Management Information System 2

Amity School of Business

Jitendra Tomar
Amity School of Business,
Amity University, UP

096-505-123-00
0120 4392867
jtomar@amity.edu
jitendratomar@hotmail.com

MIS - Orator


• 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


• 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


The 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


What 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


Business 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


Computers 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


Peek 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


I

Hardware


Considerations 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


Considerations 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


The 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


Why 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


Why 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


Custom-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


Custom-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


Packaged 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


Packaged 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


The 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.


Considerations 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


Considerations 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


Telecommunication, 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


Telecommunication, 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.



Types 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.



DRM 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


Data 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 organization's 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.



Database:
• 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.


Database Structures:
• Traditional File System.
• Hierarchical Structure.
• Network Structure.
• Object Oriented Structure.
• Relational Structure.



Data-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.



External Data
(Because it is an
open system) Performance Report
DATA WAREHOUSE

(Huge Collection of Data)
Collection of Different Data Marts.

Transaction Data Business Analysis
(Obtained from
different TPS)



Phases 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-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-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 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.

Management Information System 2

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