Management Information System

1. Management
Information
System
By:- Ms Garima Singhal

2. Unit- 01
Management Information Systems - Need, Purpose and
Objectives, Contemporary Approaches to
MIS, Information as a strategic resource, Use of information
for competitive advantage, MIS as an instrument for
organizational change. Information Technology –
Characteristics and emerging
trends, IT Capabilities and their organizational impact, IT
enabled services. Transaction Processing
System: Characteristics and its importance

3. Management Information System
A group of elements is called a system… These
elements are called sub-systems. All sub-systems
are grouped together to serve a common purpose.
System:
The word information is derived from the
Latin word 'informare which means "give form
to°. Information is data that has been
processed and retrieved in such a way that it
is meaningful to the person who receives it.
Information:
Management can be defined as the procedure of
planning and regulating the operations of an
organization, Framing of policies, their execution
and staffing of employees are its key tasks. The
management procedure can be analyzed with the
help of the manager's actions. These are as
follows:
1) Planning
2) Organizing
3) Staffing
4) Directing
5) Coordination
6) Controlling
Management:

5. Management information systems (MIS) provide information in the form of reports and
displays to managers and many business professionals. For example, sales managers may use
their networked computers and Web browsers to receive instantaneous displays about the
sales results of their products and access their corporate intranet for daily sales analysis
reports that evaluate sales made by each salesperson.

6. Following are some definitions of MIS:
According to G.B. Davis, "A definition of
management information system, as the term is
generally understood, is an integrated, user-
machine system for providing information to support
operations, management, and decision-making
functions in an organization. The system utilizes
computer hardware and software, manual
procedures, models for analysis, planning, control
and decision-making and a database“
According to Kenneth Hamlett, "Information system
refers to the practice of integrating computer
systems, hardware and software used to meet an
organization's strategic goals".

7. Categories of Management Information Systems
A management information system is a broad term that incorporates many specialized systems. The major types
of systems include the following:
•Executive Information System (EIS): Senior management uses an EIS to make decisions that affect the entire
organization. Executives need high-level data with the ability to drill down as necessary.
•Marketing Information System (MkIS): Marketing teams use MkIS to report on the effectiveness of past and
current campaigns and use the lessons learned to plan future campaigns.
•Business Intelligence System (BIS): Operations use a BIS to make business decisions based on the
collection, integration, and analysis of the collected data and information. This system is similar to EIS, but both
lower-level managers and executives use it.
•Customer Relationship Management System (CRM): A CRM system stores key information about customers,
including previous sales, contact information, and sales opportunities. Marketing, customer service, sales, and
business development teams often use CRM.
•Sales Force Automation System (SFA): A specialized component of a CRM system that automates many
tasks that a sales team performs. It can include contact management, lead tracking and generation, and order
management.
•Transaction Processing System (TPS): An MIS that completes a sale and manages related details. On a basic
level, a TPS could be a point of sale (POS) system or a system that allows travellers to search for a hotel and
include room options, such as price range, the type and number of beds, or a swimming pool, and then select
and book it. Employees can use the data created to report on usage trends and track sales over time.

8. Characteristics of MIS
Enhances Productivity:
Flexible:
Management Oriented:
Coordinated System:
MIS is centrally
synchronized so that all its
components such as data
processing, office
automation, intelligence
and decision support
systems, are developed
and managed in a planned
and coordinated manner.
MIS is designed from the
top to bottom but does
not necessarily start from
management needs or
the overall business
goals.
MIS as a whole improves the
efficiency of an organization. It
helps in efficient document
preparation, provides a high
level of services to individuals
and external organizations,
helps in the early detection of
warnings about internal and
external problems, and also in
identifying opportunities. It
assists in the overall
management of the
organization and improves the
manager's ability to deal with
unexpected problems
A MIS must be one that
can be easily modified to
changing circumstances. It
must be capable of
expansion, accommodate
growth or new types of
processing activities, and
contract as and when it’s
required.

9. Need of MIS
The Need of MIS is due
to following reasons
2
3
1
Information availability for production and inventory. While Providing information about the current economic
status of the company. And Faster implementation of results available from a reliable data source.
Fast and accurate delivery of information, as and when needed. While Processing
gathered data and developing information from it.
Efficiently storing and managing data of all business functional
areas.
To implement MIS, organizations should
have clarity about the need for information at
different levels of management.

