Mis

Functions of management & System concepts
http://handoutsuite.googlepages.com
MANAGEMENT INFORMATION SYSTEMS

1.1 The Functions of Management Management is the process of directing tasks and organizing resources to achieve organizational goals. The main functions of management are:1. Planning:- is deciding what to do. This function entails evaluating the organizations resources and environment and establishing a set of organizational goals. Once these goals create a decision making process that will monitor the results. 2. Organizing:(a) Organizing is the art of deciding how to achieve goals. (b) The decision requires developing the best organizational structure, acquiring and training personnel, and establishing communication networks. (c) The manager of the office equipment dealership will have to organize resources to achieve the objective.
1.1.1 Managerial Roles Successful management also requires performing a variety of managerial roles. The three managerial roles are:1. Interpersonal:- This roles include the (a) Figurehead role:- The manager performs ceremonial duties such as greeting job candidates and dignitaries. (b) Leader role:- The manager must hire, train and motivate employees. (c) Liason rule:- The manager makes contacts outside the vertical chain of command. 2. Informational role:- Managers have formal access to information from virtually every internal staff member as well as extensive external information. (a) Monitoring or scanning the environment for information is one of the most important task. (b) Manager may choose to pass certain information along to peers and to subordinates. (c) The manager provides information to the external community to supplies, to the press, to lobbying organizations, and to government officials.
4. Controlling:(a) It enables the manager to determine if the organizations performance is on target. (b) Information systems can also provide feedback on how effectively financial and physical resources are being used to achieve goals.
(c) Reports that summarize sales statistics and compare planned versus actual expenses provide information that managers can use to control the use of the organizations resources.
Management Info. Systems Module 1
ht
3. Leading:(a) It involves directing and motivating employees to achieve the organizational goals. (b) The manager of the office dealership may need to develop incentive programs to motivate sales people and to organize team-building efforts to maintain good morale.
do
ut
su
it
e.
tp
:/
/h
an
go
og
3. Decisional role:- They include :(a) Entrepreneurial role:- The manager is constantly looking for new ideas. (b) Disturbance handler:- When internal or external disputes affect the companys operations, a senior manager may have to respond to pressures. (c) Resource allocator:- The manager determines who will get what. He or She may decide how much money to spend on recruiting and training new sales personnel and how much time to spend on developing an advertising program. (d) Negotiator:- The manager is responsible for representing the organization in bargaining with others with customers. With shipping companies, and with manufacturers. 1
le
pa
ge
s.
co
1.1.2 Managerial Performance One of the keys to managerial performance is the ability to distinguish between efficiency and effectiveness. Efficiency is doing things right, whereas effectiveness is doing the right things right. Most managers are responsible for monitoring the performance of people, programs, and other resources that support organizational goals. Managers are responsible for maintaining existing performance as will as for organizing resources to improve performance. Managers must develop criteria to measure successful performance. The information managers use to make decisions should provide measures of performance that relate to the successful achievement of business goals.
3. First-line Management:(a) Responsible for supervising day-to-day operations. (b) They typically supervise functions such as order entry, audit checking, inventory control, and primitive maintenance. (c) They use information such as quality control reports and inventory turnover reports to supervise the activities for which they are responsible and to make sure that performance is suitable. 1. 3 A Framework for Information Systems Three levels operational, tactical and strategic require specific information systems. Fig(1)
2. Middle-level Management:(a) Responsible for allocating Resources. (b) They do so by implementing plans and by supervising lower-level managers under their functional area of responsibility. (c) They include Sales Manager, Research Directors, Plant Managers, Market Research Directors, and Directors of information systems.
ht
tp
1. Top Management:(a) Members are the organizations senior executives. (b) The importance role is establishing the foals of the organization. (c) They are typically responsible for interacting with representatives of the external environment, such as financial institutions, political figures etc.
:/
/h
an
do
ut
su
The levels of management consist of:-
it
e.
1.2 Levels of Management
go
Fig1. A Framework for Information Systems
og
le
pa
ge
s.
co
1.3.1 Operational Systems Primary concern: To collect, validate and record transactional data describing the acquisition or disbursement of corporate resources. Financial data must be recorded. (Accounts receivable, accounts payable, payroll and cash)
For e.g.: When a sale occurs: Data on the items ordered are recorded Inventory level for these items is adjusted A shipping level and packaging slip are prepared An invoice is generated
1.3.2 Tactical Systems Provides middle-level managers with the information they need to monitor and control operations and to allocate their resources effectively. In tactical systems, transactions data are summarized, aggregated or analyzed. Generate a variety of reports, including
summary reports, exception reports and ad-hoc reports. Summary reports provide management with
Characteristics of Operational Systems: Information is produced repetitively at periodic intervals. Predictability: Information generated is predictable and contains no surprised or unexpected results. Emphasis on the past: The information usually describes part activities.
E.g.: Customer invoices describe past sales to them. Repetitiveness:
do
Detailed nature: The information is very
ut
su
it
e.
go
detailed.
Internal origin: The data for operational systems is entirely from internal sources. Structured form: The input data as well as the information produced are very structured.
ht
tp
:/
/h
E.g.: Customer invoices specify details regarding purchases during the period, the terms under which the purchases must be repaid, and the total amount.
an
E.g.: The data on each customer invoice are carefully formatted in identical fashion.
Great accuracy: The accuracy of the data used
as input and of the output produced is very high.
og
le
Exception reports warn managers when
results from a particular operation exceed or do not meet the expected standard for the organization. E.g.: A list of those sales personnel whose sales fall in the top and bottom 10 percent of the organization.
Ad hoc reports: Reports that managers need
quickly, and may never need again; presents information that the manager needs to solve a unique problem. E.g.: A report that presents the production record of each plant for the week. Tactical Systems differ from operational information systems in their basic purpose: The purpose of tactical information systems is not to support the execution of operational tasks, but to help the manager control these operations.
pa
ge
E.g.: A list of total weekly sales, by salesman, by product, and by sales region.
s.
important totals, averages, key data, and abstracts on the activities of the organization.
co
e.
Differs from operational information systems in the regularity with which information is produced, the predictability of the results, the comparative nature of the information, the amount of detail produced, rigidity of structure of the information. 1.3.3 Strategic Planning Systems
go
ut
su
it
Characteristics of Strategic Planning Systems : Ad hoc basis: The information may be produced either regularly or periodically. But, information is produced more often on an ad hoc basis.
E.g.:- Organization planners may request marketing analysis information pertaining to anew product when they are considering the addition of several new stores in a new region. Management Info. Systems Module 1
ht
tp
:/
/h
an
do
Designed to provide top managers with information that assists them in making long range planning decisions. The key differences between strategic and tactical information systems have to do with who uses the data and what they are using it for. Top management ordinarily uses strategic planning information systems. For setting long-term organizational goals
The information system is an insurance company is examined below to illustrate the development of management of information systems. Massive amounts of paperwork involved in creating, maintaining and generating bills for policies is necessary. Using an online system, an operator keys in new application information at a computer terminal. When all information is compiled, a worksheet is created for an underwriter who evaluates the insurability of potential customers. Policy information is then entered into the system and a policy data sheet is created. Sales managers are designing applications that will help analyzing product profitability, agent profitability, customer profitability, and the impact of marketing strategies on sales. 4
og
1.3.4 Sequence of Development of MIS
le
Data input into operational systems becomes the source of data for tactical systems. Hence, before tactical systems can be built, the base of operational systems has to be in place.
pa
Characteristics of Tactical Systems: Periodic nature: Information is sometimes produced periodically. Tactical information systems also produce information when needed. Unexpected findings: May produce unexpected information. Comparative nature: The information is usually comparative in nature rather than merely descriptive. Summary form: The information is in Summery form. The manager needs only summary information relating to credit performance or balances of accounts that are overdue. Both internal and external sources: The data used for input to the system may extend be internal a external.
information: The information produced may be unexpected. Predictive nature: The information is predictive of future events rather than descriptive of past events. Unexpected E.g.:- forecasts of future economic conditions.
E.g.: Forecasts of future stack market trends may be based partly on rumors reported by brokers.
ge
The information is in summary form rather than in detailed form; usually concerned with more global data. External data: Large part of the data used as input may be acquired from external sources. Unstructured formats: The input data may be unstructured in format. Subjectivity: Input data is highly subjective and there accuracy may be suspect.
Summary
form:
s.
co
http://handoutsuite.googlepages.com System Entropy:-
1.4 Systems and Their Environments The Systems environments consist of people, Organizations and other systems that supply data to or that receive data from the system. The various kinds of systems may interact with the environment in different ways.
1.4.1 Open and Closed Systems
an
System Feedback
do
ut
su
it
e.
In contrast, a closed system is relatively self contained; it doesnt exchange information with its environment. Closed system doesnt get the feedback they need from the external environment and tend to deteriorate.
go
Example, A marketing system, which is an open system, Operator in an environment of competition. If a competitor introduces new technology by providing customers with on-line order entry terminals. The marketing function must adapt to the change in the environment or remain at a competitive disadvantage.
How A System Works?
ht
A system needs feedback to do its job. Feedback is an indicator of current performance refers when compared to a set of standards. The good thing about feedback is that it usually increases effort.
/h
tp
:/
Negative feedback is designed to correct or
guide activities that are not consistent with achieving the goals of the system. Trainers can use the feedback to build move exercise on the copy command into training classes.
og
le
Systems differ in term of their goals, components and characteristics.

