CHAPTER-ONE

INTRODUCTION
1.1 Management Information System
Management Information Systems are primarily meant for providing information from the data after processing them. The information systems do not generate data. The data are generated, collected, recorded, stored, processed and retrieved after it has been generated by business operations in an organization. MIS is a planned system of the collecting, processing, storing and disseminating data in the form of information needed to carry out the functions of management. MIS is designs for providing important information to personnel in the organization. MIS is managing information system and organized combination of people, hardware, software, communication networks and a data resource that collects, transform and disseminates information in an organization. MIS is a subset of the over all internal controls of a business covering the application of people, documents, technologies and procedures by management accountants to solving business problems such as costing a product, service or a business-wide strategy. They are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Export Systems and Executive Information Systems. MIS generate information for monitoring performance and maintaining coordination. MIS extract process and summarize data from the TPS and provide periodic reports to managers.

1.2 Information System Components

A system is a set of related components that produces specific result. An information system has five key components. They are as follows: Hardware Software Data Processes People

People

Software

Information system

Hardware

Data

Networks

Fig 1: Information System Components

Hardware Hardware refers to the physical layer of the information system. It includes all the physical devices and materials used in information processing. It includes computers, networks, communications equipment, scanners, digital capture devices and other technology based infrastructure. Software Software includes all sets of information processing instructions. It consists of system software and application software. System software controls the computer and includes the operating system, device drivers that communicate with hardware and utilities that handle tasks such as converting data into a different format, virus protection, and creating backup. Application software consists of programs that support users and enable companies to carry out business functions. Data Data are the raw materials that do not give any meaning. An information system transforms these data into useful information.

Processes Processes or procedures describe the tasks that users, managers and IT staff members perform. Processes necessary to support a specific business model are described in written documentation manuals and online reference materials. People People include end users and IS specialist. End users include employees, customers, vendors and others who interact with an information system. Internal users include managers, technicians, sales representatives and corporate officers. External users include customers who track their orders on the companys Web site, suppliers who use a customers system to plan their manufacturing schedules and employees who log on to the companys intranet from home to check their e-mail messages.

1.3 Objectives of MIS

The objectives of MIS are as follows: To help and enhance the business process and performance of business firm. It takes raw data as input, process it out and gives information as output at each level of management to carry out their functions. It facilitates the decisions-making process by furnishing information in the proper time frame. Support decision-making in both structured and unstructured problem environments. Provide a system of people, computers, procedures, and interactive facilities, documents for collecting, storing, retrieving and transmitting information to the users.

1.4 Limitations of MIS

The limitations of MIS are as follows: MIS cannot replace managerial judgments in decision-making and is only an effective tool for managers in decision-making and problem solving. MIS may not have enough flexibility to update itself quickly. The quality of output of MIS directly proportional to the quality of input and processes. MIS is less effective due to frequent changes in the top management, organizational structure and operational staff. MIS is less useful for making non-programmed decisions. MIS takes only quantitative factors into account.

MIS is less effective in organizations where information is not being shared with others.

1.5 Information System Framework for Business Professionals

An understanding of the effective and responsible use in management of information system and technology is important for the managers; business professionals and other knowledge worker in todays inter network enterprises. IS plays a vital role in the Ebusiness and E-commerce operations, enterprise collaborations and management, and strategic success of business that must operate inter-network global environment. The IS knowledge that a business managers or a professionals need to know includes: Foundation concepts Information Technology Business Application Development Process Management Challenges

Foundation concepts It defines the fundamental behavioral, technical business and managerial concepts like system components and functions or competitive strategies. The fundamental concept of competitive advantage done through information technology and strategic information system uses information technology to help an organization gain a competitive advantage. Information Technology It signifies major concepts, development or management issues regarding hardware, software data and network technology. It also explains that the database management software helps business professionals and supports the operations and management. Business Application The major use of IT for business process, operation, decision making and strategic advantage of a business including e-commerce, e-business, collaboration and decisionmaking using the internet, intranet and extranet. It also describes how internet and other technologies support the business processes. Development process It talks about how end user operator and IS specialist plan, develop and implement business, IT solutions to the problems and opportunities as arising in the business. In this process, there is role of planning and business models in the development of business applications and management solutions for new IT-based business strategies.

