What is Information

Information is processed data presented in a form

that is meaningful to the recipient and is of real
value in the current context or decision making
process
Data
Storage

Data Processing Information

Data is the raw material for processing information.

Data itself has no meaning or value. It is a set of
facts about the Entities in the Real World 1
The Need for MIS ??
❑Tough Global Competition

❑To be able to Quickly React to Changing Environment

❑Faster Decision Making with Minimum Uncertainties

❑To have a Competitive Edge

❑Increase the Organizational Responsiveness

❑To Manage Global Business Operation

❑To Establish Proper Management and Control

❑Because

❑ Knowledge is an Asset and must not be lost

❑ Better Productivity

❑ Changing Organization Structures – Flattening and De-Centralizing

❑ To Empower the Employees with Information at the Right Time

❑ Legal Manifestations
2
 What Makes MIS Feasible
❑ Cheap Computing Power (High Processing Power /
Unit Cost)
❑ Computing power doubles every 18 months
❑ Advances in data storage
❑ Advances in data mining techniques
❑ High End Technologies
❑ Portable Computing
❑ Advances in telecommunications / Networking
infrastructure
❑ Affordable Software Solutions

3
 Definition of MIS
A Management Information System Is -
❑ An Integrated User Machine System
❑ For Providing Information
❑ To Support the Operations, Management, Analysis and
Decision Making Functions In an Organization

A Management Information System Utilizes -

❑ Computer Hardware and Software
❑ Manual Procedures
❑ A Database
❑ Models for Analysis, Planning, Control and DM

4
 Other Definitions of MIS
MIS is a federation of several functional Subsystems.
If we say that the MIS is a federation of several sub
systems, then there must be an integration of these
sub systems. The integrator is generally the database
It is the wide Variety of Computer Resources
dedicated to perform transaction processing, to
provide processing for a formal information and
reporting systems, and to accomplish managerial
decision support systems are broadly classified as
the as the Organizations MIS

5
 Physical Components of
MIS Refers to the Physical Computer Equipment
Hardware
System
Software That Basically comprises of the System and
the Application Software that make the MIS Possible
Database Is typically the database Software that is used
to store the data on which the whole MIS operates
Procedures Which comprises of User Manuals and the
the Work Flows that need to be followed to work with
the MIS. For Example “How to Book a Sales Order”
Operating Personnel Are the People who work on the
MIS, Systems Analysts, Data Preparation Personnel,
Database Administrator Etc
6
Processing Functions of
MIS
❑Processing Transactions
Transaction are the unit activities that are
performed by an organization
❑Maintaining Master Files
Store Permanent / Historical Data /
Concentrated Data
❑Produce Reports
Regular / ADHOC
❑Inquiry Processing
❑Process Interactive Support Application
Enables Planning, Analysis and Decision Making
Function in an Organization
7
 Outputs for Users of An
MIS
There are various types of outputs that are provided by
an MIS
 Transaction Documents / Screens
• Informational, Action, Investigational
 Preplanned Reports
• Monitoring Information, Problem Finding
Information, Action Information, Decision Support
 Preplanned Inquiry Responses
 Ad-hoc Reports / Inquiry Responses
 User Machine Dialog Results

8
Activity & Functional Sub -
Sys
Strategic Planning

Management Control

Information Processing
Operational Control

Finance & Accounting

Transaction Processing

Top Management
Production
Marketing

Logistics

DATABASE Personnel
9
MIS Support for an
Organization
MIS
For
Strategy
and
Policy Planning
and DM
EIS

OAS
Management Information
for Tactical Planning and DSS
Control

Management Information For MRS

Operational Planning, DM and Control

Transaction Processing
Inquiry Response TPS
10
Information Rights
PRIVACY: Right to be left alone
Fair information practices (FIP):
 No secret personal records
 Individuals can access, amend information
about them
 Use info only with prior consent
 Managers accountable for damage done by
systems
 Governments can intervene

11
 INFO SYSTEMS, LEVELS,
DECISIONS ORGANIZATIONAL LEVEL
TYPE OF
DECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC

STRUCTURED ACCOUNTS
RECEIVABLE
ELECTRONIC PRODUCTION
SCHEDULING COST OVERRUNS
TPS
OAS MIS
SEMI- BUDGET
STRUCTURED PREPARATION

PROJECT
SCHEDULING DSS
FACILITY
LOCATION
KWS ESS
UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTS
NEW MARKETS

12
 IS for Operational Control
Operational Control is the process of ensuring that
operational Activities are carried out effectively and
efficiently. It makes use of pre established procedures
and Decision Rules
There are various processing sub systems for
operational Control
 Transaction Processing
 Report Processing
 Inquiry Processing
Eg are Transactions for inventory withdrawal, or
checking of inventory levels, Orders pending for a
specified duration 13
 IS for Management Control
Management Control is required by Managers of
Departments, Cost Centers
The Various types of information that are required by
this level of Management are
 Planned Information
 Variances from Planned Performance
 Reasons for Variances
 Analysis of Possible Decisions or courses of Action

14
 IS for Strategic Planning
The Purpose of Strategic Planning is to develop
Strategies by Which an Organization will be able to
achieve its Objectives
It is used by the Top Management Group. Such
Activities do not take place at a regular intervals /
frequency
There is a considerable need for external Data which
may be bought from WTO, Marketing Research
Organizations, Government Agencies etc
The Decision are Largely Unstructured and are widely
influenced by external factors. The Decisions generally
have a futuristic scope. Various types of Decision
Making Models are used for specific Analysis and 15
Decision Making
 Information Requirements
Characteristic Operational Management Strategic
s of Control Control Planning
Information
Source Largely External
Internal

Scope Well Defined, Wide

Narrow

Level of Detailed Aggregate

Aggregation

16
 Transaction Processing
System
TPS : A transaction is defined as a business event /
activity.
A Transaction processing system supports the
processing of a firms transactions
Transaction Processing Systems are generally
responsible for data capturing
Transaction Processing System must be capable of
Handling large volumes of data
Must be capable of handling the transactions on
line, rather than on a Batch Mode
It is the core of any MIS. The Other information
systems work by utilizing the information that is 17
Management Reporting
Systems
MRS : A is an information system that provides
predefined types of information to the Management
for relatively structured types of information
MRS is typically used for planning and management
control. Essentially the data captured by TPS is
summarized into a more meaningful form to allow
the managers have a global picture of the heath of
the business
Various Categories of MRS
 Scheduled Reports
 Exception Reports
 Demand Reports 18
 TPS DATA FOR MIS
APPLICATIONS
TPS MIS
Order Processing SALES
DATA
System

ORDER FILE UNIT

PRODUCT
Materials Resource COST MIS REPORTS
Planning System
PRODUCT
CHANGE
PRODUCTION MASTER FILE
DATA
General Ledger
EXPENSE MANAGERS
System DATA

ACCOUNTING FILES MIS FILES

2.23 19
 Decision Support Systems
Decision Support Systems refer to a class of Systems
which support the process of Making Systems.
DSS are used because they
 Compensate for fear of uncertainty of the outcome of
decisions as perceived by the Human Mind
 Does not suffer from Latency Effects
 Has a Wider Coverage on the various possibilities

The DSS must support the Decision and not replace the
normal Human Decision Making Behavior
Should assist in making decisions to solve semi-
structured problems
Should be Interactive, taking Regular Consolations with
the User and not an isolated process 20
 The Decision Making
Process
INTELLIGENCE Intelligence Implies Searching the
Environment for Conditions calling
for Decisions
Design is inventing, developing
DESIGN and analyzing the possible courses
of Actions
Choice is selecting an alternate
CHOICE course of Action from those
available. A Choice is made and
implemented

