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MIS: A Definition:
An MIS is
An integrated (computer-based) usermachine system For providing information To support decision-making functions In an organization
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Learning Goals
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Components of Computer based Information systems
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Business applications of various Information Systems
MIS Characteristics:
System approach Takes Comprehensive view in the light of its objective Management oriented Top down approach followed Derived from the overall business objectives Need based Caters to info needs at different levels Exception based Exception based reporting principle Futuristic On the basis of projections Integrated Blends info from several operational areas Common data flows Should avoid data duplication and redundancy Long term basis Strive to be futuristic Divide and conquer Use partitioning into subsystems Central database SUSHANT SHARMA Let subsystems access the master data
Systems
A SYSTEM is a set of interrelated and interdependent elements such as people, resources, concepts, and procedures intended to perform an identifiable function or to serve a goal.
System Levels (Hierarchy): All systems are subsystems interconnected through interfaces
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Systems
Are surrounded by an environment Frequently include a feedback mechanism A human, the decision maker, is usually considered part of the system
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Business System
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An Open System is very dependent on its environment :Interacts with its environment, exchanges inputs and outputs
a continuum
information using mathematical, statistical and other tools. Output: the information is displayed or presented. Storage: data and information are maintained for later use. Retrieval Dissemination of MI finished product of MIS
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Information
Processed data, presented in a form which assists decision-makers May contain an element of surprise, reduce uncertainty May provoke a manager to initiate action Data and Info relative concepts
Recency Producer-consumer relationship
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What is IS?
IS a set of interrelated components working together to collect, retrieve, process, store, and distribute information for the purpose of facilitating planning, control, coordination, analysis, and decision making in business organizations Input-process-output perspective-Accepts inputs and processes data to provide information to decision makers and helps decision makers communicate their results People-organization-technology perspective Is often at the heart of many organizations
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Technology the means by which data is transformed and organized for business use: Hardware Software Database Telecommunication People the users of IS Organization -- a collection of functional units working together to achieve a common goal
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Knowledge (Complex cognitive entity; cause-effect theories, vocabularies/conceptual maps, know-how, experience)
More
Data, Information, Knowledge and Occupations Where the primary focus of job is. Clerks
Professionals
Managers
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_Concept of Information Technology (IT) What do we mean by "IT"? Any tool for manipulating data, information - electronic: computer software and hardware - our focus - paper: documents, filing techniques - still there, gradually transformed into electronic
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Data
Information
Knowledge
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Use Procedures
Use
Users
(Organizational members: Managers, Professionals, Clerks) Perform on
In plain English, we often do not differentiate between data, information and knowledge, simply calling it all information. We often use term technology to refer to either IT or IS.
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A Transaction Processing System (TPS) is a type of information system that collects, stores, modifies and retrieves the data transactions of an enterprise.
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Characteristics of TPS
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Structured Problems
Can be addressed by an MIS Three decision models or techniques Optimization
Find the best solution
Satisficing
Find a solution which meets certain criteria
Heuristics
Rule-based solution generation
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Employees Corporate databases of internal data Databases of external data Corporate intranet Decision support systems Executive support systems
Business transactions
Application databases
Operational databases
Expert systems
Scheduled reports
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Output, or reports, are usually generated through accumulation of transaction processing data Each MIS is an integrated collection of subsystems, which are typically organized along functional lines within an organization
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Uses internal data stored in the computer system End users can develop custom reports Requires formal requests from users
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Daily Sales Key Indicator Report This Month Total Orders Month to Date Forecasted Sales for the Month Rs1,808 Rs2,406 Last Month Rs1,694 Rs2,224 Last Year Rs1,014 Rs2,608
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Daily Sales by Sales Rep Summary Report Prepared: 08/10/xx Sales Rep ID CAR GWA SAK JWN Amount Rs42,345 Rs38,950 Rs22,100 Rs12,350
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Decision Making
Decision: a reasoned choice among alternatives Examples: Where to advertise a new product What stock to buy What movie to see Where to go for dinner Decision Making: a process of choosing among alternative courses of action for the purpose of attaining a goal or goals Decision making vs. problem solving? ART or SCIENCE?
