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Lecture 3

Information Systems types

Chaffey, chapter 6 (not from the beginning, p237- 277)

Bob Ritchie, see 12 week schedule

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Agenda

• What is BIS?

• Types of systems: TPS, DSS, EIS, OAS

• Brief history…

• Discussions about Test 1

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Definition of BIS• “A business information system is a group

of interrelated components that work collectively to carry out input, processing, output, storage and control actions in order to convert data into information products that can be used to support forecasting, planning, control, coordination, decision making and operational activities in an organisation ” – Chaffey, p43

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Types of systems

office automation systems (OAS)

communication systems (Comms)

transaction processing systems (TPS)

management information systems (MIS)

executive information systems (EIS)

decision support systems (DSS)

groupware systems

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The hierarchical pyramid

Strategic

Tactical

Operational

Senior Management

Middle Management

“ShopFloor”

EIS

DSS

TPS/PCS

OAS

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Strategic

Tactical

Operational

Strategic Planning

Budgetary controlSales analysis

Production policyCapacity planning

Payroll InventorySales Ledger

Production and Delivery control

Levels of systems use

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• The use of Executive Information Systems, video film

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Transaction Processing Systems (TPS)

• Support tools for all tasks involved in day-to day running of the business

• Manage the frequent external and internal transactions such as:–Orders for products and services –Supply and delivery of goods to

customers–Payment for goods or services

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TPS• Vital to organisations

–If it fails it becomes apparent to the customers

• Main components: –Data entry: keyed in to data entry

forms, or a bar code reader–Storage and retrieval: database–Reports–Queries.

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TPS

• Two main types of Transaction systems:

–Batch systems

–Real time systems

• Batch systems: data is processed overnight

• Real time systems process data immediately

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Reading:

• Sainsbury’s TPS case study

• Chaffey, page 240, chapter 6

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Office automation systems (OAS)

• General purpose software that provides administrative support tools

• Word Processing

• Spreadsheets

• Databases

• Presentation tools

• Desktop and web-publishing tools

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3 critical roles for OAS

• Chaffey, chapter 6

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Decision Support Systems (DSS)Provide information and models to facilitate

tactical decision makingInvolve structured, semi-structured and

unstructured decisionsExamples: share dealing and investment Market analysisBudgeting exercises: linking of sales and

production budgets and modelling of the effect on short term cash flow and long term profitability

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• An Excel Spreadsheet as an example of a DSS

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DSS’s componentsDialogue

Interaction with a userSimplicity and flexibility

DataWide range of sources

ModelE.g. financial model can predict the

future profitability for given inputs

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DSSAnalysis Techniques:

What-if? Analysis

Sensitivity Analysis

Goal-seeking analysis

Optimisation analysis and simulation

Data mining

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Executive Information Systems (EIS)

Tools for senior managementSupports strategic decision making (long-

term plans)Linked to operational systems, external

databases and data warehousesCan involve aspects of ‘expert systems’Presentation of summarised data &

information in graphical format

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Data Warehouses, Data mining!• You are to take notes here

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Brief history• Prior to 1965 it was very expensive to build

large scale IS• Late 1960s- early development of DSS• 1970s – theory development• Early and mid 1980s – implementation of

financial planning systems and group DSS• 1981 – first international conference on DSS

in Atlanta, Gergia• 1978 – early development of EIS• 1990 – data warehousing and On-line

Analytical Processing (OLAP)

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TEST 1- What?? When? Where?

• Date: • Time: • Venue:

– See assessment schedule

• DURATION 1hour & 15 min!!!• What is covered??• - • -

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How to prepare best???• Do NOT just passively read Chaffey…

• MAKE NOTES: mental maps, etc

• Jot down questions before you start reading – “read with an agenda in mind”

• Create a question bank (individually)– lots of short & sharp questions (then compare with your group mates)

• Practice writing down answers to those questions

• Pay attention to all practical exercises done in tutorials