21
 Decision Making
Structured Decisions Unstructured Decisions

Are Frequent
            Are Infrequent

Flourish in Definite
      Thrive in Ambiguous
     

Environments Environments

The decision can be

      There is no pre-established
     

expressed as a set of steps / decision procedure

flowchart / decision tree /
formula

Data requirements are well

     
      Not so
known in advance
High Risk Associated with
     

Low / No Risk Decisions

     
Such Decisions

22
Structured / Unstructured
Dec

Un
For high level

St
Management

ru
ct
ur
ed

St
For low level

ru
Management
ct
ur
ed

23
 Decision Tables
1 2 3 4 5 6

Condition
s

Action
s

Rules 24
Executive Information
Systems
Is to be used by the top executives of the
organization
It sits on the top of all function information systems
EIS is implemented by the use of special Tools such
as Business Objects etc. The choice of tool is very
important since these executives cannot spend a lot
of time in learning the technologies
While Deigning an EIS due consideration should be
given to
Business Content Strategic Planning and Decision
Making Support, Broad Based Computing Facility
Presentation Features such as drill down
reporting, exceptional Reporting, Graphic Summary,
25
 Office Automation
Systems
Office Automation is application of Computer and
Related Technologies like Communication and
Networking that integrate the General Office Tasks so
that the efficiency of the Work Force if greatly
improved
The OA Applications are
 Documents management systems like DBMS for
Data Management Storage And Handling
 Message Handling Systems like internet, intranet,
mailing systems for Communication etc
 Teleconferencing / Video Conferencing for
Communication and Decision Making
 Office Support Systems like Word Processors /26
 Office Automation
Systems
Thus the Key Objectives of OAS are
 Toward a “PAPERLESS” office
 Redesign of work flow
 Integrated software
 Ergonomic design
 Bright, cheerful work space

27
 Knowledge Based Systems
Knowledge work is that work that involves thinking,
processing, information, formulating analyses,
recommendations and procedures
KBS / ES is an knowledge intensive program that solves
a problems by capturing the expertise of a human brain
in limited domain of knowledge and experience. It is a
self learning system
There are 5 main areas of AI research
 Expert Systems
 Natural Languages
 Vision Systems
 Robotics
 Neural Networks 28
General Concepts of
Information
Usefulness of Information : If the cost of
Information < than the value benefits to be
deduced from it
Quality if Information : How efficiently it motivates
human actions and contributes to effective decision
making
Utility of Information
• Form
• Time
• Place
• Possession
Value of Information : Change in the Decision
Behavior - the cost of procuring the information
29
 Water Fall Model
Preliminary
Design
Requirements
Analysis
Systems
Design
Coding

Testing

Maintenance

30
Prototype Model
Requirements
Gathering and
Refinement

Engineer the Quick

Product Analysis and
Design

Refine
Prototype Build
Prototype

Customer
Evaluation

31
Differences
Waterfall Model Prototype Model
 Mature Processes &  Requirements not very
clear requirements clear to the user
 Low involvement of  High involvement of user
user  Lack of focus on design,
 Key emphasis on each coding and testing
phase phases
 Structured and less
 Repeated Iterations,
time consuming hence more time
consuming
 Greater costs
 Lesser Costs  Appropriate where
 Appropriate where implementation cycles
requirements are are small and
stable and requirements are
implementation cycles changing
are small

32
Spiral Model
Planning Risk Analysis

Customer Engineering
Evaluation

33
Spiral Model - Features
 Is a combination of waterfall and prototype
models with an added function – Risk Analysis
 Appropriate for projects with large
implementation cycles > 2 years
 Coding id deferred to as late as possible in order
to be able to utilize latest technologies

34
 System Engineering &
Analysis
The Set Of Activities Carried out during this phase are
 Identification of Customer Needs
 Evaluate System Concept for Feasibility
 Perform Technical Analysis
 Allocation System Requirements to Software,
Hardware People, Databases and Procedures
 Establish Cost And Schedule Constraints
 Create a System Definition that forms the
Foundation for Subsequent Work

35
 System Engineering &
Analysis
Project Size and effort Estimation is done in order to
determine the Cost, Time and Manpower required to
develop such a project
Cost Benefit Analysis
 Tangible benefits
 Intangible benefits

