Similarly, we talk of the business system and of the organization as a system consisting of interrelated departments(subsystems) such as production, sales,

personnel and an information system. None of these subsystems is of much use as a single, independent unit. When they are properly coordinated the firm can function effectively and profitably. The term system is derived from the Greek work systema, which means an organized relationship among functioning units or components. A system exists because it is designed to achieve one or more objectives. We come into daily contact with the transportation system, the telephone system, the accounting system, the production system, and the computer system. Definition The System Concept

o c m i T h e stu d y o f syste m s co n ce p ts h a s th re e b a si i p l ca ti n s. 1. A syste m e ve o b j cti . st n p a o n 2. I te rre l ti n sh i s a n d i te rd e p e n d e n ce m u st exi a m o n g th e co m p o n e n ts. g e za o e ve 3. T h e o b j cti s o f th e o rg a n i ti n a s a w h o l h a ve a h i h e r ts e ve o ty p ri ri th a n th e o b j cti s o f i su b syste m s. n n ca T h e w o rd co m p o n e n t m a y re fe r to p h ysi l p a rts( e n g i e s, w i g s zi n a a rcra ft, w h e e l o f a ca r), m a n a g e ri l ste p s( p l n n i g , o rg a n i n g , of ai re n d i cti g stru ctu re . S yste m n n y s i a n o rd e rl g ro u p i g o f i te rd e p e n d e n t co m p o n e n ts and ln co n tro l i g ), or a su b syste m n i a ti e m u l l ve l n e g m u st b e d e si n e d to a ch i ve a p re d e te rm i e d

e ve fi e a n i l n ke d to g e th e r a cco rd i g to a p l n to a ch i ve a sp e ci c o b j cti .

t s za o m i O rg a n i ti n i p l e s stru ctu re a n d o rd e r. I i th e a rra n g e m e n t o f n g n e p co m p o n e n ts th a t h e l s to a ch i ve s. I th e d e si n o f a b u si e ss th n p a o ca e e syste m , fo r exa m p l , th e h i ra rch i l re l ti n sh i s sta rti g w i l u n e d th e p re si e n t o n to p a n d l a d i g d o w n w a rd to th e b l e -co l a r za o n w o rke rs re p re se n ti g th e o rg a n i ti n stru ctu re . za o O rg a n i ti n sti C h a ra cte ri cs o f a S yste m

n I te rd e p e n d e n ce

m eans

th a t p a rts

o f th e

za o o rg a n i ti n

or

n co m p u te r syste m d e p e n d s o n o n e a n o th e r. T h e y a re co o rd i a te d a n i a n d l n ke d to g e th e r a cco rd i g to a p l n . O n e syste m d e p e n d s o n s o n n th e i p u t o f a n o th e r su b syste m fo r p ro p e r fu n cti n i g ; th a t i , th e o u tp u t o f o n e su b syste m su b syste m n I te rd e p e n d e n ce ch e a ch co m p o n e n ts n o n I te ra cti n re fe rs to th e m a n n e r i w h i o fu n cti n s th wi o th e r co m p o n e n ts o f th e syste m . n I an th wi za o o rg a n i ti n , fo r e exa m p l , n p u rch a si g m u st n i te ra ct n re s i th e re q u i d i p u t fo r a n o th e r

. n l th e th si o p ro d u cti n , a d ve rti n g w i sa l s, a n d p a yro l w i p e rso n n e l I a th n t n co m p u te r syste m , th e ce n tra l p ro ce ssi g u n i m u st i te ra ct w i e ve ce n th e i p u t d e vi to so l a p ro b l m . o n I te ra cti n

e ve C e n tra lO b j cti o n I te g ra ti n re fe rs to th e syste m i h o l sm o f syste m . o n I te g ra ti n s i

th co n ce rn e d w i h o w

t s s e i ti d to g e th e r. I i m o re th a n

t o o ca n sh a ri g a p h ysi l p a rt o r l ca ti n . I m e a n s th a t p a rts o f th e th n syste m w o rk to g e th e r w i i th e syste m e ve n th o u g h e a ch p a rt o q p e rfo rm s a u n i u e fu n cti n o n I te g ra ti n

s e ve o A m a j r o b j cti s o f a syste m i to p ro d u ce a n o u tp u t th a t h a s ts u va l e to i u se r. W h a te ve r th e n a tu re o f th e o u tp u t( g o o d s, t o n ce se rvi s o r i fo rm a ti n ), i m u st b e o exp e cta ti n s syste m of th e n i te n d e d n i th e i ln e th wi a re th e th e u se r. n I p u ts

o n a, e e l m e n ts( m a te ri l h u m a n re so u rce s, i fo rm a ti n ) th a t e n te r th e n s n fo r p ro ce ssi g . O u tp u t i th e o u tco m e o f p ro ce ssi g . A n n syste m fe e d s o n i p u t to p ro d u ce o u tp u t i m u ch th e sa m e w a y a a n n n n th a t a b u si e ss b ri g s i h u m a n , fi a n ci l a n d m a te ri l re so u rce s ce to p ro d u ce g o o d s a n d se rvi s. n O u tp u ts a n d I p u ts e e a o l s A S yste m i a co l e cti n o f re l te d e l m e n ts. T h e se e l m e n ts ta ke th e fo rm , n o f i p u t a n d o u tp u t, Pro ce sso r( s), C o n tro l Fe e d b a ck , n e ro E n vi n m e n t, B o u n d a ri s a n d I te rfa ce . e E l m e n ts o f a S yste m

s n n n t s m I i i p o rta n t to p o i t o u t h e re th a t d e te rm i i g th e o u tp u t i a a ty fyi n rst ste p i sp e ci n g th e n a tu re , a m o u n t a n d re g u l ri o f th e fi e n n i p u t n e e d e d to o p e ra te a syste m . Fo r exa m p l , i syste m re n s rst ysi a n a l s, th e fi co n ce rn i to d e te rm i e th e u se r s re q u i m e n ts o fi s o f a p ro p o se d co m p u te r syste m -th a t i , sp e ci ca ti n o f th e o u tp u t

an resources, materials, information

Transformation

Goods or services

n si t s d e T h e C o n tro l e l m e n t g u i e s th e syste m . I i th e d e ci o n -m a ki g n n vi e s su b syste m th a t co n tro l th e p a tte rn o f a cti ti s g o ve rn i g i p u t, za o n n p ro ce ssi g a n d o u tp u t. I o rg a n i ti n a l co n text, m a n a g e m e n t a s o i o s n si a d e ci o n -m a ki g b o d y co n tro l th e fl w , h a n d l n g a n d o u tfl w o f n fa vi e a cti ti s th a t a ffe ct th e w e l re o f th e b u si e ss. C o n tro l ve n e s T h e p ro ce sso r i th e e l m e n t o f a syste m th a t i vo l s th e a ctu a l o tra n sfo rm a ti n n n o f i p u ts i to o u tp u t. t s I i th e o o p e ra ti n a l l n fy co m p o n e n t o f a syste m . Pro ce sso rs m a y m o d i th e i p u t to ta l y s o fi n al o r p a rti l y , d e p e n d i g o n th e sp e ci ca ti n s o f th e o u tp u t. T h i o fi m e a n s th a t a s th e o u tp u t sp e ci ca ti n s ch a n g e , so d o e s th e p ro ce ssi r( . Pro ce sson gs)

e s c n C o n tro l i a d yn a m i syste m i a ch i ve d b y fe e d b a ck . Fe e d b a ck c n n m e a su re s o u tp u t a g a i st a sta n d a rd i so m e fo rm o f cyb e rn e ti . ca o n u p ro ce d u re th a t i cl d e s co m m u n i ti n a n d co n tro l Fe e d b a ck

Human resources, materials, information Transformation

Management (Control)

Standard of performance Goods or services

n I syste m

ffe n s m ysi a n a l s, fe e d b a ck i i p o rta n t i d i re n t w a ys.