Management Challenges It describes how to effectively and ethically manage the information system functions and IT resources to achieve top performance of the business. It helps business managers and professional to identify the harmful effects and increase the beneficial effects of the use of information technology.

CHAPTER-TWO ORGANIZATION OVERVIEW

2.1 Introduction of AWON LIBRARY

Active women who make a difference AWON library is one of the institute of AWON club (other two institutes are: the Kalimati Clinic and the AWON Scholarship for Girl Children in the outlying villages in Nepal) established by Dr. Bethel Fleming in 1955 with five lady friends. They named it AWON (then called American Women of Nepal) with a vision to promote interaction, fellowship, and understanding among expatriate women living and working in Nepal. 49 years later the organization is bigger and better than ever, Making a difference to the lives of Children and Women in Nepal as their motto reads. The organization was renamed Active Women of Nepal a couple of years ago to include all nationalities. The AWON library has been in existence for over 40 years and has moved several times. It now occupies a two-storied building opposite and down the hill a bit from the Hotel Himalaya (Patan side) in Kupondole. This library is a relatively inexpensive (nearly free) service to Nepalese and expatriates. It is run on a purely voluntary basis, mostly by Nepali volunteers. Its books are mostly gotten from donations of interested and concerned people. The library has thousands of volumes (mostly paperbacks), in every category: literature, history, travel, biography, mystery, adventure... and a HUGE children's book and magazine section. With well over 1,000 members, this library has the largest collection of childrens books in English, as well as an excellent collection for adults. There are valuable books on Nepal along with books on a large variety of subjects both fiction and non-fiction. Ram Shrestha has been working here since the beginning and manages the place. Keshuman, (yes, the one with a 100 volt smile) is there ever ready to assist you. At the helm of the committee is Sandra Coughlin, the Library Chairperson and in her absence Sudeshna Bose, Co Chairperson. For details: 552-0803 or e-mail at mlsms@mail.com.np The rules of joining and using the AWON LIBRARY are easy. Individual membership costs Rs. 250 with 5 books to issue at a time and family membership costs Rs.500 which allows to issues 20 books at a time. You can join in several categories -- individual and family, and local and "out of valley". If you life in Biratnagar, for example, you can join the Kathmandu AWON Library and check out books for up to 3 months to be taken and read "out of valley" (they are marked "OV"). If you live in the Kathmandu Valley, and use the books there, I think you have a month's time on each item checked out. AWON Library is a tremendous service to the community. On Saturdays it is packed with patrons (mostly Nepali)... it is very busy. Turnover is huge, as is the number of volumes. It is worth checking into, for individual and family.

2.2 Objectives of AWON Library

Encourage reading habits among general people Provide the books of English writers Facilitate learning habits Improve English communication of Nepalese Provide spacious and comfortable place for studying

2.3 Organizational Structure of AWON library

Manager (Ram Shrestha)

Librarians

Cleanliness staffs

Maintenance staff

Fig 2: Organizational structure of AWON Library

CHAPTER-THREE SYSTEM DEVELOPMENT PROCESS

3.1 Prototyping
Prototyping involves the creation of an early working version of the information system or its components. It is rapidly application development tools to develop the software for such an organization which requirements are changes frequently according as needs of users. So, a rapid application development tool (prototyping) fulfills the users requirements, those requirements changes dynamically within the shorter period of time. Prototyping tests system concepts and provides an opportunity to examine input, output and user interfaces before final decisions are made. It is the process of building an experimental system quickly and inexpensively for demonstration and evaluation process so that the user can better determine system.

