Business Information Systems



Transaction processing systems
A transaction is a record of an event that signifies a business exchange
A transaction processing system is a basic business system that support the functions of recording, monitoring, and evaluating the basic activities of the business (Figure 13.1)

Manufacturing -- purchasing, receiving, shipping, materials, labor costing, equipment, quality control, process control, NC machines, robotics, inventory
Marketing -- sales, telemarketing, order processing, point-of-sale systems, credit authorization
Finance/Accounting -- accounts receivable, accounts payable, general ledger, payroll, cash management, loan processing, check processing, securities trading
Human resources -- personnel record keeping, applicants tracking, positions listing, training and skills, benefits



Office automation systems
Data work involves the use, manipulation, or dissemination of information
Knowledge work involves the creation of new information that requires independent judgment and creativity (Figure 14.7)
Office work involves the coordination and integration of workers in different functional areas of a firm

An office automation system is any application of information technology that increases the productivity of office workers:
document management
word processing
desktop publishing
communication
scheduling
data management
project management



Management support systems

4 functions of management: planning, organizing, leading, controlling (Figure 16.2)
3 roles of a manager: interpersonal, informational, decisional (Table 16.1)

3 types of management support systems
MIS: summarize and report on the basic operations of a company to support solution of structured problems (Fig.16.5)
DSS: provide data and models interactively to support the discussion and solution of semistructured problems (Fig. 16.7)
EIS: serve the information needs of managers at the highest organizational levels by combining data from both internal and external sources to support solution of unstructured problems (Fig. 16.9)

In-class activities:
Answer each of the following questions with respect to each of the business information systems that you learned in this class:
Where does the system obtain its data?
What does the system do with the data?
What problems does the system solve?
What difference does the system make?



Expert systems

Artificial intelligence (Fig.15.1)

Components of an expert system:
Knowledge base (production rules)
Inference engine (forward and backward chaining)
User interface (expert system shell)

In-class activity: pg.594 ex.#1
Hands-on activity: pg.594 ex.#3
 
Knowledge Reasoning

Forward Chaining         Data  à  Goal 

e.g.,      Knowing that Exam.2 is on December 18

                        How to prepare for it?

 

Backward Chaining    Goal  à  Data 

e.g.,      Reaching the goal: Get an A in INFO 902

                        What needs to be done?

 

E.g., Rules:

Rule1:   IF client is an engineer, doctor, or lawyer

                        THEN client belongs to a high paying profession.

Rule2:   IF client is a successful business owner

                        THEN client has high earnings.

Rule3:   IF client belongs to a high paying profession

                        THEN client has high earnings.

Rule4:   IF client has high earnings

                        THEN client is a low credit risk.

Rule5:   IF client has had credit for less than 3 years

                        THEN client’s credit history is very low

Rule6:   IF client’s credit history is very low

                        AND client has been unemployed for more than half of his/her adult years

                        THEN client has a high credit risk.

 

Fact1:   Sue is 25 years old

            Fact2:   Sue has 1 year of credit history

            Fact3:   Sue has been unemployed for 3/5 of her adult years

            Fact4:   Sue is a dentist

 

Forward Chaining:

Backward Chaining:

Facts: Fact2 & Fact3

 

Goal:  Is Sue’s credit risk high?

Fact2 Matches Rule5

New Fact1: Sue’s credit history is very low

New Fact1 & Fact3 Matches Rules6

 

 

Goal Matches Rule6

  New Goal1: Is Sue’s credit history very low?

  New Goal2: How long has Sue been unemployed?

    New Goal2 Matches Fact3

    New Goal1 Matches Rule5

        New Goal3: How long has Sue had credit?

          New Goal3 Matches Fact2

Conclusion: Sue has a high credit risk

Conclusion:  Sue’s credit risk is high