Information systems organizations decision makingfebruary

Information Systems in Organizations –
Decision Making

February 24, 2016

• An organization is an administrative and functional structure where people work toward a specific goal.

• Understanding the organization’s IT needs requires a good understanding of its administrative and
functional structure.

IS & Hierarchical Organizational structure• .

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• Transaction Processing Systems (TPS)
– Basic business system that serves the operational level
(including analysts) in organizations
– Capture & process data generated during day‐to‐day activities• Office Automation Systems (OAS)
– Systems designed to help office workers in doing their job.

• Decision Support Systems (DSS)
– Systems designed to support middle managers and business professionals during the decision‐making process
• Executive Information Systems (EIS) or Executive Support Systems (ESS)
– Specialized DSS that help senior level executives make decisions.• GDSS: computer‐based systems that facilitate solving of unstructured problems by set of decision makers 6

- Transaction Processing Systems
- Office Automation Systems
- Knowledge Worker Systems
- Management Information Systems
- Decision Support Systems
- Executive Information Systems

 Intelligence

 Design

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• Determine if problem is

Design Phase

– More detailed analysis of selected solution might be needed.

– Verify initial conditions.

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DSS Analysis Tools

Simulation is 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 outcome

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2. Neural Network – attempts to emulate the way the human brain works

4. Intelligent agent – special‐purposed knowledge‐based
information system that accomplishes specific tasks on behalf of its users
PBS Report on AI in today’s world 16

Expert Systems

Domain
Expert

Example of rules

Explanation System

Expert Systems: Pros and Cons

Pros

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Expert Systems: Pros and Cons

Built in high-level computer languages (and “Shells” – e.g. CLIPS, JESS, DROOLS) that require few IT skills

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• Techostructure
–The analysts who serve the organization by affecting the work of others.

They may design it, plan it, change it, or train the people who do it, but they do not do it themselves. Examples: engineers, accountants, planners, researchers, etc.