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Simons Model
External Internal Intelligence AI, EIS
Problem Identification
ES Design
Qualitative Analysis
DSS
Quantitative Analysis
DbDSS, MbDSS
GDSS
Choice
Decision
ES
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1. Data Management Subsystem 2. Model Management Subsystem 3. Knowledge Management Subsystem 4. User Interface Subsystem 5. The User
Data Management
Model Management
Knowledge Management
Other Systems
User Interface
Intelligence phase Reality is examined The problem is identified and defined Design phase Representative model is constructed The model is validated and evaluation criteria are set Choice phase Includes a proposed solution to the model If reasonable, move on to the Implementation phase Solution to the original problem Failure: Return to the modeling process Often Backtrack / Cycle Throughout the Process
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Problem or Symptom?
Includes Understanding the problem Testing solutions for feasibility A model is constructed, tested, and validated
Types of Decisions
Type of structure - Nature of task
Structured Unstructured
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Nature of Decision
Structured Problems
Routine and repetitive with standard solution Well defined decision making procedure Given a well-defined set of input, a well defined set of output is defined
Semi-structured Problems
Has some structured aspect Some of the inputs or outputs or procedures are not well defined
Unstructured Problems
All phases of decision making process are unstructured Not well defined input, output set and procedures
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The model (i.e., the decision context and user criteria), and
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DSS In Focus : Major Functions (Capabilities) of the MBMS Creates models easily and quickly, either from scratch or from existing models or from the building blocks. Allows users to manipulate the models so they can conduct experiments and sensitivity analyses ranging from what-if to goal seeking. Stores, retrieves, and manages a wide variety of different types of models in a logical and integrated manner. Accesses and integrates the model building blocks. Catalogs and displays the directory of models for use by several individuals in the organization. Tracks models data and application use. Interrelates models with appropriate linkages with the database and integrates them within the DSS. Manages and maintains the model base with management functions analogous to database management: store, access, run, update, link, catalog, and query. Uses multiple models to support problem solving.
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Provides expertise in solving complex unstructured and semi-structured problems What models to use, how, interpreting results Reasoning, handling uncertainty, learning from data Expertise provided by an expert system or other intelligent system (AI techniques) Leads to intelligent DSS Example: Data mining
Data Mining for Decision Support
Software analyzes vast amounts of data Attempts to discover patterns, trends, & correlations May perform regression, decision tree, neural network, cluster detection, or market basket analysis
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Management Science/Operations Research The impact has mostly been on structured problems (rather than tasks), where the objective, data, and constraints can be prespecified. The payoff has been in generating better solutions for given types of problems. The relevance for managers has been the provision of detailed recommendations and new methodologies for handling complex problems.
Decision Support Systems The impact is on decisions in which there is sufficient structure for computer and analytic aids to be of value but where the managers judgment is essential. The payoff is in extending the range and capability of computerized managers decision processes to help them improve their effectiveness. The relevance for managers is the creation of a supportive tool, under their own control, that does not attempt to automate the decision process, predefine objectives, or impose solutions.
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Models
Major Component of DSS Use Models instead of experimenting on the real system A model is a simplified representation or abstraction of reality. Reality is generally too complex to copy exactly Much of the complexity is actually irrelevant in problem solving
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Benefits of Models
An MSS employs models because 1. Time compression 2. Easy model manipulation 3. Low cost of construction 4. Low cost of execution (especially that of errors) 5. Can model risk and uncertainty 6. Can model large and extremely complex systems with possibly infinite solutions 7. Enhance and reinforce learning, and enhance training.
