Provision of an easy and systematic way in(iv) Provision of an easy and systematic way indigging out critical information tailoreddigging out critical information tailored

    according to specific requirements, andaccording to specific requirements, andcustomized in preferred formats.customized in preferred formats.

    (v) Enables an organization to gain competitive(v) Enables an organization to gain competitiveadvantage over others.advantage over others.

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    The Role of MISThe Role of MIS

    (vi) Better communication, inter(vi) Better communication, inter--organizational computing,organizational computing,and internetand internet--working. Supports business operations andworking. Supports business operations andsuccessful management of business enterprises.successful management of business enterprises.

    (vii) Better use of executive resources by automating(vii) Better use of executive resources by automatingroutine functions.routine functions.

    (viii) Increased ability to make sound, rational and(viii) Increased ability to make sound, rational andinformed decisions involving complex combinations ofinformed decisions involving complex combinations offactors, and doing so with more confidence and speed.factors, and doing so with more confidence and speed.

    (ix) Better use of time by making facilities available every(ix) Better use of time by making facilities available everytime they are required.time they are required.(x) Improved customer services and improved personnel(x) Improved customer services and improved personnel

    relations within the organizationrelations within the organization

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    Impact ofMISImpact ofMIS

    MISMIS creates,creates, anan impactimpact onon thethe organizationsorganizations

    function,function, performanceperformance andand productivityproductivity..

    WithWith MISMIS supportsupport managementmanagement of of allalldepartmentsdepartments ofof anan organizationorganization cancan becomebecomemoremore effectiveeffective..

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    Impact ofMISImpact ofMIS

    Impact on ManagementImpact on Management

    yy Targets tracking and monitoring becomes easy.Targets tracking and monitoring becomes easy.Top level managers can be informed accordingly.Top level managers can be informed accordingly.

    yy Probable trends in various aspects of business canProbable trends in various aspects of business canbe traced.be traced.

    yy Exception conditions can be brought to theException conditions can be brought to thenoticed, so that manages can take decision in thatnoticed, so that manages can take decision in that

    matter.matter.yy Information reporting system helps entireInformation reporting system helps entireorganization.organization.

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    Impact on Understanding of BusinessImpact on Understanding of Business

    yy MIS brings clarity in the communication, due toMIS brings clarity in the communication, due tocommon understanding of terms and terminology.common understanding of terms and terminology.

    yy Brings high degree of professionalism in theBrings high degree of professionalism in thebusiness operations.business operations.

    Impact on ManagerialEfficiencyImpact on ManagerialEfficiency

    yy Helps him to use different tools and techniques,Helps him to use different tools and techniques,which are impossible to use manually.which are impossible to use manually.

    yy DecisionDecision--making ability is improved.making ability is improved.

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    WHAT IS MANAGEMENTWHAT IS MANAGEMENT

    Management :Management : Mary Follett defined management asMary Follett defined management asthe art of getting things done through people.the art of getting things done through people.

    Manager :Manager : Person who achieves the organization goalsPerson who achieves the organization goals

    by motivating others to perform, not doing himself.by motivating others to perform, not doing himself. Management (ForMIS) :Management (ForMIS) : Defined as a process ofDefined as a process of

    planning, organizing, staffing, coordinating andplanning, organizing, staffing, coordinating andcontrolling the efforts of the members of thecontrolling the efforts of the members of the

    organization to achieve command stated goals of theorganization to achieve command stated goals of theorganization.organization.

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    FUNCTIONS OF MANAGERFUNCTIONS OF MANAGER

    Planning,Planning,

    Organizing,Organizing,

    Staffing,Staffing, Directing,Directing,

    CoCo--ordinating andordinating and

    Controlling.Controlling.

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    PlanningPlanning

    Planning is nothing but the process of determining thePlanning is nothing but the process of determining thegoals and objectives and strategies for achieving goalsgoals and objectives and strategies for achieving goalsof the organization.of the organization.

