Unit iii FMIS

INTRODUCTION TO INFORMATION SYSTEMS
UNIT III
Introduction to Information Systems: Definition, Concepts and Recognition of Information Systems
Information Systems and Society, Information Systems and Organization
Constraints and Limitations of Information System.

INFORMATION SYSTEM
 1. Information systems capture data from the organization (internal data) and its environment (external
data).
 2. They store the database items over an extensive period of time.
 3. When specific information is needed, the appropriate data items are manipulated as necessary, and
the user receives the resulting information.
 4. Depending on the type of information system, the information output may take the form a query
response, decision outcome, expert-system advice, transaction document, or a report.

INFORMATION SYSTEM
Quality information needs to possess several attributes. Notably, it has to be:
 1. Timely Available when needed and not outdated when made available
 2. Complete Includes all the user needs to know about the situation where the information will be used
 3. Concise Does not include elements unneeded by the user
 4. Relevant Has direct bearing on the situation
 5. Precise Offers quantitative information with a degree of exactness appropriate to the underlying data
 6. Form The level of detail, tabular versus graphic display, and quantitative versus qualitative form are
selected in accordance with the situation Internal and External Information

COMPONENTS OF INFORMATION SYSTEMS
Information systems consist of the following general components:
 1. Hardware
 2. Software
 3. Databases
 4. Human resources
 5. Procedures

Hardware
Multiple computer systems: microcomputers, minicomputers, mainframes, together with their peripherals.
Computer system components are: a central processor(s), memory hierarchy, input and output devices.
Computer processor: The central processor carries out the instructions of a program, translated into a
simple form.
Memories: Included in a computer system form a hierarchy. They range from the fast electronic units, such
as the main memory, to the slower secondary storage devices such as magnetic disks.
Moore's Law The increases in the number of transistors on chips correspond to the increase in the
microprocessor speed and memory capacity, and thus the growth of the processing power.
Downsizing In information systems, transferring some or all of the organization;s computing from
centralized processing on mainframes or minicomputers to systems built around networked
microcomputers (often in a client/server configuration).

Software
Computer software falls into two classes: systems software and applications software.
Systems Software: Manage the resources of the computer system and simplifies programming. An
operating system is the principal system software. It manages all the resources of a computer system and
provides an interface through which the system's user can deploy these resources.
Application Software: Are programs that directly assist end users in doing their work. They are purchased as
ready-to-use packages. Applications software directly assists end users in doing their work.

Databases
Databases are organized collections of interrelated data used by applications software. Databases are
managed by systems software known as database management systems (DBMS) and shared by multiple
applications

INFORMATION SYSTEMS FOR MANAGEMENT SUPPORT:
The objectives of the three levels of corporate management are:
 1. Operations Management: performed by supervisors of smaller work units concerned with planning
and control of short-term (typically, a week or six months) budgets and schedules.
 2. Tactical Management: performed by middle managers responsible for acquisition and allocation of
resources for projects according to tactical plans, set out for one or two years.
 3. Strategic Management: Carried out by top corporate executives and corporate boards responsible
for setting and monitoring long-term directions for the firm for three or more years into the future.

RECOGNITION OF INFORMATION SYSTEM

IMPACTS OF INFORMATION SYSTEMS
 Organizational impacts of information systems
 These systems provide support for business operations; for individual and group decision making; for new
product development; for relationships with customers, suppliers, and partners; for pursuit of competitive
advantage; and, in some cases, for the business model itself (e.g., Google).
 Information systems bring new options to the way companies interact and compete, the way organizations are
structured, and the way workplaces are designed. In general, use of Web-based information systems can
significantly lower the costs of communication among workers and firms and cost-effectively enhance the
coordination of supply chains or webs.
 The use of information systems has enabled new organizational structures. In particular, so-called virtual
organizations have emerged that do not rely on physical offices and standard organizational charts. Two notable
forms of virtual organizations are the network organization and the cluster organization.

 Information systems in the economy and society
 The development of the Web-based ecosystem, accompanied by the low cost of hardware and
telecommunications and the availability of open-source software, has led to a flowering of entrepreneurial activity
and the emergence to prominence and significant market value of numerous firms based on new business
models. Among the examples are electronic auction firms, search-engine firms, social network platforms, and
online game companies.
 As the use of information systems has become pervasive in advanced economies and societies at large, several
societal and ethical issues have moved into the forefront. The most important are issues of individual privacy,
property rights, universal access and free speech, information accuracy, and quality of life.
 Intellectual property, such as software, books, music, and movies, is protected, albeit imperfectly, by patents, trade
secrets, and copyrights. However, such intangible goods can be easily copied and transmitted electronically over
the Web for unlawful reproduction and use. Combinations of legal statutes and technological safeguards,
including antipiracy encryption and electronic watermarks, are in place, but much of the abuse prevention relies
on the ethics of the user.
 Consumers can use the Web for shopping, networking, and entertainment—but at the risk of contending with
spam (unsolicited e-mail), interception of credit card numbers, and attack by computer viruses.

 Social Impact of Information Systems
 This affects our society in two ways: On an individual basis it means that any person in possession of some kind of
a computer has the capacity to store every document they will ever need in a single compact machine. This
connotes that computer allows people to set up businesses and work from home on a scale never seen before,
not to mention taking the human progress a step beyond that of the printing press by removing the need forhand
writing for the first time in our history.
 . Another effect of information systems is the rise in computer games. This has caused serious worries over how
they affect those who use them, and especially their effects on youth. The debate still rages over whether the large
number of violent computer games available influences those who play to imitate such behavior, with a host of
scientific research being done on the issue. Yet almost worrying are the statistics which seem to be highly
addictive to the quality of such games - most notably internet based ones. In contrast many have begun to see
the potential computers held as a means of education, since, unlike other traditional forms of teaching tools,
computer game based learning has a propensity to entertain the student. Businesses and organizations are
already using computers as educational devices and technology development tools, especially in the field of
virtual reality games and more would still follow. Whatever one's feelings on the growth of these video games, in
both recreational and educational formats they are becoming ever more of a reality, for instance the United States
military uses one of such game as a recruitment device.

