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Powerpoint Presentation on A subject of MBA course namely Management Information System.

Powerpoint Presentation on A subject of MBA course namely Management Information System.

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    M.I.S M.I.S Presentation Transcript

      • Introduction
      • to
      • Management
      • Information
      • System
      June 10, 2009 Course Developed by K.K.Nigam
    • June 10, 2009 Let us first try to understand W hat is Information System Course Developed by K.K.Nigam
    • June 10, 2009 Course Developed by K.K.Nigam Information System Information systems provide an organization with support for business operations, managerial decision making, and strategic advantage.
    • June 10, 2009 Course Developed by K.K.Nigam Information System This framework outlines the major areas of information systems knowledge needed by business end users.
    • June 10, 2009 Course Developed by K.K.Nigam Information System The components of an information system. All information systems use people, hardware, software, data, and network resources to perform input, processing, output, storage, and control activities that transform data resources into information products.
    • June 10, 2009 Course Developed by K.K.Nigam Information System Operations and management classifications of information systems. Note how this conceptual overview emphasizes the main purpose of information systems that support business operations and managerial decision making.
    • June 10, 2009 Introduction to MIS What is MIS? Course Developed by K.K.Nigam
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam An information collection and analysis system, that facilitates access to available information. It is designed/ developed for decision making at various levels in the organization. Definitions:
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam An MIS is a system using formalized procedures to provide management at all levels with appropriate information, based on data from internal and if required from external sources also, to enable them to make timely and effective decisions for planning, directing, and controlling the activities for which they are responsible.
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam A system designed by an organization to collect and report information which enables managers to plan, monitor, and evaluate the operations and the performance of the whole Organization. Definitions:
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam A computer system for an organization which collects and analyzes data from all departments, and is designed to provide an organization's management/staff with up-to-date information (such as financial reports, inventory, etc.) at any time.
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam Classification of MIS
    • June 10, 2009 There are various types of MIS. Mason and Swanson (1981) describe following categories of MIS: (1) Databank Information System (2) Predictive Information System (3) Decision-Making/taking Information System, and The classification is based on the level of support that the information system provides in the process of decision making. Introduction to MIS Course Developed by K.K.Nigam
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam Databank Information System. The purpose of this information system is to observe, classify, and store any item of data which might be potentially useful to the decision maker.
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Predictive Information System.
      • This system moves beyond pure data
      • collection to the determination of trends
      • over time.
          • Predictive information systems provide information
      • for drawing of inferences and predictions
      • that are relevant to decision making.
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam Decision-Making/Taking Information System. This system goes one step further in the process of decision making and incorporates the value system of the organization or its criteria for choosing among alternatives.
    • June 10, 2009 An extension of Decision making is Decision-Taking information systems. This is the outcome of Decision making and hence both complement each other. This is a decision system in which the information system and the decision maker are one and the same. Introduction to MIS Course Developed by K.K.Nigam
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam The choice of an appropriate MIS category primarily depends on the nature of the decisions it supports. While unstructured decisions may use lower MIS-category and the highly structured ones, such as production schedules in an industry, may use higher MIS-category .
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • There is another view of looking at MIS that is MIS may be classified by their level in the organisation, all of which enhance organisational decision making and provide competitive advantage.
      • Together they have the following function:
          • Support for Strategic Planning
          • Support for Management Control
          • Support for Operational Control
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Operational Level Systems
        • These support operational or junior staff
        • by keeping track of the daily transactions
        • and activities of the organisation.
      • Examples include a system to record sales or purchase of an item, payment/receipt. Joining or leaving an employee.
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Knowledge Level Systems
        • Purpose is to help the business integrate
        • new knowledge in to the organisations
        • work / systems .
        • Support knowledge workers - those
        • people who create, work with or
        • disseminate information
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Management Level Systems
        • Serve the monitoring, controlling, decision
        • making and administrative information to
        • Managers.
        • Provide both periodic and instant information/
        • reports to all concerned
        • Process data from the operational level systems
        • to produce business information relating to the
        • periodic trends in the business.
    • June 10, 2009
      • Types of MIS
        • Managers at different levels of an organisation
        • make different kinds of decisions - operational,
        • tactical and strategic
        • Kinds of information necessary to support their
        • decisions are also different
      • Accordingly, different types of information systems are designed to meet the various needs
      Introduction to MIS Course Developed by K.K.Nigam
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Types of Business Applications
          • Transaction Processing Systems (TPS)
          • Management Information Systems (MIS)
          • Decision Support systems (DSS)
          • Office Automation Systems (OAS)
          • Executive Support Systems (ESS)
    • June 10, 2009
      • Technical overview of IS
          • Needed for a full appreciation of the
          • business applications of IS
          • Hardware
          • Software
          • Telecommunication
          • Data Storage
      Introduction to MIS Course Developed by K.K.Nigam
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Characteristics of a Management Information System :
            • Fixed /Standard reports (Routine)
            • Adhoc Reports
            • Hard-copy or soft-copy reports
            • Uses internal data
            • User-developed reports
            • Users must request formal reports from IS
            • department
    • June 10, 2009 Strategic Advantage with MIS Introduction to MIS Course Developed by K.K.Nigam
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • The Functional Support Role:
      • The business processes and operations support function is the most basic. It involves collecting, recording, storing, and basic processing of data. Information systems support business processes and operations by:
        • Recording and storing sales data, purchase data,
        • FInance data, payroll data and other accounting data
        • Processing these accounting records into income
        • statements, balance sheets, ledgers, management reports,
        • and other forms of financial information
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Recording and storing inventory
      • data, work in process data,
      • equipment repair and maintenance
      • data, supply chain data, and other
      • production/operations records
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Processing these operations
      • records into production schedules,
      • production controllers, inventory
      • systems, and production
      • monitoring systems
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Recording and storing personnel data,
      • salary data, employment histories, and
      • other human resources records processing
      • these human resources records into
      • employee expense reports, and
      • performance based reports
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Recording and storing market data,
      • customer profiles, customer purchase
      • histories, marketing research data,
      • advertising data, and other marketing
      • records
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Processing these marketing records into
      • advertising elasticity reports, marketing
      • plans, and sales activity reports recording
      • and storing business intelligence data,
      • competitor analysis data, industry data,
      • corporate objectives, and other strategic
      • management records
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Processing these strategic
      • management records into industry
      • trends reports, market share
      • reports, mission statements, and
      • portfolio models etc.
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam
      • Use of all the above to implement,
      • control, and monitor plans, strategies,
      • tactics, new products, new business
      • models or new business ventures
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam The Decision Support Role: The business decision making support function goes one step further. It is an integral part of making decisions. It allows users to ask “What if . . . ?” questions : - What if we increase the price by 5%? ; - What if we increase price by 10%? ; - What if we decrease price by 5%? ; - What if we increase price by 10% now, then decrease it by 5% in three months?
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam It also allows users to deal with contingencies : If Inflation increases by 5% (instead of 2% as we are assuming), then what do we do? What do we do if we are faced with a strike or a new competitive threat?
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam
      • The most basic and most versatile business decision making tool is the Spreadsheet. Apart from this some more sophisticated programs are also available to facilitate statistical decision making easy. With the help of Spreadsheets or other such tools following may be dine easily:
          • - Sensitivity Analysis
          • - Risk Analysis
          • - Break Even Analysis
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam The Strategic Support Role: Information systems can support a company’s competitive positioning. Here are three levels of analysis: 1. The support to enable the company to minimise the cost wherever possible. It may also help the management to monitor the performance of various functions/processes that are happening in different areas of operations.
