1. Types of Information Systems
Explore TPS,MIS,DSS & EIS in DIKW Pyramid
Unit 2
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5. Difference between IT and IS
• Information Technology (IT) deals with Technology
- Hardware
-Software
- Networking
• Information Systems (IS) deals with
-Technology
-People
-Process
-IS Relates to Business using Technology
6. Five Components of – Information
System (IS)
• Hardware – Physical devices –computers ,
tablets , mobile phones
• Software – Tells the hardware what to do
• Data –Information manipulated by Software
• People –Users , Programmers ,Analysts , IT
Dep't
• Process- steps to accomplish a goal
• Telecommunications /Networking
7. Types of Decisions
Structured – Inventory Re order Decision-TPS
Semi Structured – Which product lines to add
in next 1 year-MIS/DSS
Unstructured – Which business to be in next 5
years-EIS
11. Transaction Processing System (TPS)
• Captures daily transactions like POS (Point of
Sale ) data in Store
• Helps in Operational Level of Management
( lower Management)
• Online (POS) or Batch Processing
• Pre defined transactions
• No decision making
• Structured problems
• Follows ACID Mode
12. ACID Principle of TPS
• All TPS model follow ACID Principle
• A – Atomicity – Transaction is Full or None
• C – Consistency – All transactions within
defined boundary ex ATM limit of 10K cash
withdraw per transaction
• I – Integrity – All Credits and Debits will be done
simultaneously
• D- Durability – Maintain Log Reports of who
used the system and when ?
13. TPS Classifier -ACID Test for TPS
• A – Atomicity- TPS is complete in full or not
• C-Consistency- set of operating rules and
constraints of Database Mgmt
• I – Isolation – Each TPS is different even if they
are at same time
• D –Durability – TPS once done cannot be
undone
18. Management Information System
(MIS)
• Captures data from TPS
• Summarizes TPS Data
• Provides “Organization Performance Reports”
• Mostly Structured –Pre Defined decision
making
• Little Analytics
• Example : Grade Sheet of Class Term Result is
MIS (Performance of Class)
19. Four Types of MIS Reports
1. Periodic and Scheduled Reports – provided on
regular basis – daily /weekly/fortnightly/monthly ex
Sales Reports ,Production & Inventory Reports
2. Exceptional Reports – Only in exceptional conditions
, may be periodic and non periodic. Periodic to
decrease info overload , non periodic ex exceeding
Credit limit
3.Demand and Response –Available on demand –
Customized Reports , Web Based , RDBMS query
4.Push Reports – Automatically pushed on desktops ex
Newsfeeds of competition, stock prices
20. MIS Reports
2015 Ticket Sales
Movie Genre January February March April May June July August September October November December TOTAL
Comedy 49,832 47,232 40,002 37,283 32,910 33,829 30,102 32,111 34,921 30,293 28,392 24,192 421,099
Thriller 12,839 16,828 15,839 18,082 24,932 30,462 34,240 42,718 41,128 39,382 36,621 37,283 350,354
Documentary 9,118 9,907 7,257 7,838 6,372 5,992 5,773 5,993 6,302 8,103 9,100 9,278 91,033
Romance 14,381 14,651 11,969 14,602 13,046 14,411 13,871 14,184 13,033 14,625 12,196 13,081 164,050
TOTAL 86,170 88,618 75,067 77,805 77,260 84,694 83,986 95,006 95,384 92,403 86,309 83,834
22. Decision Support Systems
• Model Based – Use of Statistical Models – result is
known , arrive at correlation between 2 variables –
ex behavioral analysis – Cross and Up Sell in E
Commerce
• Data Based – Use Data from TPS /MIS to slice
/dice/ consolidate /replicate and arrive at new
knowledge which was not known
ex Yield Management System ( Dynamic ticket
pricing of Airlines ) based on optimization model
26. Decision Support System (DSS)
• Non Routine Decisions
• Usually Semi Structured Decisions – 50/50 (
based on data and experience)
• 2 Categories
-Model Based
- Data Based
• Used infrequently only when problems