10. Purpose and Objectives of MIS
Store the Information Retrieval of Information Dissemination of Information
Data Capturing Processing of Data

11. Nature of MIS
Exception-Orientation:
After making MIS action-oriented, it was recognized
that there was a need for some specific or selective
approach to action or analysis of data. So, MIS was
modified to cater to the exceptional situations of
business instead of routine matters.
Database Orientation:
Like our environment, every system is dynamic and
so is MIS. MIS was thus developed to handle
requirement-based exception reporting either by
individual groups or even by the organization. In order
to fulfil this requirement, a common database was
prepared to be used by various groups. Thus, the idea
of MIS based on databases has proved to be an
effective tool.*
Report-Orientation:
The sole purpose Or idea of MIS has changed greatly in
today's time with the changing requirement of the user. A user
is interested in the exact information rather than dealing with
voluminous data. Different individuals can extract different
reports from the same data depending on their individual
requirements. MIS, currently, is an individual-oriented concept.
End-user Orientation:
After the above four changes were implemented to the concept
of MIS, the concept of end-user computing, using multiple
databases, came forward. This brought the nature of
decentralization of MIS and made the end user independent
from computer professionals or experts. This became possible,
as now the user was equipped with MIS able to extract
information from the common database and use it specifically for
various reports.
Action-Orientation:
The working of MIS further altered due to the
changed need of information. Information
gathered should lead to some action,
decision, investigation or research.
Academic Discipline Orientation:
The principles of various academic fields are used for designing
MIS and in preparation for its different modules. The main
element of MIS is information gathering for analysis. This
analysis depends on many academic disciplines like theories
and principles and also concepts from management,
organization behaviour, computer science, psychology and
human behaviors.

12. Role of MIS in Business
MIS is very useful in business and it plays the following roles:
(1) MIS is used to minimize risk in the decision-making process.
(2) It is used to process the available data and subsequently generate information from it.
(3) Information produced by MIS is used for efficient decision-making for different business aspects.
(4) Managers utilize information produced by MIS in various functional areas of business.
(5) Data and information provided by MIS are used for research and analysis.
(6) It is used to obtain information about the financial status of a business organization.
(7) It is used to generate corporate business reports.
(8) The human resource manager can obtain information regarding human resource requirements, salary
and wages of the workforce, performance appraisal of personnel, training of the workforce, promotion,
absenteeism, etc. This information can be further utilised by human resource policymakers.
(9) Data about production provided by MIS is utilised by management in decision making like capacity
utilisation, break-even analysis, rejections rate per batch, breakdown frequency, etc.
(10)MIS also produces information for decision-making in the sales department about product pricing,
promotional campaigns, segmentation, demand for the specific product, sales in the specific region etc.
This information can be utilized for the prompt and efficient functioning of the sales force of the company.

13. Functions of MIS
After data collection, storage and processing, MIS
provides the data to the managers for managerial
use.
Present Information to Managers
04
03 The second main task of MIS is to store and process
the data in a convenient manner for managerial use.
Store and Process Data
02
Database refers to the collection of data stored at a
convenient location with easy access for information
processing by various individuals or groups.
Database:
01 The main function of an MIS is to identify the information
required in decision-making and organize it into a database.
The information is extracted from the vast data available to
organizations such as personnel records, customer
information, information about competitors, sales data,
accounting data, etc.
Collect Data:

14. Components of MIS
Personnel refer to the people who use MIS to
achieve organisational business goals. They may be
experts, managers or users. The two activities which
are influenced by MIS are planning and may be
experts, managers or users. decision-making.
Personnel:
04
03 A set of rules or guidelines that are established by
the organization for use in a computer-based
information system is referred to as procedures and it
varies from organization to organization and even
from one department to another.
Procedures:
02
There are certain programs and applications which
transform data into machine-readable language.
These are referred to as software. ERP and CRM are
types of software which are used for information
processing. ERP software package acts as a monitor
for all functions of an organization which combines all
data and processes. This integration is achieved by
using multiple components of software and hardware.
The main advantage of this is the use of the single
unified database.
Software:
01
The different input and output devices are used for
feeding the data and displaying the information as and
when required, these devices are called hardware.
Keyboard, scanners, and mouse are the input devices.
Monitor, printer, network devices, etc. are examples of
output devices. Thus, hardware is the physical part of
MIS which helps in organisational data maintenance.
Hardware:

