Chapter 11 bec
A management information system (MIS)?
(MIS) provides managers with the information they need for analysis, planning, control, and decision making, An MIS is best suited to solve problems when reporting requirements are well defined.
transaction processing system?
(TPS) supports the ongoing routine operations of an organization.
Management Information System (MIS)
1) Accounting: general ledger, accounts receivable, accounts payable, payroll processing, fixed asset management, tax accounting; described in item 4. on the next page. 2) Finance: capital budgeting, operational budgeting, cash management 3) Manufacturing: production planning, cost control, quality control 4) Logistics: inventory management, transportation planning 5) Marketing: sales analysis, forecasting 6) Human resources: projecting payroll, projecting benefits obligations, employment-level planning, employee evaluation tracking
Data Capture 1) Batch entry 2) Online entry
1) Batch entry involves loading a group of records at one time. 2) Online entry involves entering single records, usually in an interactive environment where the user gets immediate feedback.
Computer Operations
1) Console operators are responsible only for the smooth running of the organization's medium- and large-scale computers, i.e., the scheduling of jobs and production of output.
Artificial Intelligence (Al)
1) Expert systems work through a series of if/then questions in which every operation has exactly two possible outcomes (yes/no, on/off, true/false, one/zero). a) Human reasoning, on the other hand, is extremely complex, based on deduction, induction, intuition, emotion, and biochemistry, resulting in a range of possible outcomes. 2) Al attempts to imitate human decision making, which hinges on this combination of knowledge and intuition (i.e., remembering relationships between variables based on experience). 3) The advantage of Al in a business environment is that, relative to human experts, they
Optical scanners, data capture method can....6 things
1) Identify and respond to trends, 2) Make sales forecasts, 3) Determine which products are or are not in demand, 4) Improve customer service, 5) Target products and promotions to customers with different demographic traits, and 6) Evaluate the effects of promotions, including coupons
Online Processing
1) In this mode, the computer processes each transaction individually as the user enters it. The user is in direct communication with the computer and gets immediate feedback on whether the transaction was accepted or not. a) For this reason, this mode is also called interactive processing. 2) A common example is an accounts payable system in which a payables clerk can enter each individual invoice as (s)he verifies the paperwork.
. Batch Processing
1) In this mode, transactions are accumulated and submitted to the computer as a single "batch." In the early days of computers, this was the only way a job could be processed. 2) In batch processing, the user cannot influence the process once the job has begun (except to ask that it be aborted completely). (S)he must wait until the job is finished running to see if any transactions in the batch were rejected and failed to post. 3) Despite huge advances in computer technology, this accumulation of transactions for processing on a delayed basis is still widely used. It is very efficient for such TPSs as payroll, where large numbers of routine transactions must be processed on a regular schedule.
Any information system performs four major tasks
1) Input. The system must acquire (capture) data from within or outside of the entity. 2) Transformation. Raw materials (data) are converted into knowledge useful for decision making (information). 3) Output. The ultimate purpose of the system is communication of results to internal or external users. 4) Storage. Before, during, and after processing, data must be temporarily or permanently stored, for example, in files or databases.
1. 1) Neural networks 2) Case-based reasoning systems 3) Rule-based expert systems 4) Intelligent agents
1) Neural networks are a collection of processing elements working together to process information much like the human brain, including learning from previous situations and generalizing concepts. 2) Case-based reasoning systems use a process similar to that used by humans to learn from previous, similar experiences. 3) Rule-based expert systems function on the basis of set rules to arrive at an answer. These cannot be changed by the system itself. They must be changed by an outside source (i.e., the computer programmer). 4) Intelligent agents are programs that apply a built-in or learned knowledge base to execute a specific, repetitive, and predictable task, for example, showing a computer user how to perform a task or searching websites for particular financial information.
b. A DSS has three basic components:
1) The database consists of the raw data that are relevant to the decision. In this context, a data warehouse (see item 1. beginning on the previous page) is very useful. The data can come from both within and outside of the organization. 2) The model is the set of equations, comparisons, graphs, conditions, assumptions, etc., into which the data will be fed. 3) The dialog is the user interface that allows the user to specify the appropriate model and the particular set of data to which the model should be applied.
