Business Information Systems

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• Business Information Systems

1. Define and describe the repository components
of business information systems (BIS) Production
Databases, Data Warehouse, Knowledge
Repository 2. Define and describe the BIS
application technologies 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 technologies that are used to
develop applications
LEARNING OBJECTIVES
BISM 4100 Spring 2006 Arjan Raven
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The Business Systems Architecture
External Data Sources
DSS, GDSS

Content Editing Production tools
Search Engines tools
Transaction Processing Systems (TPS)
On-line Analytical Processing (OLAP) Business In
telligence
Data Warehouse
Knowledge Repository
Production Database
Organizational Memory Information System (OMIS)
Data Mining
Collaboration and Coordination tools
Management Information Systems (MIS)
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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
• A database organized and designed specifically to
  support management decision making through
  on-line analytical processing and data mining
• Like production database, a collection of
  pre-specified and highly organized data in a
  relational database.
• Can be slower, performance 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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Definitions(3) Repositories, Continued

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

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Definitions(4) Application Technologies

• 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)
• Ad-hoc
• 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) App. Technologies, Contd

• Organizational Memory Information System
• The collection of repositories and systems that
  together preserve an organizations history, and
  make it available for current and future use
• Data Mining
• You dont 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 Google Alta Vista, Excite, Yahoo!
• New developments natural language processing
  (Ask.com) Dynamically created concept maps,
  semantic webs

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Definitions(6) App. Technologies, Contd

• Content Editing Production tools
• HTML Editors and site management tools
• Dreamweaver, Frontpage, Netscape Composer
• Word Processors, (e.g. Word, Wordperfect)
• Multimedia presentation tools
• Powerpoint, Flash

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Transaction Processing Systems

• Transaction
• Any business-related exchange
• Transaction processing systems (TPS)
• An organized collection of people procedures,
  databases, and devices to record completed
  business transactions
• TPSs process the detailed data necessary to
  update records about fundamental business
  operations of an organization.

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Transaction Processing Systems
Hours Worked
Payroll Transaction Processing
Payroll Checks
Pay Rate

• 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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Example of Source Data Automation
Customer Receipt
MIS
Exception Report
Point-of-Sale TPS
UPC
Inventory
Scanner
Time, date, quantity
Point-of-Sale Transaction Processing System
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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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Management Information System (MIS)

• Predictable information/report needs
• An information system that provides aggregated,
  summarized information to decision makers.
• Input typically is transaction data acquired from
  TPS
• Outputs are standardized, prespecified reports.
  E.g. How many of each product version should be
  produced today?

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Management Information System (MIS)
Marketing MIS
Manufacturing MIS
Common Database
Other MISs
Financial MIS
TPS
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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

• 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
• DSSs are increasingly built on top of data
  warehouses, but can function on much smaller,
  more focused databases

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Conceptual Model of a DSS
Internal Databases
Models Bases
Model Management System
Database Management System
Interface to External sources
External Databases and models
Dialogue Manager
User
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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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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