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Mis student version 2013

  1. 1. MIS EssentialsDr Sharad L. JoshiProfessorVishwakarma Institute of Management,Pune
  2. 2. Management Information Systems
  3. 3. What is MIS? Study of Information Systems focusing on their usein Business and Management. Information is defined as Data converted intoa form which is meaningful and useful for theend-user. MIS combines the theoretical work of computerscience, management science and operationsresearch with a practical orientation towarddeveloping system solutions to real life problems andmanaging information technology resources.
  4. 4. What is an InformationSystem? An organized combination of… People Hardware and software Communication networks Data resources Policies and procedures This system… Stores, retrieves, transforms, and disseminatesinformation in an organization1-4
  5. 5. Types of systems Transaction Processing Systems (Dealing with day-to-day events and actions - Financial Transactions,Student Attendance, Phonecalls, Train Reservation) Office Automation Systems (Word, Excel) Knowledge Work Systems(Tally, PowerPoint, CAD) Management Info. Systems (Based on TPS – StudentAbsenteeism Report, Product-wise Sales, Slowmoving items report, Customer Outstandings Report ) Decision Support Systems (Production Scheduling,Data Mining supported analytics) Executive Support Systems (Dashboards)
  6. 6. What Should Business Professionals Know aboutInformation Technology?1-6
  7. 7. Fundamental Roles ofInformation Systems in Business1-7
  8. 8. Range of Information Systems1-8
  9. 9. Operations Support Systems What do they do? Efficiently process business transactions Control industrial processes Support communications andcollaboration Update corporate databases1-9
  10. 10. Types of Operations SupportSystems Transaction Processing Systems Record and process business transactions Examples: sales processing, inventory systems,accounting systems Process Control Systems Monitor and control physical processes Example: using sensors to monitor chemical processes ina petroleum refinery Enterprise Collaboration Systems Enhance team and workgroup communication Examples: email, video conferencing1-10
  11. 11. Management Support Systems What do they do? Provide information and support foreffective decision making by managers Management information systems Decision support systems Executive information systems1-11
  12. 12. Types of Management SupportSystems Management Information Systems (MIS) Reports and displays Example: daily sales analysis reports Decision Support Systems (DSS) Interactive and ad hoc support Example: a what-if analysis to determine where tospend advertising budget Executive Information Systems (EIS) Critical information for executives and managers Example: easy access to actions of competitors1-12
  13. 13. Other Information Systems Strategic Information Systems Help get a strategic advantage over competitor Examples: shipment tracking, e-commerceWeb systems Functional Business Systems Focus on operational and managerialapplications of basic business functions Examples: accounting, finance, or marketing1-13
  14. 14. M.I.S. Model – applicable for all types ofSystemsInformationHerbert Simon Modelof Decision MakingDataMonitoring/FeedbackInformation is Data converted into a form which is meaningful anduseful for the end-user.Processing LogicComputersHuman BeingsDatabaseIntelligence Design ChoiceDecision ImplementationPerformance
  15. 15. Salient Features of ModernMIS Use of Web based GUI’s for acquiring and displayingdata Increasingly faster SQL processors and searchengines to access / explore data Use of graphics and animation in GUI’s Use of multi-layer architecture to serve large numberof users Component based software engineering Wide range of software products / packages Use of advanced mining/ analytical tools
  16. 16. Contemporary Approaches toMIS1. Technical Approach – Mathematical and Normative,emphasizing Computer Science, Management Scienceand Operations Research.2. Behavioral Approach – Based more on psychology,sociology, political science and organizational behavior.3. Socio-Technical Approach – Combines Technical aswell as behavioral perspectives so as to optimizeperformance of Information Systems. This approach haswider acceptance among practitioners.
  17. 17. Range of Careers in Information Technology1-17
  18. 18.  Technology is no longer an afterthought in business strategy,but the cause and driver IT can change the way businesses compete A strategic information system is any information systemthat uses IT to help an organization… Gain a competitive advantage Reduce a competitive disadvantage Or meet other strategic enterprise objectivesStrategic IT2-18
  19. 19. INFORMATION AS A STRATEGICRESOURCEInformation Technology, as a strategic resource, will help in gainingcompetitive advantage in any of the following ways. Developing new products and services ( ATM’s in Banks) Developing systems to focus on market niches ( e Learning basedlanguage teaching) Linking with Customers and Suppliers ( thru Extranet) Inter–organizational Systems (Using Collaborative tools) Systems to lower costs (Wastage Control Systems) Leveraging Technology to add value in a value chain (Any ofInbound Logistics, Operations, Outbound Logistics, Marketing, Salesand Service)
  20. 20. Michael Porter on CompetitiveAdvantage Sustainable competitive advantage is achievedthrough either or combination of Cost Leadership,Differentiation and Focus. Specific activities through which a company cancreate competitive advantage are Inbound Logistics,Operations, Outbound Logistics, Marketing & Salesand Service Information , used strategically, should assist inachieving superior performance in any of the areasstated above, creating competitive advantage.
