Today’s Goals

Concepts I want you to understand the difference

between Data Information Knowledge Intelligence

Today’s Goals

Concepts I want you to understand the difference

between Accuracy Precision Reliability as they pertain to data and information

Today’s Goals

Learn about System concepts and modeling information system concepts Importance of feedback in streamlining

systems Importance of people in Information

Systems

Chapter 1 Highlights What exactly are these things

– a management information system (MIS)– a database management system (DBMS)– a transaction processing system (TPS)– a workflow system– an enterprise resource planning system

(ERP)– a decision support system (DSS)– an expert system

Data vs. Information

Data: raw facts

Information: collection of facts organized in such a way that they have value beyond the facts themselves

Data vs. Information

Excel example

Knowledge Awareness of information Understanding information enough to

perform a task or make a decision.

Intelligence While knowledge can help you complete a

task or make a decision, Intelligence helps you figure out – which tasks to complete or – which decisions you should be making.– which questions you should be asking.

For example, – you might NOT know how to write a SQL

subtraction query (i.e., you lack knowledge of SQL)

– but you know the type of task that should be done to streamline your processing.

What comes first? Some people are incredibly knowledgeable

in certain areas and seem to make intelligent decisions in a familiar system. Is this really intelligence?

Some people are incredibly intelligent but lack the necessary knowledge to operate in an unfamiliar system?

Does intelligence derive from knowledge or vice versa?

What do you think?

Characteristics of Valuable Data

Accurate – how close are you to being correct, truthful

Complete – anything missing? Economical – how much does this

data cost? Flexible – data serves a variety of

purposes Reliable – How is this different than

accurate?

Characteristics of Valuable Data

Simple – will the data be overwhelming?

Timely – will I get it in time? Verifiable – how do I know its

accurate? Accessible – here is where the

WWW comes in? Secure – protect data from the bad

guys.

VS.

Accuracy vs. Reliability vs. Precision Q: How much inventory do we have? Truth: $55,730.57 worth.

– A1: Between $55,000 and $56,000 worth– A2: $53,945.89 worth

Reliability Two different aspects. How often is the data accurate? How often is accurate data available? A source of data could be unreliable

– because it is occasionally wrong, or – because it is occassionally unavailable.

Systems

Systems

Information System Just like any system but Information is the Input and Output.

System Characteristics

Improve your technical vocabulary Simple Complex Open Closed Stable Dynamic Adaptive Non-adaptive (static) Permanent Temporary

Effectiveness Measure of how much a system met

its goals. System Performance Standards

Feedback Feedback might be the most crucial

component of an Information System What is feedback exactly?

Feedback Output used to make changes to the

input and processing components. Sometimes, feedback can even tell

you that your Information System is failing and should be massively re-engineered.

People Modern computer-based Information

Systems consist of Hardware, Software, Databases, Networks, and People!– Duh, right?

Not so intuitive is the fact that People are the most important component.

Because of the Intelligence Feedback connection.

Mass Mailing Old System

18,000 Names & Address (XLS)Emailed from

Alumni assoc.

18,000 Formatted Labels (DOC)

Import & Mail merged

18,000 Label Stickers (Paper)

Printing $250/year maintenance$1600 printer

17,000 Letters (Paper)

Prune 1000 labelsExclude list100+ hours of labor

$0.80 per letter

Mass Mailing Current System

18,000 Names & Address (XLS)Emailed from

Alumni assoc.

Alumni List18,000 DB entries

Import into Access

Exclude List1,000 DB entries

Updated as we get back hate mail

17,000 DB entries

SQL Subtraction QueryExported & Sent directly to Mailing House ($0.60 per letter)

Mass Mailing New System

17,000 Names & Address (XLS)

Emailed from Alumni assoc.

Exclude List1,000 DB entries

Continuous Feedback to Alumni Assoc.

Excel file sent direct to mailing house.

Information Systems What are the differences between these

things:– a database management system (DBMS)– a transaction processing system (TPS)– a workflow system– a management information system (MIS)– an enterprise resource planning system (ERP)– a decision support system (DSS)– an expert system

DBMS Organizes your data. Handles implementation issues

– How will the data be stored?– How will the data be structured?– How will the data be connected

(relationships) Examples: Access, Oracle Main goal: Storage of Data

TPS Paper Digital Manual Automated Handles implementation issues

– How will transactions be recorded?– How often?– Who is involved?

Main goal: Capturing Data May have a DBMS inside.

Workflow Systems Integrates TPS data to help stream-

line or improve tasks or processes. Helps with organizational issues

– Can two tasks be combined?– Is a task even necessary?– How can steps be simplified?

Main goal: Streamlining Tasks or Processes

MIS Provides information (not data) to managers Helps with decisions

– Who is our best customer?– What is our greatest expense?– Are we making a profit?

Main goal: Transforming data to information, i.e., reporting.

MIS systems are often feed data through TPS and DBMS systems

Example: Banner.

ERP Companies might have separate MIS

systems for different operational divisions– (payroll, shipping, R&D, etc.)

ERP systems seek to combine all of these systems into managerial super-system.– Enterprise implies a huge multi-site, global

organization. Main goal: Streamlining workflow for a

whole company and integrating data from all business operations.

Example: PeopleSoft,

DSS Similar to an ERP, i.e., information

from different operational divisions is integrated.

DSS However, unlike ERP, DSS includes a

collection of models used to support decision making, i.e., models of the best business practices.

Managers often play a role in developing DSS to customize it to a particular enterprise.

MIS and ERP system provide information to help managers “do things the right way”

DSS system help managers “do the right thing.”

Expert Systems Use artificial intelligence and machine

learning to help make decisions automatically.

Unlike DSS, expert systems try to remove human decision making by building “intelligence” into the system.

DSS systems merely provide information about different alternative so that a human can make the final decision.

MISHow is data

transformed into information

DBMSHow is data

stored

TSPHow is data

captured

Workflow SystemIs there a better way to

capture, store, and transform data

feedback

data

MIS

DBMS TSPMIS

DBMS TSP

MIS

DBMS TSP

ERP