3.1.1 Prototyping Process

The major steps involved in the prototyping process are as follows: Identify the basic requirement Develop working prototype Use the prototype Revise and enhance the prototype These steps of prototyping process are shown in the following diagram:

Identify the basic requirement

Develop Working Prototype

Use the Prototype

Yes

User Satisfaction

Operational Prototype No

Revise and Enhance Prototype

Fig 3: The Prototyping Process

3.2 System Development Life Cycle (SDLC)

SDLC is traditional approach to develop the new system which has number of activities like system analysis, system design, programming i.e. coding, testing, conversion and production & maintenance. All activities of SDLC is also called as System Development Life Cycle Stages. These different stages of SDLC must be completed sequentially with a very formal division of labor between end users and information system specialist. Various stages of SDLC are:

System analysis System design/modeling System implementation/coding/programming System testing System conversion System maintenance

System Analysis

System Design

Implementation

Testing

Conversion

Production and Maintenance

Fig 4: System Development Life Cycle

3.2.1 System Analysis

System analysis is initial stage of the SDLC in which system analyst analyzes the problem of the organization and tries to solve with an information system. It consists of: Defining the problems Identifying its cause Specifying the solution 10

Identifying the information requirement that must be met by a system solution

The system analyst details out problems of the existing system by observing the system operation, interviewing the different level of workers to determine the objective to achieve. System analyst finds out alternate solution for the existing problem after then find out the feasible solution from the alternate solution using feasibility study. Feasibility study provides way to find the best solution among the alternative solution by determining on the basis of their financial, technical and organization stand point of view.

3.2.2 System Design

System design is pictorial representation of flow of information inside the organization establishing the logical relationship among the different set of entities with different activities inside the organization. It fulfills the objectives as specified by the system analysis. The design of information system is the overall plan or model for that system. It details how a system will meet the information requirements determined by the system analysis. System design is the bridge between system analysis and system implementation which help the programmer to design the error free code in order to meet the organizational objectives. The system designer details the system specific that will deliver the functions identified during the system analysis. Each & every solution has their unique blend of design according to system requirement. System designer use different modeling tools in order to design the system.

3.2.2.1 Modeling (Data Model)

Data models are the conceptual tools for describing data, data relationship, data constraints or its a way of logically representing different data. There are three types of data models: Object-based Logical Models Record-based Logical Models Physical Data Models We shall now discuss about the different application modeling tools. They are: Context Diagram Data Flow Diagram (DFD) Entity-Relationship-Diagram (E-R-D)

Context Diagram
Context level diagram is diagramming which shows whole process in a single processing unit including its all associated entities. It is a structure graphical tool for identifying the

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organizations functions, areas and process that are performed within and between the organization and outside world. Symbols used in context diagram: Process Bubbles or circles are used to indicate where incoming data flows are processed and then transform into outgoing data flows.

Dataflow Arrows making the movement of data through the system indicate the data flows. Data flow is transfer of data or flow of information between two entities through processing. data flow

Lin with arrowhead Entities External entities represent the source of data as input to the system. They are also destination of the system data. External entities can call data stores outside the system. There are represented by square or rectangles.

The following represents the context diagram of the library management system in the Awon Library

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Add member Search member Add book

Librarian

Delete book Delete member Provide member list Display book list

Library management system

Request book Search book Return book

Member
Issue book Display book list Provide late payment bill Pays bill

Fig 5: Context Diagram of Library Management System

Data Flow Diagram (DFD)

DFD is pictorial representation of flow of system data and transformation of process. DFD provides logical concept to implement the system through the programmer. Programmer designs the error free code with the help of logical design as DFD. DFD (logical design) is act as bridge between system analysis and system implementation.

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Different symbols used in DFD are: Entity (External Entity) External entity is the component of DFD. This is use to represent the source of data as input to the system. They are the destination of system; this is also called as data stores outside the system. It is represented by the rectangle or square. Or Data Flow Data Flow represents movement of data from one process to another process from external entities to process unit and from entity to entity. Data Flows are generally represent in one way direction. Data Flows between external entities are represented by dotted lines. Symbol used for dataflow are:

(dataflow between entities) Process Process unit represents different activities in which data is manipulated by store or retrieve or transfer. In other words we can say that, process transforms input data into output data. Circles stand for process that converts data into information. It is represented by

Database File Database files or data stores are used to represent storage of data or information within the system for the processing of information. An open ended box or lines with double arrow represent database file/stores. a/c db a/c db

a/c db

The following figure represents the DFD of the AWON Library:

