Chapter 6

Global information Systems,Decision Support Systems,

Expert Systems

Learning Outcome

Understands why multinational corporations must use global information systems

Able to explain typical software components

Understands the elements and use of Geographic Information Systems

Global information System (GIS)

Is the development of information systems and applications which is used to deliver information worldwide within a defined context.

Global IS Management

Many cultural, political, and geoeconomic realities that must be confronted in order for business to succeed in global market

Focus on developing global business IT strategies and managing global e-business applications and systems developments

Global IS Management

Political challenge countries have rules regulating or

prohibiting transfer of data across their national boundaries

Others severely restrict, tax or prohibit imports of hardware and software

Global IS Management

Geoeconomic challenges cost of living and labor costs in various

countries Cultural challenges

Differences in languages,cultural interests, religions, customs, social attitudes

Work styles and business relationships

Global IS Management

Define core business processes Identify the Core Systems to Coordinate

Centrally Make the Benefits Clear

Ability to switch information efficiently Vast improvement in production, operation and

supply and distribution Ability to optimized the use of corporate funds

over a much larger capital base

Growth of International Information Systems Transformation of industrial economies and

societies into knowledge- and information based economies.

Emergence of global economy and global world order

Many firms will be replaced by fast moving networked corporations that transcend national boundaries

Growth of International Information Systems Design and assemble of laptop computer:

CPU – designed and built in US DRAM – designed in US, built in Malaysia Screen – designed and assembled in Japan Keyboard – from Taiwan

Made possible because of international information and telecommunication systems

The Global Business Drivers

General Cultural Factors

Specific Business Factors

Global communication and transportation technologies

Global Markets

Development of global culture

Global production and operations

Political stability Global workforce

Global knowledge base Global economies of scale

Factors driving GIS

General cultural factors and specific business to consider

Growth of cheap international communication and transportation has created world culture

Political stability and growing global knowledge base that is widely shared contribute also to the world culture

Decision Support Systems (DSS)

Assist management in decision making by combining data, sophisticated analytical models and tools, and user-friendly software into single powerful systems that can support semi structured or unstructured decision making

Types of DSS

Model-driven DSS Stand alone systems isolated from major

organizational information systems that used some type of model to perform “what-if” and other analysis

Data driven DSS Analyze large pools of data found in major

organizational systems Support decision making by allowing users to extract

useful information that was previously buried in large quantity of data

Cargo Revenue OptimizationCargo Booking

Agent (1)

Cargo ReservationSystem (2)

CargoProf RevenueManagement System (3)

PassengerReservationSystem (4)

Passenger Booking Agent

Flight Schedule Server (5)

Cargo Revenue Optimization

(1) Booking agent requests a cargo reservation

(2) Cargo Reservation system passes the shipment details and customer contract rate to (3)CargoProf

Cargo Revenue Optimization

(4) Passenger reservation system feeds a passenger forecast to the flight schedule server's cargo capacity forecaster (5), which calculates expected cargo capacity each

night for every flight. It passes this capacity data to CargoProf, which

calculates for each flight with available cargo space the minimum prices that a booking must meet or exceed

Cargo reservation system then accepts or reject the request

Components of DSS

DSS Database – collection of current or historical data from a number of applications or groups

DSS Software System – contains the software tools that are used for data analysis

Common models are libraries of statistical models – able to anaylze series of data

Components of DSS

Optimizing models – determine the proper mix of products within a given market to maximize profits

Forecasting models – forecast sales. Sensitivity analysis models – ask “What-if”

questions repeatedly to determine the impact of changes in one or more factors on outcome

DSS user interface – easy interactions

Examples of DSS

ORGANIZATION

General Accident Insurance

Bank of America United Airlines

DSS APPLICATIONS

Customer buying patterns & fraud detection

Customer profiles Flight Scheduling &

passenger demand forecasting

Components of DSS

DSS Database

External Data

TPS

DSS Software System ModelsOLAP ToolsDatamining Tools

User Interface

User

Data Visualization

Easier for user to digest and act upon by using charts, tables, graphs, maps, digital images, three-dimensional presentations, animations, and other data visualization technologies

Geographic Information Systems

Are a special category of DSS that use data visualization technology to analyze and display data for planning and decision making in the form of digitized maps

Can assemble, store, manipulate and display geographically referenced information, tying data to points, lines, and areas on a map

Geographic Information Systems

To help state and local governments calculate emergency response times to natural disasters

To help banks identify the best locations for installing new branches or ATM terminals

Expert Systems

Information systems that solve problems by capturing knowledge for a very specific and limited domain of human expertise

Capture the knowledge of skilled employees in the form of a set of rules

Can assist decision making by asking relevant questions and explaining the reasons for adopting certain actions

A-BIf INC>50,000Ask about car paymentsElse EXIT

B - CIf car payment <10% of incomeAsk about mortgage paymentElse EXIT

C – DIf mortgage payment <20% of incomeGrant creditElse EXIT

D – EIf D ask about years employed

E - FIf years >4 Grant 10,000line Else Do G

FLimit 10,000

G - HIf years< 4Ask about other debt

H –FIf other debt < 5% ofIncome DoFElse DoI

I Limit 3,000

DGrant creditline

Expert Systems

A series of these rules can be knowledge base

Contains : IF-THENAI shell – is the programming environment

of an expert systemInference engine – strategy used to search

through the rule base in an expert system; can be forward or backward chaining

Expert Systems

Forward chaining – strategy for searching the rule base in an expert system that begins with the information entered by the user and searches the rule base to arrive at a conclusion

Backward chaining - strategy for searching the rule base in an expert system that acts like a problem solver beginning with a hypothesis and seeking out more information until the hypothesis is either proved or disproved