An expert system, like a decision support system, has three components:
1) The knowledge base consists of facts and the relationships among those facts. 2) The inference engine is often a series of if/then decisions. 3) The dialog allows the user to input data relevant to the current problem, which are then filtered through the inference engine and used to query the knowledge database. A suggested optimal solution is returned to the user.
Types of Data Files 1. master files 2. transaction files
1. A master file may be fairly static or very volatile. A) An example of a fairly static master file is an authorized vendor file containing each vendor's number, name, and address, an ex is the GL 2. A transaction file contains the data that reflect ongoing business activity, such as individual purchases from vendors or general journal entries.
Systems Development and Maintenance
2) Systems analysts and applications programmers are responsible for designing, building, and maintaining the organization's applications 3) Analysts and programmers should never be able to make changes directly to programs that are used in "live" production. A separate processing area devoted to development and testing should be set up and dedicated to the use of analysts and programmers. 4) I n addition, analysts and programmers should never have access to live production data
online analytical processing (OLAP).
2) The data warehouse can also be accessed using analytical and graphics tools, a technique called online analytical processing (OLAP).
3) Librarians
3) Librarians are responsible for "checking out" applications programs to analysts and programmers for modification and testing and for ensuring that the properly tested version gets "checked in" to production. Ideally, they too should have no programming knowledge.
Data Warehouse
A data warehouse is a central database for transaction-level data from more than one of the organization's TPSs. Data warehouses are very large and require that the transaction records be converted to a standard format.
Give an example of a decision support system DSS
A manager uses a personal-computer-based simulation model to determine whether one of the company's ships would be able to satisfy a particular delivery schedule.
Accounting Information System (AIS)
An AIS is a subsystem of an MIS that processes routine, highly structured financial and transactional data relevant to managerial as well as financial accounting. An AIS is concerned with 1) Transactions with external parties (e.g., customers, suppliers, governments, owners, and creditors) reflected in financial statements prepared in conformity with GAAP, and 2) The internal activities recorded in the cost accounting system and the preparation of related reports and analyses (e.g., production reports, pro forma financial statements, budgets, and cost-volume-profit analyses).
How is an accounting information system (AIS) distinguished from a management information system (MIS)?
An AIS is a subsystem within an MIS
Expert System (ES)
An expert system is an interactive system that attempts to imitate the reasoning of a human expert in a given field. It is useful for addressing unstructured problems when there is a local shortage of human experts.
In a business information system, which of the following types of computer files most likely would be a master file? Inventory A. subsidiary. B. Cash disbursements. C. Cash receipts. D. Payroll transactions.
Answer (A) is correct. A master file is permanent information that is updated for the effects of transactions. In online processing, it is immediately updated. In batch processing, transactions are accumulated in a sorted transaction file, with periodic updating to create a new master file. Thus, an inventory subsidiary account is recorded in a master file.
In traditional information systems, computer operators are generally responsible for backing up software and data files on a regular basis. In distributed or cooperative systems, ensuring that adequate backups are taken is the responsibility of A. User management. B. Systems programmers. C. Data entry clerks. D. Data librarians
Answer (A) is correct. In distributed or cooperative systems, the responsibility for ensuring that adequate backups are taken is the responsibility of user management. The systems are under the control of users, not a central information processing department.
Which one of the following distinguishes a management information system from a transaction processing system? A. Maintenance of a structured. database. B. Capability to provide data for decision-making support. C. Automation of routine transaction processing. D. Production of reports to support operations.
Answer (B) is correct. A management information system (MIS) provides managers with the information they need for analysis, planning, control, and decision making. A transaction processing system (TPS) supports the ongoing routine operations of an organization.
What type of computerized data processing system would be most appropriate for a company that is opening a new retail location? A. Batch processing. B. Real-time processing. C. Sequential-file processing. D. Direct-access processing.
Answer (B) is correct. Real-time processing is most useful in systems that require having the latest information available at all times. In a retail environment, such a system would potentially allow the company to track inventory, cash, labor, etc., as they change
If a payroll system continues to pay employees who have been terminated, control weaknesses most likely exist because Procedures were not implemented to verify and control the receipt by the computer processing department of all transactions prior to processing. A. There were inadequate manual controls maintained outside the B. computer system. C. Programmed controls such as limit checks should have been built into the system. D. Input file label checking routines built into the programs were ignored by the operator.