Computer graphics advances: complement math models using more SUSHANT SHARMA iconic and analog models (visual simulation)
Heuristics
Rule based solution generation
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Mathematical Model
Identify Variables Establish Equations describing their Relationships Simplifications through Assumptions Balance Model Simplification and the Accurate Representation of Reality Modeling: An Art and Science
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Quantitative Models
Uncontrollable variables Decision Variables Mathematical Relationships Result Variables
Decision Variables
Describe alternative courses of action The decision maker controls them
Result Variables
Decision Variables Investment alternatives and amounts How long to invest When to invest Advertising budget Where to advertise
Result Variables Total profit Rate of return (ROI) Earnings per share Liquidity level
Marketing
Market share Customer satisfaction Total cost Quality level Employee satisfaction
Manufacturing
What and how much to produce Inventory levels Compensation programs Use of computers Audit schedule
Accounting
Transportation
Shipments schedule
Services
Staffing levels
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An interactive modeling process Four types of analytical modeling What-if analysis Sensitivity analysis Goal-seeking analysis Optimization analysis What-If Analysis End user makes changes to variables, or relationships among variables, and observes the resulting changes in the values of other variables
Sensitivity Analysis
A special case of what-if analysis The value of only one variable is changed repeatedly, and the resulting changes on other variables are observed Typically used when there is uncertainty about the assumptions made in estimating the value of certain key variables Instead of observing how changes in a variable affect other variables, goalseeking sets a target value (a goal) for a variable, then repeatedly changes other variables until the target value is achieved A more complex extension of goal-seeking The goal is to find the optimum value for one or more target variables, given certain constraints
Goal-Seeking Analysis
Optimization Analysis
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Descriptive Models
Describe things as they are, or as they are believed to be Extremely useful in DSS for evaluating the consequences of decisions and scenarios No guarantee that a solution is optimal Often a solution will be "good enough Simulation: Well-known descriptive modeling technique
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Search Approaches
Analytical Techniques Algorithms (Optimization) Blind and Heuristic Search Techniques
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TABLE Examples of Heuristics Sequence jobs through a machine Purchase stocks Do the jobs that require the least time first. If a price-to-earnings ratio exceeds 10, then do not buy the stocks. Do not use the freeway between 8 and 9 a.m. Consider only those projects whose estimated payback period is less than two years. Buy only in a good neighborhood, but buy only in the lower price range.
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Travel
Purchase of a house
Evaluation of Alternatives
Evaluation (coupled with the search process) leads to a recommended solution Multiple Goals, often Conflicting goals Typical quantitative models have a single goal Multiple goals: Utility theory, Goal Expression of goals as constraints, etc. programming,
Sensitivity Analysis Change inputs or parameters, look at model results Automatic, Trial and error SUSHANT SHARMA
What-If Analysis
Figure Spreadsheet example of a what-if query for a cash flow problem Goal Seeking Backward solution approach Example: Figure 2.9 Example: What interest rate causes an the net present value of an investment to break even? In a DSS the what-if and the goal-seeking options must be easy to perform
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Important Issues
Resistance to change Degree of top management support Users roles and involvement in system development Users training
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TABLE -- Cognitive-style Decision Approaches. Problem-solving Dimension Approach to learning Heuristic Learns more by acting than by analyzing the situation and places more emphasis on feedback. Analytic Employs a planned sequential approach to problem solving; learns more by analyzing the situation than by acting and places less emphasis on feedback. Search Uses trial and error and spontaneous action. Approach to analysis Uses common sense, intuition, and feelings. Uses formal rational analysis. Develops explicit, often quantitative, models of the situation. Scope of analysis Views the totality of the situation as an organic whole rather than as a structure constructed from specific parts. Basis for inferences Looks for highly visible situational differences that vary with time. Locates similarities or commonalities by comparing objects. Reduces the problem situation to a set of underlying causal functions.
(Source: G. B. Davis. Management Information Systems: Conceptual Foundations, Structure, and Development.
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TPS
Clerical and supervisory
MIS
Middle Management
DSS
All levels including top mgmt. and professionals. Decision, flexibility Strategic planning, integrated problems
Focus
Data Information transactions Applications Payroll, sales Sales data, inventory forecasting, Production control,
TPS
Low
MIS
Moderate
DSS
High
Ease of use
Processing Interest
Expediency
Efficiency
Effectiveness
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Groups
Most major decisions in medium and large organizations are made by groups Conflicting objectives are common Variable size People from different departments People from different organizations The group decision making process can be very complicated Consider Group Support Systems (GSS) Organizational DSS can help in enterprise-wide decision making situations
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Presentation content
Drill down reporting Exceptional reporting Graphical summary
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Artificial Intelligence:
Stores information in active form Creates mechanism not subjected to human feelings Eliminates routine and unsatisfying jobs Enhances organizations knowledge base Generates solution to SUSHANT specific problems SHARMA
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1. Knowledge engineer
Specialist eliciting information and expertise from other professionals Translates information into set of rules, or frames, for an expert system
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1. Pile File Set of records in no particular order. Records do not follow any particular sequence of attribute values. Adopted When it is not possible to arrange the records in any logical order Fields of the record are not well defined. Exact usage of the file cannot be anticipated. Files created punching the documents in the order they arrive. The pile file so created may be then organised into another mode. Location of a record in a pile file can be done by sequentially searching the records till the desired value of the key attribute is reached. Addition of new records is very simple. New records are added at the end of the file. Changes and deletions of records in a pile file stored on random access media can be done by locating the record and changing its contents or flagging the record to indicate that the record has been invalidated. The file may be reorganised periodically to remove the holes created by the deletion of records. However, updating of the file on sequential SUSHANT SHARMA access media can be done only by creating a new file.
