MIS Essentials

Dr Sharad L. JoshiProfessor

Vishwakarma Institute of Management, Pune

Management Information Systems

What is MIS? Study of Information Systems focusing on their use

in Business and Management. Information is defined as Data converted into

a form which is meaningful and useful for the end-user.

MIS combines the theoretical work of computer science, management science and operations research with a practical orientation toward developing system solutions to real life problems and managing information technology resources.

What is an Information System?

An organized combination of… People Hardware and software Communication networks Data resources Policies and procedures

This system… Stores, retrieves, transforms, and disseminates

information in an organization

1-4

Types of systems Transaction Processing Systems (Dealing with day-to-

day events and actions - Financial Transactions, Student Attendance, Phonecalls, Train Reservation)

Office Automation Systems (Word, Excel) Knowledge Work Systems(Tally, PowerPoint, CAD) Management Info. Systems (Based on TPS – Student

Absenteeism Report, Product-wise Sales, Slow moving items report, Customer Outstandings Report )

Decision Support Systems (Production Scheduling, Data Mining supported analytics)

Executive Support Systems (Dashboards)

What Should Business Professionals Know about Information Technology?

1-6

Fundamental Roles of Information Systems in Business

1-7

Range of Information Systems

1-8

Operations Support Systems

What do they do? Efficiently process business transactions Control industrial processes Support communications and

collaboration Update corporate databases

1-9

Types of Operations Support Systems

Transaction Processing Systems Record and process business transactions Examples: sales processing, inventory systems,

accounting systems Process Control Systems

Monitor and control physical processes Example: using sensors to monitor chemical processes in

a petroleum refinery Enterprise Collaboration Systems

Enhance team and workgroup communication Examples: email, video conferencing

1-10

Management Support Systems

What do they do? Provide information and support for

effective decision making by managers Management information systems Decision support systems Executive information systems

1-11

Types of Management Support Systems

Management Information Systems (MIS) Reports and displays Example: daily sales analysis reports

Decision Support Systems (DSS) Interactive and ad hoc support Example: a what-if analysis to determine where to

spend advertising budget

Executive Information Systems (EIS) Critical information for executives and managers Example: easy access to actions of competitors

1-12

Other Information Systems

Strategic Information Systems Help get a strategic advantage over competitor Examples: shipment tracking, e-commerce

Web systems

Functional Business Systems Focus on operational and managerial

applications of basic business functions Examples: accounting, finance, or marketing

1-13

M.I.S. Model – applicable for all types of Systems

Information

Herbert Simon Model

of Decision Making

Data

Monitoring/Feedback

Information is Data converted into a form which is meaningful and useful for the end-user.

Processing Logic

Computers

Human Beings

Database

Intelligence Design Choice

Decision Implementation

Performance

Salient Features of Modern MIS Use of Web based GUI’s for acquiring and displaying

data Increasingly faster SQL processors and search

engines to access / explore data Use of graphics and animation in GUI’s Use of multi-layer architecture to serve large number

of users Component based software engineering Wide range of software products / packages Use of advanced mining/ analytical tools

Contemporary Approaches to MIS1. Technical Approach – Mathematical and Normative, emphasizing Computer Science, Management Science and Operations Research.2. Behavioral Approach – Based more on psychology, sociology, political science and organizational behavior.3. Socio-Technical Approach – Combines Technical as well as behavioral perspectives so as to optimize performance of Information Systems. This approach has wider acceptance among practitioners.

Range of Careers in Information Technology

1-17

Technology is no longer an afterthought in business strategy, but the cause and driver

IT can change the way businesses compete

A strategic information system is any information system that uses IT to help an organization…

Gain a competitive advantage

Reduce a competitive disadvantage

Or meet other strategic enterprise objectives

Strategic IT

2-18

INFORMATION AS A STRATEGIC RESOURCE

Information Technology, as a strategic resource, will help in gaining competitive advantage in any of the following ways. Developing new products and services ( ATM’s in Banks) Developing systems to focus on market niches ( e Learning based

language teaching) Linking with Customers and Suppliers ( thru Extranet) Inter–organizational Systems (Using Collaborative tools) Systems to lower costs (Wastage Control Systems) Leveraging Technology to add value in a value chain (Any of

Inbound Logistics, Operations, Outbound Logistics, Marketing, Sales and Service)

Michael Porter on Competitive Advantage Sustainable competitive advantage is achieved

through either or combination of Cost Leadership, Differentiation and Focus.