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Add member Delete member Search member

1. Editing information of member

Member info

Librarian
Display member list

2. Searching information of member

Add book Delete book

3. Editing information of book

Book info

Search book

Member
Display booklist

4. Searching information of book

Issue book Return book

5. Issuing /returning book

Issue/Return file

Provide fine bill Make payment

Supervise Provide update information

6. Accounting information system

A/c info

Fig 6: Data Flow of Library Management System

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Entity-Relationship-Diagram (E-R-D)
It is a graphical tool that identifies and represents the entities in an enterprise or system and logical relationships among these entities. An Entity-Relationship Diagram is a very useful to capture the data elements in a system. Database designers document the conceptual data model with an entity relationship diagram. It contains the following components: Rectangle-entities are shown Ellipse-attributes of the entity are shown Diamond relationship between entities Lines- links between entities, attributes and relationships.

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Name

Salary

Librarian

Issues Facilitates Publication Name Author Has

Library

Books

Book_id

Burrow / Return

Members

Name

Age

Address

Gender Date _of _joining

Telephone _no

Fig 7: E-R-D Diagram of Library

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3.2.3 System Implementation/Coding/Programming

Although a system may be well designed and properly developed, a major part of its success is contingent on how well systems implementation is planned and executed. This is the process of translating the system specifications prepared during the stage into program code. During the programming stage, system specifications that were prepared during the design stage are translated into software program code. On the basis of detailed design documents for files, transactions and report layouts and other design details specifications for each program and prepared. Organizations write their software program themselves or purchase the software packages for this purpose.

3.2.4 System Testing

A system testing is a test of the entire information system using live data supplied by the end users in an attempt to exercise all processing situations under typical conditions. Testing stage answers the question will the system produce desired results under the non condition? it is time consuming as test data must be carefully prepared result, received result and corrections used in the system. Testing can be broken down into three types of activities: Unit testing

Unit testing is the process of testing each programmed separately in the system. It is believed that purpose of such testing is to guarantee that programmed are error free. System testing

System testing tests the functioning of information system as a whole in order to determine whether different modules will functions together as planned. It also examines that whether the system performance is timely, capacity of data storage, recovery and restart capabilities. Acceptance Testing

It provides the final certification that the system is ready to be used in production setting. System test are evaluated by different level of users in organization and reviewed by different level of management. When all parties are satisfied then the new system meets their standards then the system is formally accepted for installation.

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3.2.5 System conversion

System conversion is a process which replaces old system into new system. There is different conversion strategy to convert old system into new system. Parallel strategy Direct cut over strategy Phased strategy/Pilot strategy Parallel strategy

Parallel strategy of system conversion is used to run both old system and new system together for a long time until everyone is assured the new one functions correctly. This approach is safe and conservative conversion approach in which backup system information is recovered by the old system when new system is crashed. This approach is very expensive because additional manpower is required to run the new system including extra resources. Direct cut over strategy

Direct cut over strategy of system conversion is use to convert old system completely by the new system. This approach is very risky because old system is completely compressed into new system and if new system is crashed than all the data, information of the organization is lost. There are no any backup recoveries to recover the information of old system. This strategy is very economy because no additional manpower and resources are required. Phased strategy/Pilot strategy

Pilot and phased strategy are use to convert the old system into the new system by selecting the limited area of the organization as a single department or operating unit. When this limited area or a single department is completed and works smoothly, it is installed throughout the rest of the organizations unit either simultaneously or in the stages.

3.2.6 System Maintenance & Production

It is the stage after the new system is installed and the conversion is completed, during this time the system is reviewed by the users and technical specialist to determine how well it has met its original goals. When we runt he system we have to increase the working efficiency of the system by monitoring, evaluating and modifying the operational business systems to make desirable necessary improvement is called as system maintenance. It is also necessary for other failures and improvement for problems that arise during the operation of the system. It is done by changing hardware, software,

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documentation or procedures to a production systems to correct errors, meet new requirements, improve processing efficiency.