  21. 21. How to gain competitiveadvantage?I.T. changes the context, creating new opportunities and new threats.Competitive advantage, depends on how well, and how effectively anorganization adapts to forces of change. Explore possibility of re-engineering existing business using IT (likebanks and newspapers) Use information to locate niches, new market segments - geographical,demographical, social etc – use Data Mining Change structure – e.g. Decentralized to Centralized ( e.g. BOLT incase of shares) or vice versa Use IT to add value – Better service, less mistakes and earn betterprices Increase efficiency, reduce costs, compete on lower price Enter new markets otherwise inaccessible ( thru eServices) e.g. CallCenter Standardize, Improve control, expand business the way MNC’s do
  22. 22. I.T. and organizational change I.T. changes the organizations, by reducing levels inhierarchy, restructuring flow of work, changingproducts/ processes, making decisions data-centric(rather than judgmental) and making knowledgemore important than seniority. However, as observed by Levitt, computers alonecannot change the organization. For that to happen,People (thru training) , Tasks (i.e. what to do -withdrawal of money), Processes (how to do - usingATM Card and Password) and Technology (CBS,ATM) have all to change simultaneously.
  24. 24. MODELS OF DECISION MAKING Rational (Decision based on reason and logic) Bureaucratic ( Decision made in a defined frameworkof rules and regulations) Political (Decision based on relative equations ofpower of leading players) Default (Decision occurring by chance and randominteractions between interested parties; there is noclear direction)
  25. 25. Examples of decisions underdifferent model(s) The cases of known criminals drag on in law courts(since legal formalities have to be followed) -Bureaucratic. Finance Ministry announces deficit this year will berestricted to 4.8% - Rational Minimum number of gas cylinders have been raisedfrom 6 to 9 under public pressure - Political Decision on independent Telangana state isindefinitely delayed. - Default
  26. 26. Bureaucratic Model Bureaucracy is system of administration distinguishedby (1) clear hierarchy of authority (2) rigid divisionof labour, (3) written and inflexible rules, regulationand procedures and (4) impersonal relationships Bureaucratic Model of decision making is based ondecisions made in the framework of bureaucracy.
  27. 27. Classical (Rational) Model ofDecision Making Classical or Economic Model is a NormativeModel (i.e. one stating the norm), based onthe following Assumptions. All alternatives for decision making areknown. The decision maker seeks to maximize profitor utility, where profit motive is not relevant. The decision maker is completely sensitive todifference between utilities, where relevant.
  28. 28. Administrative Model of Decision Making(Can be also called satisficing or principleof bounded rationality) Administrative Model is a Descriptive Model based onthe assumptions, that the Decision Maker - Does not know all alternatives for decision making. Makes a limited search to discover a few satisfactoryalternatives. Makes a Decision which satisfies his or heraspirational level.This model is also called satisficing – a combination ofsatisfy and suffice or satisfy and sacrifice.
  29. 29. Herbert Simon Model ofDecision Making Intelligence phase involves scanning social, competitive andorganizational environment and understanding/ identifying theproblem Design phase involves generating alternatives to solve theproblem and evaluating each of the alternatives qualitativelyand quantitatively. Choice phase involves ranking the alternatives based on avariety of criteria and choosing the most suitable among them. Implementation involves putting the decision into action,feedback on its outcomes and necessary corrective actionConsider purchase/ leasing of a house as a decision tounderstand the phases stated.