2. Sequential File
Files on sequential access media are generally organised in the sequential mode. However, sequential files may also be maintained on the random access media. The records are arranged in the ascending or descending order of the values of a key attribute in the record. Sequence of records in the file can be changed from one key attribute to another key attribute by sorting the file. Key for sequencing the records may also consist of a group of attributes. Updating and processing of records of a sequential file stored on a sequential access media is carried out in a batch mode. Transactions leading to changes in the file data are collected in a batch periodically. For example, transfers, promotions, retirements which lead to changes in the personnel file data can be collected on monthly basis. These transactions collected in a batch are then recorded in the form of a transaction file. The transaction file is arranged in the same sequence as the master file to be updated. The updating involves the reading of records from both transaction and the master file and the matching the two for their key attribute. The additions, deletions and changes are then carried out in the records of the master file and the updated records are then written on the new updated master file.
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Sequential File The location of record in the sequential file stored on random access medial can be done by one of the following methods:
Sequential search Binary search Probing Skip search
In sequential search, each record is read one after another starting from the first record in the file till the desired key attributed value is reached. Binary search can reduce the search time considerably as compared to the sequential search. In binary search, the first record to be read is the one in the middle of the file. Say, in a file containing 200 records, the 100th record will be read first. The value of the key attribute of this record will either be less or more than the attribute value of the desired record. By this way, we can decide whether the desired record lies in the first half of the file. The next record read is the one which lies in the middle of the area localized from the previous read operation. For example, if the record lies in the first 100 records, the next record is the 50th record to decide whether the desired record lies amongst the first fifty or theSHARMA next fifty. SUSHANT
Sequential File The process is repeated many times till the desired record has been localized into a very small area consisting of, say 5 or 10 records. This area of 5 or 10 records is then searched sequentially to locate the desired record. Probing is done where the approximate range in which the desired record may lie can be ascertained from the value of the key attribute. Say, if the key attribute is the name of the teacher and it is known that a name starting with K like KRISHNA LAL lies between 38 percent and 46 percent of the records, only this area may be searched sequentially to locate the desired record. In skip search, records are accessed in a periodic order. Say, every 20th record is read till the value of the key attribute exceeds the desired value. By this method, an area of 20 records is localized for the search of the desired record by sequential search.
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3. Indexed Sequential File Search in a long sequential file can be very time-consuming leading to unnecessary delays in the location of the record and avoidable computer time being spent in the search routine. The search can be made faster if an index to the file is provided. Such a file organisation is called Indexed Sequential File. The index of the file contains a pointer record for one group of records in a main file. The index file can be searched by the sequential search or binary search method. For very long file, index file itself can be long. In such a case, an index of the index file may be necessary, called the higher level index to search the record in the lower level index file. A number of levels of index file can be kept so that the highest level of index is small enough to store in the main memory or the computer. Files can be indexed on the key attribute in which they are sequenced. They may also be indexed on other attributes on which they are not sequenced. In that case, one pointer record will be required in the index for each record of the main file. Such a file becomes an indexed nonsequential file. Indexed non-sequential file makes it possible to locate the record by more than one key attributes of the record.
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Indexed Sequential File The file may be organised in the indexed sequential mode for the attribute most commonly used to locate the record and in the indexed nonsequential mode for other attributes. Addition of records in the sequential file are made in the overflow areas provided in each group. For this purpose, some sectors in the area forming the group can be kept blank, while organising the file, as a overflow are. Additional overflow areas may be kept at the end of the file. The added record is chained to the records immediately preceding and immediately following the added record in the sequence by providing a pointer to the added record in the record proceeding it and to the succeeding record in the added record. Such chaining retains the facility of sequential search within the group. The indexed sequential files will hove to be reorganised periodically when the overflow areas become full or too many holes have been created due to the deletion of obsolete records or the sequential search through the chained records has become too time-consuming. The reorganisation can be done by reading the old file, regrouping the SUSHANT SHARMA updated records, and writing a new file with new indices.