ve n e d ysi n D u ri g a n a l s, th e u se r m a y b e to l th a t th e p ro b l m i a g i n u fy n ti fy s o i a p p l ca ti n ve ri h i / h e r i i a l co n ce rn s a n d j sti th e n e e d fo r ch a n g e . A n o th e r fo rm m e i p l m e n te d . The o f fe e d b a ck co m e s a fte r th e syste m u se r n i fo rm s th e yst anal about s i th e

ts n s l o n p e rfo rm a n ce o f th e n e w i sta l a ti n . T h i fe e d b a ck o fte n re su l i re e n h a n ce m e n ts th e u se r s re q u i m e n ts. . o n n ve ti Fe e d b a ck m a y b e p o si ve o r n e g a ti , ro u ti e o r i fo rm a ti n a l t s n ti Po si ve fe e d b a ck re i fo rce s th e p e rfo rm a n ce o f th e syste m , I i d l ve fe e d b a ck g e n e ra l y p ro vi e s th e n n ro u ti e i n a tu re . N e g a ti o o th n l co n tro l e r w i i fo rm a ti n fo r a cti n .

eti

tor

p Com

The

s ro e n vi n m e n t i

th e

m n e t s za o o rg a n i ti n o p e ra te s. I i th e exte rn a l e l m e n ts th a t i p i g e o n n t n th e syste m . I fa ct, i o fte n d e te rm i e h o w o fu n cti n ro E n vi n m e n t a syste m m u st

Human resources, materials, information Transformation

t en rm ve Go

Customers

Management (Control)

Standard of performance

S to c kh o

l de r
Goods or services

su p e ra syste m

th n wi i

Ba nk s

ch w hi

an

The interconnection and interactions between the subsystem are called interfaces. A system should be defined by its boundaries- the limits that identify its components, processes and interrelationships when it interfaces with another system. Each system has boundaries that determine its sphere of influence and control. Boundaries and Interface

Boundary

Interface Environment

There are subsystems where the inputs and outputs are defined, but not the process; such systems are called a black box. In system development, the concept of black box is used to simplify design work. Initially the process part of the system is left out; that is, the transformation process is assumed to be black box or unknown. Black Box

Input n

Output n

1.

Conceptual

and

Empirical

Conceptual

system

is

theoretical framework that may or may not have any counter part with real world. Examples, Economics theory, theology etc. Empirical systems are generally concrete operational systems made up of people, machines, materials and energy. Empirical systems may be derived from or based upon conceptual systems. Examples are production system, examination system etc. Types of Systems The output of the system is defined first. Once the output requirements are clearly defined, the designers turn to identifying and defining input requirements to generate the specified output. After defining the output and input, the last step in design is to specify the black box operation. The black box represents the conversion process. The steps in conversion are specified to convert the specified input into the specified output. This approach to the system design is highly scientific and is often used in information system design.

4 . Permanent and Temporary Systems : Systems enduring for a long time relative to the people belonging to the system are called permanent systems. Most man-made systems are permanent systems. Temporary systems are designed to last only for a limited
period of time. Once the purpose is achieved such systems cease to exist. 3 . Open and Closed Systems : Open systems interact with the environment and exchange information, material or energy with environment. They are difficult to study. Examples for open systems are biological systems, organizational systems etc. A Closed system is self-contained and does not interact with its environment. It has a well-defined boundary that keeps the environment from influencing the system directly. Most computer systems may be 2 . Natural and Artificial considered as closed systems. Systems : Natural systems abound in nature such as solar system and water system, They are not the result of human effort. Artificial systems are man-made. Examples of artificial systems are transport system, communication system etc.

Systems : Deterministic and Probabilistic 5. This classification of systems is based on their predictability of outcomes. In a probabilistic systems some states can be predicted
from the previous state only with a certain amount of error. For example, in an inventory system, the average stock, average demand, etc. may be predicted but the exact values of these factors at any given time cannot be known in advance. Deterministic systems are perfectly predictable. That is, it is possible to predict the outputs accurately from the inputs

Each subsystem may have much input and many outputs. Between subsystems many interconnections are required for the exchange of input and output. The number of interconnections or interfaces rapidly rises when the number of subsystems rises. Each system seems to be nested in a larger system; smaller systems within a system are called subsystems. Super systems refer to extremely large and complex systems. Systems exist at an infinite number of levels of scale. For example, the system of education can be classified into global education system, national education system, state education system, district education system, block education system, panchayat education system an son on. A series or group of components operations of a more complex system. Subsystem Subsystem that perform one or more

Algebraically, the number of interconnections in a system = N ( N - 1 ) / 2. Thus, a system with 8 subsystem will have 28 interconnections , and a system with 10 subsystems will have 45 interconnections. Though not all subsystems interconnect with all others, yet very large number of interconnections exist in most systems.

SYSTEM DECOMPOSITION Any system can be divided into smaller systems known as Sub-System and a sub-system can further be divided into still smaller systems sub-subsystems, which in turn can be divided into still smaller systems. This process continues until the smallest sub-systems are of manageable size. The concept of sub-systems is an important aspect and is basic to the analysis and design of information systems, because it is difficult to comprehend a complex system when considered as a whole. Therefore, for the sake of convenience and clarity, a system is divided into smaller systems. The process of dividing into smaller systems is known as System decomposition.

System

Sub-System A

Sub-System B Sub-System C

Sub-System D

Sub-System E

B1

B2

B1.1 System

B1.2 Business Organization

Sub-System

Marketing

Production

Finance

Personnel

Sub-Sub-System

Sales

Promotion

Marketing Research

Sub-Sub-Sub-System

Advertising

Publicity

Personal Selling

CYBERNETIC SYSTEM When feedback and control elements are attached to any system, to make it self regulating and self monitoring, it is known as a Cybernetic system. Input ---------Process ---------Output > >

---------

-------->

Feedback/Control

-------->

----------

HUMAN AS AN INFORMATION PROCESSING SYSTEM 1.Sensory receptors (input) output Sensory receptors includes eyes, ears, skin etc. These receptors capture stimuli, which may be visual,auditory,tactile and others, from the environment and transmit them to the processing unit, i.e., the brain. The processing unit(the brain) uses a variety of specialized processing centers and memory units to handle different types of processing and memory functions. The results of the processing of stimuli by brain are response outputs, such as decisions taken and tasks performed. These results may also be in the form of physical movements, speech and other responses. 2. Processing Unit 3. Response

Sensory Receptors Information Processing Unit -Eyes -----------------------Ears > > Brain -Skin etc

Response outputs -Decisions -Tasks etc

SYSTEM STAKEHOLDERS MAJOR PLAYERS OF SYSTEM System stakeholders means any person who has an interest in an existing or proposed information system. Stakeholders may include technical and non-technical workers as well as internal and external workers.

Stakeholders are information workers. i.e., any person whose work to create, collect,process,distribute and use information.

SYSTEM OWNERS Any information system can have one or more owners. Usually, system owners are the managers of the organization. System owners has to pay for the system to be built, so they are the persons who set the vision and priorities for the system. Hence, they view an information in terms of cost and benefits to solve problems and exploit opportunities. SYSTEM ANALYST The role of the System Analyst has been emerging with changing technology. A person who conducts a methodical study and evaluation of an activity such as a business to identify its desired objectives in order to determine procedures by which theses objectives can be gained. The task of the systems analyst is to elicit needs and resource constraints and to translate these into a viable operation.

System analyst are responsible for designing, computer information systems, modify system to improve production or work flow, or expanding systems to serve new purpose. They must understand the capabilities of the firms equipment and software, and may be asked to provide recommendations about selection of new equipment or software packages. They may be responsible for a firms entire system or part of it, or work from project to project. The first task of the System Analyst is the evaluation of business procedure and problems. Analyst begin an assignment by talking with managers or specialists to determine the nature of the problem and to break it down into its component parts. This may involve interviews with staff to specifically identify what information is being processed, where it comes from, and where it goes. In addition to the interview method of data collection, analysts also conduct written surveys and observe workers performing tasks.

After sufficient information has been collected, the analyst prepare charts and diagrams that construct a representation of the new system in terms which managers or non-data processing personnel can understand. Analyst consult with management throughout this phase in order to confirm that the analyst and the management agree on the principles of the system. Analysts also prepare cost versus benefit as a result of implementing the proposed new system. Once the system is accepted, System analysts prepare specificationn for programmers to follow. The specification include detailed description of the records, files and documents used in processing, and data flow charts describing the interrelationship of the data elements to be considered by the programmers. They also may determine what computer H/W and S/W will be needed to set up the system. Some analysts also prepare programs and may be known as Programmer Analysts.