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam 2. It may also help organisation to take decisions on outsourcing . All successful companies have one or more business functions that they do better than the competition. These are called core competencies.
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam If a company’s Core Competency gives it a long term advantage in the marketplace, it is referred to as a sustainable competitive advantage. For a core competency to become a Sustainable Competitive Advantage it must be difficult to copy, unique, sustainable, superior to the competition.
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam Examples of company characteristics that could constitute a sustainable competitive advantage include: - Better/Superior Product Quality - Improved Distribution Contracts - Imprved Brand Equity - Improved Company reputation - Low Cost Production Techniques/Methodology - Can go for Patents and Copyrights The list of potential sustainable competitive advantage characteristics is very long.
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam 3. Information systems often support and help in having competitive advantages. The rapid change help in having timely and current information which is critical in a competitive environment.
    • June 10, 2009 Role of MIS Course Developed by K.K.Nigam Occasionally, the information system itself is the competitive advantage. One example is Wal-Mart. They used an Extranet to integrate their whole Supply Chain . Another example is Dell Computer . They used the internet to market custom assembled PC’s. Michael Dell is still benefitting from this low-cost promotion and distribution technique. Another examples are eBay, Amazon.com etc.
    • June 10, 2009 Introduction to MIS Course Developed by K.K.Nigam What is Systems Approach ?
    • June 10, 2009 Systems Approach to MIS Course Developed by K.K.Nigam
      • Think of a situation when there was no
      • approach or no systematic working.
      • Result –
              • - Projects used to collapse, fail
              • - Turn out to be costlier
              • - Adhocism prevailed
              • - Unorganized working
              • - No body takes the responsibility or
              • disowns responsibility
              • - Leads to no estimation or wrong
              • estimation
    • June 10, 2009 Course Developed by K.K.Nigam Effect of Systems Approach: Systems are well defined – The Project could be broken into various modules/sub-modules for better control and development. Separate teams may be created to deal with predefined module/tasks. PERT/CPM is an age old Project Management Technique. Systems Approach to MIS
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach does not deal only with Projects and events but also with relationship between them. Systems Approach to MIS
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach enables the organization to deploy technique to bring transparency to decision making processes - an important requirement when dealing with systems. Systems Approach to MIS
    • June 10, 2009 Course Developed by K.K.Nigam SA gives flexibility wherever required- This becomes necessary to manage the Project and get it going with the pace it is targeted . Systems Approach to MIS
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS The Style of Management functioning if required, may also be changed for the overall benefit of the Project/Event to get completed.
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS The Nature of Systems Approach
      • 1. Identifies connection between Objects and Events.
        • A systems approach involves placing as much emphasis on identifying and describing the connections between objects and events as on identifying and describing the objects and events themselves.
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS 2. System Effects relationships. It may be unidirectional or linked in chain. Systems are patterns of cause and effect relationships. These can be simple and unidirectional or they may be linked together in long chains. Any one factor can exert a control function (causing a change in another) and a dependent function (being changed by another) - this is called multi-factoriality .
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS Defining Systems There are a number of steps to go through when building a model of a system. The identification of the coherent elements of the system, and the definition of the principles of coherence. This can be quite difficult as some systems are organized on an ad hoc basis.
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS The identification of the control mechanisms by which the system maintains its coherence, and the value ranges within which these operate.
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS The marking of the system boundary. The system boundary defines the inputs and outputs to the system. The identification of any subsystems of the system, or supersystems of the system need to be identified
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS Systems Theory The Systems approach is essentially about defining the problem solving sequence. Problem definition. This involves defining the problem and what has to be done.
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS Choice of Objectives. This involves deciding what would be required to reach the objective, and formulating the measures of effectiveness which then form the basis for making comparisons between strategies.
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS Systems Synthesis. This involves identifying the various possible alternative strategies. Systems Analysis. This involves analysing and evaluating the various hypothetical systems in the light of the objectives.
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS Systems Selection. This means choosing the most promising alternative. System Development. This entails developing the chosen alternative up to the prototype stage.
    • June 10, 2009 Course Developed by K.K.Nigam Systems Approach to MIS Participation of Users The strategic purpose of the analysis of the system is to seek the acceptance of the users to new system. System Analysis process provides a sense of participation to the people/users. This not only breaks the resistance that may come from them but also imbibe a sense of commitment among users.
    • June 10, 2009 Course Developed by K.K.Nigam Business Process Re-Engineering?
    • June 10, 2009 Introduction to BPR Course Developed by K.K.Nigam The fundamental analysis and radical redesign of : Business processes and management systems, job definitions, organizational structures and beliefs and behaviors to achieve dramatic performance improvements to meet contemporary requirements. Information technology (IT) is a key enabler in this process. Acronym: BPR
    • June 10, 2009 Introduction to BPR Course Developed by K.K.Nigam The process of radically changing or re-engineering a process. BPR is used when businesses are out of time, i.e., if they do not do something they will be out-of -business or have huge financial problems, or when people perform processes so differently that there is no one clear process. BPR has a high risk associated with it, has radical results and starts with a clean slate.
    • June 10, 2009 Introduction to BPR Course Developed by K.K.Nigam
      • BPR - Just in Time techniques applied to various areas in the organization with particular emphasis on laying out the work flow by process and breaking down the traditional functional barriers between:
              • Sales
              • Planning
              • Manufacturing
              • Accounts
      • When Business Process Re-engineering is combined with manufacturing Just in Time ideas the result is a Focused Factory.
    • June 10, 2009 Introduction to BPR Course Developed by K.K.Nigam
      • The basic analysis and design changes of the processes in question with the objective of overall improvement in productivity is Business Processes Re-engineering (BPR).
      • It may involve radical changes in:
        • Management’s style of functioning
        • Job definitions
        • Organizational structures and
        • Policies
      • All this to achieve dramatic performance improvements to meet contemporary requirements.
      • Information technology (IT) is a key enabler in this process
    • June 10, 2009 Introduction to BPR Course Developed by K.K.Nigam BPR is the process of solving organization's needs and problems by changing the organization's policies and procedures.
    • June 10, 2009 Introduction to BPR Course Developed by K.K.Nigam The process of radically changing or re-engineering a process. BPR is used when businesses are out of time, i.e. , if they do not do something they will be out-of -business or have huge financial problems, or when people perform processes so differently that there is no one clear process. BPR has a high risk associated with it, has radical results and starts with a clean slate.
    • June 10, 2009 Introduction to BPR Course Developed by K.K.Nigam
      • What is BPR?
      • Start with key concepts regarding- BPR
            • Myths about BPR,
            • Processes
            • Relation between BPR and information
            • technology
            • Role of IS function in BPR, BPR
            • Methodology
            • Failure of BPR Projects, and
            • Future of BPR.
    • June 10, 2009 Introduction to BPR Course Developed by K.K.Nigam
      • Need of BPR
      • The what and why of business process re-engineering (BPR)
          • The need for re-engineering
          • Determining what re-engineering is, and is not
          • Focusing on the business processes
          • Achieving cost reduction and revenue generation
          • goals
    • June 10, 2009 Business Process Re-Engineering Course Developed by K.K.Nigam BPR a New Perspective Business Process Innovation: What is IT? A six-step approach. Is BPR Out of Vogue/Fashion? 1. Strategic Planning - Is BPR out of vogue? After a decade of streamlining processes for efficiency, companies are adopting a more proactive stance toward the future.
