Unit 1 & 2

Management Information
System
Syllabus Overview

UNIT 1
 Foundation of Information Systems: Introduction to
information system in business, fundamentals of information
systems,
 Solving business problems with information systems, Types
of information systems, Effectiveness and efficiency criteria
in information system.
Goal: This course provides a broad introductory understanding of information
systems, seen within organizational and societal contexts. The aim is to provide
students with an appropriate balance of technical and organizational perspectives
to serve as the basis for further study in the field.

Objectives
 „Role of information systems in business environment to
achieve competitive advantage „
 Fundamental Knowledge of information systems
architecture and IT infrastructure „
 State-of-the-art technologies that will contribute towards
future development of IT systems and applications „
 Issues contributing to security, integrity, ethics, successful
planning, implementation and management of IT systems
Reference Book: O’Brien J. A. and Marakas G. M., Introduction to Information
Systems, 2nd Edition, McGraw-Hill Irwin, 2008

UNIT 2
 An overview of Management Information Systems:
Definition of a management information system, MIS versus
Data processing, MIS & Decision Support Systems, MIS &
Information Resources Management, End user computing,
Concept of an MIS, Structure of a Management information
system.

UNIT 3
 Concepts of planning & control: Concept of organizational
planning, The Planning Process, Computational support for
planning, Characteristics of control process, The nature of
control in an organization.

 Understand what managerial planning is and why it is
important.
 Identify and analyze the various types of plans and show
how they relate to one another.
 Outline and discuss the logical steps in planning and see how
these steps are essentially a rational approach to setting
objectives and selecting the means of reaching them.
 Explain the nature of objectives.
 Describe how verifiable objectives can be set for different
situations.
Objectives

UNIT 4
 Business applications of information technology: Internet &
electronic commerce, Intranet, Extranet & Enterprise
Solutions,
 Information System for Business Operations, Information
System for Managerial Decision Support, Information System
for Strategic Advantage.

 To review the understanding about Business Strategy and
its components
 To understand the role of Information Systems in Strategy
Formulation and Implementation
 To learn how to use Information Systems for gaining
competitive advantage
Objectives

UNIT 5
 Managing Information Technology: Enterprise & global
management, Security & Ethical challenges, Planning &
Implementing changes.
 Advanced Concepts in Information Systems: Enterprise
Resource Planning, Supply Chain Management, Customer
Relationship Management, and Procurement Management.

 Identify and give examples to illustrate the following aspects
of customer-relationship management, enterprise resource
management, and supply chain management systems:
a. Business processes supported.
b. Customer and business value provided.
c. Potential challenges and trends.
Objectives

UNIT 1
FOUNDATION OF INFORMATION
SYSTEM

Data and information: Data is raw unprocessed facts and figures that have no
context or purposeful meaning and information is processed data that has
meaning and is presented in a context.
Information as a Strategic Resource: "Drowning in data, yet starved of information"

Attributes of Information Quality

What is a System?
• A system is…
– A set of interrelated components
– Working together as planned….
– To achieve a common set of objectives
– By accepting inputs and producing outputs
An organized transformation process
Animation Link: ..VideosSystems approach in IS.mov

Basic Functions of a System
 Input
 Capturing and assembling elements that enter the system to be
processed
 Processing
 Transformation process that converts input into output
 Output
 Transferring transformed elements to their ultimate destination
 Feedback is data about the performance of a system
 Control involves monitoring and evaluating feedback
 to determine whether a system is moving toward the achievement of
its goals.
 makes necessary adjustments to a system's input and processing
components to ensure that it produces proper output

The Information System transforms the input of data resources into an output of
information and its products. The processed data as information shall be stored
for further uses.

Information System
 An information system has a set of interrelated
components that collect (or retrieve), process, store, and
distribute information to support decision making and
control in an organization.
 An information system (IS) can be any organized
combination of people, hardware, software,
communications networks, and data resources that
collect, transforms, and disseminate information in an
organization.