    According to Lorange, when doing planning managersAccording to Lorange, when doing planning managersneed to :need to :

    1)1) Write or review the organizations mission,Write or review the organizations mission,

    2)2) Identify and analyze opportunities,Identify and analyze opportunities,

    3)3) Establish goals,Establish goals,4)4) Select a course of action to achieve these goals,Select a course of action to achieve these goals,

    5)5) Determine resources needed.Determine resources needed.

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    OrganizingOrganizing

    deciding what work needs to be done, assigning thedeciding what work needs to be done, assigning thetasks, and arranging them into a decisiontasks, and arranging them into a decision--makingmakingframework.framework.

    Organization involves evolving the structure of theOrganization involves evolving the structure of thepeople working in the organization and their roles.people working in the organization and their roles.

    Organizing is the process by which the structure andOrganizing is the process by which the structure andallocation of jobs is determined.allocation of jobs is determined.

    Organizing involves determining activities required toOrganizing involves determining activities required toachieve the established company objectives, groupingachieve the established company objectives, groupingthese activities in a logical basis for handling bythese activities in a logical basis for handling bypersons, managers and, finally assigning persons to thepersons, managers and, finally assigning persons to thejob designed.job designed.

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    StaffingStaffing

    The primary purposes of staffing are toThe primary purposes of staffing are to find,find,hire, develop, reward and retainhire, develop, reward and retain the requiredthe requiredamount ofamount ofgood peoplegood people, helping them meet, helping them meet

    their needs while they help the company meet itstheir needs while they help the company meet itsgoal.goal.

    This statement addresses several importantThis statement addresses several importantaspects of staffing includingaspects of staffing includingrecruiting,recruiting,training and retainingtraining and retaining employees that willemployees that willbenefit the company.benefit the company.

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    ControllingControlling

    Controlling is the management function, in whichControlling is the management function, in whichmanagers set and communicate performance standardsmanagers set and communicate performance standardsfor people, processes, and devices.for people, processes, and devices.

    The four steps of the control process are :The four steps of the control process are :1) Establishing performance standards,1) Establishing performance standards,

    2)2) Measuring performance,Measuring performance,

    3) Comparing measured performance to established3) Comparing measured performance to establishedstandards,standards,

    4) Taking corrective action..4) Taking corrective action..

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    DirectingDirecting

    Directing is influencing peoples behaviorDirecting is influencing peoples behavior

    throughthrough motivation, communication, groupmotivation, communication, groupdynamics and leadershipdynamics and leadership..

    The purpose of directing is to channel theThe purpose of directing is to channel thebehaviors of all personnel to accomplish thebehaviors of all personnel to accomplish the

    organizations mission and objectivesorganizations mission and objectiveswhilewhile

    simultaneously helping them accomplish theirsimultaneously helping them accomplish theirown career objectivesown career objectives..

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    CoCo--ordinatingordinating

    This function brings aThis function brings a harmony and smoothnessharmony and smoothness ininthe various group activities and individual effortsthe various group activities and individual effortsdirected towards goals.directed towards goals.

    It needsIt needs synchronizing individual efforts andsynchronizing individual efforts andactionsactionswhich may differ.which may differ.

    This is normally carried out by the authority of top levelThis is normally carried out by the authority of top levelmanagement.management.

    CoCo--ordinating includes communicating with others,ordinating includes communicating with others,providing directions and motivating people.providing directions and motivating people.

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    MIS : A TOOL FORMIS : A TOOL FOR

    MANAGEMENT PROCESSMANAGEMENT PROCESS Management as a process consists ofManagement as a process consists ofcontinuouscontinuousdecisiondecision--makingmaking, necessitated by, necessitated byvariations in goalsvariations in goalsand also the fact thatand also the fact that lack of complete knowledgelack of complete knowledgecreatescreates risk and uncertaintyrisk and uncertainty associated with decisionassociated with decision--making.making.