15. Structure of MIS
MIS supports management activity. The
structure of the Information System can
divide according to the hierarchy of
management planning & control activities.
Management’s Activity
Strategic Planning
Management Control & Tactical
Planning
The Structure of MIS can also be based
on the different organizational functions
that use Information.
Organisational Functions
Sales and Marketing
Subsystems
Logistics Systems
Operational Planning and
Control
Transaction Processing
Finance & Accounting
Subsystem
Production Systems
Personnel System

16. Contemporary Approach to MIS
Technical MIS are mathematical or systematic models that help to study MIS and the hardware associated with it.
Computer Science plays a major role in the technical approach and enables MIS to compute, store, and retrieve
large volumes of data. Management Science helps in taking decisions and specifying management practices.
Operations Research aims at optimizing management resources.
Behavioral problems in an organization cannot be handled by mathematical models or using a technical
approach. In the behavioral approach, Sociology plays a major role to specify how MIS impacts groups,
organizations and society as a whole. Psychology specifies how each stakeholder responds to information
systems and cognitive models of human reasoning. Political Science deals with a political scenario in the
country or the organization.
A production system required people who can work on equipment. Thus, an organization is not a technical
or social system, but a combination of both. This approach explains the interactions between machines
and people at the workplace and specifies their tasks and the organizational structure.
Behavioral Approach
Technical
Approach
Socio-Technical Approach

17. Advantages of MIS
60% 40%
Increased Efficiency
One of the primary advantages of MIS is
that it can help organizations become
more efficient.
Improved Decision-Making
MIS systems provide organizations with
real-time data and analytics, which can
help managers make more informed
decisions.
Enhanced Communication
MIS systems can improve communication
within an organization.
Better Data Management
MIS systems can help
organizations better manage
their data
Competitive Advantage
MIS systems can provide organizations with a competitive
advantage. By using data and analytics to make informed
decisions, organizations can become more efficient, more
responsive to customer needs, and better able to compete in the
marketplace.
The Main
advantages of
MIS are:
Minimises Information Overload

18. Disadvantages of MIS
60% 40%
Costly Implementation
There may be expenses related to purchasing software,
hardware, and training employees to use the system.
This can be a significant investment for some
organizations.
Technical Issues
MIS systems can experience technical issues, such as
system crashes or data loss.
Security Risks
MIS systems can also pose security risks. If the system
contains sensitive data, such as customer information or
financial records, it could be targeted by cybercriminals.
Dependence on Technology
MIS systems are dependent on technology, which means
that if the system goes down, employees may not be able
to perform their job duties. This can lead to lost productivity
and revenue for the organization.
Potential for Human Error
Finally, MIS systems can be prone to human error. If employees
enter incorrect data or fail to update the system in a timely
manner, it can lead to inaccurate data and decision-making.
The Main
disadvantages
of MIS are:
Takes into Account Only Qualitative Factors

19. Factors Influencing MIS
1} Integration of MIS into managerial functions of the business is most important to ensure the focus of MIS on major
aspects of the business.
2} For efficient data processing and analysis, an appropriate information processing technology must be adopted.
Success Factors
1) When MIS is used just as a data processing unit instead of an information processing and decision-making system.
2) When MIS is not designed to provide the information as required by managers instead it provides general information
called by function.
Failure Factor

20. Technology of MIS
Staffing Support
Expertise/Specialization
CIO Level Consulting
Strategic Planning
and Guidance
Rule provisioning/updating,
Configuration backup
Network integration means
connecting different
resources of the business
together using a network
so that workflow and
productivity can be
improved with cost
reduction also. the network
should be reliable, flexible,
and secure according to
changing business needs.
Network integration
streamlines the workflow,
improves customer service,
increases productivity and
reduces operational costs.
01 02 03
04
IT
Consulting
Remote
Management
Managed
Security
Network
Integration
Projects
Strategic IT
Consulting Services
Senior Level Network Consulting
Server/Device
Maintenance
Firmware updates
Hardware
updates/replacement

22. Information
as a
Strategic
Resources
Information is a resource for an organization as well as an individual. However, all
information is not useful. Only some can be considered as resources depending on
management decisions. This management comprises a group of people who are
placed at various levels in an organization with a specific task and goal
accomplishment. The level determines the nature and complexity of the job. The
concepts of information are applicable to all organizations. The people organization
model is based on functions, products, projects and communication matrix and the
unique information needs of each one of them. Depending on the type and level of an
organization, it becomes imperative to understand the use, nature and value of
information, the media and the reporting structure. The different methods of data
collection and their sources have various difficulties. These must be acknowledged
by MIS as they will have an impact on the quality of input data. Therefore, to monitor
the quality of the input data various checks and controls must be introduced. The
nature, type and quality of information depend on the people, business and
infrastructure of an organization.