In Computer manufacturingfirms, Systems Analysts application software for the computers. They also

design prepare

technical documentation and instructional manuals relevant to the establishment and functioning of entire operational systems.

INTERPERSONAL AND TECHNICAL SKILLS

Interpersonal skills deal with relationships and the interface of the analyst with people in business.

Technical skills focus on procedure and techniques for operations analysis, Systems analysis and computer science.

INTERPERSONAL SKILLS INCLUDE :

1 . Communication : having the ability to articulate and speak the language of the users and a knack for working with virtually all managerial levels in the organization. Communications is not just reports, telephone conversations and interviews. It is people talking, listening, feeling and reacting to one another, their experience and reactions. 2 . Understanding : identifying problems and assessing their ramifications, having a grasp of company goals and objectives, and showing sensitivity to the impact of the system on people at work.

3 . Teaching : Educating people in use of computer systems, selling the system to the user, and giving support when needed.

4 . Selling : Selling ideas and promoting innovations in problem solving using computer.
TECHNICAL SKILLS INCLUDE :

1. Creativity : helping users model ideas into concrete plans and developing candidate systems to match user requirements. 2. Project management : scheduling, performing well under time constraints, coordinating team efforts and managing costs and expenditures. 3 . Questioning attitude and inquiring mind : what, when, why, where, who and how a system works.
4. Knowledge of the computer and the business function . knowing the

Systems analyst require interpersonal as well as technical skills, although the necessary for both skills depends on the stages of system development.

High
Interp Skill ersonal

Technic Skills al

Low Analysis Design Implementatio n Maintenance

SYSTEM DESIGNERS A technical expert is someone who translates system users, business requirements and constraints into a technical solutions. They design the computerized data base, input, output, software that will fulfill these requirements. A system designer can be a database administrator, network architect, web architect, graphics artists, security experts and technology specialists. System designers translate the business requirement into a feasible technical solution. Hence they view an information system in terms of a design blueprint to guide the construction of the final system.

SYSTEM BUILDERS System builders isa technical specialist who construct information system and components based on the design specifications generated by the system designers. System builders construct, implement and maintain the information system. Hence they tend to view an information system in terms of actual working hardware and software to implement the system. PROJECT MANAGERS The above five categories of system stakeholders viz., Owner, System analyst, System Designers, System Builder and System Users must work together or in a team to successfully build a quality information system.

As we all know, a team can not perform better if it is without an effective leader. Therefore on of the stakeholders play the role of a project manager to ensure that systems are developed on time, within budget and an acceptable quality. Project manager is an experienced skilled professional who accepts the responsibility for planning, monitoring and controlling project with respect to schedule, budget, customers satisfaction, technical standard and system quality. EXTERNAL SERVICE PROVIDERS A combination of system analyst, system designer and system builder can come together to sell their expertise and experience to other business organizations in order to help those businesses, to develop or integrate their information system solution, they may also be affiliated with a consulting services organization.

TYPES OF SYSTEM 1. Open and Closed System Open system is one which interactive in nature. Interactive means they want to communicate with their environment. So they exchange data, material, information etc. with the environment. Examples of open system are human beings , plants etc.

Closed system

is one which does not interact with its environment.

Actually, there is no system which is completely closed but they are relatively isolated from the environment. Example of such system is a computer program, which accepts and processes previously defined inputs and provides output in a predefined format. Another example is an accounting system which works on predefined principles and practices of accounting theory.

2. Physical and Abstract System

Physical systems are tangible entities that may be static or dynamic in operation. For example, the physical parts of the computer center are the offices, desks and chairs that facilitate operation of the computer. They can be seen and counted; they are static. A programmed computer is a dynamic system. Data, programs, output and applications change as the users demands. Abstract systems are conceptual or non physical entities. An

abstract or conceptual system is an orderly arrangement of interdependent ideas which may or may not have any existence in the real world.

3. Super and Subsystem Some systems are form a part of a large system. Hence, they are known as sub-system. For example, in business organization, there are marketing, finance, production departments. They are interactive and dependent to each other. They work together to achieve a common goal. The entire output of a sub-system is the input of the next sub-system. Super system is a large and complex system. It may or may not have a number of parts known as its sub-system. Super system is complex and difficult to understand. For example, education system is a super system in which we have Universities, colleges, schools etc.

4. Deterministic and Probabilistic System A deterministic system is one in which the occurrence of all the event is certain. In other words, we can say that a deterministic system is a system which operates in accordance with predefined set of rules. Every step and order of their performance is known. For Example, Billing system of a departmental store. A Probabilistic system is one in which the occurrence of the event cannot be perfectly predicted. The results of such system can not be pre-determined. An element of probability is always there. For Example, in the examination system of an Educational Institution, we cannot predict the result with certainty.

5. Temporary and Permanent Temporary systems are those which are made to achieve certain objective or to perform specific task, for example, project to construct a shopping mall. When the purpose of that system is achieved, it has lost its existence. Permanent systems are those system which has relatively long time span. Actually in real life nothing is permanent, but when the system is last for a period of 15 to 20 years, it is said to be permanent. Most man made systems are permanent systems

6. Natural and Man-made System Natural systems are abound in nature. Natural system are God gifted or their existence is because of the nature. For example solar system, galaxies etc. Artificial systems are man-made system. Man-made system may be defined as a set of procedures, people and operating system designed to achieve a common goal. For example, business organization, industries etc.

Control in systems
Control is necessary to ensure proper operation of a system. Feedback process is added to basic system model to achieve this purpose. Feedback in organizational systems is normally provided through information systems. It involves comparing actual output with the standard and in case of difference input is sent to the process to modify the operations so that the output conforms to the standard. To be successful any system must produce outputs that meet its objectives. To ensure this compliance, planning must be done and at the time of execution of plan, control should be exercised to ensure conformity with plans.

Steps in control
Control is the activity that measures deviation from planned performance, and initiates corrective action, if required. The steps involved are; Setting up a standard specifying expected performance. Measurement of actual performance Comparison of the actual with the standard. Reporting of deviation to a control unit

A set of actions the control unit can choose from to change performance if it is unfavorable. A procedure for higher levels action if the control unit fails in producing correct performance.

Types of Control in systems

Feedback is the key to system control. Information about the transformation process is fed to the control centre, may be manager or a computer system, so that the processing can be assessed and correct if needed. The control systems can be classified into the following three categories . Closed Loop System : It is a system where feedback, based on output measurement, is fed back to make appropriate alterations to the input. For example, stock level control system has planned level of stock for each item. The actual stock level of each item is measured and compared with the planned level. Adjustments are made to bring stock level up or down to conform to the planned level.

Open Loop System : These are system where no feedback loop

exists and control is external to the system; that is, control is not integral part of it. Control action is not automatic and may be made without monitoring the output of a system. Cybernetic System : Systems embodying feedback commonly called cybernetic systems. control are

Law of requisite variety

The law of requisite variety propounded by Ross Ashby states that complete control of a system can be achieved only when the control system has as much variety in response as the number of ways the system can go wrong. The control system should have an appropriate response to each control situation. Business organizations, being highly complex, cannot ensure

complete control of system with few controls like budget and standards. There must be at least as many variations of control as there are ways for the system to go out of control. This also means that the controller of a system must be able to determine variations of the control variable and introduce system change instructions for such change.

The Law of requisite variety means that for a system to be controlled, every controller must be provided with: Enough control responses to meet any situation Decision rules for generating all possible control responses The authority to become a self-organizing system in order to generate control responses.

INFORMATION

Information, the second component in the term Management Information System, is considered as a valuable resource required by the management in order to run a business organization. Information is data that is processed and is presented in a form which assists decision-makers. It may contain an element of surprise, reduce uncertainty or provoke a manager to initiate an action. Whereas data ( the singular being datum ) is a term used for raw figures, facts, symbols, etc., that are currently not being used in a decision making process. In contrast to information, raw data may not be able to surprise us, may not be organized and may not add anything to our knowledge.

Data

----------> Processing ----------> Information

Definition Information is the result or product of processing data.

Information can be defined as data that has been converted into meaningful and useful form for specific context used by a specific user. Name Aneesh Roll No. 23 Class

MBA 3rd Semester

When the above data is processed, it gives us information that

Roll No.23 is of Aneesh studying in MBA 3rd Semester.