Information System Activities
https://www.scribd.com/doc/396076/Foundations-of-Information-Systems-in-Business

Components of Information System

Information system
 Interrelated components working together to collect, process,
store and disseminate information to support decision making
,coordination ,control, analyze and visualization in an
organization
 Animation Link: ..VideosMIS.mp4
 The unique ways in which organizations coordinate and organize
their work activities, information and knowledge to produce a
product or service.
Business process
Information system in business

Traditional IS solution to Business

Process steps for developing IS in business

Current Problem Solving Process

Current Problem Solving Process:
Animation Link: ..VideosSDLC.mp4

Business applications expanding role over time

Assignment 1:
1. The Indian Railways recently introduced the Web-based Passenger
Reservation System (PRS) and introduced online payment through
credit and debit cards. Explain how this information system helped
Indian Railways in becoming more efficient not just from the
customer’s point-of-view but also from the Railways management’s
perspective.
2. Difference between Competitive Advantage & Strategic Advantage.
3. Difference between Information System and Information Technology.
4. Explain the Effectiveness and efficiency criteria in information system.

INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to build
INFORMATION
SYSTEMS
Payroll
System
Inventory
System
Marketing
System
Customer
Service
System
IS Vs IT

Business perspective of the information system
Planning, coordinating and controlling
Supply chain mgmt, enterprise mgmt,
Customer relationship mgmt,&
knowledge mgmt
http://www.chris-kimble.com/Courses/World_Med_MBA/Types-of-Information-System.html

Transaction Processing System (TPS)

Process Control Systems: example

Enterprise Collaboration System
http://staff.uob.edu.bh/files/781231507_files/ch5p2.pdf

How IT increases organization flexibility
Small companies
 IT hardware/software provides precision, speed and quality,
 Immediate availability of information eliminating need of intermediate
staff
 Better management of distributed staff through information network
Large companies
 Customized product/services can be provided in small quantities at
different locations
 Massive database of customer/suppliers records can be maintained
effectively
 Easy collection of information and distribution of information to lower
level staff for problem solving

Business environment – a change
 Emergence of globalization
 Global nature, competition in word market, global work groups, and
global delivery system
 Transformation of industrial economics
 Knowledge based economics, new products& services, time based
competition, shorter product life limited employee knowledge base
 Transformation of enterprise
 Flattening of organizations , decentralization, flexibility location
independence, low cost of coordination, empowerment, collaborative
and team work,
 Emerging digital nature of business
 Digital relationship among customer, supplier and employees
 Core business being achieved through digital networks
 Rapid sensing and responding to environmental changes

Information Architecture of the organization

Information architecture as:
 The combination of organization, labeling, and navigation
schemes within an information system.
 The structural design of an information space to facilitate
task completion and intuitive access to content.
 The art and science of structuring and classifying web
sites and intranets to help people find and manage
information.
 An emerging discipline and community of practice
focused on bringing principles of design and architecture
to the digital landscape.
Information Architecture of the organization

SUMMARY ( LECTURE NOTES 1 – Information Systems in Global Business Today)
1. Explain why Information Systems are so essential in business today.
 Information Systems are fundamental for conducting Business today.
 In many industries, survival and even existence is difficult without extensive use of
Information Systems.
 Information Systems have become essential for helping organizations operate in a
global economy.
 Organization are trying to become more competitive and efficient by transforming
themselves into ‘Digital Firms’ where nearly all core business processes and
relationship with customers, suppliers, and employees are digitally enabled.
 Business today use Information Systems to achieve six major objectives:
1. Operational excellence 4. Improved Decision making
2. New product, Services & Business models 5. Competitive advantage
3. Customer / Supplier intimacy 6. Day-to-day survival

2. Define an Information System from both Technical and Business perspective
From a Technical perspective:
 An Information System collects, stores, and disseminates
Information from an organization’s environment and internal
operations to support organizational functions and decision making,
communication, coordination, control, Analysis and visualization.
 Information Systems transform raw data into useful Information
through three basic activities: Input, Processing and Output
From a Business perspective
 An Information System provides a solution to a problem or
challenge facing a firm and provides real economic value to the
business.