  30. 30. Role of Information Systems inphases of Herbert Simon Model Intelligence ( Obtaining Information,identifying problems, based on exceptionreporting) Design ( Locating alternatives, Analyzingthem using DSS and analytical tools) Choice ( None) Implementation ( Disseminating informationto facilitate implementation)
  31. 31. MIS and Herbert Simon Model for Recovery ofLoans (A case study) Recovery of Loans has been a problem which Apex Bank isrequired to address. The bank’s portfolio of Retail Loans inWestern Zone is made up of about 70000 accounts. The bank has immediate plans to focus on recovery of thoseAuto Loans which have an outstanding figure of > 5 lakhs each,and which are disbursed from Mumbai, Pune, Nagpur andAurangabad. After obtaining the list, the Bank would discuss best method torecover the loans with its legal department and work out amethod for loan recovery. This will be implemented thru 30different branches over a period of 6 months. If successful, thebank has plans to extend the method to other categories ofloans as well. Model the situation stated thru the MIS Model. Write a sampleentry for an outstanding loan in Excel Format. Show a samplereport for Aurangabad.
  32. 32. M.I.S. Model for Decision Implementation.InformationHerbert Simon Modelof Decision MakingDataMonitoring/FeedbackThe three bullet points in the case represent, respectively, Data,Information and Decision Making.Processing LogicComputersHuman BeingsDatabaseIntelligence Design ChoiceDecision ImplementationPerformance
  33. 33. MIS Report Formats Apex Bank Excel Format for Outstanding Loan Format for MIS Report, Aurangabad AreaAcctNoName LoanTypeArea BranchAmount DueDate67543 SK Developers Ind Nag 0317 5657000 23/07/1212125 Suresh Shinde Auto Aur 0621 550000 11/12/12Area Aurangabad Type AutoAcctNo Name Amount DueDate Branch34521 SK Agarwal 750000 12/11/12 061912125 Suresh Shinde 550000 11/12/12 0621
  34. 34. Attributes of Information TimelyAvailability Currency(BeingCurrent) ProperFrequency Relevance Completeness Consistency Accuracy Reliability Verifiability Clarity Comprehensibilty Brevity CostEffectiveness
  35. 35. Types of Information Strategic Level – Unstructured, External, Used forLong Term Planning (Emerging Technologies,Competition, Socio Political Changes) Tactical Level – Semi Structured, Largely Internal,Used for Medium/ Short Term Planning (CustomerPerception, Competitors’ Actions, Pricing) Operational Level – Structured, Internal, used forShort Term Planning (Specific Activity, SpecificProducts, Small Group Coordination)Information can also be typed (classified) as planninginformation and control information.
  36. 36.  Exercises in developingManagement Information Systemsfrom basic data source
  37. 37. Student Mark sheetInstitute 0317 Vishwakarma Institute ofManagementPRN 1517202 Name Akhilesh KumarCode Description Int. Ext. Total101 O.B and PPM 18 38 56102 Management Accounting 19 21 40103 Managerial Economics 23 45 68104 S.Q.M. 19 37 56105 Legal Aspects of Business 21 35 56106 Basics of Marketing 22 40 62107 Information Technology 43 43108 Managerial Communication 42 42Total 423Pass/Fail/ATKT ATKT
  38. 38. Reports (Information)emerging fromstudent mark sheet (Data)1. Institute wise pass-fail, total numbers and percentage2. Institute wise List of Toppers, Name, Marks, Percentage3. Institute wise subject wise pass-fail, numbers and percentage4. Subject wise Institute wise pass-fail, numbers and percentage;also overall average. Highlight Institutes below the average.5. Subject wise Institute wise pass-fail, numbers and percentagefor external marks only6. Institute wise First, Second, Pass Class Numbers and %7. Comparison of University’s percentages with percentages initems 1,3,5 and 6 above.