The objective of one ball club may be to win game. To achieve this goal, it may recruit highly paid professional throughout the season to fill gap in the line up. In contrast the objective of another team may be to make money.
The measures of success that each club used to evaluate its performance vary. In first case game and player statistics help measure the ability to win game. In second, box office receipts are a measure of success.
pa
ge
s.
System change over time. Some of these changes occur because of identified problems. New business opportunities and new management directives. System may also change as a result of stresses. It is easier to deal with change within one subsystem than within the total system. Because stress may require rethinking existing work methods and organization. Another source of system stress occurs if inputs can not be monitored but the system is expected to produce the same quality of output. Although one way to deal with stress is by changing the activities of a subsystem.
co
System Stress and Change:-
Open systems operate in an external environment and exchange information and material with that environment. An open system needs to receive feedback to change and to continue to exist in its environment.
System can run down if they are not maintained. Systems entropy corresponds roughly to chaos or disorder a state that occurs without maintenance. The process of maintaining a system is a process of decreasing entropy or increasing orderliness. Sending automobile mechanics to training classes to learn new diagnostic techniques is an example of decreasing entropy.
http://handoutsuite.googlepages.com 1.4.4 Subsystems
1.4.2 Systems Concepts in Business
The system approach is a way of analyzing business problems. This approach views the business organization as a system of interrelated parts designed to accomplish goals. Each subsystem is both a self.
Operational systems, which are designed to provide information about day to day activities, are composed of subsystem that accomplish specialized task.
A mail-order business for example, need a system to process customer orders.
Contained unit and a part of a larger system.

Outputs and Inputs:-
1.4.3 An Information System as a System
/h
an
do
The major purpose of an information system is to convert data into information information is data with meaning. Information system that provide information that lets Management allocate resources effectively to achieve business objective are known as tactical systems. Finally, information system that support the strategic plans of the business are known as strategic planning system. An information system contains elements as hardware, software, personnel, databases and procedures to accomplish its objectives.
ut
su
it
e.
Fig.2 The firms Subsystems
tp
:/
The hardware consists of the computer devices that support data processing, communication processing, and other computer-related activities. Software consists of the instructions that the hardware uses to process information. Software includes both application software and system software.
ht
go
og
Fig.3. An inventory updates system procedure Inputs are sales order transaction and old inventory master file. Outputs are Sales listing, Reorder Report, New Inventory master
le
pa
ge
s.
An information system, like any other system, receives input of data and instructions, processes the data according to these instruction and produce outputs. This information processing model can be used to depict any information system.
co
Hierarchy of Subsystems
The subsystem with in an information system can be organized into a hierarchy to represent their functions within the over all system, each subsystem performs a specialized function.
1.5 Effect of the Systems Approach on Information System Design Systems approaches have a great implication for the design of Information System. All system has objectives. Objective may vary with respect to different owners. The design of an information system can be learn with help of an example of microcomputer dealerships. The entire enterprise has been organized into subsystems, including the marketing subsystem, the service subsystem and the administrative subsystem. Marketing subsystem promotes and markets products and services. When customers have problems they use the service subsystem, The administrative subsystem takes cure of billing customers, purchasing equipment and supplies from vendors etc. The marketing subsystem is managed by a sales manager who recruits salesperson, demonstrate and sell the equipment etc, The sales manager needs an Information system to provide feedback on how the system is working. This feedback makes it possible to review the procedures and activities of the current system. The sales manager also needs to organize personnel resources to achieve the desired objectives. Information system is needed to monitor and control the activities of the marketing subsystem. It is critical to achieving the objectives of the business.
iii) Internal Controls Good information system also have internal standards to make sure that data are processed accurately. Input control, another type of control is password security procedure designed to protect against unauthorized access and update of data. If unauthorized users update data files or if input data are not valid, managers may not even know that the output generated in report is invalid, and thus they may make decision using erroneous information.
tp
:/
/h
an
do
ut
su
ii) Subsystem Interfaces As with other systems, interfaces exist between the subsystems of an information system. Again the outputs of one subsystem become the input into the next. However, the next subsystem will be affected. If the price of an item is entered incorrectly during order entry, then the charges to customer, may be in correctly calculated during billing.
it
e.
ht
go
og
le
pa
ge
s.
i) System Feedback An information system provides system feedback to manager about day-to-day activities about deviation from planned activity. The information systems providing feedback that can be used to allocate resources effectively. Such as inventory and personnel are called Tactical subsystems.
co
Evaluate the alternatives
1.5.1 Using the Systems Approach in Problem Solving The system approach is a valuable method of problem solving that takes into account the goals environment and internal working of the system. The system approach to problem solving involves the following steps. Defining the problem Gather data describing the problem Identify alternative solutions Evaluate these alternatives Select and implement the best alternative Follow up to determine whether the solution is working.
The owner evaluates the extent to which each alternative enables the organization to achieve its objectives. After finding the alternative, then we evaluate these alternatives. The final alternative would offer customers additional level of service and technical support that add value to the firms products.
Select and Implement the Best Alternative
Follow up to determine whether the solution is working
Defining the problem
it
Gather Data Describing the problem
Identify Alternative Solutions
tp
:/
/h
For understanding the problem we gather data from environment, current standards, management, input resources, internal procedures etc. The environment deals with vendors, customers, competitors and the local community. Thus data are collected from the different sources that causes the problem.
su
an
do
ut
Once the data are collected about the problem. We should identify alternatives for solving the problem. These alternative might include the following.
ht
Investigate alternative manufacturers that produce products at a lower cost per unit. Decrease the cost of sales Differentiate the dealership products etc. Each alternative supports a slightly different strategy.
e.
go
Defining the problem is one of the most important parts of the system study because if the wrong problem is identified, the entire effort to change the system will be off track.
The last step in the system approach to problem solving is follow-up. The owner needs to determine if the system is meeting its goals. Every manager need feedback to determine if the goals of the system are being achieved. 1.6 Strategic uses of Information Technology
How information Technology Supports Business Activities
One of the first challenges managers face is understanding how they can use information technology to support business activities. Porter and Millars concept of the value chain helps in explaining which business activities can be analyzed and transformed through the use of information technology.
1.6.1 Using Information Technology for Competitive Advantage
Gregory persons introduced a three- level framework to help managers assess the current and potential effect of information technology.
Industry- Level Effect
Information technology can change the nature of the industry in which the firm computer. The introduction of information technology can affect: Products and Services Production Economics Markets 8
og
le
pa
ge
s.
After evaluating the alternatives, then we should choose the best alternative that will satisfy the business objective.
co
Functions of management & System concepts Firm- Level Effect
ht
Information Partnering It is the driving force behind the emerging electronic marketplace. The Electronic Market Place The Players in the electronic market place include suppliers and buyers retailers and customers and manufactures and dealers.
The strategic impact of the internet and electronic commerce
tp
:/
1.6.2 Inter organizational Systems Inter organizational systems have evolved to facilitate the timely exchange of information in a highly competitive market place.
/h
an
do
Information technology can enable even the smallest organization to augment its service to customers.
su
Using Information Technology to Improve Customer Service
it
ut
The Internet has become the major factor in electronic commerce.

