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MANAGEMENT INFORMATION SYSTEM PORF. KUMARGAURAV – MARWADI EDUCATIONS (MEFGI) RAJKOT
STRICTLY FOR INTERNAL CIRCULATION - ONLY FOR MARWADI MBA PROGRAMME PROF. KUMARGAURAV – FACULTY MIS, MARWADI EDUCATIONS RAJKOT
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MANAGEMENT INFORMATION SYSTEM
MANAGEMENT INFORMATION SYSTEM PORF. KUMARGAURAV – MARWADI EDUCATIONS (MEFGI) RAJKOT
STRICTLY FOR INTERNAL CIRCULATION - ONLY FOR MARWADI MBA PROGRAMME PROF. KUMARGAURAV – FACULTY MIS, MARWADI EDUCATIONS RAJKOT
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CONTENTS
Sr. No. Particulars Page no.
1 Basics of Management Information System 3
2 Characteristics of MIS & Components of an information system 4
3 MIS Model & System approach 5
4 History of the role of information systems 7
5 Information System Application
Challenge of information systems
9
10
6 Data base management system , Types of Data Model 13
7 It & infrastructure/ architecture 14
8 Firm’s IT service & Infrastructure 16
9 MIS & strategy 16
10 Competitive advantages with is 17
11 Internet & Its application 18
12 Enterprise resources planning 20
13 Management Challenges of the E-Business Enterprise 22
14 Digital Firm 23
15 EDI (Electronic data interchange) 27
16 E-Commerce & Its Model 30
17 Digital Wallet 33
18 (CRM)Customer Relationship Management 34
19 Tele communication & Network’s 36
20 Types of Networks 39
21 System Development Life Cycle Process 42
22 Re engineering of Business Process 45
23 International Information System 46
24 Information Security , Its Management, Ethical & social Issue 49
25 Hardware & Software 54
26 Knowledge Management system 61
27 Artificial Intelligence 64
28 Business Value of MIS / IT /IS 67
29 Important concept & Glossary 73
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MANAGEMENT INFORMATION SYSTEM
Management Information System is an information system application
that provides for management- oriented reporting.
These reports are usually generated on a programmed schedule and appear in
a arranged format.
MIS is a computer based system that provides flexible & speedy access to
accurate data.
Information system for management The set of interrelated components
that collect , process , store & distribute information to support decision
making to organization.
Walker Kennevans - it is an organized method of providing past, present &
projection information relating to internal operations & external intelligence.
Lucey – MIS is a system to convert data from internal and external sources
into information & to communicate that information in an appropriate from to
manager at all level, in all functions, to enable them to make timely & effective
decisions for planning, directing & controlling the activities for which they are
responsible.
Information system supports the planning control and operational functions
of an organization by furnishing uniform information in the proper time-
frame to assist the decision making process.
Stoner & Wankel – MIS is a formal method of making available to
management the accurate and timely information, necessary to facilitate the
decision making process & enable the organization’s planning, control and
operational functions to be carried out effectively.
MANAGEMENT INFORMATION SYSTEM PORF. KUMARGAURAV – MARWADI EDUCATIONS (MEFGI) RAJKOT
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Characteristics of Management Information System
Formal Arrangement It is an integrated system Attached to various levels of management Useful for decision making Management Oriented Useful of principle of exception Arrangement for classification & Analysis Efficient arrangement of communication Storing information’s
Components of an information system
People Hardware Software Data Networks
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Contemporary Approach to MIS
Technical Approach
Behavioral Approach
Socio Technical Approach
MIS MODEL
HERE U CAN DRAW THE REAL WORLD ADAG MIS MODEL
ADAG – THE CORPORATE MIS MODEL
• "MIS 'lives' in the space that intersects technology and business. • MIS combines technology with business to get people the information
they need to do their jobs better/faster/smarter. • Information is the lifeblood of all organizations - now more than ever.
MANAGEMENT INFORMATION SYSTEM PORF. KUMARGAURAV – MARWADI EDUCATIONS (MEFGI) RAJKOT
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A (MIS) is a subset of the overall internal controls of a business covering the
application of people, documents, technologies, and procedures by
management accountants to solve business problems such as costing a
product, service or a business-wide strategy. Management information
systems are distinct from regular information systems in that they are used to
analyze other information systems applied in operational activities in the
organization.[1] Academically, the term is commonly used to refer to the group
of information management methods tied to the automation or support of
human decision making, e.g. Decision Support Systems, Expert systems, and
Executive information systems.[1]
It has been described as, "MIS 'lives' in the space that intersects technology
and business. MIS combines tech with business to get people the information
they need to do their jobs better/faster/smarter. Information is the lifeblood
of all organizations - now more than ever. MIS professionals work as systems
analysts, project managers, systems administrators, etc., communicating
directly with staff and management across the organization."
SYSTEM APPROACH
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HISTORY OF THE ROLE OF INFORMATION SYSTEMS
TYPES OF INFORMATION SYSTEM:-
Operational Level System: Information System that monitor the elementary
activities and transactions of the organization. Eg sales, receipts, cash
deposits, payroll etc.
Knowledge Level System: Information System that supports data workers
and knowledge in an organization.
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Management Level System: Information System that support the
monitoring, controlling, decision-making and administrative activities of
middle managers.
Strategic Level System: Information System that support the long range
planning activities of senior management. e.g what will employment levels
after five years? What product should we making in five years?
KEY INFORMATION SYSTEMS APPLICATION IN THE ORGANIZATION
TPS(Transaction Processing System): Computerized systems that
performed and record the daily routine transactions necessary to conduct the
business; they serve the operational level of the organization.
OAS(Office Automation System): Computer system such as word processing,
electronic mail system etc. that are designed to increase the productivity of
data workers in the office.
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KWS(Knowledge Work System): Information system that aid knowledge
workers in the creation and integration of new knowledge in the
organization.
MIS(Management Information System): Management Information System
is at the management level of an organization that serve the function of
planning, controlling, and decision making by providing routing summery and
expectation reports.
DSS(Decision Support System ): Information System at the management
level of an organization that combine data and sophisticated analytical
models to support semi structured and un structured decision making.
ESS(Executive Support System):Information System at the strategic level of
an organization designed to address un structured decision making through
advanced graphics and communication.
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THE CHALLENGE OF INFORMATION SYSTEMS
1 - The Strategic Business Challenge: How can Business use information
technology to design organization that are competitive and effective?
2 - The Globalization Challenge: How can firm understand the Business and
system requirement of a global economic environment?
3 - The Information Architecture Challenge: How can organizations
develop an information architecture that supports their business goal?
4 - The Information system investment challenge: How can organizations
determine the business value of information system?
5 - The Responsibility and control challenge: How can organizations design
systems that people can control and understand? How can organization
ensure that their information system are used in an ethically and socially
responsible manner?
