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CIS 465 - Types of Information Systems (99F) 1
CIS 465 - Types of Information Systems (99F) 1
The mainframes in Dallas consolidate the data each night as part of Frito-Lays internal replenishment system. Requirements for that system changed drastically in the 1980s, and Frito-Lays regional competitors became stronger. Frito-Lay had to be able to respond quickly to a variety of competitive challenges, ranging from price changes to totally new products. Coordination between manufacturing and sales had to be much tighter because the company needed to be able to run local promotions on Thursday for a product that would have to be available on Monday.
The system also used a data warehouse to provide comprehensive, up-to-date data for studying sales by any combination of product, store, and time period. In South Texas, the data from this system showed an unexpected drop in sales of Tostitos tortilla chips. Research into the cause of the drop indicated that a small competitor had launched a white corn tortilla chip. Frito-Lay developed a competitive white corn product within three months and regained market share.
Question:
What type(s) of information systems does the case illustrate?
Debate:
The ability of large firms to build information systems like the one in the case gives them unfair advantages over small firms that lack both the staff and money to build such systems.
The Frito-Lay information system supports a range of communication and decision-making functions typically associated with different types of information systems. It is a transaction processing system because it is used to enter orders from each retailer. It can be considered a management information system or executive information system because it provides information in a readily available form for managements use. It is a decision support system because it supports decision making by helping route drivers, customers, and managers obtain needed information in a genuinely useful form.
Frito-Lay
Customers
Frito-lay Customers Managers and others who use data
Products
Complete and timely information accessible for decisionmaking Convenience and low-cost for salespeople and customers related to ordering and managing inventory
Business Process
Steps: Track customer inventories of Frito-Lay products enter orders Consolidate data about orders and the market Use data for monitoring and decision-making
Frito-Lay
Business Process
Rationale: Use hand-held terminals to collect data during sales calls. Consolidate the information in a system that supports decision making.
Participants
Driver and salespeople Marketing managers
Information
Inventory by product and customer Customer orders sales by product, region, and period
Technology
hand held terminals computers telecommunications networks CIS 465 -Types of Information Systems (99F)
Introduction
We can think of information systems as providing three basic functions: support for decision-making (from computation capabilities) support for communication support for access to information We will explore these concepts in depth over the next few weeks. The concepts are introduced here. Types of information systems will be introduced and we will look at how they affect decisionmaking, communication, and information access.
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9. Modeling
model future economic conditions, prospective products, and the environment where they will operate. Model = simplified representation of a real object or phenomenon knowledge workers manipulate models of reality in order to gain understanding e.g. the spreadsheet e.g. product engineered and tested electronically before a physical prototype is made. CIS 465 -Types of Information Systems (99F) 15
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SECURITY Improve communication: Make sure communications go only to the intended recipients Improve decision making: Make sure decisions are controlled only by those authorized to make the decisions CIS 465 -Types of Information Systems (99F) 18
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Communication
Communication is an interpersonal process of sending and receiving symbols with messages attached to them.
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Source
Transmitter encoder
Channel
Receiver Decoder
Destination
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Social Context
The situation and relationships within which communication takes place.
Social presence Organizational position Relationships Cultural Norms Age Gender The topic being discussed
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Transaction databases World Wide Web Shared Files Electronic Mail Voice Mail Shift Work Communications
EDI Transaction databases Electronic Mail Computer Conferencing Voice Mail Fax Pre-recorded Radio/TV DIFFERENT TIME
DIFFERENT PLACE
SAME TIME
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Having structure reduces the effort required to figure out what the communication means. Even with communication between groups of people, repetitive aspects of communication are systematized.
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Question:
How have the different degrees of social presence in communication, or how have time, place, and direction of communication affected a situation in which you have been involved?
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Classification of IS:
Organizational Levels
Consider the hierarchical nature of organizations. Although many organizations are reengineering themselves and transforming themselves to other structures, the vast number of organizations have a hierarchical structure. Typical information systems that follow organizational levels are: Departmental or functional area Enterprise Information Systems ( e.g. vendors today market enterprise systems - PeopleSoft, SAP). Inter-organizational Systems (e.g. American Airlines Sabre)
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Note in each functional area, there may be basic computerized tasks that essential to the operations of the organization and are routine in nature (e.g. preparing a payroll and billing a customer).