Feasibility Analysis
 Technical Feasibility
 Economic Feasibility
 Legal Feasibility
 Operational Feasibility
 Schedule Feasibility
36
 Requirements Analysis
Is a communication intense activity
It is the prime phase wherein the requirements are
captured
It is really a complex activity, which involves
converting a set of nebulous, confused thoughts in
the minds of a User into a set of clear, well defined
and well represented facts that are to be furnished
by the system
Why do projects fail
 Cost Overruns
 Time Overruns
 Poor Quality of the Product
37
 Requirements Changed or were not understood
 Requirements Analysis
RA is a communication Intense Activity a process of
discovery, refinement, modeling and specification,
wherein both the developer and customer take an
active role in the requirements analysis and
specification
The Activities for RA are broadly divided into
 Problem Recognition
 Evaluation and Synthesis
 Modeling
 Specification
 Review

This process helps to lay down the specifications for

Software Function and Performance, Software’s 38
 Requirements Analysis-
Modeling
Models are developed during the Requirements Analyst
that allow the user and the Analyst to gain a better
understanding of the system. The Models Focus on
What to Do and not How to Do
Utility of Models
Aid in understanding Information, Function and
Behavior of a system thereby Making RA more easy and
more systematic
Models are the focal point of Review and hence the key
to determine Completeness, Consistency and accuracy
of Function
Become the Foundation of Design – Providing designer
in Essential Representation of the Software that can39be
Methods of Collecting
Information
Questionnaires
 Open-Ended
 Closed Ended
Observation Methods
Delphi Techniques
Deriving from Existing Information
Systems
 Manual
 Electronics
Group Discussions
Brain Storming

40
 Requirements Analysis
To Reach a Clear common Understanding between the
User and the Development Team - modeling,
flowcharting, structured English representation and
other specific methods are used to capture the Various
Complex Business Scenarios
Data Flow Diagrams (DFD’s) is a graphical technique
that depicts information flow and the transforms that
are applied as data flows from input to the output
Rules for drawing a DFD
Sources cannot leak data directly into data store
A store cannot directly pass on information to a destination
Data cannot flow directly from one store to another
Any process producing output must be a source itself
Any process with only input should be a data destination
Each Subsystem must be further exploded in the next level 41
Requirements Analysis

Process or Function that operates

upon a data to perform a specific
function
Data Flow / Data Item

External Entity that represents the

source or sink of data

Represents a data storage that is

generally a permanent data storage
42
 DFD’s – Case Study I
Case : Depict the process for Customer
withdrawing cash from a Bank through a
Teller
The following considerations have been taken
The Customer is making a Withdrawal using a
Withdrawal slip
The Customer is aware of the banking procedure
and has sufficient knowledge

43
DFD – Tips – How to make
oneIdentify the possible users that may be
involved in the procedure to be
accomplished
Decide on the probable actions that
are required to complete the process.
It is not necessary to be over
enthusiastic but do allow for possible
additions as your diagram progresses.
Work out the data that is going to be
needed to carry out each of these
actions.
Lastly put them all together like a
jigsaw puzzle

44
 DFD’s – Customer
Withdrawal
Account
2.Complete
Informatio
Withdrawal
1. Customer No n 4. Teller
Amount Slip
Receipt, Information Signature,
Cash, Card
Card
4. Validate
6. Pay New Bal. 5. Process Account Transaction
Balance Cash Amt. Transaction Debit Info And
balance

New Debit Amt Valid A/C Account

Balance No
Customer Account Info

45
Data Dictionary
Is a structured Repository of data about
data (MEDADATA). It is a rigorous
definitions of all the DATA elements and
Data Structures
 Data Elements – are the smallest unit of data
that provides for no further decomposition. Eg.
Date
 Data Structure – A group of data elements
handled as a unit. For Eg the Customer
Account info is a data structure of data
elements like AccNo, Name, Address, Balance,
Signature, Credit and Debit Information and so
on.
 Data Flows and Data Stores

46
 Systems Design
Systems Design is Defined as the process of applying
various techniques and principles for the purpose
translating the requirements into a representation of
the software in sufficient details to permit its physical
realization
The Importance of design Maintenance
Maintenance
Test
Test
Implementation
Implementation
Design
Design is the place where quality is fostered into the
software