4. Indexed File (Inverted File) In the inverted file organisation, one index is maintained for each key attribute of the record. The index file contains the value of the key attribute followed by the addresses of all the records in the main file with the same value of the key attribute.
Ref. No 1 2 3 4 5 6
Name
Educational Qualification Graduate Post Graduate Post Graduate Graduate Ph. D Graduate
Badri Nath Ram Lal Neena Mathur Anjana Roy Pushpa Batra Kripa Ram
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Indexed File (Inverted File) In the example of personnel information for school teachers, say the main file contains the records of six teachers, as follows: The index file for key attribute, Educational Qualification would contain GRADUATE POST GARDUATE Ph. D 1,4,6 2,3 5
And that for key attribute, Subject taught would contain ECONOMIC HINDI HISTORY The main file need not contain the values of those attributes for which indices have been maintained since these are already contained in the index files. The main file may also be in any sequence. It can just be a pile SUSHANT SHARMA file.
Indexed File (Inverted File) The inverted file organisation requires three kinds of files to be maintained, the main file, the directory files and the index files. The directory file contains the value of the key attributes and the pointer to the first record in the index file of the addresses of all the records in the main file with that value of the key attribute are contained. There is a separate directory file for each key attribute. Inverted file is very useful where the list of records with specified value of key attribute is required. For example, we want to have a list of all the teachers posted in Bikaner district or all those teaching physics. Addition of records in the main file can be made at the end of the file since it is not maintained in any sequence. However, corresponding entries have to be made in all the index files for the key attributes of the record. Changes in the key attributes of the record and deletions will also have to be accompanied by corresponding changes in the index file. The maintenance of index files, therefore, can be very time consuming.
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6. Direct File Direct files are maintained in any particular sequence. Instead, the value of the key attribute is converted in to sector address by a predetermined relationship. The predetermined relationship converts the value of the key attribute into the sector address for the storage and retrieval of the record. The method is generally used where the range of the key attribute value is large compared to the number of records. The method of converting the value of the key attribute into the address is known as randomising or hashing. Many different methods of hashing are in use. The most common method of hashing is the division method. In this method, the value of the key attribute is converted into an integer if its already not an integer. It is than divided by another integer, often a prime number, just smaller than the file size. The remainder of the division is used as the address. The other methods used for hashing are the mid-square and folding method. For example, if the personal record of NEENA MATHUR is to be stored the name NEENA may be converted into an integer by stripping of the zone bits to get 55551. SUSHANT SHARMA
Direct File If the teacher code number is used as the key attribute, it may already be an integer. For a file size of 1000, the prime number used is 997. the integer 5551 is then divided by 997 to get the remainder as 816. the record is then stored in sector with address 816. It is quite possible that two different values of key attributes may get converted to the same address on hashing, when a collision is said to have occurred. The collision is handled by storing the record immediately following the previous record stored with the same hashed address. Collisions can also be handled by providing blocks or buckets or records to store all the records with the same hashed address. When the bucket is full, additional records with the same hashed address can be stored in the overflow areas provided at the end of the file. The overflow records are chained to the last record in the bucket. The storage of records in a direct file are randomly scattered in a file. It is not possible to utilize full storage on the file. The ratio of the number of records stored to the total capacity of the file is called the loading factor. High loading factor leads to too many collisions thereby increasing the search time for the records. On the other hand, a very SUSHANT SHARMA low loading factor leads to under-utilization of the file area.
7. Multiring File Where lists of records with specified key attribute value are desired frequently, multiring files are useful. For example, we may like to have the list of teachers teaching physics or the list of teachers retiring in a particular year. In this file organisation, all the records with a specified key attribute value are chained together. The directory file, like the one in the inverted file organisation, contains the pointer to the first record with specified key attribute value. The first record contains the address of the second record in the chain and the second contains the address of the third record. When the last record in the chain contains pointer to the first record, the records are said to form a ring. A number of such rings for different key attribute values and for different attributes can be formed. The directory provides entry point to the rings.