e.
New information technology is fostering new business opportunities.
go
New Business Opportunities
Do Information systems provide a competitive edge?
The use of information technology is to identify competitive uses of technology that reinforce the firms basic capabilities. Shifting to capabilities based competition In capabilities based competition, competitive success depends on transforming key process into capabilities that provide superior value to the customer. An update to SABRE SABRE, the American Airlines on-line reservation system, was one of the first examples of an information system that was used for competitive advantage.
Therefore, the major trends affecting information technology and information services businesses are : Information system may no longer provide an enduring business advantage as most companies have built systems as a necessity. The age of building proprietary software for competitive advantage is over. The information utility is becoming more and more important.
og
Determining competitive strategy means understanding firms competitive position ,the competitive forces affecting it , and its overall business strategy.
Strategic Information systems: The risks The risks include * shifting the Balance of competition * Failure to upgrade the capabilities of a strategic system * Litigation
le
pa
ge
Defining Competitive Strategy
s.
co
At the firm level, the competitive forces facing the firm determine the effect of information technology. Five competitive forces which influence the profitability of an industry are: Buyers Suppliers Substitute Products New entrants Rivals The generic strategies that can used to achieve a competitive edge in an industry are: Low cost leadership Product differentiation
About the Internet Internet is a network of networks

An overview of Internet Applications
Some applications of Internet are : Information transfer and delivery services Information database Information processing service Business uses of the Internet Some of the reasons for using Internet to gain a presence in the electronic market place are Globalization Competitive advantage Information access Sales and Marketing
Computer System, DBMS, Networks & D S
2.1 OVERVIEW OF COMPUTER SYSTEM A complete working computer includes not only the computer but also any software and peripheral devices. It is a combination of hardware and software.
Computer power Measure of power of computer is its word size or how many bits of data can be transferred between CPU and memory at one time. Secondary Storage Media & Devices - Disk drives which are direct access devices and are of two general types :floppy drive (2) hard drive - Tape drives which are sequential access storage devices Input Devices For putting data into the system and of different types - Terminals - Devices using scanning technology eg: OCR - Pointing devices e.g.: mouse - Other input devices e.g.: light pen Output Devices For getting data out of the system - Display screens - Printers - Others include plotters and graphs
2.1.1 Computer Hardware Actual machinery used in a computer system To serve the varying needs, hardware comes in every conceivable shape and size, types of systems are Super computers Mainframe computers Mini computer systems Micro computer systems Professional workstations Laptop, notebook and palmtop systems Network computers Convergent computers 2.1.2 Basic components of computer system
In all these, data & instructions are stored in the form of bits i.e. by using 0 & 1. ASCII, EBCDIC codes can also be used. Memory capacity is measured in terms of bytes, kilobytes, megabytes, gigabytes etc.
ht
tp
:/
Central Processing Unit:- Brain of computer system - It contains control unit (CU) and Arithmetic Logic Unit (ALU) - Single chip containing CU and ALU, called microprocessor can be placed on a board often called as motherboard; heart of CPU. Memory:- Main memory within which data processed by the computer is stored and is fast, volatile and expensive; is also called Random Access Memory (RAM) - Secondary Memory is less expensive that RAM, so large volume of data can be stored but is slow. - Internal Read Only Memory used for booting purpose
ut
su
it
do
/h
an
e.
go
2.1.3 Computer Software It makes computer hardware apply itself to our problems and makes the system useful to us. It is classified as System Software - Manages the computer system hardware - Acts as linkage or interface b/w computer s/m and application program - It includes different programs such as 1. Operating system: - manages and controls computer resources and include supervisory programs, job management programs & i/p o/p management program. 2. Communication s/w:- It supervises functions such as communicating with remote terminals, monitoring communications equipment and lines 3. Systems utility s/w. 10
og
le
pa
ge
s.
co
Application Software: It performs specific data or text processing functions. They are of 1. 2. 3. 4. 5. 6. Custom versus commercial software Share ware and freeware Application program library Portable software Single user/multi-user programs Desktop suites
2.2 Database Management Systems

A database management systems (DBMS) is a collection of software programs that - Stores data - Organize the data into records - and allows access to the data in a uniform and consistent way 2.2.1 Components of a DBMS (i) Data Dictionary / Directory It contains the name and description of every data elements in the database. It also contain description, how data elements related to another. (ii) Data Languages Data description language (DDL) used to describe the characteristics of the data elements and data manipulation languages (DML) used to accessing data from the database.
Different programming language are used Machine language Assembly language Fourth generation language Query languages Report generators Natural languages Application generators
su
it
an
CASE TOOLS: - Computer aided software Engineering tools usually comprise a bundle of tools to help application developers complete their s/w development faster and better.
do
ut
tp
:/
/h
ht
e.
go
(iii) Teleprocessing Monitors It is a Communication software package that manages communication between database and remote terminals. (iv) Application development tools It is a program designed to help programmers develop application programs that use the database (v) Security software package It provides a variety of tools to shield the database from unauthorized access from viruses. (vi) Archiving, Backup and Recovery system Archiving programs provide the database manager with tools to make copies of the database. Backup systems automate making copies of data and work with recovery system. Recovery systems are tools to restart the database and to recover lost data. (vii) Report writers It allows programmers, managers and other users to design output reports with out writing an application program.
og
le
pa
ge
Development Software It allows programmer and other information system development personnel to create software for whatever jobs must be accomplished.
s.
co
11
(viii) Query Languages It is a set of commands used primarily for accessing data from a database. (ix) Multiple Platform Database Some vendors of DBMS software provide products that work on many different computer hardware and operating systems (x) Web server Software The software turns the computer system housing the database into web server and enable users with web connectivity to access the data. 2.2.2 The Database Administrator The responsibilities are Managing organizations data resources, includes database planning, design, operation, training, user support, security management and maintenance The DBA must persuade OWNERS to give up their data to a common database and this task may not be easy.
2.2.4 Database Models Four approaches have been implemented in commercial database products to organize records and their relationships.
(i) Hierarchical database model
(ii) Network database
go
(iii) Relational Database model
e.
su
it
do
Maintaining data consistency and security is an important role of the DBA.
ut
an
2.2.3 Views of the Data
(iv) Object oriented Database model
tp
Any database contain two types of data - Actual data - Information about the data
/h
:/
(i) The schema is a description of the logical view of database. A common tool used to design schema is an entity-relationship diagram. (ii) Subschema, a less comprehensive logical view of the database is the subschema. The subschema is the view used by an application programmer or a user.
ht
The data in the database have two views - Logical view - Physical view
og
le
It is the most dominant database model for developing information systems. It is organized in into a series of two dimensional tables Also it allows the manager the flexibility in conducting database queries and creating reports. It is bound together with its own data and a set of instruction that describes the behavior and attributes of the object. Objects use messages to interact with one another. Every object is described by set of attributes Objects that have the same set of attributes and methods are grouped into a class.
pa
ge
s.
Views all records in sets. Each set is composed of an owner record and one or more member records, similar to the hierarchy relationships. Hierarchical and network models are less flexible than other models.
co
Records are organized into a hierarchy of relationships, like a inverted tree pattern. Each record is related to others in a parentchild relationship. But child record would not have more than one parent record.
12
2.2.5 Advantages and Problems of DBMS Advantages Data sharing The data from the entire company are at the disposal of users who need them Reduce data redundancy A database minimizes duplication of data from file to file. Improved data consistency Because of data redundancy is minimized, data inconsistency is substantially reduced. Data Independence A database system keeps description of data separate from the application that uses the data. Increased Application programmers and user productivity Improved data administration and control Increase emphasis on data as a resources Problems Concurrency problems This problem will occur if system is not designed for multiple users and use it by more than one. Resource problems A DBMS requires extra computing resources Security problems A database must have sufficient control to ensure that only authorized person can access the data
3. Data warehousing It stores, retrieve, manage or otherwise manipulate massive amounts of data. It may contain data taken from the organization database as well as external sources. 4. Online analytical processing databases 5. Image databases 6. Document databases
2.3 Computer Networks