3. Identify and describe the three dimensions of Information Systems
An Information System represents a combination of Management,
Organization, and Technology elements.
 The Management Dimension involves:
 Leadership,
 Strategy,
 Management behaviour.
 The Organization Dimension involves:
 Organization’s hierarchy,
 Functional specialities,
 Business Processes,
 Culture,
 Political interest groups
 The Technology Dimension consists of:
 Computer Hardware,
 Software,
 Data Management technology,
 Network / Telecommunications technology (including the Internet.)

1. What is information system? Explain importance of
information system in business.
2. Define fundamentals of information system? Explain
information system resources.
3. How information system is useful in solving business
problems and what are the components of IS?
4. Describe various types of information system.
5. What do you mean by system? Explain the difference
between Data and information.
6. Define Management Support System and Decision Support
System.
Important Questions

UNIT 2
An overview of Management
Information Systems

MIS
Animation Link: ..VideosManagement Information Systems & its Functions.mp4

 The MIS is defined as a system which provides information
support for decision making in the organization.
 MIS is a system for collecting, processing, storing,
disseminating and utilizing data in the form of information
needed to carry out the functions of management
 The management information system is defined as an
integrated system of man and machine for providing the
information to support the operations, the management &
decision making function in the organization.
 The MIS is defined as a computer based information system.
MIS

Structure of MIS is a difficult concept to understand because
there is no standard or universally accepted framework for
describing management information system. For example , A
car may be perceived in a number of different way; by
describe the physical characteristics, i.e. its shapes, color,
seating capacity, door etc. MIS structure be described by
following a variety of different approaches:
1. Physical components,
2. Information system processing functions,
3. Decision support
4. Levels of management activities
5. Organizational functions
Structure of MIS

Decision Making
 A step in problem solving
 Intelligence gathering
 Definition of problem
 Data gathered on scope
 Constraints identified
 Design phase
 Alternatives identified and assessed
 Choice
 Selection of an alternative

Decision Making in Management Information Systems

Strategic Management
 The People
– Board of Directors
– Chief Executive Officer
– President
 Decisions
– Develop Overall Goals
– Long-term Planning
– Determine Direction
Political
Economic
Competitive

Tactical Management
 People
– Business Unit Managers
– Vice-President to Middle-
Manager
 Decisions
– short-medium range planning
– schedules
– budgets
– policies
– procedures
– resource allocation

Operational Management
 People
– Middle-Managers to
– Supervisors
– Self-directed teams
 Decisions
– short-range planning
– production schedules
– day-to-day decisions
– use of resources
– enforce polices
– follow procedures

Levels of Management Decision Making
 Strategic – group of executives develop overall organizational
goals, strategies, policies, and objectives as part of a strategic
planning process
 Tactical – managers and business professionals in self-
directed teams develop short- and medium-range plans,
schedules and budgets and specify the policies, procedures
and business objectives for their subunits
 Operational – managers or members of self-directed teams
develop short-range plans such as weekly production
schedules

Decision Structure
 Structured – situations where the procedures to follow when
a decision is needed can be specified in advance
 Unstructured – decision situations where it is not possible to
specify in advance most of the decision procedures to follow
 Semi structured - decision procedures that can be pre-
specified, but not enough to lead to a definite recommended
decision

Decision Support Systems
Decision support systems (DSS) are interactive software-
based systems intended to help managers in decision-
making by accessing large volumes of information
generated from various related information systems
involved in organizational business processes such as office
automation system, transaction processing system, etc.
Animation Link: ..VideosDSS.mp4

Analytical Modeling is the key: example
Type of
Modeling
Example
What-if
analysis
What if we cut advertising by 10% what
would happen to sales?
Sensitivity
analysis
Let’s cut advertising by 1% repeatedly so
we can see its relationship to sales
Goal-seeking
analysis
Let’s try increasing advertising until sales
reach $1 million
Optimization
analysis
What level of advertising maximizes our
overall profit?

Decision Support Systems: characteristics
1. Support for decision-makers in semi-structured and
unstructured problems.
2. Support for managers at various managerial levels, ranging
from top executive to line managers.
3. Support for individuals and groups. Less structured problems
often requires the involvement of several individuals from
different departments and organization level.
4. Support for interdependent or sequential decisions.
5. Support for intelligence, design, choice, and
implementation.
6. Support for variety of decision processes and styles.
7. DSSs are adaptive over time.

