CBIS 1

Managing an Enterprise with Information

CBIS 2

Management VIA Information Systems

vs.

Management OF Information Systems

Management and IS

CBIS 3

Management and IS

Management VIA IS: External Focus

Management OF IS: Internal Focus

CBIS 4

IT Management

“A business within a business”

StrategicFit

StructuralFit

CulturalFit

TechnologyTransfer

IT

Organization

CBIS 5

Computer-Based Information Systems

IT(hw/sw)

Data

People

Procedures

CBIS

Most imp entity

For transacation purpose

CBIS 6

Transactions

• Transactions…• Basic business operations such as customer orders,

purchase orders, receipts, time cards, invoices, and payroll checks in an organization

• Transaction processing systems (TPS)• Perform routine operations and serve as a

foundation for other systems

Basically operate at lower level3 levelStrategic ManagerialOperational..

CBIS 7

Batch vs. On-Line Transaction Processing

• Two types of TPS:– Batch processing

• A system whereby business transactions are accumulated over a period of time and prepared for processing as a single unit or batch

– On-line transaction processing (OLTP)• A system whereby each transaction is processed

immediately, without the delay of accumulating transactions into a batch

CBIS 8

Point-of-Sale Transaction Processing System

Customer’sreceipt

Inventorydatabase

Managementinformation

system

Exceptionreport

Purchasesdatabase

Scanner

Point-of-saletransactionprocessing

system

Itemdatabase

UPC andquantity

Item, quantity,date, time, price

UPC Price

UPC

Quantity,Date,time Uses to take

decision

CBIS 9

Control and Management Issues

• Business resumption planning• The implementation of the business resumption plan.

• Disaster recovery(data recovering after loss/hazard)

The process of anticipating and providing for disasters.

• Transaction processing system audit• An examination of the TPS in an attempt to answer three basic

questions

• Does the system meet the business need?

• What procedures and controls have been established?

• Are the procedures and controls being properly used?

CBIS 10

Management Information System (MIS)

• Management information system • An MIS provides managers with information and

support for effective decision making, and provides feedback on daily operations

• Output, or reports, are usually generated through accumulation of transaction processing data

• Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization(common DB, Centralized DB)

Decision take place @ 2nd level

CBIS 11

Management Information System Reports

• Scheduled reports(for Batch system)• Produced periodically, or on a schedule (daily, weekly,

monthly)

• Key-indicator report• Summarizes the previous day’s critical activities• Typically available at the beginning of each day

• Demand report• Gives certain information at a manager’s request

• Exception report(highlight deviation )• Automatically produced when a situation is unusual or

requires management action

CBIS 12

Scheduled Report Example

Daily Sales Detail Report

Prepared: 08/10/xx

Order#

CustomerID

Sales Rep ID

ShipDate Quantity Item # Amount

P12453 C89321 CAR 08/12/96 144 P1234 $3,214

P12453 C89321 CAR 08/12/96 288 P3214 $5,660

P12453 C03214 GWA 08/13/96 12 P4902 $1,224

P12455 C52313 SAK 08/12/96 24 P4012 $2,448

P12456 C34123 JMW 08J/13/96 144 P3214 $720

CBIS 13

Key Indicator Report Example

Daily Sales Key Indicator Report

ThisMonth

LastMonth

LastYear

Total Orders Month to Date $1,808 $1,694 $1,014

Forecasted Sales for the Month $2,406 $2,224 $2,608

CBIS 14

Demand Report Example

Daily Sales by Sales Rep Summary Report

Prepared: 08/10/xx

Sales Rep ID Amount

CAR $42,345

GWA $38,950

SAK $22,100

JWN $12,350

CBIS 15

Exception Report Example

Daily Sales Exception Report – ORDERS OVER $10,000

Prepared: 08/10/xx

Order#

CustomerID

Sales Rep ID

ShipDate Quantity Item # Amount

P12453 C89321 CAR 08/12/96 144 P1234 $13,214

P12453 C89321 CAR 08/12/96 288 P3214 $15,660

P12453 C03214 GWA 08/13/96 12 P4902 $11,224

… … … … … … …

… … … … … … …

CBIS 16

An Organization’sMIS

FinancialMIS

MarketingMIS

HumanResources

MIS

Etc.

AccountingMIS

Drill down reports

Exception reports

Demand reports

Key-indicator reports

Scheduled reports

Databasesof

externaldata

Databasesof

validtransactions

Transactionprocessing

systems

Businesstransactions

Businesstransactions

ExtranetExtranet

InternetInternet

Etc.

CBIS 17

Decision Making Levels

Operational-levelmanagers involved withdaily decisions

Strategic-level managersinvolved with long-term

decisions

LowHigh

Decision Frequency

Strategic

Tactical

Operational

CBIS 18

Decision Support System

• Decision support system (DSS)– Offer potential to assist in solving both semi-

structured and unstructured problems

CBIS 19

Characteristics of a DSS

• 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

CBIS 20

Components of a DSS

• Model management software (MMS)– Coordinates the use of models in the DSS

• Model base– Provided decision makers with access to a

variety of models( it could be OR technique,)

• Dialogue manager– Allows decision makers to easily access and

manipulate the DSS( has to be user friendly)

CBIS 21

Database Model base

External databaseaccess

Access to theinternet, networks,and other computersystems

Dialogue manager

DBMS MMS

Externaldatabases

CBIS 22

Group Decision Support System

• Group Decision Support System (GDSS)– Contains most of the elements of DSS plus

software to provide effective support in group decision-making settings

CBIS 23

GDSS Alternatives

Local areadecision network

Wide areadecision network

Decisionroom

Teleconferencing

Location of group members

close distant

high

low

Dec

isio

n fr

eque

ncy

Stake holder in meeting room

Use email

CBIS 24

Executive Support System (ESS)

• Characteristics– A specialized DSS that

includes all the hardware, software, data, procedures, and people used to assist senior-level executives within the organization

Board of directors

President

Function areavice presidents

Function areamanagers

CBIS 25

Characteristics of ESS

• Tailored to individual executives• Easy to use• Drill down capabilities• Support the need for external data• Help with situations with high degree of

uncertainty.• Futures orientation (predictions, forecasting)• Linked with value-added business processes

CBIS 26

Expert Systems• Can…

– Explain their reasoning or suggested decisions– Display intelligent behavior– Draw conclusions from complex relationships– Provide portable knowledge

• Expert system shell– A collection of software packages and tools

used to develop expert systems

CBIS 27

Components of anExpert System

• Knowledge base– Stores all relevant information, data, rules, cases, and

relationships used by the expert system• Inference engine(interact with user & based on it seek information)

– 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

CBIS 28

Expert System Logic

• 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(Weather forecasting)

– Application – Washing Machine

• Backward chaining a– 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 Schematic

CBIS 29

Inferenceengine

Explanationfacility

Knowledgebase

acquisitionfacility

Userinterface

Knowledgebase

Experts User

FC or BC

Knowledge must abe acuire..cannot be gain frm books

CBIS 30

TPS, MIS, DSS, ES, & ESS

• Hierarchy:

ESS

DSS/ES

MIS

TPS

Information

Data

Less More Less More

More MoreLess Less

RoutineDecisionsupport

Input &output

Sophistication& complexity of

processing & analysis

CBIS 31

Competitive Edge with Information Systems ?