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Management Information System 2

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  • 1. Amity School of Business Jitendra Tomar Amity School of Business, Amity University, UP 096-505-123-00 0120 4392867 jtomar@amity.edujitendratomar@hotmail.com MIS - Orator
  • 2. Amity School of Business • Organizations, Management & Information. • Information Technology Infrastructure.• Managing and Organizing Support Systems for the Firm. • Building Information Systems in the Digital Firm. • Managing Information Systems in the Digital Firm. • Key System Applications for the Digital Age. MIS - Curriculum
  • 3. Amity School of Business• Computers have changed the face of our business in this modern period.• Many people who use computes have no interest in its intricacies.• If the executives expect to positively contribute to business, they should understand the basics of computer technology so as to make educated judgments about both its promises and limitations. Managers should understand: – Major components of an electronic computer and their working. – Most commonly used terminology and functions of peripherals. – Major categorical classification of computers with strengths and weaknesses of each. – Key criteria when deciding what devices to purchase. – Harness IT and IS services to improve managerial processes. IT in Business
  • 4. Amity School of BusinessThe Hardware is Important.• In corporate decision making, managers consider S/W first as compared to H/W. why?• Because, business always asks “Which S/W can support our business needs?”• However, in majority of cases , organizations have already invested significant sums in their current hardware.• Therefore, organizations must consider adopting new S/W within the constraints of their H/W.• Hence, Understanding the Hardware technologies is very important in implementation of IS and IT services in the organizations. Hardware
  • 5. Amity School of BusinessWhat is a Computer?• Regardless of size, age, function, or capability, all computers have the same basic components and operate according to the same basic operations.• In recent years, every computer is expected to support Data communications.• A computer must handle four operations – Accept Data – Store Data and Instructions – Process Data – Output Data• Every Computer has these components – Input and Output devices, – The Central Processing Unit, – Internal and External Memory. Hardware
  • 6. Amity School of BusinessBusiness Evolves with Computing.• Computing technology has changed a lot over the years, and to a great extent these changes have dictated changes in business practices.• Today computer comes in wide variety of sizes, from hand- held personal aides to supercomputers.• The computers, depending upon their physical size, power, processing speed and memory size, are classified as: – Micro Computer, Mini Computer, Mainframe Computer, & Super Computer.• Also, depending upon the type of data processed by the computer, they are classified into: – Digital Computer, Analog Computer, & Hybrid Computer. Hardware
  • 7. Amity School of BusinessComputers Communicating:• Every communication made inside the computer is represented into a string of electrical signals that are in one of two states: low voltage or high voltage which the computer translates into an “off” or “on” state respectively.• Each “off” or “on” signal represents a binary digit (either 0 or 1) also called as bit. A string of an agreed upon standard number of bits is called a byte. These bits and bytes forms the basis of memory representation in computers.• An encoding scheme is fixed to convert the Human notations into Machine depiction. These encoding schemes include ASCII, EBCDIC, BCD. The conversion is required since separate number systems are followed by Humans (Decimal Number System) and Computers (Binary Number System). Hardware
  • 8. Amity School of BusinessPeek Inside The Computer:• The two of the electronic computer’s main functions are processing data into information and maintaining data and instructions intact.• The two components used for the above functions are CPU and Memory unit.• Central Processing Unit – Comprises of CU and ALU. – Few terms associated with CPU are the Microprocessor, Machine Cycle, the word.• Memory Unit – Internal Memory, External Memory, Registers Hardware
  • 9. Amity School of BusinessI Hardware
  • 10. Amity School of BusinessConsiderations in purchasing Hardware:• Decisions about purchasing computers are usually made by an organization’s IS professionals or with the help of a consulting firm.• A new trend of involving end-users in the decision making process is growing.• Companies have realized that effective use of computers depends upon whether their employees are satisfied with the computers and other equipment installed at their workplace.• What should you ask when buying hardware?  Power - Speed and RAM capacity gives greater frequency and large word size.  Expandability - Greater number of board slots for additional RAM. Hardware
  • 11. Amity School of BusinessConsiderations in purchasing Hardware:  Ports - Greater number of ports for printer, external hard disk, communication devices and other peripherals.  Ergonomics - Greater Comfort and Safety.  Compatibility • With Hardware – Compatibility with many other computers and peripheral devices from the same and other manufacturers. • With Software – Compatibility with many software packages currently used and potentially to be used.  Support - Availability of telephone and on-line support for trouble shooting. Supply of information on new upgrades.  Warranty - Longer warranty periods.  Cost - Lower Total Cost of Ownership. Hardware
  • 12. Amity School of BusinessThe Software is Important.• Hardware, the “Nuts & Bolts” of the computer and its peripheral equipment can do nothing without proper instructions.• These computer instructions are called Programs or Software.• The managers must understand the factors involved in developing, selecting, and running software. – They must keep abreast of software developments. – They must understand difference between System & Application Software. – They should be able to compare the strengths of tailor-made and off-the-shelf software. – They should have the capability to list characteristics of different software that are important for business use. Software