Specific activities through which a company can create competitive advantage are Inbound Logistics, Operations, Outbound Logistics, Marketing & Sales and Service

Information , used strategically, should assist in achieving superior performance in any of the areas stated above, creating competitive advantage.

How to gain competitive advantage?

I.T. changes the context, creating new opportunities and new threats. Competitive advantage, depends on how well, and how effectively an organization adapts to forces of change.

Explore possibility of re-engineering existing business using IT (like banks and newspapers)

Use information to locate niches, new market segments - geographical, demographical, social etc – use Data Mining

Change structure – e.g. Decentralized to Centralized ( e.g. BOLT in case of shares) or vice versa

Use IT to add value – Better service, less mistakes and earn better prices

Increase efficiency, reduce costs, compete on lower price Enter new markets otherwise inaccessible ( thru eServices) e.g. Call

Center Standardize, Improve control, expand business the way MNC’s do

I.T. and organizational change I.T. changes the organizations, by reducing levels in

hierarchy, restructuring flow of work, changing products/ processes, making decisions data-centric (rather than judgmental) and making knowledge more important than seniority.

However, as observed by Levitt, computers alone cannot change the organization. For that to happen, People (thru training) , Tasks (i.e. what to do -withdrawal of money), Processes (how to do - using ATM Card and Password) and Technology (CBS, ATM) have all to change simultaneously.

INFORMATION, MANAGEMENT AND DECISION MAKING

MODELS OF DECISION MAKING

Rational (Decision based on reason and logic) Bureaucratic ( Decision made in a defined framework

of rules and regulations) Political (Decision based on relative equations of

power of leading players) Default (Decision occurring by chance and random

interactions between interested parties; there is no clear direction)

Examples of decisions under different model(s) The cases of known criminals drag on in law courts

(since legal formalities have to be followed) -Bureaucratic.

Finance Ministry announces deficit this year will be restricted to 4.8% - Rational

Minimum number of gas cylinders have been raised from 6 to 9 under public pressure - Political

Decision on independent Telangana state is indefinitely delayed. - Default

Bureaucratic Model Bureaucracy is system of administration distinguished

by (1) clear hierarchy of authority (2) rigid division of labour, (3) written and inflexible rules, regulation and procedures and (4) impersonal relationships

Bureaucratic Model of decision making is based on decisions made in the framework of bureaucracy.

Classical (Rational) Model of Decision Making

Classical or Economic Model is a Normative Model (i.e. one stating the norm), based on the following Assumptions.

All alternatives for decision making are known.

The decision maker seeks to maximize profit or utility, where profit motive is not relevant.

The decision maker is completely sensitive to difference between utilities, where relevant.

Administrative Model of Decision Making (Can be also called satisficing or principle of bounded rationality)

Administrative Model is a Descriptive Model based on the assumptions, that the Decision Maker -

Does not know all alternatives for decision making. Makes a limited search to discover a few satisfactory

alternatives. Makes a Decision which satisfies his or her

aspirational level. This model is also called satisficing – a combination of satisfy and suffice or satisfy and sacrifice.

Herbert Simon Model of Decision Making Intelligence phase involves scanning social, competitive and

organizational environment and understanding/ identifying the problem

Design phase involves generating alternatives to solve the problem and evaluating each of the alternatives qualitatively and quantitatively.

Choice phase involves ranking the alternatives based on a variety of criteria and choosing the most suitable among them.

Implementation involves putting the decision into action, feedback on its outcomes and necessary corrective action

Consider purchase/ leasing of a house as a decision to understand the phases stated.

Role of Information Systems in phases of Herbert Simon Model

Intelligence ( Obtaining Information, identifying problems, based on exception reporting)

Design ( Locating alternatives, Analyzing them using DSS and analytical tools)

Choice ( None) Implementation ( Disseminating information

to facilitate implementation)

MIS and Herbert Simon Model for Recovery of Loans (A case study)

Recovery of Loans has been a problem which Apex Bank is required to address. The bank’s portfolio of Retail Loans in Western Zone is made up of about 70000 accounts.

The bank has immediate plans to focus on recovery of those Auto Loans which have an outstanding figure of > 5 lakhs each, and which are disbursed from Mumbai, Pune, Nagpur and Aurangabad.