    • June 10, 2009 Course Developed by K.K.Nigam Does BPR Always Require External Consultants? Some Companies Re-Engineer without external Consultant (Companies like Texas Instruments and Harley Davidson are setting the precedent for implementing reengineering initiatives with internal process improvement teams. ) Business Process Re-Engineering
    • June 10, 2009 Course Developed by K.K.Nigam Business Process Re-Engineering BPR Initiatives... For the Benefit of Employees? Balancing Work - Short-sighted nature of BPR initiatives has been often criticized because of their key emphasis on restructuring and downsizing
    • June 10, 2009 Course Developed by K.K.Nigam Business Process Re-Engineering BPR efforts have been expected to benefit the company and in several cases the customers of the company. How often have we heard of the BPR efforts oriented to the benefit of the employees ?
    • June 10, 2009 Course Developed by K.K.Nigam Business Process Re-Engineering Systemic View of Organizational Change For the "wholistic" perspective about management of organizational change and organizational interdependence the best option is to deploy Information Technology. This way the survival and growth of organizations in an increasingly turbulent environment would depend upon effective utilization of information technology for aligning the organizational structure with environmental preferences and for creating symbiotic inter-organizational structures.
    • June 10, 2009 Course Developed by K.K.Nigam Business Process Re-Engineering BPR: Incremental or Radical? We are all familiar with the initial thrust of BPR on 'forcing' radical change on the employees. We are also aware of the criticism of such 'radicalism' and the later about turn when it is suggested that BPR needs to take into consideration the human factors necessary for successful implementation. The question remains: BPR, should it be incremental or radical?
    • June 10, 2009 Course Developed by K.K.Nigam Business Process Re-Engineering BPR Methodology: Two approaches are outlined: - Top Down Approach - Bottom up Approach Six basic steps of BPR Methodologies:
    • June 10, 2009 Course Developed by K.K.Nigam BPR Methodology Envision – This job is assigned to a team comprising senior executives and knowledgeable individuals to target a business process for improvement based on the review of business strategy and IT opportunities, in the hope of improving the company’s overall performance.
    • June 10, 2009 Course Developed by K.K.Nigam BPR Methodology Initiate – This stage encompasses the assignment of a re-engineering project team, setting of performance goals, project planning, bench marking etc. This is achieved by developing a business case of re-engineering via bench marking , identifying customer needs and cost benefit analysis.
    • June 10, 2009 Course Developed by K.K.Nigam BPR Methodology Diagnose – This stage is classified as the documentation of the existing processes and its sub-processes in terms of process attributes, such as activities, resources, communication, roles, IS and cost. In identifying process requirements and assigning customers value, root causes for problems surface and non value- adding activities are identified.
    • June 10, 2009 Course Developed by K.K.Nigam BPR Methodology Re-design – In the redesign stage, a new process design is developed. This is accomplished by devising process design alternatives through brainstorming and creativity techniques. The new design should meet strategic objectives and fit with the human resource and IS architectures. Documentation and prototyping of the new process is typically conducted and a design of the new information system to support the new process is completed.
    • June 10, 2009 Course Developed by K.K.Nigam BPR Methodology Re-construct – This stage relies heavily on change management techniques to provide reasonable assurance of a smooth migration to new process responsibilities and human resource roles. During this stage ,the IT platform and systems are implemented and the users go through training and transition.
    • June 10, 2009 Course Developed by K.K.Nigam BPR Methodology Evaluate – The last stage of a BPR methodology requires monitoring of the new processes to determine if it met its goals and often involves linkage to a total quality program.
    • June 10, 2009 Management Information System and Management Support
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Let us recapitulate that the crux of MIS is “To provide the right information to the right person in the right fashion at the right time.”
    • June 10, 2009 Right information will help in Good Decision-Making and problem-solving. It may also help in developing the skills for taking right decision that ultimately benefit the organization. Thus the organization can have Effective Information and Decision Support Systems. Course Developed by K.K.Nigam MIS and Management Support
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Decision Support System (DSS): A highly flexible and interactive IT system designed to support decision making, particularly when the problem is not structured. It is an information system that utilizes decision models, a database, and a decision maker's own insights in an ad hoc, interactive analytical modeling process to reach a specific decision by decision maker.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Decision Support System A decision support system (DSS) is a computer program application that analyzes business data and presents it so that users can make business decisions easily.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support It is an "informational application" (to distinguish it from an "operational application" that collects the data in the course of normal business operation). Typical information that a decision support application might gather and present would be:
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support
      • Comparative sales figures between different
      • periods
      • Projected revenue figures based on new product
      • sales assumptions
      • The consequences of different decision
      • alternatives, given past experience
      A DSS may present information graphically for better presentation .
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from : - Raw data - Documents - Personal Knowledge , and/or - Business Models to identify and solve problems and make decisions.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Typical information that a decision support application might gather and present would be: - Accessing all of your current information assets, including legacy and relational data sources, data warehouses, and data marts - Comparative sales figures between different periods
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support - Projected revenue figures based on new product sales assumptions - The consequences of different decision alternatives, given past experience in a context that is described
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Types of DSS
      • The DSS is basically has three phases :
            • - Intelligence
            • - Design
            • - Choice
      • All the phases are equally important in developing the most suitable DSS.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support In DSS there are two types of decisions: - Programmable - Non-Programmable
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Programmable decisions are those which are rule based i.e. the rules are preset or pre defined. Therefore DSS can be built around the rule in case of programmable decision situation.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support In case of non-programmable decisions the rules are not fixed or predetermined and are generally adhoc. The decision making is also not fixed.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support
      • Some of the common DSS’s are:
              • 1. Status Inquiry System
              • 2. Data Analysis Systems
              • 3. Information Analysis System
              • 4. Accounting System
              • 5. Model Based System
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support
      • Status Inquiry System:
        • These Decisions are generally based on operations and are generally based on one or two aspects of the situation.
          • It does not call for any elaborate
          • computations, analysis, choice etc. for
          • decision making.
          • The decisions are generally automatic
          • based on Certain Parameters.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support 2. Data Analysis Systems: These decision systems are based on comparative analysis and use of a formula or an algorithms. The Cash flow analysis, the inventory analysis etc. are the examples of the analysis system. Simple Data Processing tools and business rules are required to develop this system.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support 3.Information Analysis System: In this system the data is analyzed and information / reports are generated .The decision makers use these reports for assessment of the situation for decision making. The sales analysis , the accountings receivable systems, the market research analysis etc. are the examples of this system.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support
      • 4. Accounting System:
            • These systems are not necessarily for decision-making but they are desirable to keep track of the major aspects of the business or a function.
            • The contents of these systems is more data processing leading to formal reporting , with exceptions if necessary.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support 5. Model Based System: These systems are simulation models or optimisation models for decision making. These decisions generally , are one time and infrequent and provide general guidelines for operation or management. Examples – Product Mix decision, Material Mix decision etc.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Tools for Business Support System
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Every organization recognizes the value of making their business decisions, as such they would like the decision to be better/improved, faster and more consistent.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Decision Management Applications enable businesses to: - Determine the most profitable and relevant decision - Make full use of corporate data - Execute Business Strategies with rigorous precision, by making consistent decisions across multiple points, while gathering information on the customer's needs
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support There are variety of tools available for Business Support , but before any tool is used the Data must be available. This means that an appropriate/correct database is required to use any tool for taking decision.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Unfortunately, ensuring the integrity of data comes with multiple IT challenges, which create roadblocks to sustaining IT compliance over time. Some important factors that need to be taken care are:
    • June 10, 2009 Complexity of data Largely due to the level of merger and acquisition activity in recent years, IT infrastructures have become a complex maze of heterogeneous hardware and software assets. Course Developed by K.K.Nigam MIS and Management Support
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support In addition to technological complexity, IT professionals are also responsible for interpreting the IT requirements for global regulations and implementing the appropriate IT controls for numerous compliance efforts simultaneously.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Lack of Standardization: Inconsistent processes across business units and geographies create fragmented efforts involving multiple ways of testing, measuring, and reporting on the same IT control.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support What if Analysis?
