Information Management unit 1 introduction

INFORMATION MANAGEMENT
Unit 1: Introduction
Prepared and presented by,
Ganesha Pandian N

Content
• Data, Information, Intelligence
• Information Technology
• Information System, evolution, types based on functions and
hierarchy
• System development methodologies
• Functional Information systems
• DSS, EIS, KMS and GIS
• International Information system
MSM-MBA 2020 Even Semester 2

Data
• Refers to collection of facts –result of experience, observation or
experiment or process.
• Data – consists of numbers, words, or images, or observations of set
of variables
• Data – raw material for information
• Defined as group of non random symbols – represents quantities,
objects, actions and etc.,
• Raw facts and figures – has no meaning

Information
• Information derived from data and in solving problems
• Definition – Information is the meaning that a human assigns to
data by means of the known conversations used in their
representation
• Collection of data - information
Data InformationProcessing

Characteristics of Information
1. Timeliness
2. Appropriateness
3. Accuracy
4. Conciseness
5. Frequency
6. Understandability
7. Relevant
8. Completeness
9. Current
10. Economical

Knowledge
• Knowledge – facts, feelings or experiences
known by a person or a group of people
• It is the result of learning and is stored in an
individual brain or encoded in documents,
product, facilities and concepts

Intelligence
- Collection and use of information
- Intelligence requires inferences as to how the
information relates to the specific issue or decision.
- Intelligence – related to the possession and creation
of knowledge
Contd…

- In other words one’s capacity for logic, abstract,
though, understanding, self-awareness,
communication, learning, emotional knowledge,
memory, planning, creativity and problem solving
- Miller suggests that “data, when organized becomes
information; information, when analyzed becomes
intelligence

Diagrammatic representation of Data,
Knowledge, Information and Intelligence
• Basic understanding of data, information, intelligence and
knowledge
• Helps in “Knowledge Management system” understanding
Data
Information
Intelligence
Knowledge
Context
Meaning
Experience

Information technology
• One of evolutionary factor transformed the business -
Information technology (IT)
• Ability to capture, store, process and distribute information is
critical to most organizations
• Managers – responsible for using and managing information
and technology
• Information technology – tool to provide effective customer
service, analyze market opportunities and manage production
and operations

Impact of Information Technology
• Applications of information technology designed to
improve in three areas:
1. Effectiveness – Focus on quality
2. Efficiency – Input and output ratio – focus on
quantity
3. Transformation – Radical change – rethinking of
process
Contd…

Three levels of impact
1. Impact on the individual – work made simple
2. Impact on functional unit – automate specific
business process
3. Impact on organization – competitive
advantage

Components of Information Technology
• Five major components of information Technology
1. People – Essential and vital in organization
2. Hardware – Physical devices and materials used
3. Software – sets of programs or information processing
instructions
4. Data – Important resources
5. Network – Internet, intranet, VPN and connection
between servers and clients

Advantages of Information technology
• Impact on globalization
• Communication speed ups
• Cost effectiveness
• Bridging cultural gaps
• Beyond time limits

Disadvantages of Information Technology
1. Creates unemployment
2. Privacy and safety issues
3. Lack of Job security
4. Cultural change (Good to bad)

Application of Information technology
I. Education:
- Access to variety of learning
resources
- Collaborative learning
II. Business and Industry
- Customer relations
- Business operations
- Industrial productivity
III. Entertainment
- Digital TV
- Streaming music
- Wi-Fi, CDMA or GPRS
technologies
IV. Medicine
- CT scan/MRI scan – diagnosis
- Genomic research

Information system
• Information systems – computer systems
• A system is a collection of people, machine and
methods organized to accomplish a set of specific
tasks
• A system – integrated set of components or entities –
interrelated and interdependent subsystems

Schematic representation of system concepts
Input Process Output
Feedback
Feed forward
Components and basic process involves input, process and output

Information system – Definition
• Information system is a set of people, procedures
and resources that collects, transforms and
disseminates information in organization.
• Components of Information system – 1. People 2.
Hardware 3.Software 4. Communication networks
5. Data resources
Contd…

• Information system categorized into two:
1. Manual Information system
2. Computer based Information system