DSS Components
http://dsssystem.blogspot.in/2010/01/components-of-decision-support-systems.html

For an example of the components of a Decision Support
System, let’s consider the Decision Support System that Land’s
End has tens of millions of names in its customer database. It
sells a wide range of women’s, men’s, and children’s clothing, as
well various household wares. To match the right customer with
the catalog, land’s end has identified 20 different specialty target
markets. Customers in these target markets receive catalogs of
merchandise that they are likely to buy, saving Lands’ End the
expense of sending catalogs of all products to all 20 million
customers. To predict customer demand, lands’ end needs to
continuously monitor buying trends. And to meet that demand,
lands’ end must accurately forecast sales levels.
DSS Components: example

To accomplish theses goals, it uses a Decision Support System which
performs three tasks:
 Data management: The Decision Support System stores customer and
product information. In addition to this organizational information,
Lands’ End also needs external information, such as demographic
information and industry and style trend information.
 Model management: The Decision Support System has to have models
to analyze the information. The models create new information that
decision makers need to plan product lines and inventory levels. For
example, Lands’ End uses a statistical model called regression analysis
to determine trends in customer buying patterns and forecasting
models to predict sales levels.
 User interface management: A user interface enables Lands’ End
decision makers to access information and to specify the models they
want to use to create the information they need.
DSS Components: example

How MIS support DSS????
 MIS support decision making in both structured and
unstructured problem environments.
 MIS support decision making at all levels of the
organization.
 MIS are intended to be woven into a fabric of the
organization.
 MIS support all aspects of decision making process.

Applications of Data Processing

MIS Vs. Data Processing
 Data are typically subjected to processing activities such as
calculating, comparing, sorting, classifying and summarizing.
 These activities organize, analyze and manipulate data, thus
converting them into information for end users.
 Data processing is handling row data in a systematic manner
to confirm to the data quality standards as determined by
the designer of the information system.

MIS Vs. Data Processing cont’d…
 The data generation processing involves the following steps:
 Data Acquisition
 Data Transformation
 Management of information

Data Acquisition
Data are facts expressed with the help of symbols. Such
as alphabets, digits, graphs, diagrams or in any other
form. Whatever may be the source of data, it may be
initially recorded & later verified for accuracy &
authenticity. This activity is known as data capture.

Data Transformation and Management of Information
 Data Transformation may be done by calculating, classifying,
summarizing or by rearranging.
 After transforming the data, the processed data may either
be communicated to end user, or may be stored for further
reference. In case of data communication to the end user,
the appropriate channel of communication is to be selected
& used.

Information Resource Management

MIS & IRM
Management Information Systems
1. Control of Data
2. Organization
3. Boundaries
Information Resources Management or Information
Infrastructure management
1. Information is an asset that should be managed
2. Requires process and systems knowledge,
communication, and technical expertise
3. Used by information workers who create and
process information

MIS & IRM
http://www.slideshare.net/achmatim/w-5-irm

Typical MIS Reporting
 Periodic Scheduled Reports
 Example: Monthly Financial Statements
 Exception Reports
 Example: List of items out of stock
 These reports contain information but they might not
directly help you determine the best decision to make.

More MIS Reports
 Demand Reports and Responses
 Available whenever a manager needs them, updated in
real-time.
 Push Reporting
 Information is pushed to a managers computer
 Example: Report is pushed every time a supplier is late
with a shipment
 Key-indicator report
 Summarizes the previous day’s critical activities
 Typically available at the beginning of each day
 MIS Reporting is all about giving managers feedback and
doesn’t necessarily help directly with decision making.

End User Computing
 In 1980’s several new roles for information systems
appeared.
 First the rapid development of microcomputer processing
power, application software packages, and now end
users could use their own computing resources to
support their job requirements instead of waiting for the
direct support of corporate information services
department.

THE EMERGENCE OF USER APPLICATION DEVELOPMENT
Why end-user computing?