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support In What if Analysis , an end user makes changes to variables or relationships among variables , and observes the resulting changes in the values of other variables.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support For example – If you are using a spreadsheet , you might change a revenue amount (a variable) or a tax rate formula ( a relationship among variables) in a simple spreadsheet model. You may then have a command on the spreadsheet to instantly recalculate all effected variables in the spreadsheet.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support What If analysis can help you get a feel for how your risk would change if you make changes to your parameters. 
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support
      • The benefit of What If is that you can assess the effect of potential changes before you actually make them. 
      • You can assess the potential impact of:
        • - Adding an asset to your portfolio,
        • - Deleting an asset from your portfolio,
        • - Making adjustments to the amount you own
          • of an asset by calculating explicitly how the
          • changes would affect the risk of your
          • portfolio.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support After modifying (hypothetically) your investment mix, you can view the pre- and post- impact of the investment decisions you are considering. 
    • June 10, 2009 You can assess the impact of your changes on all of the risk measures provided on the Risk site, including: - Portfolio Risk Grade - Diversification benefit - Risk Impact Course Developed by K.K.Nigam MIS and Management Support
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Using the What If tool permits you to either confirm what you believe to be a good decision, or undo a bad decision by preventing you from making it in the first place!
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Sensitivity Analysis
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Sensitivity Analysis (SA) is the study of how the variation in the output of a model (numerical or otherwise) can be apportioned qualitatively or quantitatively, to different sources of variation.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Sensitivity Analysis (SA) is a special case of What-if-analysis. Typically, the value of only one variable is changed repeatedly and the resulting changes on other variables are observed. So SA is case a of what-if-analysis involving repeatedly changes to only one variable at a time.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Typically , Sensitivity Analysis is used when decision makers are uncertain about the assumptions made in estimating the value of certain key variables. This would help a manager understand the impact of various revenue levels or other factors involved in decisions being considered.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Sensitivity Analysis (SA) aims to ascertain how the model depends upon the information fed into it, upon its structure and upon the framing assumptions made to build it. This information can be invaluable, as:
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support • Different level of acceptance (by the decision-makers and stakeholders) may be attached to different types of uncertainty. • Different uncertainties impact differently on the reliability, the robustness and the efficiency of the model.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support What are the reasons to conduct Sensitivity Analysis? Modelers may conduct SA to determine: (a) the model resemblance with the process under study, (b) the quality of model definition, (c) factors that mostly contribute to the output variability (d) the region in the space of input factors for which the model variation is maximum (e) optimal regions within the space of factors for use in a subsequent calibration study (f) interactions between factors.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support
      • What is difference between Uncertainty and Sensitivity Analysis?
        • Although closely related, Uncertainty Analysis and Sensitivity Analysis are two different disciplines. Uncertainty Analysis assesses the uncertainty in model outputs that derives from uncertainty in inputs.
        • Sensitivity Analysis assesses the contributions of the inputs to the total uncertainty in analysis outcomes.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support
      • Which is the best method to perform SA on my model?
        • The choice of which SA method to adopt is difficult as each technique has strengths and weaknesses. Such a choice depends on the problem the investigator is trying to address, on the characteristics of the model under study, and also on the computational cost that the investigator can afford.
    • June 10, 2009 Goal Seek Analysis Course Developed by K.K.Nigam
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Goal-Seek analysis reverses the direction of the analysis done in What-if and Sensitivity analysis. Instead of observing how changes in a variable affect other variables, Goal-seek analysis (also called how can analysis) sets a target value (a goal) for a variable and then repeatedly changes other variables until the target value is achieved.
    • June 10, 2009 Goal Seek is the easiest tool to use and is a real time saver.  For example, suppose you want to know what you must make on the final exam in order to receive an “A” Grade in this course.  The lowest value for an “A” grade is 93. Therefore, you want your final grade to be at least 93.  Course Developed by K.K.Nigam MIS and Management Support
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Optimization Analysis
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support WHAT IS OPTIMIZATION? Optimization analysis is a more complex extension of Goal-Seek analysis. In this , instead of setting a specific target variable, the goal is to find the optimum value for one or more target variables, given certain constraints. Then one or more variables are changed repeatedly subject to the specified constraints, until the best values for the target variables are discovered.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support Optimization is a process that finds a best, or optimal, solution for your model. Not every spreadsheet model requires optimization; however, the technique is very important when you have model variables that you can control (e.g., spending) and you want a maximum or minimum goal that relies on those variables.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support For example, you want to know the maximum possible return on an investment portfolio, but you are not sure how much money to put into each separate investment. Or, you are a project manager with budget constraints, and you need to figure out which combination of seven possible projects will result in the highest profit.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support With traditional spreadsheet models, you can perform simple optimizations with programs such as Excel's Solver, which applies linear equations to come up with a maximum or minimum value. This works fine if your problem has a single optimal value, like the top of a mountain.
    • June 10, 2009 Course Developed by K.K.Nigam MIS and Management Support In reality, such simple situations are rare, and more often than not, you are searching for the highest peak in a whole range of mountains. You must discern which of the high values is the highest, and you need to perform a more global optimization .
    • June 10, 2009 Course Developed by K.K.Nigam Developing MIS
    • June 10, 2009 Course Developed by K.K.Nigam Developing MIS System Development Life Cycle (SDLC) - encompasses complete Information System. The activities it covers are – Conceptualize, Design, and implement a project such as: - Analysis - Design - Building - Implementation - Operation and - Maintenance.
    • June 10, 2009 Course Developed by K.K.Nigam Developing MIS In other words System Development Life Cycle (SDLC) is the overall process of developing information systems through a multi-step process from investigation of initial requirements through analysis, design, implementation and maintenance. There are many different models and methodologies, but each generally consists of a series of defined steps or stages.
    • June 10, 2009 Course Developed by K.K.Nigam Developing MIS To manage this, a number of System Development Life Cycle (SDLC) models have been created like: - Waterfall - Fountain - Spiral - Build and fix - Rapid prototyping - Incremental and - Synchronize and stabilize.
    • June 10, 2009 Course Developed by K.K.Nigam Developing MIS The oldest of these, and the best known, is the Waterfall: A sequence of stages in which the output of each stage becomes the input for the next. These stages can be characterized and divided up in different ways, including the following:
    • June 10, 2009 Course Developed by K.K.Nigam Developing MIS Project planning, feasibility study: Establishes a high-level view of the intended project and determines its goals. Systems analysis, requirements definition: Refines project goals into defined functions and operation of the intended application. Analyzes end-user information needs.
    • June 10, 2009 Course Developed by K.K.Nigam Developing MIS Systems Design: Describes desired features and operations in detail, including screen layouts, business rules, process diagrams, pseudocode and other documentation. Implementation: The real code is written here. Integration and testing: Brings all the pieces together into a special testing environment, then checks for errors, bugs and interoperability.
    • June 10, 2009 Course Developed by K.K.Nigam Developing MIS Acceptance, Installation, Deployment: The final stage of initial development, where the software is put into production and runs actual business. Maintenance: What happens during the rest of the software's life: changes, correction, additions, moves to a different computing platform and more. This, the least glamorous and perhaps most important step of all, goes on seemingly forever.
