Week 2 Flashcards
Information Systems
A business function that covers the application of people, technologies and procedures to solve business problems
What are the three layers of information systems
Executive Information Systems (EIS
Management Information Systems (MIS) & Decision Support Systems (DSS)
Transaction Processing Systems (TPS)
What is the lowest layer of information system?
Transaction Processing System (TPS)
What is the middle layer of information system
Management Information Systems (MIS) & Decision Support Systems (DSS)
What is the top layer of information system
Executive Information Systems (EIS)
How are information systems classified?
Types of decisions supported
Levels of users
Data input
Executive Information Systems (EIS)
Top Layer
Specialised Decision Support System
Highest Level
Support high level managers in making strategic decisions
Uses visualisation
Digital dashboard
Does not automate decisions (requires human insight and evaluation)
What type of strategic decisions EIS supports?
Unstructured and complex
Long Term
Non-Routine
EIS uses complex models to discover…?
Patterns and complex relationships
EIS Data sources
Transaction Processing Systems
Data from external sources (competitors market)
Management Information System (MIS)
Second layer
Produces routine reports based on data captured by TPS
Supports several functional areas
Assist short term forecasting and assist middle level managers in making tactical decisions
Decision Support System (DSS)
Second Layer
Produces special reports based on ad hoc queries
Can utilize external data sources for analytical reporting
Assist short term forecasting and assist middle level managers in making tactical decisions
Transaction Processing System
Basic business system that supports operational tasks
Responsible for transactional information
(collect, update, delete, store) transaction information
involves one or more databases
LIFEBLOOD
Transactional Information
All information contained within a single business process or unit of work
i.e. withdrawing cash from ATM
making an online reservation
What are well known in a transaction for TPS
Input & Outputs
Well defined business rules
How many TPS does an organisation have?
Multiple
Decision: TPS
Structured (repetitive and routine with specific rules and well defined structures)
Decision: MIS/DSS
Semi structured
Decision: EIS
Unstructured
Users: TPS
Operational managers
Users: MIS/ DSS
Middle Managers
Users: EIS
Top Managers
Data sources: TPS
End Users
Data sources: MIS/DSS
TPS Databases
Data sources: EIS
TPS databases and external sources
Enterprise Resource Planning
Integrates all departments and functions throughout an organization into a single IT system
Employees can make enterprise - wide decisions by viewing enterprise wide information
Purpose of ERP
eliminate manual entry for multiple systems
allow sharing of information across databases
increase quality of information
What is at the heart of all ERP systems
A database that collects information from and feeds information into all the ERP systems individual application components/ modules
Core ERP Components
Accounting & Finance -> manage accounting data i.e accounts payable
Production and materials management -> production planning and forecasting
Human Resources -> track employess information
Extended ERP components
Business intelligence
Supply chain management
Customer relationship management
E business
ERP Approaches
On premise
Cloud
ERP: On Premise Approach
Resources are internally hosted and maintained by user organisations
Hard to intergrate
Expensive to implement and maintain
Requires continuous upgrades
ERP: Cloud Approach
Resources hosted on a third party vendor managed and controlled infrastructure
No need to worry about system upgrade and maintenance
Less hardware investment
Requires continuous upgrades
Cloud Computing
Any subscription based or pay per use service in real time over the internet that extends IT’s existing capabalities
Key Characteristics of Cloud Computing
On demand self service (minimal human interaction)
Broad network access (access through thick/thin client platforms)
Resource pooling (storage, bandwidth)
Rapid elasticity
Measured service (resources monitored and controlled)
Cloud Computing Service Models
Software as Service (SaaS)
Platform as a Service (PaaS)
Infrastructure as a Service (IaaS)
Software as Service (SaaS)
Cloud vendor manages applications and infrastructure
Client uses applications running on vendors cloud i.e. Google Docs
Platform as Service (PaaS)
Clients receive capability to deploy own applications onto cloud infrastructure maintained by cloud vendor
Infrastructure as Service (IaaS)
Client companies can customise and modify applications
Cloud Computing Deployment Models
Public
Private
Hybrid
Public Cloud
General public
Owned and managed by 3rd party
I.e Amazon, Microsoft Azure,
(pay per use
Private Cloud
Exclusively for a single organisation
Owned and managed by organisation or third party or any such combination
can be on or off premise
Hybrid Cloud
Composition of two or more distinct cloud infrastructure (private, public)
Cloud ERP
Vendor manage IT platform and ERP software
Either public or private cloud (operated by service provider)
Cloud ERP Benefits
Reduced ERP cost and better support
Enhanced system speed and performance
More effective system upgrade and enhancement
Enhanced ERP mobility
Cloud ERP Risks
Cloud transparency and data privacy
Data security
Vendor lock in
Integration to other IS applications
Business Intelligence
Systems that provide decision makers with valuable information and knowledge by leveraging a variety of data sources and structure and unstructured knowledge
Supported by BI solutions that uses BI tools to provide valuable information and knowledge
Product of the process (BI)
Information useful to organisations to formulate knowledge or enable decision
The Process (BI)
through which an organisation obtains analysis and distributes information and knowledge
Knowledge Management
A BI technology
Focuses on creating, sharing and applying knowledge
Emphasizes on explicit and tacit knowledge
Explicit Knowledge
Knowledge that is recognized and articulated in some form
Tacit Knowledge
Knowledge that is difficult to articulate and formalise including insights and intuitions and hunches (
Knowledge Discovery BI vs KM
Potential overlap of knowledge discovery between BI and KM
BI is data focussed, Knowledge Management is not
Data warehouse (DW)
Data warehouse a single local repository for an organisations data obtained from multiple operational systems using tools to transform or load data
Characteristics of Data Warehouse
Subject - oriented -> depends on type of company
Intergrated -> Where data is fed into one DW from multiple sources
Non - volatile - > DW must be loaded as a snapshot of the operational databases
Time-variant, each unit of data is stamped with a date and record
Data mining
It refers to the process of discovering hidden patterns from data stored in electronic form (from data warehouse( using different data mining techniques
Clustering Analysis
Divides information into mutually exclusive groups with common patterns / characteristics
Association detection
It reveals the degree to which variables are related and the nature and frequency of these relationships in the information -> Market basket analysis
Market Basket Analysis
Items are purchased and analysed to uncover patterns and relationships between items bought together
Factors Driving Business Intelligence
Exploding data volumes due to huge data collections
Increased complicated decisions -> .increased competitions, multiple industries
Need for quick reflexes -> increased pace of change in different market domains; information access must be quick to be able to support decision
