What is Information

Information is processed data presented in a form that is meaningful to the recipient and is of real value in the current context or decision making process
Data Storage

Data

Processing

Information

Data is the raw material for processing information. Data itself has no meaning or value. It is a set of facts about the Entities in the Real World 1

The Need for MIS ??

Tough Global Competition To be able to Quickly React to Changing Environment

Faster Decision Making with Minimum Uncertainties

To have a Competitive Edge Increase the Organizational Responsiveness To Manage Global Business Operation To Establish Proper Management and Control Because
Knowledge is an Asset and must not be lost

Better Productivity
Changing Organization Structures Flattening and De-Centralizing To Empower the Employees with Information at the Right Time Legal Manifestations

What Makes MIS Feasible

Cheap Computing Power (High Processing Power / Unit Cost)
Computing power doubles every 18 months Advances in data storage Advances in data mining techniques

High End Technologies

Portable Computing Advances in telecommunications / Networking infrastructure Affordable Software Solutions
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Definition of MIS
A Management Information System Is An Integrated User Machine System For Providing Information To Support the Operations, Management, Analysis and Decision Making Functions In an Organization

A Management Information System Utilizes Computer Hardware and Software Manual Procedures A Database Models for Analysis, Planning, Control and DM

Other Definitions of MIS

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

Physical Components of MIS

Hardware Refers to the Physical Computer Equipment System Software That Basically comprises of the System and the Application Software that make the MIS Possible Database Is typically the database Software that is used to store the data on which the whole MIS operates

Procedures Which comprises of User Manuals and the the Work Flows that need to be followed to work with the MIS. For Example How to Book a Sales Order
Operating Personnel Are the People who work on the MIS, Systems Analysts, Data Preparation Personnel, Database Administrator Etc
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Processing Functions of MIS

Processing Transactions Transaction are the unit activities that are performed by an organization Maintaining Master Files Store Permanent / Historical Data / Concentrated Data Produce Reports Regular / ADHOC Inquiry Processing Process Interactive Support Application Enables Planning, Analysis and Decision Making Function in an Organization
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Outputs for Users of An MIS

There are various types of outputs that are provided by an MIS Transaction Documents / Screens Informational, Action, Investigational Preplanned Reports

Monitoring Information, Problem Finding Information, Action Information, Decision Support

Preplanned Inquiry Responses

Ad-hoc Reports / Inquiry Responses

User Machine Dialog Results

Activity & Functional Sub - Sys

Strategic Planning Management Control

Transaction Processing

Finance & Accounting

Operational Control

Information Processing

DATABASE
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Top Management

Production

Marketing

Logistics

Personnel

MIS Support for an Organization

MIS For Strategy and Policy Planning and DM

EIS

OAS

Management Information for Tactical Planning and Control

DSS

Management Information For Operational Planning, DM and Control

MRS

Transaction Processing Inquiry Response

TPS
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Information Rights
PRIVACY: Right to be left alone Fair information practices (FIP):

No secret personal records Individuals can access, amend information about them Use info only with prior consent Managers accountable for damage done by systems Governments can intervene

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INFO SYSTEMS, LEVELS, DECISIONS

ORGANIZATIONAL LEVEL TYPE OF DECISION STRUCTURED OPERATIONAL ACCOUNTS RECEIVABLE
ELECTRONIC SCHEDULING

KNOWLEDGE

MANAGEMENT

STRATEGIC

TPS OAS
SEMISTRUCTURED PROJECT SCHEDULING

PRODUCTION COST OVERRUNS

MIS
BUDGET PREPARATION

DSS KWS
FACILITY LOCATION

ESS
NEW PRODUCTS NEW MARKETS

UNSTRUCTURED

PRODUCT DESIGN

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IS for Operational Control

Operational Control is the process of ensuring that operational Activities are carried out effectively and efficiently. It makes use of pre established procedures and Decision Rules

There are various processing sub systems for operational Control

Transaction Processing

Report Processing
Inquiry Processing Eg are Transactions for inventory withdrawal, or checking of inventory levels, Orders pending for a specified duration
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IS for Management Control

Management Control is required by Managers of Departments, Cost Centers The Various types of information that are required by this level of Management are Planned Information Variances from Planned Performance Reasons for Variances Analysis of Possible Decisions or courses of Action

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IS for Strategic Planning

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

Scope

Wide

Level of Aggregation

Aggregate

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Transaction Processing System

TPS : A transaction is defined as a business event / activity. A Transaction processing system supports the processing of a firms transactions Transaction Processing Systems are generally responsible for data capturing Transaction Processing System must be capable of Handling large volumes of data Must be capable of handling the transactions on line, rather than on a Batch Mode