    • June 10, 2009 Course Developed by - KKN But Waterfall Model did not work – Larry Runge, SDLC expert says that SDLC "works very well when we are automating the activities of clerks and accountants. It doesn't work nearly as well, if at all, when building systems for knowledge workers -- people at help desks, experts trying to solve problems. Developing MIS
    • June 10, 2009 Course Developed by - KKN Fountain Model :- The fountain model recognizes that although some activities can't start before others -- such as you need a design before you can start coding -- there's a considerable overlap of activities throughout the development cycle. Developing MIS
    • June 10, 2009 Course Developed by - KKN Spiral Model: - The spiral model emphasizes the need to go back and reiterate earlier stages a number of times as the project progresses. Developing MIS
    • June 10, 2009 Course Developed by - KKN Developing MIS It's actually a series of short waterfall cycles, each producing an early prototype representing a part of the entire project. This approach helps demonstrate a proof of concept early in the cycle, and it more accurately reflects the disorders, if any.
    • June 10, 2009 Course Developed by - KKN Build and Fix Method:- Build and fix is the crudest of the methods. Write some code, then keep modifying it until the customer is happy. Without planning, this is very open-ended and can be risky. Developing MIS
    • June 10, 2009 Rapid Prototyping - In the rapid prototyping (sometimes called rapid application development) model, initial emphasis is on creating a prototype that looks and acts like the desired product in order to test its usefulness. Developing MIS Course Developed by - KKN
    • June 10, 2009 Developing MIS Course Developed by - KKN The prototype is an essential part of the requirements determination phase, and may be created using tools different from those used for the final product. Once the prototype is approved, it is discarded and the "real" software is written.
    • June 10, 2009 Systems Analysis Developing MIS Course Developed by - KKN
    • June 10, 2009 Developing MIS Course Developed by - KKN What is Systems Analysis? The study of a business problem to recommend improvements and to specify the requirements for a solution. It is a process of planning, designing and implementation of new and improved information systems to meet the business requirements of the organizations.
    • June 10, 2009 Developing MIS Course Developed by - KKN
      • It focuses on specifying what the system or application is required to do. Elements of structured analysis:
            • Graphical description
            • Data Flow Diagrams
            • Data Dictionary: definitions of
            • elements in the System
    • June 10, 2009 Developing MIS Course Developed by - KKN The Analyst tries to establish in detail what the system is expected to do:
      • Objectives
      • Costs
      • Benefits
      • Implementation process
      • Organizational changes required
      • Defines who the USERS are, their
      • input and output
    • June 10, 2009 Developing MIS Course Developed by - KKN Phase 1 - Identify problems, opportunities, and objectives Analyst looks at what is happening/ occurring in the business. It looks for problems and opportunities. People involved: - Users - Analysts - Systems Managers
    • June 10, 2009 Developing MIS Course Developed by - KKN Phase 1 Activities include: - Interviewing User/Management - Summarizing Knowledge obtained - Estimating Scope of Project Output of this phase: - Feasibility study (report) containing a problem definition and summarizing the objectives
    • June 10, 2009 Developing MIS Course Developed by - KKN Feasibility Study: The Basic Tasks
      • Problem Orientation
            • Define the problem
            • Establish system objectives
            • Identify the users
            • Establish functional scope
    • June 10, 2009 Developing MIS Course Developed by - KKN Feasibility Study
      • Alternative Specification
        • - Propose options
        • - Cost-Benefit analysis
        • - Assess project risk
        • - Recommend
    • June 10, 2009 Developing MIS Course Developed by - KKN Feasibility Study Technical - Do we have the capability to develop the system? - Does the necessary technology exist? - Does the proposed system have the right - Response time, Interface, - Can the system be expanded?
    • June 10, 2009 Developing MIS Course Developed by - KKN Feasibility Study Economic - Is there an economic payoff? - Cost of Hardware/Software - Other benefits in terms of reduced costs - Opportunity costs
    • June 10, 2009 Developing MIS Course Developed by - KKN Phase 2 -Determining Requirements & Analyzing System Needs
      • Goal – Re-d etermine the requirements of
        • the new system -- must obtain a
        • consensus from the user community on
        • the ideal information system
    • June 10, 2009 Developing MIS Course Developed by - KKN Analyst needs to know details of current system functions Who - the people who are involved What - the business activity Where - the environment in which the work occurs When - the timing of the activity How - how the current procedures are performed
    • June 10, 2009 Developing MIS Course Developed by - KKN 2. Re-Confirm Requirements definition
      • Document containing an abstract description of:
          • - User functions the new system is
          • expected to provide
          • - Constraints under which the system must
          • operate
          • - Only specifies the external behavior of
          • the system - does not cover any
          • implementation
    • June 10, 2009 Developing MIS Course Developed by - KKN What is - Data Flow Diagram?
    • June 10, 2009 Developing MIS Course Developed by - KKN A Data Flow Diagram is a graphical means of : - Representing - Describing or - Analyzing a process. This is done by drawing small boxes which represent steps or decisions in a chain of steps or decisions. These boxes are connected to other boxes by lines and arrows which represent sequence and dependency relationships (i.e., X must be done before Y can be done). This is also known as a Flow Chart .
    • June 10, 2009 Developing MIS Course Developed by - KKN The basic format for a DFD
    • June 10, 2009 Developing MIS Course Developed by - KKN Before we examine the components of a DFD, let us see some samples:
    • June 10, 2009 Developing MIS Course Developed by - KKN Thus just by looking at the DFD one can understand the processes involved, the flow and the outcome. The notations are simple and intuitively obvious. This is particularly important when we remember who is supposed to be looking at the DFD — not the Systems Analyst, but the user!
    • June 10, 2009 Developing MIS Course Developed by - KKN Therefore ,if the user needs an encyclopedia in order to read and understand the model of his system, he or she probably won’t bother to do either.
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Warehousing & Data Mining
    • June 10, 2009 Developing MIS Course Developed by - KKN Definition: A data warehouse is, primarily, a record of an enterprise's past transactional and operational information, stored in a database designed to favour efficient data analysis and reporting (especially OLAP). Data warehousing is not meant for current, "live" data.
    • June 10, 2009 The term Data Warehouse was coined by Bill Inmon in 1990, which he defined in the following way: "A warehouse is a subject-oriented, integrated, time-variant and non-volatile collection of data in support of management's decision making process". He defined the terms in the sentence as follows: Developing MIS Course Developed by - KKN
    • June 10, 2009 Developing MIS Course Developed by - KKN Subject Oriented: Data that gives information about a particular subject instead of about a company's ongoing operations. Integrated: Data that is gathered into the data warehouse from a variety of sources and merged into a coherent whole.
    • June 10, 2009 Developing MIS Course Developed by - KKN Time-variant: All data in the data warehouse is identified with a particular time period. Non-volatile Data is stable in a data warehouse. More data is added but data is never removed. This enables management to gain a consistent picture of the business. (Source: "What is a Data Warehouse?" W.H. Inmon, Prism, Volume 1, Number 1, 1995).
    • June 10, 2009 Developing MIS Course Developed by - KKN This definition remains reasonably accurate almost ten years later. However, a single-subject data warehouse is typically referred to as a Data Mart, while data warehouses are generally enterprise in scope.
    • June 10, 2009 Developing MIS Course Developed by - KKN Source System Identification: Source System Identification: In order to build the data warehouse, the appropriate data must be located. Typically, this will involve both the current OLTP (On-Line Transaction Processing) system where the "day-to-day" information about the business resides, and historical data for prior periods, which may be contained in some form of "legacy" system. Often these legacy systems are not relational databases, so much effort is required to extract the appropriate data.