23. KEY STRATEGIES IMPLEMENTED AS A STRATEGIC RESOURCE
LEVERAGE
INVESTMENT
IN
INFORMATION
TECHNOLOGY
RAISING
BARRIERS
TO ENTRY
CREATING
SWITCHING
COSTS
LOCK IN
CUSTOMERS
AND
SUPPLIERS
PROMOTING
BUSINESS
INNOVATION
IMPROVING
BUSINESS
PROCESS
By increasing investing
in information
technology, a firm
becomes capable in
building strategic IT
capabilities which help
it take advantage of
strategic opportunities.
The complexity of the
existing technology of
a big company acts as
a deterrent towards
companies willing to
enter the industry or
the ones already
existing in the same
industry.
One of the key
elements in strategic
information is the
creation of switching
costs in the inter-
relationships b/w a
firm and its
customers.
It helps to lock in
customers and
suppliers in a
valuable new
relationship.
The development of
unique product is
enabled by investments
system technology. It
helps to expand
business to new sectors
of existing market.
Information helps in
improving the
business processes
of an org.
Improve product
quality and customer
service.

24. Use of Information for Competitive
Advantage
You can simply impress your audience and add a unique
zing and appeal to your Business using Information
Technology.
CEO’s attitude towards
Information Technology.
Use Information
Technology to View
Business Problems from
Another Perspective.
Use Information
Technology to bridge the
gap between
Businesspeople and
Technical People.
Use Information
Technology in Creative
Designing.

25. MIS as an Instrument for The Organizational Change
1) The structure of the organization
2) The operations and workforce of an organization
3) The working hours and practices of an organization.
There are several causes of the failure of IT implementation in an organization. These may include
inwardly focused cultures, low levels of trust, lack of teamwork, policies, bureaucracy, lack of
leadership etc. The root causes for the failure of IT implementation are often not associated with
high costs, poor software or user requirements not being met. A proper change management
framework and method are essentially required to address these root causes and overcome them.
Technological
Push
Business
Environment
Pull
1) Globalization
2) Knowledge and information
3) Transformation of Business
Enterprise
4) Organizational Relationship
People
Resistance
Organisational change is the modification in the structure, processes, or
products of an organization, this change impacts the manner in which
work is done and also has significant impacts on the people working in
an organization. An organizational change can be brought about in the:
Reasons for Change:-

26. Actors In Change
2. Technical Experts who
develop MIS
1. Top Manager who
orders MIS and Its
Implementation
3. Individual Users to
Work on MIS

27. Information Technology
Information
Technology
Information
System
Work System
Information technology (IT) is the study, design,
development, implementation, support or
management of computer-based information
systems, particularly software applications and
computer hardware.'
According to the Information
Technology Association of America
IT manages the utilization of
computers and software to
exchange, collect, protect,
develop, communicate, and
safely retrieve information
from various resources.

28. Components of IT
Software
Data
People
Hardware
Network

29. Advantages of IT
60% 40%
Globalisation
Communication
Cost Effectiveness
Bridging Culture Gap
All Time
The Main
advantages of
IT are:
Creation of New Jobs

30. Disadvantages of IT
60% 40%
Unemployment
Technical Issues
Privacy and Security Risks
Dependence on Technology
Lack of Job Security
The Main
disadvantages
of IT are:
Dominant Culture

31. Application of IT
Process Mining Operated Devices
Corporate
For Example:- E-Governance
Governance
MRI can be used to a series of pictures of the human body
to diagnose problems in the body.
Medicine
For Example:- Youtube / Instagram/ Socal Media Apps
Entertainment
For example:- BioTehchnology
Science and Engineering
1) Access to a variety of learning resources
2) Any-time Learning
3) Collaborative Learning
Education
For example:- Cash Registers to MIS
Business and Commerce
1) Customer Relations
2) Business Operations
3) Industrial Productivity
4) Business Mobility
Business and Industry