Difference between Manual and computer
based IS
Manual Information System
Computer based Information
System
Recorded in papers
Recorded in software and computer
hard disk
Less popular More popular
Economical but less effective Costly but most effective
More risk (lack of data backup) Less risk (Back up data)

Evolution of Information System
1. Early 1960’s:
Until 1960, Information system – simple
transaction processing (EDP) Electronic data
processing – for record keeping and accounting
MIS (Management Information System) Conceived –
managers needed information for decision making
process
Contd…

2. Year 1970:
MIS – not adequately meeting decision making needs
DSS (Decision Support system) – supports decision
making process – tailored to the needs of unique
decision making style of a manager
Contd…

• Year 1980:
- rapid development of microcomputer processor,
application software and telecom networks
- Critical information – Executive information system
(EIS) support the decision making
- AI (Artificial Intelligence) – sensors, train data and
automated decision making
Contd…

• Early 1990:
- Emergence of strategic information system
(SIS).
- IT becomes integral component of business
process gain competitive advantage
Contd…

• Mid year 1990:
ERP (Enterprise resource planning) – a form of
SIS integrates – planning, manufacturing, sales,
resource management, CRM (Customer
relationship management), Inventory control
and so on.
Contd…

• Late 1990:
- the rapid growth of the internet, intranets,
extranets and other interconnected global
networks.

Model representation of Information system
Processing of
data
Output of resources
(Information)
Storage of data
resources
Control of system
performance
Input of data
resources
People
resources
Software
Resources
Network
resources

Types of Information System
• Information system based on
Functions
• Information system based on
Management hierarchy

1. Information System based on Functions
1. Manufacturing functions – Manufacturing/production
and operations information systems
2. Accounting functions – Accounting Information system
3. Finance functions – Financial Information system
4. Marketing function and sales – Marketing Information
system
5. Human resource functions – (HRIS) Human resource
Information System

2. Information system based on Hierarchy
• Different types of information systems –
serve different functions – in different
levels of organization

Schematic diagram of IS based on hierarchy
EIS
DSS
MIS
TPS
Executive Information
System
Decision Support
system
Management
Information system
Transaction
processing system
Executives
Senior
Managers
Middle
managers
Workers

1. Executive information system (EIS) – tailored to the strategic information
needs of top management
2. Decision support system (DSS) – Interactive, computer based information
system (CBIS) uses decision needs and specialized databases for effective
decision making
3. Management Information System (MIS) – system – which defined data
are collected, processed and communicated to assist mangers.
4. Transaction processing system (TPS) – record and process the business
transaction data such as sales, purchases and inventory changes
Manual/Electronic data processing system

Roles of Information system
1. Operational Excellence - Improves productivity, quality and reduce
delivery time
2. New products, services and business models – Re-engineer and re-think
of models
3. Customer/supplier intimacy – get close with customers and touch with
suppliers
4. Improved decision making – right information at right time for accurate
and precise decision making
5. Competitive advantage – Gain an advantage over other competition
6. Survival – Profit making and primary motive of any industry

Functions of Information system
Processing of
data
Input of
data
Output of
Data
Storage
of data
Control
of data

Scope of Information system
1. Provide fast and accurate transaction processing
2. Provide large capacity and fast access storage
3. Provide fast communications
4. Reduce information overload
5. Span boundaries
6. Provide support for decision making
7. Provide a competitive weapon

System development methodologies
• System methodology – a body of methods,
rules and postulates
• System – should meet the needs or
requirements
• So system development needed – user +
technical analyst

System development process
• System analysis and design – similar to problem solving
• System analyst – responsible for analyzing work methods
and procedures to simplify work
• Process of system analysis involves steps as follows:
1. Define the problem
2. Develop an understanding of the system
3. Identify and evaluate the alternatives
4. Select and implement
5. Evaluate the impact

There are 5 types of system development
methodologies
1. System development life cycle (SDLC)
2. Waterfall model
3. Prototyping model
4. Rapid application development (RAD)

I. System Development life cycle
• Systems – designed and implemented using a systematic development
process
• Steps in SLDC:
1. Investigation phase
2. Feasibility analysis/Study
3. System analysis
4. System design
5. Implementation – Acquisition of resources, testing, training,
documentation, and conversion
6. Maintenance