    Specific decisions are greatly influenced by theSpecific decisions are greatly influenced by theorganizational goals, which have to be achieved.organizational goals, which have to be achieved.

    The complete process of management requires lots ofThe complete process of management requires lots ofdata and informationdata and information for execution of the plan.for execution of the plan.

    MIS is therefore, is definitely aMIS is therefore, is definitely a tool for effectivetool for effectiveexecution of management process.execution of management process.

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    Decision Support SystemDecision Support SystemGeneral definitionGeneral definition -- a system providing botha system providing both

    problemproblem--solving and communications capabilitiessolving and communications capabilities

    for semi structured problemsfor semi structured problemsSpecific definitionSpecific definition -- a system that supports a singlea system that supports a single

    manager or a relatively small group of managersmanager or a relatively small group of managersworking as a problemworking as a problem--solving team in the solutionsolving team in the solution

    of a semi structured problem by providingof a semi structured problem by providinginformation or making suggestions concerninginformation or making suggestions concerningspecificspecific decisions.decisions.

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    Decision Support SystemsDecision Support Systems

    Management LevelManagement Level

    InputsInputs--Low volume dataLow volume data

    ProcessingProcessing--InteractiveInteractive OutputOutput--Decision AnalysisDecision Analysis

    UsersUsers--Professionals, StaffProfessionals, Staff

    ExampleExample--Contract Cost AnalysisContract Cost Analysis

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    Decision Support SystemsDecision Support Systems

    Flexible, Adaptable, QuickFlexible, Adaptable, Quick

    User controls Inputs/OutputsUser controls Inputs/Outputs

    No professional programmingNo professional programming Supports decision processSupports decision process

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    Examples of Business ProcessesExamples of Business Processes

    Manufacturing & ProductionManufacturing & Production

    Assembling product, checking quality, producingAssembling product, checking quality, producing

    bills of materialsbills of materials Sales & MarketingSales & Marketing

    Identifying customers, creating customer awareness,Identifying customers, creating customer awareness,sellingselling

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    Examples of Business ProcessesExamples of Business Processes

    Finance & AccountingFinance & Accounting

    Paying creditors, creating financial statements,Paying creditors, creating financial statements,

    managing cash accountsmanaging cash accounts Human ResourcesHuman Resources

    Hiring employees, evaluating performance, employeeHiring employees, evaluating performance, employeebenefit plans, etc.benefit plans, etc.

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    Executive Information Systems (EIS)Executive Information Systems (EIS)

    EISEIS isis designeddesigned toto supportsupport thethe informationinformation needsneeds

    ofof executiveexecutive managersmanagers..

    InformationInformation inin anan EISEIS areare presentedpresented inin chartscharts andandtablestables thatthat showshow trends,trends, ratiosratios andand otherothermanagerialmanagerial statisticsstatistics..

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    Executive Information System (EIS)Executive Information System (EIS)

    Executive information system (EIS)Executive information system (EIS) aaspecialized DSS that supports senior levelspecialized DSS that supports senior levelexecutives within the organizationexecutives within the organization

    Most EISs offering the following capabilities:Most EISs offering the following capabilities: DrillDrill--downdownenables users to get details, and detailsenables users to get details, and details

    of details, of informationof details, of information

    SliceSlice--andand--dicedice looks at information from differentlooks at information from differentperspectiveperspective

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    Executive Information Systems (EIS)Executive Information Systems (EIS)

    Critical information for executives and managersCritical information for executives and managers

    Example: easy access to actions of competitorsExample: easy access to actions of competitors

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    Artificial IntelligenceArtificial Intelligence

    what is meant bywhat is meant by"intelligent"."intelligent".

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    intelligenceintelligence contain references to concepts suchcontain references to concepts such

    asas "intellectual skill""intellectual skill"

    "the capacity for understanding""the capacity for understanding"

    more general definitions of intelligence often take intomore general definitions of intelligence often take into

    account ideas of learning from mistakes.account ideas of learning from mistakes.