It is the core of any MIS. The Other information systems work by utilizing the information that is captured by TPS
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Management Reporting Systems

MRS : A is an information system that provides predefined types of information to the Management for relatively structured types of information

MRS is typically used for planning and management control. Essentially the data captured by TPS is summarized into a more meaningful form to allow the managers have a global picture of the heath of the business
Various Categories of MRS Scheduled Reports Exception Reports Demand Reports
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TPS DATA FOR MIS APPLICATIONS

TPS
Order Processing
System ORDER FILE Materials Resource Planning System PRODUCTION MASTER FILE General Ledger System ACCOUNTING FILES UNIT PRODUCT COST PRODUCT CHANGE DATA EXPENSE DATA MIS FILES MANAGERS SALES DATA

MIS

MIS

REPORTS

2.23

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Decision Support Systems

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

Has a Wider Coverage on the various possibilities

The DSS must support the Decision and not replace the normal Human Decision Making Behavior

Should assist in making decisions to solve semi-structured problems

Should be Interactive, taking Regular Consolations with the User and not an isolated process 20

The Decision Making Process

INTELLIGENCE
Intelligence Implies Searching the Environment for Conditions calling for Decisions Design is inventing, developing and analyzing the possible courses of Actions Choice is selecting an alternate course of Action from those available. A Choice is made and implemented

DESIGN

CHOICE

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Decision Making
Structured Decisions v Are Frequent Unstructured Decisions
v Are Infrequent v Thrive in Ambiguous Environments v There is no pre-established decision procedure v Flourish in Definite Environments v The decision can be expressed as a set of steps / flowchart / decision tree / formula v Data requirements are well known in advance v Low / No Risk Decisions

v Not so v High Risk Associated with Such Decisions

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Structured / Unstructured Dec

For high level Management

For low level Management

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Decision Tables
1 Conditions 2 3 4 5 6

Actions

Rules

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Executive Information Systems

Is to be used by the top executives of the organization It sits on the top of all function information systems EIS is implemented by the use of special Tools such as Business Objects etc. The choice of tool is very important since these executives cannot spend a lot of time in learning the technologies While Deigning an EIS due consideration should be given to Business Content Strategic Planning and Decision Making Support, Broad Based Computing Facility Presentation Features such as drill down reporting, exceptional Reporting, Graphic Summary, OA Capabilities, Ease and Learning of use and Customization
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Office Automation Systems

Office Automation is application of Computer and Related Technologies like Communication and Networking that integrate the General Office Tasks so that the efficiency of the Work Force if greatly improved The OA Applications are Documents management systems like DBMS for Data Management Storage And Handling Message Handling Systems like internet, intranet, mailing systems for Communication etc

Teleconferencing / Video Conferencing for Communication and Decision Making

Office Support Systems like Word Processors / Graphic 26 Packages etc for Decision Making and Communication

Office Automation Systems

Thus the Key Objectives of OAS are
Toward a PAPERLESS office
Redesign of work flow Integrated software Ergonomic design Bright, cheerful work space

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Knowledge Based Systems

Knowledge work is that work that involves thinking, processing, information, formulating analyses, recommendations and procedures

KBS / ES is an knowledge intensive program that solves a problems by capturing the expertise of a human brain in limited domain of knowledge and experience. It is a self learning system
There are 5 main areas of AI research
Expert Systems Natural Languages Vision Systems Robotics Neural Networks
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General Concepts of Information

Usefulness of Information : If the cost of Information < than the value benefits to be deduced from it

Quality if Information : How efficiently it motivates human actions and contributes to effective decision making
Utility of Information Form Time Place Possession Value of Information : Change in the Decision Behavior the cost of procuring the information
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Water Fall Model

Preliminary Design Requirements Analysis Systems Design Coding Testing Maintenance

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Prototype Model
Requirements Gathering and Refinement Engineer the Product Quick Analysis and Design

Refine Prototype Customer Evaluation

Build Prototype

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Differences
Waterfall Model

Prototype Model

Mature Processes & clear requirements Low involvement of user Key emphasis on each phase Structured and less time consuming Lesser Costs Appropriate where requirements are stable and implementation cycles are small

Requirements not very clear to the user High involvement of user Lack of focus on design, coding and testing phases Repeated Iterations, hence more time consuming Greater costs Appropriate where implementation cycles are small and requirements are changing
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Spiral Model
Planning Risk Analysis

Customer Evaluation

Engineering

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Spiral Model - Features

Is a combination of waterfall and prototype models with an added function Risk Analysis Appropriate for projects with large implementation cycles > 2 years

Coding id deferred to as late as possible in order to be able to utilize latest technologies