47
 Systems Design
Information
al Model
Functional
Design Code and
Model
testing Phase
Behavior Data absorb almost
al Model Design Design 75% of the
Architectur
al Design Software Cost
Other
Requiremen Code
ts Procedur
al Design

Test

48
 Systems Design
System design can be categorized into various factors
such as
Input Design : All care must be taken to take the
correct system inputs in the most efficient and simple
way. Input Design includes determining the various
means by which the System would receive the inputs
from the surrounding such as data Entry Screens, Bar
Code Readers etc. It also accounts for the validations
that would be performed by the system in order to
check for the correctness of the data being entered. A
correct input a very essential in order to allow
successful functioning of the system in desired fashion
Output Design : Implies the careful design of the out
interfaces such as screen designs and Report Layouts.
49
 Systems Design
Data Design : Implies defining the data dictionary
that would be used to capture the data the would be
captured / generated by the system. This is one of the
most important design phases since the Data Design
directly would affect the performance of the system
A good database design is one that not only allows
you to store the correct representation of data, but
also allows you to retrieve the data in a simple and
efficient Manner
Care should be taken to defined the low level
database parameter at this phase. Instead ER
Diagram and the Data Integrity constraints should be
explicit, allowing the flexible choice of the database
details to be taken care of at the implementation level
50
 Systems Design
Architectural Design : The prime Objective is to
develop a modular program structure and represent the
control relationship between the various components. It
also includes the design of program structure and data
structure, defining the interfaces that enable the data
to flow throughout the program

P1 M
P2
P1 P3
P3 P1 P2
P4
P2 P5
P5 P4 P3 P4

P5

51
 Systems Design
Procedural Design : This occurs generally after the
data and architectural designs have been
accomplished. It is used to define the algorithmic
details to implement the various operations that would
be performed on the data. The procedural design can
be done by using Structured English, Graphical Design
Notations, etc
Examples
If <Condition-Description> DO While <Condition-
Then <Block Pseudo Description>
code> <Block Pseudo code>
Else < Block Pseudo EndDo
code >
End If 52
 Coding
Coding Involves the translation of the Detail Design
Representation into a Programming Language
Representation
Thus to Code you need a Programming Language. The
choice of the Language generally determines the
complete life Cycle. A good Programming Language Will
 Support Modularization (Functions, Procedures, Logical
Units)
 Support for Abstract Data Structures
 Allows Use of Complex Data Types
 Ease of Learning, Using
 Intelligent Compiler to produce Machine Efficient Code
 Source Code Portability – Java, VB.net, 4GL’s. E.g. SQL
53
 Coding
The Output of the Coding Phase is Lines of Code

Software Design Coding Lines Of Code

Categories of Programming Languages

 First Generation Languages Eg Assemblers Compile
 Second Generation Languages Eg FORTRAN
 Third Generation Languages
General Purpose Machine Exec Code
Object Oriented
Specialized Languages
 Fourth Generation Languages Eg Query 54
 Testing
Testing is the critical element of Software Quality
Assurance – representing the ultimate review of
specification, design and coding. Testing cannot show
the absence of a defects, it can only show that the
defects are present
Unit Testing : Is used to test the a individual
component and takes place as soon as a unit
component is developed
Integration Testing : Is carried out between the
various dependant components to ensure that the
various components are able to perform the
designation Function in relation to each other
Functional Testing : Is carried out to ensure that the
product meets the acceptance criteria that has been55
Testing Strategies
System
Engineering
S Requirements
R Analysis
D Design
C
Coding
U

I Unit Testing
V / FT
ST Integration
Testing
Functional Testing

System Testing
56
Implementation of MIS
There are two scenarios of Information
Systems implementation
 Case I : When no Information Systems Pre-
Exist in the organization
 This case is easy, the new information systems are
right away implemented in the organization. There
are no specific complexities involved
 Case II : When there is an existing information
System in Organization.
 This requires special handling since the existing
information systems hold important data, which is
useful to the organization and cannot be done away
with
 The data from existing systems need to be ported to
the new information systems

57
Implementation of MIS
The specific four approaches for
Information systems Replacement
by new Systems are
 Direct
 Parallel
 Modular
 Phase-in

58
Implementation of MIS
Direct Approach
 Refers to the case in which implementation of new
system is done and immediately the old system is
discontinued.
 It is also referred to as the Cut-off Approach.
 It is Applicable when
 Old system is very small or simple
 It is judged absolutely worthless
 The new System is radically different from the existing
one
 It involves a high risk of failure
Old System New system

59
Implementation of MIS
Parallel Approach
 The new system is installed and operated in
parallel with existing system till it has been
tested thoroughly., then the current system is
cut off
 The outputs from new and existing system
are compared from each system during the
parallel phase and differences are reconciled
 It is expensive since it requires duplication of
effort to maintain dual systems
 It is need for critical operations
Old System
New system New system

60
Implementation of MIS
Modular Approach
 Is a pilot approach, refers to
implementations of systems on a
piecemeal basis
 Advantages
 Risk of System failure is localized
 Problems identified in the system can be
corrected before further implementation

Module (a) old Module (c) new Module (a) new Module (c) new
Module (b) old Module (d) new Module (b) new Module (d) new

61
Implementation of MIS
Phase-in Implementation
 This method is referred to as cut over by segments
approach and is similar to the modular approach
 The system itself is segmented and not the organization
 New data collection activities are implemented and an
interface mechanism with old system is develop, which
allows old system to operate with new data
 Later new data access, storage and retrieval activities are
implemented
 Then , again interfaces with old systems are developed
 Note : High Costs are involved but needed for large
enterprises

Old System
Function (a) Function (b)
Old New
62
Database Management
Entity
 Anything of interest to the Data Item
user about which data is
to be collected
Record
Attributes
 Characteristics about the
entity which are relevant File
to record

Database

63
Database Management
The Initial Approach was to develop files to store
information
 Thus data files were developed and maintained separately
for individual applications
 Problems
 Data duplication
 Same data stored at different location, to be processed by
different applications
 Data inconsistency
 Lack of data integration
 Information spread across different files, need complex programs
for data extraction
 Data Dependence
 Applications in file processing systems are data dependant
 Program Dependence
 Applications / Program manipulate the information in the files

64
Database Management
System
A database management system is a
collection of software that not assist in
storing information, but also aid in quick
and efficient retrieval of data.
The objectives of database is to have
 Controlled data redundancy
 Enhanced data consistency
 Data independence
 Concurrency Control
 Ease of Use
 Economical
 Recovery from failure

65
 ETHICAL, SOCIAL & POLITICAL
ISSUES
INFORMATION POLITICAL ISSUES PROPERTY
RIGHTS RIGHTS &
&OBLIGATIONS OBLIGATIONS
SOCIAL ISSUES

ETHICAL ISSUES

INFORMATION &
TECHNOLOGY

INDIVIDUAL
ACCOUNTABILITY SYSTEM
& CONTROL QUALITY
SOCIETY

POLITY

4.5 66
QUALITY OF LIFE
Role of End-Users in IS
Development
In this case the end-users develop information system with little
help from technical specialists using 4th generation tools
Strengths
 Increased productivity using 4th generation tools
 query languages
 graphics
 report generators
 application generators
 Short development times
Weaknesses
 Relatively inefficient
 Slow transaction processing
 May carry high cost
 Large files can degrade performance
 Nonprocedural approach may hamper logic & updating
requirements
 Lack of Consistency and approach to Software Development
 Lack of a process approach for software Development
 Lack of quality approach (Testing, Documentation etc)
 Disassociation from Primary Job for which the person was hired

67
Role of End-Users in IS
Development
Management Benefits:
 Improved requirements determination
 Increased user involvement &
satisfaction
 Reduced application backlog
Management Problems:
 Meet organizational objectives?
 Quality assurance?
 Inadequate methodology; testing;
documentation?
 Lost control over data? 68