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CHAPTER FOUR DECISION SUPPORT SYSTEM

4.1 Decision Support System (DSS) DSS are specifically designed to help management make decisions in situations where there is uncertainty about the possible outcomes of those decisions. DSS comprise tools and techniques to help gather relevant information and analyze the options and alternatives. DSS often involve use of complex spreadsheet and database to create whatif models. It provides support for the decision making process of managers and other business professionals. E.g.: Product pricing, profitability forecasting etc.

4.2 Executive Information System (EIS) EIS is used by top level of management. EIS combines many features of MIS and DSS. The first goal of EIS is to provide top executives with immediate and easy access to information about a firms critical success factors (CSF). EIS provide critical information from many sources to the information needs of executives. E.g.: System for easy access

4.3 Transaction Processing System (TPS) As the name implies, TPS are designed to process routine transactions efficiently and accurately. TPS is used in operational level of organization which is used to perform dayto-day operation in organization; transaction processing system performs and records daily routine transactions necessary to conduct business. A business will have several (sometimes many) TPS; for e.g.: Billing systems to send invoice to customers Systems to calculate the weekly and monthly payroll and tax payments Production and purchasing systems to calculate raw material requirements Stock control system to process all movements into, within and out of the business. Different application software packages are used to perform day-to-day transactions in TPS level. For e.g.: MS-Excel, MS-Word, PowerPoint, tally, access, pumori, etc.

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4.4 Online Transaction Processing System (OLTPS) OLTPS is used to perform day-to-day operation transaction processing, sharing of data and information for the intra-network business. OLTPS perform their activities or operation on remote data and remote information to share data, manipulate data, to produce and dispatch the correct information. Different office automation tools are used to perform the operation of data in the effective manner. With the help of OLTPS, we can easily perform the operation like insert, delete and update on the remote data.

4.5 Artificial Intelligence (AI) AI is connected with both the intelligence of machines and the branch of computer science which aims to create it. AI is the study and design of intelligent agents, where an intelligent agent is a system that perceives its environment through sensor and takes actions using actuators which maximize its chances of success. John McCarthy, who coined the term in 1956, defines it as the science and engineering of making intelligent machines.

4.6 Expert System (ES) An expert system is a software system that attempts to reproduce the performance of one or more human experts, most commonly in a specific problem domain, and is a traditional application and/ or subfield of artificial intelligence. A wide variety of methods can be used to simulate the performance of the expert however common to most or all are: 1. The creation of a so-called knowledgebase which uses some knowledge representation formulism to capture the subject matter experts (SME) knowledge and 2. A process of gathering that knowledge from the SME and codifying it according to the formalism, which is called knowledge engineering. ES may or may not have learning components but a third common element is that once the system is developed it is proven by being placed in the same real world problem solving situation as the human SME, typically as an aid to human workers or a supplement to some information system. A good example of application of expert systems in banking area is expert systems for mortgage.

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CHAPTER-FIVE BUSINESS APPLICATIONS

5.1 Use of MIS in functional areas of business

5.1.1 Finance and Accounting Information System Finance and accounting information system provides the following ideas: Accounting information system records, reports and analyze business transactions and events for the management of business enterprise Example of common account information system includes order processing, inventory control account receivables, account payable, payroll and general ledger systems. Information system in finance support financial managers in decisions regarding the financing of business and allocation of financial resources within a business. Financial information system includes cash management online investment, capital budgeting, actual budgeting, financial forecasting and planning

5.2.2 Sales and Marketing Information System Sales and marketing information system provides the following ideas: Marketing information system supports traditional and E-Commerce process and management of the organizing functions. Major types of marketing information system includes interactive marketing at ECommerce websites, sales for automation, customer relationship management, sales management, product management, advertising and promotion and market research. It helps to increase sales and reach large number of audience.

5.2.3 Manufacturing and Production Information System Manufacturing and production information system solves problems related to the planning, development and delivery of product and services and control the flow of production. Supply chain system provides information to coordinate, sourcing and procurement, production scheduling, order fulfillment, inventory management, product development, warehousing and customer service. Manufacturing and production information system supply data to operate monitor and control the production process. For example shipping, process control, robotics, engineering, operations, quality control resource management.