AN INFORMATION SYSTEM FRAMEWORK FOR BUSINESS PROFESSIONALS
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DATA VS. INFORMATION :-
Data A “given,” or fact; a number, a statement, or a picture Represents something in the real world The raw materials in the production of information
Information Data that have meaning within a context Data in relationships Data after manipulation
Data base management system Data – Raw facts or observation of things, events, activities & transactions that are captured, recorded, stored, and classified but not organized to convey any specific meaning. Data base – A logically group of related data & files.
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DBMS – Database management system – A set of computer programs that controls the creation , maintenance, and utilization of the databases of an organization. DBMS is a system that creates, manages, and controls a database used by managers for analysis & decision making. Relational DBMS = RDBMS Data files are structured as relations (tables) Eg – Amazon , Bank Benefits of Database Approach • Irregularity can be avoided • Data can be shared • Standards can be enforced • Security limits can be applied • Credit can be maintained • Data independence can be provided • Backup and Recovery • Idleness can be reduced RDBMS Relational Databases Provide: • Tabular Data model: simple, yet powerful • A Standard easy-to-use query Language: SQL • Mature Products with Reliable, Fault-Tolerant Operations available • Good Performance
– High number of transactions per second – Parallel operation for scalability (handle growth)
• Distributed and Replicated Data Bases – Interoperation, High availability
Data warehouse – An integrated collection of data extracted from operational, historical, and external database, and cleaned, transformed, and catalogued for recovery and analysis, to provide business intelligence for business decision making
MANAGEMENT INFORMATION SYSTEM PORF. KUMARGAURAV – MARWADI EDUCATIONS (MEFGI) RAJKOT
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Types of Data Models
Hierarchical Network Relational Object Oriented Entity Relationship
Data Mining : Data mining is concerned with the analysis of data and the use of software technique for finding patterns and regularities in sets of data. It’s the computer responsible for finding the patterns by identifying the underlying rules and features in the data. Inconveniency Issue in Data Mining Mining methodology & User interaction issues Performance Issues Issues related to the diversity of database types\ Data Mining applications Data Mining for financial Industry Data Mining for retail industry Data Mining for telecommunication
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IT & Infrastructure/ Architecture
Information systems architecture provides a combine framework into
which various people with different perspectives can organize and view the
fundamental building blocks of information systems.
CENTRALIZED INFRASTRUCTURE ( ADAG )
DECENTRALIZED INFRASTRUCTURE ( DEPARTMENT WISE }
DISTRIBUTED INFRASTRUCTURE ( ASIA , UK , USA )
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IT Components / Architecture
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STRATEGIC MANAGEMENT INFORMATION SYSTEM
STRATEGY
“Strategy is a unified comprehensive and integrated plan designed to ensure
that the basic objectives of the enterprise are achieved.”
Strategy – A common vision that joins to gather an organization & provide
consistency in decision and keeps the organization moving in right direction.
Its journey of excellence
Good to greater and better to best
Strategy is the determines of long term goal of an enterprise
Andrew Carnegie – Strategy is the pattern of objectives purpose or goal and plan for achieving these
Michal Cami – With out strategy organization is like ship with out a radar Chandler – Strategy as the determination of the long term goals and
objectives of an organization & allocation of resources necessary for carrying out these goals
Drucker – SM is not a base of tricks or a bundle of techniques it is analytical thinking & commitment of resources to action
Strategic Level System: Information System that support the long range planning activities of senior management. e.g. what will employment levels after five years? What product should we making in five years?
Unit level Strategy Business strategy – How a firm competes in a given business Corporate strategy – Determines what business or businesses the
company should be in a focus on the scope of the firm
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Competitive Advantages with IS : There are two models of firm and its
environment have been used to identify the where information system can
provide advantages over competitors.
A. Competitive force model
B. Value chain model
A.Competitive force model:
Model used to describe the interaction of external influence, specifically
threats and opportunities, that affect an organization’s strategy and
ability to compete.
Competitive Rivalry
Within an Industry
Bargaining Power OfSuppliers
Bargaining Power of Customer
Threat of New
Entrants
Threat of Substitute Products
Competitive Forces- Michael Porter’s
Model
1.Product Differentiation
2. Focused Differentiation
3. Switching costs
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B.Value chain model :
Model that highlights the primary or support activities that add a margin
of value to a firm’s products or services where information systems can
best be applied to achieve a competitive advantage.
1. Primary activities
2.Support activities
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INTERNET The largest network of networks in the world.
Runs on any communications substrate
Internet – Global network of networks using universal standards to
connect millions of different networks.
Intranet – An internal network based on internet and world wide web
technology & standard.
Network – The linking of two or more computers to share data or
resources.
A network of networks, joining many government, university and
private computers together and providing an infrastructure for the use
of E-mail, bulletin boards, file archives, hypertext documents, databases
and other computational resources
The vast collection of computer networks which form and act as a single
huge network for transport of data and messages across distances
which can be anywhere from the same office to anywhere in the world.
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ENTERPRISE SYSTEMS
Integrated enterprise –wide information systems that co -ordinate
key internal processes of the firm
ES is a large software application that Enterprise use to manage their
operations. These systems have become a key way by which large
organization distribute information's of all kinds to their workforce,
supplier & customers
ERP – ENTERPRISE RECOURSES PLANNING:-
ERP - An integrated process of planning & managing all major
business process with single client / server architecture in real
time , Including contacts with business partner & customer.
ERPIS – seeks to standardize, streamline & integrate diverse operations
& information flows in a company by synergizing its recourses through
information technology.
ERP - as greater equalizer
ERP - the data flows like a river
ERP – performance improvement program.
The Goal of an ERP System - The goal of ERP is to improve and
streamline internal business processes, which typically requires
reengineering of current business processes MIS is an integrated
collection of functional information systems, each supporting particular
functional areas.
Enterprise resource planning (ERP) is the industry term used to
describe a broad set of activities supported by multi-module application
software that helps a manufacturer or other business manage the
important parts of its business. These parts can include product
planning, parts purchasing, maintaining inventories, interacting with
suppliers, providing customer service, and tracking orders. ERP can also
include application modules for the finance and human resources
aspects of a business.
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Companies before ERP Systems
Advantages
Eliminate costly, inflexible legacy systems
Provide improved work processes
Provide access to data for operational decision making
Upgrading technology infrastructure
Disadvantages
Time consuming, difficult, expensive to implement
Make radical changes in how a company operates
Lack of vendor responsiveness in light of high demand
Management Challenges of the E-Business Enterprise
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Example for ERP as well as Supply chain management
WAL-MART STORES, INC
1962 – 1964 - Sam Walton names his new stores WALMART. The
Wal-Mart name was presented in just about any font/style
available to the printer.
100 million people shop at Wal-Mart stores each week
Sales in 2003 topped $256 billion
Our Purpose : - Saving People Money So They Can Live Better
International Operations over 52 Countries
Argentina , Central America , India , Puerto Rico
Brazil , Chile ,Japan ,United Kingdom ,Canada , China
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EMERGENCE OF THE DIGITAL FIRM:-
Digitally-enabled relationships with customers, suppliers, and
employees.
Core business processes accomplished via digital networks.
Digital management of key corporate assets.
Rapid sensing and responding to environmental changes.
Quick sensing and responding to environmental changes.
Seamless flow of information within the firm, and with strategic
partners.
Core business processes accomplished using digital networks.
Digital management of key corporate assets.
DIGITAL DEFINED:
Digital describes electronic technology that generates,
stores, and processes data in terms of two states: positive and non-
positive. Positive is expressed or represented by the number 1 and non-
positive by the number 0. Thus, data transmitted or stored with digital
technology is expressed as a string of 0's and 1's. Each of these state digits is
referred to as a bit (and a string of bits that a computer can address
individually as a group is a byte).
• Prior to digital technology, electronic transmission was limited to
analog technology, which 0conveys data as electronic signals of varying
frequency or amplitude that are added to carrier waves of a given
frequency. Broadcast and phone transmission has conventionally used
analog technology.
• Digital technology is primarily used with new physical communications
media, such as satellite and fiber optic transmission. A modem is used to
convert the digital information in your computer to analog signals for
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your phone line and to convert analog phone signals to digital
information for your computer.
To Be a Digital Firm:-
Truly digital firm is one that uses Web and Internet-based tools and
protocols to create a firm without media breaks.
Book says: “all significant business processes and relationships with customers, suppliers, and employees are digitally enabled, and key corporate assets are managed through digital means”
WHY IT IS REQUIRES?
Today, it is widely recognized that information systems knowledge is
essential for managers
because most organizations need information systems to survive and
prosper.
Information systems can help companies extend their reach to faraway
locations, offer new products and services, reshape jobs and workflows,
Lastly, four most powerful changes have altered the business
environment namely described below.
How it works?
Today, information systems provide the communication and analytic
power that firms need to conduct trade and manage businesses on a
global scale.
Communicating with distributors and suppliers, operating 24 hours a
day:
1. in different national environments,
2. coordinating global work teams,
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3. and servicing local and international reporting needs is a major
business challenge that requires powerful information system
responses
COMPETITIVE BUSINESS WORLD & DIGITAL FIRM The first change is the emergence and strengthening of the global
economy. The second change is the transformation of industrial economies and
societies into knowledge- and information-based service economies. The third is the transformation of the business enterprise. The fourth is the emergence of the digital firm.
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•
EDI (ELECTRONIC DATA INTERCHANGE)
It is the electrical exchange of business documents in standard
computer process and universally accepted format.
Here sender and receiver both are consider as trading partner.
Trading partner has to agree for the format of business documents
which are sent over the internet.
Here Business documents send through electronically from either
side there is no need of re keying the data.
COMPONENT OF EDI
o EDI Standards:
To exchange the information from independent of hardware and
software, there is a need of standard format of data which is universally
accepted.
o EDI Software:
Main Functions of EDI software
* Data Conversion
* Data Formatting
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* Message Communication
Sender
Receiver
Role of EDI:
* EDI Enables business to reduce cost of
Faxing and phones
Manual Documents handling
Time
* EDI Reduce settlement costs of
Shipping the goods
Sending the payment
Notification of payment received
Labor intensive
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INTRODUCTION:-
COMMERCE
Commerce: Exchange of Goods / Services
Contracting parties: Buyer and Seller
Fundamental principles: Trust and Security
Intermediaries:
Direct (Distributors, Retailers)
Indirect (Banks, Regulators)
Money is a medium to facilitate transactions
Attributes of money:
o Acceptability, Portability, Divisibility
o Security, Anonymity
o Durability, Interoperability
E-Commerce
Automation of commercial transactions using computer and
communication technologies
Facilitated by Internet and WWW
Business-to-Business: EDI
Business-to-Consumer: WWW retailing
Some features:
o Easy, global access, 24 hour availability
o Customized products and services
o Back Office integration
o Additional revenue Stream
What is E-commerce?
Process of buying, selling, or exchanging
products, services, and information
Through computer networks.
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FEATURES OF E-COMMERCE:
1.) Universal (Ubiquity):
• It is available just about every where
• It is possible to shopping from your desktop
• It reduce transaction costs
I.e. cost to participate in physical market.
2.) Global Reach:
• It permits commercial transaction to cross national boundaries.
• Potential market size for e-commerce approximately over 400
million as up to 2003-04.
03.) Universal Standard:
• To sale product to global audience, Universal technical standard
is unusual feature of E-Commerce.
04.) Richness:
• Compare to traditional markets they have great richness. They
able to provide personal, face to face service.
• On internet oral and visualization of product makes more
richness.
05.) Interactivity:
• They allow for merchant and consumer communication.
• It allowed consumer interactivity through online form, chat room
etc.
06.) Information Density:
• E-Commerce markets, prices and costs become more transparent.
• Online consumer will become real consumer.
• It segments the markets into groups who willing to pay different
prices.
07.) Personalization / Customization:
• E-Merchants can target their marketing message to individuals.
• From information density, past purchase of behavior, level of
personalization will increase.
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CLASSIFICATION OF E-COMMERCE / E.COM MODEL’s
Business-to-business (B2B):
All the participants are businesses or other organizations.
Business-to-consumer (B2C):
The businesses sell their products to consumers (individual shoppers).
Business-to-business-to-consumer(B2B2C):
A business provides some service to a client business. The client
business maintains its own Customers, to whom the service is finally
Provided.
Consumer-to-business (C2B):
Individuals can sell products or provide services Through the Internet
to organizations.
Consumer-to-consumer (C2C):
An individual can sell products or services directly to another
individual.
Mobile commerce (M-commerce):
E-commerce in a wireless mobile environment.
G to B ( Govt. to Business)
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ADVANTAGES OF B2C E-COMMERCE
1. May eliminate need for maintaining physical shop front
2. Reduced transaction costs; increased transaction speed
3. Ease of crossing geographical boundaries
4. Web sites available 24/7
5. Ease of updating existing and distributing new information
6. Providing additional value for customers
7. Internet: universal, easy-to-use set of technologies and standards
8. Empowers smaller companies
9. Convenience
DIGITAL WALLETS
Digital Wallets are authenticate the consumer through the use of digital
certificates or other encryption methods, stores and transfers value, and
secures the payment process from the consumer to the merchant.
Your Digital wallet would support payments using a regular credit
card, digital cash etc...
There are mainly two kinds of digital wallets are there
Client based
o Software application that consumers install on their computers
and that offer consumers convenience by automatically filling out
forms at online stores.
o e.g. MasterCard Wallet, Gator.com
Server based
o Software based authentication and payment services and product
sold to financial institutions that market the systems to merchants
either directly or as a part of their financial service package.
E.g. Microsoft Passport, Novell Digital
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Payment system types
1. Credit card-based methods
a. Credit card over SSL - First Virtual -SET
2. Electronic Cheques
a. - Net Cheque
3. Anonymous payments
a. - Dig cash - CAFE
4. Micropayments & Smart cards
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CUSTOMER RELATIONSHIP MANAGEMENT (CRM)
Customer Relationship Management (CRM) is an information industry
term for methodologies, software and usually internet capabilities that
help an enterprise manage customer relationship in organized way.
CRM Consist of:
1. Helping an enterprise to enable its marketing dept. to identify and
target their best customers, marketing campaigns with clear goal and
objectives.
2. Assisting organization to improve telesales, account and sales
management by optimizing information shared by multiple employees
and streamlining existing processes.
3. Identifying the most profitable customers and providing them highest
level of service.
4. Providing information about customer's need to employees. And from
that build relationships bet. Company, its customer base and its
distribution partners.
BENEFITS OF CRM:
1. Provide faster response to customer inquiries.
2. Increasing efficiency through automation
3. Having deeper knowledge of customers
4. Identifying the most profitable customers.
5. Doing more one to one marketing.
MARKETING AND ADVERTISEMENT ON NET:
Marketing communication having dual purpose:
1.) Branding
2.) Sales.
There are many different forms of online marketing communications like
I.) Online Advertising, II.) E-mail marketing and public relation, here web
site itself viewed as marketing communication tool.
Online Advertising:
Online Advertising is most common tool on web. It is paid message on
web. There are nos. of different forms of online advertisement including..
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• Banner and rich media ads.
• Paid search engine inclusion and placement
• Sponsorships
• Affiliate relationship
Online Financial Services:
• The online financial service is now very powerful like Banking,
Insurance etc. Most of financial institution is increasingly encouraging
their customers to visit their online sites. So the customer can save their
time and access information at their convenient time and place.
• Main Features of online Industries are: Multi channel firms that have
physical branches and solid online offerings are growing faster.
TELE-COMMUNICATION & NET WORKS
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Communications
• The word “Communication” is derived from “communis” Latin meaning
“Common”
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• It stands for a natural activity of all human being to convey or Exchange
opinions, feelings , information & idea to others through words ( written
or spoken ) , body language or signs.
• Create an understanding in the mind of other!
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Telecommunications network components • Terminals: any input/output device that uses networks to transmit or
receive data
• Telecommunications Processors: devices that support data
transmission and reception
• Telecommunications Channels: media over which data are transmitted
and received
• Computers: all sizes and types
• Telecommunications Control Software: programs that control
telecommunications activities
Extranet • Network links that use Internet technologies
– To connect the Intranet of a business
– With the Intranets of its customers, suppliers or other business
partners
Networking is the concept of sharing resources and services. a network of
computers is a group of interconnected system sharing resources and
interacting using a shared resources and interacting using a shared
communication link. A network there is called as a get of interconnected
systems with something to share between connected computers. The shared
resource can be data a printer a fax modem or a service such as a database or
an email system
Network management functions
Traffic Management – manage network resources and traffic to avoid
congestion and optimize service levels to users
Security – provide authentication, encryption, firewall, auditing and
enforcement
Capacity Planning – survey network resources and traffic patterns and
users’ needs to determine how best to accommodate the needs of the
network as it grows and changes
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Topology: structure of a network
Star: ties end user computers to a central computer
Ring: ties local computer processors together in a ring on a relatively
equal basis
Types of Networks
1. Personal area network
2. Local area network
3. Campus area network
4. Metropolitan area network
5. Wide area network
6. Global Personal area network
Personal area network :
A personal area network (PAN) is a computer network used for
communication among computer devices close to one person.
Some examples of devices that are used in a PAN are personal
computers, printers, fax machines, telephones.
Local area network :
A local Area Network (LAN) is a computer network covering a
small physical area, like a home, office, or small group of
buildings, such as a school, or an airport.
Campus area network :
A campus area network (CAN) is a computer network made up of
an interconnection of local area networks (LANs) within a limited
geographical area.
Metropolitan area network :
A metropolitan area network (MAN) is a network that connects
two or more local area networks or campus area networks
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together but does not extend beyond the boundaries of the
immediate town/city.
Wide area network :
A wide area network (WAN) is a computer network that covers a
broad area (i.e. any network whose communications links cross
metropolitan, regional, or national boundaries. Less formally, a
WAN is a network that uses for public communications links.
Global Personal area network :
GAN is a model for supporting mobile communications across an
arbitrary number of wireless LANs, satellite coverage areas, etc.
The key challenge in mobile communications is "handing off" the
user.
Network Architectures & Protocols Protocol: standard set of rules and procedures for the control of
communications in a network
Network Architecture:
– Master plan of standard protocols, hardware, software and
interfaces between end users and computer systems
– Goal of promoting an open, simple, flexible, and efficient
telecommunications environment
Benefiting from systems thinking
The first step in systems thinking is to be able to identify
something as a system.
Identify where the boundary lies and all of the relevant
inputs
Visualizing a set of things and their relationship as system
allows you to translate a specify physical situation into
more general.
By decomposition
The system into subsystems, we can analyze each
subsystem separately and discover if one or more
subsystem is at capacity.
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Its enabled us to determine its problem with demand
SYSTEM DEVELOPMENT LIFE CYCLE
A collection of activities that are carried out to solve the problem of
organization is known as SYSTEM DEVELOPMENT
This system should be cost effective, efficient and as per the planned
specification to solve the organizational problem
A framework that describes the activities performed at each stage of a
software development project.
DEVELOPMENT PROCESS MODEL
Many organization use MIS successfully other do not though
the hardware and the software is the latest and has appropriate technology
its use is more for the collection and storage of data and its elementary
processing there are some features which make the MIS a success and
some other which make it a failure these factors can be summarized as
follows.
System Development Life Cycle1.FEASIBILITY STUDY
2.SYSTEM ANALYSIS
3.SYSTEM DESIGN
4.APPLIACATION DEVELOPMENT
5.PERFORMANCE TESTING
6.IMPLEMETATION
7.MAINTENANCE
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System Development Process
1. Systems analysis
2. System design
3. Programming
4. Testing
5. Conversion
6. Production & maintenance
Systems Analysis
Definition - analysis of problem to be solved with an information system
Major tasks
o Understand the problem
Define the problem
Identify causes
Specify solutions
o Feasibility study: can problem be solved within constraints?
o Establishing information requirements for end users
Deliverables include system proposal, feasibility study, user
requirements
Approval by management to proceed
Role of the end user
Feasibility
Technical: assess hardware, software, technical resources
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Economic: will benefits outweigh costs
Operational: Is solution desirable within existing conditions?
Systems Design
Definition - details how a system will meet the information
requirements determined by systems analysis
Designer responsibilities
o consider alternate technologies
o manage and control the technical realization of the system
o Translate the system requirements into specifications that will
deliver a system that solves the problems determined in systems
analysis
Role of end users in systems design
Examples of Translation of Requirements into Specifications in the
Design Phase
Design of input files (usually database tables)
Procedures (the formulas or algorithms that will be used to process the
inputs into outputs)
Output files (the files that will contain the processed data, or the files
that record input from customers, employees, suppliers, etc.)
User interface (the design of windows, menus, icons, drop down lists,
etc.)
Interfaces (determination of how the system will interact with other
systems; inputs from other systems, outputs to other systems)
Completing System Development Process
Programming: Translating needs to Program Code
Testing: Does System Produce Desired Results?
Unit testing: Tests Each Unit Separately
System testing: Do Modules Function as planned?
Acceptance testing: Final Certification
Test plan: Preparations for Tests to be Performed
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REENGINEERING _ Michal Hammer - The fundamental rethinking &
major redesign of business process to achieve dramatic improvements
in the critical major measure of performance such as cost , quality ,
service , & Speed.
• Fundamental Rethinking
• Major Redesign
• Dramatic Improvement
• New Benchmark
• New Rules
• Department & Functions
• Structure of Processes
• Efficiencies & Effectiveness
• Change in the Mindset
• Customer Satisfaction
• Cost of Overhead
Business Process Re engineering Process1.Begin organizational change
2.Build Reengineering Org
3.Identify BPR Opportunities
4.Understand existing process
5.
5.Re Engineering the process
6.Blue print new system
7.Perform transformation
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Information System Planning Types
• Top-Down Planning: A generic information systems planning
methodology that attempts to gain a broad understanding of the
information system needs of the entire organization.
• Bottom-up Planning: generic information systems planning
methodology that identifies and defines IS development projects based
upon solving operational business problems or taking advantages of
some business opportunities.
Some of the critical factors of successfulInfo Systm implementation
• Top Management commitment• IS Teamwork & Composition• Bus. Plan & Vision• Effective Communication• Project management• Change management• Bus process reengineering• Software development , testing.• Performance evaluation & management• Training & education
Information Planning Methods
• Critical Success Factors (CSF)
• Business System Planning (BSP)
• End/Mean Analysis (E/M)
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Developing an International Information Systems Architecture
The basic information systems required by organizations to coordinate
worldwide trade and other activities
Business driver:
• A force in the environment to which businesses must respond and that
influences the direction of the business
The Global Environment: Business Drivers and Challenges
The global business drivers can be divided into two groups:
General cultural factors:
1. Global communication and transportation technologies
2. Development of global culture
3. Emergence of global social norms
4. Political stability
5. Global knowledge base
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Specific business factors:
1. Global markets
2. Global production and operations
3. Global coordination
4. Global workforce
5. Global economies of scale
Global Business Strategy
Define the Core Business Processes
Identify the core system to coordinate centrally
Choose an Approach: incremental , grand design, Evolutionary
Make the benefits clear
THE MANAGEMENT SOLUTION
Agreeing on common user requirements
Introducing changes in business processes
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Coordinating application development
Coordinating software releases
Encouraging local users to support global systems
Global Systems Strategy
Define the core business processes: Conduct workflow analysis,
identify centers of excellence for these processes
Identify the core systems to coordinate centrally: Conquer the core
systems and define these systems as truly transnational
Choose an approach: Incremental, Grand Design, Evolutionary
Management Challenges in Developing Global Systems
Agreeing on common user requirements
Introducing changes in business processes
Coordinating applications development
Coordinating software releases
Encouraging local users to support global systems
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What is Information Security?
The process of ensuring business systems and information assets are
protected, secure and available.
INFORMATION SECURITY
Information security describes efforts to protect computer and non
computer equipment, facilities, data, and information from misuse by
unauthorized parties
This definition includes copiers, fax machines, and all types of media,
including paper documents
Security - Policies, procedures, and technical measures used to
prevent unauthorized access, alteration, theft, or physical damage to
information systems.
Security policy - Statements ranking information risks, identifying
acceptable security goals, and identifying the problem has a clear-cut
answer provided by an accepted procedure.
Management of Information Security:-
The title corporate information systems security officer (CISSO)
has been used for the person in the organization responsible for the
firm's information systems security.
Now there is a move to designate a corporate information
assurance officer (CIAO) who reports to the CEO and manages an
information assurance unit
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TYPES OF THREATS:-
Viruses – Trojan horse, Worms etc.
Hackers – WAN, Servers, Wireless
Fraud, identity theft, exploitation of confidential and financial
information
Employee & Contractors – Personal Software, Laptops
Intentional damage or accidental error
Cyber terrorism – Corporate Secrets & Intellectual Properties
INFORMATION SECURITYMANAGEMENT (ISM)
ISM consists of four steps:
o Identifying the threats that can attack the firm's information
resources
o Defining the risks that the threats can impose
o Establishing an information security policy
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o Implementing controls that address the risks
Benchmarks are also used to ensure the integrity of the risk
management system
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ETHICS:-
Principles of right and wrong
Used by individuals
As free moral agents
To guide behavior
ETHICS IN AN INFORMATION SOCIETY:-
RESPONSIBILITY: Accepting costs, duties, obligations for decisions
ACCOUNTABILITY: Assessing responsibilities for decisions & actions
LIABILITY: Must pay for legal damages
NEW INFORMATION TECHNOLOGY: ACCOUNTABILITY, LIABILITY &
CONTROL:-
Ethical issues: who is morally responsible for consequences of use?
Social issues: what should society expect and allow?
Political issues: to what extent should government intervene, protect?
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SYSTEM QUALITY: DATA QUALITY & SYSTEM ERRORS:-
o Ethical issues: when is software or service ready for release?
o Social issues: can people trust quality of software, services, and data?
o Political issues: should govt. Or industry develops standards for
software, hardware, and data quality?
MANAGEMENT CHALLENGES:-
o Understand ethical & social issues related to systems
o Ethics in an information society
o Moral dimension of information systems
Managing Enterprise Risk:-
Key activities in managing enterprise-level risk
1. Categorize the information system
2. Select set of minimum (baseline) security controls
3. Refine the security control set based on risk assessment
4. Document security controls in system security plan
5. Implement the security controls in the information system
6. Assess the security controls
7. Determine agency-level risk and risk acceptability
8. Authorize information system operation
9. Monitor security controls on a continuous basis
INTELLECTUAL PROPERTY
Intellectual property: intangible creations protected by law
Trade secret: intellectual work or product belonging to business, not
in public domain
Copyright: statutory grant protecting intellectual property from
copying by others for 28 years
Trade mark: legally registered mark, device, or name to distinguish
one’s goods
Patent: legal document granting owner exclusive monopoly on an
invention for 17 years
INFORMATION RIGHTS:-
Privacy: right to be left alone
Fair information practices (fib):
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No secret personal records
Individuals can access, amend information about them
Use info only with prior consent
Managers accountable for damage done by systems
Governments can intervene
MANAGING HARDWARE & SOFTWARE
What is a Computer?
Definition:
All computers are systems of input, processing, output, storage, and
control components.
A Computer is a physical device that takes data as input, transforms
these data according to stored instructions & output the processed
Information.
A Computer System consists of
CPU
Primary Storage
Secondary Storage
Input Device
Output Device
Communication device
The basic five Operation of a computer Systems
1. Inputting
2. Storing
3. Processing
4. Outputting
5. Controlling
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Input & Output Devices
1. Input Device
1. Keyboard
2. Computer Mouse
3. Touch Screen
4. Optical Character Recognition (Bar Code)
5. Magnetic Ink Character recognition (MICR)
6. Pen-based Input
7. Digital Scanner
8. Audio Input
9. RFID (Radio Frequency Identification)
10. Touch Pad
2. Output Device
1. CRT (Cathode Ray Tube)
2. Printers
3. Audio Output
STORAGE CAPACITIES
Kilobyte (KB) – one thousand bytes
Megabytes (MB) – one million bytes
Gigabytes (GB) – one billion bytes
Terabytes (TB) – one trillion bytes
3. Petabytes (PB) – one quadrillion bytes
What is Software?
Definition: Various kinds of programs used to operate computers and
related devices Program instructions to the computer
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SOFTWARE
1) Program:
a) instructions to the computer
2) System Software:
a) manages computer’s resources so that application software can run
efficiently
i) e.g. multiprogramming, multiprocessing
3) Application Software:
a) Programs to serve end users
i) e.g. MS Acces
Application Software - performs information processing tasks for end users
System Software – manages and supports operations of computer systems
and networks
Software program: Series of statements or instructions to the computer
System software: Generalized programs, manages computer’s resources
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Application software: Programs written to perform functions specified by end
users
1) System Software
System Software is a set of one or more programs designed to control the
operation & extend the processing capability of a computer system.
A System Software are designed to make the computer easier to use.
Eg- Operating system
System software is a set of instructions that serves primarily as an
intermediary between Computer Hardware & Application Programs.
It is useful for loading the programs when the Computer is turn on.
Functions of System Software
1. Supports development of other application software
2. Supports execution of other application software
3. Monitors effective use of various Hardware
4. Communicate & Control the Peripheral Devices.
Hence System software makes the operation of a computer system more
effective & efficient.
It helps the hardware Components work together, & provides the support for
the development & execution of application software.
The programs included in a system software package are called System
Programs.
The programmers who prepare system software are referred to as a system
programmers.
2) Application Software
Application Software is a set of one or more programs designed to solve a
specific problem, or to do a specific task.
Eg- Examination result Processing Software, Railway/Airline Reservation
Software, Computer Games Software.
Similarly a program written by a scientist to solve a research problem is also
Application Software.
The Programs included in an application software package are called
application software.
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The Programmers who prepare application software are referred to as
application programmers.
SOFTWARE LICENSING
Purchasing the right to use specific software under the terms of the software
licensing agreement
Protects the vendor’s intellectual property right
Project running over budget
Projects running over time
Software was very inefficient
SOFT WARE DIFFICULT TO MAINTAIN
Quality
Efficiency
Flexibility
Security
Connectivity
Maintenance
Documentation
Hardware requirements
Software was of low quality
Software often did not meet requirements
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HARDWARE
3 - 5Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved.
3 - 8Copyright © 2006, The McGraw-Hill Companies, Inc. All rights reserved.
CPU ( Central Processing Unit)
ALU CU CPU+ =
•It is the brain of the computer system.
•It is responsible for controlling the operations of all the
other units of a computer system.
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KNOWLEDGE MANAGEMENT SYSTEM KNOWLEDGE – Concepts, experience, and insight that provide a
framework for creating, evaluating & using information
Knowledge Management – The set of processes developed in an
organization to create, gather, store, maintain, & distribute the firm’s
knowledge.
Knowledge Management Systems – Systems that support the creation,
capture, storage, and distribution of firm expertise & knowledge.
Knowledge Networks Systems – Online Directory for locating corporate
experts in well defined knowledge domains.
Types of Knowledge Work
Diagnosis and problem finding
Planning and decision making
Monitoring and control
Organization and scheduling
Authoring and presentations
Communication
Systemdevelopment
CAPTURE & CODIFY KNOWLEDGE ARTIFICIAL INTELLIGENCE (AI)
SYSTEMS:
AI: computer-based systems with abilities to learn language, accomplish
tasks, use perceptual machinery, and emulate human expertise &
decision making
• Intelligence – Stages of decision making, when individual collects
information to identify problems occurring in the organization
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• (AI)Artificial intelligence – The effort to develop Computer based
system that can behave like humans, with the ability to learn languages,
accomplish physical tasks, use a perceptual apparatus, & follow
different vendors at any speed.
KNOWLEDGE MANAGEMENT IN THE ORGANIZATIONKNOWLEDGE
MANAGEMENT:
Systematically & actively managing and leveraging stores of knowledge
in an organization
Office Automation Systems (OAS)
Knowledge Work Systems (KWS)
Group Collaboration Systems (GCS)
Artificial Intelligence Applications (AI)
INFORMATION WORK: Work consists primarily of creating, processing
information
DATA WORKERS: People who process & disseminate organization’s
paperwork
KNOWLEDGE WORKERS: People who design products or services or create
new knowledge for organization
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KNOWLEDGE MANAGEMENT & INFORMATION TECHNOLOGY
OFFICE AUTOMATION SYSTEMS
MANAGING DOCUMENTS:
WORD PROCESSING
DESKTOP PUBLISHING
DOCUMENT IMAGING
WEB PUBLISHING
WORK-FLOW MANAGERS
SCHEDULING:
ELECTRONIC CALENDARS
GROUPWARE
INTRANETS
COMMUNICATING:
VOICE MAIL
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DIGITAL ANSWERING SYSTEMS
GROUPWARE
MANAGING DATA:
DESKTOP DATABASES
SPREADSHEETS
USER-FRIENDLY INTERFACES TO MAINFRAME DATABASES
DOCUMENT IMAGING SYSTEMS: Systems convert documents, images
into digital form (e.g.: optical character recognition; microfiche)
JUKEBOX: Storage & retrieving device for CD-ROMs & other optical
disks
INDEX SERVER: Imaging system to store / retrieve document
CREATE KNOWLEDGE WORK SYSTEMS:
INFORMATION SYSTEMS THAT AID KNOWLEDGE WORKERS TO CREATE,
INTEGRATE NEW KNOWLEDGE IN ORGANIZATION
KEEP ORGANIZATION UP-TO-DATE IN KNOWLEDGE: Technology;
science; thought; the arts
INTERNAL CONSULTANTS IN THEIR AREAS
CHANGE AGENTS: Evaluating; initiating; promoting change projects
CAD/CAM (Computer Aided Design/Computer Aided
Manufacturing): Provides precise control over industrial design,
manufacturing
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VIRTUAL REALITY: Interactive software creates photorealistic
simulations of real world objects (Virtual Reality Modeling
Language: VRML)
INVESTMENT WORKSTATIONS: High-end PCs used in finance to
analyze trading situations, facilitate portfolio management
AI FAMILY
BUSINESS INTERESTS IN Artificial Intelligence
• PRESERVE EXPERTISE
• CREATE KNOWLEDGE BASE
• MECHANISM NOT SUBJECT TO FEELINGS, FATIGUE, WORRY, CRISIS
• ELIMINATE ROUTINE / UNSATISFYING JOBS
• ENHANCE KNOWLEDGE BASE
EXPERT SYSTEMS
KNOWLEDGE - INTENSIVE
CAPTURES HUMAN EXPERTISE
IN LIMITED DOMAINS
OF KNOWLEDGE
KNOWLEDGE BASE: Model of Human Knowledge
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RULE - BASED EXPERT SYSTEM : AI system based on IF - THEN
statements (Bifurcation); Rule Base: Collection of IF - THEN
knowledge
KNOWLEDGE FRAMES: Knowledge organizes in chunks based on
shared relationships
AI SHELL: Programming environment of expert system
INFERENCE ENGINE: Search through rule base
FORWARD CHAINING: Uses input; searches rules for answer
BACKWARD CHAINING: Begins with hypothesis, seeks
information until hypothesis accepted or rejected
LIMITATIONS:
Often reduced to problems of classification
Can be large, lengthy, expensive
Maintaining knowledge base critical
Many managers unwilling to trust such systems
AI USES DATABASE OF CASES:
USER DESCRIBES PROBLEM
SYSTEM SEARCHES DATABASE FOR SIMILAR CASES
SYSTEM ASKS MORE QUESTIONS
FINDS CLOSEST FIT
MODIFIES IF REQUIRED
OTHER AI TECHNIQUES
NEURAL NETWORKS: Software attempts to emulate brain processes
FUZZY LOGIC: Tolerates ambiguity using nonspecific MEMBERSHIP
FUNCTIONS
GENETIC ALGORITHMS: Use models of organisms to promote evolution
of solution
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HYBRID AI SYSTEMS: Combinations
INTELLIGENT AGENT
PROGRAM WITH BUILT-IN, LEARNED KNOWLEDGE BASE TO DO SPECIFIC,
REPETITIVE, PREDICTABLE TASKS FOR:
INDIVIDUAL
BUSINESS PROCESS
SOFTWARE APPLICATION
Stages of Decision Making
Intelligence: Collect information, identify problem
Design: Conceive alternative solution to a problem
Choice: Select among the alternative solutions
Implementation: Put decision into effect and provide report on the
progress of solution
Models of Decision Making
Rational model: people engage in consistent, rational decision making.
Individuals rank all alternatives and select the one that most
contributes to their goal
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Critics point out that individuals can’t rank all possible alternatives;
tend to select first viable alternative
Built-in biases, frame of reference, distort decision making
Cognitive style: Describes underlying personality dispositions toward
decision making
Systematic decision makers
Business Value of MIS/IT/IS
Business Prospective of IS
Organization: The key element of an organization are
its people, structure and operating procedures, politics
and culture.
Management: Managers perceive business
challenges in the environment; they set organizational
strategy for responding, and allocate the human and
financial resources to achieve the strategy and
coordinate the work.
Technology: Information technology is one of the tolls
for managers for coping with change. It is the glue that
holds the organization together. CBIS utilize computer
hardware, software, storage, and telecommunication
technologies.
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Costs and Benefits of Information Systems Costs:
Hardware, telecommunications, software, services,
personnel
Tangible benefits (cost savings):
Increased productivity, lower operational costs, reduced
workforce, etc.
Intangible benefits:
Improved asset utilization, improved resource control,
improved organizational planning, etc.
Results of Poorly Managed Systems Projects
Costs that vastly exceed budgets
Unexpected time slippage
Technical shortfall; poor performance
Failure to obtain anticipated benefits
Case example: Capital budgeting
The payback method
Accounting rate of return on investment (ROI)
Net present value
Internal rate of return (IRR)
Results of the capital budgeting analysis
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Management Control System for Projects
SYSTEM PORTFOLIO
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Extra’s for Ecommerce / MIS
Firewalls:-
Firewalls can provide:
o Secure gateway to the Internet for
internal clients
o Packet filtering
o Circuit-level filtering
o Application filtering
o Auditing
Firewalls cannot provide:
o Protection against application-level attacks over HTTP or HTTPS
Auditing:-
Auditing actions include tracking:
o Resource access and usage
o Successful and unsuccessful logon attempts
o Application failures
Auditing benefits include:
o Help for administrators to detect intrusions and suspicious
activities
o Traceability for legal, non-repudiation disputes
o Diagnosis of security breaches
Payment through Smart Cards
Smart cards generally have a processor and memory.
They are capable of storing cardholder information, their bank
account details, their private and public encryption keys, etc.
Some of the cards are capable of generating passwords, digital
signatures etc.
Some cards permit bi-directional transfer of money, and can record a
few latest.
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ELECTRONIC CASH :-
A parallel development to the conventional money is E-Cash.
E-Cash is issued by some organization which is recognized by all the
merchants and consumers, and approved by the government. This may
be called E-Mint.
The consumer purchases e-cash of some value from e-mint.
The E-cash certificates will have unique identification numbers that
are assigned by the consumer and recorded by the E-Mint.
E-Cash can be obtained in different denominations like Rs. 1000, 500,
100, 50, 50, 20, 10, 5, 2, 1, 0.5, 0.25, 0.10, 0.05, and 0.01.
E-cash is nothing but a series of numbers, each of which has some
assigned value in a chosen currency and authenticated by the bank
through some mechanism like E-signature of the bank.
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IMPORTANT GLOSSARY – MANAGEMENT INFORMATION SYSTEM
Automation Using the computer to speed up the performance of existing
task.
Benchmarking Setting strict standards for products, services, or activities
and measuring organizational performance against those standards.
Bus network Network topology linking a number of computers by a single
circuit with all messages broadcast to the entire network.
Business process reengineering The radical redesign of business
processes, combining steps to cut waste and eliminating repetitive, paper-
intensive tasks in order to improve cost, quality, and service, and to maximize
the benefits of information technology.
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Client/Server computing A model for computing that splits processing
between clients and servers on a network, assigning functions to the machine
most able to perform the function.
Computer Physical device that takes data as an input, transforms the data by
executing stored instructions, and outputs information to a number of devices.
Computer crime The commission of illegal acts through the use of a
computer or against a computer system.