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Warehouse Design and Creation: This describes the process of designing the warehouse, with care taken to ensure that the design supports the types of queries the warehouse will be used for. This is an involved effort that requires both an understanding of the database schema to be created, and a great deal of interaction with the user community. The design is often an iterative process and it must be modified a number of times before the model can be stabilized. Great care must be taken at this stage, because once the model is populated with large amounts of data, some of which may be very difficult to recreate, the model can not easily be changed.
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Acquisition: This is the process of moving company data from the source systems into the warehouse. It is often the most time-consuming and costly effort in the data warehousing project, and is performed with software products known as ETL (Extract/Transform/Load) tools. There are currently over 50 ETL tools on the market. The data acquisition phase can cost millions of dollars and take months or even years to complete. Data acquisition is then an ongoing, scheduled process, which is executed to keep the warehouse current to a pre-determined period in time, (i.e. the warehouse is refreshed monthly).
    • June 10, 2009 Developing MIS Course Developed by - KKN Changed Data Capture: The periodic update of the warehouse from the transactional system(s) is complicated by the difficulty of identifying which records in the source have changed since the last update. This effort is referred to as "changed data capture". Changed data capture is a field of endeavor in itself, and many products are on the market to address it. Some of the technologies that are used in this area are Replication servers, Publish/Subscribe, Triggers and Stored Procedures, and Database Log Analysis.
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Cleansing: This is typically performed in conjunction with data acquisition (it can be part of the "T" in "ETL"). A data warehouse that contains incorrect data is not only useless, but also very dangerous. The whole idea behind a data warehouse is to enable decision-making. If a high level decision is made based on incorrect data in the warehouse, the company could suffer severe consequences, or even complete failure. Data cleansing is a complicated process that validates and, if necessary, corrects the data before it is inserted into the warehouse.
    • June 10, 2009 Developing MIS Course Developed by - KKN For example, the company could have three "Customer Name" entries in its various source systems, one entered as "IBM", one as "I.B.M.", and one as "International Business Machines". Obviously, these are all the same customer. Someone in the organization must make a decision as to which is correct, and then the data cleansing tool will change the others to match the rule. This process is also referred to as "data scrubbing" or "data quality assurance". It can be an extremely complex process, especially if some of the warehouse inputs are from older mainframe file systems (commonly referred to as "flat files" or "sequential files").
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Aggregation: It is process is often performed during the "T" phase of ETL, if it is performed at all. Data warehouses can be designed to store data at the detail level (each individual transaction), at some aggregate level (summary data), or a combination of both. The advantage of summarized data is that typical queries against the warehouse run faster. The disadvantage is that information, which may be needed to answer a query, is lost during aggregation. The tradeoff must be carefully weighed, because the decision can not be undone without rebuilding and repopulating the warehouse. The safest decision is to build the warehouse with a high level of detail, but the cost in storage can be extreme.
    • June 10, 2009 Developing MIS Course Developed by - KKN Now that the warehouse has been built and populated, it becomes possible to extract meaningful information from it that will provide a competitive advantage and a return on investment. This is done with tools that fall within the general rubric of "Business Intelligence".
    • June 10, 2009 Developing MIS Course Developed by - KKN Business Intelligence (BI) A very broad field indeed, it contains technologies such as Decision Support Systems (DSS), Executive Information Systems (EIS), On-Line Analytical Processing (OLAP), Relational OLAP (ROLAP), Multi-Dimensional OLAP (MOLAP), Hybrid OLAP (HOLAP, a combination of MOLAP and ROLAP), and more. BI can be broken down into four broad fields:
    • June 10, 2009 Developing MIS Course Developed by - KKN Multi-dimensional Analysis Tools: Tools that allow the user to look at the data from a number of different "angles". These tools often use a multi-dimensional database referred to as a "cube". Query tools: Tools that allow the user to issue SQL (Structured Query Language) queries against the warehouse and get a result set back.
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Mining Tools: Tools that automatically search for patterns in data. These tools are usually driven by complex statistical formulas. The easiest way to distinguish data mining from the various forms of OLAP is that OLAP can only answer questions you know to ask, data mining answers questions you didn't necessarily know to ask.
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Visualization Tools: Tools that show graphical representations of data, including complex three-dimensional data pictures. The theory is that the user can "see" trends more effectively in this manner than when looking at complex statistical graphs. Some vendors are making progress in this area using the Virtual Reality Modeling Language (VRML).
    • June 10, 2009 Developing MIS Course Developed by - KKN Metadata Management Throughout the entire process of identifying, acquiring, and querying the data, metadata management takes place. Metadata is defined as "data about data". An example is a column in a table. The datatype (for instance a string or integer) of the column is one piece of metadata. The name of the column is another. The actual value in the column for a particular row is not metadata - it is data. Metadata is stored in a Metadata Repository and provides extremely useful information to all of the tools mentioned previously.
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Mining: What is Data Mining? Generally, data mining (sometimes called data or knowledge discovery) is the process of analyzing data from different perspectives and summarizing it into useful information - information that can be used to increase revenue, cuts costs, or both.
    • June 10, 2009 Developing MIS Data mining software is one of a number of analytical tools for analyzing data. It allows users to analyze data from many different dimensions or angles, categorize it, and summarize the relationships identified. Technically, data mining is the process of finding correlations or patterns among dozens of fields in large relational databases.
    • June 10, 2009 Developing MIS Course Developed by - KKN Although data mining is a relatively new term, the technology is not. Companies have used powerful computers to sift through volumes of supermarket scanner data and analyze market research reports for years. However, continuous innovations in computer processing power, disk storage, and statistical software are dramatically increasing the accuracy of analysis while driving down the cost.
    • June 10, 2009 Developing MIS Course Developed by - KKN For example, one Midwest grocery chain used the data mining capacity of Oracle Software to analyze local buying patterns. They discovered that when men bought grocery items on Thursdays and Saturdays, they also tended to buy beer. Further analysis showed that these shoppers typically did their weekly grocery shopping on Saturdays. On Thursdays, however, they only bought a few items. The retailer concluded that they purchased the beer to have it available for the upcoming weekend.
    • June 10, 2009 Developing MIS Course Developed by - KKN The grocery chain could use this newly discovered information in various ways to increase revenue. For example, they could move the beer display closer to the grocery item display. And, they could make sure beer and that item were sold at full price on Thursdays.
    • June 10, 2009 Developing MIS Course Developed by - KKN
      • Data, Information, and Knowledge
        • Data - Data are any facts, numbers, or text that can be processed by a computer. Today, organizations are accumulating vast and growing amounts of data in different formats and different databases. This includes:
    • June 10, 2009 Developing MIS Course Developed by - KKN
      • Operational or transactional data such as, sales,
      • cost, inventory, payroll, and accounting
      • Non- operational data, such as industry sales,
      • forecast data, and macro economic data
      • Meta data - data about the data itself, such as
      • logical database design or Data Dictionary
      • definitions
    • June 10, 2009 Developing MIS Course Developed by - KKN Information The patterns, associations, or relationships among all this data can provide information . For example, analysis of retail point of sale transaction data can yield information on which products are selling and when.
    • June 10, 2009 Developing MIS Course Developed by - KKN
      • Knowledge
        • Information can be converted into knowledge about historical patterns and future trends.
        • For example, summary information on retail supermarket sales can be analyzed in light of promotional efforts to provide knowledge of consumer buying behavior. Thus, a manufacturer or retailer could determine which items are most susceptible to promotional efforts.
