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ACCT 3340 – Spring 2007 CH 5 - ADVANCED INFORMATION SYSTEMS

ACCT 3340 – Spring 2007 CH 5 - ADVANCED INFORMATION SYSTEMS. Key Concepts: Hierarchy of organizational decisions -see fig p. 2 TPS – highly structured decisions, lower level (Level 1) DSS – semi-structured decisions, mid level management (Level 2)

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ACCT 3340 – Spring 2007 CH 5 - ADVANCED INFORMATION SYSTEMS

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  1. ACCT 3340 – Spring 2007CH 5 - ADVANCED INFORMATION SYSTEMS Key Concepts: Hierarchy of organizational decisions -see fig p. 2 TPS – highly structured decisions, lower level (Level 1) DSS – semi-structured decisions, mid level management (Level 2) Expert systems – unstructured decisions, non-programmable, complex problems, top level management (Level 3) Ruled-based ES (see fig p.16) vs Case-based ES (in appendix)

  2. Hierarchy of organizational decisions • Be familiar with the Decision triangle p. 2 • Be sure you know the characteristics of TPS, DSS, and ES and the comparison of TPS, DSS, and ES on p. 14 chart.

  3. TPS Transaction processing systems • Involves routine, recurring decisions • Uses routine transaction data either from outside exchanges or internal • Standard reports only • Range from legacy COBOL to ERP systems • See transaction processing cycles in appendix to Ch. 1

  4. DSS Decision support systems • Semi structured decisions, mid level management, • Fuzzy decision rules, requires human judgment, uncertainty, often difficult to articulate a decision approach • Uses data from internal and external sources (Lexis/Nexis, etc)., often use statistical models, EOQ. Often based on spreadsheet or database models • Variety of flexible reports, what-if questions, goal seeking, optimization supported, can be designed to force managers to consider relevant info • Exec Info Sys - Often very user friendly GUI interfaces, min computer skills • Applications might include cash forecasting, portfolio management, budget setting, inventory management, sales and marketing analysis, danger of faulty models and over reliance. • Know components of DSS (fig p. 7) and adv/disadv of DSS (fig p. 9)

  5. Data warehouses, data marts, and data mining • Be sure you know what is meant by data warehouses, data marts, and data mining. • Data warehouses are archival data used for many strategic purposes. • Data marts are designed to meet a particular user need (more specialized and targeted tactical purpose)

  6. Expert systems (ES) • ES is a subfield of artificial intelligence (AI) • Seeks to capture expert knowledge, i.e., to imitate the reasoning ability of human expert • Consultative role, not meant to replace the expert • Consultation and justification features • Hueristic reasoning feature (very fuzzy input and rules) • Incomplete info is OK, can give certainty factor • Know benefits and problems with ES -see fig p. 21 • Accounting and auditing applications – see fig p. 22 • Development issues – knowledge acquisition, verbal protocol analysis, validation methods

  7. Rule-based vs Case-based ES • Know components of rule-based ES (fig p. 16) and sample rules for credit granting (fig p. 17) • Know cased based reasoning process in appendix (p. 28) and diagram (p. 29)

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