Data that has been processed into a form that is meaningful to the recipient and is of real or perceived value in current or prospective action or decision. Davis and Olson

Data Data is plural of datum which means facts, although data represent both singular and plural form. Data is a set of isolated raw facts, figure, statistics unrelated and uninterrupted. Data can also be defined as a collection of numbers, letters or symbols, that can be processed, maintained or produced by MIS.

In the context of Business organization, data is a raw fact or observation typically about physical phenomenon or business transaction.

Data commonly have a variety of forms including numeric data , text, voice and images. For Examples Roll No, Sales, Figure, Name of employee etc.

Difference between Data and Information Data 1. Data is the raw facts 2. Data is input 3. Data is unorganized. Information 1. Information is the processed data. 2. Information is output. 3. Information is organized.

4. Data can not add anything to 4. Information enhances the knowledge. knowledge. 5. Data is the base of starting on activity. 5. Information is the end product of an activity. 6. Datais unrelated, uninterrupted. 6. Information is related and ca be interpreted. 7. Data cannot lead to an action. 7. Information leads to an action

Business Data Processing Business data processing is concerned with abstracting meaningful information from large volumes of data. Production manager of a company is asked by Managing Director to suggest ways of controlling production costs. For that details like inventory items, descriptions, quantity per unit of output, average cost of materials per unit of output, cost per unit of procuring material from each supplier etc., are meaningful information for controlling costs. Whether the message presented is data or information depends on the user and context of decision-making. Business data processing is a major application of computers. In business data processing huge quantity of data forms input and the processing results in collapsing the data into small quantity of meaningful information to the users. Such data processing systems need the facility to handle a number of data files simultaneously for input-output operations.

Programming Language COBOL. Steps in Data Processing

1. Identifying the data: To locate data sources for the information. Accurate, adequate and relevant data must be used as input. 2. Designing forms: The next step is to design forms for data entry. The forms are linked to databases so that it becomes easy to enter data into the system. 3. Entering data: Once in the input forms are designed, the actual data must be keyed in to the forms. Data entry personnel does this task. 4. Validation: The data entered must be valid. Certain validation procedures may be built into the code so that input forms do not accept any incorrect data.

5. Storage: The next step is to organize and store the data in appropriate databases to facilitate easy storage and retrieval of data. 6. Processing the data: The next step is to retrieve the appropriate data for the information require and process it. The operations to be performed to generate information depends on the nature of data and the information required. 7. Generating reports and communicating them: The information must be meaningfully presented to the users. Each user may want the information in a particular format. So applications must be developed to generate reports for the users. The report may be presented in the form of print-out, on screen display etc.

Characteristics of Information

1. Timeliness: Timeliness means that information must reach the recipients within the prescribed time-frame. For effective decision-making, information must reach the decision-maker at the right time, i.e. recipients must get information when they need it. Delays, of whatever nature, destroy the value of information.

2. Accuracy: The information should be correct and accurate. Accuracy means absence of error. Error in an information is due to many reasons such as an inaccurate collection method, a deliberate falsification and wrong processing method and so on. 3. Precision: Information should not carry too much details. It will lead to confusion, more resources are wasted in collecting and storing that information.

4. Unambiguous: It should carry and convey the same meaning to every one. In other words we can say that information should be clear in its meaning. 5. Completeness: Completeness of information is the extent to which it serves the purpose. A complete set of information is that which cover all the key issues and is sufficient to support decision making without omitting any critical issues. 6. Impartiality: An information is said to be impartial if it does not have ay personal bias or is collected without any distorted view of the situation. 7. Validity: Validity of information measures the closeness of an information to the purpose for which it is collected. Validity also depends on how the information is used. 8. Reliability: Reliability means the confidence level that the information is accurate.

9. Consistency: The information must relate to a consistent base or a pattern. 10. Explicitness: A effective repost is that which does not require further processing means the decision maker does not require further analysis of that report to take a decision.

Features of Information Information adds to a representation It corrects or confirms previous information It reduce uncertainty It has value in decision making It is reusable

Source of Information The information used in business organization is collected from different sources. They may be Primary or Secondary, internal and external. Basically, the choice of the source of information collection will affect the quality of information. Old files/historic records Observation Mass media of communication: Radio,T.V,newspaper etc. Library Research Government Agencies Meetings, Seminars, workshops and conferences Interviews Survey Internet

Dimensions of Information Business Dimension Economic Dimension Technical Dimension Behavioral Dimension

1. Business Dimension: Information can be analyzed from its business dimension. In a business organization, there are different levels of management. Each level of management requires different type of information. The information needs of a top manager is altogether different from an operation manager. It is due to the fact that manager at different level has different responsibility and functions to perform.

2. Economic Dimension: Economic Dimension of information refers to the cost and related benefit of information. The cost of information consists of the cost to acquire data, the cost to maintain data, and the cost for generating and communicating information. The cost is related to accuracy, speed of generation, etc. of information. If the system has to be more reliable and accurate, the cost have to be higher. Costs are also related to the response time required to generate information and communicate it. 3. Technical Dimension: Technical relates to the technical aspects of the information. The technical dimension of information depends on the quality and reliability of technology used for data processing and information communication.

It is also concerned with the database that is vital for any information system. The technical considerations of database are its capacity, response time, data interrelations of database are its capacity, response time, data interrelationships, security and validity. The technical considerations of information are:

Capacity: This refers to the content of information. Information reports should be concise and clear. Security: This aspects emphasizes the privacy and security of data. Information systems must have adequate safe guards against unauthorized access, hacking and other misuse of database and facilities. Validity: The data must be validated before it enters the database.

4. Behavioral Dimension: Behavioral dimension relates to behavioral aspects of the information. Behavioral aspects means the impact of information on individual, group and organization. The support of top management in acquiring information and the support of operational management to work upon it, is also needed. Types of Information External and Internal Information
The External information originates outside the organization. Market research information, Database services etc. which an organization gets from information service firms are examples of external information.

Internal information originates inside the organization. Most of the data for internal information results from transaction processing.

Horizontal and Vertical Information

Information flowing up or down the organization hierarchy is called vertical flow of information. For example, orders, decisions etc. communicated to downward, reports originating from lower levels to higher levels of organization etc. When information flows from peer to peer at the same level, the flow is called horizontal information. For example , information flows between marketing manager, finance manager, personnel manager etc.

Redundancy Redundancy represents duplication of information. The same

information may be stored or communicated using different messages. This results in redundancy. Redundancy in database, by storing the same information in multiple locations, results in wastage of storage space. Redundancy also creates problems when updating of files is done. Updating of all the files containing the same data has to be done together. If this is not done, the database will have inconsistent data items.

Data Reduction Data has to be collected from various records, measurements and observations made from the environment etc. In order to store and use it efficiently, it is required to sort the data and only useful non-redundant data is entered into the system.

The data collected has to be classified into say cost data, sales data, service data etc. The classification made will depend very much upon the organization and its needs. The data also needs to be coded. The data will then have to be organized and stored into files, tables, lists, database etc, when information is required, it is generated by processing, summarizing and filtering the data. Summarizing of information is a process of aggregation.

For example, the process of getting weekly sales report given daily sales figures is one of summarizing.

Filtering is a process by which irrelevant data is segregated and removed. The amount of data that is to be collected and processed into information at various levels of a business firm is staggering. The information system should be designed to gather relevant data and screen out irrelevant data. Substantial economy can be achieved if the amount of data collected and processed is reduced through such screening out. One method for such data reduction is filtering. For example, in collecting data for control purpose, data of operations within the permitted range of variation is not gathered. Only data pertaining to activities out of range is collected and processed into control

Data reduction can be effected in two ways : Transformation and Compression. Transformation effects reduction by changing the physical form in which data exists thus saving storage space or through more effective data transmission. Changing the form of data also results in substantial compression of data. Compression reduces the physical size of data. Data reduction through compression can be effected in two ways. One is to physically compress the size of data. Data compression is a technique that saves storage space by eliminating gaps, empty field, redundancy or unnecessary data to shorten the length of records or blocks.

Data summarization reduces the volume of data for transmission without affecting its essential meaning. Classification is a formal way of summarization of data.

Statistics are another important form of summarization. Averages, mans, medians, ratios, and standard deviations are some of the often-used summary statistics. The statistics provide information about a set of transactions or other detailed data. A statistical sample can also be used as a summery of large amounts of data.