    • June 10, 2009 Developing MIS Course Developed by - KKN What can Data Mining do? Data mining is primarily used today by companies with a strong consumer focus - retail, financial, communication, and marketing organizations. It enables these companies to determine relationships among "internal" factors such as price, product positioning, or staff skills, and "external" factors such as economic indicators, competition, and customer demographics. And, it enables them to determine the impact on sales, customer satisfaction, and corporate profits. Finally, it enables them to "drill down" into summary information to view detail transactional data.
    • June 10, 2009 Developing MIS Course Developed by - KKN How does Data Mining work? Information Technology has enabled to establish link between the transactions and the Analytical system. The Software analyses the relations and the patterns in the stored transactions. Several types of Analytical Software are available e.g.: Statistical, Machine Learning and Neural Networks. Generally, any of four types of relationships are sought:
    • June 10, 2009 Developing MIS Course Developed by - KKN
      • Classes :
      • Stored data is used to locate data in predetermined groups.
      • For example, a restaurant chain could mine customer purchase data to determine when customers visit and what they typically order. This information could be used to increase traffic by having daily specials.
    • June 10, 2009 Developing MIS Course Developed by - KKN
      • Clusters :
      • Data items are grouped according to logical relationships or consumer preferences.
      • For example, data can be mined to identify market segments or consumer affinities.
    • June 10, 2009 Developing MIS Course Developed by - KKN
      • Associations :
      • Data can be mined to identify associations.
      • Sequential patterns :
      • Data is mined to anticipate behavior patterns and trends.
      • For example, an outdoor equipment retailer could predict the likelihood of a backpack being purchased based on a consumer's purchase of sleeping bags and hiking shoes.
    • June 10, 2009 Developing MIS Course Developed by - KKN Data Mining consists of five major elements: - Extract, transform, and load transaction data onto the data warehouse system. - Store and manage the data in a multidimensional database system. - Provide data access to business analysts and information technology professionals. - Analyze the data by application software. - Present the data in a useful format, such as a graph or table.
    • June 10, 2009 Course Developed by - KKN Application of MIS Cross Functional MIS
    • June 10, 2009 Course Developed by - KKN Application of MIS Cross Functional MIS Conceptually the applications of Information Systems in the real world can be classified in several different ways. For Example: Several of information systems can be classified as either operations or Management Information Systems.
    • June 10, 2009 Course Developed by - KKN Application of MIS Information Systems Operations Support System Management Support Systems Transaction Processing System Process Control System Enterprise Collaboration System MIS DSS EIS
    • June 10, 2009 Course Developed by - KKN Application of MIS Operations Support Systems: Transaction Processing System – Processes data resulting from Business transactions, update operational databases and produce business documents e.g. Sales , Inventory and Accounting Systems.
    • June 10, 2009 Course Developed by - KKN Application of MIS Process Control Systems – Monitor and control industrial processes e.g. Petroleum Refining, Power generation, Steel production etc. Enterprise Collaboration Systems – Support team, workgroup and enterprise communications and collaboration e.g. e-mail, chat, videoconferencing groupware systems.
    • June 10, 2009 Course Developed by - KKN Application of MIS Management Support Systems MIS – Provide Information in the form of pre- specified reports and displays to support business decision making e.g. Sales Analysis, Production Performance and Cost Trend reporting systems. Decision Support Systems – Provide interactive adhoc support for the decision-making process of managers and other business professionals. e.g. Product Pricing , Profitability forecasting and Risk Analysis Systems.
    • June 10, 2009 Course Developed by - KKN Application of MIS Executive Information Systems – Provide critical information from many sources tailored to the information needs of executives e.g. Systems for easy access to analysis of business performance, action of competitors and economic development to support strategic planning.
    • June 10, 2009 Course Developed by - KKN Application of MIS Other Categories of Information Systems Expert Systems – Knowledge- based systems that provide expert advice and act as expert consultant to users e.g. credit application advisor, process monitor and diagnostic systems.
    • June 10, 2009 Knowledge Management Systems – Knowledge based systems that support the creation, organization and dissemination of business knowledge within the enterprise e.g. intranet access to best business practices, sales proposal strategies and customers problem resolution systems. Course Developed by - KKN Application of MIS
    • June 10, 2009 Course Developed by - KKN Application of MIS Strategic Information Systems – Support operations or management process that provide a firm with strategic products, services and capabilities for competitive advantage. E.g. Online Stock trading, shipment tracking and e-Commerce systems.
    • June 10, 2009 Course Developed by - KKN Application of MIS Functional Business Systems – Support a variety of operational and managerial application of the basic business functions of a company e.g. information systems that support applications in accounting, finance, marketing , operations management and human resource management.
    • June 10, 2009 Enterprise Resource Planning - The ERP Course Developed by - K.K.Nigam
    • June 10, 2009 What is ERP ? ERP is an integrated Software Package, that takes care of almost all the activities in an organization in a cohesive manner. ERP is a integration of Resources (Men, Material, Machine and Money) Course Developed by - K.K.Nigam
    • June 10, 2009 It addresses all the needs of the Enterprise. It is a generic Software solution that can be customized as per the needs of the organization, but at times the organization may also need to change its processes/workflows etc. to accept the Software package. Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 The essence of ERP or the purpose of implementing an ERP is to streamline the processes and and get the required information at the right time to take right decisions. Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 ERP integrates the functional modules tightly. It does not only posts the transactions to the relevant module but also maintains the data integrity throughout the life of the package. Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 This implies that the data once entered is made available to every other module that needs that. This leads to significant improvements by way of improved consistency and integrity of data. Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 ERP is Process oriented as such it uses the process view. Earlier Software were using the functional view, which used to focus a particular function e.g. Stores Inventory,Financial module etc. The process view provides a much better insight into the organizational systems. Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 To implement such a demanding software high performance computing, availability of systems, high availability of storage, highly reliable networks etc. are required, all within the specified budget. Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning ERP is the only Software whose deployment decisions are made in the corporate boardrooms and not by EDP/MIS departments. ERP today is the single most expensive piece of general-purpose software. Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Need of ERP: The need of ERP deployment has risen to keep a check and control the common resources of the organization which are: Men, Material, Machine and Money. Out of the four Ms the most crucial and critical resources are Men and Money. Course Developed by - K.K.Nigam
    • June 10, 2009 Right information /decision helps in - Increased Revenue - Decreased Inventory /Operating Cost - Improved Market Share - Reduction in Overheads ERP- Possible Benefits Course Developed by - K.K.Nigam
        • Globalization
        • Competition
        • Avoid Obsolescence
      June 10, 2009 Factors Responsible For ERP - Sluggish Sales - Increasing Raw Material Cost - Increasing Manpower Cost Course Developed by - K.K.Nigam
    • June 10, 2009 Decisions cannot be based on hunches or experience alone, they have to have some basis and that basis has to be the data the information and of course some analytical tools. Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning The user require flexible reporting tools to extract the information as and when they need it without depending on an information systems department to produce the report. Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Complexities of ERP The task of ERP implementation is not simple. It has both its complications/problems and advantages. It brings total overhaul to the working of the organization, as such it is bound to have problems. But these problems/complications may be viewed as Re-engineering processes or functions. Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Barring few unskilled or semi skilled workers, almost everybody in the organization will be affected by the ERP implementation. Everybody has to prepare himself for this change. They must be made clear that ERP, after implementation will bring phenomenal improvement in their working. Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Generally Complications are due to: - Change in Hardware - Change in Software or the - Changes in Procedures
    • June 10, 2009 Enterprise Resource Planning The Hardware change should always be smooth whether it is up-gradation of Hardware or replacement of Hardware. The Software obviously is going to be changed (because of ERP), therefore the staff/user must be taken into confidence and given sufficient / required training so as to bring the change in work culture. Course Developed by - K.K.Nigam