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Hierarchical Model:
Relationship between entities is stored in the form of a tree which has a root. The root may have a number of branches and each branch may have a number of sub-branches and this may continue for any number of levels. The record at the lower level is called the child of the next higher level and the higher level record is called the Parent of its child records. For example a project may consist of sub-projects of work centres and each work centre may have a number of employees in it.
Network Model:
The relationships are stored in the form of sets; each set having one owner and a number of members. For example, to indicate the employee working in a work-centre, the work-centre will be the owner of the set and each employee a member of that set. A entity may be a member of more sets and the owner of a set may be member in another set and viceversa.
Project no. E1 E2 E3
Name X X X
Location X X X
Budget X X X
Records are stored in the form of tables called relation. For example, if we want to store the project records, the employee records and the relationship between the project and the employee indicating the percentage of the employee time devoted to that project, it may be stored in the form of three tables. Relational approach is more amenable to mathematical theory by considering each table as a mathematical relation, each row of the table considered as a tuple and each column in the row as the attribute drawn from a population domain. For the reason the relational approach is superior to other approaches.
Project no. P1 P1 P1 P2 P2 P2 P3 P3 P3
Employee no. E1 E3 E7 E1 E4 E9 E3 E7
% Time 20 28 35 25 40 32 15 30 20
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E9
Advantages of Data-Base Systems i. Redundancy controlled: In traditional file systems, each application has its own private files. Many of the data items in a file may be common to other files i.e., the same data items in a file may be stored in a number of files. Apart from wastage of storage space, multiple updation are required for a single transaction in the real system. This is avoided by maintaining only one copy of the data in the data-base system and interlinking them by logical relationships. Even if, multiple copies have to be maintained due to technical reasons, this fact is known to the data-base system and the copies are updated automatically with the single user entry. Inconsistency Avoided: updation of separate application files for the same real transaction leads to inconsistency of data because different application file are updated at different points according to schedule. Two separate files may, thus, indicate different status of the same data at a given point of time. For example, the record file may show that employee A is posted in department X while at the same time the department record file may indicate that he is posted in department Y. Control of redundancy automatically solves the problem of inconsistency, in the database system. Integrity of Data: Inconsistency between two entries representing the same facts is an example of lack of integrity of data. Even if the redundancy is controlled, there may still be in accuracies in data. For example an employee may be shown posted in two separate departments in the department wise file or an employee may be shown to have worked for 200 hours in a week. The central control of data provided in the data-base system helps to control such inaccuracies in data and maintain its integrity. Integrated View of Data: Integration of related files in the data-base system provides an integrated view of data. The data needs of a top management query, like the proportion of a department budget for pay and allowances spent on a specific project, may cut across various applications. Such queries are extremely difficult to answer in a traditional file system. Unstructured information Needs: Information needs of unstructured management decisions are not known in advance and cannot be preprogrammed. Since the related data are centralized and the relationship structure among entities is built into the data-base, it is more suited to handle unstructured queries. Enforcement of Standards: With central control of the data-base, the Data-Base Administrator can ensure that desired standards are followed in the representation of data. Standardizing of data formats is particularly important for interchange or migration of data between systems. Security Restrictions: The Data-base Administrator, having complete jurisdiction over the operational data, can ensure that access to the databases is available only to the authorized users. He can define different authorization checks for each type of access viz., retrieve, modify, delete etc., to each piece of information in the data-base.
ii.
iii.
iv.
v.
vi.
vii.
viii. Data independence: It is a crucial advantage of the data-base system over the traditional file system. Most traditional file systems are highly datadependent. This means that the way the data are organized and the way it will be accessed is dictated by the needs of the specific application. The knowledge of the storage organisation and the access strategy is built into the application software. For example, if the data are organized in the indexed sequential manner, this fact has to be known to the application software and the procedures for retrieval and updating of data are built in the application software keeping this fact in view. A change in the storage structure or access strategy of data will drastically affect the application software. It was found in some of the traditional systems that organizations were spending as much as 6% of their programmers time on the SUSHANT SHARMA modifications of the existing application software and only 40% on the development of new software.