End User Development
 IS professionals play a consulting role, while uses do their
own application development
 A staff of user consultants may be available
to help with analysis, design, and installation
 Other support
 Application package training
 Hardware and software advice
 Help gaining access to organization databases

Focus on IS Activities
 End user development should focus on the fundamental
activities of an information system
 Input
 Processing
 Output
 Storage
 Control

Doing End User Development
Application development capabilities built into
software packages make it easier for end users
to develop their own solutions

Encouraging End User Web Development
 Look for tools that make sense
 Some are more powerful or costly than needed
 Spur creativity
 Consider a competition among departments
 Set some limits
 Limit what parts of a web page or site can
be changed and who can do it
 Give managers responsibility
 Make them personally responsible for content

 Make users comfortable
 Training will make users more confident
 It can save the IT department the trouble
of fixing problems later on
 It can limit the need for continuous support
Encouraging End User Web Development

Effectiveness/Efficiency criteria of an MIS system
 MIS is designed primarily to make the management effective
to achieve the organization objectives efficiently.
 Therefore design of the organization management practices
and management philosophy along with environment
factors together will make MIS very effective.
 Negandhi Estafer, provided a good model for analyzing
management effectiveness in achieving the goal and
objectives. The mode as shown initial – emphasis on.
 Management Philosophy
 Environment Factors
 Management Practices

Effectiveness/Efficiency criteria of an MIS system

The Ethical Dimensions of IT
 As a prospective managerial end user and knowledge worker
in global society, we should also become aware of the ethical
responsibilities generated by the use of information
technology.
 For ex, what uses of IT might be considered improper,
irresponsible, or harmful to other individuals or to society?
 What is the proper use of organization’s information
resources?
 How can we protect our self from computer crime and other
risks of IT?

1. How can information technology support a company’s
business processes and decision making, and give it a
competitive advantage?
2. How does the use of the Internet, intranets, and extranets
by an e-business enterprise support their e-commerce
activities?
3. Why do big companies still fail in their use of information
technology? What should they be doing differently?
4. How can a manager demonstrate that he or she is a
responsible end user of information systems?
Important Questions

5. What are some of the toughest management challenges
in developing IT solutions to solve business problems and
meet new e-business opportunities?
6. Why are there so many conceptual classifications of
information systems? Why are they typically integrated
in information systems found in the real world?
7. In what major ways have the roles of information systems
applications in business expanded during the last 40
years? What is one major change you think will happen
in the next 10 years?
8. Can the business use of Internet technologies help a
company gain a competitive advantage?
Important Questions

SDLC is the process of understanding how an information
system (IS) can support business needs by designing a
system, building it, and delivering it to the users
SDLC Definition

 Determine if a new system is needed
 Three primary tasks:
1. Define the problem
 By observation and interview, determine what
information is needed by whom, when, where and
why
2. Suggest alternative solutions
3. Prepare a short report
System Investigation

The current system
1. how staff / customers interact with the current system i.e.
how tasks are carried out
2. how other systems interact with the current system
3. what is good about the current system
4. what causes problems with the current system
5. which parts of the system are critical to the business
The proposed new system
1. what the new system is expected to be able to do
2. how the new system is expected to do this
3. what people want from the new system
4. which working methods from the old system should be
incorporated into the new system

 Feasibility Studies typically involves cost/benefit analysis.
 If the cost and benefits can be quantified, they are called
tangible; if not they are called intangible.
 Tangible benefits are favorable results, and easy to
estimate
 Intangible benefits are harder to estimate, and difficult
to quantify.
Feasibility Study

System analysis
 It is an in depth study of end user information needs that
produces functional requirements that are used as the basis
for the design of a new information system.
 The system analysis traditionally involves a detailed study of
:
 The information needs of the organization and end users
like yourself.
 The activities, resources, and products of any present
information system.
 The information system capabilities required to meet our
information needs, and those of other end users.

System Design
 System analysis describes what a system should do to meet
the information needs of user.
 System design specifies how the system will accomplish this
objective.
 System design consists of design activities that produce
system specifications satisfying the functional requirements
developed in the system analysis stage.