Critical success factors (CSFs) A small number of easily identifiable
operational goals shaped by the industry, the firm, the manager, and the
broader environment that are believed to assure the success of an
organization. Used to determine the information requirements of an
organization.
Customer relationship management (CRM) Business and technology
discipline that uses information systems to coordinate all of the business
processes surrounding the firm’s interactions with its customers in sales,
marketing, and service.
Customization The modification of a software package to meet an
organization’s unique requirements without destroying the package
software’s integrity.
Data streams of raw facts representing events occurring in organizations or
the physical environment before they have been organized and arranged into
a form that people can understand and use.
Data warehouse A database, with reporting and query tools, that stores
current and historical data extracted from various operational systems and
consolidated for management reporting and analysis.
Database management system (DBMS) Special software to create and
maintain a database and enable individual business applications to extract the
data they need without having to create separate files or data definitions in
their computer programs.
DBMS (Data base management system) A computer based information
system that combines models & data to provide support for decision making &
problem solving.
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Decision-support system (DSS) Information system at the organization’s
management level that combine data and sophisticated analytical models or
data analysis tools to support semi structured and unstructured decision
making.
Digital cash Currency that is represented in electronic form that moves
outside the normal network of money.
Digital firm Organization where nearly all significant business processes
and relationships with customers, suppliers, and employees are digitally
enabled, and key corporate assets are managed through digital means.
Digital wallet Software that stores credit card, electronic cash, owner
identification, and address information and provides this data automatically
during electronic commerce purchase transactions.
E-learning Instruction delivered through purely digital technology, such as
CD-ROMs, the internet, or private networks.
Electronic business (E-business) The use of the internet and digital
technology to execute all the business processes in the enterprise. Includes e-
commerce as well as processes for the internal management of the firm and
for coordination with suppliers and other business partners.
Electronic commerce The process of buying and selling goods and services
electronically involving transactions using the internet, networks, and other
digital technologies.
(Ecommerce) The use of the internet- internet & web for business
transaction more formally, B 2 C, C 2 C, B 2 B, M 2 M & P 2 E. ( Pear to Pear), G
2 B Government to Business.
Electronic data interchange (EDI) The direct computer-to-computer
exchange between two organizations of standard business transactions, such
as orders, shipment instructions, or payments.
Electronic payment system The use of digital technologies, such as credit
cards, smart cards and Internet-based payment systems, to pay for products
and services electronically.
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E-mail The computer-to-computer exchange of message.
Employee relationship management (ERM) Software dealing with
employee issues that are closely related to CRM, such as setting objectives,
employee performance management, performance-based compensation, and
employee training.
Encryption The coding and scrambling of messages to prevent their being
read or accessed without authorization.
Enterprise systems Integrated enterprise-wide information systems that
coordinate key internal processes of the firm.
ERP (Enterprise resources planning) An integrated process of planning &
managing all major business process with in a single client /server
architecture in real time including contacts with partners & customers.
Executive support systems (ESS) Information system at the organization’s
strategic level designed to address unstructured decision making through
advanced graphics and communications.
Extranet Private intranet that is accessible to authorized outsiders.
Finance and accounting information systems Systems keep track of the
firm’s financial assets and fund flows.
Firewall Hardware and software placed between an organization’s internal
network and an external network to prevent outsiders from invading private
networks.
Hacker A person who gains unauthorized access to a computer network for
profit, criminal mischief, or personal pleasure.
Human resources information systems Systems that maintain employee
records, track employee skills, job performance and training, and support
planning for employee compensation and career development.
Information Data that have been shaped into a form that is meaningful and
useful to human beings.
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Information system Interrelated components working together to collect,
process, store, and disseminate information to support decision making,
coordination, control, analysis, and visualization in an organization.
Information technology (IT) All the hardware and software technologies a
firm needs to achieve its business objectives.
Information technology (IT) infrastructure Computer hardware, software,
data, storage technology, and networks providing a portfolio of shared IT
resources for the organization.
Internet Global network of networks using universal standards to connect
millions of different networks.
Intranet An internal network based on Internet and World Wide Web
technology and standards.
Knowledge management systems Systems that support the creation,
capture, storage and dissemination of firm expertise and knowledge.
Local area network (LAN) A telecommunications network that requires its
own dedicated channels and that encompasses a limited distance, usually one
building or several buildings in close proximity.
MIS audit Identifies all the controls that govern individual information
systems and assesses their effectiveness.
Multi tiered (N-tier) client/server architecture Client/server network
which the work of the entire network is balanced over several different levels
of servers.
Nanotechnology Technology that builds structures and processes based on
the manipulation of individual atoms and molecules.
Network The linking of two or more computers to share data or resources,
such as a printer.
Peer-to-peer Network architecture that gives equal power to all computers
on the network; used primarily in small networks.
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Procurement Sourcing goods, and materials, negotiate with suppliers,
paying for goods, and making delivery arrangements.
Radio-frequency identification (RFID) Technology using tiny tags with
embedded microchips containing data about an item and its location to
transmit short-distance radio signals to special RFID readers that then pass
the data on to a computer for processing.
Relational DBMS A type of logical database model that treats data as if they
were stored in two-dimensional tables. It can relate data stored in one table to
data in another as long as the two tables share a common data element.
Search engine A tool for locating specific sites or information on the
Internet.
Security Policies, procedures, and technical measures used to prevent
unauthorized access, alteration, theft, or physical damage to information
systems.
Security policy Statements ranking information risks, identifying acceptable
security goals, and identifying the problem has a clear-cut answer provided by
an accepted procedure.
Server Computer specifically optimized to provide software and other
resources to other computers over a network.
Structured Query Language (SQL) The standards data manipulation
language for relational database management systems.
Supply chain Network of organizations and business processes for
procuring materials, transforming raw materials into intermediate and
finished products, and distributing the finished products to customers.
Supply chain management Integration of supplier, distributor, and
customer logistics requirements into one cohesive process.
Supply chain management systems Information systems that automate the
flow of information between a firm and its suppliers in order to optimize the
planning, sourcing, manufacturing, and delivery of products and services.
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(System Development life cycle) its study of requirement , collection ,
analysis , design, implementation , testing & operation of development in
information System.
Transaction processing systems (TPS) Computerized systems that
perform and record the daily routine transactions necessary to conduct the
business; they serve the organization’s operational level.
Uniform resource locator (URL) The address of a specific resource on the
Internet.
Value-Added Network (VAN) Private, multipath, data-only, third-party-
managed network that multiple organizations use on a subscription basis.
Web site All of the World Wide Web pages maintained by an organization or
an individual.
Wide Area Network (WAN) Telecommunication network that spans a large
geographical distance. May consist of a variety of cable, satellite, and
microwave technologies.
Windows Microsoft family of operating systems for both network servers
and client computers. The most recent version is Windows Vista.
World Wide Web A system with universally accepted standards for storing,
retrieving, formatting, and displaying information in a networked
environment.
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