32. Impact of IT on Business
The conventional way of using IT in an
organization is to determine the business
requirements and then develop the required
I system. The awareness of IT capabilities
influences the process design. When the
product development team uses computer-
aided design, the structure of the product
development process can be affected. The
role of IT in process design must be
determined early in the design process.
Using an enabling IT service has been
possible by brainstorming about redesign
objectives and existing processes. The use
of IT enables effective management of tasks
in organisations.
Information Technology has
impacts on different aspects
of a business, like the
competitiveness and the
dynamic capability of an
organization.
85%
85%
Accounting
70%
Finance
65%
Human
Resources
40%
Marketing
55%
Sales

33. Multiple Levels in IT-based Capabilities of Organization
Middle Level
IT application systems level is the level
between the technology functionality
level and IT strategic capability level,
The application system is the
component of different technologies in
this level.
Top-Level
At this level, IT capabilities are defined in terms of the strategic
values and the purpose of this level is to analyze the capability of IT
resources to support the business goals. Therefore, this level is
called IT strategic capability level.
Lower Level
This level defines IT capabilities in
terms of the functional abilities of
specific technology components or
features. This level is also known as
technology functionality level.
There are different
classifications of IT-based
capabilities on the basis of the
aggregation level of IT
resources. These include:

34. IT Enabled Services
The usage of IT in various fields (i.e., banking and finance,
telecommunications, insurance etc.).
ITES is an abbreviated form of Information Technology Enabled
Service. Its application areas are finance, HR, administration,
healthcare, telecommunication, manufacturing, etc.
1. Information Technology Enabled Services (ITES) are web-
enabled services, remote services, or teleworking services.
ITES helps global companies meet their business goals and
provide a valuable service with the aid of information
technology. ITES covers the entire gamut of operations that
exploit information technology to improve an organization’s
efficiency.
ITES

35. Below Listed are the
important IT Enabled Services
ITES, or Information Technology Enabled Services, refers to
outsourcing processes in which the provider
utilizes telecommunication technologies and the Internet to
provide those services, mainly for companies in non-
information technology (IT) fields.
Call Centre/ BPO/
Telemarketing
Helpdesk/Customer Support
Centres
Data
Warehouse/Transcription
Centers
GIS Mapping for Transport
tracking/Electronic
Distribution
Modern PowerPoint

36. Call Center
A call Centre is a centralized department that handles Call centres' located either
within an organization or outsourced to another company that specializes in handling
calls. The three most common types of call centres are inbound, outbound and
blended call centres.

38. Call center teams and structure
Call center agents. Agents are the key
point of contact between an organization
and its customers, as agents talk directly
with customers and handle their calls.
Depending on the type of call center, agents
may handle either incoming or outgoing
calls. Call center agents typically have
customer service skills, are knowledgeable
about the organization and are creative
problem-solvers.
Team leaders. Many call centres
split agents into smaller groups
for easier management. Team
leaders help call centre agents
deescalate conversations, solve
issues or answer questions from
customers or the agents
Call center directors. While team leaders
run smaller teams, call center directors run
operations and ensure everything runs
smoothly. Directors, or managers, set the
metrics and expectations for agent
performance to ensure they meet the
standards for customer expectations and
keep the center running smoothly.
Quality assurance team. Quality
assurance (QA) is a practice that
ensures products or services
meet specific requirements, and
QA teams put this into practice.
These teams can monitor and
evaluate agent phone calls in call
centers to ensure the call quality
and CX are up to the center's
standards. In some cases, call
center directors run the QA
checks.
IT personnel. IT professionals
are critical to call centers --
especially those with remote
operations. And while IT
personnel aren't exclusive to call
centers, they ensure agents'
technology and tools are up to
date to keep the call center
running smoothly
Many different roles make up call center teams, including agents, team leaders and IT personnel.

40. Business Process Outsourcing
Many businesses, from small startups to large companies, opt
to outsource processes, as new and innovative services are
increasingly available in today's ever-changing, highly
competitive business climate.
Broadly speaking, companies adopt BPO practices in the two
main areas of back-office and front-office operations. Back
office BPO refers to a company contracting its core business
support operations such as accounting, payment processing,
IT services, human resources, regulatory compliance, and
quality assurance to outside professionals who ensure the
business runs smoothly.
By contrast, front-office BPO tasks commonly include
customer-related services such as tech support, sales, and
marketing.
BPO

42. Process of
BPO

43. Components of BPO
The Organization or an individual
The Service Provider
The outsourced processes or services are known as
the project
Vendor
Clients
Projects

44. Functions of BPO
Telemarketing Customer Care Services Outbound/Inbound Services
Web Development Application
Development

