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MIS-Uint-Ist, IInd & IIIrd.pptx

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  1. 1. Jagran Institute Of Management MBA:FIRST YEAR-2nd Semester- Session-2021-22 (KMBN208)-MANAGEMENT INFORMATION SYSTEMS Subject Start Date:11th-April-2022 NameofFaculty: VishnuKr.Shukla (Assistant Professor) Dept.ofMCA
  2. 2. MANAGEMENT INFORMATION SYSTEMS Course Objective – 1. To help the students understand the importance of information management in business and management. 2. To provide understanding about different types of information systems in business. 3. To apply the theory and concepts in practical with help of software. 4. To understand various security and ethical issues with Information Systems. 5. To provide hands on learning of applications on Spreadsheet and database software.
  3. 3. MANAGEMENT INFORMATION SYSTEMS UNIT -1 (6 Hours)- Management Information Systems - Need, Purpose and Objectives, Contemporary Approaches to MIS, Information as a strategic resource, Use of information for competitive advantage, MIS as an instrument for the organizational change. Information Technology – Characteristics and emerging trends, IT Capabilities and their organizational impact, IT enabled services. Transaction Processing System: Characteristics and its importance.
  4. 4. MANAGEMENT INFORMATION SYSTEMS UNIT -II (6 Hours)- Information, Management and Decision Making - Attributes of information and its relevance to Decision Making, Types of information. Models of Decision Making - Classical, Administrative and Herbert Simon's Models. Management Support Systems: Decision Support Systems, Group Decision Support Systems, and Executive Information Systems.
  5. 5. MANAGEMENT INFORMATION SYSTEMS UNIT -III (8 Hours) Managing Data Resources- The need for data management, Challenges of data management, Data independence, Data redundancy, Data consistency, Data administration. Database Management System – Concepts and types of DBMS, Fields, Records, Table, View, Reports and Queries. Data warehouse and Data mining – Characteristics and uses of Data warehouse, Techniques of Data Mining, Business Intelligence Database Management System (Lab): Creation of Table, View and Reports. Basics of SQL and running queries.
  6. 6. MANAGEMENT INFORMATION SYSTEMS Suggested Readings 1. Management Information System – James ‘O’ Brian. 2. Management Information Systems, Laudon and Laudon, 7th Edition, Pearson Education Asia . 3. Management Information Systems, Jawadekar, Tata McGraw Hill . 4. Analysis and Design of Information Systems, Rajaraman, Prentice Hall . 5. Database Management Systems: A Business-Oriented Approach Using ORACLE, MySQL and MS Access, by Sotirios Zygiari . 6. Computer Applications in Business (CBCS) by Dr. Sushil Kumar Sharma & Ms. Mansi Bansal (Taxmann) . 7. Excel 2019 All-In-One: Master the new features of Excel 2019 / Office 365, Lokesh Lalwani (BPB.)
  7. 7. MANAGEMENT INFORMATION SYSTEMS CO1 Be able to understand the importance of information management in business and management Knowledge( K2) / Remembering ( K1) CO2 To understand and formulate different types of information systems in business Knowledge ( K2) CO3 Be able to apply the theory and concepts in practical with help of software Applying ( K 4) CO4 To apply various security and ethical issues with Information Systems Applying ( K 4) CO5 To synthesize applications on Spread sheet and database software Synthesizing ( K6)/ Evaluating ( K7)
  8. 8. Before starting subject- Overview of Computers: Block diagram and its description, digital computer & types with specification. Computer Hardware: Input device/Output devices. Storage Devices/ Introduction to Memory. Computer Software: System Software & Application Software. Number Systems. Introduction to programming language: Different levels of PL: High Level language, Assembly language, Machine language. Language Translator :-Introduction to Compiler, Interpreter, Debugger, Linker, Loader, Assembler.
  9. 9. MANAGEMENT INFORMATION SYSTEMS INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM:- MIS is the use of information technology, people, and business processes to record, store and process data to produce information that decision makers can use to make day to day decisions. Or Management Information Systems (MIS), referred to as Information, Management and Systems, is the discipline covering the application of people, technologies, and procedures collectively called information systems, to solving business problems. “'MIS' is a planned system of collecting, storing and disseminatingप्रसारdata in the form of information needed to carry out the functions of management.”
  10. 10. According to Philip kolter- A management information system consist of people, equipment and procedures together, sort, analyze, evaluate and distribute the needed timely and accurate information and marketing decision makers. MIS is also knows as Information Systems/ Information and Decision Systems/ Computer- Based Information Systems.
  11. 11. MANAGEMENT INFORMATION SYSTEMS Definitions of MIS: 1. MIS is defined as a systemwhichprovides information support for decision-makingin theorganization. 2. MIS is defined as an integrated system of manand machine for providinginformationto theoperations,management& decision-makingfunctionin theorganization. 3. MIS is definedas a system basedon thedatabaseof the organizationfor thepurposeof providing informationto people in organization. 4. MIS is defined as a Computer-basedInformationSystem.
  12. 12. Another Meaning of MIS Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making. e.g. Decision Support Systems, Expert Systems, and Executive Information Systems.
  13. 13. According to Subhalakshmi Joshi:- Management information system, or MIS, broadly refers to a computer based system that provides managers with the tools to organize, evaluate and efficiently manage departments within an organization.
  14. 14. MANAGEMENT INFORMATION SYSTEMS COMPONENTS OF MIS:- 1. Management: Word “management” identifies a special group of people whose job is to direct the effort and activities of other people toward common objective. “Management is the process of coordinating work activities so that they are completed efficiently and effectively with and through other people”. Another concept of MANAGEMENT is the effective utilization of human and material resources to achieve the enterprise objective.
  15. 15. MANAGEMENT INFORMATION SYSTEMS The basic functions performed by a manager in an organization are: It is a process consisting of the five basic functions: Planning, Controlling, Staffing, Organizing, and Directing.
  16. 16. *MANAGEMENT INFORMATION SYSTEMS *2. INFORMATION:- * Information is data that has been manipulated to be useful to someone. Information must have value. Information tells people something they don’t already know or confirms something that they suspect. *Information is considered as valuable component of an organization. *So, in MIS, means the processed data that helps the management in planning, controlling and operations.
  17. 17. What is Data: Data is raw, unorganized facts that need to be processed. Data can be something simple and seemingly random and useless until it is organized. What is Information: When data is processed, organized, structured or presented in a given context so as to make it useful, it is called information.
  18. 18. • Data are the facts or details from which information is derived. Individual pieces of data are rarely useful alone. For data to become information, data needs to be put into context. Data is a single unit. A group of data which carries new and meaningful data is called Information.
  19. 19. • Some more differences between data and information: • Data is used as input for the computer system. Information is the output of data. • Data is unprocessed facts figures. Information is processed data. • Data doesn’t depend on Information. Information depends on data. • Data is not specific. Information is specific.
  20. 20. MANAGEMENT INFORMATION SYSTEMS Data are the facts or details from which information is derived. Individual pieces of data are rarely useful alone. Data is a single unit. A group of data which carries new and meaning is called Information. Data doesn’t carry a meaning. Information must carry a logical meaning. Data is the raw material. Information is the product. It is an entity piece of information that is fact. Information = Instruction + Data DATA-------→PROCESSING------ →INFORMATION Data involves facts and figures-Information on the other hand is like a finished product.
  21. 21. MANAGEMENT INFORMATION SYSTEMS SYSTEM:- A system is defined as a set of elements which are joined together to achieve a common objective. The elements are interrelated and interdependent. Or A system is a group of interrelated components working together toward a common goal (according to a plan to achieve a specific objective) by accepting inputs and producing output in an organized transformation process.
  22. 22. Manual Information Systems VS Computerized Information Systems (MIS) Data is the bloodstream of any business entity. Everyone in an organization needs information to make decisions. An information system is an organized way of recording, storing data, and retrieving information. In this section, we will look at manual information systems vs. computerized information systems. Manual Information System A manual information system does not use any computerized devices. The recording, storing and retrieving of data is done manually by the people, who are responsible for the information system.
  23. 23. The following are the major components of a manual information system People –people are the recipients of information system Business Procedures –these are measures put in place that define the rules for processing data, storing it, analyzing it and producing information Data –these are the recorded day to day transactions Filing system – this is an organized way of storing information Reports –the reports are generated after manually analyzing the data from the filing system and compiling it.
  24. 24. Advantages and Dis-advantages of a manual information system Advantages: The following are the advantages of manual information systems Cost effective – it is cheaper compared to a computerized system because there is no need to purchase expensive equipment such as servers, workstations, printers, etc. Flexible –evolving business requirements can easily be implemented into the business procedures and implemented immediately Disadvantages: The following are some of the disadvantages of a manual information system. Time consuming –all data entries need to be verified before filing, this is a time consuming task when done by humans. Retrieving data from the filing system also takes a considerable amount of time
  25. 25. Prone to error – the accuracy of the data when verified and validated by human beings is more prone to errors compared to verification and validation done by computerized systems. Lack of security – the security of manual systems is implemented by restricting access to the file room. Experience shows unauthorized people can easily gain access to the filing room Duplication of data –most departments in an organization need to have access to the same data. In a manual system, it is common to duplicate this data to make it easy to accessible to all authorized users. The challenge comes in when the same data needs to be updated Data inconsistency – due to the duplication of data, it is very common to update data in one file and not update the other files. This leads to data inconsistency Lack of backups – if the file get lost or mishandled, the chances of recovering the data are almost zero.
  26. 26. Computerized information system Computerized systems were developed to address the challenges of manual information systems. The major difference between a manual and computerized information system is a computerized system uses a combination of software and hardware to record, store, analyze and retrieve information. Advantages and Disadvantages of a computerized information system (MIS) The following are some of the disadvantages of a computerized information system. Advantages: The following are the advantages of computerized information systems Fast data processing and information retrieval – this is one of the biggest advantages of a computerized information system. It processes data and retrieves information at a faster rate. This leads to improved client/customer service Improved data accuracy – easy to implement data validation and verification checks in a computerized system compared to a manual system. Improved security – in addition to restricting access to the database server, the computerized information system can implement other security controls such as user’s authentication, biometric authentication systems, access rights control, etc.
  27. 27. Reduced data duplication – database systems are designed in such a way that minimized duplication of data. This means updating data in one department automatically makes it available to the other departments Improved backup systems – with modern day technology, backups can be stored in the cloud which makes it easy to recover the data if something happened to the hardware and software used to store the data Easy access to information – most business executives need to travel and still be able to make a decision based on the information. The web and Mobile technologies make accessing data from anywhere possible. Disadvantages: It is expensive to set up and configure – the organization has to buy hardware and the required software to run the information system. In addition to that, business procedures will need to be revised, and the staff will need to be trained on how to use the computerized information system. Heavy reliance on technology – if something happens to the hardware or software that makes it stop functioning, then the information cannot be accessed until the required hardware or software has been replaced. Risk of fraud – if proper controls and checks are not in place, an intruder can post unauthorized transactions such as an invoice for goods that were never delivered, etc.
  28. 28. *MANAGEMENT INFORMATION SYSTEMS *Thus every system is said to be composed of subsystems. A system has one or multiple inputs, these inputs are processed through a transformation process to convert these input( s) to output. *Ex. Human body is a system composed of various parts, which are working together towards a common objective , that is to live
  30. 30. SWOT: Strengths, Weaknesses, Opportunities, and Threats analysis *What is SWOT: *SWOT Analysis is a simple but useful framework for analysing your organization's strengths, weaknesses, opportunities, and threats. It helps you to build on what you do well, to address what you're lacking, to minimize risks, and to take the greatest possible advantage of chances for success. *What is Six Sigma: *Six Sigma is a method that provides organizations tools to improve the capability of their business processes. This increase in performance and decrease in process variation helps lead to defect reduction and improvement in profits, employee morale, and quality of products or services. *Six Sigma is a methodology and set of tools that help us measure what we do and then improve what we do.
  31. 31. What is CMMI: Capability Maturity Model Integration (CMMI) is a process level improvement training and appraisal program. CMMI defines the following maturity levels for processes: Initial, Managed, Defined, Quantitatively Managed, and Optimizing. *The Capability Maturity Model Integration, or CMMI, is a process model that provides a clear definition of what an organization should do to promote behaviours that lead to improved performance. With five “Maturity Levels” or three “Capability Levels,” the CMMI defines the most important elements that are required to build great products, or deliver great services, and wraps them all up in a comprehensive model. *The CMMI helps us understand the answer to the question “how do we know?” *How do we know what we are good at? *How do we know if we’re improving? *How do we know if the process we use is working well? *How do we know if our requirements change process is useful? *How do we know if our products are as good as they can be? *The CMMI also helps us identify and achieve measurable business goals, build better products, keep customers happier, and ensure that we are working as efficiently as possible.
  32. 32. MANAGEMENT INFORMATION SYSTEMS TYPES OF MIS :- There are various types of MIS- 1. Transaction Processing System (TPS):- -designed to process routine transactions efficiently and accurately. Managers often use these systems to deal with such tasks as payroll, customer billing and payments to suppliers. Or MIS produce fixed ,regularly scheduled reports based on data extracted and summarized from the firms underlying transaction processing systems to middle and operational level managers to identify and inform structured and semi structured decision problems.
  33. 33. MANAGEMENT INFORMATION SYSTEMS 2. Decision support system (DSS):- This are computer applications used by middle management to compile information from a wide range of sources to support problem solving and decision making. 3. Executive Support System (ESS):- Executive Support System (ESS) is software used by companies which has information related to business, which enables the top management to take better decisions in favor of the company.
  34. 34. MANAGEMENT INFORMATION SYSTEMS 4. Knowledge Management Systems ("KMS")-to help businesses create and share information. These are typically used in a business where employees create new knowledge and expertise - which can then be shared by other people in the organization to create further commercial opportunities. 5. Customer Relationship Management (CRM):- This are MIS designed specifically for managing the marketing aspects of the business . 6. Office Automation Systems (“OAS”)-that try to improve the productivity of employees who need to process data and information. Wide range of software systems that exist to improve the productivity of employees working in an office (e.g. Microsoft Office XP) or systems that allow employees to work from home or whilst on the move.
  35. 35. MANAGEMENT INFORMATION SYSTEMS Why MIS ? • Manager makes decisions all the time. • There is an overload of information. • All information is not useful. • Anything which helps manager improve his decision- making will obviously lead to better result. • MIS is a system, where data is the input, which is processed to provide output in the form of information reports, summaries, etc . Which aid the manager’s decision-making process.
  36. 36. MANAGEMENT INFORMATION SYSTEMS How is a Management Information System Useful in Companies? Planning and Control : MIS improves the quality of plants by providing relevant information for decision – making. MIS serves as a link between managerial planning and control. It improves the ability of management to evaluate and improve performance. MIS Minimizes Information Overload : MIS change the larger amount of data into summarized form and therefore, avoids the confusion which may arise when managers are flooded with detailed facts. MIS Encourages Decentralization : Decentralization of authority is possibly when there is a system for monitoring operations at lower levels. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures.
  37. 37. MANAGEMENT INFORMATION SYSTEMS Costs : Invest in a consultant to help define your core requirements that include information for strategic planning and project management. To be useful and successful, a management information system should focus on company products and services, customers, operating costs, marketing opportunities and the company's exposure to risk. • MIS brings Coordination : MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments. It connects all decision centers in the organization . MIS assembles, process , stores , retrieves , evaluates and disseminates the information .
  38. 38. MANAGEMENT INFORMATION SYSTEMS Impact of the Management Information System * • With a good MIS support, the management of marketing , finance, production and personnel becomes more efficient. *• The MIS begins with the definition of a data entity and its attributes, respectively, designed for information generation in the organization. *• The MIS calls for a systemization of the business operations for an effective system design. *• This leads to streamlining of the operations which complicate the system design.
  39. 39. MANAGEMENT INFORMATION SYSTEMS *• MIS improves the administration of the business by bringing a discipline in its operations as everybody is required to follow and use systems & procedures. *• This process brings a high degree of professionalism in the business operations. *• Since the goals and objectives of the MIS are the products of business goals & objectives, it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization.
  44. 44. MANAGEMENT INFORMATION SYSTEMS Objectives of MIS : The goals of an MIS are to implement the organizational structure and dynamics of the enterprise for the purpose of managing the organization in a better way and capturing the potential of the information system for competitive advantage. Following are the basic objectives of an MIS:- 1. Data Capturing : MIS capture data from various internal and external sources of organization. Data capturing may be manual or through computer terminals. 2. Processing of Data : The captured data is processed to convert into required information. Processing of data is done by such activities as calculating, sorting, classifying, and summarizing. Processing data means − *making calculations with the data *sorting data *classifying data and *summarizing data
  45. 45. 3. Storage of Information : MIS stores the processed or unprocessed data for future use. If any information is not immediately required, it is saved as an organization record, for later use. 4. Retrieval of Information : MIS retrieves information from its stores as and when required by various users. 5. Dissemination of Information : Information, which is a finished product of MIS, is disseminated to the users in the organization. It is periodic or online through computer terminal.
  46. 46. MANAGEMENT INFORMATION SYSTEMS NEED FOR MIS:- MIS is an information system that provides information in the form of standardized reports and displays for the managers. MIS is a broad class of information systems designed to provide information needed for effective decision making. Data and information created from an accounting information system and the reports generated thereon are used to provide accurate, timely and relevant information needed for effective decision making by managers. MIS Need for Information Systems *Managers make decisions. Decision-making generally takes a four- fold path − *Understanding the need for decision or the opportunity, *Preparing alternative course of actions, *Evaluating all alternative course of actions, *Deciding the right path for implementation.
  47. 47. MANAGEMENT INFORMATION SYSTEMS Here ,discussed about some points regarding needs of MIS- Decision makers need information to make effective decisions- Management Information Systems (MIS) make this possible. MIS systems facilitate communication within and outside the organization – Employees within the organization are able to easily access the required information for the day to day operations. Facilitates such as Short Message Service (SMS) & Email make it possible to communicate with customers and suppliers from within the MIS system that an organization is using.
  48. 48. Business Need Information Technology?- The fundamental reasons for the use of information technology in business are: Support of business operations Support of managerial decision making Support of strategic competitive advantage. Emergence of the Global Economy Transformation of the Business Enterprise Competitive Business Environment Record keeping – Management information systems record all business transactions of an organization and provide a reference point for the transactions.
  49. 49. PURPOSE OF MIS:- The purpose of MIS is reporting and is to provide the necessary information to the managers and supervisors at various levels to help them to discharge their functions of organising, planning, control and decision making. The primary purpose of a management information system, or MIS, is to assist managers in making strategic, tactical and operational decisions in an efficient and productive manner. It provides managers with essential information that is gathered from a variety of sources, pooled into a single database and compiled in a readable format. Management Information Systems are primarily concerned with the delivery of information (both internal and external) to organizational members from the shop floor workers to the management.
  50. 50. In other terms, The purpose of MIS is to help the smooth running of the business by providing information on the firms data (such as accounting figures) employees from different levels will then evaluate this information so that decisions can be made to ensure that the business remains competitive and successful. A management information system consists of a set of systems and processes that distributes information to managers. This tool is used to make reports and comprehensive overviews that help managers conduct performance reviews and make a wide range of decisions, such as an in-depth analysis of operational concerns. It provides internal reports that are presented in an easily understandable format. Information collected by a MIS are either financial or operational depending on the needs of management.
  51. 51. A MIS is generally capable of collecting any type of information required by managers. It views financial data, such as daily expenses and revenues, and attributes these data to respective departments. Personnel are able to manage outgoing shipments and incoming deliveries from any location connected to the MIS. MIS have been created to support the whole range of business's administration and regulatory activities and can be seen in all parts of the world and in all types of industries both public and private sector. *In the US, for example, the National Drivers Register has MIS facilities to report on driver license details, such as all those within a given state whose license has been revoked or suspended.
  52. 52. Advantage Or Benefits of MIS:- A good management information system can be used not only for the storage of electronic data alone but must be able to support the analysis required by management. There are many advantages of MIS which are utilized by manager to achieve organization goal.. • Data can easily be accessed and analyzed without time consuming manipulation and processing. • Decisions can be made more quickly and with confidence that the data are both time-relevant and accurate. • Integrated information can be also kept in categories that are meaningful to profitable operation.
  53. 53. MANAGEMENT INFORMATION SYSTEMS Significant cost benefits, time savings, productivity gains and process re-engineering opportunities are associated with the use of data warehouse for information processing. The following are some of the benefits of a good MIS:- *Increased customer satisfaction. *Improved quantity and quality of information. *Improved quality and quantity management decisions. *Improved responsiveness number of the competitor’s condition. *Improved operational efficiency and flexibility. *Improved quality of internal and external communications. *Improved quality of planning. *Improved quality control and supervision.
  54. 54. *Limitations Or Disadvantage of MIS:- Even though MIS has many benefits but it also has its limitations. *Limitations of MIS are discussed below: *While MIS may solve some critical problems but it is not a solution to all problems of an organization. *It cannot meet the special demands of each person. MIS if designed in an improper manner does not serve the management and hence is of little relevance. *The MIS is not good if the basic data is obsolete and outdated. Mostly information provided by the MIS is in quantities form. *Hence, it ignores the qualitative information like the attitude of an employee.
  55. 55. Challenges of MIS:- *There are three major challenges of MIS. These are briefly discussed below: *High Cost *Training of Employee *Maintenance Cost 1. High Cost:- Development of new computerized based information system is a problem for the organization due to the cost factor and it creates problems because with the change of time there is need of up-to-date of the information system. 2. Training of Employee:- Employees should have the capacity of learning of the information system with the changing competitive and business environment; otherwise it will be difficult for the organization to stay in the market. 3. Maintenance Cost:- Sometimes a problem arises due to server crash and website crash. Sometimes it leads to the loss of information. So, maintenance cost is needed to tackle the above problem.
  56. 56. Information is Strategic Resources. Because Information helps in taking Strategic, Tactical and operational Decisions. It is one of critical and importance resource. It helps us understand Cost, Quality, price, technology, productivity and product.
  57. 57. MIS as an instrument for the organizational change:- MIS can deliver facts, data and trends to businesses with lightning speed. Having this information allows companies to react quickly to market changes, regardless of the type (positive or negative) of volatility. MIS acts’ as an agent or a catalyst to bring about organizational change that is needed to cope up with the changing business environment and the effect of external forces. MIS has shifted from back office to front office. The role of the MIS in an organization can be compared to the role of heart in the body. Example : The information is the blood and MIS is the heart. In the body, the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis. The MIS plays exactly the same role in the organization.
  58. 58. The system ensures that an appropriate data is collected from the various sources, processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management : the managers and the top management. The MIS satisfies the diverse needs through a variety of systems such as Query Systems, Analysis Systems, Modeling Systems and Decision Support Systems. The MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing. The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents.
  59. 59. The MIS helps the junior management personnel by providing the operational data for planning, scheduling and Controlling and helps them further in decision making at the operations level to correct an out of control situation. The MIS helps the middle management in short-term planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. The MIS helps the top management in goal setting, strategic planning and evolving the business plans and their implementation. The MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization.
  60. 60. External Changes:- 1. MIS has made world smaller. 2. Worldwide reorganization environment and attempt to control the calamity. 3. Health conscious among the group leading less sufferings. 4. Change in the work lifestyle for better result. 5. Creating Knowledge is an asset. Internal Change:- MIS will change the Business Process. 2. MIS will change the old standards and set new standards. 3. MIS key for Continuous improvement Process. 4. MIS will reduce the hierarchy and hence less operation cost. 5. MIS focus on “Shared information. 6. MIS will accelerate restructure work flow for both line and staff functions. 7. MIS will bring change in Authority and power by merit and not by age or number of years of experience. 8. MIS brings cultural change. 9. MIS measures the results and performance. 10. MIS brings Continuous addition to Organizational knowledge base.
  61. 61. Contemporary Approaches to information systems:- Although information systems are a collection of electrical and mechanical devices, they require the organization, and the people that work within the organization for them to be successful. Or Information systems are sociotechnical systems. Although they are composed of machines, devices, and "hard" physical technology, they require substantial social, organizational, and intellectual investments to make them work properly. Since problems with information systems—and their solutions— are rarely all technical or behavioral, a multidisciplinary approach is needed.
  62. 62. When an information system is being developed, much importance should be given to the structure of the organization, culture of the organization, etc. But along with these, especial attention should also be given to the technical side of MIS. The various contemporary approaches to MIS development can be summarized as: The Behavioral Approach a) Based on the impact of the behavior and also on the response of the people in the organization. b) Motivational Feasibility forms a very important and demanding part of such an approach towards MIS development. • Deals with behavioral issues that arise in the development, and long term maintenance of the information system. • Different disciplines, such as psychologists, sociologists, Economists, study information systems, and the impacts they have in the organizational environment. Behavioral changes can occur within the organization during, and after information system development. The key to this approach is to find the solution to the behavior, which is not a technical issue
  63. 63. The Technical Approach: The technical approach uses mathematical models to test the capabilities of information systems. These disciplines include: • Computer Science - concerned with methods of computability, computation, and data storage and access. • Management Science - emphasized the development of models for decision making, and management practices. Operations Research - focuses on mathematical techniques for optimizing selected parameters of organizations.(inventory control, transaction costs).
  64. 64. MANAGEMENT INFORMATION SYSTEMS Information System:- Before discussion of information system you should know the- What is Digital Convergence: It is an approach by which all types of media and communication will be digitized allowing them to be used through a single worldwide network. What is Information Technology: Hardware and software that perform data processing tasks, such as capturing, transmitting, storing, retrieving, manipulating or displaying data. What is IT Architecture: A conceptual design for the implementation of information technology in an organization, including its hardware, software, and network technology platforms, data resources, application portfolio, and IS organization.