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    Minsky (1968)Minsky (1968) concisely defines artificialconcisely defines artificial

    intelligence asintelligence as "The science of making machines do"The science of making machines dothings that would require intelligence if done by men"things that would require intelligence if done by men"

    Eysenck (1990)Eysenck (1990) gives us a way forward into thegives us a way forward into the

    domain of intelligent databases with thedomain of intelligent databases with thestatement,statement, "Artificial intelligence is concerned with the"Artificial intelligence is concerned with theattempt to develop complex computer programs that willattempt to develop complex computer programs that will

    be capable of performing difficult cognitive tasks."be capable of performing difficult cognitive tasks."

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    Artificial intelligence (AI)Artificial intelligence (AI) is the effort tois the effort to

    develop computerdevelop computer--based systems (bothbased systems (bothhardware and software) that behave as humans,hardware and software) that behave as humans,

    with the ability to learn languages, accomplishwith the ability to learn languages, accomplishphysical tasks, use a perceptual apparatus, andphysical tasks, use a perceptual apparatus, and

    emulate human expertise and decision makingemulate human expertise and decision making

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    Expert Systems (

    ES)

    Expert Systems (

    ES)

    ESES isis anan informationinformation systemsystem thatthat capturescaptures andand storesstoresthethe knowledgeknowledge ofof humanhuman expertsexperts andand thenthen imitatesimitates

    humanhuman reasoningreasoning andand decisiondecision makingmaking processesprocesses forforthosethose whowho havehave lessless expertiseexpertise..

    ExampleExample:: ArtificialArtificial IntelligenceIntelligence (AI)(AI) thethe applicationapplicationofof humanhuman intelligenceintelligence toto computerscomputers.. (Speech(Speechrecognitionrecognition andand creativecreative responses)responses)

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    Commonly an expert system would consist ofCommonly an expert system would consist of

    two components:two components:A database of facts and rules, known as aA database of facts and rules, known as a

    knowledge base, and an inference engine, aknowledge base, and an inference engine, aprogram that can apply those rules and facts andprogram that can apply those rules and facts and

    come up with an "expert" solution to thecome up with an "expert" solution to the

    question.question.

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    An expert system contains a number of rules toAn expert system contains a number of rules to

    be followed. The rules are interconnected; thebe followed. The rules are interconnected; thenumber of outcomes is known in advance and isnumber of outcomes is known in advance and islimited; there are multiple paths to the samelimited; there are multiple paths to the same

    outcome; and the system can consider multipleoutcome; and the system can consider multiple

    rules at a single time.rules at a single time.

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    Expert systemsExpert systems::

    Capture knowledge in a very specific, limited domain of humanCapture knowledge in a very specific, limited domain of humanexpertiseexpertise

    Support highly structured decision makingSupport highly structured decision making

    Model human knowledge as a set of rules called theModel human knowledge as a set of rules called the knowledgeknowledgebasebase

    Work by applying a set of IFWork by applying a set of IF--THENTHEN--ELSE rules extracted fromELSE rules extracted fromhuman expertshuman experts

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    Use anUse an inference engineinference engine to search through theto search through theknowledge base. Inknowledge base. In forward chainingforward chaining, the inference, the inferenceengine begins with information entered by the user toengine begins with information entered by the user tosearch the knowledge base for a conclusion. Insearch the knowledge base for a conclusion. In

    backward chainingbackward chaining, the system begins with a, the system begins with ahypothesis and asks the user questions to confirm orhypothesis and asks the user questions to confirm ordisprove the hypothesis.disprove the hypothesis.

    Require input from both human experts for definingRequire input from both human experts for definingthe knowledge base andthe knowledge base and knowledge engineersknowledge engineers, who, whotranslate the knowledge into a set of rulestranslate the knowledge into a set of rules

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    Virtual reality systems:Virtual reality systems:These use interactiveThese use interactive

    graphics software to aid drug designers,graphics software to aid drug designers,architects, engineers, and medical workers byarchitects, engineers, and medical workers by

    presenting precise, threepresenting precise, three--dimensionaldimensionalsimulations of objects.simulations of objects.