45. Business Process Outsourcing Types: Supply Chain and Services
Back-Office BPO
Back-office business process outsourcing involves contracting services that are not
customer-facing. These services include IT, accounting, business process automation,
human resources, quality assurance, and more. Subtypes of BPO have emerged,
including IT-Enabled Services (ITES) BPO, such as IT analysts, Legal Process
Outsourcing (LPO), such as paralegals or advisors, and Knowledge Process
Outsourcing (KPO), such as outsourcing an individual who understands and can
implement/manage a specific program. By outsourcing these tasks, businesses can
focus on their core mission rather than engaging in time-consuming and expensive
internal training and onboarding.
Front-Office BPO
This term refers to customer-facing services, including tech support, customer service,
sales, and marketing. These services are frequently outsourced due to technical
knowledge requirements and can be accomplished off-premises. By outsourcing web
development, customer support lines, or any front office services, businesses can
benefit from specialized talent with unique knowledge and cut costs.

46. Business Process Outsourcing Types: Location of Vendor
Offshore BPO
Offshoring occurs when services are outsourced overseas. This is incentivized by available
resources, political stability, lower labour costs, various tax savings, and more. A common example
is companies outsourcing their customer service departments by contracting with call centre vendors
across the world. As a result, businesses can access qualified labour and services at a lower rate,
which helps reduce overhead costs, and potentially lower product or service prices for the end user.
Nearshore BPO
Nearshore business process outsourcing is the act of contracting the services of vendors in
countries that are geographically closer. For businesses in the US, this could include Canada and
Mexico, as well as Central America. This form of outsourcing usually occurs when specialized skills
are available at a lower cost in a nearby nation, but certain factors, such as time zones or language
proficiencies, need to be taken into account. An example of this is when a Silicon Valley company
outsources IT and coding services to specialists in Canada, or when a Canadian company
outsources marketing services from a marketing firm in the U.S.
Onshore/Domestic BPO
Domestic outsourcing is exactly as it sounds: the act of outsourcing and receiving services within
the boundaries of a country. In other words, a vendor in one city, state, or province can be
contracted for services provided to a business in another city, state, or province. This can be
prompted by a number of factors, such as the availability of specialized skills in certain regions, or
local differences in rates and costs.

47. Advantage/Disadvantage of BPO

48. The BPO
Industry in
India
In India, Business Process Outsourcing (BPO) is the fastest-
growing segment of the ITES (Information Technology
Enabled Services) industry. Factors such as economy of
scale, business risk mitigation, cost advantage, utilization
improvement and superior competency have all led to the
growth of the Indian BPO industry. Business process
outsourcing in India, which started around the mid-90s, has
now grown by leaps and bounds.
India is now the world’s favoured market for BPO companies,
among other competitors, such as Australia, China, the
Philippines and Ireland. The BPO boom in India is credited to
cheap labour costs and India's huge talent pool of skilled,
English-speaking professionals. Research by the National
Association of Software Services and Companies
(NASSCOM) has revealed that quality orientation among
leading BPO companies, 24/7 services, India's unique
geographic location and the investor-friendly tax structure in
India have all made the BPO industry in India very popular.

50. Emerging Trends in
Information Technology
Artificial
intelligence
is poised as a tool of choice for
businesses and solution providers.
As is often seen with social media,
AI, combined with machine
learning, deep learning and neural
networks, can be a powerful
combination. Businesses can use
AI to achieve cost-saving benefits,
streamline business processes,
improve the customer experience,
enable more efficient
communications through chatbots,
increase customer satisfaction and
provide insight into purchasing
behaviour to inform decision-
making.
AI

51. Stuart Russell and Peter Norvig then proceeded to publish, Artificial Intelligence: A Modern Approach (link
resides outside IBM), becoming one of the leading textbooks in the study of AI. In it, they delve into four
potential goals or definitions of AI, which differentiates computer systems on the basis of rationality and
thinking vs. acting:
Human approach:
•Systems that think like humans
•Systems that act like humans
Ideal approach:
•Systems that think rationally
•Systems that act rationally
Alan Turing’s definition would have fallen under the category of “systems that act like humans.”
In its simplest form, artificial intelligence is a field, which combines computer science and robust datasets, to
enable problem-solving. It also encompasses sub-fields of machine learning and deep learning, which are
frequently mentioned in conjunction with artificial intelligence. These disciplines are comprised of AI algorithms
which seek to create expert systems which make predictions or classifications based on input data. Today, a
lot of hype still surrounds AI development, which is expected of any new emerging technology in the market.
As noted in Gartner’s hype cycle (link resides outside IBM), product innovations like self-driving cars and
personal assistants, follow “a typical progression of innovation, from overenthusiasm through a period of
disillusionment to an eventual understanding of the innovation’s relevance and role in a market or domain.” As
Lex Fridman notes here (01:08:05) (link resides outside IBM) in his MIT lecture in 2019, we are at the peak of
inflated expectations, approaching the trough of disillusionment.

