2. INFORMATION SYSTEM (IS)
2
Def:
An information system (IS) - or application landscape - is any combination
of information technology and people's activities that support
operations, management, and decision making.
The term information system is frequently used to refer to the interaction
between people, processes, data, and technology.
It help to control the performance of business processes.
An information system is a work system whose activities are devoted to
processing (capturing, transmitting, storing, retrieving, manipulating and
displaying) information.
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3. Conti……
3
An information system can also be considered a semi-formal language
which supports human decision making and action.
It consists of computers, instructions, stored facts, people and procedures.
ISs can be categorized in four parts:
1) Management Information System (MIS)
2) Decision Support System (DSS)
3) Executive Information System (EIS)
4) Transaction Processing System (TPS)
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4. Management Information System
(MIS)
4
Def:
A management information system (MIS) provides information
needed to manage organizations efficiently and effectively.
Management information systems involve three primary resources:
people, technology, and information.
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6. History
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Kenneth and Jane Laudon identify five eras of MIS evolution corresponding to
five phases in the development of computing technology:
I. Mainframe and minicomputer computing (First era)
II. Personal computers (Second era)
III. Client/server networks (Third era)
IV. Enterprise computing (Fourth ear)
V. Cloud computing (Fifth era)
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7. Terminology
7
The terms MIS, information system, ERP and, information technology
management are often confused. Information systems and ERP are broader
categories that include MIS. Information technology management concerns
the operation and organization of information technology resources
independent of their purpose.
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8. Types
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Most management information systems specialize in particular commercial
and industrial sectors, aspects of the enterprise, or management substructure.
Accounting MIS
Financial MIS
Manufacturing MIS
Marketing MIS
Human Resource MIS
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9. Advantages
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The company is able to highlight their strength and weaknesses due to the
presence of revenue reports, employee performance records etc.
Giving an overall picture of the company and acting as a communication
and planning tool
The availability of the customer data and feedback can help the company
to align their business processes according to the needs of the customers.
Information is considered to be an important asset for any company in the
modern competitive world
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10. Decision Support System (DSS)
10
Def:
Decision support system (DSS) is a computer-based information
system that supports business or organizational decision-making
activities.
Dss also include knowledge-based systems. A properly designed
DSS is an interactive software-based system intended to help
decision makers compile useful information from a combination of
raw data, documents, personal knowledge, or business models to
identify and solve problems and make decisions.
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12. History
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According to Keen (1978), the concept of decision support has evolved
from two main areas of research
The theoretical studies of organizational decision making done at the
Carnegie Institute of Technology during the late 1950s and early
1960s, and the technical work on interactive computer systems, mainly
carried out at the Massachusetts Institute of Technology in the 1960s
DSS became an area of research of its own in the middle of the
1970s, before gaining in intensity during the 1980s.
In the middle and late 1980s, executive information systems (EIS), group
decision support systems (GDSS), and organizational decision support
systems (ODSS) evolved from the single user and model-oriented DSS.
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13. Taxonomies
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Using the relationship with the user as the criterion, Haettenschweiler
differentiates in to three types
Passive
Active
Cooperative DSS
Passive: A passive DSS is a system that aids the process of decision
making, but that cannot bring out explicit decision suggestions or
solutions
Active: An active DSS can bring out such decision suggestions or solutions.
Cooperative DSS : Allows the decision maker (or its advisor) to
modify, complete, or refine the decision suggestions provided by the
system, before sending them back to the system for validation.
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14. Conti.….
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Another taxonomy for DSS has been created by Daniel Power.
communication-driven DSS,
data-driven DSS
document-driven DSS
knowledge-driven DSS
model-driven DSS.
A communication-driven DSS :Supports more than one person working
on a shared task; examples include integrated tools like Microsoft's
NetMeeting or Groove
A data-driven DSS or data-oriented DSS: Emphasizes access to and
manipulation of a time series of internal company data
and, sometimes, external data.
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15. Conti.….
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A document-driven DSS: It manages, retrieves, and manipulates
unstructured information in a variety of electronic formats.
A knowledge-driven DSS :It provides specialized problem-solving
expertise stored as facts, rules, procedures, or in similar structures.
A model-driven DSS: Emphasizes access to and manipulation of a
statistical, financial, optimization, or simulation model.