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    Virtual reality is an artificial environment that isVirtual reality is an artificial environment that is

    created with software and presented to the usercreated with software and presented to the userin such a way that the user suspends belief andin such a way that the user suspends belief and

    accepts it as a real environment. On a computer,accepts it as a real environment. On a computer,

    virtual reality is primarily experienced throughvirtual reality is primarily experienced throughtwo senses: sight and sound. The simplest formtwo senses: sight and sound. The simplest form

    of virtual reality is aof virtual reality is a 33--DD image that can beimage that can beexplored interactively at a personal computer,explored interactively at a personal computer,

    usually by manipulating keys or the mouse sousually by manipulating keys or the mouse sothat the content of the image moves in somethat the content of the image moves in some

    direction or zooms in or out.direction or zooms in or out.

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    Fuzzy Logic DefinitionFuzzy Logic Definition

    Fuzzy logic a superset of Boolean logic dealing with the conceptFuzzy logic a superset of Boolean logic dealing with the concept

    of partial truthof partial truthtruth values between completely true andtruth values between completely true and

    completely false.It was introduced mainly to model thecompletely false.It was introduced mainly to model the

    uncertainty of natural language.uncertainty of natural language.

    Fuzzy set to describeFuzzy set to describethe degree to whichthe degree to whichtwo numbers aretwo numbers are

    similar, for example,similar, for example,degree of similaritydegree of similarityof temperaturesof temperatures

    0.000.250.50

    0.751.00

    -20 -10 0 10 20

    difference (C)

    Q

    very

    slightly

    uite

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    Fuzzy logic systemsFuzzy logic systems

    Use ruleUse rule--based logic to represent imprecise valuesbased logic to represent imprecise values

    used in human or linguistic categorization, such asused in human or linguistic categorization, such as

    defining and comparing terms such as "hot, warm,defining and comparing terms such as "hot, warm,

    cool, cold" for use in a temperature controlcool, cold" for use in a temperature controlsystem.system.

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    Neural networksNeural networks

    Find patterns and relationships in massiveFind patterns and relationships in massive

    amounts of data that would be too complicatedamounts of data that would be too complicated

    and difficult for a human being to analyze.and difficult for a human being to analyze.

    Use a large number of sensing and processingUse a large number of sensing and processing

    nodes that continuously interact with each othernodes that continuously interact with each other

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    May be sensitive and not perform well with tooMay be sensitive and not perform well with toolittle or too much datalittle or too much data

    Are used in science, medicine, and businessAre used in science, medicine, and businessprimarily to discriminate patterns in massiveprimarily to discriminate patterns in massive

    amounts of data.amounts of data.

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    CrossCross--functional information systemfunctional information system

    A crossA cross--functional information system is the third erafunctional information system is the third eraof infromation systems, after calculations systems andof infromation systems, after calculations systems andfunctional systems.functional systems.CrossCross--functional systems were designed to intergreatefunctional systems were designed to intergreate

    the activities of the entire business process, and arethe activities of the entire business process, and arecalled so because they 'cross' departmental boundaries.called so because they 'cross' departmental boundaries.Chaning over to a crossChaning over to a cross--functional system from afunctional system from afunctional one can be problematic at times, as itfunctional one can be problematic at times, as itinvolves the coordinationg of activities across multipleinvolves the coordinationg of activities across multiple

    deparments, with the users changing the way that theydeparments, with the users changing the way that theywork. There is no clear line of authority, and fierce peerwork. There is no clear line of authority, and fierce peercompetition can often lead to interderparmentalcompetition can often lead to interderparmentalrivalries that hinders the development of the newrivalries that hinders the development of the newsystem.system.