52. Key Components of AI

53. Features of AI

54. Artificial intelligence Applications
There are numerous, real-world applications of AI systems today. Below are some of the most common examples:
•Speech recognition: It is also known as automatic speech recognition (ASR), computer speech recognition, or speech-to-
text, and it is a capability which uses natural language processing (NLP) to process human speech into a written format. Many
mobile devices incorporate speech recognition into their systems to conduct voice searches—e.g. Siri—or provide more
accessibility around texting.
•Customer service: Online virtual agents are replacing human agents along the customer journey. They answer frequently
asked questions (FAQs) around topics, like shipping, or provide personalized advice, cross-selling products or suggesting
sizes for users, changing the way we think about customer engagement across websites and social media platforms.
Examples include messaging bots on e-commerce sites with virtual agents, messaging apps, such as Slack and Facebook
Messenger, and tasks usually done by virtual assistants and voice assistants.
•Computer vision: This AI technology enables computers and systems to derive meaningful information from digital images,
videos and other visual inputs, and based on those inputs, it can take action. This ability to provide recommendations
distinguishes it from image recognition tasks. Powered by convolutional neural networks, computer vision has applications
within photo tagging in social media, radiology imaging in healthcare, and self-driving cars within the automotive industry.
•Recommendation engines: Using past consumption behaviour data, AI algorithms can help to discover data trends that can
be used to develop more effective cross-selling strategies. This is used to make relevant add-on recommendations to
customers during the checkout process for online retailers.
•Automated stock trading: Designed to optimize stock portfolios, AI-driven high-frequency trading platforms make thousands
or even millions of trades per day without human intervention.

55. The simplest way to define ERP is to think about all the
core business processes needed to run a company:
finance, HR, manufacturing, supply chain, services,
procurement, and others. At its most basic level, ERP
helps to efficiently manage all these processes in an
integrated system. It is often referred to as the system
of record of the organization.
Yet today’s ERP systems are anything but basic and
have little resemblance to the ERP of decades ago.
They are now delivered via the cloud and use the latest
technologies – such as artificial intelligence (AI) and
machine learning – to provide intelligent automation,
greater efficiency, and instant insight across the
business. Modern cloud ERP software also connects
internal operations with business partners and networks
around the world, giving companies the collaboration,
agility, and speed they need to be competitive today.

58. Benefits of
ERP

59. Lower costs
Business owners get to cut IT and staff costs. A unified system works best in large enterprises because users only need to
learn how to use it once instead of learning multiple applications. Each employee only uses the features they need.
Absolute transparency
Management personnel can keep track of inventory, including future deliveries. This allows you to more effectively manage
budgets and adhere to the preferred economic strategy. The availability of data in one place improves communication
between departments and allows you to make data-driven decisions and explain their logic.
More planning and reporting opportunities
A single system is able to generate accurate reports and provide useful real-time analytics. For example, income and cash
flow plans and reports. Operations analytics facilitate essential decision-making.
Full personalization
Modular architecture better adapts to your specific business goals. Each component can exist as a standalone application or
integrate with other modules.
Efficiency boost
With ERP, the time, effort, and money invested in a business project can be all cut by eliminating routine and repetitive work.
You get more time to focus on the most important tasks directly related to your position in the company.
Better customer service
Keeping customer information in one system makes it easier for sales reps to optimize relationships with the target audience.
You are enabled to focus on retention and acquisition, analyze marketing efforts, and develop new strategies based on
analytics and reports.
High integrity and security of data
Business owners and management can control access to data. A single system ensures security without causing conflicts
between sources. Local software backs up sensitive information. If the data is stored in the cloud, it makes it harder to steal
it.