System Coding & Testing
 The system design needs to be implemented to make it a
workable system.
 The coding of the design into computer language, i.e.,
programming language. This is also called the programming
phase in which the programmer converts the program
specifications into computer instructions, which we refer to
as programs
 It is an important stage where the defined procedures are
transformed into control specifications by the help of a
computer language
 The programs coordinate the data movements and control
the entire process in a system, so the right programming
language should be chosen

System Coding & Testing
 Before actually implementing the new system into
operations, a test run of the system is done removing all the
bugs, if any
 After codifying the whole programs of the system, a test plan
should be developed and run on a given set of test data
 The output of the test run should match the expected
results. Sometimes, system testing is considered as a part of
implementation process.
 Using the test data following test run are carried out:
– Program test
– System test

 In this stage physical system specifications are converted into a working
and reliable solution. This is where the system is developed. It is followed
by testing and then implementation.
 Implementation Phases:
– Coding: Includes implementation of the design specified in the design
document into executable programming language code. The output of
the coding phase is the source code for the software that acts as input
to the testing and maintenance phase.
– Integration and Testing: Includes detection of errors in the software.
The testing process starts with a test plan that recognizes test-related
activities, such as test case generation, testing criteria, and resource
allocation for testing. The code is tested and mapped against the
design document created in the design phase. The output of the
testing phase is a test report containing errors that occurred while
testing the application.
– Installation: In this stage the new system is installed

Key Deliverables:
 Fully Installed system
 Fully trained users
 User and Operational Documentation
System Implementation

System Maintenance
 Maintenance is necessary to eliminate errors in the system
during its working life and to tune the system to any
variations in its working environments.
 It must meet the scope of any future enhancement, future
functionality and any other added functional features to
cope up with the latest future needs.
 It has been seen that there are always some errors found in
the systems that must be noted and corrected.
 It also means the review of the system from time to time
 The review of the system is done for:
– knowing the full capabilities of the system
– knowing the required changes or the additional
requirements
– studying the performance.

SDLC example: Prototyping model
Prototyping is the rapid development and
testing of working models
1. An interactive, iterative process used during
the design phase
2. Makes development faster and easier, especially
when end user requirements are hard to define
3. Has enlarged the role of business stakeholders.

Deliverables of the SDLC
Begin building
new system
System converted
Users trained
Coded and
Tested System
Design Specifications
Preliminary
Investigation
System
Analysis
System
Design
System
Implementation
System
Development
System
Maintenance
Approved Feasibility
Study
Operational System
Documentation completed
Abort Project
Goto next phase
Goto Previous phaseProblem
Specifications

Assignment-2
1. Write a short note on
 Cloud Computing
 Green Computing
 Black box vs. White box testing
2. Difference between the following:
 Functional requirements and system specifications
 Verification and Validation
3. Suppose you have implemented a newly-developed salary
information system in your organization. Identify its activities
and categorize it in suitable category of MIS

Verification Validation
Evaluates the intermediary products to
check whether it meets the specific
requirements of the particular phase
Evaluates the final product to check
whether it meets the business needs.
Checks whether the product is built as
per the specified requirement and
design specification.
It determines whether the software is
fit for use and satisfy the business
need.
Checks “Are we building the product
right”?
Checks “Are we building the right
product”?
This is done without executing the
software
Is done with executing the software
Involves all the static testing
techniques
Includes all the dynamic testing
techniques.
Examples includes reviews, inspection
and walkthrough
Example includes all types of testing
like smoke, regression, functional,
systems and UAT
http://www.softwaretestingclass.com/difference-between-verification-and-validation/

Unit 1 & 2

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a Unit 1 & 2

Semelhante a Unit 1 & 2 (20)

Mais de Neelam Rawat

Mais de Neelam Rawat (9)

Último

Último (20)

Unit 1 & 2

Unit 1 &amp; 2

Recomendados

Recomendados

Mais conteúdo relacionado

Mais procurados

Mais procurados (20)

Semelhante a Unit 1 &amp; 2

Semelhante a Unit 1 &amp; 2 (20)

Mais de Neelam Rawat

Mais de Neelam Rawat (9)

Último

Último (20)

Unit 1 &amp; 2

Unit 1 & 2

Semelhante a Unit 1 & 2

Semelhante a Unit 1 & 2 (20)

Unit 1 & 2