Advantages:
1. Control
2. Accountability
3. Error detection
4. Systematic approach
5. Formal documents and
procedures
Disadvantages:
1. Inflexible
2. Time consuming
3. Lack of changes
4. Poor Documentation
5. Implementation of user
needs

II Waterfall model
• Systematic and sequential approach to software development
Feasibility
study
Requirement analysis
and specification
Design
Coding and
unit testing
Integration &
system testing
Maintenance
Feasibility report
Project plan
Design Document
Programs
Test plan
reports
and
manuals* Advantages and disadvantages

III Prototyping Model
• Applicable where project - incomplete,
inconsistent and unclear requirements
• Build prototype to help understand
requirements
• Prototype – working model of actual system –
for complicated and large systems

Steps of Prototyping
Step 1
• Identify the user’s basic requirements
Step 2
• Develop the initial /working prototype
Step 3
• Use the prototype for further requirements
Step 4
• Revise and enhance prototype

• Advantages:
1. Clarity
2. Best for not It literate
users
3. Provide judgment to
capability of developer
4. Risk identification
5. Good environment
6. Takes less time to
complete
• Disadvantages:
1. High cost
2. Throw away
3. Slow process
4. More involvement of
clients
5. Too many changes

Spiral model
• Proposed by Boehm – is an evolutionary software process
model
• Combines prototyping and linear sequential
Quadrants in spiral model:
1. First quadrant – determine objectives, alternatives,
constraints
2. Second quadrant – Identify and resolve risks
3. Third quadrant – develop next level product
4. Fourth quadrant – plan next phase

• Advantages:
1. Risk identification at early
stages
2. Visible prototype to users
3. Suitable for high risk
projects
4. Flexible for adding
functionality
• Disadvantages:
1. Costly
2. Risk dependent
3. Not suitable for small
projects
4. Difficult to meeting buget

(RAD) Rapid Application Development model
• Incremental software process model – short
development cycle
• Involves high speed adaption
Step 1: Requirements planning
Step 2: user design
Step 3: Construction
Step 4: Implementation
*Advantages and disadvantages

Functional Information System
• System that provides detailed information for a specific or
related type of activities
Features:
1. Consists of several smaller information systems
2. Information system both independent and also
interdependent
3. It forms organization wide information system
4. Interface with environment

Representation of functional information system
Functional
Information
System
Marketing:
1. Customer
relationship
management
2. Interactive
marketing
3. 3. Sales force
automation
Human resource:
1.Compensation
analysis
2. Employee skill
inventory
3. Personal
requirement
forecasting
Accounting:
1. Order
processing
2. Inventory
control
3. Accounts
receivable
4. Payroll
5. Accounts
payable
6. . General
ledger
Production or
operations
1. Manufacturing
resource
planning
2. Manufacturer
Finance
1. Cash
management
2. Credit
management
3. 3. Investment
management
4. Capital
budgeting
5. Financial
forecasting

1. Financial accounting system
1. General ledger
2. Fixed assets
3. Sales order processing
4. Accounts receivable
5. Account payable
6. Purchase order processing
7. Inventory control
8. Payroll

2. Marketing Information system
• Includes
1. Sales system
2. Advertising system
3. Sales promotion system
4. Warehousing systems and
5. Pricing systems
6. POS systems
7. Delivery tracking

3. Production Information Systems
1. Purchasing systems
2. Receiving systems
3. Quality control systems
4. Shipping systems
5. Cost accounting systems
6. Inventory control systems
7. Automated materials
handling systems
8. CAD (Computer Aided
design) and manufacturing
systems
9. Materials selection systems
10. Shop floor scheduling
systems

Human resource Information System (HRIS)
• Module includes:
1. Position control systems
2. Employee information systems
3. Performance management systems
4. Government reporting systems
5. Applicant selection and placement
systems
6. Training systems

Decision Support system
• Refers to a class of systems - supports the
process of decision making
• DSS – an interactive computer based system –
utilize data and model to solve unstructured
problems

Characteristics of DSS
1. Provide rapid access to information
2. Handle large amount of data
3. Provide report and presentation flexibility
4. Offer both textual and graphical orientation
5. Support Drill down analysis
6. Perform complex and sophisticated analysis