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16. Classification
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A compound DSS is the most popular classification for a DSS
It is a hybrid system that includes two or more of the five basic structures
described by Holsapple and Whinston.
DSS components may be classified as:
Inputs: Factors, numbers, and characteristics to analyze
User Knowledge and Expertise: Inputs requiring manual analysis by
the user
Outputs: Transformed data from which DSS "decisions" are generated
Decisions: Results generated by the DSS based on user criteria
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17. Components
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Three fundamental components of a DSS architecture are:
i. The database (or knowledge base)
ii. The model (i.e., the decision context and user criteria), and
iii. The user interface.
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18. Benefits
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Improves personal efficiency
Speed up the process of decision making
Increases organizational control
Encourages exploration and discovery on the part of the decision maker
Speeds up problem solving in an organization
Facilitates interpersonal communication
Promotes learning or training
Generates new evidence in support of a decision
Creates a competitive advantage over competition
Reveals new approaches to thinking about the problem space
Helps automate managerial processes
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19. Transaction Processing System (TPS)
19
Def.
A transaction processing system is a type of information system. TPSs
collect, store, modify, and retrieve the transactions of an organization. A
transaction is an event that generates or modifies data that is eventually stored
in an information system.
Transaction Processing is not limited to application programs. The journal file
system provided with IBMs AIX Unix operating system employs similar
techniques to maintain file system integrity, including a journal.
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20. Contents
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Types
Features
Components
4 ACID test properties: first definition
Storing and retrieving
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21. Types
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i. Contrasted with batch processing: - Batch processing is a form of
transaction processing. Batch processing involves processing several
transactions at the same time, and the results of each transaction are not
immediately available when the transaction is being entered; there is a
time delay. Transactions are accumulated for a certain period (say for day)
where updates are made especially after work. Online transaction
processing is the form of transaction processing that processes data as it
becomes available.
ii. Real-time and batch processing: -Each transaction in real-time
processing is unique. It is not part of a group of transactions, even though
those transactions are processed in the same manner.
Real-time processing requires the master file to be available more often for
updating and reference than batch processing. The database is not
accessible all of the time for batch processing.
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22. Features
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i. Rapid response
ii. Reliability
iii. Inflexibility
iv. Controlled processing
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23. Components
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i. Input
ii. Processing
iii. Storage
iv. Output
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24. ACID test properties: first definition
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I. Atomicity: - A transaction’s changes to the state are atomic: either all
happen or none happen. These changes include database
changes, messages, and actions on transducers.
II. Consistency: -A transaction is a correct transformation of the state.
The actions taken as a group do not violate any of the integrity
constraints associated with the state. This requires that the transaction
be a correct program
III. Isolation: -Even though transactions execute concurrently, it appears
to each transaction T, that others executed either before T or after
T, but not both
IV. Durability: -Once a transaction completes successfully
(commits), its changes to the state survive failures.
V. Concurrency: -Once a transaction completes successfully
(commits), its changes to the state survive failures.
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25. Storing and retrieving
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Databases and files: - A database is a collection of data neatly
organized, which stores the accounting and operational records in the database.
Databases are always protective of their delicate data, so they usually have a
restricted view of certain data
Data warehouse: - A data warehouse is a database that collects information
from different sources. When it's gathered in real-time transactions it can be
used for analysis efficiently if it's stored in a data warehouse. It provides data
that are consolidated, subject-oriented, historical and read-only
Backup procedures: - Since business organizations have become very
dependent on TPSs, a breakdown in their TPS may stop the business' regular
routines and thus stopping its operation for a certain amount of time. In order
to prevent data loss and minimize disruptions when a TPS breaks down a well-
designed backup and recovery procedure is put into use. The recovery process
can rebuild the system when it goes down.
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26. Conti…..
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Types of back-up procedures: -
i. Grandfather-father-son: - This procedure refers to at least three
generations of backup master files. thus, the most recent backup is the
son, the oldest backup is the grandfather. It's commonly used for a batch
transaction processing system with a magnetic tape.
ii. Partial backups: - This only occurs when parts of the master file are
backed up. The master file is usually backed up to magnetic tape at
regular times, this could be daily, weekly or monthly. Completed
transactions since the last backup are stored separately and are called
journals, or journal files. The master file can be recreated from the
journal files on the backup tape if the system is to fail.
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