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System Engineering & Analysis

The Set Of Activities Carried out during this phase are

Identification of Customer Needs

Evaluate System Concept for Feasibility Perform Technical Analysis Allocation System Requirements to Software, Hardware People, Databases and Procedures Establish Cost And Schedule Constraints Create a System Definition that forms the Foundation for Subsequent Work

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System Engineering & Analysis

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

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

Evaluation and Synthesis

Modeling Specification

Review

This process helps to lay down the specifications for Software Function and Performance, Softwares Interface with other systems and establish the design constraints to be met 38

Requirements Analysis-Modeling
Models are developed during the Requirements Analyst that allow the user and the Analyst to gain a better understanding of the system. The Models Focus on What to Do and not How to Do Utility of Models Aid in understanding Information, Function and Behavior of a system thereby Making RA more easy and more systematic Models are the focal point of Review and hence the key to determine Completeness, Consistency and accuracy of Function

Become the Foundation of Design Providing designer in Essential Representation of the Software that can be mapped to implementation
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Methods of Collecting Information

Questionnaires

Open-Ended Closed Ended

Observation Methods Delphi Techniques Deriving from Existing Information Systems

Manual Electronics

Group Discussions Brain Storming

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

Data Flow / Data Item

External Entity that represents the source or sink of data Represents a data storage that is generally a permanent data storage
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DFDs Case Study I

Case : Depict the process for Customer withdrawing cash from a Bank through a Teller The following considerations have been taken The Customer is making a Withdrawal using a Withdrawal slip The Customer is aware of the banking procedure and has sufficient knowledge
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DFD Tips How to make one

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

1. Customer
Account No Amount Receipt, Cash, Card

2.Complete Withdrawal Slip Information

Information

4. Teller
Signature, Card

6. Pay Balance

New Bal. Cash Amt.

5. Process Transaction

Account Debit Info

4. Validate Transaction And balance

Account No

New Balance

Debit Amt

Valid A/C

Customer Account Info

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Data Dictionary
Is a structured Repository of data about data (MEDADATA). It is a rigorous definitions of all the DATA elements and Data Structures

Data Elements are the smallest unit of data that provides for no further decomposition. Eg. Date Data Structure A group of data elements handled as a unit. For Eg the Customer Account info is a data structure of data elements like AccNo, Name, Address, Balance, Signature, Credit and Debit Information and so on. Data Flows and Data Stores

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

Design is the place where quality is fostered into the software

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Systems Design
Informational Model Functional Model Behavioral Model Data Design Architectural Design

Design

Design Code and testing Phase absorb almost 75% of the Software Cost

Other Requirements Procedural Design

Code

Test
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Systems Design
System design can be categorized into various factors such as Input Design : All care must be taken to take the correct system inputs in the most efficient and simple way. Input Design includes determining the various means by which the System would receive the inputs from the surrounding such as data Entry Screens, Bar Code Readers etc. It also accounts for the validations that would be performed by the system in order to check for the correctness of the data being entered. A correct input a very essential in order to allow successful functioning of the system in desired fashion

Output Design : Implies the careful design of the out interfaces such as screen designs and Report Layouts. The output response time should be carefully designed and should be the maximum possible 49

Systems Design
Data Design : Implies defining the data dictionary that would be used to capture the data the would be captured / generated by the system. This is one of the most important design phases since the Data Design directly would affect the performance of the system A good database design is one that not only allows you to store the correct representation of data, but also allows you to retrieve the data in a simple and efficient Manner Care should be taken to defined the low level database parameter at this phase. Instead ER Diagram and the Data Integrity constraints should be explicit, allowing the flexible choice of the database details to be taken care of at the implementation level
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Systems Design
Architectural Design : The prime Objective is to develop a modular program structure and represent the control relationship between the various components. It also includes the design of program structure and data structure, defining the interfaces that enable the data to flow throughout the program
P1 P1 P5 P2 P3 P5 P4 P3 P2 P4 P1 P3 P5
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M P2 P4

Systems Design
Procedural Design : This occurs generally after the data and architectural designs have been accomplished. It is used to define the algorithmic details to implement the various operations that would be performed on the data. The procedural design can be done by using Structured English, Graphical Design Notations, etc

Examples
If <Condition-Description> Then <Block Pseudo code> Else < Block Pseudo code > End If
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DO While <Condition-Description> <Block Pseudo code> EndDo

Coding
Coding Involves the translation of the Detail Design Representation into a Programming Language Representation Thus to Code you need a Programming Language. The choice of the Language generally determines the complete life Cycle. A good Programming Language Will
Support Modularization (Functions, Procedures, Logical Units)