  39. 39. Invoice Format for Drug WholesalerDeepak Agency, WholesalersDate &Time15/12/2012 17:34:44 Invoice No 5687CustomerNameRahul MedicalsAddress 77, Chintamani Nagar, Bibwewadi,Pune 411037Sr No Description Qty Rate Value1 Crocin 50 10.50 525.002 Novamox 20 54.00 1080.003 Colgate, 200 gms 10 38.00 380.004 Good Night Mats 10 53.00 530.005Total 2515.00
  40. 40. Data Formats for Excel Excel Format for Invoice Excel Format for ProductInv No Date Time CustNoArea Tot Value5687 15/12/2013 17:34:44 R035 411037 2515.00Inv No Sr No Prod Code Qty Rate Value5687 1 C005 50 10.50 525.005687 2 N002 20 54.00 1080.005687 3 C008 10 38.00 380.005687 4 G032 10 53.00 530.00
  41. 41. MIS Reports emerging fromInvoice1. Product wise sale for a given period (Quantity, Value)2. Customer wise sale for a given period3. Top 10/20 Customers4. Top 10/20 Products5. Customer wise Product wise sale for major customers, for agiven period6. Selling pattern Date/ Daywise7. Area wise sale (by Pin Code)8. Area wise top products9. Area wise top customers10. Sale by time slots during the day in a given period
  42. 42. RDBMS example related to Railway Reservation FormForm No : 3415678 Date of the Journey: 18/03/2012Train No : 2567 Train Name: Jhelum ExpressFrom : Pune To: AgraSeats / Berths : Berths No: 3 Class: 2ACSr Passenger Sex Age Compt Seat/No Name No Berth No1 B R Rao M 57 S2 342 Surekha Rao F 54 S2 353 Sunil Rao M 30 S2 36
  43. 43. Reports resulting from Datacontained in Reservation Form No of passengers travelling on various trains Region wise Month wise Top 10 destinations in India Age Distribution of passengers Percentage of Senior Citizens No of trains reaching given destinations Trains having low occupancy
  45. 45. IT Capabilities and their Organizational ImpactCapability Organizational ImpactTransactional Organization can handle I.T. applications involving transactionprocessing – Banking, Insurance, Share TradingGeographical Organization can operate over a wider geographical area, multistate, multi nationAutomational Organization can undertake applications involving automation onshop-floor, in office. It can handle complexity better.Analytical Organization can draw analytical inferences e.g. Data MiningInformational Organization can effectively implement MIS; benefit therefromOperational Organization can make efficient use of computer technology,accomplish more tasks than othersKnowledge Mgt Organization can convert information into knowledge and use itTracking Organization may have better control over flow of information,more secure operationsConnectivity Organization can connect end users efficiently, hence can offergood CRM, use Intranet and Extranet effectively
  46. 46. Telecommunications-Based Services6-46
  47. 47. Telecommunications Network Components-I Terminals Any input/output device that uses networksto transmit or receive data Telecommunications processors Devices that support data transmission, reception Telecommunications channels Media over which data are transmitted, received Computers All sizes and types6-47
  48. 48. Telecommunications Network Components-II Telecommunications control software Controls telecommunications activities Manages the functions of telecommunications networks Includes network management programs ofall kinds, Telecommunications monitors (mainframes) Network operating systems (network servers) Web browsers (microcomputers)6-48
  49. 49. Network Components6-49
  50. 50. Types of CommunicationsNetworks Primary types of communicationsnetworks Wide Area Local Area Virtual Private Client/Server Peer-to-peer6-50
  51. 51. Network Topologies Topology The structure of a network Star Network Ties end user computers to a central computer Ring Network Ties local computer processors together in aring on a relatively equal basis Bus Network Local processors share the samecommunications channel6-51
  52. 52. Topologies Diagram6-52
  53. 53. Star Topology Advantages More secure Failure of one cable does not affect thenetwork Easy to add nodes Disadvantages Requires a central computer Requires more cable, expensive
  54. 54. Ring Toplogy Advantages Data flows in one direction, hence enableshigh speed No dependence on a Central Computer Disadvantages Failure of one node affects the otherconnected nodes Difficult to add nodes
  55. 55. Bus Topology Advantages Easy to add and remove nodes Requires shorter cable, less expensive Disadvantages Failure in central line affects the entire network All data flows thru the same route; higher datavolumes slows down network.Bus and Ring topologies work with a ‘token’ – thesending node sends the token, receiving noderecognizes and accepts.
  56. 56. What is I.T.E.S. ? Information Technology Enabled Service(ITES) is defined as business processes andservices offered from a remote location usinginformation technology throughtelecommunication network. Business Process Outsourcing and CallCenters are two commonly known examples.
  57. 57. ITES include the following. Back office operations Call Centers Content Development / Animation Data Processing Engineering and Design Geographic Information System Services Human Resource Services Insurance Claim Processing
  58. 58. ITES also includes thefollowing Legal Databases Medical Transcription Payroll Remote Maintenance Revenue Accounting Support Centers Web site services
  59. 59. Geographical InformationSystems Geographic Information System (GIS) is a system designed tocapture, store, manipulate, analyze, manage, and present alltypes of geographical data. GIS is the merging of cartography, statistical analysis, anddatabase technology. GIS involves digitization of elements (points, lines and polygons– shapes and areas) that form geographical i.e. spatial, images.These form geographical database which is manipulated usingstatistical and cartographic techniques. Some of the important uses of GIS are Information Analysis,Automobile Navigation, Location of units of operation (office,restaurant, hospital etc), Map Making (Cartography), Urban andRegional panning, Transportation and Logistics.