TRANSFORMATION OF BUSINESS
GLOBALIZATION Global Market Environment KNOWLEDGE-BASED ECONOMIES More jobs in sales ,education& services than factories PRODUCTIVITY NEW PRODUCTS & SERVICES KNOWLEDGE AS AN ASSET TIME-BASED COMPETITION SHORTER PRODUCT LIFE TURBULENT ENVIRONMENT LIMITED EMPLOYEE
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TRANSFORMATION OF ENTERPRISE
FLATTENING- Squeezing Functional Hierarchy DECENTRALIZATION- Distributed Work Load FLEXIBILITY- Offers openness of working hours& decision making for employees convenience LOCATION INDEPENDENCE Gives Possibilities of Mobile and virtual offices LOW TRANSACTION COSTS EMPOWERMENT COLLABORATIVE WORK People work in coordination
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INCREASED CAPABILITY OF IT
Technology Features Description
Processing capability
Increase in computing power and reduction in prices of hardware has given rise to the availability of machines to masses. Computers are available in handy sizes, which can be ported, plugged and played at any place. This adds to the services of mobile business persons, e.g., directors, managers, sales persons. Information network infrastructure has advanced to the extent that today you can access any computer from any where in the world. Easy work flow automation can be done to reduce paper work and speed up the processing of documents in the offices. This feature facilitates the requirements for empowerment and decentralization of work to employees. Easy to learn graphical interfaces have saved the users from the unpleasant task of memorizing commands. Now, end users can operate the software with great ease. New, fascinating form of data presentations have given a boost to the usage of the systems. SUSHANT SHARMA
Portable Computing
Global Networking
Enterprise Networking
Distributed Computing
MIS is an integrated collection of functional information systems, each supporting particular functional areas.
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Internet
Business transactions
Accounting MIS
Marketing MIS
Business transactions
Etc.
Extranet
Figure 9.3
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Financial MIS
Finance information system help organize budgets, manage cash flow, analyze investments, and make decisions that could reduce interest payments and increase revenues from financial transactions Provides financial information to all financial managers within an organization.
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Financial DSS
Business transactions Transaction processing systems Databases of valid transactions for each TPS Financial MIS
Business transactions Financial statements Internet or Extranet Operational databases Uses and management of funds Financial statistics for control Customers, Suppliers
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Financial ES
Business transactions
Figure 9.3
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Finance
The job of financial managers is to manage money as efficiently as possible by: Collecting payables as soon as possible Making payments by the latest time allowed by contract or law Ensuring that sufficient funds are available for day-to-day operations Taking advantage of opportunities to accrue the highest yield on funds not used for current activities
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Finance
Cash Management
Financial ISs help balance the need to accrue interest against the need to have cash available. Cash management systems (CMS): Handle cash transactions specifically. Electronic fund transfer (EFT): The electronic transfer of cash from one bank account to another.
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Finance
Investment Analysis and Service
Analyze and project the prices of a specific stock or bond. Transmit buy and sell orders electronically. Provide clients with a detailed statement. Monitor account information and news online.
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Marketing MIS
Marketing information system help analyze demand for various products in different region and population groups in order to more accurately market the right product to right producer. Marketing ISs provide information that helps management decides how many sales representatives to assign to specific products in specific geographical area Supports managerial activities in product development, distribution, pricing decisions, and promotional effectiveness
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Schematic
Manufacturing DSS
Business transactions
Marketing MIS
Sales by customer Sales by salesperson Operational databases Sales by product Pricing report Total service calls Customer satisfaction Manufacturing ES
Figure 9.9
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Marketing decision makers use the data to identify and solve marketing related problems.
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Marketing Information system supplies three types of information. Recurrent Information Monitoring Information Requested Information
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Recurrent Information
This is the data that an MIS supplies periodically about the market share of a specific product and customers awareness of companys brands. The data may be supplied on weekly, monthly or yearly basis.
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Monitoring Information
This is the data obtained from the regular scanning of certain sources. Marketing managers may need data related to competition or the industry. It is essential so that marketing managers can be alert and identify potential problems
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Requested Information
This information is developed in response to some specific request by the marketing manager. Secondary data or primary data through survey research are collected in response to the specific request. The MIS supplies the requested information for decision making.
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Internal data
Requested information
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Cost Analysis-The cost analysis is possible with the effective accounting system. The classification and analysis of the cost of production, cost of distribution and selling may provide adequate information for the management purposes . Financial Records- The financial records & publications may provide adequate opportunities for management of sales & marketing activities .Many companies prepare periodical final statement to observe the balance of each item of financial records.