Computer networks have revolutionized our use of computers. Some reasons for the explosive growth in computer networks are - Cost of establishing the computer networks is less. - Many computer manufacturers now package networking software as part of the basic operating system. - Computer networks are becoming an integral part in the distribution of information. 2.3.1 Common network components
Hosts and Servers
it
e.
go
do
ut
su
an
/h
:/
1. Internet and Hypermedia databases Hypermedia database may consist of hypertext document that are internal to an organization and available on a companys own network. Usually referred to as an intranet. 2. Online databases A great deal of information is available to managers through thousands of commercial, government and non profit organizations computerized databases.
ht
tp
2.2.6 Specialized databases
og
Terminals or Workstations
Two types dump terminal : limited processing & memory intelligent terminal : has power to process data by itself
Protocol Converters
Modems Terminal Connection Equipment
Network Connection Equipment
le
May be a PC, minicomputer or mainframe In large networks, computers are often dedicated to special tasks such as file servers, print servers etc
Networks usually contain different standards. For devices of different protocols to communicate, we need protocol converters These devices may simply allow servers to broadcast to each terminal attached to the connecting device Also allow the terminals to reach the server Allow one network to connect to one or more other networks e.g. switches, routers, bridges
pa
ge
s.
co
13
2.3.2 Network Topologies Point-to-point (star) topology - All systems are connected to a terminal controller Mesh topology - Many paths between nodes Bus topology - All terminals connected to a shared bus medium Ring topology - Network made by connecting hosts P2P to form a ring Wireless topology - Systems are connected to hosts via wireless medium such as radio or infrared
2.4 Distributed Systems

2.4.1 Distributed Processing Distributed processing can be defined as a system in which both computer power and data can occur at more than one site and application are run at more than one site
2.4.2 Reasons for Implementing Distributed Processing
2.3.3 Network Types Local Area Networks Wide Area Networks Enterprise Networks International Networks
it
2.3.4 Reasons Managers Implement Networks -
ht
Network concerns for the managers
tp
Sharing Peripherals Sharing Data files Sharing Applications Reducing the costs of acquiring, installing and maintaining software Increasing Productivity Increasing Timely communication Permitting Expansion Increasing Management Control
ut
su
e.
go
2.4.3 Distributed Processing: Concerns for managers
/h
an
do
:/
Network reliability Network response time Network costs Compatibility Network access and security
og
le
Lack of professional MIS staff The local employees may lack the knowledge or skills to manage their computing resources Standardization Documentation Application programs development at remote sites increases the risk that these programs may not be fully documented Data loss Security Data Consistency System maintenance
pa
ge
s.
co
Improved Response time When data and processing power are located close to users, response time improves. Reduced costs Keeping data needed by one user with that user eliminates transmission costs Improved accuracy Reduced mainframe costs Smoother growth Increased reliability Resource sharing Increased user satisfaction
14
Study of Operational Info. System & Decision support system
3.0 Operational Information System Nature of Operational Information System:It produces a routine, discipline, expected and objective data that describes the past activities. The produced information is generally detailed, lightly structured, accurate and derived fro internal sources and are produced regularly. 3.0.1 Management Advantages of Operational Information System. Reduced Cost: - It reduces the cost of operational information system and helps an organization become a new cost leader and improve its competition position. Increased speed: - Operational tasks are completed faster and hence increase the service levels of the organization. Increased Accuracy: - Reduces errors while copying data from one to another record. Hence increases accuracy. Increased Customer Service: - Provides an improved ability to respond to customers unique product or service needs.
Financial Accounting System Composed of series of software modules which are used respectively. System modules are : (general ledger, fixed assets, sales order processing, Accounts receivable, accounts payable, inventory control, purchase order processing, payroll) When integrated each system receives data from some system and provides information as output to other system
Importance of decision making
do
ut
Components of financial accounting system General ledger system Fixed assets system Sales order processing system Accounts receivable system Accounts payable system Inventory control system Purchase order processing system Payroll system Financial accounting software 3.1.2 System
su
it
e.
go
og
/h
Increased data for decision making: - Produces reports that compare, extrapolate, and otherwise message level operation that help decision making look easier.
an
ht
3.1 We are going to discuss four different information systems, namely Finance, Marketing, Production and Human Resources.
tp
:/
3.1.1 Operational accounting and Financial Information System. Task oriented. Processes financial functions to produce the routine and output that are essential for every organization. Includes paychecks, checks to vendors, customer invoices etc.
le
Planning and developing new products. Advertising promoting selling storing Distributing providing financial benefits and credits
pa
Operational Marketing Information
Goal is to satisfy the needs and wants of the customer. To achieve this marketing personnel are engage in activities like:
ge
Ease in decision making by broad comparison.
s.
co
15
http://handoutsuite.googlepages.com Used to identify and target specific customers or property from large database. Requires large data base called data warehouse. The data are sorted and messaged or m Purpose of determining a customer database to identify new marketing opportunities and to allow marketing dept. to focus on sales, advertising and promotional campaigns.
Some Examples
Sales force automation system Designed to increase the productivity of sales people Bread and butter sales activities usually include identifying potential, contacting customers, calling on customers, making sales pitches, doing the sale and following up an sales. It may address only the administrative tasks of sales people. It may support sales process itself.
do
ut
su
it
Contact Management system Provides information to sales force pertaining to customers, their product preference, sales listing and historical data.
ht
Prospect Information system for locating potential customers stored in the magnetic media, hence easier for sales person to search or summarize 15 output may include list of prospects by location, by product category, by income or guess resource and by other classification
/h
an
tp
:/
Micro marketing and data warehouse system Pitching sales as advertising campaigns to vary narrowly defined customer targets is called micro marketing.
e.
go
Direct mail advertising system Advertising by means of mailing sales brochures and cartridges directly to customers using this. Point of sales system another fact of the order ca system it captures data about orders at the point of sales and found in fast food chain stores etc Delivery tracking and routing system Use of satellite based global pointing system(GPS) to monitor the movement location of every vehicle in their f some provides tracking system Electronic shopping and advertisement Enables firms to advertise via TV, radio and Internet. Virtual shopping:- enables people to view and select and purchase products and services from store using electronic means Technology is a virtual environment that is shared by many users in which they can interact.
og
le
pa
ge
Operational Marketing Information System Includes system such as : Sales system Advertising system Sales promotion system Warehousing system System collects data that describe marketing operation process those data, make marketing information available to marketing manages to help decision making. It must be coordinated with other organizational information system such as purchasing system, production system inventory system accounts system, credit system and order entry system
Telemarketing system use of telephone to sell products and services. Enables salespeople to initiate contact, offer products and services Usually include support for the automatic dialing of parties or delivering voice messages to answering under the control of a computer system Telemarketers use electronic directories and online database to gather names, address, telephone numbers It usually provides computer support for identifying customers and automatically calling them
s.
co
16
3.1.3 Operational Production Information System designed to produce the goods and services to meet marketing system projections supports decision making for operation, allocating and planning include continuous flew production, mass production job order production and project production, also include production of services. Purpose is to acquire the raw materials and purchased test the quality, acquires human resource, space and equipment, fabricate the product, test the product
Cost accounting system It monitors their major resources : Human resources Materials and equipments Facilities Inventory control system management and control of raw materials, goods-in-process and finished goods inventories It uses information from operation information systems Tools used to manage inventories. - Re-order point system - Economic order quantity (EOQ) Automated material handling system track, control and support movement of raw materials Computer aided design and manufacturing system software that needs product engineers in computer aided design/computer aided manufacturing (CAD/CAM)
Quality control system provides information about sales of production goods as they moved from the raw material state, through goods in process ensures that the raw materials used meets the standards data can be controlled using step flow data collection system, they are connected to a factory local area network (LAN) Management approaches that require organization to improve quality are justin-time and total quality control system
an
do
ut
Receiving system supplies information about purchased goods, supplies received, that are opened, inspected and verified against purchase orders and that information is passed to that accounts payable.
su
it
Slipping systems records and documents are used to assist and monitor in the slipping inventorying process
ht
tp
:/
/h
e.
go
Image management systems Designed to manage the storage and retrieval of engineering and architectural drawing using optical storage media. Material selection system program that aid in choosing materials for product under design called material selection programs (MSP)
og
Purchasing system maintain the data on all phases of acquisition of new materials and purchased in production
le
pa
ge
s.
co
17
3.1.4 Operational Human Resource Information System Responsible for: recruiting, assessment, solution, placement, training, performance appraisal, compensation and benefit, promotion, termination, occupational health etc. To manage this, it uses computer based human resource information system (HRIS) Position control system To identify each position in the organization, the job title, employee currently assigned to the position Employee information system set of employee profile records, or employee inventory contain personal and organizational information Performance Management system supply the data to evaluate a employee evaluation done uniformly and periodically
3.2 Tactical and Strategic Areas of Operational Information Systems

