© arjan raven and duane truex1 business information systems learning objectives 1.define and...
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© 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
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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
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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.
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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
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• External Data Sources • Databases and knowledge repositories. • Proprietary (paid)• Public (free)
Definitions(3): Repositories, Continued
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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…)
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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
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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
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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
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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
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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.
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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
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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
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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
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Management Information System (MIS)
Common Database
TPS
Financial MIS
Other MISs
Marketing MIS
ManufacturingMIS
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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...
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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
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Decision Support Systems
• 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.
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Decision Support Systems
• 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
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Conceptual Model of a DSS
Dialogue Manager
User
ExternalDatabases
and models
ModelsBases
Internal Databases
ModelManagement
System
Database Management
System
Interfaceto
Externalsources
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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
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Components of Expert Systems
Subject DomainExperts
User
User Interface
Knowledge Acquisition
System
SubjectKnowledge
Base
User Interface and
Explanation facility
Inference Engine
Human
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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
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End of Business Information Systems