CBISCBIS© J Holden 2005© J Holden 2005

CC

also called a “business system”also called a “business system”

BBIISS

omputeromputerasedasednformationnformationystemystem

INPUT TRANSFORMATION OUTPUT

Source: McLeod & Schell (2001), “Management Information Systems”

Source: Unknown

Transactional Processing Systems (TPS)

Management Information Systems (MIS)

Decision Support Systems (DSS)

Executive Support Systems (ESS)

Transaction Processing SystemTransaction Processing System

p.14.430 Fig. 14.6

MIS - What Managers Need to MIS - What Managers Need to KnowKnow

Managers have many responsibilitiesManagers have many responsibilities Identify and solve problemsIdentify and solve problems Identify and take advantage of opportunitiesIdentify and take advantage of opportunities

Must constantly monitor surroundingsMust constantly monitor surroundings Computer systems for managerial Computer systems for managerial

responsibilities:responsibilities: Management information systemsManagement information systems Executive information systemsExecutive information systems

Computer Systems Used by Computer Systems Used by ManagersManagers

Management Information

Systems

Executive Information Systems

Management Information SystemManagement Information System

MISMIS a system that a system that provides periodic and provides periodic and predetermined reports predetermined reports that summarize that summarize informationinformation

Processes and creates Processes and creates new informationnew information

Also called Also called management management alerting systemsalerting systems

p.14.433 Fig. 14.8

Types of Management Information Types of Management Information System ReportsSystem Reports

Exception ReportException Report

Summarized ReportSummarized ReportPeriodic ReportPeriodic Report

Comparative ReportComparative Report

Executive Information SystemExecutive Information System

EISEIS a highly a highly interactive MIS interactive MIS Helps managers solve Helps managers solve

problems & identify problems & identify opportunitiesopportunities

Creates new Creates new information and information and presents it to userpresents it to user

Can perform "What Can perform "What if?" analysisif?" analysis

p.14.434 Fig. 14.10

Executive Information SystemExecutive Information System

Allows you to "drill down" through Allows you to "drill down" through informationinformation

Can better determine causes of problemsCan better determine causes of problems Can better determine how to take Can better determine how to take

advantage of opportunitiesadvantage of opportunities

What is meant by "drill down"?What is meant by "drill down"?

Decision MakingDecision Making

In the business world, managers make In the business world, managers make decisions every day, some more decisions every day, some more consequential than others. Decision making consequential than others. Decision making is one of the most significant and important is one of the most significant and important activities in business.activities in business.

IT power in the form of artificial intelligence is IT power in the form of artificial intelligence is actually replacing human brainpower to a actually replacing human brainpower to a limited degree.limited degree.

Three Major Categories of Computer-Three Major Categories of Computer-aided Decision-Making Softwareaided Decision-Making Software

Decision Support Software

Artificial

Intelligence

Intelligent Agent

15.1 Decision Support Software 15.1 Decision Support Software

Decisions can be:Decisions can be:

StructuredStructured UnstructuredUnstructuredSomewhere in between

Decision Support SoftwareDecision Support Software

DecisionsDecisions Structured - make by applying a formulaStructured - make by applying a formula Unstructured – no guaranteed way to get a precise Unstructured – no guaranteed way to get a precise

right answer right answer

p. 15.457 - Fig. 15.1

Decision Making WithDecision Making With Personal Productivity SoftwarePersonal Productivity Software

Choices for financing a car that costs Choices for financing a car that costs $10,000:$10,000: Three years at 8.25 percent interestThree years at 8.25 percent interest Four years at 9.25 percent interestFour years at 9.25 percent interest $1,000 down and three years at 8 percent $1,000 down and three years at 8 percent

interestinterest

What are the structured parts of this What are the structured parts of this decision? The unstructured parts?decision? The unstructured parts?

SimNet Concepts Support CD: “Spreadsheet Applications”

DSS - Analyze Options and Make DSS - Analyze Options and Make a Decisiona Decision

p. 15.460 - Fig. 15.5

Business Tasks Where DSS Business Tasks Where DSS Can Be Used *Can Be Used *

Deciding where to spend advertising Deciding where to spend advertising dollarsdollars

Analyzing sales trend informationAnalyzing sales trend information Analyzing drug interactionsAnalyzing drug interactions Developing airline schedulesDeveloping airline schedules Developing asset portfoliosDeveloping asset portfolios