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Anil Tatti
aniltatti [at] simca [dot] ac [dot] in
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Data
A “given,” or fact; a number, a statement, or a picture
Represents something in the real world
The raw materials in the production of information
Information
Data that have meaning within a context
Data in relationships
Data after manipulation
Data Manipulation
Systems thinking
Creates a framework for problem solving and decision
making.
Keeps managers focused on overall goals and operations of
business.
Synergy
When combined resources produce output that exceeds the
sum of the outputs of the same resources employed separately
Employee Privacy
IT supports remote monitoring of employees, violating
privacy and creating stress.
IT Professionalism
No mandatory or enforced code of ethics for IT professionals--unlike
other professions.
Social Inequality
Less than 20% of the world’s population have ever used a PC; less than
3% have Internet access.
Hardware
Software
Backup data
Restart job
Virus scan
People Data
Procedures
SIMCA 2009 Lecture 2 17
Management Information – Related Subsystems
Information Technology (IT)
is any computer based tool that people use to work with
information and support the information-processing needs of an
organisation.
Includes Hardware, Software, Communications, networks,
production automation, etc
Any ‘Kit’ concerned with the capture, storage, transmission, and
presentation of information
VP VP VP VP
Finance Accounting HRM MIS
Analyze data
Collect
data
Customers
• Project Focussed
• Multi-disciplinary teams
• Team members have more than one
boss
• Project team disbanded when
project completes
• New project team for new project
• Gives team members an insight into
the workings of other departments
• Leadership training ground
• Allows people with ideas to carry
them forward
• May cause blurring of
communication lines
Bank
Customer Partner
Partner
C.E.O.
Distribution
Contractor Partner
Partner
Management Team
Corporate
Finance Marketing Accounting HRM
Team Team Team Team Database
&
Network
Sales Methodology/Rules
Franchise
Team
Customers
Mergers
Larger companies
Need for control and information
Economies of scale
Temporary Workers
Managing through rules
Finding and evaluating workers
Coordination and control
Personal advancement through technology
Security
Internationalization
Communication
Product design
System development and programming
Sales and marketing
Service Orientation
Management jobs are information jobs
Customer service requires better information
Speed
Schematic
Corporate
Databases Corporate
databases
of intranet
of
external
internal
data
data Decision
support
systems
CAR $42,345
GWA $38,950
SAK $22,100
JWN $12,350
… … … … … … …
… … … … … … …
Schematic
Financial
MIS
Business
transactions
Business
transactions Databases Human
of
Resources Etc.
external
data MIS
Extranet
Extranet
Etc.
Figure 9.3
SIMCA 2009 Lecture 2 48
Financial MIS
Provides financial information to all financial managers
within an organization.
Schematic
Business
transactions
Transaction Databases
processing of valid
Financial
systems transactions MIS Financial
for each applications
TPS databases
Business
transactions
Financial statements
Financial
Operational Uses and management ES
Internet databases
Internetoror of funds
Extranet
Extranet Financial statistics
for control
Business Customers,
transactions Suppliers
Figure 9.3
SIMCA 2009 Lecture 2 50
Inputs to the Financial Information
System
Strategic plan or corporate policies
Contains major financial objectives and often projects financial needs.
Transaction processing system (TPS)
Important financial information collected from almost every TPS -
payroll, inventory control, order processing, accounts payable, accounts
receivable, general ledger.
External sources
Annual reports and financial statements of competitors and general news
items.
Schematic
Business
transactions
Transaction Databases
processing of valid
Manufacturing
systems transactions MIS Manufacturing
for each applications
TPS databases
Business Customers,
transactions Suppliers
Figure 9.6
SIMCA 2009 Lecture 2 54
Inputs to the Manufacturing MIS
Strategic plan or corporate policies.
The TPS:
Order processing
Inventory data
Receiving and inspecting data
Personnel data
Production process
External sources
Schematic
Transaction Databases
Business processing of valid
Marketing
transactions systems transactions MIS Marketing
for each applications
TPS databases
Sales by customer
Figure 9.9
SIMCA 2009 Lecture 2 58
Inputs to Marketing MIS
Strategic plan and corporate policies
The TPS
External sources:
The competition
The market
Benefit reports
Figure 9.12
SIMCA 2009 Lecture 2 62
Inputs to the Human Resource MIS
Strategic Management:
Provides an organisation with overall
direction and guidance – mission and
vision
Strategic S
EI
Mgmt
ES P Tactical Management:
ER
l
tro
Management
sa
on Operational Management:
sC
Tr
Operational Mgmt
Pr
Non – Management
employees:
Producing goods and services – serving
customers, order processing
Response Simulator
Enables a decision maker to give either a reactive or proactive response
May be futuristic.
ESS/EIS Aggregate data , external , Graphics; simulations, Projections; response to Senior Managers
internal interactive Queries
DSS Low- Volume data, analyticInteractive; simulations, Special reports; decision Professionals; Staff
models analysis analysis; response to Managers
Queries
MIS Summary Transaction Routine reports; simple Summary & exception Middle Managers
data; high volume models; low level reports
data; simple models analysis
KWS Design Specializations, Modeling, simulations Models, Graphics Professionals; Technical Staff
Knowledge base
OAS Documents, schedules Document; management; Documents; schedules; mail Clerical Workers
scheduling;
communication
TPS Transactions; events Sorting; listing; merging; Detailed reports; list Operations; Personnel;
updating summaries Supervisors
Strategy
A plan
Early 1990s definition:
“A well coordinated set of objectives, policies, and plans aimed at
Planned Executed
Strategy Strategy
Failed Emergent
SIMCA 2009 Lecture
Strategy 2
Strategy 79
Strategic Advantage and IT
Evolution of Strategy Concepts
changes
Temporary Strategic Advantage
Leverageable Strategic Advantage (Carr)
» dominant strategy is only a stepping-stone to future
dominant strategies
Externally
Strategic
Company A
Internally Company B
Strategic Inter-Firm
Strategic
Focus
“Alliance”
SIMCA 2009 Lecture 2
Elements of Strategic Management
Innovation
Response-Management
Long-Range Planning
Competitive Intelligence
Evolution
Hardware
CPU -ALU
Input
Output
Storage – Pri /Sec
Media / Communication devices
Software
System Software – OS, Complier – Diff OS
Application Software- Concerned with accomplishing task of end users.