Support for Abstract Data Structures

Allows Use of Complex Data Types Ease of Learning, Using

Intelligent Compiler to produce Machine Efficient Code

Source Code Portability Java, VB.net, 4GLs. E.g. SQL Maintainability Ability to Plug Into Other Software (OLE, COM, CORBA etc)
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Coding
The Output of the Coding Phase is Lines of Code

Software Design

Coding

Lines Of Code

Categories of Programming Languages

First Generation Languages Eg Assemblers Second Generation Languages Eg FORTRAN Third Generation Languages General Purpose Object Oriented Specialized Languages Fourth Generation Languages Eg Query Generators
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Compile

Machine Exec Code

Testing
Testing is the critical element of Software Quality Assurance representing the ultimate review of specification, design and coding. Testing cannot show the absence of a defects, it can only show that the defects are present Unit Testing : Is used to test the a individual component and takes place as soon as a unit component is developed

Integration Testing : Is carried out between the various dependant components to ensure that the various components are able to perform the designation Function in relation to each other
Functional Testing : Is carried out to ensure that the product meets the acceptance criteria that has been defined during the RA Phase. In short it ensure that the system
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Testing Strategies
System Engineering
S R D C

Requirements Analysis Design Coding Unit Testing

U
I V / FT

ST

Integration Testing
Functional Testing System Testing
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Implementation of MIS
There are two scenarios of Information Systems implementation

Case I : When no Information Systems Pre-Exist in the organization

This case is easy, the new information systems are right

away implemented in the organization. There are no specific complexities involved

Case II : When there is an existing information System in Organization.

This requires special handling since the existing

information systems hold important data, which is useful to the organization and cannot be done away with The data from existing systems need to be ported to the new information systems
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Implementation of MIS
The specific four approaches for Information systems Replacement by new Systems are

Direct Parallel Modular Phase-in

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Implementation of MIS
Direct Approach

Refers to the case in which implementation of new system is done and immediately the old system is discontinued. It is also referred to as the Cut-off Approach. It is Applicable when
Old system is very small or simple It is judged absolutely worthless The new System is radically different from the existing one

It involves a high risk of failure Old System New system

59

Implementation of MIS
Parallel Approach

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

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Implementation of MIS
Modular Approach

Is a pilot approach, refers to implementations of systems on a piecemeal basis Advantages

Risk of System failure is localized Problems identified in the system can be

corrected before further implementation

Module (c) new
Module (d) new

Module (a) old

Module (b) old

Module (a) new Module (c) new

Module (b) new Module (d) new

61

Implementation of MIS
Phase-in Implementation

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

Old System
Function (a) Old Function (b) New
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Database Management
Entity

Anything of interest to the user about which data is to be collected

Data Item

Attributes

Record

Characteristics about the entity which are relevant to record

File

Database

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Database Management
The Initial Approach was to develop files to store information

Thus data files were developed and maintained separately for individual applications Problems
Data duplication

Same data stored at different location, to be processed by different applications

Data inconsistency Lack of data integration

Information spread across different files, need complex programs for data extraction Applications in file processing systems are data dependant Applications / Program manipulate the information in the files

Data Dependence

Program Dependence

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Database Management System

A database management system is a collection of software that not assist in storing information, but also aid in quick and efficient retrieval of data. The objectives of database is to have

Controlled data redundancy Enhanced data consistency Data independence Concurrency Control Ease of Use Economical Recovery from failure

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ETHICAL, SOCIAL & POLITICAL ISSUES

INFORMATION RIGHTS &OBLIGATIONS
POLITICAL ISSUES

SOCIAL ISSUES
ETHICAL ISSUES

PROPERTY RIGHTS & OBLIGATIONS

INFORMATION & TECHNOLOGY

ACCOUNTABILITY & CONTROL

INDIVIDUAL SOCIETY POLITY

SYSTEM QUALITY

4.5

QUALITY OF LIFE

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Role of End-Users in IS Development

In this case the end-users develop information system with little help from technical specialists using 4th generation tools Strengths

Increased productivity using 4th generation tools

Weaknesses

Short development times Relatively inefficient Slow transaction processing May carry high cost Large files can degrade performance Nonprocedural approach may hamper logic & updating requirements Lack of Consistency and approach to Software Development Disassociation from Primary Job for which the person was hired
Lack of a process approach for software Development Lack of quality approach (Testing, Documentation etc)

query languages graphics report generators application generators

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Role of End-Users in IS Development

Management Benefits:

Improved requirements determination Increased user involvement & satisfaction Reduced application backlog Meet organizational objectives? Quality assurance? Inadequate methodology; testing; documentation? Lost control over data?
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Management Problems: