Anda di halaman 1dari 136

Management

Information System
Syllabus Overview

UNIT 1
Foundation of Information Systems: Introduction
to information system in business, fundamentals
of information systems,
Solving business problems with information
systems,
Types
of
information
systems,
Effectiveness
and
efficiency
criteria
in
information system.
Goal: This course provides a broad introductory understanding of
information systems, seen within organizational and societal
contexts. The aim is to provide students with an appropriate
balance of technical and organizational perspectives to serve as
the basis for further study in the field.

Objectives
Role of information systems in business environment
to achieve competitive advantage
Fundamental Knowledge of information systems
architecture and IT infrastructure
State-of-the-art technologies that will contribute
towards future development of IT systems and
applications
Issues contributing to security, integrity, ethics,
successful
planning,
implementation
and
management of IT systems
Reference Book: OBrien J. A. and Marakas G. M., Introduction to
Information Systems, 2nd Edition, McGraw-Hill Irwin, 2008

UNIT 2
An overview of Management Information
Systems:
Definition
of
a
management
information system, MIS versus Data processing,
MIS & Decision Support Systems, MIS &
Information Resources Management, End user
computing, Concept of an MIS, Structure of a
Management information system.
Goal: This course provides a broad introductory understanding of
information systems, seen within organizational and societal
contexts. The aim is to provide students with an appropriate
balance of technical and organizational perspectives to serve as
the basis for further study in the field.

UNIT 3
Concepts of planning & control: Concept of
organizational planning, The Planning Process,
Computational
support
for
planning,
Characteristics of control process, The nature of
control in an organization.

Goal: This course provides a broad introductory understanding of


information systems, seen within organizational and societal
contexts. The aim is to provide students with an appropriate
balance of technical and organizational perspectives to serve as
the basis for further study in the field.

Objectives
Understand what managerial planning is and
why it is important.
Identify and analyze the various types of plans
and show how they relate to one another.
Outline and discuss the logical steps in planning
and see how these steps are essentially a
rational approach to setting objectives and
selecting the means of reaching them.
Explain the nature of objectives.
Describe how verifiable objectives can be set for
different situations.

UNIT 4
Business applications of information technology:
Internet & electronic commerce, Intranet,
Extranet & Enterprise Solutions,
Information System for Business Operations,
Information System for Managerial Decision
Support, Information System for Strategic
Advantage.
Goal: This course provides a broad introductory understanding of
information systems, seen within organizational and societal
contexts. The aim is to provide students with an appropriate
balance of technical and organizational perspectives to serve as
the basis for further study in the field.

Objectives
To review the understanding about Business
Strategy and its components
To understand the role of Information Systems
in Strategy Formulation and Implementation
To learn how to use Information Systems for
gaining competitive advantage

UNIT 5
Managing Information Technology: Enterprise &
global
management,
Security
&
Ethical
challenges, Planning & Implementing changes.
Advanced Concepts in Information Systems:
Enterprise Resource Planning, Supply Chain
Management,
Customer
Relationship
Management, and Procurement Management.
Goal: This course provides a broad introductory understanding of
information systems, seen within organizational and societal
contexts. The aim is to provide students with an appropriate
balance of technical and organizational perspectives to serve as
the basis for further study in the field.

Objectives
Identify and give examples to illustrate the following
aspects of customer-relationship management,
enterprise resource management, and supply chain
management systems:
a. Business processes supported.
b. Customer and business value provided.
c. Potential challenges and trends.

UNIT 1
FOUNDATION OF
INFORMATION SYSTEM

Data and information: Data is raw unprocessed facts and


figures that have no context or purposeful meaning and
information is processed data that has meaning and is presented
in a context.
Information as a Strategic Resource: "Drowning in data, yet
starved of information"

Attributes of Information Quality

Time Dimension

Content Dimension

Form Dimension

What is a System?
A system is
A set of interrelated components
Working together as planned.
To achieve a common set of objectives
By accepting inputs and producing outputs
An organized transformation process
Animation Link: ..\Videos\Systems approach in IS.mov

Basic Functions of a System


Input
Capturing and assembling elements that enter the
system to be processed
Processing
Transformation process that converts input into output
Output
Transferring transformed elements to their ultimate
destination
Feedback is data about the performance of a system
Control involves monitoring and evaluating feedback
to determine whether a system is moving toward the
achievement of its goals.
makes necessary adjustments to a system's input and
processing components to ensure that it produces proper
output

The Information System transforms the input of data resources


into an output of information and its products. The processed data
as information shall be stored for further uses.

Information System
An information system has a set of interrelated
components that collect (or retrieve), process,
store, and distribute information to support
decision
making
and
control
in
an
organization.
An information system (IS) can be any
organized combination of people, hardware,
software, communications networks, and data
resources that collect, transforms, and
disseminate information in an organization.

Information System

Information System Activities

https://www.scribd.com/doc/396076/Foundations-of-InformationSystems-in-Business

Components of Information System

https://www.scribd.com/doc/396076/Foundations-of-InformationSystems-in-Business

Components of Information System

nformation system in business

Information system
Interrelated components working together to collect,
process, store and disseminate information to support
decision making ,coordination ,control, analyze and
visualization in an organization
Animation Link: ..\Videos\MIS.mp4

Business process
The unique ways in which organizations coordinate
and organize their work activities, information and
knowledge to produce a product or service.

nformation system in business

https://www.scribd.com/doc/396076/Foundations-of-InformationSystems-in-Business

Information system in business

Major business functions

The Major Roles of IS

Traditional IS solution to
Business

Process steps for developing IS in business

Current Problem Solving Process

Current Problem Solving Process:

Animation Link: ..\Videos\SDLC.m


p4

Business applications expanding role over time

Assignmen
t 1:
1. The Indian Railways recently introduced the Web-based
Passenger Reservation System (PRS) and introduced
online payment through credit and debit cards. Explain
how this information system helped Indian Railways in
becoming more efficient not just from the customers
point-of-view but also from the Railways managements
perspective.
2. Difference between Competitive Advantage & Strategic
Advantage.
3. Difference between Information System and Information
Technology.
4. Explain the Effectiveness and efficiency criteria in
information system.

IS Vs IT

Payroll
System

INFORMATION
TECHNOLOGY

Invento
ry
System

Hardware
Software
Databases
Networks
Other related
components

are used to build

INFORMATION
SYSTEMS
Marketin
g
System

Custom
er
Service
System

Effectiveness vs. Efficiency

Business perspective of the information system

Supply chain mgmt, enterprise mgmt,


Customer relationship mgmt,&
knowledge mgmt

Planning, coordinating and controlling

http://www.chris-kimble.com/Courses/World_Med_MBA/Types-ofInformation-System.html

Operation Support System

Transaction Processing System (TPS)

System Architecture: TPS

Process Control Systems

Process Control Systems: example

Enterprise Collaboration System

http://staff.uob.edu.bh/files/781231507_files
/ch5p2.pdf

Management Support
System

Other categories
of IS

How IT increases organization


flexibility
Small companies
IT hardware/software provides precision, speed and quality,
Immediate availability of information eliminating need of
intermediate staff
Better management of distributed staff through information
network
Large companies
Customized product/services can be provided in small
quantities at different locations
Massive database of customer/suppliers records can be
maintained effectively
Easy collection of information and distribution of information
to lower level staff for problem solving

Business environment a change


Emergence of globalization
Global nature, competition in word market, global work
groups, and global delivery system
Transformation of industrial economics
Knowledge based economics, new products& services, time
based competition, shorter product life limited employee
knowledge base
Transformation of enterprise
Flattening of organizations , decentralization, flexibility
location
independence,
low
cost
of
coordination,
empowerment, collaborative and team work,
Emerging digital nature of business
Digital relationship among customer, supplier and employees
Core business being achieved through digital networks
Rapid sensing and responding to environmental changes

Information Architecture of the organization

Information Architecture of the organization


Information architecture as:
The combination of organization, labeling, and
navigation schemes within an information
system.
The structural design of an information space
to facilitate task completion and intuitive
access to content.
The art and science of structuring and
classifying web sites and intranets to help
people find and manage information.
An emerging discipline and community of
practice focused on bringing principles of
design and architecture to the digital
landscape.

SUMMARY
1.

( LECTURE NOTES 1 Information Systems in Global Business Today)

Explain why Information Systems are so essential in business today.

Information Systems are fundamental for conducting Business today.

In many industries, survival and even existence is difficult without


extensive use of Information Systems.

Information Systems have become essential for helping organizations


operate in a global economy.

Organization are trying to become more competitive and efficient by


transforming themselves into Digital Firms where nearly all core
business processes and relationship with customers, suppliers, and
employees are digitally enabled.

Business today
objectives:

use

Information

Systems

to

1. Operational excellence
Decision making
2. New product, Services & Business models
advantage
3. Customer / Supplier intimacy
survival

achieve

six

major

4. Improved
5. Competitive
6. Day-to-day

2. Define an Information System from both Technical and


Business perspective
From a Technical perspective:
An
Information
System
collects,
stores,
and
disseminates Information from an organizations
environment and internal operations to support
organizational
functions
and
decision
making,
communication, coordination, control, Analysis and
visualization.
Information Systems transform raw data into useful
Information through three basic activities:
Input,
Processing and Output
From a Business perspective
An Information System provides

a solution to a

3. Identify and describe the three dimensions of Information Systems


An Information System represents a combination of Management,
Organization, and Technology elements.

The Management Dimension involves:


Leadership,
Strategy,
Management behaviour.

The Organization Dimension involves:


Organizations hierarchy,
Functional specialities,
Business Processes,
Culture,
Political interest groups

The Technology Dimension consists of:


Computer Hardware,
Software,
Data Management technology,

Network / Telecommunications technology (including


the Internet.)

Important
Questions

1.
2.
3.
4.
5.
6.

What
is
information
system?
Explain
importance of information system in business.
Define fundamentals of information system?
Explain information system resources.
How information system is useful in solving
business
problems
and
what
are
the
components of IS?
Describe various types of information system.
What do you mean by system? Explain the
difference between Data and information.
Define Management Support System and
Decision Support System.

UNIT 2

An overview of
Management Information
Systems

Survey on MIS

MIS

mation Link: ..\Videos\Management Information Systems & its Function

MIS
The MIS is defined as a system which provides
information support for decision making in the
organization.
MIS is a system for collecting, processing,
storing, disseminating and utilizing data in the
form of information needed to carry out the
functions of management
The management information system is defined
as an integrated system of man and machine for
providing the information to support the
operations, the management & decision making
function in the organization.

Structure of MIS

Structure of MIS
Structure of MIS is a difficult concept to
understand because there is no standard or
universally accepted framework for describing
management information system. For example , A
car may be perceived in a number of different
way; by describe the physical characteristics, i.e.
its shapes, color, seating capacity, door etc. MIS
structure be described by following a variety of
different approaches:
1. Physical components,
2. Information system processing functions,
3. Decision support
4. Levels of management activities
5. Organizational functions

Decision Making
A step in problem solving
Intelligence gathering
Definition of problem
Data gathered on scope
Constraints identified
Design phase
Alternatives identified and
assessed
Choice
Selection of an alternative

Decision Making in Management Information Systems

Strategic Management
The People
Decisions
Board of Directors
Develop Overall Goals
Chief Executive
Long-term Planning
Officer
Determine Direction
President
Political
Economic
Competitive

Tactical Management
People
Business Unit
Managers
Vice-President to
Middle-Manager

Decisions
short-medium range
planning
schedules
budgets
policies
procedures
resource allocation

Operational Management
People

Middle-Managers to
Supervisors
Self-directed teams

Decisions
short-range planning
production schedules
day-to-day decisions
use of resources
enforce polices
follow procedures

Levels of Management Decision Making


Strategic group of executives develop overall
organizational goals, strategies, policies, and
objectives as part of a strategic planning process
Tactical managers and business professionals in
self-directed teams develop short- and mediumrange plans, schedules and budgets and specify
the policies, procedures and business objectives for
their subunits
Operational managers or members of selfdirected teams develop short-range plans such as
weekly production schedules

Decision Structure
Structured situations where the procedures to follow
when a decision is needed can be specified in advance
Unstructured decision situations where it is not
possible to specify in advance most of the decision
procedures to follow
Semi structured - decision procedures that can be
pre-specified, but not enough to lead to a definite
recommended decision

Decision Support Systems


Decision support systems (DSS) are interactive
software-based systems intended to help
managers in decision-making by accessing
large volumes of information generated from
various related information systems involved in
organizational business processes such as
office
automation
system,
transaction
processing system, etc.
Animation Link: ..\Videos\DSS.mp4

Decision Support Systems

Decision Support Systems

Analytical Modeling is the key: example


Type of
Modeling
What-if
analysis
Sensitivity
analysis

Example
What if we cut advertising by 10%
what would happen to sales?
Lets cut advertising by 1%
repeatedly so we can see its
relationship to sales
Lets try increasing advertising until
sales reach $1 million

Goalseeking
analysis
Optimizatio What level of advertising maximizes
n analysis
our overall profit?

Decision Support Systems:


characteristics
1. Support for decision-makers in semi-structured
and unstructured problems.
2. Support for managers at various managerial
levels, ranging from top executive to line
managers.
3. Support for individuals and groups. Less
structured
problems
often
requires
the
involvement of several individuals from different
departments and organization level.
4. Support for interdependent or sequential
decisions.
5. Support for intelligence, design, choice, and
implementation.

DSS Components

http://dsssystem.blogspot.in/2010/01/components-of-decisionsupport-systems.html

DSS Components: example


For an example of the components of a
Decision Support System, lets consider the
Decision Support System that Lands End has tens
of millions of names in its customer database. It
sells a wide range of womens, mens, and
childrens clothing, as well various household wares.
To match the right customer with the catalog, lands
end has identified 20 different specialty target
markets. Customers in these target markets receive
catalogs of merchandise that they are likely to buy,
saving Lands End the expense of sending catalogs
of all products to all 20 million customers. To predict
customer demand, lands end needs to continuously
monitor buying trends. And to meet that demand,

DSS Components: example


To accomplish theses goals, it uses a Decision Support
System which performs three tasks:
Data management:The Decision Support System stores
customer and product information. In addition to this
organizational information, Lands End also needs
external information, such as demographic information
and industry and style trend information.
Model management:The Decision Support System has to
have models to analyze the information. The models
create new information that decision makers need to plan
product lines and inventory levels. For example, Lands
End uses a statistical model called regression analysis to
determine trends in customer buying patterns and
forecasting models to predict sales levels.
User interface management:A user interface enables
Lands End decision makers to access information and to

DSS Components: example

Decision Support
Systems

How MIS support DSS????


MIS support decision making in both
structured
and
unstructured
problem
environments.
MIS support decision making at all levels of
the organization.
MIS are intended to be woven into a fabric
of the organization.
MIS support all aspects of decision making
process.

MIS vs. DSS

Data Processing Cycle

Applications of Data Processing

MIS Vs. Data Processing


Data are typically subjected to processing activities
such as calculating, comparing, sorting, classifying and
summarizing.
These activities organize, analyze and manipulate data,
thus converting them into information for end users.
Data processing is handling row data in a systematic
manner to confirm to the data quality standards as
determined by the designer of the information system.

MIS Vs. Data Processing contd


The data generation processing
following steps:
Data Acquisition
Data Transformation
Management of information

involves

the

MIS Vs. Data Processing

Data Acquisition
Data are facts expressed with the help of symbols.
Such as alphabets, digits, graphs, diagrams or in
any other form. Whatever may be the source of
data, it may be initially recorded & later verified
for accuracy & authenticity. This activity is known
as data capture.

Data Transformation and Management of Information

Data Transformation may be done by calculating,


classifying, summarizing or by rearranging.
After transforming the data, the processed data
may either be communicated to end user, or may
be stored for further reference. In case of data
communication to the end user, the appropriate
channel of communication is to be selected & used.

Information Resource Management

Information Resource Management

MIS & IRM


Management Information Systems
1.
Control of Data
2.
Organization
3.
Boundaries
Information
Resources
Management
or
Information Infrastructure management
4. Information is an asset that should be
managed
5. Requires process and systems knowledge,
communication, and technical expertise
6. Used by information workers who create
and process information

MIS & IRM

http://www.slideshare.net/achmati
m/w-5-irm

Benefits of IRM

Typical MIS Reporting


Periodic Scheduled Reports
Example: Monthly Financial Statements
Exception Reports
Example: List of items out of stock
These reports contain information but they
might not directly help you determine the best
decision to make.

More MIS Reports


Demand Reports and Responses
Available whenever a manager needs them,
updated in real-time.
Push Reporting
Information is pushed to a managers computer
Example: Report is pushed every time a supplier is
late with a shipment
Key-indicator report
Summarizes the previous days critical activities
Typically available at the beginning of each day
MIS Reporting is all about giving managers feedback
and doesnt necessarily help directly with decision
making.

End User Computing


In 1980s several new roles for information systems
appeared.
First the rapid development of microcomputer
processing power, application software packages,
and now end users could use their own computing
resources to support their job requirements instead
of waiting for the direct support of corporate
information services department.

THE EMERGENCE OF USER APPLICATION


DEVELOPMENT
Why end-user computing?

End User Development


IS professionals play a consulting role, while uses
do their own application development
A staff of user consultants may be available
to help with analysis, design, and installation
Other support
Application package training
Hardware and software advice
Help gaining access to organization databases

Focus on IS Activities
End user development should focus on the
fundamental activities of an information
system
Input
Processing
Output
Storage
Control

Focus of End User Development

Doing End User Development

Application development capabilities built into


software packages make it easier for end users
to develop their own solutions

Encouraging End User Web Development


Look for tools that make sense
Some are more powerful or costly than needed
Spur creativity
Consider a competition among departments
Set some limits
Limit what parts of a web page or site can
be changed and who can do it
Give managers responsibility
Make them personally responsible for content

Encouraging End User Web Development


Make users comfortable
Training will make users more confident
It can save the IT department the trouble
of fixing problems later on
It can limit the need for continuous
support

Effectiveness/Efficiency criteria of an MIS system

MIS is designed primarily to make the


management
effective
to
achieve
the
organization objectives efficiently.
Therefore
design
of
the
organization
management
practices
and
management
philosophy along with environment factors
together will make MIS very effective.
Negandhi Estafer, provided a good model for
analyzing
management
effectiveness
in
achieving the goal and objectives. The mode as
shown initial emphasis on.
Management Philosophy
Environment Factors

Effectiveness/Efficiency criteria of an MIS system

The Ethical Dimensions of IT


As a prospective managerial end user and
knowledge worker in global society, we should also
become aware of the ethical responsibilities
generated by the use of information technology.
For ex, what uses of IT might be considered
improper, irresponsible, or harmful to other
individuals or to society?
What is the proper use of organizations information
resources?
How can we protect our self from computer crime
and other risks of IT?

The Ethical Dimensions of IT

Important
Questions
1. How can information technology support a
companys business processes and decision
making, and give it a competitive advantage?
2. How does the use of the Internet, intranets,
and extranets by an e-business enterprise
support their e-commerce activities?
3. Why do big companies still fail in their use of
information technology? What should they be
doing differently?
4. How can a manager demonstrate that he or
she is a responsible end user of information
systems?

Important
Questions

5. What are some of the toughest management


challenges in developing IT solutions to solve
business problems and meet new e-business
opportunities?
6. Why are there so many conceptual
classifications of information systems? Why
are they typically integrated in information
systems found in the real world?
7. In what major ways have the roles of
information systems applications in business
expanded during the last 40 years? What is
one major change you think will happen in the
next 10 years?
8. Can the business use of Internet technologies

SDLC

SDLC Definition

SDLC is the process of understanding how an information


system (IS) can support business needs by designing a
system, building it, and delivering it to the users

System Investigation
Determine if a new system is needed
Three primary tasks:
1. Define the problem
By observation and interview, determine
what information is needed by whom,
when, where and why
2. Suggest alternative solutions
3. Prepare a short report

System
Investigation
The current system
1. how staff / customers interact with the current
system i.e. how tasks are carried out
2. how other systems interact with the current
system
3. what is good about the current system
4. what causes problems with the current system
5. which parts of the system are critical to the
business
The proposed new system
6. what the new system is expected to be able to
do
7. how the new system is expected to do this
8. what people want from the new system
9. which working methods from the old system

Feasibility Study

Feasibility Study
Feasibility Studies typically involves cost/benefit
analysis.
If the cost and benefits can be quantified, they are
called tangible; if not they are called intangible.
Tangible benefits are favorable results, and easy
to estimate
Intangible benefits are harder to estimate, and
difficult to quantify.

Feasibility Study

System analysis
It is an in depth study of end user information
needs that produces functional requirements
that are used as the basis for the design of a
new information system.
The system analysis traditionally involves a
detailed study of :
The information needs of the organization
and end users like yourself.
The activities, resources, and products of any
present information system.
The information system capabilities required
to meet our information needs, and those of
other end users.

System Design
System analysis describes what a system should do to
meet the information needs of user.
System design specifies how the system will
accomplish this objective.
System design consists of design activities that
produce system specifications satisfying the functional
requirements developed in the system analysis stage.

System Design

System Coding & Testing


The system design needs to be implemented to make
it a workable system.
The coding of the design into computer language,
i.e., programming language. This is also called the
programming phase in which the programmer
converts the program specifications into computer
instructions, which we refer to as programs
It is an important stage where the defined
procedures
are
transformed
into
control
specifications by the help of a computer language
The programs coordinate the data movements and
control the entire process in a system, so the right
programming language should be chosen

System Coding & Testing


Before actually implementing the new system into
operations, a test run of the system is done
removing all the bugs, if any
After codifying the whole programs of the system, a
test plan should be developed and run on a given
set of test data
The output of the test run should match the
expected results. Sometimes, system testing is
considered as a part of implementation process.
Using the test data following test run are carried out:
Program test
System test

System Investigation
In this stage physical system specifications are converted
into a working and reliable solution. This is where the
system is developed. It is followed by testing and then
implementation.
Implementation Phases:
Coding: Includes implementation of the design specified
in the design document into executable programming
language code. The output of the coding phase is the
source code for the software that acts as input to the
testing and maintenance phase.
Integration and Testing: Includes detection of errors in
the software. The testing process starts with a test plan
that recognizes test-related activities, such as test case
generation, testing criteria, and resource allocation for
testing. The code is tested and mapped against the
design document created in the design phase. The
output of the testing phase is a test report containing
errors that occurred while testing the application.

System Implementation
Key Deliverables:
Fully Installed system
Fully trained users
User and Operational
Documentation

System Maintenance
Maintenance is necessary to eliminate errors in
the system during its working life and to tune the
system to any variations in its working
environments.
It must meet the scope of any future
enhancement, future functionality and any other
added functional features to cope up with the
latest future needs.
It has been seen that there are always some
errors found in the systems that must be noted
and corrected.
It also means the review of the system from time
to time
The review of the system is done for:
knowing the full capabilities of the system

SDLC example: Prototyping model


Prototyping is the rapid development and
testing of working models
1. An interactive, iterative process used during
the design phase
2. Makes development faster and easier,
especially when end user requirements are
hard to define
3. Has enlarged the role of business stakeholders.

Prototyping Life Cycle

Deliverables of the SDLC


Approved Feasibility
Study

Preliminary
Investigation
System
Analysis

System
Design

Problem
Specifications

Design Specifications
System
Development

Begin building
new system

Abort Project
Goto next phase
Goto Previous phase

Coded and
Tested System

System
Implementation

System converted
Users trained

System
Maintenance
Operational System
Documentation completed

Assignment-2
1. Write a short note on
Cloud Computing
Green Computing
Black box vs. White box testing
2. Difference between the following:
Functional
requirements
and
system
specifications
Verification and Validation
3. Suppose you have implemented a newlydeveloped salary information system in your
organization. Identify its activities and categorize
it in suitable category of MIS

Verification

Validation

Evaluates the intermediary


products to check whether it
meets the specific
requirements of the particular
phase

Evaluates the final product to


check whether it meets the
business needs.

Checks whether the product is


built as per the specified
requirement and design
specification.

It determines whether the


software is fit for use and
satisfy the business need.

Checks Are we building the


product right?

Checks Are we building the


right product?

This is done without executing


the software

Is done with executing the


software

Involves all the static testing


Includes all the dynamic testing
techniques http://www.softwaretestingclass.com/difference-betweentechniques.
verification-and-validation/