Test Three Study Guide
Test Three Study Guide MGT 3180
Popular in Management of Information Systems
Popular in Business, management
This 7 page Study Guide was uploaded by jj on Sunday December 6, 2015. The Study Guide belongs to MGT 3180 at Clemson University taught by Dr. Raman in Spring 2015. Since its upload, it has received 54 views. For similar materials see Management of Information Systems in Business, management at Clemson University.
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Date Created: 12/06/15
Key Types of Decision Making in Business - Most Narrow: Strategic - Middle: Managerial - Most Broad: Operational Transaction Processing Systems - An organized collection of people, procedures, software, databases, and devices used to record completed business transactions - Transactions: any business related exchange. Examples: payment to employees, sales to customers - Key Function: collects, stores, modifies and retrieves the transactions of an organization. Speeds business activities, reduces clerical costs - A payroll Transaction Processing System: Hours Worked & Pay Rate Payroll Transaction Processing Payroll Checks Transaction Processing Systems: ACID Properties -Atomicity: In a transaction involving two or more discrete pieces of information, either all of the pieces are committed or none are - Consistency: a transaction either creates a new and valid state of data, or, if any failure occurs, returns all data to its state before the transaction was started. - Isolation: A transaction in process and not yet committed must remain isolated from any other transaction. - Durability: committed data is saved by the system such that, even in the event of a failure and system restart, the data is available in its correct state. *** These are the 4 primary attributes that are ensured to any transaction by a transaction processing system (TPS). In order to qualify as a TPS, the system must have the above four properties. *** Enterprise Systems: Transaction Processing Systems & Enterprise Resource Planning - A set of integrated programs that manages the vital business operations for an entire multisite, global organization - One unified set of programs replaces many separate applications - The resulting system is: easier to use and more effective - Example: hospital systems process medication administration, physician orders Management Information Systems - An organized collection of people, procedures, software, databases, and devices that provides routine information to managers and decision makers - Key Functions: Primary focus of MIS is operational efficiency: “doing things right” Uses data sorted in transaction processing system to provide information to managers (ex. Reports). Examples: payroll summary reports, useful for accounting managers, production managers Decision Support Systems - An organized collection of people, procedures, software, databases, and devices used to support problem specific decision making - Key Functions: Focus of a DSS is on decision-making effectiveness: “doing the right thing” Example: hospital DSS allows trends analysis to identify best practices for managing patient care Why Decision Support System? - People need to analyze large amounts of information - People must make decisions quickly - People must apply sophisticated analysis techniques, such as modeling and forecasting, to make good decisions - People must protect the corporate asset of an organization’s information Key Functions of Decision Support Systems - Sensitivity Analysis: What impact do small changes in one (or more) parts of the model have on other parts of the model? - What- if Analysis: If I change the assumptions in my model (different scenario), what impact would that have on the proposed solution? - Goal- seeking Analysis: What inputs are necessary to achieve a target goal, such as a desired level of output? TPS vs. MIS & DSS - TPS Operational Keeps track of routine transactions Collects, stores and maintains data Common database containing organizational data is produced as output - MIS & DSS Managerial Helps with decision making and problem solving Uses data collected and stored by TPS, to generate information Common database containing organizational data is used as input. DSS vs. MIS - DSS Real time help with problem solving Interactive: managers can ask different questions and obtain answers from the system as needed (ex. By doing “what if” analysis) Dynamic: the information provided changes according to the problem you are facing - MIS Routine periodic reports regardless of when managers needs the info Non-Interactive: managers can only get pre-printed reports at pre- determined intervals of time, regardless of what specific questions they may have at a particular point in time. CANNOT DO “what-if” ANALYSIS Static: pre-set pieces of info are provided in the report regardless of need Executive Information Systems (EIS) - Specialized DSS that supports senior-level executives in decision making - Provides executives with easy access to internal and external information that is relevant to their critical success factors - Key difference from DSS: Typically contains data from external sources as well as from internal sources - Digital Dashboard: integrates information from multiple components and tailors the information to individual preferences What EIS Offer - Tailored to individual executive users - Extract, filter, compress, and track critical data - Provide online status access, exception reporting, and drilldown (access detail or data that underlie summarized data) - User-friendly and require little or no training to use - Present graphical, tabular, and/or textual information The Nature of Executives’ Work - Have a demanding work load, work at unrelenting pace, and are frequently interrupted throughout the work day - Spend much of their time developing managerial agendas - Develop networks of contacts inside and outside of the organizations - Are constantly scanning the environment for problems and opportunities - Prefer verbal communications because of their richness and currency. Why Executives are Difficult to Support - May have only limited computer skills - Little time for discussing information needs - Little time for training - Other established methods for obtaining information - Information requirements that are diverse and difficult to satisfy Key Analytical Capabilities offered by EIS - Consolidation: aggregation of information and simple roll-ups to complex groupings of information. Computing all of the data relationships for one or more dimensions - Drill- Down: details, and details of details, of information (opposite of consolidation). Navigating among levels of data ranging from the most summarized (up) to the most detailed (down) - Slice-and-dice: looking at information from different perspectives EIS: One Application of “Pervasive BI” - Bringing BI to the masses - Allows employees, suppliers, customers, and regulators to easily access and analyze data, reports, and metrics - In most organizations, only 20-30% of the employees use BI - The reason- tools are too complex to use, too expensive to install and maintain, and require too much training - One solution is offered by EasyAsk Database - A database is an organized collection of data, which should help an organization to achieve its goals. - Provide managers and decision- makers with timely, accurate and relevant information based on data - Help to generate information to reduce costs, increase profits, identify business opportunities, etc. - Key Management Issues: Data security Data quality Data accuracy Database Management System (DBMS) - A group of programs that do the following: Manipulate the database Provide an interface between the database and its users Provide an interface between the database and other application programs that tap into the database for data Database Environments - Database+ DBMS+ the application programs that use the data = DATABASE ENVIORNMENT The hierarchy of data: how data is organized in a database - Bits (binary digit): [0 or 1] binary digits represent that the circuit is either on or off. 8 bits together make a byte. - Characters (Bytes) collection of bits. Letter F is ASCII - Fields characters put together. Last name field. This is the column. - Records represent a single entity. Records containing SSN, last and first name, hire date. Rows. - Files multiple rows (records). Personnel file - Database multiple files together. Project database DIGITAL WORLD REAL WORLD Database Multiple Entity Classes Data Files Entity Class Records Entity (real world object, person, place capturing data) Fields Attribute, property or characteristic Bytes Character *** All students Data files Individual students’ records Year Fields College names Database*** Data Entities, Attributes, and Keys - Primary Key: a particular key field or set of fields that uniquely identifies the record. Example: employee number NOT ALL ‘key fields’ are ‘primary key fields’ Attributes (fields) Entities (records) - The key field is the employee number. The attributes include last name, first name, hire date, and department number. - Value of Key fields: can find information when you do not know the primary key field. Key fields are often public knowledge that can be used to search for records. Primary key fields aren’t as well known to the public, while they are more efficient to pull out information. Two approaches to Data Management - The traditional Approach to Data management An approach to data management, where separate data files are created and stored for each application program Example, payroll file for payroll processing application program, invoicing file for invoicing application program and so on - The database approach to data management Multiple application programs share a common pool of related data, instead of each application program using a separate data file Offers the ability to share data and information resources Greater cross- talk between different application programs. Traditional Approach to Data Management - Advantages Efficient Tailored to each department Less consequences for mistakes Errors are localized - Disadvantages Non-interoperable across organization Error Prone: manual entries across departments Does not support cross-departmental or organization wide insights The database approach to data management - Disadvantages of traditional approach are advantages for this file - Improved strategic use of corporate data, reduced data redundancy, improved data integrity, easier modification and updating, data and program independence, better access to data and information, standardization of data access, a framework for program development, better overall protection of the data, shared data and information resources ADVANTAGES - Data files are linked to each other and stored in common structure called database. - All the different programs are able to access the entire database. - More venerable to hackers, errors are not as contained (can spread to the entire database and corrupt it), more expensive, more difficult to use DISADVANTAGES - Special programs developed called database management systems help to manage the database so it will not be corrupt Building a Database: INTRODUCTION - Key factors to consider BEFORE building a database: Content: what data should be collected and at what cost? Access: what data should be provided to which users and when? Logical structure: how should data be arranged so that it makes sense to a given user? Physical organization: where should data be physically located? - Two types of design of database: Logical Design Physical Design - Data Modeling: a process for designing databases Data Models: a tool for designing databases - The relational database model: one type of database ER Diagram: An Example - Database Approach: Database ER diagram (logical Design of the database) - Development of ER diagrams helps ensure that the logical structure of application programs is consistent with the data relationships in the database. - One to many relationship “crow’s foot” - Many to One - One to one ER Diagram Database Real World -Box -Data File -Entity Class -Relationships - Connections between Data -Interaction of Files in Database entity class Relational Database Model: Key Facts - Data elements placed in 2-D tables Row: data entity or record Column: attribute (field) of the data entity Domain: range of allowable values for each field - Key feature: tables are linked that is, they share at least one common attribute (column) - Manipulating Data is a Relational Database: Selecting (manipulating rows): eliminating rows according to certain criteria Projecting (manipulating columns): eliminating columns according to certain criteria Joining ( manipulating tables): combing two or more tables to create a new table - In the relational model, all data elements are placed in two- dimensional tables, or relations. As long as they share at least one common element, these relations can be linked to output useful information. Note that some organizations might use employee number instead of social security number in data tables 2 and 3.