/opportunity analysis
27. DSS Model
Remote -454.45 0
Calls Per Day 377.82 48 $18135.19
Quit? -38.47 0
MS Teams User? 240.38 1 $240.3827
Bonus Amt -0.25 0
Jan 213.90 1 $213.9009
Feb 213.46 0
Prediction/Goal $18589.48
29. Executive Information System (EIS)
• Decisions taken at Top level
• Totally unstructured decisions based on data ,
insights, intuition and experience
• Data is 2 types
- Internal Data – From DSS
- External Data – Sensex , Standard and Poor type
reports , Govt Policies , Industry Reports
• Dashboard is Graphical /Charts
31. Knowledge Management System
• Understand concept of Knowledge
• Hierarchy of Knowledge
• Types of Knowledge – Explicit & Tacit
• Knowledge Types conversions
• Value of Knowledge
• Organizational Knowledge – Single & Double loop
• Use of Information Technology in Knowledge
• Introduction to AI – Expert Systems
• Expert Systems – Forward and Backward Chaining
32. What is Knowledge
• Knowledge is
- Know how
- Applied Information
- Information with Judgment
- Capacity for effective action
33. Types of Knowledge
Knowledge basically is of two types
1 . Explicit Knowledge – Can be expressed in
words and figures , essentially this knowledge
can be documented
2.Tacit – This knowledge cannot be documented
For organization to grow by continuous
innovation, Tacit knowledge has to be
continuously converted to Explicit knowledge
34. Knowledge Types Conversions
• Tacit to Explicit – for continuous innovation , Ex
Expert Systems
• Explicit to Tacit – Ex PhD Research –Start with
Literature review , find gaps and to tacit research
for further innovation
• Explicit – Explicit – Organizations copy best
knowledge practices from each other , ex use of
same type of Payroll System
• Tacit –Tacit –Two subject matter experts talk to
each other to increase the Tacit knowledge of
each other .
35. Organizational Knowledge
• Organizational Learning Strategy is different for different
organizations .It creates new standards for operating
processes
• There are two types of Organizational learning
1. Single Loop – Get into deeper understanding of “Cause” in
the “Cause and Effect “ theory.Ex Earthquakes kill people
.Here you will get into understanding of Cause of
Earthquake and find solution
2.Double loop –You challenge the “ Cause “ . Ex Earthquakes
don’t kill people , Falling buildings do . Earthquakes don’t
kill people in Japan and US , but they still do in Indonesia
and other countries
39. Expert System Model
• The process of transfer of human expert
knowledge to a computer and thereafter
taking inputs of the expert advice from the
computer is called Expert System
• The components of Expert System are
- Knowledge Base
- Inference Engine
- User Interface
43. Components of Expert Systems
• Inference Engine – Use of “Rules “ , “ What if
Analysis “ – This is “brain” of Expert System.
Apart from Rules , its other function is to “Search
“ the Knowledge Base.
• Knowledge Base – Domain Experts (ex Doctor)
provides knowledge to Knowledge (Data)
Engineer who codifies the knowledge in
Knowledge Base
• UI – Uses web , Text to Speech and Speech to Text
to get the expert advice to non expert user
44. Forward and Backward Chaining in
Inference Engine
• Inference Engine uses Forward and Backward
Chaining techniques for framing Rules and Search
from Knowledge Base
• Forward Engine – Starts with known facts and
asserts new facts
• Backward Chaining – Starts with goals and works
backwards to determine what facts must be
asserted so that goals can be achieved . It
essentially does hypothesis testing
45. Forward and Backward Chaining
Example
• A is initial condition – No one is in
Management Institute today
• A->B ( A implies B ) – Rule – If no one is in
Institute today , it must be holiday
• B (Result ) – It is holiday today
Forward Chaining – Given A and A->B , find B
Backward Chaining – Given B and A->B , find A