Functions of DSS
1. What if analysis
2. Goal Oriented
3. Risk analysis
4. Model building
5. Graphical analysis

Components of DSS
1. Data Management subsystem
2. Model Management subsystem
3. User interface subsystem
4. Knowledge based management
subsystem

Classification of DSS
• 56 type of DSS are there, some are listed below;
1. File drawer system
2. Data analysis system
3. Analysis Information system
4. Accounting models
5. Representational models
6. Optimization models
7. Suggestion models

Steps in designing DSS
Phase 1: Choosing the project or problem to
be solved
Phase 2: Selecting software and hardware
Phase 3: Data acquisition and management
Phase 4: Model subsystem acquisition and
management
Phase 5: Dialogue subsystem and its
management
Phase 6: Knowledge component
Phase 7: Packaging
Phase 8: Testing, Evaluation and
improvement
Phase 9: User training
Phase 10: Documentation and maintenance
Phase 11: Adaptation

• Advantages:
1. Improving personal
efficiency
2. Improving problem
solving
3. Facilitating
communication
4. Promoting learning or
training
5. Increasing organizational
control
• Disadvantages:
1. Limited storage capability
2. Slow in process
3. Limited information
sharing
4. Functional difficulty
5. Require extensive
knowledge
6. Translation problem
7. confliction

Applications and scope of DSS
1. Intelligence report
2. Medical industry
3. Agricultural industry
4. Air traffic control
5. Company meeting and voting support

Executive Information system (EIS)
• Executive information system / Executive support system (ESS)
• Management information system – facilitates and support the
information and decision making needs
• Main goal of EIS – to provide top executives with immediate
and easy access to information about Critical success factor
• EIS is a computer based information delivery and
communication system designed to support the needs of top
executives

Characteristics of EIS
1. Drill down capabilities
2. Designed with CSF (Critical success factor)
3. Status access, trend analysis and exception
reporting
4. Support for strategically control
5. Support for crisis management

• Advantages:
1. Accessible for top level
executives
2. Ability to analyze trends
3. Better reporting system
4. Better understanding of
enterprise operations
5. Increased communication
capacity
• Disadvantages:
1. Functions are limited
2. Hard to quantify benefits
3. System may become slow,
large and hard to manage
4. Difficult to keep current
data

Applications of ESS/EIS
• Manufacturing
• Marketing
• Financial

Knowledge Management system
• Knowledge management – process of identifying,
collecting, presenting and transforming information
into knowledge
• Foster innovation and improve the performance

Features of KMS
• Purpose
• Context
• Processes
• Participants
• Instruments

Components of KMS
• Business process management
• Content management
• Web content management
• Knowledge applications
management

Types of KMS
• Enterprise wide system
• Knowledge work system
• Intelligent techniques

• Advantages:
1. Information sharing
2. Elimination of
redundancy of work
3. Self-learning
• Disadvantages:
1. Confidentiality issues
2. It is not a static system
3. Possibility of collecting
and storing wrong
information

Geographic information system (GIS)
• It has two meanings:
1. Earth and 2. geographic space
• GIS – a special category of DSS
• Data visualization technology
• Decision making inform of digitalized image
• GIS – captures, stores, analyses, manages and present
data that refers or linked to location

Purposes/need of GIS
1. To support decision making
2. To support general research
3. To collect, manipulate and use spatial data in
database management
4. To produce standardized and customized
cartographic production

Functionalities of GIS
1. Organization
2. Visualization
3. Queries
4. Combination
5. Predictions
6. Analysis

International Information System
• International Information system – distributed IS support
similar business activities in highly diverse environments.
Developing International information system:
1. Global environment
2. Corporate global strategies
3. Structure of the organization
4. Management and business process
5. Technology platform

Types of International Information System
1. International information system
2. Transnational information system
3. Multinational information system
4. Global information system
5. Collaborative or cooperative information
system

Components of International information system
1. Data inputs
2. Operational components
3. Data output

Issues and challenges
1. Computing platforms and systems integration
2. Connectivity issues
3. Software issues
4. Technological challenges
5. Cultural differences
6. Political challenges

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