REVIEW FOR EXAM 3Information Systems For Decision-MakingThe Decision-Making ProcessIntelligence PhaseDesign PhaseChoice PhaseDecision Support SystemsModeling Tools and TechniquesGroups Decision Support SystemsExecutive Information SystemsSlide 11KWS. Expert SystemsExpert Systems ComponentsSummary QuestionsReview QuestionsInformation Systems For Business IntegrationBusiness Integration?Systems for Horizontal IntegrationIntegrating Internal Processes with ERPVertical Integration with suppliersSystems for Vertical IntegrationElectronic Data Interchange (EDI)Slide 23Vertical Integration with customersSlide 25Slide 26Slide 27Managing the Development and Purchase of ISTraditional Systems Development Life Cycle (SDLC)SDLC: RecapSlide 31Managing SecuritySlide 33Slide 341REVIEW FOR EXAM 3BUS3500 - Abdou Illia, Spring 20072Information Systems For Decision-MakingPart 13The Decision-Making ProcessSimon’s model of the decision-making processIntelligenceDesignChoice4Intelligence PhaseScan the environment for a problem.Determine if decision-maker can solve the problem.Within scope of influenceFully define the problem by gathering more information about the problem.Scan Environment forproblem to be solvedor decision to be madeData sourceMISProblem ?ENDProblem within scope of influence?NoYesENDNoGather more informationabout the problemInternal & External data5Design PhaseDevelop a model of the problem.Determine type of model.Verify model.Develop and analyze potential solutions.Develop a model ofproblem to be solvedVerify that the model is accurateDevelop potentialsolutions6Choice PhaseSelect the solution to implement.More detailed analysis of selected solutions might be needed.Verify initial conditions.Analyze proposed solution against real-world constraints.7Decision Support SystemsDesigned to help individual managers make decisionsMajor componentsData management subsystemInternal and external data sourcesModel management subsystemTypically mathematical in natureUser interfaceHow the people interact with the DSSData visualization is the keyTextGraphsChartsUserInterfaceModel Management- Sensitivity Analysis -> What-if Analysis -> Goal-seeking AnalysisData Management- Transactional Data- Data warehouse- Business partners data- Economic data8Modeling Tools and TechniquesSimulationUsed to examine proposed solutions and their impactSensitivity analysisDetermine how changes in one part of the model influence other parts of the modelWhat-if analysisManipulate variables to see what would happen in given scenariosGoal-seeking analysisWork backward from desired outcomeDetermine monthly payment given various interest rates.Works backward from a given monthly payment to determine various loans that would give that payment.9Groups Decision Support SystemsDSS designed to help groups make decisions with the help of a Group FacilitatorGDSS Tools:Brainstorming tools: Allow users enter ideas simultaneously & anonymouslyCommenter tools: Allow users to anonymously comment on others’ ideasCategorizing tools: Groups ideas into categoriesIdea-ranking tools: Ranks ideas. Identify the best ones.Electronic-voting tools: Allow users to vote for their favorite ideas.GDSS toolsFront Screen10Executive Information SystemsComputer-based tool that specifically helps top-level management make strategic decisionsProcesses both internal and external dataPresents data in summary formDrill-down is a key feature – gives the manager the ability to see more details when needed1112KWS. Expert SystemsAI systems that codify human expertise in a computer systemMain goal is to transfer knowledge from one person to anotherWide range of subject areasMedical diagnosisComputer purchasingKnowledge engineer elicits the expertise from the expert and encodes it in the expert system13Expert Systems ComponentsKnowledge base: database of the expertise, often in IF THEN rules. Inference engine: derives recommendations from knowledge base and problem-specific data User interface: controls the dialog between the user and the system Explanation system: Explain the how and why of recommendationsKnowledgebaseDomain ExpertKnowledge EngineerExpertiseExplanationSystemInferenceEngineUserInterfaceUserSystem EngineerEncoded expertiseIFfamily is albatross ANDcolor is whiteTHENbird is laysan albatross.IFfamily is albatross ANDcolor is darkTHENbird is black footed albatrossExample of rules14Summary QuestionsMalaga Notes1) What are the steps of a decision making process according to the Simon’s model? Explain each step.6-92) (a) What are the major components in a DSS? (b) What is the function of each?103) (a) What is the difference between a DSS and a GDSS? What is a Group facilitator? What are the main tools used in a GDSS to help users reach a decision?10,124) What is an EIS? What is the difference between a DSS and an EIS?145) What is an Expert System? What are the main components of an Expert system? What is a knowledge engineer?16Note: the numbers refer to the slide numbers in the Powerpoint class notes, NOT in these review notes.15Review QuestionsMake sure you can answer the questions in Chapter 8 Exercise available in the Notes’ section of the course web site.Direct link: Chapter 8 Exercise.16Information Systems For Business IntegrationPart 217Business Integration?SalesDepartmentLogisticsDepartmentProductionDepartmentHorizontalIntegrationVerticalIntegrationSuppliersCustomers18Systems for Horizontal IntegrationEnterprise Resource Planning (ERP) systemsintegrate all the internal processes through a common information systemERP systemSalesDepartmentLogisticsDepartmentProductionDepartmentWarehousingMarketingDepartmentAccountingDepartmentCommonDatabaseProcess1 Process2Process1 Process2Process1 Process2 Process1 Process2Process1 Process2Process1 Process219Integrating Internal Processeswith ERPERP systems integrate all the functions and departments within an organization through a common information systemMost common modules for an ERP systemFinanceManufacturing: helps from product development to productionHuman resources: Handles all HR functionsProcurement: helps manage the purchase of office supply & raw materialMarketing: manage relationship with customersERP mainly used by medium and large businessesAverage lifetime cost: $15 Million