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ISPP Chapter 7

Organisational Information Systems and Business Intelligence

Business Intelligence (BI) use of information systems to gather and analyse information from internal and external sources in order to help improve the business strategy. Used to monitor and control processes from disconnected reports, databases and spreadsheets.
5 Threats indicated by Business Intelligence • Unstable markets • Global Threats • Fierce Competition • Shorter product life cycles • Wider choice for consumers
Continuous Planning (Figure 7.3) Instigated to monitor and analyse business processes and make adjustments as necessary.
3 Levels where Decision Making Occurs (Figure 7.4) • Executive • Managerial • Operational
Operational Level Includes day-to-day processes and interactions with customers, where IS are used to implement repetitive tasks.
Structured Decisions Operational level decision making includes structured decisions which are specific situations usually placed in advance such as ordering supplies
Managerial Level involves mid-level managers monitoring and controlling operation level processes. They provide information to executives and mainly focus on effectively utilizing and deploying resources to achieve the business goal.
Semi-structured Decisions Not necessarily clear-cut and make take time to implement and are mainly based on expertise, judgment and perhaps experience.
Executive Level Focuses on the long-term problems and situations for the business
Unstructured Decisions are based on complex and problems that do not come up routinely, hence their long term ramifications. They monitor across the organisation using Key Performance Indicators (KPI's) and make compare this against their competitors.
Transaction Processing Systems (TPS)(Figure 7.8) An operational level IS dealing with transactions such as groceries, payroll, product purchasing etc. It’s based on the Input-Process-Output model.
Online Processing vs Batch Processing Online processing has immediate results, while batch processing has transactions collected immediately and processed later.
Information and Knowledge Discovery Search for hidden relationships (extracting information from data) and test hypotheses against the data to find those relationships
3 Ways Information Can Be Entered Into TPS (Table 7.2) • Manual • Semi-automated • Automated
Online Analytical Processing (OLAP) the process of conducting complex, multidimensional analysis of data in databases that is optimized for viewing using graphical software such as sales numbers and outputting them onto a graph etc.
Slicing and Dicing Allows for analysing subsets of the dimensions that is visualised in an OLAP cube.
Data, Text and Web Mining (Figure 7.13) Allow for correlation and clustering, which groups together customers with similar attributes when using a product or service to aid in marketing strategies.
Management Information Systems (MIS) (Figure 7.14) A mangagerial level that produces reports and support management of organizational processes at that level of the business such as inventory management and planning, advertising and product pricing, sales forecasting etc.
Executive Information Systems (EIS) (Figure 7.16) aids in executive decision making and are mainly used for long term planning and monitoring of internal and external events and resources. They can provide hard data such as facts and figures and soft data such as news stories.
Decision Support Systems (DSS) (Figure 7.17 Special IS to for solving a particular recurring problem. It is usually used at the managerial level to conduct analysis in areas such as financing and sales forecasting.
Functional Area Information Systems (FAIS) Cross organisation IS to support businesses in a specific functional area such as marketing, accounting etc.
Collaboration Systems and Technologies Used by flexible teams that can cover a wide range of areas and virtual teams
Groupware (Figure 7.19) Software that enables people to work together effectively either asynchronously or synchronously.
7 Benefits of Groupware • Process Structuring (keep people on same agenda) • Allows for more to speak and listen at once • Group Size • Group memory • Access to external information • Spanning time and space • Anonymity
Electronic Meeting System, Videoconferencing and Desktop Videoconferencing Generations of systems to be able to meet with each other without being in the same location. Now evolved to using video and audio to talk to each other.
Intelligent Systems Simulate human intelligence through IS and in some cases enhances human capabilities beyond the human body. Artificial intelligence is a product of this
Expert Systems (Figure 7.25) A specific intelligent system that provides information based on a situation feed into. It is encoded with rules which dictate an ‘if-then’ format for those situations and presents a possible solution based on those rules for that situation
Neural Networks Attempts to approximate human brain functioning
Intelligent Agent Systems A bot program working in the background that provides service when specific events occur
Knowledge Management Systems (KMS) A collection of systems that generate value from its knowledge assets
6 Benefits of Knowledge-based systems • Enhanced innovation and security • Improved customer service • Shorter product development • Streamlined operations • Enhanced employee retention • Improved organisational performance
4 Challenges for Knowledge-based systems • Getting employee buy-in • Too much technology focus • Forgetting the goal • Dealing with knowledge overload and obsolescence
Information Visualisation • Digital Dashboards • Geographic IS (GIS)
Created by: coeezy