  60. 60. Some uses of GIS1.Emergency Services – Combating Fire and Floods2. Environmental modeling and monitoring (e.g.monitoring forest cover)3. Business – Site Location, Delivery Systems (e.g.planning logistics)4. Industry – Transportation, Communication, Mining,Pipelines, Healthcare5. Government – Local, State, National level planning,Military Operations
  61. 61. Example of GIS,indicating influenceof political partiesin Pune MunicipalCorporationElections. Thegeographicalobjects and thedata is linked thrucomputer software.The geographicalform ofpresentationprovides new anddifferent insights
  63. 63. What are Relational Data BaseManagement Systems (RDBMS)? RDBMS is a system of inter-related tables, which are used tostore the data. The tables are connected to each other thrucommon fields. The data stored in the tables is accessed thruSQL (Structured Query Language). DML (Data Manipulation Language), Data Definition Language(DDL) and Control Statements are components of SQL. A RDBMS a table, titled Train Table along with sample entriesand a SQL query follows. Train Table is ‘related’ to ReservationForm Table, which also contains Train No. Despite simple table design, RDBMS is capable of handlingmillions of records, fast and accurately.
  64. 64. Invoice Format for Drug WholesalerDeepak Agency, WholesalersDate &Time15/12/2012 17:34:44 Invoice No 5687CustomerNameRahul MedicalsAddress 77, Chintamani Nagar, Bibwewadi,Pune 411037Sr No Description Qty Rate Value1 Crocin 50 10.50 525.002 Novamox 20 54.00 1080.003 Colgate, 200 gms 10 38.00 380.004 Good Night Mats 10 53.00 530.005Total 2515.00
  66. 66. Using RDBMS for obtaining informationfrom Data, SQL Example - 1 Purpose – Get customer list from Chichwad area Queryselect custno, custname, pincodefrom custmastwhere pincode = ‘411019’ Expected Reportcustno custname pincodeB024 Baba Medicals 411019D014 Deven Drug House 411019R012 Rahul Medico 411019
  67. 67. Using RDBMS for obtaining information fromData, SQL Example - 2 Purpose – Find total sale in November 2012 Queryselect sum (totamt)from invoice_headerwhere invdate between ’1/11/12’ and’1/30/12’ (i.e. inclusive) Result178956.78
  68. 68. Using RDBMS for obtaining information fromData, SQL Example - 3 Purpose – Get Product-wise sale for allinvoices Queryselect prodcode, prodname, sum(qty), sum(value)from invoice_detail, prodmastwhere invoice_detail.prodcode = prodmast.prodcodegroup by prodcodeorder by prodcode;(Answer in the following slide)
  69. 69. Example 3 - Expected ReportProdcode Prodname Qty ValueB005 Broncodil 97 3890C023 Crocin 5135 23675N005 Novamox 235 12675Total 3567450
  70. 70. RDBMS example related to Railway Reservation FormForm No : 3415678 Date of the Journey: 18/03/2012Train No : 2567 Train Name: Jhelum ExpressFrom : Pune To: AgraSeats / Berths : Berths No: 3 Class: 2ACSr Passenger Sex Age Compt Seat/No Name No Berth No1 B R Rao M 57 S2 342 Surekha Rao F 54 S2 353 Sunil Rao M 30 S2 36
  71. 71. DBMS Table Formats for Reservation SystemTrain_TableTrainno Number 4TrainName Char 30Fromstn Char 25Tostn Char 25Starttime Number 4Passenger_TableFormno Number 9Srno Number 1Name Char 30Sex Char 1Age Number 3Compt Char 5SBNo Number 3Form_TableFormno Number 9Date DateTrainno Number 4Fromstn Char 20Tostn Char 20Class Char 5S_B Char 1No_Passenger Number 1
  72. 72. Train_Table SampleEntriesTrainNo TrainName Fromstn Tostn StartTime2567Jhelum Express Pune Delhi 17302568Krishna Express Hyderabad Bhubaneshwar 19402569Udyan Express Bangalore Chennai 7303456Deccan Queen Pune Mumbai 715
  73. 73. Obtaining Information from RDBMSTables - SQL Example -1 Purpose – List trains between Pune and Delhi Queryselect TrainNo, TrainName, Starttimefrom Train_Tablewhere Fromstn = ‘Pune’ and Tostn = ‘Delhi’ ResultTrainNo TrainName StartTime2567 Jhelum Express 1730
  74. 74. Obtaining Information from RDBMSTables - SQL Example -2 Purpose – Get passenger list for train 2423,compt S7 and date = 23rd March 2012 Queryselect SBNo, Name, Sex, Agefrom Form_Table, Passenger_Tablewhere Form_Table.FormNo =Passenger_Table.FormNo andTrainNo = 2423 and Date = ’03/23/2012’ and Compt = ‘S7’
  75. 75. Data Warehouse Data Warehouse stores static data that has beenextracted from other databases in an organization DW is treated as central source of data that has beencleaned, transformed, and cataloged Data is used for data mining, analytical processing,analysis, research, decision support Data warehouses may be divided into data marts Data Marts are subsets of data that focus on specificaspects of a company such as a department – e.g.Marketing, or business process e.g. Quality Management5-75