  • 13. Amity School of BusinessWhy Managers must be familiar with Software?• Software could automate the processes that managers and their subordinates must accomplish. The processes may include: – Word Processing, Spreadsheets, Sophisticate manufacturing control program as an example.• Time and money can be saved by using software to do what previously could be done only manually.• New function available in easy-to-use software let managers develop their own tools for daily monitoring and control of their operations. Even simple electronic spreadsheet can be used to build decision-support application.• A working knowledge of different software lets managers make informed comparison and suggestions for improving the organization’s software portfolio. Software
  • 14. Amity School of BusinessWhy Managers must be familiar with Software?• There is a strong relationship between hardware and software. Understanding compatibility and incompatibility between both is important for making decisions on purchasing hardware or software.• Similarly, some programs may not be compatible with other programs. As organizations move toward integrated systems, understanding software-to-software compatibility is extremely important.• As software supports more and more tasks, the process of deciding which software to adopt includes a growing circle of people. You need a working knowledge of software to be a contributing member of the decision-making team. Software
  • 15. Amity School of BusinessCustom-Designed Applications:• Often, an organization has a need that no existing software can satisfy.• For example, if the cost-accounting procedures of a particular company are so specific that no commercially available software can perform them, the company must develop custom- designed, or tailored software.• If the company’s information system department can do the job, the application is developed in-house.• If not, the company can hire a consulting firm to develop the application for a fee.• In recent years , the majority of custom-designed applications are developed by companies that specialize in providing consulting and software development services to other businesses. Software
  • 16. Amity School of BusinessCustom-Designed Applications - Advantages:• Good fit of features to business needs.• Good fit of features to organizational culture.• Personnel available for maintenance.• Smooth interfaces with other information systems.• Availability of special security measures.Disadvantages:• High cost.• Long wait for development if IS personnel who are busy with other projects.• Application may be too organization specific to interface with systems of other organizations. Software
  • 17. Amity School of BusinessPackaged Software:• Numerous software vendors offer large variety of off-the-shelf business software.• These are Ready-to-use software and are also called “packaged software” or “canned software.”• Many medium and small companies use packaged software for functions that are somewhat standardized across industries, such as operations in accounting, payroll, human resource management, project management, and the like.• There are many similar programs for personal use as well: writing a will, preparing taxes, or managing personal finances are few examples. Software
  • 18. Amity School of BusinessPackaged Software - Advantage:• Low cost.• High quality.• Good vendor support and upgrade for low cost.• Immediate availability.• Good documentation.Disadvantages:• Features often address only a narrow spectrum of business needs.• Purchasers may pay for features they don’t need.• Impossible to alter to meet specific needs.• Vendor may go out of business, leaving users without support. Software
  • 19. Amity School of BusinessThe Useful Software Utilities In Business Management:• Word Processors – Documenting e-Text.• Electronic Spreadsheets – Modeling tool for decision making.• Data Management Programs – up keeping the info.• Web Browsers - Connecting to the world.• Web Page Authoring – Publishing contents online.• Suites and OLE – Integrating processes.• Hypermedia – Relating information.• Multimedia – Training and Education.• Virtual Reality – Experiencing with illusion.
  • 20. Amity School of BusinessConsiderations while Purchasing Software:• When an application is developed specifically for an organization, the specific program goals and custom requirements are considered during the development process.• Such requirements include business needs, organizational culture needs, the need to interface with other systems, and performance issues such as response time.• What should you ask when procuring software?  Fitness for purpose - Try to maximize the number of needs satisfied.  Ease of learning to use – The shorter the training time, the better.  Ease of Use – The easier a program is to use, the better. Try to minimize the number of commands that need to be memorized. Software
  • 21. Amity School of BusinessConsiderations while Purchasing Software:  Compatibility with other software - Try to maximize compatibility with related software and maximize portability of data and output to other program.  Reputation of vendor • Gather background information on vendor. • Be sure vendor delivers what is promised in stipulated price  Availability and quality of support • Ask references about vendor’s experience • Look for knowledgeable staff on Web and phone support.  Networking • Facilitate many computers to share the software.  Cost • Seek detailed pricing information. • Seek the best price, while maintaining quality and performance. Software
  • 22. Amity School of BusinessTelecommunication, the livewire of business.• Telecommunication, which is essential for today’s smooth business operations, is the transmission of data and information from one point to another.• Telecommunication has brought four basic improvements to business processes:  Better Business Communication  When no physical objects need to be transferred, telecom technology has made geographical distance irrelevant.  E-mail, Voice-mail, Faxing, File Transfer, Cellular Telephony, and Teleconferencing enable detailed and instant communication.  Higher Efficiency  Many business processes which are interlinked (using systems like ERP) could be managed more efficiently.  Desired documents could be accessed at the same time by concurrent users. Communication & Networks