Data summarization reduces the volume of data for transmission without affecting its essential meaning. Classification is a formal way of summarization of data. Statistics are another important form of summarization. Averages, mans, medians, ratios, and standard deviations are some of the often-used summary statistics. The statistics provide information about a set of transactions or other detailed data. A statistical sample can also be used as a summery of large amounts of data.

Quality of Information
Quality is fitness for use, or reliability. Quality of

information is difficult to be measured. Since quality is related to use one may have to ask the user about the quality of information he is getting. The user may be asked to rate it. If a user is satisfied with the information he is currently provided with he may rate it high and vice versa. Usually the more accurate the information , the higher is its quality, but quality is also influenced by other attributes of information The attributes of information which influence the quality of information can be classified into three categories Time-Related Attributes Content-Related Attributes Form-Related Attributes

Time Related Attributes

imeliness : Information should be available when needed. urrency : The information should be up to date when needed.

requency : The information should be available as frequently as needed.

Content Related Attributes

ion should be free from errors. tion should be specific to the needs of the recipient.

information required must be provided to the user when needed. eeded must be provided in the right measure. Too much information may co

Form Related Attributes

: The form in which information is served must be easy to understand. The level of summary or detail as required by the user must be met.

There should be a predetermined order for providing information. ation : The presentation may be in narrative, numeric or graphic form etc. The media may be paper documents, video displays, etc., as needed by the

Age of Information

has a time factor associated with it. Generation of information from suc

Dimensions of Information Business Dimension Economic Dimension Technical Dimension Behavioral Dimension

1. Business Dimension: Information can be analyzed from its business dimension. In a business organization, there are different levels of management. Each level of management requires different type of information. The information needs of a top manager is altogether different from an operation manager. It is due to the fact that manager at different level has different responsibility and functions to perform.

2. Economic Dimension: Economic Dimension of information refers to the cost and related benefit of information. The cost of information consists of the cost to acquire data, the cost to maintain data, and the cost for generating and communicating information. The cost is related to accuracy, speed of generation, etc. of information. If the system has to be more reliable and accurate, the cost have to be higher. Costs are also related to the response time required to generate information and communicate it. 3. Technical Dimension: Technical relates to the technical aspects of the information. The technical dimension of information depends on the quality and reliability of technology used for data processing and information communication.

It is also concerned with the database that is vital for any information system. The technical considerations of database are its capacity, response time, data interrelations of database are its capacity, response time, data interrelationships, security and validity. The technical considerations of information are:

Capacity: This refers to the content of information. Information reports should be concise and clear. Security: This aspects emphasizes the privacy and security of data. Information systems must have adequate safe guards against unauthorized access, hacking and other misuse of database and facilities. Validity: The data must be validated before it enters the database.

4. Behavioral Dimension: Behavioral dimension relates to behavioral aspects of the information. Behavioral aspects means the impact of information on individual, group and organization. The support of top management in acquiring information and the support of operational management to work upon it, is also needed. Types of Information External and Internal Information
The External information originates outside the organization. Market research information, Database services etc. which an organization gets from information service firms are examples of external information.

Internal information originates inside the organization. Most of the data for internal information results from transaction processing.

Horizontal and Vertical Information

Information flowing up or down the organization hierarchy is called vertical flow of information. For example, orders, decisions etc. communicated to downward, reports originating from lower levels to higher levels of organization etc. When information flows from peer to peer at the same level, the flow is called horizontal information. For example , information flows between marketing manager, finance manager, personnel manager etc.

Information Theory Norbert Weiner developed the information Theory. He developed the concept of Cybernetics. The cybernetic systems are automated systems that control their own actions using feedback. Information theory evaluates communication of information at three levels. The Technical Level The Semantic Level The Effectiveness Level The Technical Level the concern is how information can be transmitted accurately. The focus is on the use of redundancy. The Semantic Level , the concern is how the transmitted symbols convey the right meaning to the recipient. The effectiveness level, the stress is on quality of information and how it influences the behavior of its recipient.

Inferences are drawn usually from a large volume of data and such inferences are communicated in place of the original data. This technique reduces the volume of data transmission significantly. The inferences are drawn based on statistical analysis of data or they may be drawn intuitively. The quality of inferences depends on a persons ability to see patterns, trends and relationships in the data available and to make an objective evaluation of them in the context of the problem.

Inferences Inferences

An Information system depends on the resources of people (end users and IS specialists), hardware (machines and media), software (programs and procedures), data (data and knowledge bases) and networks (Communication media and network support) to perform input, processing, output, storage and control activities that converts data resources into information products. A set of people, procedures and resources that collects, transforms, and disseminates information in an organization.

An Information system is a system that accepts data resources as input and processes them into information products.

Information System Information System

System Analysts design information system based on the requirements of end users, Programmers prepare computer programs based on the specification of system analysts and computer operators operate large computer systems. IS Specialists are people who develop and operate information IS Specialists systems. They include systems analysts, programmers, Computer operators and other managerial, technical and clerical IS personnel. End Users (also called users or clients) are people who use an End Users information system or the information it produces. They can be accountants, salesperson, engineers, clerks, customers or managers. Most of us are information system end users. People are required for the operation of all information systems. These people resources include end users and IS specialists. People Resources People Resources Information System Resources Information System Resources

Computer peripherals, which are devices such as keyboard or Computer peripherals, electronic mouse for input of data and commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources. Computer systems, which consist of central processing units Computer systems, containing microprocessors, and a variety of interconnected peripheral devices. Examples are microcomputer systems, midrange computer systems, and large mainframe computer systems. Hardware resources includes all physical devices and materials used in information processing. Specifically, it includes not only machines, such as computers and other equipment, but also all data media, that is , all tangible objects on which data is recorded, from sheets of paper to magnetic disks. Hardware Resources Hardware Resources

Procedures, which are operating instructions for the people who Procedures, will use an information system. Application Software, which are programs that direct processing Application Software, for a particular use of computers by end users. System Software, such as an operating system program, System Software, controls and supports the operations of a computer system. which

Software resources includes all sets of information processing instructions. This generic concept of software includes not only the sets of operating instructions called programs, which direct and control computer hardware, but also the sets of information processing instructions needed by people, called procedures. Software Resources Software Resources

The data resources of information systems are typically organized into: Databases that hold processed and organized data. Knowledge bases that hold knowledge in a variety of forms such as facts, rules etc. Data can take any forms, including traditional alphanumeric data, composed of numbers and alphabetical and other characters that describe business transactions and other events and entities. Text data Image data Audio data etc

Data Resources Data Resources

Network support, This generic category includes all of the people, Network support, hardware, software and data resources that directly support the operation and use of a communications network. Examples includes communication processors such as modems and internetwork processors and communication control software such as network operating systems and Internet browser packages. Communication media, Examples include twisted-pair wire, coaxial Communication media, cable, fiber-optic, microwave systems and communications satellite systems. Telecommunications network like the Internet, intranets and extranets have become essential to the successful operations of all types of organizations and their computer based information systems. Telecommunication networks consists of computers, communication processors, and other devices interconnected by communication media and controlled by communications software. Network Resources Network Resources

Input Input Processing Processing Output Output Storage Storage Control Control

Information System Activities Information System Activities

Data about business transactions and other events must be captured and prepared for processing by the input activity. Input typically takes the form of data entry activities such as recording and editing. End users typically record data about transactions on some type of physical medium such as a paper form, or enter it directly into a computer system. Once entered, data may be transferred into a machine readable medium such as a magnetic disk until needed for processing. For Example, data about sales transactions can be recorded on source documents such as paper sales order forms.(Source document is the original formal record of a transaction.) Alternately, salespersons can capture sales data using computer keyboards or optical scanning devices; they are visually prompted to enter data correctly by video displays. This provides them with a more convenient and efficient user interface, that is, methods of end user input and output with a computer system. Input of Data Resources Input of Data Resources

For Example, data received about a purchase can be 1.Added to a running total of sales results. 2.Compared to a standard to determine eligibility for sales discount 3.Sorted in numerical order based on product identification numbers. 4.Classified into product categories 5.Summarized to provide a sales manager with information about various product categories and 6.Used to Update sales record. Data is typically subjected to processing activities such as calculating, comapring, sorting , classifying, and summarizing. These activities organize, analyze and manipulate data, thus converting them into information for end users. Processing of Data into Information Processing of Data into Information

For Example, a sales manager may view a video display to check on the performance of a salesperson, accept a computer-produced voice message by telephone, and receive a printout of monthly sales results. Information in various forms is transmitted to end user and made available to them in the output activity. The goal of information systems is the production of appropriate information products for end users. Common information products include messages, reports, forms, and graphical images, which may be provided by video displays, audio responses, paper products and multimedia. Output of information Products Output of information Products

For Example, just as written text material is organized into words, sentences, paragraphs and documents, stored data is commonly organized into fields, records, files and databases. This facilitates its later use in processing or its retrieval as output when needed by users of a system. Storage is a basic system component of information systems. Storage is the information system activity in which data and information are retained in an organized manner for later use.