    • June 10, 2009 It is quite possible that due to certain changes , the staff/user may be required to be re-located/transferred. All these eventualities must be made clear to the users,so that these problems should not crop up at a later date. Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning We are well aware that change is always resisted. Generally change is not welcome in the organizations. Resistance may be due to following: - People do not like the Software - Fear of losing/transfer/re-location the job - Some may have genuine problem also But on the whole reluctance to change is common phenomena. Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Some common apprehensions/ problems could be :           - Connectivity is not smooth with Server - Software/Package asks more details - No shortcuts are available - Confidentiality/importance is feared - Own weaknesses get highlighted etc. Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Therefore before giving a green signal to the users to start using the package, following care must be taken: - Connectivity problem should not be there - Thorough testing of Software must be done - Proper Training must be imparted - Support must be immediately available Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Users should be given what they want: - The Screens/forms should be designed in such a way that it should be complete in all respects for that particular user. - Checks and Controls must be built into the system so as to maintain the Data integrity and Data Quality - Un-necessary options/choices should not be provided Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning - Data entered once should become integral part of the database and will be used by number of users,throughout the organization. - The Screens must be so designed so that the user feels comfortable while working. - Fields provided on the screen must be easily understood Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning - Sufficient space must be available for entering the data - Rolling of screen horizontally must be avoided - Color scheme must be designed keeping aesthetic sense in mind i.e. they should not give pain to the user’s eye etc. Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning ERP and the Infrastructure 1.Before deciding to go for the Implementation, it is necessary, to ascertain that the required infrastructure is in place. 2. The ERP vendor or implementer must inform the organization about these requirements. 3.Organization in its turn must ensure that the required infrastructure is in place. Generally, the management or the team responsible for implementation tries to cut the costs in these areas. Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Integrated Data Model   1. Adequate study must be conducted before finalizing the Database. 2. Data Modeling is the most critical part of Designing the Database, because Database is the backbone of the of the ERP. 3. The database must have perfect interlinking of the tables so as to closely link the relevant fields of Employees, Customers and Suppliers etc. the database should be able to instantaneously update all the relevant fields of different tables as and when a transaction takes place anywhere in the organization. Course Developed by - K.K.Nigam
    • June 10, 2009 Common Modules of Enterprise Resource Planning Course Developed by - K.K.Nigam
    • June 10, 2009 Enterprise Resource Planning Course Developed by - K.K.Nigam
      • Modules Covered in a Typical Manufacturing environment
        • - Financial Accounting
        • - Sales & Marketing
        • - Purchase and Stores/Inventory
        • - Human Resources including Payroll
        • - Production Planning & Control
        • - Logistics
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management What is Supply Chain Management ?
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management Supply Chain Management is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer. SCM has three primary goals: - Reduce inventory - Increase the transaction speed by exchanging data in real-time, and - Increase sales by implementing customer requirements more efficiently.
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management The design, planning, execution, control, and monitoring of supply chain activities with the objective of: - C reating net value - Building a competitive infrastructure - Leveraging worldwide logistics - Synchronizing supply with demand, and - Measuring performance globally.
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management Following are five basic components of SCM: 1. Plan – This is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service. A big part of planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs less and delivers high quality and value to customers.
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management 2. Source – Choose the suppliers that will deliver the goods and services you need to produce your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. And put together processes for managing the inventory of goods and services you receive from suppliers, including receiving shipments, verifying them, transferring them to your manufacturing facilities and authorizing supplier payments.
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management 3. Make – This is the manufacturing step. Schedule the activities necessary for production, testing, packaging and preparation for delivery. As the most metric-intensive portion of the supply chain, measure quality levels, production output and worker productivity.
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management 4. Deliver – This is the part that many insiders refer to as logistics. Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.
    • June 10, 2009 Course Developed by - K.K.Nigam Supply Chain Management 5. Return – The problem part of the supply chain. Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.
    • June 10, 2009 Course Developed by - K.K.Nigam Virtual Reality What is Virtual Reality?
    • June 10, 2009 Course Developed by - K.K.Nigam Artificial Intelligence Virtual reality (often called VR) is generally speaking an attempt to provide more natural, human interfaces to software. It can be as simple as a pseudo 3D interface or as elaborate as an isolated room in which the computer can control the user's senses of vision, hearing, and even smell and touch.
    • June 10, 2009 Course Developed by - K.K.Nigam Artificial Intelligence A technology that is computer generated and allows the user to interact with data that gives the appearance of a three-dimensional environment. The user can "enter" and "navigate" the "3-D world" portrayed as graphic images and change viewpoint and interact with object in that world as if "inside" that world.
    • June 10, 2009 Course Developed by - K.K.Nigam Artificial Intelligence Virtual reality (VR) describes an environment that is simulated by a computer. Most virtual reality environments are primarily visual experiences, displayed either on a computer screen or through special stereoscopic goggles, but some simulations include additional sensory information, such as sound through speakers.
    • June 10, 2009 Course Developed by - K.K.Nigam Artificial Intelligence VRML Virtual Reality Modeling Language VRML allows to create "virtual worlds" networked via the Internet and hyperlinked with the World Wide Web. Aspects of virtual world display, interaction and internetworking can be specified using VRML without being dependent on special gear like head-mounted devices (HMD). It is the intention of its designers to develop VRML as the standard language for interactive simulation within the World Wide Web.
    • June 10, 2009 Course Developed by - K.K.Nigam Security! Why?
    • June 10, 2009 Course Developed by - K.K.Nigam Security Computer security is the effort to create a secure computing platform, designed so that agents (users or programs) can only perform actions that have been allowed. This involves specifying and implementing a security policy. The actions in question can be reduced to operations of access, modification and deletion. Computer security can be seen as a subfield of security engineering, which looks at broader security issues in addition to computer security.
    • June 10, 2009 Course Developed by - K.K.Nigam Security In the Computer Industry, security refers to techniques for ensuring that data stored in a computer cannot be read or compromised by any individual without having proper authorization. With the fast proliferation of Internet , the security threats are also increasing with almost the same speed. To keep a check and control the threats that are coming from the Internet is big problem. Lots of measures/software are being developed /deployed to tackle this menace.
    • June 10, 2009 Course Developed by - K.K.Nigam Security Security Management has become a very big concern for every organization throughout the world. The objective of Security Management is to maintain accuracy , integrity and safety of all information system processes and resources. Thus effective Security Management can minimize errors, frauds, and losses from such threats.
    • June 10, 2009 Course Developed by - K.K.Nigam Security
      • Types of Security Risks :
      • - Steal confidential documents
      • - Execute commands on the server host machine by an
      • intruder
        • - Gain information about the Web server's host machine
        • that will allow them to break into the system.
        • - Launch denial-of-service attacks, rendering the
        • machine temporarily unusable.
        • - The misuse of personal information knowingly or
        • unknowingly provided by the end-user.
    • June 10, 2009 Course Developed by - K.K.Nigam Security A security policy must be in place that should lay out your organization's policies with regard to: - Who is allowed to use the system - When they are allowed to use it - What they are allowed to do (different groups may be granted different levels of access) - Procedures for granting access to the system - Procedures for revoking access (e.g. when an employee leaves) - What constitutes acceptable use of the system - Remote and local login methods - System monitoring procedures - Protocols for responding to suspected security breaches
    • June 10, 2009 Thank You