Answer (B) is correct. The authorization to pay employees comes from outside the computer department. Thus, inadequate controls external to the computer processing department are most likely the cause of allowing the payments to terminated employees to continue without detection.
A decision support system A. Improves management productivity by automating the decision-making process. B. Allows a user to view multiple perspectives of the same data. C. Allows for certain aspects of a problem to be preprogrammed. D. Provides immediate information about an organization's critical success factors
Answer (C) is correct. A decision support system (DSS) does not automate a decision or provide structured information flows but rather allows for certain aspects of the problem to be preprogrammed and provides tools for an end user to employ in applying insight and judgment
The current generation of ERP software (ERP II) may include an advanced planning and scheduling system that A. Determines the location of retail outlets. B. Connects the organization with other members of a joint venture. C. Controls the flow of a manufacturer's materials and components through the supply chain. D. Permits tracking of orders by customers.
Answer (C) is correct. An advanced planning and scheduling system may be an element of a supply chain management application for a manufacturer. It controls the flow of materials and components within the chain. Schedules are created given projected costs, lead times, and inventories
To maintain effective segregation of duties within the information technology function, an application programmer should have which of the following responsibilities? A. Modify and adapt operating systems software. B. Correct detected data entry errors for the cash disbursement system. C. Code approved changes to a payroll program. D. Maintain custody of the billing program code and its documentation.
Answer (C) is correct. Applications programmers design, write, test, and document computer programs according to specifications provided by the end users. The programmers are responsible for designing, building, and maintaining the organization's applications. Under no circumstances should programmers be able to make changes directly to programs that are used in "live" production. A separate processing area devoted to development and testing should be set up and dedicated to the use of programmers
Business intelligence (BI) has all of the following characteristics except Focusing on obtaining strategic A. objectives. B. Giving immediate information about an organization's critical success factors. C. Displaying information in graphical format. D. Providing advice and answers to top management from a knowledge-based system.
Answer (D) is correct. BI serves the needs of top management for managerial control and strategic planning. BI focuses on strategic (long-range) objectives and gives immediate information about a firm's critical success factors. BI is not a program for providing top management with advice and answers from a knowledge-based (expert) system
Devices that are used only to perform sequential file processing will not permit The use of a A. database structure. B. Data to be edited in an offline mode. C. Batch processing to be initiated from a terminal. D. Data to be edited on a real-time basis.
Answer (D) is correct. In an online, real-time system, direct (random), not sequential, access to files is required. As each transaction is entered, it is edited (validated). Files can then be immediately updated to reflect that transaction. Sequential file access is typical of (but not required in) batch processing.
Mill Co. uses a batch processing method to process its sales transactions. Data on Mill's sales transaction file are sorted by customer number and are subjected to programmed edit checks in preparing its invoices, sales journals, and updated customer account balances. One of the direct outputs of the creation of this file most likely would be a
Batch processing is useful for processing large volumes of data. Editing (validation) of data should produce a cumulative automated error listing that includes not only errors found in the current processing run but also uncorrected errors from earlier runs. The creation of the file will also generate various totals that will serve as controls over the completeness and accuracy of the processing
A company updates the payroll master file at the end of the week. The payroll time cards are transported to the computer center for processing. The sequence of events followed by the computer center in updating its master file should be
Batching records of transactions, converting to machine-readable form, validating input, updating the master.
A file containing relatively long-term information used as a source of reference and periodically updated with detail is termed a
C. Master file.
IT Infrastructure Centralization
Centralization. During the early days of computer processing, computers were very large and expensive and only organizations such as large banks and governmental agencies could afford them. 1) Of necessity, all processing and systems development were done at a single, central location. Users connected to the mainframe via "dumb terminals," i.e., simple monitor-and-keyboard combinations with no processing power of their own. 2) Since hardware, information security, and data integrity functions were located in one office, economies of scale were achieved and controls were strong.
The system that permits the computers in a distributed network to share the use of another end user's application program is?
Cooperative processing is a system whereby computers in a distributed network can share the use of application programs belonging to another end user. The system assigns different machines the functions they perform best in executing a transaction-based application program. For example, a microcomputer might be used to enter and validate data for the application, and a mainframe might handle file input and output.