  • 23. Amity School of BusinessTelecommunication, the livewire of business.  Better Distribution of Data  It depends upon the requirement of the companies to plan for distributed or centralized architecture.  Data could be stored centrally or locally depending upon the necessity.  Instant Transaction  The availability of internet to millions of businesses and consumers has shifted a significant volume of business transactions to the web.  Both business and consumers can shop, purchase, and pay instantly online.  In addition to commercial activities, people can use telecommunications for online education and entertainment. Communication & Networks
  • 24. Amity School of BusinessTypes of Data Communications:• Parallel Transmission & Serial Transmission.Communication Direction:• Simplex, Half-Duplex, Full-duplex.Synchronization:• Synchronous & Asynchronous Communications.Channels & Media:• Twisted Pair, Coaxial Cable, Microwaves, Optical Fiber.Networks:• LAN, WAN.Layouts:• Tree, Bus, Star, Ring & Mesh Topologies. Communication & Networks
  • 25. Amity School of BusinessDRM Technologies – The backbone of any businesses.• DRM Technologies have changed the way almost every industry conducts business.• It has also created an information & Knowledge industry.• It is behind the successful use of ATMs, increased efficiency in retail stores, almost every marketing effort, and the numerous online search engines and electronic storefronts on the WWW.• Its combination with interactive web pages, made an immense contribution to e-commerce.• Without them, there would be no online banking, no online consumer catalogs, no online stock brokerages, and no online chat rooms.• In virtually every type of business today, managers must understand the power of DRM technologies. Data Resource Management
  • 26. Amity School of BusinessData Resource Management - Defined.• It could be stated as managerial activity that apply information system technologies like Database, Data-warehouse, Data- mining and other data management tools for the task of managing organizations data resources to meet the information needs of their business stakeholders.• It deals with managerial implications of using data resource management technologies and methods to manage an organization’s data assets to meet business information requirement. Data Resource Management
  • 27. Amity School of BusinessDatabase:• It is an integrated collection of logically related data elements.• It consolidates records previously stored into separate files into a common pool of data elements that provides data for many applications.• The data stored in a database are independent of the application programs using them and the type of storage devices on which they are stored.• Thus, database contain data elements describing entities and relationships among entities.Types of Databases:• Operational Databases.• Distributed Databases.• External Databases.• Hypermedia Databases. Data Resource Management
  • 28. Amity School of BusinessDatabase Structures:• Traditional File System.• Hierarchical Structure.• Network Structure.• Object Oriented Structure.• Relational Structure. Data Resource Management
  • 29. Amity School of BusinessData-Warehouse:• A Data Warehouse stores data that have been extracted from the various operational, external, and other databases of an organization.• It is a central source of Data that have been cleaned, transformed, and cataloged so it can be used by managers and other business professionals for data mining, online analytical processing, and other forms of business analysis, market research and decision support.• A data warehouse may be sub-divided into data-marts, which hold subsets of data from the warehouse that focus on specific aspects of a company, such as a department or a business process. Data Resource Management
  • 30. Amity School of BusinessExternal Data(Because it is anopen system) Performance Report DATA WAREHOUSE (Huge Collection of Data) Collection of Different Data Marts.Transaction Data Business Analysis(Obtained fromdifferent TPS) Data Resource Management
  • 31. Amity School of BusinessPhases in building Data-Warehouse:• Extraction Phase. Builders creates the files from transactional databases, save them on server which will hold the data warehouse• Cleansing Phase Modify data to allow insertion. New Delhi could be Stated as Dli, ND, Dlh, Ndelhi, NewDel, etc & thus the information is checked for data inconsistencies by checking data integrity rule.• Loading Phase Structure of a Database is build up and data is kept accordingly. Data Resource Management
  • 32. Amity School of BusinessData-Mining:• Data Mining is technique which leads to the major use of data warehouse & databases.• In data-mining, data in a data warehouse are analyzed to reveal hidden patterns, correlations and trends in historical business activity.• This helps managers to make decisions about strategic changes in business operations to gain competitive advantages in the market place.• Data Mining software uses advanced pattern recognition algorithms, as well as a variety of mathematical and statistical techniques to sieve through mountains of data to extract previously unknown strategic business information. Data Resource Management
  • 33. Amity School of BusinessData-Mining:• It is a process of – selecting, – exploring and – modeling large information, from the sea of information available in any business environment.• It is a process applied to discover the previously unknown relationships from the data & information already existing with the organization. These relation might not be thought of otherwise in regular course of working. Data Resource Management
  • 34. Amity School of BusinessData Mining – Few Recognized Meaningful Patterns:• Consumer Clustering - Common characteristics of customers who buy similar product and/or service.• Consumer Churn - Identify why customers are switching to competitors.• Fraud Detection - Identify which characteristic of transaction is most fraudulent.• Direct Marketing - Which Prospective clients should be included in the mailing list to obtain the highest response rate.• Interactive Marketing - What should be put up on a website?• Market Basket Analysis - What products/ services are commonly purchased and on what days.• Trend Analysis - Difference between typical customer this week and typical customer last week. Data Resource Management