Tactical information systems support managers in the allocation of resources to meet top managements goals. Strategic planning information systems in contrast, support the settings of organization goals. These are many applications of information systems to tactical and strategic planning in business and organizations. We briefly describe applications to tactical & strategic planning decisions in FINANCE, MARKETING, PRODUCTION and HUMAN RESOURCES. Tactical Information System: They support management decision making They provide managers with regular summary reports, regular exception reports, ad-hoc reports. Strategic Information System: They are goal oriented They support direction organizational goal. 3.2.1a Tactical Accounting Information Systems They include 4 examples are i. Budgeting Systems:- Permits managers to track actual revenues and expense and compare these amounts to expected revenues and expense. Cash Management Systems:- Important functions of Financial management include ensuring that the organization has sufficient cash to meet its needs, putting excess finds from only period to use through investments and providing borrowing power to meet the organizations cash needs in periods of sufficient cash flow.
go
og
le
pa
ge
s.
co
su
it
e.
settings
&
and
Financial
Training system Information to reduce the cost of training new employee as updating experienced employees. Includes mgmt. of training software, sales training, computer training software and record processing Use of human resource department use s/w to design computer based training.
ht
Application selection and placement system Goal is to achieve the application solution and placement system is to assist the human resource staff in their task
tp
:/
/h
an
Government reporting system responsible for information supply for production of reports required by my governmental laws and regulations
do
ut
ii.
18
iii.
Capital Budgeting Systems: Contains information about planned acquisition or disposal of major plant assets during the Current year. They are compared the spending plans using 3 evaluation tools, they are 1. Net present value (NPV) 2. Internal rate of return (IRR) 3. Payback period. Investment Management Systems: It oversees the organizations investments in stocks, bonds etc. It is an important part of cash management.
3.2.2a Tactical Marketing Information Systems They produce information on regular basis. They produce ad-hoc reports. Provide summary information. Create unexpected as well as expected outputs. They include 5 example areas.
iv.
su
i.
Financial condition Analysis systems:-
it
e.
It includes several types of information systems. 1. Internally generated financial condition analysis. 2. Externally generated. 3. Forecasts of the future. This includes two example areas.
go
ii.
Long-Range Forecasting Systems: These systems affects organization performance in the future. Forecast, include descriptions of part activities. Data on the present economy. Forecasts of the future economy.
/h
an
These are computerized accounting systems. They provide user with many reports and ratios.
do
ut
:/
og
They provide information to set prices for products and services. To know about the pricing decisions, the manager should be aware of its demand. By decreasing the price on organization can increase the market penetration. iv. Distribution Channel Systems: They provide information on the costs of using various distribution channels. Also the time lags caused by channels. The market segment saturation by channels.
ht
tp
v.
le

Competitive Tracking Systems:They provide information about competitors. They may be available through news papers or journals. Push service helps to collect competitor data most easily.
pa
3.2.1b Strategic Accounting and Financial Information Systems
They provide how sales territories should be shaped How the sale force should be allocated within those territories. What emphasis should be placed on the products offered and served. ii. Advertising & Promotion System: They decide which advertising media & devices to use to reach the selected market segments. When to use these to reach the goal. iii. Pricing Systems:-
ge
s.
co
i.
Sales management systems.
19
3.2.2b Strategic Marketing Information Systems This include segmenting the market into groups. It is based on some common characteristic and needs This includes 3 areas.
ii.
Just in Time systems:They eliminate waste in the use of equipment parts, space workers time. They occur when they are required to maintain the production schedule. Capacity planning systems:They provide the information at the right time to meet the planned production They provide an overall estimate of capacity needs. Production scheduling systems: They are used to allocate the use of specific production facilities for the production of finished goods. A number of scheduling tools have been developed.
iii. i. Sales Forecasting Systems: This includes forecasts for sale for the whole industry organization, each products. Production manager plan the purchase of raw materials They are regularly received based on data from the financial operating system due to errors. Marketing Research Systems: They conduct-trend analysis of industry sales of products and services. Analyzing population and target-group characteristics. Analyzing and identifying consumer performance. Determining and analyzing customer satisfaction. Product planning & Development system They provide information about consumer preferences. The output of this is a set of product specification
ii.
it
e.
go
su
v.
iii.
/h
an
do
ut
3.2.3a Tactical Production Information Systems They provide data necessary to plan, organize, operate, monitor, control production systems. Production costs are a major component of any organization This includes 7 areas.
tp
:/
vi.
i.
Materials requirements planning systems: They use a set of programs that use data from the master production schedule. They perform a great deal of calculation and record keeping 20
ht
og
iv.
le
Product Design & Development systems:They facilitate a product that meets perceived needs of custormer. They provide the company with important competitive advantages Manufacturing resource planning systems:They provide material requirements planning They access cost accounting data through integration They use market projections to generate inventory requirements Computer integrated manufacturing systems:They include process control sensors and systems. They eliminate the islands of automation created.
pa
ge
s.
co
iv
3.2.3b Strategic Production Information Systems They provide support for top management level production decisions. They includes 4 areas. i) Site planning and selection systems: They rely on a variety of internal and external sources Internal include resource information systems financial and production systems. ii) Technology planning and assessment systems: They have access to information on new production technologies It allows top management to make better and more informed decisions about which production technologies touse for a product or services. iii) Process positioning systems:It is the span of production process It decides to perform for any given product or product line. Decisions of this nature are called process positioning
i.
Job analysis and design systems:It describes the jobs needed in an organization and the qualities of the workers needed to fill those jobs These tasks involves the development of job description for every type of position in an organization. Recruiting Systems:It provide the organization with a bank of qualified applicants from which it may full vacant positions. It identified through the position control system and described by the job analysis and design information system. Compensation and benefits systems:Include hourly wage plants, piece-rate plants, incentive pay plans, merit pay plans, monthly salary plans, commissions and profit sharing. Succession planning system An important role of human resource department is to make certain that replacement for key organizational personal are available. It provide the appropriate training and experience to fill openings
ii.
ut
su
it
e.
iv)
/h
Plant Design systems:It requires large amounts of diverse information about processed plant, including engineering data on the proposed site.
an
do
People are the most basic and the most important component of any organization Human resource management (HRM) is critical to the organization success. They include 4 example area.
ht
tp
3.2.4a Tactical Human Resource Information Systems
:/
go
3.2.4b Strategic Human Resource Information Systems Human resource planning ensures that the organization has the right kinds and right numbers of people at the right place at the right time to achieve its objects It includes 3 example area. i. Workforce planning systems It involves identifying the human resources needed to meet the organizational objectives. It specified in strategic plan and that means forecasting the supply and demand of the required workforce.
og
v.
le
pa
iv.
ge
s.
co
21
ii. Information systems Supporting labor negotiations Negotiating with craft, maintain, office and factory unions requires information gathered from many of human resources information systems. They need information form the financial accounting system and from external sources, including competitor wage agreements and appropriate economic data. iii. Other strategic uses of human resource information systems:It support strategic decisions. Examples : Organizations that are planning to restructure, down size sell off decisions or merge with other organizations need to know what impact these decisions will have on their work force profiles, the overall cost of their personal and the specific cost of benefit plans. Such as retirement and health plans.
Attributes of Decision maker - perceptual ability - information capability - risk taking propensity - aspiration level 3.3.1 Strategies for Decision making Maximizing When the outcome of a decision is clear and alternatives are well established, the decision maker will make decisions that maximize the desired outcome. Satisfying A decision maker will setup a reasonable aspiration level and search for possible alternatives until he finds one that achieves this level Incrementalizing He attempts to take small steps away from the existing toward a desired state. 3.3.2 -
3.3 Decision Support Systems
Characteristics of the Decision making process Phases of decision making (i) Intelligence - Decision maker searches for conditions calling for a decision (ii) Design - Develops and analyzes alternative courses of action (iii) Choice - Select the best alternative Types of Decision problems - Structured : well understood - Semi structured : uncertain, complex & unstable
an
do
Decision support system is a new concept of information systems. It enables the decision maker to apply the right decision rules to a problem
ut
su
it
ht
tp
:/
/h
e.
go
3.3.3 Components of Decision Support System 1. Data components: Right data must be available and the data can be manipulated in the desired fashion 2. Building a data warehouse: A data warehouse is a data with which managers can make fact based decisions, addressing many business issues. 3. Data mining & Intelligent Agents: Managers use tools that enable them to access and to query the data they need. This process is called data mining, and the tools are referred to as intelligent agents. 4. Model components: Helps decision makers understand a phenomenon about which they are making a choice. 22
og
Features of Decision Support Systems Support of semi structured decisions Support for database access and modelling Support for all phases of decision making process - Support for communication among decision makers - Availability of control aids for decision making
le
pa
ge
s.
co
3.3.4 Development of decision support system Development of decision support systems requires an adaptive design process that involves the interaction of user & builder with the information system.
User
3.3.5 Decision support systems Development Life This includes many phases of the decision support systems development process. They are
Planning
Application Research
Analysis
Process of Evaluation System Evaluation of system capabilities Designer
og
le e. go su it ut an do /h ht tp :/
pa
ge
New user
New Versions
Design
Construction
Testing
Evaluation
Training
Operation
Maintenance
Adaptation
s.
co
23
User learnings
Feedback about needed changes
pa
Risks of decision support systems - Lack of quality assurance - Lack of data security - Failure to data security - Failure to understand design alternatives
ge
Knowledge acquisition subsystem
s.
co
Decision maker
go
og
3.4 Artificial Intelligence & Expert Systems