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5.2.4 Human Resource Information System Human Resource Information Systems supports human resource management in organization which includes information system for staffing the organization, training and development and compensation administration. This system mainly deals with recruitment, placement, performance, compensation, evaluation and career development of firms employees.

5.2 E-Commerce Electronic commerce consists of the buying, selling, marketing and servicing of products or services over computer networks. The information technology industry might see it as an electronic business application aimed at commercial transactions. An alternative definition of e-commerce might view it as the conduct of business commercial communications and management through electronic methods such as electronic data interchange and automated data collection systems.

5.2.1 Types of E-commerce The major types of E-commerce are as follows: Business to Consumer Commerce (B2C): involves retailing products and services to individual shoppers. Amazon.com which sells books to consumers is an example of B2C E-Commerce. Business to Business Commerce (B2B): involves sales of goods and services among businesses. There are different web site for buying and selling natural gas liquids, refined and intermediate fuels, chemicals, and plastic is an example of B2B ECommerce. Consumer to Consumer Commerce (C2C): involves consumers selling directly to consumers. For example e-bay enables people to sell their goods to other consumers by auctioning the merchandise off to the highest bidder. Consumer to Business Commerce(C2B):involves

5.2.2 Importance of E-Commerce The importance of E-Commerce is as follows: It provides reliability and security. Parallel servers, hardware redundancy, fail-safe technology, information encryption and firewalls can enhance this requirement. It provides value to customers. Vendors can achieve this by offering a product or product line that attracts potential customers at a competitive price, as in nonelectronic commerce. It provides service and performance as it offers a responsive, user friendly purchasing experience

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It provides an incentive for customers to buy and to return. Sales promotion to this end can involve coupons, special offers, and discounts. It provides personal attention. Personalized websites, purchase suggestions and personalizes special offers may go some of the way to substituting for the face to face human interaction found at a traditional point of sale.

5.3 E-Business Electronic business is the use of the internet and other networks and information technologies to support electronic commerce, enterprise communications and collaboration, and web enabled business process both within an internet worked enterprise and with its customers.

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CHAPTER-SIX ETHICAL DIMENSIONS

6.1 Introduction Ethics means the way which guide individual to judge their behavior as right or wrong. New different ethical issues are raised by the information system for both individual and societies as information system creates new opportunities for individual and make easy in lots of issues which make subject of legal operation. Ethical issue raised by information system are: making accountability for consequence of information system, setting of standards to maintain system quality that protect the safety of individuals and societies, maintain values and institutions which are essential for the quality of life in an information society.

6.2 Five Moral Dimensions of the Information Age The five dimensions of the information age are as follows: Information rights and obligations

What information rights do individuals and organizations posses with respect to information about themselves? What can they protect? What obligations do individuals and organizations have concerning this information?

Property rights

How will traditional intellectual property rights be protected in a digital society in which tracing and accounting for ownership is difficult and ignoring such property rights is so easy. Accountability and control

Who can and will be held accountable and liable for the harm done to individuals and collective information and property rights. System quality

What standards of data and system quality should we demand to protect individual rights and the safety of society by information system users.

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Quality of life

What values should be preserved in information and knowledge based society which institutions should we protected from violation, which cultural values and practices are support by the new technologies.

6.3 Ethics in an Information Society Responsibility Responsibility is the major element of ethical action. Responsibility means the individual who makes the certain decisions accept the potential costs, duties and obligations for his/her decisions. Accountability Accountability is the feature of systems and social institutions. It assures that there are mechanisms for determining who took responsible action, which is responsible. It is very difficult in some systems and institutions to find out who took what action. Liability Liability is a feature of political systems which allows individuals who are done harm by others (actors, systems or organization) to take action or to recover the damage done to them. Due process Due process is a process in which laws are established and made known and understood and there is an ability to appeal to higher authorities to ensure that the laws are applied correctly.

6.4 Ethical Issues for AWON Library AWON contains detailed information about all its members including the library members. As a member of the ethical society, it is AWONs responsibility to protect the information of each of its individual members and not misuse it against them.

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CHAPTER-SEVEN FORMS PREPARED IN VISUAL BASIC

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