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Marketing Environment
Customer Needs
Competition
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Anticipation Of Customer Demand-Every marketer needs up-to-date knowledge about consumer needs and wants. Systematic Approach-Expanding markets and competitive marketing environment require adequate market intelligence system. Economic indicator-Marketers must have latest information on the changing trends of supply, demand and prices
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Significance of Analysing Competition-Marketer cannot survive without having information regarding nature , character and size of competition to be met. Development of Technology-Marketers must have latest information regarding technological development. Understanding the Consumer-Information system can establish proper two way flow of information and understanding between marketers and consumer. Marketing Planning-Marketing plans and programmes are based upon information supplied by economic forecasts and market research.
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SYSTEM PLANNING 1Mechanized Vs Non Mechanized IS 2Centralization Vs Decentralization of computing facilities 3Batch mode Vs real Time mode of Info. Processing 4Independent Vs Modular method of designing IS 1, PERFORM COST -BENEFIT ANALYSIS BENEFITS Reduction in staff , Improved Processing speed per unit of workload, ready access to info, reduction in expenditure to store ,analyze and organize massive business data DISADV:- Equipment Cost, Enhancement in the cost More skilled and higher paid staff, technical involvement of professional programmers, expenses encountered for formatting and reproduction of data
System Feasibility Test /Evaluation of complete System Plan 1Based Checking ability to meet user needs/ Use of resources to generate benefits, Impact on user organization, Workability of the system ---- Check scope and complexity of computerization
System Design Information base according to Sources, characteristics, Purpose1Sources can be single/dual . Eg. Accounts deptt. (single source) .Inventory IS (dual) Stores and Purchase depts. 2Purpose- User how it will be used and when it will be used 3Characteristics of Info- Size, variability , volatility &activity
DEVELOPMENT STAGE SOFTWARE BASED 1Decide coding language based on nature of application area, quantum of data to be handled, and amount of calculation, basic software language availability to handle any language (BASIC, COBOL, FORTRAN, PASCAL, C, ORACLE, and JAVA etc. 2Decide on capacity of computer ( 8 Bit/ 16 Bit) 3Utility Part of basic software transfer of data from card reader to tape drives , from disk drive to the printer etc. Larger the computer, more the utilities reducing writing of programs to some extent due to sorting and merging facility. 4Multiprogramming facility with lesser files on the disk for limited memory space and tape disk facilities.
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DEVELOPMENT STAGE PROCESS BASED 1Understanding Physical flow of data and current usage 2Decide outputs attributes- Format /frequency/presentation/ items of output info, level of aggregation 3Decide input requirement source, agency for collection , format, frequency of collection , items of data , 4Developing Logical questions with Yes /No results leading to further progress and back tracking 5Develop codification sheet for writing programs 6Removal of errors from the program(debugging) and their integration into system design 7Testing with sample data 8Ensuring computerized system to deliver results before discontinuing the manual system 9Development of Manuals 1Comprehensive training and instructions to the user.
System Audit 1Identifying Locations of control points for system errors and reasons for selection of these points on the basis of frequency of error ,magnitude of error ,cost of error detection 2Develop Audit trait a series of well defined provisions which permit a person to follow and verify the system process. 3Establish steps for System recovery issue , system processing alternatives ,system security , systems restart
IMPLEMENTATION STAGE 1Obtaining Input - Output from the computer- 2 -way Process . test run and parallel run 2Documentation System Manual , operation manual and user manual System Manual indicated complex design of IS showing different elements of computerization linked through flowchart, types of output, and formats of input.rief outline of IS Operational Manual Technical instructions for the actual computer operations different job steps User Manual brief outline of IS, its major benefits, Inputs needed and outputs expected. 3User Training 4Modification to the installed system Continuous Process for the professional so that IS is updated and meaning for the user for changes in the environment
Process Evaluation 1Design of the system and quality of programming determine Time taken by processing 2Utilization of hardware resources- different memory partitions &allocating input output devices to each partition 3Lack of debugging leads to time run and again- Best check- Lay down permissible no of development runs before sending it of production runs
Product Evaluation 1Ensure acceptable quality of output report and continue to be use in
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