Artificial Intelligence is concerned with the creation of computer programs that do things that require intelligence The field of AI includes natural language processing, robotics, machine vision and expert systems
Expert: Knowledge Engineer
su
it
e.
Advantages of Expert systems Can capture the knowledge of an expert & serve as an expert consultant in the absence of a real expert. Can provide advice that is more consistent that the advice of consultants Can be trained to process information more efficiently and to provide a recommendation more quickly than its human counter parts Its knowledge can transferred and reproduced Less expensive than actual experts
The knowledge base: contains informations and rules of thumbs that the expert system uses to make decisions. The inference Engine: Conducts the dialogue with the user, asking for information and applying it. The knowledge Acquisition & Explanation subsystems: New rules can be added to the knowledge base by using the knowledge acquisition subsystem. The explanation subsystem explains the procedures that are being used to reach a decision.
ht
tp
:/
Components & Characteristics of Expert Systems
/h
Expert systems development is the application of AI that is having the greatest impact on the business community
an
do
ut
Limits of Expert systems Cant truly replace experts Not truly intelligent Cant demonstrate commonsense Expert system tools LISP Expert system shell 24
le
Components of Expert Systems
3.3.6 Benefits of Decision support systems The ability to examine more alternatives The ability to achieve a better understanding of the business The ability to respond quickly to unexpected situations The ability to carryout ad-hoc types reporting and analysis The ability to support timely information for control of ongoing operations The ability to save time and costs The ability to make better decisions
Knowledge is represented in an expert system in the form of rules or in the form of frames.
Explanation Subsystem Knowledge base
Inference Engine
Information systems planning & organization of data processing
4.1 Information Systems Planning Strategies Strategic planning information systems are designed to provide top managers with information that them in making long range planning decisions for the organization. Information planning methods:METHOD Business systems Planning (BSP) Critical success Factors (CSF) Ends/Mean s (E/M) Analysis PURPOSE To specify problems & decisions DEVELOPER IBM
4.1.1 Critical success factors (CSF) CSF method, developed by John Rockart of the Massachusetts Institute of Technology, addresses the information needs of senior management. E.g.:- In the automobile business, manufacturing cost control is an important critical success factor. Advantages of CSF It enables managers to determine their own critical success factor and to develop good measures for these factors. 2. The CSF method accommodates changes in competitive strategy, business, environment and organizational structure. Limitation of CSF
it
an
The manager-by-wire environment means being able to modify business plans based upon changes in market conditions.
do
ut
Managing by Environment
wire
in
complex
business
su
tp
:/
An enterprise must create learning loops that enable it to changes in the external environment. The learning loop includes : Observation Orientation Decision Action
/h
ht
e.
go
To specify effectiveness Criteria for outputs & efficiency criteria for processes
4.1.2 Business systems Planning (BSP) BSP method assists a business aim developing an information systems plan that supports both short and long term information needs. Note: - One of the underlying objectives of BSP is to develop a data architecture that supports information systems development activities. The major activities that are involved in a BSP study are these: Mail a commitment Prepare for the study Hold a kickoff meeting Define business processes Define data classes Determine executive perspective Assess business problems Define an information architecture
Uses of learning loops :1. Used to generate feedback to suppliers 2. used to identify the information requirements of managers
og
It focuses on manger specific information needs rather than on organization wide information requirements.
le
Wetherbe
pa
ge
To define critical Success factors
Rockart
s.
co
1.
25
Determine priorities: Information architecture helps identify a number of system development projects. This project needs to be prioritized according to their benefit, impact, success and demand. Review information systems management Develop recommendations and action plans Report results In action plan the first sub system project is scheduled for development, appropriate MIS personnel are assigned, and the project justification is completed.
Provide customer details
Promptly provide credit to qualified customers. Quick response and reduction of customer complaints
Customer credit status & payment history Report of no & type of complaints by customers and average time to resolve complaint.
ENDS Full customer orders
ht
Ends/means analysis MEANS EFFICIENCY Process Low orders transaction cost Low Process transaction credit cost request Make Minimize shipment shipment costs
Cost per transaction with Historical trends Shipping cost categorized By order, customer and region EFFECTIVE INFORMATION Summary and Customer exception reports on orders customer deliveries developed comparative statistics when expected, and on delivery service vs. as soon as or competitions. sooner than competition.
tp
:/
/h
an
do
INFORMATION Cost per transaction With historical trends
ut
su
it
The purpose of E/M analysis is to determine effectiveness criteria for outputs and to specify efficiency criteria for processes used generate outputs.
STRATEGIC ISSUES How will information processing be organized
og
4.1.3 Ends/Means (E/M) Analysis
le
One of the major strategy decisions that senior management must make is how to organize information processing to make it responsive to the needs of the organization
pa
ge
e.
go
What project management guidelines must be followed by user managers in accomplishing local What will be the projects? respective roles of our training and managers and What information systems professional development strategies are needed to professionals prepare information professionals What skill will user processing for their roles? mangers need? What skill will information processing professionals need?
Organization and management issues in the MIS planning process.
s.
4.2 Organizing the Information System Plan
co
Ends/means analysis for order processing
TACTICAL ISSUES
26
4.3 System Development Process The steps involved in designing an information system are known as the system development methodology. It establishes a set of procedures that confirm with a life cycle. Reason for introducing a system development methodology is to make sure that users have an opportunity to review and to signoff a system requirement at each phase in life cycle. These checkpoints make it possible to detect and correct errors at the end of each phase of the project.
Detailed design: Development of specifications for the physical system including report design. - Design of program specification. - Development of a implementation and test schedule. Implementation: Coding and documentation of programs - Evaluation and selection of hardware - Development of security audit and control - Development of training programs Maintenance: On-going support, changes and enhancements for the system
ut
su
it
do
e.
go
Structured System Analysis and Design Major objective is to determine the exact system requirements so that right system is designed. Advantages It helps analysts to catch errors early. It uses tools that depict a logical model of the current system and proposed system that user can clearly understand. Steps followed are :> Study the current physical system Build the current logical model Analyze the objectives of the new system Derive a new logical model Draft alternative designs Finalize the new physical system
ht
tp
System Analysis: Detailed study of current system, including its procedures, information flows and methods of work organization and control. - Development of a logical model of the current systems.
:/
/h
an
System Design: Development of objectives for the proposed system - Development of a logical model of the proposed system, including process, logic definition, logical data dictionary and logical database design. - Evaluation of alternative design options - Development of a cost benefit analysis to evaluate the economic implications of each alternative.
og
Problem Definition: Examination and evaluation of problems of the current system. Feasibility study: Development of objectives and a logical model of the proposed system. - Preliminary analysis of alternative design options, including the technical and economic feasibility of each alternative - Development of recommendation for the system project including a projected schedule and proposed costs.
le
pa
The steps and key activities to be accomplished at each phase of system development life cycle are :
The major objective of system analysis is to understand the current system and to determine the importance complexity and scope of problems that exist. This phase involves collecting data about what is being, why it is being done and what major problems have developed Some of way is called data in a system study is to conduct an interview or to use questionnaires.
ge
s.
4.3.1 System Analysis
co
27
Systems analyst uses information collected from interview and other data collection efforts to develop a logical data flow diagram of the present system. It illustrates system processes information flows, data requirements using easy to understand graphic symbols. This logical data flow diagram of the proposed system becomes the basis for developing and evaluating alternative design options for proposed system.
Time sharing services : In this situation , user pays only for the computer resources including processing time and access to computer programs. Service bureaus :- They provide services ranging from full scale support for applications from accounts receivable and payroll to data entry and distribution of output. 4.3.3 Software Development Alternatives In-house software Development Advantages Can manage and control the program development process Internal professionals can serve unique user requirements Internal system designers can provide more effective training evaluation Disadvantages: Time and cost greater In-house staff may lack specialized experienced needed for projects Software houses: Advantages : - Can contract and pay for specific services that are needed - Can obtain experts to do design Disadvantages : External project management including time, cost and performance considerations. - Implementation may be difficult for outsiders Software packages : Advantages : - Saves time and cost - Availability of detailed documentation and training materials. Disadvantages : - Packages may not fit user needs. - May incur time and cost necessary to modify the package to meet users needs. 28
Batch processing uses a central computer system to process all transactions against a central database and to produce reports at fixed intervals. Online processing transactions can be keyed in at terminals at remote sites and transferred to computer system via telecommunication channels. Distributed data processing Local transactions can be used to update local files and summary results can be transmitted to central system. Decentralized processing A dedicated mini or micro computer with its own database can serve as a decentralized processing. Improved manual operations : 3 major computer design alternatives that should be considered are acquiring an inhouse computer system, using a time shared service or contracting for service An in-house computer system A number of in-house computer options exist, including main frame based minicomputers and microcomputers, whose choice depends on processing requirements, nature and scope of applications
ht
tp
:/
/h
an
do
ut
su
it
e.
go
og
le
pa
Range of alternatives to be considered in developing system design proposal is the mode of processing that system will support. Processing modes include :
ge
s.
co
4.3.2 Evaluating alternative Design Options
4.4 Alternative Application Development Approaches Users are responsible for an analysis of alternative design options and for an assessment of project risk once on alternative design option is selected, a coast benefit analysis is used to determine the economic feasibility of the proposed system. Human factors must be taken into account in designing and implementing an information system.
(iii) 1. Strategies to Overcome Development Bottleneck the System
(i)
Software packages Software packages provides economics of scale in development and maintenance. Advantges - Economics of scale in development - Economics of scale in maintenance Disadvantages - Major modifications may be necessary - May require hardware upgrades or additions
it
e.
:/
/h
an
do
ut
su
(ii)
Prototyping Prototyping is the process of developing a model of the proposed system design and working with the user to modify it until the users requirement are met. Prototyping may be used in design and implement an information system using a fourth generation language.
ht
tp
go
Three factors to consider in evaluating projects that are candidates for development using one of these approaches. The factors are as follows. Commonality Impact Structure
og
Three alternative development strategies can substantially decrease the systems development bottleneck. They are as follows:
User development systems usually address specific individual or departmental level information needs and would not be developed by information systems professional Advantages Increases user satisfaction Provides user with needed decision support systems Allows ad-hoc query and reporting Addresses specialized problems Disadvantages Doesnt attack the backing problem Questionable cost effectiveness Inferior development methods Poor transferability of system Poor quality assurance
le
pa
ge
s.
User development systems.
co
Advantages Rapid development of a working system Step by step refinement of designs Cost 25 percent of traditional approach Allows experimentation Disadvantages Unending iterations may occur Fourth generation language products require excessive machine resources Not realistic for high volume transactions systems of information
29
2. Project Management and Control One of the major responsibilities of a project manager in information system design is project management and control. The project managers first duties are to define the tasks to be accomplished the order in which they should be done and their dependence. Once activities and completion dates have been established, the project manager should prepare a project management plan showing all these activities Technique used are as follows (i) Gantt chart
(ii)
Project Network
3. A Portfolio Approach to Project Management One of the issues in information system development is how to access risk Three major risk factors are (i) Project size (ii) Experience with the technology and (iii) Project structure. Management strategies to minimize project risk include (i) External integration tools Selection of user as project manager Participation of user aon steering committee User responsible for approving changes in design
/h
an
do
ut
Show interdependencies among tasks Can detect a tasks impact on the overall project
su
it
tp
:/
e.
go
Both non systems personal and project participants can understood it. Shows estimated start and end dates for major tasks Doesnt shows inter dependencies.
Selection of experienced DP professional as project manager. Regular reviews of project status Selection of team members with previous work relationships (iii) Formal planning tools Use of network project management tools Selection of project phase and activities Formal project approval processes (iv) Formal control tools Comparisons of project with plans Development of strategies for change control Regular presentations on outcomes Four major types of projects they are as follows (i) High structure-low-technology:Relatively low risk because the outputs are well understood and the technical problems are familiar (ii) High structure high technology :Require technical expertise and effective internal integration (iii) Low structure low technology:Require user involvement and direction to reach consensus on project design specification (iv) Low structure high technology Project have the great risk and internal integration is necessary
4. Cost Benefit Analysis To determine the economic feasibility of various system design alternatives The best way of measuring the financial impact of an information system design project proposal. The benefits of an information system have to be measured in term of their business, impact and arc of two types and are follows. (i) Tangible benefits Fewer processing errors, increased throughput. Decreased response time, elimination of job steps 30
ht
(ii)
Internal integration tools
og
le
pa
ge
s.
co
5.
tp
:/
Transforming Logical Specifications into Physical Specifications Structured design is the process of taking a set of logical specifications for the proposed information system and transforming them into a set of physical specifications. One of the major objectives of good structured design is reusability. Organize processes into a hierarchy of modules using the structure chart as a output data. Physical design specification for the system, include the design of reports, screens and forms. The detected data dictionary for the proposed system is also created during this phase.
/h
an
Reduced expenses, increased sales Faster turnaround Better credit, reduced credit losses (ii) Intangible benefits Improved customer goodwill, employee morale Improved job satisfaction Better customer service and decision making The cost of information system include the following : (i) Development costs : includes following System analysis and design Coding testing and debugging Training and conversion Inspection and walkthroughs Documentation (ii) Equipment costs :Includes following New equipment Packaged software Equipment installation testing and debugging Materials and supplies (iii) Operational costs : Includes following Equipment and personal cost Overhead and computer program maintenance Standby facilities and training
Program specifications would be given to the programmer along with the data dictionary. Documentation is one of the critical aspect of an information system and tells the systems design and construction and its objective. Implementations
6.
7.
do
ut
su
it
e.
go
4.5 Organization of Data Processing