  76. 76. ETL-Extract Transform Load ODS – Operational Data Store Staging Area – Intermediate AreaData Vault – Relevant Data from multiple sources ; cleaning is done in Data Marts
  77. 77. Use of multidimensional structurefor Storage and Analysis Variation of relational model Data elements are viewed as being incubes Popular for analytical databases thatsupport Online Analytical Processing(OLAP)5-77
  78. 78. Multidimensional Model5-78
  79. 79. Data Mining (currently called BusinessAnalytics / Business Intelligence) Data in data warehouses are analyzed toreveal hidden patterns and trends Market-basket analysis to identify newproduct bundles Find root cause of quality or manufacturingproblems Prevent customer attrition Acquire new customers Cross-sell to existing customers Profile customers with more accuracy5-79
  80. 80. The Business Analytics (BA) Field: An Overview
  81. 81. Comparison between Data Warehousing, DataMining and Databases Data Warehouses are similar to Databases in that both maintainand access tables – which may contain diverse data likenumbers, text, pictures, audio clips, video clips etc. Data Warehouse has better analysis capabilities (OLAP) whileDatabase has better transaction processing capabilities (OLTP).DB is ‘write-optimized’ ; DW is ‘read-optimized’ . DW is betterfor analytics. Note that DW and DM handle data in GB and TB. Data Mining is better designed for quantitative and statisticalanalysis, whereas DW creates and uses simpler analyses, relyingon qualitative interpretation. All these DB, DW and DM have 5 capabilities – Store, Maintain,Access, Analyze and Present the data.
  82. 82. Systems Analysis and Design
  83. 83. System Development LifeCycle – 5 Phases1. System Investigation2. System Analysis3. System Design4. System Implementation5. System MaintenanceEach of the phase is explained in slidesthat follow.
  84. 84. System Investigation(Outcome: Feasibility Study) Determine how to address businessopportunities and priorities Conduct a feasibility study to determinewhether a new or improved businesssystem is a feasible solution Develop a project management planand obtain management approval
  85. 85. System Analysis (Outcome :Functional Requirements) Analyze the information needs ofrelevant stakeholders (employees,customers, suppliers etc) Develop the functional requirements ofa system that can meet businesspriorities and needs of relevantstakeholders Develop logical model of current system(e.g. a flow diagram)
  86. 86. System Design (Outcome :System Specifications) Develop specifications for hardware,software, people, network and dataresources and the information productsthat will satisfy the functionalrequirements of the proposed businessinformation systems Develop logical models of the newsystem (e.g. flow diagram)
  87. 87. System Implementation(Outcome : Operational System) Acquire or develop hardware andsoftware Test the system and train the people tooperate and use it Convert to the new business system Manage the effects of system changeon end users
  88. 88. System Maintenance(Outcome : Improved System) Use a post implementation reviewprocess to monitor, evaluate andmodify the system as needed
  89. 89. Prototyping Prototyping is the rapid development andtesting of working models with a view toreduce time and effort in SystemDevelopment An interactive, iterative process used duringthe design phase Makes development faster and easier,especially when end user requirements arehard to define Has enlarged the role of businessstakeholders 12-89
  90. 90. Prototyping Life Cycle Identify an end user’s business requirements Develop Business Systems Prototypes usingdesign and development tools Revise the prototypes (repeatedly) to bettermeet end user’s requirement Use the accepted prototype to develop thebusiness system
  91. 91. System DevelopmentMethodologies Process Centered Methodologies Data Centered Methodologies Object Oriented Methodologies Structured Design Methodologies (focusing on SDLC) Rapid Application Development Methodologies Phased Development Methodologies Prototyping based methodologies Agile development MethodologiesNote: Refer MIS by Jayant Oak, Para 5.4 for detaileddescription.