60. Lower costs
Business owners get to cut IT and staff costs. A unified system works best in large enterprises because users only need to learn
how to use it once instead of learning multiple applications. Each employee only uses the features they need.
Absolute transparency
Management personnel can keep track of inventory, including future deliveries. This allows you to more effectively manage
budgets and adhere to the preferred economic strategy. The availability of data in one place improves communication between
departments and allows you to make data-driven decisions and explain their logic.
More planning and reporting opportunities
A single system is able to generate accurate reports and provide useful real-time analytics. For example, income and cash flow
plans and reports. Operations analytics facilitate essential decision-making.
Full personalization
Modular architecture better adapts to your specific business goals. Each component can exist as a standalone application or
integrate with other modules.
Efficiency boost
With ERP, the time, effort, and money invested in a business project can be all cut by eliminating routine and repetitive work. You
get more time to focus on the most important tasks directly related to your position in the company.
Better customer service
Keeping customer information in one system makes it easier for sales reps to optimize relationships with the target audience. You
are enabled to focus on retention and acquisition, analyze marketing efforts, and develop new strategies based on analytics and
reports.
High integrity and security of data
Business owners and management can control access to data. A single system ensures security without causing conflicts
between sources. Local software backs up sensitive information. If the data is stored in the cloud, it makes it harder to steal it.

61. Cloud Computing:-
One of the most talked about concepts in
information technology is cloud computing.
Cloud computing is defined as the utilization of
computing services, i.e. software as well as
hardware as a service over a network.
Typically, this network is the Internet.
Cloud computing offers 3 types of broad
services mainly Infrastructure as a Service
(IaaS), Platform as a Service (PaaS) and
Software as a Service (SaaS).
Some of the benefits of cloud computing is as
follows:
•Cloud computing reduces the IT infrastructure
cost of the company.
•Cloud computing promotes the concept of
virtualization, which enables servers and
storage devices to be utilized across
organizations.
•Cloud computing makes maintenance of
software and hardware easier as the
installation is not required on each end user’s
computer.

63. Features of Cloud Computing
1. Resources Pooling
It means that the Cloud provider pulled the computing resources to provide services to multiple customers with
the help of a multi-tenant model. There are different physical and virtual resources assigned and reassigned
which depends on the demand of the customer.
The customer generally has no control or information over the location of the provided resources but is able to
specify location at a higher level of abstraction
2. On-Demand Self-Service
It is one of the important and valuable features of Cloud Computing as the user can continuously monitor the
server uptime, capabilities, and allotted network storage. With this feature, the user can also monitor the
computing capabilities.
3. Easy Maintenance
The servers are easily maintained and the downtime is very low and even in some cases, there is no downtime.
Cloud Computing comes up with an update every time by gradually making it better.
The updates are more compatible with the devices and perform faster than older ones along with the bugs which
are fixed.
4. Large Network Access
The user can access the data of the cloud or upload the data to the cloud from anywhere just with the help of a
device and an internet connection. These capabilities are available all over the network and accessed with the
help of the internet.
5. Availability
The capabilities of the Cloud can be modified as per the use and can be extended a lot. It analyzes the storage
usage and allows the user to buy extra Cloud storage if needed for a very small amount.

64. 6. Automatic System
Cloud computing automatically analyzes the data needed and supports a metering capability at some level of
services. We can monitor, control, and report the usage. It will provide transparency for the host as well as the
customer.
7. Economical
It is a one-time investment as the company (host) has to buy the storage and a small part of it can be
provided to the many companies which saves the host from monthly or yearly costs. Only the amount which
is spent is on the basic maintenance and a few more expenses which are very less.
8. Security
Cloud Security, is one of the best features of cloud computing. It creates a snapshot of the data stored so
that the data may not get lost even if one of the servers gets damaged.
The data is stored within the storage devices, which cannot be hacked and utilized by any other person. The
storage service is quick and reliable.
9. Pay as you go
In cloud computing, the user has to pay only for the service or the space they have utilized. There is no
hidden or extra charge which is to be paid. The service is economical and most of the time some space is
allotted for free.
10. Measured Service
Cloud Computing resources are used to monitor and the company uses it for recording. This resource
utilization is analyzed by supporting charge-per-use capabilities.
This means that the resource usage which can be either virtual server instances that are running in the cloud
are getting monitored measured and reported by the service provider. The model pay-as-you-go is variable
based on the actual consumption of the manufacturing organization.

65. Cloud
Computing
Service
Model

66. Cloud Computing Deployment Models

67. THANK YOU
Unit 01 Ends Here