Different ways of organizing computer related information has evolved for the past 25 years. The information resources within a firm can be organized centralized as well as decentralized. They are managed centrally and locally. The computations are thus organized and managed in centralized, decentralized and distributed environments 1. Centralized data processing Here a large mainframe computer system supports multiple users and multiple programs. Users access the resources via hundreds of remote computer devices, including terminals and printers.
ht
og
User Involvement in System Selection One of the major responsibilities of user information systems development is the evaluation of design options and include RFP followed by the evaluation of software and hardware design options.
le
pa
ge
s.
co
The implementation phase of the project includes programming, testing, training, conversion and documentation.
31
Advantages of centralized data processing It allows economics of sale. Provides access to large scale capacity for many users. More professional operations and management. Provides multiple access to common data, security, control and protection of data. Better recruitment and training of specialize personnel Centralized approach provides a rich carrier path. It controls the data processing expenses.
Disadvantages: Loss of central MIS management control Incompatible data, hardware and software Failure to follow standard systems development practices. Duplication of staff and effort. 3. Distributed data processing In decentralized data processing users want more control over processing activities. But it may lead to inefficient operation and duplication of processing expense. By distributing processing activities to users the problem of organizing the data is controlled. Merits of distributed approach
e.
ut
2.
Decentralized data processing
su
it
go
ht
tp
:/
Here local systems and operations develop and manage programs for computer operations. The main motivation of decentralized data processing is local control of hardware software and data It responds to the need of users. Decentralized processing reduces telecommunication cost. It provides better access to local data.
/h
The advantages are :-
an
do
In a decentralized environment mini or microcomputers support local applications
og
Examples of organization performing distributed data processing Financial service system Retail point of sale system Accounts receivable system
le