  92. 92. Object-Oriented Structure An object consists of Data values describing the attributes of anentity Operations that can be performed on the data Encapsulation Combines data and operations Inheritance New objects can be created by replicatingsome or all of the characteristics of parentobjects5-92
  93. 93. Example of Object-Oriented StructureSource: Adapted from Ivar Jacobsen, Maria Ericsson, and Ageneta Jacobsen, The Object Advantage: Business ProcessReengineering with Object Technology (New York: ACM Press, 1995), p. 65.Copyright @ 1995, Association for Computing Machinery. By permission.5-93
  94. 94. Unified Modeling Language (UML) Object Oriented Systems use Unified ModelingLanguage to describe relationships andinteractions between objects. Object Oriented Programming uses a techniquecalled ‘event driven programming’. Use casediagrams describe the events and responses.For example, MouseClick is an event which callsfor a response.
  96. 96. Decision Support Systems(DSS), BusinessAnalytics and Business IntelligenceDecision Support Systems, in the past werebased on low volume of data, and utilizedspecial tools and models (like LinearProgramming, Operations Research) foranalysis. DSS has now been converted intoBusiness Intelligence. It uses vast amount ofdata and analyses it thru sophisticated datawarehousing and data mining tools..
  97. 97. Business Analytics (DSS) for Godrej HouseholdProducts – Sales Force Automation (SFA) SFA solution was implemented on ‘Tablet’ computing deviceswith a view to capture transactions related to orders, collectionand return of goods electronically and transmit them to thebilling system and returns databases. The tablet computer also displays information about saleshistory, schemes, promotions and achievement Vs. target ofsalesmen. It can even suggest an order to the salesman for aparticular outlet, based on its past record and current purchase. IBM XPD Desktop, located at the office, integrates data receivedthru tablet application with backend billing. The SFA solution utilizes IBM Business Analytics software.
  98. 98. DSS Vs MISManagement InformationSystemsDecision SupportSystemsDecisionsupportprovidedProviding information aboutthe performance of theorganizationProviding informationand techniques toanalyze specificproblemsInformationform andfrequencyPeriodic, exception,demand, and push reportsand responsesInteractive inquiries andresponsesInformationformatPrespecified, fixed format Ad hoc, flexible, andadaptable formatInformationprocessingmethodologyInformation produced byextraction and manipulationof business dataInformation produced byanalytical modeling ofbusiness data10-98
  99. 99. Components of DSS Model management software (MMS) Coordinates the use of models in the DSS Model base Provides decision makers with access to avariety of models Dialogue manager Allows decision makers to easily access andmanipulate the DSS
  100. 100. Database Model baseExternal databaseaccessAccess to theinternet, networks,and other computersystemsDialogue managerDBMS MMSExternaldatabases
  101. 101. Model Base Model Base Provides decision makers withaccess to a variety of modelsand assists them in decisionmaking Models Financial models Statistical analysis models Graphical models Project management models
  102. 102. Group Decision SupportSystem Group Decision Support System (GDSS) Contains most of the elements of DSS plussoftware to provide effective support ingroup decision-making settings
  103. 103. DatabasesModel base GDSS processor GDSS softwareDialoguemanagerExternal databaseaccessUsersAccess to the internetand corporate intranet,networks, and othercomputer systemExternaldatabases
  104. 104. Characteristics of a GDSS -I Special design Ease of use Flexibility Decision-making support Delphi approach (decision makers aregeographically dispersed) Brainstorming Group consensus Nominal group technique
  105. 105. Characteristics of a GDSS - II Anonymous input Reduction of negative group behaviour Parallel communication Automated record keeping Cost, control, complexity factors
  106. 106. Executive Support System Characteristics A specialized DSS thatincludes all the hardware,software, data, procedures,and people used to assistsenior-level executiveswithin the organizationBoard of directorsPresidentFunction areavice presidentsFunction areamanagers
  107. 107. Characteristics of ESS Tailored to individual executives Easy to use Drill down capabilities Support the need for external data Help with situations with high degree ofuncertainty Futures orientation (predictions, forecasting) Linked with value-added business processes
  108. 108. Capabilities of ESS Support for defining overall vision strategic planning strategic organizing and staffing strategic control crisis management
  109. 109. E (Executive/ Enterprise/Everybody’s) Information System E.I.S. started as ‘Executive Information System’,meant for senior executives but is currently used alsoat other levels where people need to take decisionsbased on latest and most relevant information. Ituses data analysis tools and presentation techniquessuch as ‘Executive Dashboards’ . Dashboards presentinformation related to Key Result Areas (KRA) or KeyPerformance Indicators (KPI) in a single screen.Capability to drill down from aggregate data tocomponents is an essential pre-requisite of EIS. Examples of dashboards follow.