Storage of Data Resources Storage of Data Resources

Name Field Jones

A filed is a grouping of characters that represents a charteristics of a person, place, thing or event A record is a collection interrelated fields

Payroll Record Jones, E10, 10,000

Payroll File

A file is a collection of interrelated records.

Personnel Database

A database is an integrated collection of records or files.

For Example, a manager may discover that subtotals of sales amounts in a sales report do not add up to total sales. This might mean that data entry or processing procedures need to be corrected. Then changes would to be made to ensure that all sales transactions would be properly captured and processed by a sales information system. An important information system activity is the control of its performance. An information system should produce feedback about its input, processing, output, and storage activities. This feedback must monitor and evaluated to determne if the system is meeting established performance standards. Then appropriate system activities must be adjusted so that proper information products are produced for end users. Control of System Performance Control of System Performance

The another role was added, as the concept of management information systems(MIS) { A management support system that produces prespecified reports, displays, and responses on a periodic, exception, or demand basis. } was conceived. This new role focused on providing managerial end user with predefined management reports that would give managers the information they needed for decision-making purpose.

Until the 1960s, the role of information systems was simple: transaction processing, record-keeping, accounting and other electronic data processing(EDP) { The use of electronic computers to process automatically.} applications. Trends in Information System Trends in Information System

In the 1980s, several new roles for information systems appeared. First, the rapid development of microcomputer processing power, application software packages, and telecommunications networks gave birth to the phenomenon of end user computing. Now, end users can use their own computing resources to support their job requirements instead of waiting for the indirect support of corporate information services departments. By the 1970s, it was evident that the prespecified information products produced by such management information systems were not adequately meeting many of the decision-making needs of management. So the concept of decision support systems(DSS) { An information system that utilizes decision models, a database, and s decision makers own insights in an ad hoc, interactive analytical modeling process to reach a specific decision by a specific decision maker. } was born.

Third, breakthroughs occurred in the development and application of artificial intelligence(AI) { A Science and technology whose goal is to develop computers that can think, as well as see, hear, walk, talk, and feel. A major thrust is the development of computer functions normally associated with human intelligence } techniques to business information systems.

Second, it become evident that most top corporate executives did not directly use either the reports of information reporting systems or the analytical modeling capabilities of decision support systems, so the concept of executive information systems (EIS) was developed. These information systems attempt to give top executives an easy way to get the critical information they want, when they want it, tailored to the format they prefer.

An important new role for information systems appeared in the 1980s and continues into the 1990s. This is the concept of a strategic role for information systems sometimes called strategic information systems(SIS). that uses to act as knowledge knowledge Expert systems (ES) { A computer based information system its knowledge about a specific complex application area an expert consultant to users. The system consists of a base and software modules that perform inferences on the

and communicate answers to a users questions.} and other knowledgebased systems { An information system that adds a knowledge base to the database and other components found in other types of computer-based information systems } forged a new role for information systems. Today, expert system can serve as consultants to users by providing expert advice in limited subject areas.

Finally, the rapid growth of the Internet, intranets, extranets, and other interconnected global networks in the 1990s is dramatically changing the capabilities of information systems in business. In this concept, information technology becomes an integral component of business processes, products and services that help a company gain a competitive advantage in the global marketplace.

Enterprise and Global Internetworking: 1990s onwards

Strategic and End User support: 1980s 1990s End user computing system Executive information systems Expert systems Strategic information systems Decision Support: 1970s 1980s Decision support systems Interactive ad hoc support of the managerial decision-making process Management Reporting: 1960s 1970s Management Information Systems Management reports of prespecified information to support decision making Data Processing: 1950s 1960s Electronic data processing systems Transaction processing, record-keeping and traditional accounting applications

Support of Business Operations Support Systems Operations

ion Processing System Systems ManagementSystems Process Control Enterprise Collaboration Information System Decision Support Systems Executive Information

Processing Control of Business Industrial Transactions Processes

Types of Information Systems Types of Information Systems

Information Systems

Support of Managerial Management Support Systems Decision Making

Team and Prespecified Interactive Information Workgroup Reporting Decision Tailored for Collaboration for Managers Support Executives

Enterprise collaboration systems are information systems that use a variety of information technologies to help people work together. Enterprise collaboration systems help us collaborate to communicate ideas, share resources and coordinate our cooperative work efforts as members of the many formal and informal process and project teams and other workgroups that are a vital part of todays organizations. Enterprise Collaboration Systems ( ECS ) : The use of groupware tool and the Internet, intranets, extranets and other computer networks to support and enhance communication, coordination, collaboration, and resource sharing among teams and workgroups in an internetworked enterprise. Process Control Systems ( PCS ) : The use of a computer to control an ongoing physical process, such as petrochemical production. Transaction Processing System ( TPS ) : An Information system that processes data arising from the occurrence of business transaction.

Thus, the goal of enterprise collaboration systems is to use information technology to enhance the productivity and creativity of teams and workgroups in the modern business enterprise.

Different Cross-Distance Meetings ngoing Coordination O Places Same Place Face-to-Face Meeting Same Time Platforms Different times Teams in Place

Executive Information System : These information systems attempt to give top executives an easy way to get the critical information they want, when they want it, tailored to the format they prefer. Decision Support Systems : An information system that utilizes decision models, a database, and s decision makers own insights in an ad hoc, interactive analytical modeling process to reach a specific decision by a specific decision maker. Management Information System : A management support systems that produces prespecified reports, displays, and response on a periodic, exception, or demand basis. Management Support Systems : When information systems focus on providing information and support for effective decision making by managers, they are called management support systems

A Summary of the major categories of information systems Operations support systems Process data generated by business operations Transaction processing systems Major Categories are:from business transactions, update operational process data resulting database, and produce business documents. Process control system monitor and control industrial processes. Enterprise collaboration systems support team, workgroup and enterprise communications , and collaboration.

A Summary of the major categories of information systems Management support systems provide information and support needed for effective decision making by managers. Management information system Major categories are: the form of prespecified reports and displays Provide information in to managers. Decision support system Provide interactive ad hoc support for the decision-making process of managers. Executive information system Provide critical information tailored to the information needs of executives

A Summary of the major categories of information systems Other categories of information system can support either operations, management, or strategic applications. Major categories are: Expert systems Are knowledge-based systems that provide expert advice and act as expert consultants to users. Knowledge management systems Are knowledge-based systems that support the creation, organization, and dissemination of business knowledge within the enterprise. Strategic information system Provide a firm with strategic products, services, and capabilities for competitive advantage. Business information system Support the operational and managerial applications of the basic business functions of a firm.

Management Information System (MIS) Management Information System is a combination of 3 Letters M which stands for Management. I which stands for Information. S which stands for System. With the help of these 3 letters we can make a number of combination, namely; MI Management Information means information regarding management MS Management System means the basic structure of the management like the hierarchical order of management. IS Information System, which provide information. SM System Management means how to manage a system whether it is a business organization, computer system etc. SI System information means the information regarding the system like what are the different parts of a system, how they relate to each other etc. IM Information Management means how to manage a particular information MIS (Management Information System )

Management Information System (MIS) There are number of definitions of Management information System given by different authors. According to Jerome Kanter Management Information System is a

system that aids management in making, carrying out and controlling decisions. Here Management Information System is a system that aids management in performing its job. According to G.B Davis, a Management Information System is an integrated man / machine system for providing information to support the operations, management and decision making functions in an organizations. Here the system utilizes hardware and software, procedures, management decision model and data base. manual

Management Information System (MIS) According to Davis and Olson Management Information system as an integrated, user-machine system for providing information to support operations, management, and decision making functions of an organization. The system utilizes computer hardware and software; manual procedures; model for control and decision-making and a database. analysis, planning,

According George W. Raynolds MIS concept as a collection of subsystems and related program parts or modules that are interconnected in a manner which fulfils the information requirements necessary to plan, organize, direct and control business activities. It is a system for producing and delivering timely information that will support management in accomplishing its specific tasks in an enterprise.