After obtaining the list, the Bank would discuss best method to recover the loans with its legal department and work out a method for loan recovery. This will be implemented thru 30 different branches over a period of 6 months. If successful, the bank has plans to extend the method to other categories of loans as well.

Model the situation stated thru the MIS Model. Write a sample entry for an outstanding loan in Excel Format. Show a sample report for Aurangabad.

M.I.S. Model for Decision Implementation.

Information

Herbert Simon Model

of Decision Making

Data

Monitoring/Feedback

The three bullet points in the case represent, respectively, Data, Information and Decision Making.

Processing Logic

Computers

Human Beings

Database

Intelligence Design Choice

Decision Implementation

Performance

MIS Report Formats Apex Bank

Excel Format for Outstanding Loan

Format for MIS Report, Aurangabad Area

AcctNo

Name Loan Type

Area Branch

Amount DueDate

67543 SK Developers Ind Nag 0317 5657000 23/07/12

12125 Suresh Shinde Auto Aur 0621 550000 11/12/12

Area Aurangabad Type Auto

AcctNo Name Amount DueDate Branch

34521 SK Agarwal 750000 12/11/12 0619

12125 Suresh Shinde 550000 11/12/12 0621

Attributes of Information Timely

Availability Currency

(Being Current)

Proper Frequency

Relevance Completeness

Consistency Accuracy Reliability Verifiability Clarity Comprehensibilty Brevity Cost

Effectiveness

Types of Information Strategic Level – Unstructured, External, Used for

Long Term Planning (Emerging Technologies, Competition, Socio Political Changes)

Tactical Level – Semi Structured, Largely Internal, Used for Medium/ Short Term Planning (Customer Perception, Competitors’ Actions, Pricing)

Operational Level – Structured, Internal, used for Short Term Planning (Specific Activity, Specific Products, Small Group Coordination)

Information can also be typed (classified) as planning information and control information.

Exercises in developing Management Information Systems from basic data source

Student Mark sheetInstitute 0317 Vishwakarma Institute of

Management

PRN 1517202 Name Akhilesh Kumar

Code Description Int. Ext. Total

101 O.B and PPM 18 38 56

102 Management Accounting 19 21 40

103 Managerial Economics 23 45 68

104 S.Q.M. 19 37 56

105 Legal Aspects of Business 21 35 56

106 Basics of Marketing 22 40 62

107 Information Technology 43 43

108 Managerial Communication 42 42

Total 423

Pass/Fail/ATKT ATKT

Reports (Information)emerging from student mark sheet (Data)

1. Institute wise pass-fail, total numbers and percentage2. Institute wise List of Toppers, Name, Marks, Percentage3. Institute wise subject wise pass-fail, numbers and percentage4. Subject wise Institute wise pass-fail, numbers and percentage; also overall average. Highlight Institutes below the average.5. Subject wise Institute wise pass-fail, numbers and percentage for external marks only6. Institute wise First, Second, Pass Class Numbers and %7. Comparison of University’s percentages with percentages in items 1,3,5 and 6 above.

Invoice Format for Drug WholesalerDeepak Agency, Wholesalers

Date & Time

15/12/2012 17:34:44 Invoice No 5687

Customer Name

Rahul Medicals

Address 77, Chintamani Nagar, Bibwewadi,Pune 411037

Sr No Description Qty Rate Value

1 Crocin 50 10.50 525.00

2 Novamox 20 54.00 1080.00

3 Colgate, 200 gms 10 38.00 380.00

4 Good Night Mats 10 53.00 530.00

5

Total 2515.00

Data Formats for Excel Excel Format for Invoice

Excel Format for Product

Inv No Date Time CustNo

Area Tot Value

5687 15/12/2013 17:34:44 R035 411037 2515.00

Inv No Sr No Prod Code Qty Rate Value

5687 1 C005 50 10.50 525.00

5687 2 N002 20 54.00 1080.00

5687 3 C008 10 38.00 380.00

5687 4 G032 10 53.00 530.00

MIS Reports emerging from Invoice1. Product wise sale for a given period (Quantity, Value)2. Customer wise sale for a given period3. Top 10/20 Customers4. Top 10/20 Products5. Customer wise Product wise sale for major customers, for a

given period 6. Selling pattern Date/ Daywise7. Area wise sale (by Pin Code)8. Area wise top products9. Area wise top customers10. Sale by time slots during the day in a given period