  110. 110. Typical Dashboards.
  111. 111. Artificial Intelligence (AI) AI is a field of science and technology basedon Computer science Biology Psychology Linguistics Mathematics Engineering The goal is to develop computers that cansimulate the ability to think And see, hear, walk, talk, and feel as well10-112
  112. 112. Domains of Artificial Intelligence10-113
  113. 113. Expert Systems and ArtificialIntelligence Expert Systems try to incorporate experts’ knowledgeinto computer software so as to assist decisionmaking by non-experts (e.g. medical diagnosis, Taxplanning). The Expert Systems have ‘knowledge DataBase’ and ‘inference engine’ (i.e. logic) which is usedto draw inferences. Artificial Intelligence ventures into areas which hasalways required human intelligence. LanguageTranslation and Handwriting Recognition are twoexamples. AI uses algorithms similar to humanreasoning, so as to assist, if not to take decisions.
  115. 115. Management Issues in MIS (1) –Information Security and Control External Threats Thru Internet and Thru Remote Access Problems – Hacking, Identity Theft, data loss Firewalls offer a partial solution Internal Threats Password theft, Misuse of authorization, malware (viruses),physical theft of Hardware and Software Anti Virus Solutions, Access Reviews, Frequent Change ofpasswords, back-ups and Business Process Continuity planning,physical controls, maintaining a log of all system activities (audittrails) are the techniques used to combat the threat.Periodic Information Security Audit is advisable for both.
  116. 116. Security Policy Fundamentals1. Security Policy Document2. Organizational Security3. Asset Classification and Control4. People Issues5. Physical and Environmental Issues6. System and Infrastructure Management7. Access Control8. System Development and Maintenance9. Business Continuity Management10. Legal and Contractual Compliance
  117. 117. Management Issues in MIS (2) – SoftwareQuality Assurance Software quality assurance covers attributes such as reliability,efficiency and promised performance . In order to assure quality of software, 3 aspects need to beattended to.1. Creating a quality profile – Specifying qualitative andquantitative aspects of software ( such as number of problemsreported, number of updates supplied)2. Process control thru Requirements, Design, Coding and TestingChecklists , software engineering, Documentation etc.3. Obtaining third party certification from agencies such as ISOabout conformance to quality procedures.
  118. 118. Software Quality AssuranceDefined Conformance to explicitly statedfunctional and performancerequirements, explicitly documenteddevelopment standards, and implicitcharacteristics that are expected of allprofessionally developed software.
  119. 119. Software Quality Assurance -Overview What is Software Quality assurance(SQA)? Quality Concepts. Software Quality Assurance Activities. Software Reviews and their importance Statistical SQA. Software Reliability Software Testing
  120. 120. Components of SQA Software engineering technology Formal technical reviews that are appliedthroughout the software process A multi-tiered testing strategy Control of software documentation andchanges to it A procedure to assure compliance withsoftware development standards Measurement and reporting techniques
  121. 121. SQA Group Activities Participate in the development of the projects asper software process description Review software engineering activities to verifycompliance with the defined software process. Audit designated software work products to verifycompliance with those defined as part of thesoftware process. Ensure that deviations in software work and workproducts are documented and handled accordingto a document procedure Record any non-compliance and reports to seniormanagement.
  122. 122. Management Issues in MIS (3) – EthicalDimensions, Intellectual Property Rights, GlobalInformation Systems Ethical Aspects are mainly related to misuse of computertechnology for personal benefit, intentional manipulation ofdata, indulging in cybercrime, violating data privacy, eveninsensitive automation. Intellectual Property Rights concern software and hardwarepiracy, violation of patents, breach of trade marks, breach ofconfidence relating to information held in trust. Managing Global Information Systems involve dealing withcultural, political and economic challenges posed by differentcountries, developing appropriate business and IT Strategies forthe global marketplace and developing a portfolio ofapplications to support them.