A computer operator responsible for a particular job needed to know whether the job had already been run that day. The computer operator examined the
Console log. During processing, the operating system records in the console log the activities of the computer system and the actions taken by the computer operator. It should therefore contain entries for the work performed and provide a control over operator intervention.
The system that permits the computers in a distributed network to share the use of another enduser's application program is A. Electronic data interchange. B. Interactive processing. C. Executive support system. D. Cooperative processing
Cooperative processing is a system whereby computers in a distributed network can share the use of application programs belonging to another end user. The system assigns different machines the functions they perform best in executing a transaction-based application program. For example, a microcomputer might be used to enter and validate data for the application, and a mainframe might handle file input and output.
Data Administration
Data administrators determine how the organization's data should be stored and what relationships among the data best achieve the organization's business objectives. a) Confusingly, this function is also called database analyst. 3) Database administrators (DBAs) keep the organization's databases running efficiently.
Decentralization
Decentralization. As the data processing industry evolved, computers became smaller (so-called minicomputers), and branch offices of large organizations could have their own. 1) Each branch could store and process its data onsite, transmitting the results overnight to the mainframe at the home office. This was an early form of distributed processing, in which parts of an organization's computer operations could be performed in separate physical locations.
Do DSS systems support highly defined structures or abstract problems. Why?
Decision support systems facilitate solving relatively unstructured A. problems. decision support system (DSS) assists a decision maker by allowing him/her to access data and to test different solutions to the problem. This system only supplies support and should not take the place of the decision maker's insights and judgment
Fuzzy logic systems
Fuzzy logic systems are a form of artificial intelligence that deal with imprecise data and problems that have many solutions. 1) Fuzzy logic, a departure from classical two-valued sets and logic, uses soft linguistic system variables (e.g., large, hot, or tall) and a continuous range of truth values rather than strict binary (true or false) decisions and assignments. 2) Fuzzy rule-based systems apply these methods to solve many types of real-world problems, especially when a system is difficult to model, when it is controlled by a human operator or expert, or when ambiguity or vagueness is common.
Performing indoor climate control is a good example of what type of Artificial intelligence?
Fuzzy logic, Because they use nonspecific terms (membership functions) characterized by well-defined imprecision, fuzzy logic systems can create rules to address problems with many solutions.
The processing in expert systems is characterized by
Heuristics Knowledge-based (expert) systems contain a knowledge base for a limited domain of human expertise and inference procedures for the solution of problems. They use symbolic processing based on heuristics rather than algorithms.
In a traditional ERP system, the receipt of a customer order may result in Customer tracking of the I. order's progress II. Automatic replenishment of inventory by a supplier III. Hiring or reassigning of employees IV. Automatic adjustment of output schedules
III and IV only. However, the subsystems in a traditional ERP system are internal to the organization. Hence, they are often called back-office functions. The information produced is principally (but not exclusively) intended for internal use by the organization's managers.
In a large multinational organization, which of the following job responsibilities should be assigned to the network administrator?
Managing A. remote access Database administrators (DBAs), also called network administrators, are responsible for developing and maintaining the organization's databases and for establishing controls to protect their integrity. Managing remote access would be one method used by DBAs to protect the integrity of the organization's databases
Which of the following areas of responsibility are normally assigned to a systems programmer in a computer system environment?
Operating systems and compilers. It performs the fundamental tasks needed to manage computer resources, such as language translation, monitoring of data communications, job instruction, control of input and output, file management, data sorting, and access control
Processing
Processing is the act of converting raw data into usable information. This is performed by the combination of hardware and software that makes up the organization's IT infrastructure.
Robert is the data administrator (DA) for Big Time Corporation. An example of Robert's responsibilities as the DA is to monitor
The A. database industry The DA handles administrative issues that arise regarding the database. The DA acts as an advocate by suggesting new applications and standards. One of the DA's responsibilities is to monitor the database industry for new developments. In contrast, the database administrator (DBA) deals with the technical aspects of the database.
A review of the system activity log kept by the operating system would reveal which of the following problems in the processing of the inventory?