1. Physical topology
2. Logical Topology
Advantages Disadvantages
Centralized
Scalable • Maintenance
Flexible • Expense
Interoperable
Accessible • Dependence
Disadvantages
Security
Decentralized
Star
Ring
Mesh
SIMCA 2009 Lecture 2 141
Bus Topology
Coaxial Cable
Connectors
Geography:
How far is it between stations?
Will you be relocating stations often?
Maintenance:
Do you want something (relatively) painless?
Cost:
Are you on a budget?
Do you want replacement parts
SIMCA easily
2009 Lecture 2 accessible? 150
Domain Name System
DB
4,000,000
3,500,000
The Data Gap
3,000,000
2,500,000
2,000,000
Total new disk (TB) since 1995
1,500,000
Number of
1,000,000
analysts
500,000
SIMCA 2009 Lecture 2 191
0
From: R. Grossman, C. Kamath, V. Kumar, “Data Mining for Scientific and Engineering Applications”
What is Data Mining?
Many Definitions
Non-trivial extraction of implicit, previously unknown and potentially useful
information from data
Exploration & analysis, by automatic or
semi-automatic means, of
large quantities of data
in order to discover
meaningful patterns
Database
systems
Description Methods
Find human-interpretable patterns that describe the data.
From [Fayyad, et.al.] Advances in Knowledge Discovery and Data Mining, 1996
SIMCA 2009 Lecture 2 195
Data Mining Tasks...
Classification [Predictive]
Clustering [Descriptive]
Association Rule Discovery [Descriptive]
Sequential Pattern Discovery [Descriptive]
Regression [Predictive]
Deviation Detection [Predictive]
Set
Set Classifier
SIMCA 2009 Lecture 2 198
Classification: Application 1
Direct Marketing
Goal: Reduce cost of mailing by targeting a set of consumers likely to
buy a new cell-phone product.
Approach:
Use the data for a similar product introduced before.
We know which customers decided to buy and which decided otherwise.
This {buy, don’t buy} decision forms the class attribute.
Collect various demographic, lifestyle, and company-interaction related
information about all such customers.
Type of business, where they stay, how much they earn, etc.
Use this information as input attributes to learn a classifier model.
From [Fayyad, et.al.] Advances in Knowledge Discovery and Data Mining, 1996
SIMCA 2009 Lecture 2 202
Courtesy: http://aps.umn.edu
Classifying Galaxies
Early Class: Attributes:
• Stages of • Image features,
Formation • Characteristics of
light waves received,
Intermediate etc.
Late
Data Size:
• 72 million stars, 20 million galaxies
• Object Catalog: 9 GB
• Image Database: 150 GB
Intracluster
Intraclusterdistances
distances Intercluster
Interclusterdistances
distances
are
areminimized
minimized are
aremaximized
maximized
National 273 36
Entertainment 354
SIMCA 2009 Lecture 2 278 208
Clustering of S&P 500 Stock Data
❚ Observe Stock Movements every day.
❚ Clustering points: Stock-{UP/DOWN}
❚ Similarity Measure: Two points are more similar if the
events described by them frequently happen together on
the same day.
❚ We used association rules to quantify a similarity measure.
Discovered Clusters Industry Group
1
Applied-Matl-DOW N,Bay-Net work-Down,3-COM-DOWN,
Cabletron-Sys-DOWN,CISCO-DOWN,HP-DOWN,
DSC-Co mm-DOW N,INTEL-DOWN,LSI-Logic-DOWN,
Micron-Tech-DOWN,Texas-Inst-Down,Tellabs-Inc-Down,
Technology1-DOWN
Natl-Semiconduct-DOWN,Oracl-DOWN,SGI-DOW N,
Sun-DOW N
2
Apple-Co mp-DOW N,Autodesk-DOWN,DEC-DOWN,
ADV-M icro-Device-DOWN,Andrew-Corp-DOWN,
Co mputer-Assoc-DOWN,Circuit-City-DOWN,
Technology2-DOWN
Co mpaq-DOWN, EM C-Corp-DOWN, Gen-Inst-DOWN,
Motorola-DOW N,Microsoft-DOWN,Scientific-Atl-DOWN
3
Fannie-Mae-DOWN,Fed-Ho me-Loan-DOW N,
MBNA-Corp -DOWN,Morgan-Stanley-DOWN Financial-DOWN
4
Baker-Hughes-UP,Dresser-Inds-UP,Halliburton-HLD-UP,
Louisiana-Land-UP,Phillips-Petro-UP,Unocal-UP, Oil-UP
Schlu mberger-UP
Inventory Management:
Goal: A consumer appliance repair company wants to anticipate the
nature of repairs on its consumer products and keep the service vehicles
equipped with right parts to reduce on number of visits to consumer
households.
Approach: Process the data on tools and parts required in previous
repairs at different consumer locations and discover the co-occurrence
patterns.
(A B)
Rules are formed by first discovering patterns. Event occurrences in the patterns are governed by timing constraints.
(C) (D E)
(A B) (C) (D E)
<= xg >ng <= ws
<= ms
Network Intrusion
Detection