 . Another interesting and undeniable effect is the use of internet in the societies worldwide; in fact, it
could be said to connect and eliminate differences between geographically and culturally separated
societies.
 The technology field has been overtaken with other types of behavior that can affect anyone who uses
technology such as computer crime. Computer crime is another prevalent social impact of information
system in our society.

LIMITATIONS TO INFORMATION SYSTEMS
 Loss of the human element: information systems cannot present all kinds of information accurately.
 Thick information, which is rich in meaning and not quantifiable, is best suited to human analysis.
Example: employee evaluations need face-to-face communication to convey all information.
 Difficult installations: Information systems can be hard to develop. To avoid problems:
 list major organization goals.
 build support for the system with workers.
 create formal training programs.
 emphasize that face-to-face contact is important.

TYPES OF CONSTRAINTS
 Equipment: The way equipment is currently used limits the ability of the system to produce more
salable goods/services.
 People: Lack of skilled people limits the system. Mental models held by people can cause behavior that
becomes a constraint.
 Policy: A written or unwritten policy prevents the system from making more.

TYPES OF CONSTRAINTS
 The major constraints of a new Information System (IS) project development are Scope, Time and
Budget (Cost). These constraints are also known as project management triangle.

PROJECT SCOPE
 Project scope is the work that needs to be accomplished with the specified features and functions in a
project. We can also say that the project scope is the goals that need to be fulfilled in order to complete
a project. Without proper project scope, the development team can go out of the track and produce the
final deliverable that is not intended by their clients. This will result in loss of time, resource to the
company whom develops the application. On the other hand, the cost will increase since they have to
recode the developed system to suit the client’s needs

TIME
 Time is a period measurement that is used in project scheduling to estimate the project duration. The
time here can be either in days, weeks, months or years depending on the complexity and size of the
project. The project duration should be carefully planned and enough time should be provided for each
stages. Without allocating proper time amount the system produced may not be at an optimum quality.
This is because the development team might need to rush to finish the project within the time frame
which results in poorly designed and coded system which is prone to error and bugs.

BUDGET (COST)
 Budget (Cost) provides a forecast of revenues and expenditures in the project. By evaluating budget, the
profit and loss can also be estimated. This will help to decide whether to undertake the project or not.
The budget estimation is a difficult task since it involves analysing skills and numerical values. Without
proper budget plan, the development can exceed or over spend which will lead into higher production
cost and lower profit margin.

THE MANAGEMENT LEVELS AND ITS CHARACTERISTICS
 1. Top level / Administrative level
 2. Middle level / Executory
 3. Low level / Supervisory / Operative / First-line managers

1. Top Level of Management
It consists of board of directors, chief executive or managing director. The top management is the ultimate
source of authority and it manages goals and policies for an enterprise. It devotes more time on planning
and coordinating functions. The role of the top management can be summarized as follows -
 a. Top management lays down the objectives and broad policies of the enterprise.
 b. It issues necessary instructions for preparation of department budgets, procedures, schedules etc.
 c. It prepares strategic plans & policies for the enterprise.
 d. It appoints the executive for middle level i.e. departmental managers.
 e. It controls & coordinates the activities of all the departments.
 f. It is also responsible for maintaining a contact with the outside world.
 g. It provides guidance and direction.
 h. The top management is also responsible towards the shareholders for the performance of the
enterprise.

2. Middle Level of Management
The branch managers and departmental managers constitute middle level. They are responsible to the top
management for the functioning of their department. They devote more time to organizational and directional
functions. In small organization, there is only one layer of middle level of management but in big enterprises,
there may be senior and junior middle level management. Their role can be emphasized as -
a. They execute the plans of the organization in accordance with the policies and directives of the top
management.
b. They make plans for the sub-units of the organization.
c. They participate in employment & training of lower level management.
d. They interpret and explain policies from top level management to lower level.
e. They are responsible for coordinating the activities within the division or department.
f. It also sends important reports and other important data to top level management.
g. They evaluate performance of junior managers.
h. They are also responsible for inspiring lower level managers towards better performance.

3. Lower Level of Management
Lower level is also known as supervisory / operative level of management. It consists of supervisors, foreman, section officers, superintendent etc.
According to R.C. Davis, “Supervisory management refers to those executives whose work has to be largely with personal oversight and direction of
operative employees”. In other words, they are concerned with direction and controlling function of management. Their activities include -
a. Assigning of jobs and tasks to various workers.
b. They guide and instruct workers for day to day activities.
c. They are responsible for the quality as well as quantity of production.
d. They are also entrusted with the responsibility of maintaining good relation in the organization.
e. They communicate workers problems, suggestions, and recommendatory appeals etc to the higher level and higher level goals and objectives
to the workers.
f. They help to solve the grievances of the workers.
g. They supervise & guide the sub-ordinates.
h. They are responsible for providing training to the workers.
i. They arrange necessary materials, machines, tools etc for getting the things done.
j. They prepare periodical reports about the performance of the workers.
k. They ensure discipline in the enterprise.
l. They motivate workers.
m. They are the image builders of the enterprise because they are in direct contact with the workers.

Unit iii FMIS

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Unit iii FMIS