CS1004 Winter Exam (Block 1)

What is a system?

What is a system?

- A collection of parts or components

- There is a structure and interactions (flows) between the parts

- There may be interaction with things outside the system, that is, inputs from and outputs to, the environment

- Has a purpose

What is the purpose of an open system?

Exchange material/information with their environment

Closed systems

They do not interact with their environment

Sub-systems

A system that is a part of another system

Data

- A record of an event/fact

- Needs to undergo processing to become information

Information

- Data processed for a purpose

- Used to make decisions

Information System

System that provides information to support decisions and business activities

Information to support decision making

Three stages in making decisions - Intelligence (info that a problem exists), Design (info on alternative solutions & implications of each) and Choice (info on choice criteria)

Structured decisions

Governed by clear rules and steps (e.g. reordering stock)

Unstructured decisions

No set of rules or procedure for arriving at decisions (e.g. dealing with complex customer queries)

What is more likely when the decisions are more structured?

More likely that software can support or fully automate the decision

What decisions do managers make?

Executive - Strategic planning (e.g. what if we add a new production line?)

Middle - Management control (e.g. are sales up or down?)

Supervisory - Operational control (e.g. do we have enough product A in stock? Does customer X have any credit?)

Does executive level management use short or long term planning horizon?

Long term

What is the level and information needed for following business decisions? (strategic/management/operational)

1. Reorder product A stock

2. Allocate department's budget

3. Introduce a new product

1. Operational (supervisory)

2. Management (middle)

3. Strategic (executive)

Transaction processing managerial level

Supervisory

Transaction processing systems (TPS)

Information systems that are used at the lower level are called TPS

- Functional (directly support business activities & day-today)

- Deterministic (defined outcome)

- Routine (rule-based, low-level decision making)

E.g. calculation totals in an order, calculating income tax, scheduling after-sales service

Transaction processing systems handle day-to-day information processing tasks (true/false)

True

Business process, activity, transaction

- A business process consists of one or more activities that are performed in a specific order

- If the process involves different parties (e.g. seller & customer), then the activity is a transaction

ATOM's business processes: purchase transaction (from factory)

1. Order from factory

2. Receive goods

3. Pay bill

ATOM's business processes: sales transaction (to customer)

1. Place order

2. Deliver goods

3. Pay bill

ATOM Staff: Warehouse workers, storage and loading

- Unload factory trucks and stack goods

- Check stock

- Locate goods for orders and put on vans

ATOM Staff: Delivery drivers

- Drive van to customer location

- Unload goods

- Get customer signature

- Put fuel in van

ATOM Staff: Sales, taking orders

- Take orders

- Record sales

- Plan deliveries

- Marketing

ATOM Staff: Buyer, purchasing

- Check stock

- Order replacement stock

ATOM Staff: Accounts clerk

- Check credit

- Receive payments

- Pay our bills

- Payroll

Sales order processing

- Customer orders goods

- Sales office send the order to:

- Warehouse for dispatch (dispatch note)

- Purchasing office to update stock

- After delivery, the signed dispatch note is returned to the sales office

- Copy sent to accounts who raise an invoice

- Customer sends in payment

Purchasing process

- When goods are to be dispatched the purchasing office gets a copy of the order

- Subtract the amounts to be shipped from the stock record

- If the supply is low and no order for more stock has been raised then raise an order:

- Find an appropriate supplier

- Write an order and send it to the factory

- Note on the record that an order has been raised

- Send a copy of the order to accounts

Management Information System (MIS)

- Takes data from transaction processing systems

- Produces summaries and statistics

An MIS produces...

...summary and statistic reports on a regular schedule

Decision Support System (DSS)

An interactive system that helps managers with an unstructured decision

- May take data from TPS or MIS

- May use models or simulations

- Provides 'special' reports and analysis

- MIS provides 'routine' reports instead

- Answers complex "what if" questions (e.g. What would the effect on profits be if the supplier increases their prices by 5%?)

Expert systems

- Systems designed to mimic the decision-making ability of a human expert

- Specialise in a particular subject area

- Can reason (make decisions) based on complex 'if-then' rules

- Unlike TPS, they can deal with incomplete data and uncertainty

- User interface to get user input and provide output (decision/advice/explanation)

- Powered by AI and ML

Good information

- Relevant

- Specific to the task/problem

- No more or no less than needed

- Accurate

- Free from significant error

- Best available

- Timely

- Available when needed; late info is useless

- Accuracy may be sacrificed