  65. 65. MANAGEMENT INFORMATION SYSTEMS Introduction to Information System: A collection of elements(devices) that capture data and convert it in information and disseminate to the decision-makers in an organization. In other words, An information system is an organized combination of people, hardware, software, communications network, and data resources that collects, transforms, and disseminates in an organization. An information system contents information about an organization and its surrounding environment. Three basic activities – input, processing, and output produce the information organization needs. Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input environment factors such as customers, suppliers, competitors, stock holders and regulatory agencies interact with the organization and its information.
  66. 66. Components of Information System :- It is a combination of – Input Processor Output People Hardware(physical devices) : Software (information processing instructions) Data Network (communication channels) Input In computing, an input device is a piece of equipment used to provide data and control signals to an information processing system such as a computer or information appliance. Examples of input devices include keyboards, mouse, scanners, cameras, joysticks, and microphones.
  67. 67. MANAGEMENT INFORMATION SYSTEMS Processor :-A processor, or "microprocessor," is a small chip that resides in computers and other electronic devices. Its basic job is to receive input and provide the appropriate output. While this may seem like a simple task, modern processors can handle trillions of calculations per second. Output:-An output is data that a computer sends. Computers only work with digital information. Any input that a computer receives must be digitised. Often data has to be converted back to an analogue format when it's output, for example the sound from a computer's speakers. People :-The term “People" probably means the group of team members (executives and other managers) who are primarily responsible for making decisions in the organization.
  68. 68. MANAGEMENT INFORMATION SYSTEMS Hardware(physical devices) :Computer hardware refers to the physical devices such as servers, desktop computers, laptops, portable devices, networking devices, storage devices and printers, etc. Let's now look at each of these elements separately Software (information processing instructions) :-The software runs on top of the hardware. Software refers to computer programs that perform specific tasks. The software is usually divided into two major categories namely system and application software. Data :-Computer data is information processed or stored by a computer. This information may be in the form of text documents, images, audio clips, software programs, or other types of data.
  69. 69. *MANAGEMENT INFORMATION SYSTEMS *Network (Telecommunication channels):-Networking devices are used to link computers and other telecommunication devices together. The devices used to create a network depend on the type of network work that you want. For example, a wired Local Area Networks (LANs) will require a network switch and RJ-45 cables. *networking devices are used to interconnect computing resources so that they can communicate with each other. Common networking devices include networking hubs and switches, Wi-Fi routers, etc. Hubs and switches are used to provide network connectivity via a physical cable, and they are usually used to connect desktop computers. Wi-Fi routers are used to provide wireless networking capabilities. Wi-Fi routers are usually used to connect laptops and mobile devices to the corporate network. *Telecommunication is the exchange of information over long distances. Telecommunication uses transmitters and receivers to facilitate communication. Signals can be sent via physical cables or the sent via a wireless network. *A telecommunication network refers to multiple transmitters and receivers exchanging data. The internet is an example of a large telecommunication network. Wide Area Networks (WANs), telephone communication networks, etc. are all examples of telecommunication networks.
  70. 70. MANAGEMENT INFORMATION SYSTEMS Types of information systems:- A business has several information systems : *(A) Formal Information System *(B) Informal Information System *(C) Computer Based Information System (A) Formal Information System : It is based on organizational chart represented by the organization. (B) Informal Information System : It is an employee based system designed to meet personal and vocational needs and to help in the solution of work- related problems. It also funnels information upward through indirect channels. It works within the framework of the business and its stated policies.
  71. 71. (C) Computer Based Information System (CBIS) : This category of information system depends mainly on the computer for handling business application. System analysis develops different types of information system to meet variety of business needs. There is class of system known as collectively as computer based information system. Types of Information system:- They are categorized in the following 6 classes: *i) Transaction Processing System (TPS) *ii) Management Information System (MIS) *iii)Decision Support System (DSS) *iv)Executive Support System (ESS) *v)Office Automation Systems (OASs), and *vi)Business Expert Systems (BESs)
  72. 72. *These classification of Information Systems can be done on the basis of business functions also. This classification is done to achieve the maximum efficiency in business functions. *There are lot many considerations we have to bother while we do business. *The role played by the Internet and Information Technologies to support electronic commerce, enterprise communications and collaboration, and Web-enabled business processes both within a networked enterprise, and with its customers and business partners will definitely require specialized Information Systems for Business functions.
  73. 73. Figure shows the specific types of information systems that correspond to each organizational level.
  74. 74. MANAGEMENT INFORMATION SYSTEMS *The organization has executive support systems (ESS) at the strategic level; *management information systems (MIS) and decision-support systems (DSS) at the management level; *knowledge work systems (KWS) and office automation systems at the knowledge level; and *transaction processing systems (TPS) at the operational level. *Systems at each level in turn are specialized to serve each of the major functional areas. *Thus, the typical systems found in organizations are designed to assist workers or managers at each level and in the functions of sales and marketing, manufacturing, finance, accounting, and human resources.
  75. 75. Function of an Information System
  76. 76. *Organizations can be divided into strategic, management, knowledge and operational levels and into five major functional areas- sales and marketing, manufacturing, finance, accounting, and human resource. Information system serves each of these levels and functions.
  77. 77. *1. TPS (Transaction Processing System): TPS are the basic business systems that serve the operational level of the organization. A TPS is a computerized system that performs and records the daily routine transactions necessary to conduct business. Examples are sales order entry, hotel reservation system, payroll, employee record mgmt., etc. *Managers need TPS to monitor the status of internal operations and firm’s relations with external environment. TPS are also measure producers of information for the other type of system. *TPS processes transaction and produces reports. It represents the automation of the fundamental, routine processing used to support business operations. It does not provide any information to the user to his/her decision-making
  78. 78. *Transaction Processing Systems (TPS) are cross-functional information systems that process data resulting from the occurrence of business transactions. *Transactions are events that occur as part of doing business, such as sales, purchases, deposits, withdrawals, refunds, and payments. Transaction processing activities are needed to capture and process data, or the operations of a business would grind to a halt. *Example: Let us look at a simple example of a business transaction. McDonald’s, which sells a large number of hamburgers everyday, orders raw materials from its suppliers. *Each time the company places an order with a supplier, a transaction occurs and a transaction system records relevant information, such as the supplier’s name, address, and credit rating, the kind and quantity of items purchased, and the invoice amount.
  79. 79. Types of Transactions *There are mainly two types of transaction and these are: * Internal transaction * External transaction *Internal Transactions: Those transactions, which are internal to the company and are related with the internal working of any organization. *Example: Recruitment Policy, Promotion Policy, Production Policy, etc. *External Transactions: Those transactions, which are external to the organization and are related with the external sources, are regarded as External Transaction. For example sales, purchase, etc. *When a department orders office supplies from the purchasing department, an internal transaction occurs, when a customer places an order for a product, an external transaction occurs.
  80. 80. Characteristics of Transaction Processing Systems *Various characteristics of TPS are: * A TPS records internal and external transactions for a company. It is a repository of data that is frequently accessed by other systems. * A TPS performs routine, repetitive tasks. It is mostly used by lower- level managers to make operational decisions. * Transactions can be recorded in batch mode or online. In batch mode, the files are updated periodically; in online mode, each transaction is recorded as it occurs. * There are six steps in processing a transaction. They are data entry, data validation, data processing and revalidation, storage, output generation, and query support.
  81. 81. Features of TPS:-Various features of TPS are: * A TPS supports different tasks by imposing a set of rules and guidelines that specify how to record, process, and store a given transaction. There are many uses of transaction processing systems in our everyday lives, such as when we make a purchase at retail store, deposit or withdraw money at a bank, or register for classes at a university. Almost all organizations, regardless of the industry in which they operate, have a manual or automated TPS. * A TPS is the data lifeline for a company because it is the source of data for other information systems, such as MIS and DSS (Decision Support Systems). Hence, if the TPS shuts down, the consequences can be serious for the organization. * A TPS is also the main link between the organization and external entities, such as customers suppliers, distributors, and regulatory agencies. * TPS exist for the various functional areas in an organization, such as finance, accounting, manufacturing, production, human resources, marketing quality control, engineering, and research and development. Until a few years ago, many companies viewed the TPS for each business function as separate entity with little or no connection to other systems in the company.
  82. 82. *2. Management Information System (MIS):- MIS is an information system, which processes data and converts it into information. A management information system uses TPS for its data inputs. The information generated by the information system may be used for control of operations, strategic and long-range planning. Short-range planning, management control, and other managerial problem solving. It encompasses processing in support of a wide range of organizational functions & management processes. MIS is capable of providing analysis, planning & decision making support. The functional areas of a business may be marketing, production, human resource, finance and accounting. *MIS serve the management level of organization as stated above with online access to the organization’s current performance and historical records. Typically they are oriented almost exclusively to internal, not environmental or external events. MIS depend on TPS for their data. It summarize and report on the company’s basic operations. MIS usually serve managers interest in weekly, monthly and yearly results not day to day activities.
  83. 83. *It is the Information system at the management level of an organization that serve the functions of planning, controlling and decision making by providing routine summary and exception reports. *3. DSS (Decision Support System) :- *It is the information system at the organizations management level that combines data and sophisticated analytical models or data analysis tools to support semi-structured and unstructured decision making. *DSS use internal information from TPS and MIS; they often bring in information from external sources such as current stock prices or product prices of competitors. DSS have more analytical power then other systems. It is an interactive system in which user can change assumptions, ask new questions and include new data.
  84. 84. *A Decision Support System (DSS) is an interactive computer-based system, which helps decision-makers utilize data and models to solve unstructured problems. *Decision support systems couple the intellectual resources of individuals with the capabilities of the computer to improve the quality of decisions. It is a computer-based support system for management decision-makers who deal with semi-structured and unstructured problems. *A decision support system is an information system whose primary purpose is to provide knowledge workers with information on which to base informed decisions. *The decision support systems take the data and present it in various formats to aid the individual or group in reaching a decision. The decision support systems are generally used by the highest level of management as an aid for the unstructured decisions they have to make. *A decision support system provides facilities for verification of information integrity, and for discovery of discrepancies in received information. Statistical methods and rule-based systems provide some tools for the analysis and pre-processing of data used for generation and evaluation of alternative decisions.
  85. 85. *A decision support system is a computer-based system consisting of three interacting components: *1. A language system: A mechanism to provide communication between the user and other components of the DSS, *2. A knowledge system: The repository of problem domain knowledge embodied is DSS either as data or procedures, and *3. A problem processing system: The link between the other two components, containing one or more of the general problem- handling capabilities required for decision-making. *So, a decision support system is: *(a) An information system *(b) Which is used by managers *(c) In making decisions *(d) And to support, not to replace people *(e) Used when the decision is semi-structured or unstructured *(f) Incorporate a database of some sort *(g) It also incorporates models
  86. 86. *4. KWS (Knowledge Work System) and Office Systems: KWS and office systems serve the information needs at the knowledge level of organization. Knowledge work system aid knowledge workers whereas office systems primarily aid data workers. Knowledge workers are people who hold formal university degrees and who are often members of recognized profession such as engineers, doctors, lawyers, scientists, etc. Their jobs consist primarily of creating new information and knowledge. Data workers typically have less formal advanced educational degrees and tend to process rather than create information. They consist primarily of secretaries, book- keepers, filing clerks or managers whose jobs are principally to use and manipulate information. *
  87. 87. *5.ESS (Executive Support System) : *It is the information system at the organizations strategic level designed to address unstructured decision making through advanced graphic and communication. ESS is designed to incorporate data about external events such as new tan laws and competitors. They filter, compares and track critical data, emphasizing the reduction of time and effort required to obtain information useful to executive. ESS employs the most advanced graphic software and can deliver graphs and data from many sources immediately to a senior executive’s office or to a board room.
  88. 88. *The Nature of Executive’s Work *We now know the basics of ESS. Now before continuing further I want to discuss the nature of an executives work. This means that which type of work executives normally do or perform for which they require not a DSS but ESS. *This is highly required before building an ESS because without the knowledge of executives work we cannot decide about the system which is suitable for him. *Basically manager’s role is divided into three categories: * Interpersonal Role: Roles like figurehead, leader, and liaison * Informational Roles: Roles of monitor, disseminator, spokesperson * Decisional Roles: Entrepreneur, disturbance handler, resource alligator, negotiator. *Most of the ESS support all these roles for executive’s successful working. *If we pay attention then we can see that for interpersonal roles and informational roles with very few advances to DSS the executives can start using ESS. But executives mainly require the ESS for decisional roles.
  89. 89. *We divide the work of executives in relation to the decision roles into 2 phases:- Phase 1 is the identification of problems or opportunities. Phase 2 is the decision of what to do about it. *The figure below provides the flowchart that describes about the process of information flow in decisional roles. *Functional units like finance, production, accounting, and personnel, etc. generate the internal information. The external information comes from the sources such as online databases, newspaper, industry newsletters, government reports, personal contacts, etc. *We know that the combined information is very important because that is the source needed for successful competition and survival. As the data is large the information is needed to be scanned further. *The collected information is then checked and verified for its correction that is it is evaluated for the further use of the organization. Finally, the evaluated information is sent for qualitative or quantitative analysis. *Then the executive makes a decision whether an opportunity occurs or *problem occurs. If there is a problem then information is given as an input for the next step else it is again scanned for further evaluation. *Finally the executives take the decision.
  90. 90. *Advantages of ESS: *Advantages of ESS are: * Simple for high-level executives to use Operations do not require extensive computer experience. * Provides timely delivery of company summary information. * Provides better understanding of information. * Filters data for better time management. * Provides system for improvement in information tracking. *Disadvantages of ESS *Disadvantages of ESS are: * Computer skills required to obtain results. * Requires preparation and analysis time to get desired information. * Detail oriented Provides detailed analysis of a situation. * Difficult to quantify benefits of DSS, How do you quantify a better decision? * Difficult to maintain database integrity. * Provides only moderate support of external data and graphics capabilities.
  91. 91. *According to functions or behaviour IS can be divided into following types:- * Sales and Marketing System * Manufacturing and Production Systems * Finance and Accounting Systems * Human Resources Systems *1.Sales and Marketing System : *The sale and marketing function is responsible for selling the organization’s products or services. Marketing is concerned with identifying the customers for the firm’s products or services, determine what they need or want, planning and developing products and services to meet their needs, and advertising and promoting these products and services.
  92. 92. *Sales are concerned with contacting customers, selling the products and services, taking orders and following up on sales. Sales and marketing information systems support these activities (example)
  93. 93. *2. Manufacturing and Production Systems : *The manufacturing and production function is responsible for actually producing the firm’s goods and services. Manufacturing and production activities deal with the planning, development, and maintenance of production facilities; the establishment of production goals; the acquisition, storage, and availability of production materials; and the scheduling of equipment, facilities, materials, and labour required to fashion finished products. Manufacturing and Production information systems support these activities (example)
  94. 94. *3. Finance and Accounting Systems :-The finance function is responsible for managing the firm’s financial assets, such as cash, stocks, bonds, and other investments, in order to maximize the return on these financial assets. The finance function is also in charge of managing the capitalization of the firm. In order to determine whether the firm is getting the best return on its investments, the finance function must obtain a considerable amount of information from sources external to the firm. *The accounting function is responsible for maintaining and managing the firm’s financial records-receipts, depreciation, payroll to account for the flow of funds in a firm. Finance and accounting share related problems such as how to keep track of a firm’s financial assets and fund flows. Financial and accounting information system keep of the firm’s financial assets and fund flows.
  95. 95. *4. Human Resources Systems :- *The human resource function is responsible for attracting, developing, and maintaining the firm’s workforce. Human resources information systems support activities such as identifying potential employees, maintaining complete records on existing employees, and creating programs to develop employees’ talents and skills. *Strategic-level human resources system identify the employee requirements (skills, educational level, types of positions, number of positions, and cost) for meeting the firm’s long term business plans.
  96. 96. Contemporary Approach to Information System :- MIS combines the work of computer science, management science, and operations research with a practical orientation toward developing system solutions to real-world problems and managing IT resources. There are several different approaches to Information Systems: technical, behavioural, sociotechnical * Technical Approach :- * - It emphasis mathematically based models to study Information System, as well as the physical technology and formal capabilities of these systems. * - The disciplines that contribute to technical approach are computer science, management science and operation research. * - Computer science is concerned with establishing theories of computability, methods of computation and methods of efficient data storage and access. * - Management science emphasis the development of models for decision making and management practices. * - Operations research focuses on mathematical techniques for optimizing selected parameters of organization such as transportation, inventory control and transaction cost. Computer science is concerned with establishing theories of computability, methods of computation, and methods of efficient data storage and access. Management science emphasizes the development of models for decision-making and management practices. Operations research focuses on mathematical techniques for optimizing selected parameters of organizations, such as transportation, inventory control, and transaction costs.
  97. 97. OR-Technical Approach:- The technical approach to information systems emphasizes mathematically based models to study information systems, a well as the physical technology and formal capabilities of these systems. The disciplines that contribute to the technical approach are: Computer science, Management science Operations research Computer science is related with instituting speculations of computability, methods of computation, and techniques of efficient data storage and access. Management science highlights the expansion of models for decision-making and management practices. Operations research concentrates on mathematical techniques for optimizing chosen parameters of organizations like transportation, inventory control, and transaction costs. From a technical approach, an information system is observed from a mathematical point of view. Mathematical models are used to study information systems and to elucidate how they can be applied. By means of a technical perspective, management would like to establish speculations of computability which can be utilized to recognize how to apply information systems.
  98. 98. 2. Behavioural Approach :- *- It is concern with behavioural issues that arise in the development and long term maintenance of information system. *- Issues such as strategic business integration design, implementation, utilization and management cannot be explored usefully with the models used in technical approach. *- Other behavioural contribute system with an eye toward how group and organizations shape the development of the system and also how systems affect individuals groups and organizations. *- Psychologist study information system with an interest in how human decision makers perceive and use formal information. *- Economist study information system with an interest in what impact systems have on control and cost structures within the firm and within markets. *- Behavioural approach does not ignore technology. Indeed information system technology is often the stimulus for a behavioral problem or issues. *- Focus of behavioural approach is generally not on technical solutions. Instead, it concentrates on attitudes, management and organizational policy and behavioural.
  99. 99. 3. Sociotechnical Approach:- Information systems are sociotechnical systems. Although they are composed of machines, devices, and "hard" physical technology, they require substantial social, organizational, and intellectual investments to make them work properly. Since problems with information systems—and their solutions—are rarely all technical or behavioural, a multidisciplinary approach is needed. OR In the sociotechnical view of systems, optimal organizational performance is achieved by jointly optimizing both the social and technical systems used in production.
  100. 100. *Information technology (IT) *Information technology (IT) is the use of computers to store or retrieve data and information. IT is typically used within the context of business operations as opposed to personal or entertainment technologies. IT is considered to be a subset of information and communications technology (ICT). *An information technology system (IT system) is generally an information system, a communications system, or, more specifically speaking, a computer system – including all hardware, software, and peripheral equipment – operated by a limited group of IT users. *Information management technology refers to the processes, systems, hardware, and software a company uses to conduct its day- to-day operations. There are very few business processes that do not depend or cannot benefit from information management technology.
  101. 101. *Information technology is the study, design, development, implementation, support or management of computer-based information systems—particularly software applications and computer hardware. IT workers help ensure that computers work well for people.
  102. 102. *Emerging Trends in Information Technology:- *According to Information Technology Association of America, information technology is defined as “the study, design, development, application, implementation, support or management of computer-based information systems.” *Information technology has served as a big change agent in different aspect of business and society. It has proven game changer in resolving economic and social issues. *There are several emerging digital trends impacting the information technology sector as a whole. The IT industry has been experiencing a consistent expansion and growth in its capabilities. As the information technology sector continues to expand, the available job opportunities, organizational structure, and available technologies of the IT industry has significantly changed.
  103. 103. Emerging IT technologies have already significantly impacted major industries like entertainment, business, education, law enforcement, and marketing. Advancement and application of information technology are ever changing. Some of the trends in the information technology are as follows: Cloud computing, The Internet of Things (IoT), Big Dta, Cyber security, Automation, Artificial Intelligence, & Machine Learning, Virtual relating, Block chain & 3D printing etc.
  104. 104. *One of the most talked about concept in information technology is the cloud computing. Clouding computing is defined as utilization of computing services, *Automation, artificial intelligence, and machine learning are one of the most advanced emerging technologies impacting the information technology sector as a whole. Automation is he simulation of human intelligence tasks through machines and computer systems. * AI-empowered systems possess the machine ability to think and learn. When properly deployed, artificial intelligence can be utilized to optimize tasks, streamline efficiency, and minimize errors. In the business world, AI is commonly deployed to streamline customer communications, process digital orders, deliver cognitive insight, and resolve customer issues. Many experts have even predicted that AI is the future of work. Automation, AI, and machine learning are one of the largest growing digital trends impacting the IT industry.
  105. 105. *IT Capabilities and their organizational impact
  106. 106. The Impact of IT on Organizations "Many of the impacts of Information Technology are straightforward. But they are not necessarily obvious, nor are they trivial" (Jack Nilles, Centre for Future Research) Information technology (IT) is dramatically changing the business landscape. Although organization cultures and business strategies shape the use of IT in organizations, more often the influence is stronger the other way round. IT significantly affects strategic options and creates opportunities and issues that managers need to address in many aspects of their business.
  107. 107. The some of the key impacts of technology and the implications for management on: Business strategy - collapsing time and distance, enabling electronic commerce Organization Culture - encouraging the free flow of information Organization Structures - making networking and virtual corporations a reality Management Processes - providing support for complex decision making processes Work - dramatically changing the nature of professional, and now managerial work The workplace - allowing work from home and on the move, as in telework.
  108. 108. IT enabled services Or-Information Technology Enabled Services (ITeS):- *ITES, Information Technology Enabled Service, is defined as outsourcing of processes that can be enabled with information technology and covers diverse areas like finance, HR, administration, health care, telecommunication, manufacturing etc. Armed with technology and manpower, these services are provided from e-enabled locations. This radically reduces costs and improve service standards. In short, this Internet service provider aims in providing B2B e-commerce solutions. *OR- *IT enabled Services (ITeS), also called web enabled services or remote services or Tele-working, covers the entire gamut of operations which exploit information technology for improving efficiency of an organization. These services provide a wide range of career options that include opportunities in call Centre, medical transcription, medical billing and coding, back office operations, revenue claims processing, legal databases, content development, payrolls, logistics management, GIS (Geographical Information System), HR services, web services etc
  109. 109. *Some of the most important areas where IT enabled services can be deployed are: *Some of the services offered include : *• Medical Transcription *• Document Processing *• Data Entry and Processing *• Data Warehousing *• IT Help Desk Services *• Application Development *• Enterprise Resource Planning *• Telecommunication Services Telemarketing * Helpdesk * Customer Support Centres * Data Ware House * Transcription Centres * GIS Mapping for Transport tracking * Electronic Distribution.
  110. 110. What is information?
  111. 111. *Types of information:- Conceptual information Here are some examples of conceptual information:
  112. 112. * 2. Procedural information Here are two examples of procedural information: Riding a bicycle: Driving a car: Tying a shoelace
  113. 113. * 4. Stimulatory information Here are other examples of stimulatory information:
  114. 114. * 6. Directive information:- Here are some examples of directive and descriptive information:
  115. 115. * 5. Empirical information Here are several examples of empirical information, rooted in science:
  116. 116. * 3. Policy information:- Here are some examples of policy information:
  117. 117. * Other classifications of information Factual information Analytical information: Subjective informa Objective information
  118. 118. Attributes of Information:- There are various types attributes of information - Accuracy : 2. Relevance What, Why, Where, When, Who, and How For example
  119. 119. 3. Adequacy : 4 Completeness
  120. 120. 5. Explicitness :
  121. 121. 6. Exception-Based :
  122. 122. Quality, Form Utility • Time Utility • Place Utility • Possession Utility
  123. 123. Decision Making Models: The decision-making process though a logical one is a difficult task. All decisions can be categorized into the following three basic models.. (1) The Rational/Classical Model of decision-making (2) The Administrative or Bounded Rationality Model of Decision- making (3) The Retrospective Decision-Making (पूर्वव्यापी निर्वय लेिा) Model. 1. The Rational/Classical Model of decision-making:- The rational model is the first attempt to know the decision- making-process. It is considered by some as the classical approach to understand the decision-making process. A classical decision model is a prescriptive approach that guides management on how it should make a decision. It rests on the assumption that managers are logical and rational and that they make decisions that are in the best interest of the organization.
  124. 124. What is Rational Decision-Making Process? Identify Problem Decision Criteria Allocate Weights Develop Alternatives Analyze Alternatives Select an Alternative Implement the Decision Evaluate the Effect
  125. 125. *Features of Classical Model: *1. Problems are clear. *2. Objectives are clear. *3. People agree on criteria and weights. *4. All alternatives are known. *5. All consequences can be anticipated. *6. Decision makes are rational. i. They are not biased in recognizing problems. ii. They are capable of processing ail relevant information iii. They anticipate present and future consequences of decisions. iv. They search for all alternatives that maximizes the desired results. The classical model views the decision-making process: i) Decision-makers have complete information about the decision situation and possible alternatives, ii) They can effectively eliminate uncertainty to achieve a decision condition of certainty, iii) They evaluate all aspects of the decision situation logically and rationally.
  126. 126. However, these conditions rarely, if ever, actually exist. This model may be represented in the following diagram:
  127. 127. *2.Bounded Rationality Model or Administrative Model of Decision-making: Herbert A. Simon was of the first few scholars to recognize that decisions are not always made with rationality and logic. Simon, a winner of the Nobel Prize in Economics, instead of prescribing how decisions should be made, describes how decisions often actually are made. Decision-making involve the achievement of a goal. Rationality demands that the decision-maker should properly understand the alternative courses of action for reaching the goals. *He should also have full information and the ability to analyse properly various alternative courses of action in the light of goals sought. There should also be a desire to select the best solutions by selecting the alternative which will satisfy the goal achievement. *Herbert A. Simon defines rationality in terms of objective and intelligent action. It is characterized by behavioral nexus between ends and means. If appropriate means are chosen to reach desired ends the decision is rational. *Bounded Rationality model is based on the concept developed by Herbert Simon. This model does not assume individual rationality in the decision process.
  128. 128. *Instead, it assumes that people, while they may seek the best solution, normally settle for much less, because the decisions they confront typically demand greater information, time, processing capabilities than they possess. They settle for “bounded rationality or limited rationality in decisions. *The Administrative model holds that managers: (i) Have incomplete and imperfect information, (ii) Are constrained by bounded rationality, and (iii) Tend to satisfies when making decisions. As a matter of fact, the classical and administrative models paint quite different pictures of decision making. The classical model is prescriptive: it explains how managers can at least attempt to be more rational and logical in their approach to decisions.
  129. 129. The administrative model can be used by managers to develop a better understanding of their inherent biases and limitation.
  130. 130. *3. Retrospective decision model (implicit favourite model): *This decision-making model focuses on how decision-makers attempt to rationalize their choices after they have been made and try to justify their decisions. This model has been developed by Per Soelberg. He made an observation regarding the job choice processes of graduating business students and noted that, in many cases, the students identified implicit favorites (i.e. the alternative they wanted) very early in the recruiting and choice process. However, students continued their search for additional alternatives and quickly selected the best alternative. *The total process is designed to justify, through the guise of scientific rigor, a decision that has already been made intuitively. By this means, the individual becomes convinced that he or she is acting rationally and taking a logical, reasoned decision on an important topic.
  131. 131. MIS-KMBN-208- UNIT-III- Introduction to Database Management System
  132. 132. MIS-KMBN-208-UNIT-III-Introduction to Database Management System 01 Introduction to Database Management System 11 Challenges of data management 02 Types of DBMS 12 Data independence 03 Fields, Records, Table, View, Reports and Queries 13 Data redundancy 04 Data warehouse 14 Data consistency 05 Characteristics of Data warehouse 15 Data administration. 06 Uses of Data warehouse 16 Database Management System (Lab): 07 Data mining - Characteristics & uses of Data warehouse 1 Basics of SQL and running queries 08 Techniques of Data Mining 2 Creation of Table,
  133. 133. .
  134. 134. .
  135. 135. .
  136. 136. Introduction to Database Management System: Before Study the Database What is Database Management Systems (DBMS)?:- *Database Management Systems (DBMS) refer to the technology solution used to optimize and manage the storage and retrieval of data from databases. DBMS offers a systematic approach to manage databases via an interface for users as well as workloads accessing the databases via software or apps. *OR- *Database Management System (DBMS) is a collection of programs that enable its users to access databases, manipulate data, report, and represent data. It also helps to control access to the database. Database Management Systems are not a new concept and, as such, had been first implemented in the 1960s.
  137. 137. Function of DBMS: 1.Defining database schema: it must give facility for defining the database structure also specifies access rights to authorized users. 2.2. Manipulation of the database: The DBMS must have functions like insertion of record into database updating of data, deletion of data, retrieval of data 3.3. Sharing of database: The DBMS must share data items for multiple users by maintaining consistency of data. 4.4. Protection of database: It must protect the database against unauthorized users. 5.5. Database recovery: If for any reason the system fails DBMS must facilitate data base recovery.
  138. 138. *Components of DBMS:- *In order to facilitate these functions, DBMS has the following key components: *Software. DBMS is primarily a software system that can be considered as a management console or an interface to interact with and manage databases. The interfacing also spreads across real- world physical systems that contribute data to the backend databases. The OS, networking software, and the hardware infrastructure is involved in creating, accessing, managing, and processing the databases. *Data. DBMS contains operational data, access to database records and metadata as a resource to perform the necessary functionality. The data may include files with such as index files, administrative information, and data dictionaries used to represent data flows, ownership, structure, and relationships to other records or objects. *Procedures. While not a part of the DBMS software, procedures can be considered as instructions on using DBMS. The documented guidelines assist users in designing, modifying, managing, and processing databases.
  139. 139. Database languages Query processor.
  140. 140. *Runtime database manager. A centralized management component of DBMS that handles functionality associated with runtime data, which is commonly used for context-based database access. This component checks for user authorization to request the query; processes the approved queries; devises an optimal strategy for query execution; supports concurrency so that multiple users can simultaneously work on same databases; and ensures integrity of data recorded into the databases. *Database manager. Unlike the runtime database manager that handles queries and data at runtime, the database manager performs DBMS functionality associated with the data within databases. Database manager allows a set of commands to perform different DBMS operations that include creating, deleting, backup, restoring, cloning, and other database maintenance tasks. The database manager may also be used to update the database with patches from vendors.
  141. 141. * Database engine. Reporting.
  142. 142. Benefits of DBMS:- *DBMS was designed to solve the fundamental problems associated with storing, managing, accessing, securing, and auditing data in traditional file systems. *Traditional database applications were developed on top of the databases, which led to challenges such as data redundancy, isolation, integrity constraints, and difficulty managing data access. A layer of abstraction was required between users or apps and the databases at a physical and logical level. *Introducing DBMS software to manage databases results in the following benefits: *Data security. DBMS allows organizations to enforce policies that enable compliance and security. The databases are available for appropriate users according to organizational policies. The DBMS system is also responsible to maintain optimum performance of querying operations while ensuring the validity, security and consistency of data items updated to a database.
  143. 143. *Data sharing. Fast and efficient collaboration between users. *Data access and auditing. Controlled access to databases. Logging associated access activities allows organizations to audit for security and compliance. *Data integration. Instead of operating island of database resources, a single interface is used to manage databases with logical and physical relationships. *Abstraction and independence. Organizations can change the physical schema of database systems without necessitating changes to the logical schema that govern database relationships. As a result, organizations can upgrade storage and scale the infrastructure without impacting database operations. Similarly, changes to the logical schema can be applied without altering the apps and services that access the databases. *Uniform management and administration. A single console interface to perform basic administrative tasks makes the job easier for database administrator and IT users.
  144. 144. What is a Database? :-Before we learn about a database, let us understand What is Data?:- Data is any sort of information which is stored in computer memory. Or-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. Or-Data, in the context of databases, refers to all the single items that are stored in a database, either individually or as a set. Data in a database is primarily stored in database tables, which are organized into columns that dictate the data types stored therein. So, if the “Customers” table has a column titled “Telephone Number,” whose data type is defined as “Number,” then only numerals can be stored in that column.
  145. 145. OR-In simple words, Data is collection data can be facts related to any object in consideration. For example, your name, age, height, weight, etc. are some data related to you. A picture, image, file, pdf, etc. can also be considered data. OR-Data is a raw and unorganized fact that is required to be processed to make it meaningful. Data can be simple at the same time unorganized unless it is organized. Generally, data comprises facts, observations, perceptions, numbers, characters, symbols, images, etc.
  146. 146. What is Database: Database is a collection of inter-related data which helps in efficient retrieval, insertion and deletion of data from database and organizes the data in the form of tables, views, schemas, reports etc. For Example, university database organizes the data about students, faculty, and admin staff etc. which helps in efficient retrieval, insertion and deletion of data from it. A database is a systematic collection of data. They support electronic storage and manipulation of data. Databases make data management easy. Example: An online telephone directory uses a database to store data of people, phone numbers, and other contact details. Your electricity service provider uses a database to manage billing, client-related issues, handle fault data, etc.
  147. 147. BASIC TERMINOLOGY IN DATABASE MANAGEMENT SYSTEM:- Basic Concepts: Data is organized in a data storage hierarchy of increasingly complex levels: bits, bytes (characters), fields, records, files, and databases. A character is a letter, number, or special character. A field consists of one or more characters (bytes). A record is a collection of related fields. A file is a collection of related records. A database is, as mentioned, an organized collection of integrated files. Important to data organization is the key field, a field used to uniquely identify a record so that it can be easily retrieved and processed. RDBMS:- A Relational Database management System(RDBMS) is a database management system based on relational model introduced by E.F Codd. In relational model, data is represented in terms of tuples(rows).
  148. 148. RDBMS is used to manage Relational database. Relational database is a collection of organized set of tables from which data can be accessed easily. Relational Database is most commonly used database. It consists of number of tables and each table has its own primary key. Table : In Relational database, a table is a collection of data elements organized in terms of rows and columns. A table is also considered as convenient representation of relations. But a table can have duplicate tuples while a true relation cannot have duplicate tuples. In a relational database, a tuple is one record (one row). Table is the most simplest form of data storage. Below is an example of Employee table.
  149. 149. 1. Data and Data Item:-Data are simply collection of facts and figures. Data are values or set of values. A data item refers to a single unit of values. Data items that are divided into sub items are group items; those that are not are called elementary items. For example, A student’s name may be divided into three- sub items – [first name, middle name and last name] but the ID of a student would normally be treated as a single item.
  150. 150. In the above example ( ID, Age, Gender, First, Middle, Last, Street, Area ) are elementary data items, whereas (Name, Address ) are group data items. Data Type:- Data type is a classification identifying one of various types of data, such as floating-point, integer, or Boolean, that determines the possible values for that type; the operations that can be done on values of that type; and the way values of that type can be stored.
  151. 151. *Record : *A single entry in a table is called a Record or Row. A Record in a table represents set of related data. For example, the above Employee table has 4 records. *Collection of related data items is known as record. The elements of records are usually called fields or members. Records are distinguished from arrays by the fact that their number of fields is typically fixed, each field has a name, and that each field may have a different type. *Following is an example of single record. 1 Adam 34 13000 Field :- *A table consists of several records(row), each record can be broken into several smaller entities known as Fields. The above Employee table consist of four fields, ID, Name, Age and Salary. *File:- *File is a collection of records of the entities in a given entity set. *For example, file containing records of students of a particular class.
  152. 152. * Entity:-An entity is something that has certain attributes or properties which may be assigned some values. The values themselves may be either numeric or non-numeric. Example: Entity Set:- *An entity set is a group of or set of similar entities. For example, employees of an organization, students of a class etc. Each attribute of an entity set has a range of values, the set of all possible values that could be assigned to the particular attribute. *The term “information” is sometimes used for data with given attributes, of, in other words meaningful or processed data.
  153. 153. Field:- *A field is a single elementary unit of information representing an attribute of an entity, a record is the collection of field values of a given entity and a file is the collection of records of the entities in a given entity set. Key:- *A key is one or more field(s) in a record that take(s) unique values and can be used to distinguish one record from the others. Column :- *In Relational table, a column is a set of value of a particular type. The term Attribute is also used to represent a column. For example, in Employee table, Name is a column that represent names of employee. *Name *Adam *Alex
  154. 154. Types of Databases *Here are some popular types of databases. *1. Distributed databases: *A distributed database is a type of database that has contributions from the common database and information captured by local computers. In this type of database system, the data is not in one place and is distributed at various organizations. *2. Relational databases: *This type of database defines database relationships in the form of tables. It is also called Relational DBMS, which is the most popular DBMS type in the market. Database example of the RDBMS system include MySQL, Oracle, and Microsoft SQL Server database. *3. Centralized database: *It is a centralized location, and users from different backgrounds can access this data. This type of computers databases store application procedures that help users access the data even from a remote location.
  155. 155. *4. Open-source databases: *This kind of database stored information related to operations. It is mainly used in the field of marketing, employee relations, customer service, of databases. *5. Cloud databases: *A cloud database is a database which is optimized or built for such a virtualized environment. There are so many advantages of a cloud database, some of which can pay for storage capacity and bandwidth. It also offers scalability on-demand, along with high availability. *6. Data warehouses: *Data Warehouse is to facilitate a single version of truth for a company for decision making and forecasting. A Data warehouse is an information system that contains historical and commutative data from single or multiple sources. Data Warehouse concept simplifies the reporting and analysis process of the organization.
  156. 156. *7. NoSQL databases: *NoSQL database is used for large sets of distributed data. There are a few big data performance problems that are effectively handled by relational databases. This type of computers database is very efficient in analyzing large-size unstructured data. *8. Graph databases: *A graph-oriented database uses graph theory to store, map, and query relationships. These kinds of computers databases are mostly used for analyzing interconnections. For example, an organization can use a graph database to mine data about customers from social media. *9. OLTP databases: *OLTP another database type which able to perform fast query processing and maintaining data integrity in multi-access environments.
  157. 157. *10. Personal database: *A personal database is used to store data stored on personal computers that are smaller and easily manageable. The data is mostly used by the same department of the company and is accessed by a small group of people. *11. Multimodal database: *The multimodal database is a type of data processing platform that supports multiple data models that define how the certain knowledge and information in a database should be organized and arranged. *12. Document/JSON database: *In a document-oriented database, the data is kept in document collections, usually using the XML, JSON, BSON formats. One record can store as much data as you want, in any data type (or types) you prefer. *13. Network DBMS: *This type of DBMS supports many-to-many relations. It usually results in complex database structures. RDM Server is an example of database management system that implements the network model.
  158. 158. Introduction to Data Warehousing: Definition, Concept, and Techniques In computing, a data warehouse, also known as an enterprise data warehouse, is a system used for reporting and data analysis and is considered a core component of business intelligence. DWs are central repositories of integrated data from one or more disparate source OR Data Warehousing may be defined as a collection of corporate information and data derived from operational systems and external data sources. A data warehouse is designed with the purpose of inducing business decisions by allowing data consolidation, analysis, and reporting at different aggregate levels.
  159. 159. *Data warehouse system is also known by the following name: *Decision Support System (DSS) *Executive Information System *Management Information System *Business Intelligence Solution *Analytic Application *Data Warehouse
  160. 160. *A Data Warehouse works as a central repository where information arrives from one or more data sources. *Data flows into a data warehouse from the transactional system and other relational databases. *Data may be: *Structured *Semi-structured *Unstructured data The data is processed, transformed, and ingested so that users can access the processed data in the Data Warehouse through Business Intelligence tools, SQL clients, and spreadsheets. A data warehouse merges information coming from different sources into one comprehensive database.
  161. 161. * Data Warehousing Types:- *The three main types of Data Warehouses are: 1. Enterprise Data Warehouse 2. Operational Data Store 3. Data Mart *1. Enterprise Data Warehouse (EDW): Enterprise Data Warehouse (EDW) is a centralized warehouse. It provides decision support service across the enterprise. It offers a unified approach for organizing and representing data. It also provide the ability to classify data according to the subject and give access according to those divisions. *2. Operational Data Store: Operational Data Store, which is also called ODS, are nothing but data store required when neither Data warehouse nor OLTP systems support organizations reporting needs. In ODS, Data warehouse is refreshed in real time. Hence, it is widely preferred for routine activities like storing records of the Employees. *3. Data Mart: A data mart is a subset of the data warehouse. It specially designed for a particular line of business, such as sales, finance, sales or finance. In an independent data mart, data can collect directly from sources.
  162. 162. *Key Characteristics of a Data Warehouse:- *The key characteristics of a data warehouse are as follows: *Data is structured for simplicity of access and high-speed query performance. *End users are time-sensitive and desire speed-of-thought response times. *Large amounts of historical data are used. *Queries often retrieve large amounts of data, perhaps many thousands of rows. *Both predefined and ad hoc queries are common. *The data load involves multiple sources and transformations. *In general, fast query performance with high data throughput is the key to a successful data warehouse.
  163. 163. Characteristics of Data warehouse:- Data warehouse can be controlled when the user has a shared way of explaining the trends that are introduced as specific subject. Below are major characteristics of data warehouse: 1. Subject-oriented 2. Integrated 3. Time-Variant 4. Non-Volatile
  164. 164. 1. Subject-oriented – A data warehouse is always a subject oriented as it delivers information about a theme instead of organization’s current operations. It can be achieved on specific theme. That means the data warehousing process is proposed to handle with a specific theme which is more defined. These themes can be sales, distributions, marketing etc. A data warehouse never put emphasis only current operations. Instead, it focuses on demonstrating and analysis of data to make various decision. It also delivers an easy and precise demonstration around particular theme by eliminating data which is not required to make the decisions. 2. Integrated – It is somewhere same as subject orientation which is made in a reliable format. Integration means founding a shared entity to scale the all similar data from the different databases. The data also required to be resided into various data warehouse in shared and generally granted manner. A data warehouse is built by integrating data from various sources of data such that a mainframe and a relational database. In addition, it must have reliable naming conventions, format and codes. Integration of data warehouse benefits in effective analysis of data. Reliability in naming conventions, column scaling, encoding structure etc. should be confirmed. Integration of data warehouse handles various subject related warehouse.