The inventory master file scheduled to be updated every Friday was updated on Sunday.
real-time systems
These are called real-time systems. They provide immediate feedback so the user can make decisions based on the input. A common example is an airline reservation system, which is constantly updated from moment to moment and must be available all the time.
enterprise resource planning
These single-function systems, often called stovepipe systems because of their limited focus, are gradually being replaced by integrated systems that link multiple business activities across the enterprise. The most comprehensive integrated system is termed an enterprise resource planning
Data Warehouse, Data Marts, and Data Mining 2. Decision Support System (DSS)
a. A DSS is an interactive system that is useful in solving semistructured problems, that is, those with a structured portion (which the computer can solve) and an unstructured portion (which requires the manager's insight and judgment).
Transaction Processing System (TPS)
a. A transaction is a single, discrete event that can be captured by an information system. 1) Examples include the movement of raw materials from storage to production, the recording of a new employee's personal data, or the sale of a piece of merchandise. b. A TPS therefore captures the fundamental data that reflect the economic life of an organization.
Business Intelligence (BI)
a. Business intelligence is what gives upper management the information it needs to know where the organization is and how to steer it in the intended direction. BI gives an executive immediate information about an organization's critical success factors.
1. a. Database administrators (DBA) 2. b. Network technicians c. The webmaster d. Computer (console) operators e. Librarians
a. Database administrators (DBAs) are responsible for developing and maintaining the organization's databases and for establishing controls to protect their integrity. b. Network technicians maintain the bridges, hubs, routers, switches, cabling, and other devices that interconnect the organization's computers. They are also responsible for maintaining the organization's connection to other networks, such as the Internet. c. The webmaster is responsible for the content of the organization's website. (S)he works closely with programmers and network technicians to ensure that the appropriate content is displayed and that the site is reliably available to users. d. Computer (console) operators are responsible for the moment-to-moment running of the organization's medium- and large-scale computers, i.e., servers and mainframes. 1) Computers in this size range, unlike personal computers, require 24-hour monitoring. Operators respond to messages received from the system by consulting run manuals that detail the steps for processing. e. Librarians maintain control over and accountability for documentation, programs, and data storage media.
Office Automation Systems (OASs)
a. The familiar word processing, spreadsheet, digital document storage, and desktop publishing applications of most office workers are part of any organization's information systems environment.
Transaction processing systems frequently support the inquiry of online database users. What characteristics does it have.?
a. either batch or real time can be used b. it is dependent on teh use of teleommunication networks and database managment query languages. c. responses are in a prescpecified format displayed on teh end user's terminal. ***end users are not allowed to make changes to the records retrieved.
Who is responsible in a distributed or cooperative system to ensure that adequate backups are taken?
adequate backups are taken is the responsibility of user management. The systems are under the control of users, not a central information processing department.
digital dashboard
b. BI tools display information about the organization as bar graphs, pie charts, columnar reports, or any other format considered appropriate to upper management's decision making. These displays are sometimes grouped by a particular executive's needs into what is termed a digital dashboard.
ERP II has added what functions?
current generation of ERP software (ERP II) has added frontoffice functions. Customer relationship management applications in ERP II extend to customer service, finance-related matters, sales, and database creation and maintenance
data mart
data mart is designed primarily to address a specific function or department's needs, whereas a data warehouse is generally meant to address the needs of the entire enterprise.
f. Systems programmers g. Applications programmers h. A systems analyst i. Help desk personnel
f. Systems programmers maintain and fine-tune the operating systems on the organization's medium- and large-scale computers. The operating system is the core software that performs three of a computer's four basic tasks, i.e., input, output, and storage (the transformation task is generally handled by application software; see item g. Applications programmers design, write, test, and document computer programs according to specifications provided by the end users. h. A systems analyst uses his/her detailed knowledge of the organization's databases and applications programs to determine how an application should be designed to best serve the users' needs. These duties are often combined with those of applications programmers. i. Help desk personnel log problems reported by users, resolve minor difficulties, and forward more difficult problems to the appropriate person, such as a database administrator or the webmaster. Help desk personnel are often called on to resolve such issues as desktop computers crashing or problems with email.
Every database is a unique combination of
i) relationships among the data (the schema), ii) The database management system (the software), and iii) The equipment on which the database is stored (the hardware).
What is the key distinction between decentralized and distributed systems.
is the interconnection among the nodes in distributed system. mainframe=decentralized.