Lack of user control over systems development and operations. Limited responsiveness to small development projects. Frustration with corporate charges for DP services.
pa
Disadvantages of centralized data processing
Computer power and data can be distributed to local sites. Provides distributed responsibility to users.
ge
s.
co
32
Function of data processing organization mainly includes Systems development Operations Technical support
DIRECTOR OF INFO. SYSTEM SYSTEM DEVELOPMENT SYSTEM ANALYSIS PROGRAMMING TECHNICAL SUPPORT
ht
tp
:/
/h
an
do
ut
USER TRAINING
su
COMPUTER OPERATIONS
it
DOCUMENTATION
e.
go
DATA ENTRY
og
le
DATABASE ADMINISTRATION DATA COMMUNICATON
pa
PRODUCTION SUPPORT
SYSTEMS PROGRAMMING
ge
s.
OPERATIONS
co
33
4.6 System Security and Ethical Issue Basic objectives of information security includes To control the loss of assets Ensure data integrity and reliability Improve efficiency of information system
Ethical Issues 1. Areas of ethical issue Privacy, property, accuracy and access. Ethical behavior is the legal behavior that I in violation of a contract Privacy, access and accuracy issue Organizations review the emails of their employees. Caller ID services of telephone system permits the level of services, reduce absence calls. Property issue
2. 1. Risk :- The potential loss to firm - Monetary losses e.g.:- when printer is stolen 2. Threat Actions, events or losses that trigger losses - Natural disaster, say fire, flood, earthquake. - Employee error e.g.: reformatting hard drive - Computer crime, fraud and abuse - Hacking and computer viruses - Toll fraud 3. Common controls Countermeasures to threat - Physical control Use physical measures eg:- door lock, keyboard, locks, fire doors etc. - Electronic control Motion sensor, heat sensor, humidity sensor. - Software controls Include programs to identify, prevent or recover from errors. - Management control eg: Back up data at regular interval and to backup copies to secure sites.
3.
su
it
e.
go
4.
og
ut
do
5.
Securing database information system - Threats include loss of data by disgruntled or poorly trained employee or by viruses. - Common controls includes antivirus software backup copies of data, off site storage, appointing a database administrator, encryption
ht
tp
4.
Communication system is secured by encryption, electronic commerce safety, firewalls and network auditing software.
:/
/h
an
le

pa
Its unethical to copy software developed in another and selling it. Ethical behavior means not copying or using software illegally or without compensating the developers. Property right cover intellectual and tangible property Guidelines to reduce piracy, privacy invasion and unauthorized access Not using computer to harm people, network steal to bear false witness Not use proprietary software which you have not paid Use a computer that ensure considerations and respect for fellowmen.
ge
s.
co
34

Mis

Hochgeladen von

Dokumentinformationen

Originalbeschreibung:

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Mis

Hochgeladen von

Copyright:

Verfügbare Formate

Functions of management & System concepts

MANAGEMENT INFORMATION SYSTEMS

Functions of management & System concepts

The levels of management consist of:-

1.2 Levels of Management

Fig1. A Framework for Information Systems

Management Info. Systems Module 1

Functions of management & System concepts

Detailed nature: The information is very

Great accuracy: The accuracy of the data used

as input and of the output produced is very high.

Exception reports warn managers when

Management Info. Systems Module 1

Functions of management & System concepts

1.3.4 Sequence of Development of MIS

Functions of management & System concepts

http://handoutsuite.googlepages.com System Entropy:-

How A System Works?

Negative feedback is designed to correct or

Systems differ in term of their goals, components and characteristics.

System Stress and Change:-

Management Info. Systems Module 1

Functions of management & System concepts

http://handoutsuite.googlepages.com 1.4.4 Subsystems

1.4.2 Systems Concepts in Business

Contained unit and a part of a larger system.

1.4.3 An Information System as a System

Fig.2 The firms Subsystems

Management Info. Systems Module 1

Functions of management & System concepts

Management Info. Systems Module 1

Functions of management & System concepts

Follow up to determine whether the solution is working

Defining the problem

Gather Data Describing the problem

Identify Alternative Solutions

Functions of management & System concepts Firm- Level Effect

Using Information Technology to Improve Customer Service

The Internet has become the major factor in electronic commerce.

New information technology is fostering new business opportunities.

New Business Opportunities

Do Information systems provide a competitive edge?

Defining Competitive Strategy

About the Internet Internet is a network of networks

Computer System, DBMS, Networks & D S

Computer System, DBMS, Networks & D S

2.2 Database Management Systems

Management Info. Systems Module 2

Computer System, DBMS, Networks & D S

(ii) Network database

(iii) Relational Database model

Maintaining data consistency and security is an important role of the DBA.

2.2.3 Views of the Data

(iv) Object oriented Database model

Computer System, DBMS, Networks & D S

2.3 Computer Networks

2.2.6 Specialized databases

Modems Terminal Connection Equipment

Network Connection Equipment

Management Info. Systems Module 2

Computer System, DBMS, Networks & D S

2.4 Distributed Systems

2.3.4 Reasons Managers Implement Networks -