Management Information System (MIS) After the introduction of computer, some people define Management Information System as computer based information system. As a system based on the database of the organization evolved for the purpose of providing information to the people in the organization. In simple terms Management Information System is an information system that provides information to support managerial decision making. Nature of Management Information System Management Information System is a necessity of all organizations. 1. Report-orientation, 2. Action oriented 3. Exception-Oriented 4. Data base orientation. 5. End user

orientation.

1. Report Orientation: In the early years, the function of Management Information System was to process data from the organization and present it in the form of reports at regular intervals. But after sometimes the difference between data an information merged. Information being the finished product was prepared after processing the raw data. So because of this fact the concept of Management Information system is further modified, as information rather than voluminous data has become the requirement of the user. Although data can be analyzed by different persons separately giving various shades and shapes to the information.

2. Action Oriented : This concept was further modified due to the need that information should be such that it leads to some action, decision or investigation or research.

3. Exceptional-oriented : After having action-oriented nature of Management Information System it was realized that there must be some specific or selective approach to the action or the analysis of data. So the concept of exception was introduced indicating that Management Information System is related to the exceptional situations of business rather than routine matters. 4. Data base-Oriented : To fulfill the need of individual or organization a common database is prepared which can be used by each and every individual accordingly, so concept of Management Information System based on Database is emerged and proven to be effective. The concept therefore is mixture of theories of management, information and concept of system and the end product of this mixing is Management Information System.

Basically Management Information System is a combination of several subsystems based on the data bases in the organization. These subsystems are for Storing, Organizing, Processing and so on. Management Information System is a product of multi-disciplinary approach to the business management . The major discipline that contributes to the study of Management Information System are mainly Computer Science, Operation Research, Management Science, Sociology, Political Science and Psychology. In general we can divide the field of Management Information System into two broad approaches, i.e., Technical and Behavioral. Management Information System is a Hybrid product of these two approaches that makes it a socio-technical systems.

Technical Approach

Socio - Technical System

Behavioral Approach Sociology Political Science Psychology

Operation Research Management Science Computer Science

MIS

Technical Approach : The major role player of technical approach is computer science which provides ways of computation as well as how to storage large volume of data and its retrieval. Management Science gives the concept of decision support and the models for management practices. Operation Research comprises how to optimize the resources of the management.

Behavioral Approach : The major role player of this approach is sociology that focuses on the impact Management Information System on groups, organizations and society as a whole. Psychology is concerned with how each stake holder in organization responses to the information system. Political Science is concerned with what is the Political scene/scenario in the country, what is the manifesto of ruling party etc.

Characteristics

1. Management Oriented :Management Information System that serves all levels of management in an organization i.e., Top, Middle and Lower level. 2. Management directed :When Management Information System is management-oriented, it should be directed by the management because it is the management who tells their needs and requirement more effectively than anybody else. 3. Integrated :By the integration we mean a comprehensive or complete view of all the subsystem in the organization of a company. Development of information should be integrated so that all the functional and operational information sub system should be worked together as a single entity. This integration is necessary because it leads to retrieval of more meaningful and useful information.

4. Common data flows :The integration of different sub system will lead to a common data flow which will further help in avoiding redundancy in data collection, storage and processing. 5. Heavy planning-element :The preparation of Management Information System is not a one or two day exercise. It usually takes 3 to 5 years and sometimes a much longer period. So the system expert has to keep in mind two things: one is that he has to keep future objectives as well firms information well in advance and also he has to keep in mind that his management information system will not be obsolete before it gets into action. 6. Sub System Concept :When we want to see a problem into subparts then we are able give better solution to the whole problem. Although Management Information System is viewed as a single entity but for its effective use it should be broken down in small parts or subsystems so that more insight and attention is paid to each sub system.

7. Common data base :This is basic feature of Management Information System to achieve the objective of using Management Information System in business organization. It avoids duplication of files and storage which leads to reduction of cost. 8. Computerized :We can use the Management Information System without computer. But the use of computers increases the effectiveness and efficiency of the system. We can handle the queries more quickly and efficiently with the computerized Management Information System. The other benefits are accuracy, storage capacity and timely information. 9. Flexibility and ease of use :The MIS is designed flexible enough to accommodate new requirements. The system is easy to operate so that not much computer skills are required on the part of the user to access database for information or for carrying out special analysis of data.

10. Distributed Systems :Most organizations have their offices, sales outlets etc geographically spread over a wide area. These offices work mostly independently of its headquarters. But information has to be routinely exchanged between offices. Most big organizations develop distributed systems to meet the information processing requirements of their various constituents. 11. Information as a resource :Information is major ingredient of any Management Information System. So it should be treated as a resource and managed properly.

Requirements of Management Information System To get synergistic impact of Management Information System in business organization a Management Information System must bear the following prerequisites: vData Base : As we know it is a super file which has all records or data related to a particular organization at one place. It will lead to reduction of redundant duplication. However this master file is sub-divided into the major information sub-sets needed to run a business. These sub sets are 1.Customer files. 2.Supplier file. 3.Employee file. 4.Inventory file . 5.General ledger accounting file.

Data base should be user oriented and should be capable of being used as a common data source for different users and avoid duplication of efforts in storage and retrieval of necessary data and information. Data base should be authorized to be viewed by authorized person. So it should be controlled by separate authority that is a DBA (Data base Administrator) vQualified System and Management Staff : In a Management Information System we have two types of experts: One computer and System expert who prepares the system and other the management staff who directs the system experts about their needs and requirements from a Management Information System. Both of them should have expertise in their respective fields. But they must possess certain knowledge of management concepts so that they can better understand what the management wants from them.

vTop management support: To use or implement the Management Information System effectively, it must have the top management support. Top management support is also required for some behavioral aspects of the subordinates because they are ready to perform those activities which are supported by top management. The other reason why top management support is essential is because the resources involved in Management Information System are very large and it is policy matter which is decided by Top Management.

vActive participation of operating management: As the support of top management is a prerequisite, then active participation of operating management is also a basic requirement of successful implementation of Management Information System.

vControl and maintenance of Management Information System : Control of the Management Information System means to control the operation of the system as it was designed to operate. Sometimes users develop their own procedure or shortcuts to use the system that may reduce its effectiveness. To check such practices, the management at each level should devise check mechanism for information systems control. vEvaluation of Management Information System : The management Information System should be evaluated at regular time intervals to meet the future needs.

Benefits of MIS By implementing the Management Information System, one gets many advantages, some of them are: 1.It provides timely, accurate,scientific,reliable and permanent information. 2.It avoids duplication of efforts. 3.Coordinates the whole organization. 4.It provides the information in form and formats as required by the information seeker. 5.It helps in making better and scientific decisions by the management. 6.Speed of processing and fast retrieval of data is possible. 7.The scope for the use of information system has expanded ( provides information to remote area users. )

Limitations of MIS 1.The quality of the operation of Management Information System depends on the quality of input process. 2.Management Information effective management. System is not a substitute for

3.Management Information System can not provide tailor-made information packages suitable for the purpose of every type of decision made by executives. 4.Management Information System takes into account only

quantitative factors. It cannot consider the qualitative factors like moral and attitude of managers. 5.Management Information System is not successful where secrecy is maintained in disseminating information to their workers. 6. 7. 8.

Problems and Solutions in implementing Management Information System 1.Non availability of experts : This is the main challenge before the planner of Management Information System that it is difficult find experts who can determine the basic objective of the organization expected to result from Management Information System and then implement them to produce an effective Management Information System.

2.

But this problem can be solved by providing necessary training to the existing staff or by proper selection of new entrants in the organization. Selection of Subsystems : Experts face the problem of how to select the subsystem of Management Information System to be installed and operates upon. For this, the expert must see what is the need and importance of a function for which Management Information System has to installed in the organization for first time.

3.

