MIS Unit 1 Management Information Systems

Unit-1
Management
Information
System (MIS)

Syllabus in unit- 1
IT and management opportunities and challenges
Strategic planning and models
Information management & IT Architecture
IT Architecture & infrastructure
Cloud computing and services
Virtualization and Virtual Machines

IT
In an organization, any issues or downtime in the IT
infrastructure can lead to a huge loss in productivity and in
turn affect the revenues. Global companies can lose precious
time and money due to inefficient management of the IT
infrastructure. With growing worldwide networks and
complex environments there is an increased threat to
security breaches.
IT infrastructure is a broad field which contains different
components such as network and security structure, storage
and servers, business applications, operating systems, as
well as databases. Some of the core components need
careful management, which is often challenging for the
organizations. It is the need of the hour to develop
responsive systems and bridge the gaps between business
and operations.

IT in management opportunities
Tomorrow’s successful organizations will be designed around the
building blocks of advanced computer and communications
technology. The success of these organizations will come from the
ability to couple to, and decouple from, the networks of knowledge
nodes. These networked organizations will link, on an as needed
basis, teams of empowered employees, consultants, suppliers, and
customers. These ad hoc teams will solve one-time problems,
provide personalized customer service, and then, as lubricant for
subsequent interactions, evaluate one another’s performance.
•Decision making in business
•Analysis
•Control of varibles in business
•Information sharing in business
•Problem solution in business
information system used for decision-making, and for the
coordination, control, analysis, and visualization of information in
an organization.-also known as MIS

IT & management
Changes in the hardware, software and telecommunication
technologies play a major role in the way our society is
evolving. During the last decade, the rate of change in
information technology has increased. Indeed it is clear that
we are now entering an era where explosive change in
telecommunication technology combined with ever
increasing computing power will lead to profound changes in
information systems that support our organizations. These
changes will affect the way our organizations function, will
lead to new business opportunities and will create a need
for

IT and management opportunities
Managing this responsibility within a company entails many
of the basic management functions, like budgetingManaging
this responsibility within a company entails many of the
basic management functions, like budgeting,
staffing, change management, and organizing and
controlling using IT softwares and networking
information system[1] used for decision-making, and for the
coordination, control, analysis, and visualization of
information in an organization.-also known as MIS

The Challenge of Information Systems: Key
Management Issues/Challenges
1)The information systems investment challenge: How can
organizations obtain business value from their information
systems? Earlier in this chapter we described the importance
of information systems as investments that produce value
for the firm.
2)The strategic business challenge: What complementary
assets are needed to use information technology effectively?
Despite heavy information technology investments, many
organizations are not realizing significant business value
from their systems, because they lack—or fail to
appreciate—the complementary assets required to make
their technology assets work.

3)The globalization challenge: How can firms understand
the business and system requirements of a global economic
environment? The rapid growth in international trade and
the emergence of a global economy call for information
systems that can support both producing and selling goods
in many different countries. In the past, each regional office
of a multinational corporation focused on solving its own
unique information problems.
4)The information technology infrastructure challenge: How
can organizations develop an information technology
infrastructure that can support their goals when business
conditions and technologies are changing so rapidly? Many
companies are saddled with expensive and unwieldy
information technology platforms that cannot adapt to
innovation and change.

5) Ethics and security: The responsibility and control
challenge: How can organizations ensure that their
information systems are used in an ethically and socially
responsible manner? How can we design information
systems that people can control and understand? Although
information systems have provided enormous benefits and
efficiencies, they have also created new ethical and social
problems and challenges.

•strategic planning for management information systems. Specifically,
those variables of the strategic plan which impact on the success or
failure of MIS are identified, and propositions are formulated relating
states of the variables to system conditions.
•The variables concerned are the system development strategy, the
purpose of MIS, the priority scheme, functions assigned the system,
goals, definitions of requirements and documentation of the strategic
plan.
•Two factors predominate in determining the appropriateness of
strategic plans for MIS-explicitness (the degree to which the process
is conscious, formal and documented) and situational fit (the degree to
which the MIS is compatible with the specific organization and its
members).
•It is concluded that there is no one optimal strategic plan for MIS.
Each organization must develop that strategy which best fits its
particular situation

Strategic planning and models
1. Balanced Scorecard
2. Strategy Map
3. SWOT Analysis
4. PEST Model
5. Gap Planning
6.Blue Ocean Strategy
7. Porter's Five Forces
8. VRIO Framework
9. Baldrige Framework
10.OKRs (Objectives and Key Results)
11. Hoshin Planning
12. Issue-Based Strategic Planning
13. Goal-Based Strategic Planning
14. Alignment Strategic Planning Model
15. Organic Models of Strategic Planning
16. Real-Time Strategic Planning

MIS is a system that retrieves, transforms, and stores data
from multiple sources, related or not. Generally, MIS is
considered all of the hardware, software, databases, people,
organizations, and even policies involved with data
interoperability. This makes it available and usable by other
contributing entities (labs, schools, agencies, organizations,
etc). Each sector has its own context in which it exists and
will thus have unique requirements for MIS. For example, a
laboratory management information system (LMIS) will
have different data and security requirements than a
financial institution information system (FMIS) or a school
district’s information system (EMIS). For this post, I’ll be
focusing on the database layer.

Interoperability is key to designing successful MIS. Even
though this is not the focus of this post, understanding how
interoperability works is helpful for understanding the data base
layer. So what is interoperability? It is the tools, software, or
algorithms that allow data to be accessed, translated, and used
in conjunction with other data or external data visualization
tools. To achieve this, MIS will often involve the extensive use
of application programming interfaces, or APIs.

Information System Architecture
An information system architecture is a formal definition of
the business processes and rules, systems structure,
technical framework, and product technologies for a
business or organizational information system. An
information system architecture usually consists of four
layers: business process architecture, systems architecture,
technical architecture, and product delivery architecture.

IT architecture of an information system encompasses the
hardware and software used to deliver the solution to the
final consumer of services. The architecture is a description
of the design and contents of a computerized system. If
documented, the architecture may include information such
as a detailed inventory of current hardware, software and
networking capabilities; a description of long-range plans
and priorities for future purchases, and a plan for upgrading
and/or replacing dated equipment and software. The
architecture should document: What data is stored?, How
does the system function?, Where are components located?,
When do activities and events occur in the system?, and
Why does the system exist?

Information system infrastructure and architecture
A well-designed information system rests on a coherentA well-
designed information system rests on a coherent foundation that
supports responsive change—and, thus, the organization’s agility—as
new business or administrative initiativesA well-designed
information system rests on a coherent foundation that supports
responsive change—and, thus, the organization’s agility—as new
business or administrative initiatives arise. Known as the information
system infrastructureA well-designed information system rests on
a coherent foundation that supports responsive change—and, thus, the
organization’s agility—as business or
new
administrative initiatives arise. Known as the information
system infrastructure, the foundation consists of
core telecommunications networks, databases and data
warehouses, software and
warehouses, software, hardware and
data
data
warehouses, software, hardware, and procedures managed by various
specialists. With business globalization, an organization’s

Establishing and maintaining such a complex infrastructure requires
extensive planning and consistent implementation to handle strategic
corporate initiatives,
With business globalization, an organization’s infrastructure often
crosses many national boundaries. Establishing and maintaining such
a complex infrastructure requires extensive planning and consistent
implementation to handle strategic corporate initiatives,
transformations, mergers, and acquisitions. Information system
infrastructure should be established in order to create meaningful
options for future corporate development.
When organized into a coherent whole, the specific information
systems that support operations, management, and knowledge
work constitute the system architecture of an organization. Clearly,
an organization’s long-term general strategic plans must be
considered when designing an information system infrastructure and
architecture.

Organization of information services
Information services of an organization are delivered by an
outside firm, by an internal unit, or by a combination of the
two. Outsourcing of information services helps with such
objectives as cost savings, access to superior personnel, and
focusing on core competencies.
An information services unit is typically in charge of an
organization’s information systems. When the systems are
largely outsourced, this unit is of a limited size and
concentrates on aligning the systems with the corporate
competitive strategy and on supervising the outside
company’s services. When information services are provided
in-house and centralized, this unit is responsible for
planning, acquiring, operating, and maintaining information
systems for the entire organization. In decentralized
structures, however, the central unit is responsible only for
planning and maintaining the infrastructure, while business
and administrative specialists supervise systems and
services for their own units. A variety of intermediate
organizational forms are possible.

Information Systems Security And Control
With the opening of information systems to the
global Internet and with their thorough infusion into the
operation and management of business and government
organizations and into the infrastructure of daily life across
the world, information security issues have moved to the
forefront of concerns about global well-being.

Information systems securityInformation systems security is
responsible for the integrity and safety of system resources and
activities. Most organizations in developed countries are dependent on
the secure operation of their information systems. In fact, the very
fabric of societies often depends on this security. Multiple
infrastructural grids—including power, water supplyInformation
systems security is responsible for the integrity and safety of system
resources and activities. Most organizations in developed countries
are dependent on the secure operation of their information systems. In
fact, the very fabric of societies often depends on this security.
Multiple infrastructural grids—including power, water supply, and
health care—rely on it. Information systems are at the heart of
intensive care units and air traffic controlInformation
systems security is responsible for the integrity and safety of system
resources and activities. Most organizations in developed countries
are dependent on the secure operation of their information systems. In
fact, the very fabric of societies often depends on this security.
Multiple infrastructural grids—including power, water supply, and

information system security measures:-The first step in
creating a secure information system is to identify threats.
Once potential problems are known, the second step,
establishing controls, can be taken. Finally, the third step
consists of audits to discover any breach of security.

IT Infrastructure
IT infrastructure refers to the composite hardware, software,
network resources and services required for the existence,
operation and management of an enterprise IT environment.
IT infrastructure allows an organization to deliver IT
solutions and services to its employees, partners and/or
customers and is usually internal to an organization and
deployed within owned facilities.

IT Infrastructure
T infrastructure consists of all components that somehow
play a role in overall IT and IT-enabled operations. It can be
used for internal business operations or developing
customer IT or business solutions.
Typically, a standard IT infrastructure consists of the
following components:
Hardware
This is the “physical” part of an IT infrastructure, and
comprises all the elements necessary to support the basic
functioning of the machines and devices constituting the
infrastructure itself.
Servers, computers, storage and data centers, switches,
hubs and routers, as well as all other equipment such as the
power, cooling, cabling and dedicated rooms.

IT Infrastructure
Software
It refers to all the applications used by the enterprise both
for internal purposes and to provide its services to
customers. Software includes web servers, Enterprise
resource planning (ERP), customer relationship management
(CRM), productivity applications and the operating system
(OS).
The OS is the most important software component and is
responsible for managing the hardware itself and connect
the physical resources to the network infrastructure.

IT Infrastructure
Network
Although is not strictly necessary for an IT infrastructure to
function, the network is essential to establish internal and
external communication of all elements and devices.
The network part includes all the hardware and software
elements necessary to ensure network enablement, internet
connectivity, firewall and security. It ensures that personnel
get access to stored and transferred data only from strictly
controlled access points to reduce the risk of data theft or
damage.

IT Infrastructure
Meatware
Since they contribute to constituting the enterprise
environment and guarantee its functions, associated
personnel and processes such as ITOps or DevOps are also
part of an IT infrastructure.
Human users, such as network administrators (NA),
developers, designers and end users with access to any IT
appliance or service are also part of an IT infrastructure,
specifically with the advent of user-centric IT service
development.

IT Infrastructure
Traditional Vs. Cloud Infrastructures
All the components mentioned above that constitute a traditional
infrastructure are usually owned by the enterprise itself and
managed within their own facilities.
Needless to say, the larger the IT infrastructure, the more space,
power, personnel, and money will be needed to run it. Today, part
of this infrastructure can be virtualized and rented from third-party
services to cut the costs.
Software as a Service (SaaS), Platform as a Service (PaaS), and
Infrastructure as a Service (IaaS) are all relatively new options
that allow businesses to rent software, infrastructure, services and
human resources from external vendors who will deliver them
using the internet. All the components rented are hosted and
managed in cloud servers that employ their own IT infrastructures.
Since all these resources are built on virtualization technology,
they can easily be scaled up or down as the needs of the business
employing them changes.

IT Architecture
IT architecture is a series of principles, guidelines or rules
used by an enterprise to direct the process of acquiring,
building, modifying and interfacing IT resources throughout
the enterprise.
Information technology architecture is the process of
development of methodical information
technology specifications, models and guidelines, using a
variety of Information Technology notations, for
example UML specifications, models and guidelines, using a
variety of Information Technology notations, for
example UML, within a coherent Information
Technology architecture framework specifications, models
and guidelines, using a variety of Information Technology
notations, for example UML, within a coherent Information
Technology architecture framework, following formal and
informal Information Technology solution, enterprise,

IT Architecture
Information Technology (I.T) Architecture can also be called
a high-level map or plan of the information assets in an
organization, including the physical design of the building
that holds the hardware.

Types of IT Architecture:-12 types

IT Architecture:-types
1) Enterprise Architecture
The top level structure of information technology. Defines
foundational principles, platforms, models and standards to
be used by the entire organization
2) IT Governance
Oversight of IT strategy and change. Aligns change to
business strategy and enterprise architecture.
3) IT Risk Management
The process of identifying and managing IT riskThe process
of identifying and managing IT risk. This requires
architectural analysis and solutions for treating risk.

4) Information Security Architecture
Analysis of information security at the structural level.
Outputs include principles, models, controls, policies,
processes, procedures and standards to address information
security.
5) Technology Architecture
The design of technology infrastructure such as networks
and computing facilities.
6) Business Architecture
Analysis and design of business structuresAnalysis and
design of business structures. For example, an analysis of
current business capabilitiesAnalysis and design of business
structures. For example, an analysis of current business
capabilities, gaps between capabilities and strategy and a

7) Systems Architecture
Designing systems that automate work.
8) Applications Architecture
Designing applications that are used by people.
9) Information Architecture
Designing information structures for people to use.
10) Data Architecture
Designing data models, structures and integrations for
machine use.

11) Solutions Architecture
A generic term for architecture at the implementation level
including systemsA generic term for architecture at the
implementation level including systems, applicationsA
generic term for architecture at the implementation level
including systems, applications, dataA generic term for
architecture at the implementation level
including systems, applications, data, information
security and technology architecture.
12) Specialists
It is common to address architecture in terms of specialized
domains or technologies. For example, a cloud architect.

IT Infrastructure Vs. IT Architecture
1. IT Infrastructure is a part of IT Architecture
2. Today, IT can mean any use of computers to manipulate, archive,
send, or receive data. However, the term “IT” is usually used in
context with business technology, not personal.
3. IT architecture is like the “road map” to a business’s IT
aspects—i.e., what needs to be done to satisfy the corporation’s
IT needs. All in all, it’s like a design or a plan.
4. IT infrastructure, on the other hand, is the assets themselves
that are used. For example, the following are some examples of
assets that can work in IT infrastructure:- Hard disk drives,
Network switches, Routers, Fiber optic cables, Servers,
Computers
5. IT Architecture:- Design of IT system

Cloud computing and services
s
What Is Cloud Computing?
Cloud computing is the delivery of different services through
the Internet. These resources include tools and applications
like data storage, servers, databases, networking, and
software.
Rather than keeping files on a proprietary hard drive or local
storage device, cloud-based storage makes it possible to
save them to a remote database. As long as an electronic
device has access to the web, it has access to the data and
the software programs to run it.

Cloud computing
Cloud computing is a popular option for people and
businesses for a number of reasons including cost savings,
increased productivity, speed and efficiency, performance,
and security.
Cloud computing is named as such because the information
being accessed is found remotely in the cloud or a virtual
space. Companies that provide cloud services enable users
to store files and applications on remote servers and then
access all the data via the Internet. This means the user is
not required to be in a specific place to gain access to it,
allowing the user to work remotely. Cloud computing can be
both public and private. Public cloud services provide their
services over the Internet for a fee. Private cloud services,
on the other hand, only provide services to a certain number
of people. These services are a system of networks that
supply hosted services.

Virtualization
What is Virtualization?
Virtualization is the process of creating a software-based, or
virtual, representation of something, such as virtual
applications, servers, storage and networks. It is the single
most effective way to reduce IT expenses while boosting
efficiency and agility for all size businesses.

Virtualization
Benefits of Virtualization
Virtualization can increase IT agility, flexibility and scalability
while creating significant cost savings. Greater workload
mobility, increased performance and availability of
resources, automated operations – they’re all benefits of
virtualization that make IT simpler to manage and less
costly to own and operate.

Virtualization:-Additional benefits
include:
1. Reduced capital and operating costs.
2. Minimized or eliminated downtime.
3. Increased IT productivity, efficiency, agility and
responsiveness.
4. Faster provisioning of applications and resources.
5. Greater business continuity and disaster recovery.
6. Simplified data center management.
7. Availability of a true Software-Defined Data Center..

Virtualization
HOW VIRTUALIZATION WORKS
Virtualization
Due to the limitations of servers, many IT organizations
must deploy multiple servers, each operating at a fraction of
their capacity, to keep pace with today’s high storage and
processing demands. The result: huge inefficiencies and
excessive operating costs.
Enter virtualization. Virtualization relies on software to
simulate hardware functionality and create a virtual
computer system. This enables IT organizations to run more
than one virtual system – and multiple operating systems
and applications – on a single server. The resulting benefits
include economies of scale and greater efficiency.

Virtual Machines:- VMs on a single computer enables several
operating systems and applications to run on just one physical
server, or “host.”
Virtual Machines Explained
A virtual computer system is known as a “virtual machine”
(VM): a tightly isolated software container with an operating
system and application inside. Each self-contained VM is
completely independent. Putting multiple VMs on a single
computer enables several operating systems and
applications to run on just one physical server, or “host.”
A thin layer of software called a “hypervisorA thin layer of
software called a “hypervisor” decouples the virtual
machines from the host and dynamically allocates
computing resources to each virtual machine as needed.

Virtual Machines
Key Properties of Virtual Machines
VMs have the following characteristics, which offer several
benefits.
Partitioning
Run multiple operating systems on one physical machine.
Divide system resources between virtual machines.
Isolation
Provide fault and security isolation at the hardware level.
Preserve performance with advanced resource controls.
Encapsulation
Save the entire state of a virtual machine to files.
Move and copy virtual machines as easily as moving and copying
files.
Hardware Independence
Provision or migrate any virtual machine to any physical server.

Types of Virtualization
1) Server Virtualization:- Server virtualization enables multiple
operating systems to run on a single physical server as highly
efficient virtual machines
2) Network Virtualization
By completely reproducing a physical network, network
virtualizationBy completely reproducing a physical
network, network virtualization allows applications to run on a
virtual network as if they were running on a physical network
—but with greater operational benefits and all the hardware
independencies of virtualization. (Network
virtualization presents logical networking devices and services
—logical ports, switches, routers, firewalls, load balancers,
VPNs and more — to connected workloads.)
3) Desktop Virtualization
Deploying desktops as a managed service enables IT organizations
to respond faster to changing workplace needs and emerging
opportunities. Virtualized desktops and applications can also be
quickly and easily delivered to branch offices, outsourced and
offshore employees, and mobile workers using iPad and

Virtualization vs. Cloud Computing
Virtualization vs. Cloud Computing
Although equally buzz-worthy technologies, virtualization
and cloud computing are not interchangeable. Virtualization
is software that makes computing environments
independent of physical infrastructure, while cloud
computing is a service that delivers shared computing
resources (software and/or data) on demand via the
Internet. As complementary solutions, organizations can
begin by virtualizing their servers and then moving to cloud
computing for even greater agility and self-service.

Information in raw or unorganized form(such as alphabets, numbers, or
symbols) that refer to, or represent, conditions , ideas, or objects. Data
Most data is being
is limitless and present everywhere in the universe.
converted into a digital format
▪Driven by user demand
▪ Facilitated by
□ Increase in data processing capabilities
□ Lower cost and increased speed of storage
□ Affordable and faster Network
Who creates data?
□Individuals
□Businesses
01010101010
10101011010
00010101011
01010101010
10101010101
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Video
Photo
Book
Letter Digital Data

Data can be categorized as either structured or unstructured
data
□Structured
□ Data Bases
□ U
□
n
s
S
t
p
r
r
u
e
a
c
d
t
u
S
r
h
e
e
d
e
t
s
□ Forms
□ Images
□ Audio
□ Movies
Over 80% of Information
is unstructured
Contracts
Images
Manuals
X-Rays
Instant Messages
Forms
E-Mail Attachments
Check
Documents
PDFs
Web Pages
Invoices
Audio Video
Rich Media
Structured (20%)
Unstructured (80%)

Organize form of data in known as information
Definitions:
❖data that have been processed so that they are meaningful;
❖data that have been processed for a purpose;
❖data that have been interpreted and understood by the
recipient.

According to Theo Heimann, management has three different meanings,
□Management as a Noun : refers to a Group of Managers.
□Management as a Process : refers to the Functions of Management i.e.
Planning, Organizing, Directing, Controlling, etc.
□Management as a Discipline : refers to the Subject of Management.
Managementis an individual or a group of individuals accept
resptohnastibilities to run an organisation. They Plan, Organize, Direct and
Control all the essential activities of the organization. Management does not
do the work themselves. They motivate others to do the work and co-ordinate
(i.e. bring together) all the work for achieving the objectives of the
organization.
Management brings together all Six Ms i.e. Men and Women, Money,
Machines, Materials, Methods and Markets. They use these resources for
achieving the objectives of the organization such as maximum sales and
profits, business expansion, etc.

Throughout the 1970s this was largely limited to files, file maintenance,
and the Life cycle management of paper-based files, other media and
records.
With the proliferation of information technology starting in the 1970s, the
job of information management took on a new light, and also began to
include the field of data maintenance. No longer was information
management a simple job that could be performed by almost anyone.
An understanding of the technology involved, and the theory behind it
became necessary.
As information storage shifted to electronic means, this became more
and more difficult. By the late 1990s when information was regularly
disseminated across computer networks and by other electronic means,
network managers, in a sense, became information managers. Those
individuals found themselves tasked with increasingly complex tasks,
hardware and software. With the latest tools available, information
management has become a powerful resource and a large expense for
many organizations.

Application of Management techniques to collect information, communicate
it within and outside the organization, and process it to enable managers to
make quicker and better decisions.
According to Wikipedia, Information management (IM) is the collection and
management of information from one or more sources and the distribution
of that information to one or more audiences. This sometimes involves
those who have a stake in, or a right to that information. Management
means the organization of and control over the structure, processing and
delivery of information.

□ Management of information resources.
□ Design of information technology components.
□ Analysis of information processing procedures.
□ Deriving knowledge from the information corpus.
In business or management studies it has similar connotations to
technology management, with an emphasis on the
relationship of information technology to business
performance and competitiveness (Synott 1987).
cor·pus (kôr p s)
A large collection of writings of a specific kind or on a specific
subject.

―Digital universe – The Information
▪ 21st Century E
isxip
nlfo
os
ri
m
on
aǁ
tion era
▪ Information is being created at ever increasing rate
▪ Information has become critical for success
We live in an on-command, on-demand world
Example: Social networking sites, e-mails, video and
photo
sharing website, online shopping, search engines etc
Information management is a big challenge
Organization seek to Store Protect Optimize

Managing information is important to an organization because it allows
for increased knowledge, decreased inefficiency, and better creation
and implementation of action plans to address areas of opportunity.
Without successful management of information, it is almost guaranteed
that an organization will fail. Reasons are describe in three categories;
1)Managing your information saves you money
2)Managing your information makes you money
3)Managing your information keeps you out of trouble

IM
People
Culture
Process
Content
Technology

Data Records
Tex
t
Multimedia
IR

1) Supply work, business and consumption processes with information —
This is the basic goal: work cannot be done without required information.
2) Improve and speed up business, work and consumption processes
through information use and efficient information processing —
Information is not only one of the inputs to the work process. By
improving information supply and its processing, the whole process
usually can be made more efficient.
3) Create and maintain competitive advantage through new, IT-based
work and business processes — Often, information technologies allow
reorganization of work in completely new ways, and creation of totally
new businesses.

4) Efficient use of organization’s information assets — While previous
goals come from activity (process), this goal statement invites to think
about organization’s information not as some side-product of activity,
but as the central resource. Information, not activity may be the „real
thingǁ.
5)Reduce unnecessary complexity of information processing
systems; protect against information overload.

In order to frame an effective information management
policy, businesses need to consider the following key
challenges:
■
■Exploding digital universe:
The rate of information growth is increasing exponentially. Duplication of
data to ensure high availability and repurposing has also contributed to
the increase of information growth.
■
■Increasing dependency on information:
The strategic use of information plays an important role in determining
the success of a business and provides competitive advantages in the
marketplace.
■
■Changing value of information:
Information that is valuable today may become less important tomorrow.
The value of information often changes
over time

□ Files
Most sizeable companies have huge stores of electronic files scattered
throughout the enterprise (a legacy of desktop networking). Letters,
memos, reports, spreadsheets, database files, presentations, etc.
□ Databases
Companies usually maintain a number of
different hardware and software platforms.
□ Email
databases on several
Most employees communicate with email and
business
enterprise’s internal and external
done via email (and attachments).
□ Instant Messaging (IM)
communication
much of an
is
This is becoming the way employees talk to one another in
real-time.

□ Electronic Publishing
Most companies produce printed material such as catalogs, brochures,
newsletters,
information
documents,
flyers, contact sheets, product specification sheets,
business reports, etc. Also, an increasing amount of
exists only in electronic format (e.g. Web pages, PDF
Intranets).

First:
Its origins in a variety of fields that have had to do, traditionally, with the
acquisition, organization, maintenance and use of documents: archives
and records management, and librarianship and information science
(especially in special librarianship and information work).
Second:
The development of information technology, and its growing application
to all aspects of information management has been a strong formative
influence. The costs of computer-based systems draw direct attention to
the issues of the value of information and cost-benefit relationships in
the development of information systems and services.

Finally:
The wide application of information ideas, developed in the business
schools, widely accepted in business, and given prominence in the
business press and in the media generally, and applied increasingly in
public-sector organizations, has resulted in the acceptance of such
concepts as strategic planning, cost-benefit analysis, resource
management and marketing.

All aspects of information management must be grounded in a
consideration of the information requirements (or information
needs) of customers or clients of the information systems and
services. The study of information needs has occupied
information science for almost fifty years, but other disciplines,
notably computer science, have also had an interest (Wilson
1994).

AUTOMATED
FLEXIBLE
Classify
data /
applications
based on
organization’
s
rules
Implement
policies with
information
management
tools
Integrated
management
of storage
environment
Organize
storage
resources to
align with data
classes

Some of the tools of information management are those derived
from the fields that have contributed to its development; for
example, classification and information retrieval from
librarianship and information science; database design and
development from computer science; the document life cycle
from records management; communication audits from
organizational psychology; and cost-benefit analysis and value
assessment from business management.

Information Audit:
The idea of the information audit is derived from financial audits in
accounting, which, as Ellis et al. (1993) note, are generally 'compliance'
audits, undertaken to ensure that the organization is adhering to proper
fiscal and legal standards in its financial management. Information
audits take more the character of 'advisory' audits, which are 'more
concerned with informing users of existing systems and practices and
with assessing the appropriateness of existing systems, standards and
practices to the organization's goal or objectives'.

Information Mapping:
A method of bringing together current learning research and
instructional technology into a comprehensive materials development
and presentation technology to improve technical communication. A
system of principles and procedures for identifying categorizing
interrelating and sequencing, and presenting graphically information
required for learning and reference.
More specifically, Information Mapping is a method for written
communication as it is currently presented in textbooks, programmed-
instruction books, technical manuals, and various kinds of paper
documents for complex projects. Information Mapping improves current
methods for doing the learning and reference work itself, preparing
learning/reference materials, and maintaining/updating such
learning/reference materials.

Communication audit:
The communication audit predates information management as a tool
for the investigation of communication in the field of organization theory.
The role of communications audits was explored by Booth (1986, 1988)
and, more recently, by Potter (1990), who categorized communication
audits as being used to measure the effectiveness of introducing IT in
an organization, interpersonal communications, communication
between management and employees, the effectiveness of
organizational communications, or public relations activity.
Clearly, given the increasing interest in various aspects of quality
management and quality assurance, the communications audit has a
significant role to play in ensuring that communication between
information services and their customers is fully effective.

Information policy:
Information policy may be determined for any level of organization, from
the international community to the individual organization. Information
policy has become a subject for debate at the international level in
Europe as a result of the attempts by the European Commission to aid
the development of the European
information industry. Information policies relate to:
(i)data
(ii)information processing equipment and software
(iii)information systems and services and
(iv)staff roles and responsibilities.
Formal development of information policies recognizes information as a
strategic organizational resource' (Lytle 1988). Thus an aim of policy
may be to provide access to the organization's data resources for all
executive and managerial level personnel directly to the workstation.
Another aim may be to provide customized searching of external,
online information, resources for planning and marketing personnel.

Information Strategy:
Information strategy deals with how these policy aims are to be
accomplished.
An information policy may have a number of different dimensions and
each dimension may have a variety of alternative strategies for its
realization. Consequently, the strategic planning necessary to define
policy and relate strategies to the financial, personnel and other
resources of the organization is no trivial task.

□ Improved utilization
□ Simplified management
□ Simplified backup and recovery
□ Maintaining compliance
□ Lower Total Cost of Ownership

□ Studying Information Management trough different
angles, finally it is concluded that in this modern era of
information explosion Information Management is
necessary. User of the modern world need more and
more information within no time, which is able only if
Information are managed.
□ Information Management is the only way to provide
□ Right information
□ To the right person
□ At the right time

Contents
□ Data, Information and System
□
□
□
□
Information – a critical resource Data and
Information
Types and Characteristics of useful Information
System
□ Information System (IS)
Components of an IS
Types of IS
□
□
□ Interrelationship among systems
□ Management Information System (MIS)
□
□
□
□
Broader Definitions and concepts
Output of MIS
Functional View Impact of MIS
□ MIS Planning and Development
□
□
□
□
□
MIS Development outlook Pointers for MIS Design
MIS Planning
Software Development Life Cycle
Software Development Methodologies: Approaches

Information is critical
The information we have is
not what we want,
The information we want
is not the information we
need,
The information we need is
not available.

Information is a Resource
□
It is scarce
□
□
□
It has a cost
It has alternative uses
There is an opportunity cost
factor involved if one does not
process information

Why need Information?
To ensure effective and
efficient decision - leading
to prosperity of the
Organization.

Data and Information
Data vs. Information
□ Data
□
□
A “given,” or fact; a number, a statement, or an image
Represents something (quantities, actions and objects) in the
real world
□ The raw materials in the production of
Infoirnmfoartmioantion
□
□
□
Data that have meaning within a context
Data that has been processed into a form that is meaningful to
the recipient and is of real or perceived value in the current or in
the prospective actions or decisions of the recipient.
Data Manipulation
Example: customer survey
□ Reading through data collected from a customer survey with
questions in various categories would be time-consuming and not
□ very helpful.
When manipulated, the surveys may provide useful information.

Types and classification of
Informatio
n
Information classification
□Action v/s no-action
□Recurring v/s non recurring
□Internal v/s external
□Planning Information: standards, norms, specifications
□Control information – reporting the status of an activity thru feedback mechanism
□Knowledge information – library reports, research studies

Characteristics of Useful Information

Information Presentation (An Art)
Data may be collected in the best possible way and processed
analytically, however, if not presented properly, it may
fail to communicate any value to recipient.
Communication of Information is affected by the methods of
transmission, the manner of information handling and
the limitations & constraints of recipients.
The methods used to improve communication are:
a) Summarization: Too much information causes noise and
distortion i.e confusion, misunderstanding and missing of
purpose. Summarization suppresses the noise and
distortion.
b) Message routing: The principal here is to distribute
information to all those who are accountable for the
subsequent actions in any manner. This is achieved by
sending the copies of the reports or documents to all the
concerned people or users.

System
System: A set of components that work together to
achieve a common goal. Computer-based Information
Systems take data as raw material, process it, and
produce information as output.

Contents
□
□
□
□
Information
System
Components of an IS
Types of IS
□
□
Output of MIS
Functional View
□
□
□
□
Impact of MIS
□
□
□
□
□
MIS Planning

Components of an Information
System

Corporate
Headquarters
Finance Production
Marketing
and Sales
Corporate
Databases
Mainframe
Divisional
Databases
Local Area Network:
PCs with Local Databases
Salesforce
Notebooks
Regional
Office
Work-
stations Plant Minicomputers
Telecommunications
Link
Divisional
Minicomputers
with Divisional
Databases
A Networked Information
System: Three-Tier Architecture

Types of Information Systems
□ Operational-level systems support operational managers
by keeping track of the elementary activities and
transactions of the organization, such as sales, receipts,
cash deposits, payroll, credit decisions, and the flow of
materials in a factory.
Management-level systems serve the monitoring,
controlling, decision-making, and administrative activities
of middle managers. The principal question addressed by
such systems is this: Are things working well?
Strategic-level systems help senior management tackle
and address strategic issues and long-term trends, both in
the firm and in the external environment.
□
□

Transaction Processing System
Transaction Processing Systems (TPS):
□
□
Basic business systems that serve the operational level
A computerized system that performs and records the daily
routine transactions necessary to the conduct of the
business

Management Information System
□ Serve middle management
□ Structured and semi-structured decisions
□ Provide reports on firm’s current performance, based
on data from TPS
□ Past and Present Data
□ Internal Orientation
□ Provide answers to routine questions with predefined
procedure for answering them
□ Typically have little analytic capability

Decision Support System
□ Serve middle management
□ Support non-routine decision making
□
E.g. What is impact on production schedule if
December sales doubled?
□ Often use external information as well as
information from TPS and MIS
□ Processing is interactive in nature
□ Output in form of Decision analysis
□ Example: Contract Cost Analysis

ExecutiveSupport Systems
□
□
Support senior management – Strategic Level
Address non-routine decisions requiring judgment,
evaluation, and insight
Incorporate data about external events (e.g. new tax laws
or competitors) as well as summarized information from
internal MIS and DSS
User "seductive" interfaces; Users' time is a premium
What if capabilities abound
Input in form of Aggregate data
Processing is interactive and output in form of projections
E□
xa
E
m
SS
pl
te
ha
st provides minute-to-minute view of firm’s financial
performance as measured by working capital, accounts
receivable, accounts payable, cash flow, and inventory.
□
□
□
□
□
□
5-year operating plan
□

Interrelationship Among Systems
The various types of systems in the organization have interdependencies. TPS are major producers of information
that is required by many other systems in the firm, which, in turn, produce information for other systems. These
different types of systems are loosely coupled in most business firms, but increasingly firms are using new
technologies to integrate information that resides in many different systems.

Contents
□
□
□
□
Information
System
Components of an IS
Types of IS
□
□
□ Management Information System
IB
Sr
)
oader Definitions and concepts
Output of MIS
Functional View
(
M
□
□
□
□
Impact of MIS
□
□
□
□
□
MIS Planning

MIS – Definition and Concept
□
□
□
□
□
A management information system (MIS) is system of
collecting, processing, storing, disseminating and utilizing
data in the form of information needed to carry out the
functions of management.
Today, the term is used broadly in a number of contexts and
i
n
□
c
l
D
u
e
d
c
e
i
s
s
i
o
(
n
b
u
s
u
tp
i
s
p
o
n
r
o
tt
s
y
l
i
s
m
t
e
i
m
t
e
s
d
,to):
Resource and people management applications,
Enterprise Resource Planning (ERP),
Supply Chain Management (SCM), Customer
Relationship Management (CRM),
project management and database retrieval applications.

Difference between management information
systems and information systems
The terms MIS and IS are often confused. IS may include systems
that are not intended for decision making. In effect, MIS
must not only indicate how things are going, but why they are
not going as well as planned where that is the case
□ Information system applied to management context is called MIS.
IS can be applied to any area of business while MIS is applicable
for managerial decision-making.
IS means use of hardware and software for any business. MIS can
be used in any form - even manual reports, which aid decision-
making
MIS is used to analyze other information systems applied in
operational activities in the organization.
MIS summarize and report on the company’s basic operations.
The basic transaction data from TPS are compressed and reported
□
□
□

Outputs of MIS
□ Scheduled reports
□ Produced periodically, or on schedule (daily,
weekly, monthly)
□ Key Indicator Report
□ Summarizes the previous day’s critical
activities
□ Demand Report
□ Gives certain report at manager's request
□ Exception Report
□ Automatically produced when a situation is
unusual or requires management action

How MIS Obtain Data from TPS:
How MIS Obtain their Data from the Organization’s TPS:
In the system illustrated by this diagram, three TPS supply
summarized transaction data to the MIS reporting system at the
end of the time period. Managers gain access to the
organizational data through the MIS, which provides them with
the appropriatereports.

Sample MIS Report
This report, showing summarized annual sales data, was produced by the MIS in previous slide

Impact of MIS
□ Management of marketing, finance, production and personnel becomes
more efficient, the tracking and monitoring becomes easy
Helps in understanding of business itself, MIS begins with definition of
data and its attributes – uses data dictionary and brings common
understanding of terms and terminology in organization
MIS calls for systemization of business operations – leads to streamlining
of operations, brings discipline in its operations everyone is required to
follow
Since the goals of MIS are driven from organization goals, it helps
indirectly pulling everyone in organization towards corporate goals by
providing relevant information to the people in organization
MIS helps to monitor results and performances
MIS provides alerts, in some cases daily, to managers at each level of the
organization, on all deviations between results and pre-established
objectives and budgets.
IT enabled MIS is partly responsible for the PARADIGM shift (A change, a
new model,) from support to contributing to an organizations profitability
□
□
□
□
□
□

Contents
□
□
□
□
Information
System
Components of an IS
Types of IS
□
□
□
□
□
□
Output of MIS
Functional View Impact of MIS
□
□
□
□
□
MIS Planning and
D
□
evM
eI
lo
Sp
D
m
ev
ee
n
lo
tpment outlook Pointers for MIS design
MIS Planning

MIS Development Outlook
Corporate
Strategy
Ethics/
Privac
y
MIS
Strategy
and Plan
Internal
Systems
Development
Outsourced
Systems
Development
Implementation
Internal
Systems
Operations
Outsourced
Systems
Operations
Infrastructure
Security
Corporate
Strategy
Ethics/
Privacy

Pointers for MIS Design
□ To take care for data problems (bias and error) by high level
validations, checking and controlling the procedures.
Due regard to the communication theory of transmitting the information
from the source to the destination.
□
□
□
Handling of noise and distortion by summarization and message routing
Ensuring that no information is suppressed or over emphasized
□ To provide specific attention to quality parameters – Utility,
Satisfaction, Error and Bias
□ By controlling inputs to the MIS on the factors of impartiality, validity, reliability,
consistency and age
□ Should make a distinction between the different kinds of information for
the purpose of communication. Say an action, a decision oriented
information should be distinguished from a non
action/knowledge-oriented information.
To recognize some aspects of human capabilities as a decision maker.
Capabilities differ from manager to manager and the designer should
skillfully deal with them.
It should meet the needs of the total organization.
Recognizing that the information may be misused if it falls into wrong
hands, the MIS design should have the features of filtering, blocking,
suppressions, and delayed delivery.
□
□
□

MIS Planning
A very important fundamental concept of MIS planning is that the
organization's strategic plan (Business Plan) should be the basis
for MIS strategic plan.
Alignment of MIS strategy with organizational strategy is one of the
central problems of MIS planning.
The Information Master Plan establishes a framework for all detailed
information system planning.
Information Master Plan typically has one long-range plan for three to five
years (or more) and one a short-range plan for one year.
The long-range portion provides general guidelines for direction and short-
range portion provides a basis for specific accountability as to
operational and financial performance.
In ge□
neI
rn
af
lo
,r
m
pla
at
ni
o
n
cos
ny
s
t
at
e
inm
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s
r,
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b
aj
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oc
rt
i
v
se
es
cta
in
od
nsa
:r
c
h
i
t
e
c
t
u
r
e(assessment of
organizational context);
Inventory of current capabilities;
Forecast of development affecting the plan; The specific plan.
□
□
□

MIS Unit 1 Management Information Systems

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