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Support Activities
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Classification of IS:
Support Provided
Another way to classify IS is by the type of support provided regardless of the functional area involved: Transaction Processing Systems (TPS) supporting routine operations central to the mission of the organization. Management Information Systems (MIS) supporting functional managers. Office Automation Systems (OAS) - supporting office workers. Group Support Systems (GSS) - supporting people working in groups
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Classification of IS:
Support Provided
Decision Support Systems (DSS) - supporting managers and analysts. Executive Information Systems (EIS) supporting executives Execution systems - systems that directly support the organizations value-added work (e.g. help sales people sell, doctors practice medicine, architects design, etc.) Intelligent Support system - supporting knowledge workers using Expert systems (ES) and artificial neural networks (ANN)
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Classification of IS:
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Classification of IS:
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Statistical Summaries
Statistical Summaries - summary of raw data collected in TPS. Examples: Daily production weekly absenteeism rate monthly usage of utilities Enhanced with graphics - a picture tells a thousand words.
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Exception Reports
To relieve managers from the informationoverload syndrome, an information system can extract (or highlight) exceptions. Produced only when pre-established out-ofbounds conditions occur E.G. a report that compares expenses to budget, all expense items that exceed the budget by more than 5 per cent are underlined, colored, or separated from the rest. Exception reporting helps managers avoid perusal of incidental figures and concentrate on deviations from the norm. Challenge is to define the exceptions vs. normal.
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Comparative Analysis
Managers like to see performance values and other information compared to their competitors, past performance, or industry standards. Key Performance Indicators and other Critical Success Factors can be calculated from primarily internal information and compared with information external to the organization. These measures are often found in Executive Information Systems.
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Projections
In contrast to operational systems, which have a historical orientation, managerial information systems provide standard projections such as trend analysis, projection of future sales, projection of cash flows, or forecasting of market share. Many projections will look at historical data and factors in key environmental factors and factors (e.g. consumer price index, inflation rate) to predict the future.
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Routine Decisions
Middle managers are involved in many routine decisions. They schedule employees, order materials and parts, and decide what and when to produce. Standard computerized mathematical, statistical, and financial models are available for the execution of these activities.
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EIS - 1
(a)
(b)
(c )
EIS - 2
EIS - 3
MIS for strategic and policy planning and decision making Management Information for tactical planning and decision-making Management Information for operational planning, decision-making and control
EIS
DSS, ES
MIS
TPS
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GDSS Room
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Communication Systems
Helps people work together by sharing information in different forms. Examples: teleconferencing, video conferencing, messaging systems. Sometimes called Computer Mediated Communication Systems (CMC). Sometimes the features are considered part of groupware or office automation systems.
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Expert Systems
Information systems that support the work of professionals in bounded, but complex situations where it is recognized that experts do better than non-experts.
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Information System Examples in Three Functional Areas of Business Sales,Manufacturing, and Finance
OFFICE AUTOMATION SYSTEMS COMMUNICATION SYSTEMS TRANSACTION PROCESSING SYSTEM (TPS) MANAGEMENT INFORMATION SYSTEM (MIS) AND EXECUTIVE INFORMATION SYSTEM (EIS) DECISION SUPPORT SYSTEM (DDS) EXECUTION SYSTEM
Transferable Features of IS
OFFICE AUTOMATION SYSTEMS
Transferable features: Multiple forms of information, sometimes used in combination Immediacy and interactivity of communication Avoidance of unproductive work
COMMUNICATION SYSTEMS
Transferable features: Emphasis on communication in addition to data processing Consideration of social presence and other communication characteristics when building systems Recognition of the need to handle different combinations of same or different time or place Sharing information betwween different people working on different parts of a task Controlling work flows and approval loops within a group Incorporating efficient methods of scheduling meetings
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Transferable Features of IS - 2
MANAGEMENT AND EXECUTICE INFORMATION SYSTEMS
Transferable features: Emphasis on measures of performance Use of standard formats and measures by people in different departments User friendly interface User friendly methods for analyzing data
EXECUTION SYSTEM
Transferable features: Integrating computerized systems into doing the organizations value added work Bringing knowledge in active form to people doing the work
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