Non standardized system : Because of the different objectives of business organization, the approach adopted by experts for designing and implementing Management Information System is non-standardized one. To deal with this problem nothing can be done at the initial stage but as time passes the standardization may be

arrived for the organization in the same industry.

4. Non cooperation from staff : This is the most critical problem in implementing a Management Information System effectively in the organization.

However this can be handled by proper education, giving lectures, communicating with them about the benefits of the system and also by involving some of the middle level managers in the process of development and implementation.

5.

High turnover : High turnover among the experts is a major challenge. There are many attractive reasons like high pay packets, Promotion, future prospects, behavior of top linking managers etc.

Organizations retain them by providing better working conditions and paying at par with other similar concerns.

Subsystems of MIS The management information system is a federation many

subsystems. The subsystems can be seen as Organizational Functional Subsystems or Basic Activity Subsystems.

Functional Subsystems of MIS

The Production Information System tracks production data, generates production-related reports and provides them to targets users. Marketing Information System gathers data about sales, stock, distribution costs, promotion costs, media effectiveness and so on. The Financial Information System keeps data on customer credit, accounts payable, accounts receivable, cash management, fund allocation, etc HRD information system is concerned with the personnel functions such as hiring and training of personnel, fixation and payment of wages and salary etc. R & D information system takes care of data on R & D

Basic Activity Subsystems of MIS

The Transaction Processing System is developed to support dayto-day operations. The Process control systems have sensors to measure processrelated variables and computer. The Office Automation transfer System such include measurements the to the of

application

computer-based office-oriented technologies such as wordprocessing, desktop publishing, ,FAX, E-mail and teleconferencing. The Information Reporting Systems reports pre-planned formats and summarizes the data generated by the transaction processing subsystem in creating these reports. The Decision Support System assists unstructured decisions. Knowledge-based Systems include expert managers systems, in making

executive

information systems and business intelligence systems.

Structure

of MIS

Structure of MIS is difficult concept to understand because their is no standard or universally accepted framework for describing management information system.

MIS structure may be described by following a variety of different approaches, such as:

Physical components Information system processing functions Decision Support Levels of Management Activities and Organizational Functions.

MIS Structure Based on Physical Components Structure of MIS may be understood by looking at the physical components of the information system in an organization. The physical componemets of an organizational information system may be Hardware, Software, Database, manual procedures and operating persons. Hardware : Hardware refers to the physical data processing equipment and peripheral devices. For Example, CPU, monitor, keyboard , printer etc. Software : Software is a broad term given to the instruction or programs that direct the operation of the hardware. Software could be two types System Software and Application Software. Database : The Database consists of all data utilized by the application software. Data stored in files. Operating Personnel : Personnel like Computer Operators, Computer Programmers, System analyst, System Managers etc are the operating people of the IS.

MIS Structure Based on Information System Processing Functions Information System Structure can also be understood in terms of its 1.Processing Transactions File Transactions Document -----------------> Process--------------->Transaction

Information systems process transaction, where transaction may be defined as an activity taking place in an organization. For Example, making a purchase or a sale or manufacturing a product. 2. Maintain Master File Master File Transaction Data Updation

To maintain Master File: Information system create and maintain master files in an organization. A master file stores relatively permanent or historical data about organizational entities. For Example, data processing to prepare an employees salary requires data items for the employees basic pay, allowances etc. 3. Produce Report: Files--------------->Prepare Reports-------------->Report Reports are significant products of an information system. Many reports are produced on a regular basis, which are called Scheduled Reports. An information system also produces reports on ad hoc requests. These are known as special or ad hoc reports. 4. Process Enquiry : Inquiry------------------->Handle Inquiry------------------>Inquiry Response

To process Enquiries : An information system is used to process enquiries. For processing such queries, the information system uses its database. These may be enquiries with a pre-defined format or ad hoc enquiries. 5. Process Interactive Support Applications : Decision Maker < -----------> < -----------> Model Input/ output Model Processing < -----------> Decision

The information system contains applications designed to support systems for planning, analysis and decision making. Various types of models are used for processing such applications. The model of operation, as the name suggests, is interactive, in which the user responds to questions and requests for data and receives results so as to make changes in the inputs until an operation solution is found.

MIS Structure Based on Decision Support Structure of MIS can also be defined on the basis of its support in decision-making in an organization. Decisions vary with respect to the structure that can be provided for making them.

Decision situations are broadly classified into structured and unstructured on the basis of whether the procedure can be well defined or not. In case of structured decision, MIS provides all the information required to make them and it can even handle such decision automatically. decisions, the users cannot In the case even specify of unstructured the information

requirements at the various decision stages and hence MIS cannot anticipate information requirements for such decisions. Hence, the system extends facilities to the managers to interact with the database and model base for analyzing the problem and explore feasibilities for alternative solutions.

MIS Structure Based on Levels of Management Activities Management Information Systems support various management activities in an organization. This implies that the structure of an information system can be categorized in terms levels of management activities. The basic levels of activities are 1. Strategic Planning Level : Strategic planning

deals with

long-range considerations. The decisions include the choice of business directions, market strategy, product mix etc. 2. Management Control Level: Includes acquisition and organization of resources, structuring of work and acquisition and training of personnel. 3. Operational Control Level: related to short-term decisions for current operations. Pricing, production levels, inventory levels etc are a result of operational control activities. Management activities and levels are inter-related. information processing for three

MIS Structure Based on Organizational Functions The structure of Management Information System can also be described in terms of the organizational functions. Though there is no standard classification of functions, a typical set of functions in a manufacturing organization includes production, sales and marketing, finance and accounting, materials, personnel and information systems. Each of these functions, has unique information needs and each requires information system support designed specifically for it. Moreover, management information system is essentially an integration of information system that are designed to support the functional sub-systems of the organization. Each sub-systems requires applications to perform all information processing related to the function. Within each functional sub-system, there will be applications for Transaction processing, Operational control, management control and strategic planning.

Productio n

Financ Personne e l

et c

Strategic Planning

Management Control

Operational Control

Transaction Processing

Synthesis of MIS Structure Davis and Olson combined all the approaches to MIS Structure into a conceptual structure for an organizational MIS. Conceptually each functional subsystems is having its own files. The organizational MIS is having a database, models for planning, decision and investment in the model base and commonly shared application software. The common database is manage by database management software (DBMS).Conceptually it is a federation of subsystems integrated through the database software.

Strategic Planning Management Control Operationa l Planning Transacti on Processin g

Model Base

DBMS Common Application

Common Database

Formal and Informal Information Systems Management information system gathers data from internal and

external sources. Transaction processing system generates bulk of the data used by MIS. Transaction data is internally captured and stored when transactions like purchases, wage payment etc are processed. The external data sources may be people like customers, suppliers, managers, workers etc. and media like magazine, trade journals, newspapers, Govt publications etc. MIS regularly and systematically collects data and processes it into information to support managerial functions. The classification of information system into formal and informal information system is based on whether the information process uses the formal facilities for data capture, processing, storing and communicating of information. If the data processing uses the media officially prescribed and laid down, that part of MIS is formal. The formal part of MIS is strictly defined with procedures for access and updating through an authorization system.

The

informal

MIS

does

not

have

any

well-defined

routine

or

procedure. Managers conversation with customers over telephone may give them some information about competitors product, price etc. Informal information is accessible to any user in the organization regardless of his hierarchical position in the firm. From the formal information system the top management requires internal information such as past sales, sales trends, distribution costs, production media and cost as well as external information such as environment of business, market condition, economic fluctuation, money value fluctuations, Government regulations etc. Both formal and informal components are to be integrated into the organizational MIS. But there is a question of accuracy of such informally generated information. If the source of data is internal, it can be checked for accuracy. But external data accuracy is difficult to ensure. Users of such information have to be careful about the authenticity of the information.

Public and Private Information Systems If the access to the information system, subject to the security procedures, is available to every one in the organization, it is called public information system. In the private part of the information system certain files are not available to others in the organization and certain files may be shared with trusted persons. These files may be created and maintained by a manager or managers for their own private use. By combining the public/private and formal and informal we have four components of information system structure. Theses are Public Formal Public Informal Private Formal Private Informal

Formal

Informal

nt of information system represent that part ofaccess to all that users in the org on that is collected, processed and stored for information the is informally ga

formal component of information system represents information that is informally

on system refers to the information that is formally generated but is available o

Private

Public