RDBMS example related to Railway Reservation Form

Form No : 3415678 Date of the Journey: 18/03/2012

Train No : 2567 Train Name: Jhelum Express

From : Pune To: Agra

Seats / Berths : Berths No: 3 Class: 2AC

Sr Passenger Sex Age Compt Seat/No Name No Berth No

1 B R Rao M 57 S2 342 Surekha Rao F 54 S2 353 Sunil Rao M 30 S2 36

Reports resulting from Data contained in Reservation Form

No of passengers travelling on various trains Region wise Month wise Top 10 destinations in India Age Distribution of passengers Percentage of Senior Citizens No of trains reaching given destinations Trains having low occupancy

INFORMATION TECHNOLOGY

IT Capabilities and their Organizational Impact

Capability Organizational ImpactTransactional Organization can handle I.T. applications involving transaction

processing – Banking, Insurance, Share Trading

Geographical Organization can operate over a wider geographical area, multi state, multi nation

Automational Organization can undertake applications involving automation on shop-floor, in office. It can handle complexity better.

Analytical Organization can draw analytical inferences e.g. Data Mining

Informational Organization can effectively implement MIS; benefit therefrom

Operational Organization can make efficient use of computer technology, accomplish more tasks than others

Knowledge Mgt Organization can convert information into knowledge and use it

Tracking Organization may have better control over flow of information,more secure operations

Connectivity Organization can connect end users efficiently, hence can offer good CRM, use Intranet and Extranet effectively

Telecommunications-Based Services

6-46

Telecommunications Network Components-I

Terminals Any input/output device that uses networks

to transmit or receive data

Telecommunications processors Devices that support data transmission, reception

Telecommunications channels Media over which data are transmitted, received

Computers All sizes and types

6-47

Telecommunications Network Components-II

Telecommunications control software Controls telecommunications activities

Manages the functions of telecommunications networks

Includes network management programs of all kinds,

Telecommunications monitors (mainframes)

Network operating systems (network servers)

Web browsers (microcomputers)

6-48

Network Components

6-49

Types of Communications Networks

Primary types of communications networks Wide Area

Local Area

Virtual Private

Client/Server

Peer-to-peer

6-50

Network Topologies

Topology The structure of a network

Star Network Ties end user computers to a central computer

Ring Network Ties local computer processors together in a

ring on a relatively equal basis

Bus Network Local processors share the same

communications channel6-51

Topologies Diagram

6-52

Star Topology

Advantages More secure Failure of one cable does not affect the

network Easy to add nodes Disadvantages Requires a central computer Requires more cable, expensive

Ring Toplogy

Advantages Data flows in one direction, hence enables

high speed No dependence on a Central Computer Disadvantages Failure of one node affects the other

connected nodes Difficult to add nodes

Bus Topology

Advantages Easy to add and remove nodes Requires shorter cable, less expensive Disadvantages Failure in central line affects the entire network All data flows thru the same route; higher data

volumes slows down network.Bus and Ring topologies work with a ‘token’ – the sending node sends the token, receiving node recognizes and accepts.

What is I.T.E.S. ?

Information Technology Enabled Service (ITES) is defined as business processes and services offered from a remote location using information technology through telecommunication network.

Business Process Outsourcing and Call Centers are two commonly known examples.

ITES include the following.

Back office operations Call Centers Content Development / Animation Data Processing Engineering and Design Geographic Information System Services Human Resource Services Insurance Claim Processing

ITES also includes the following

Legal Databases Medical Transcription Payroll Remote Maintenance Revenue Accounting Support Centers Web site services

Geographical Information Systems Geographic Information System (GIS) is a system designed to

capture, store, manipulate, analyze, manage, and present all types of geographical data.

GIS is the merging of cartography, statistical analysis, and database technology.

GIS involves digitization of elements (points, lines and polygons – shapes and areas) that form geographical i.e. spatial, images. These form geographical database which is manipulated using statistical and cartographic techniques.

Some of the important uses of GIS are Information Analysis, Automobile Navigation, Location of units of operation (office, restaurant, hospital etc), Map Making (Cartography), Urban and Regional panning, Transportation and Logistics.

Some uses of GIS1.Emergency Services – Combating Fire and Floods2. Environmental modeling and monitoring (e.g. monitoring forest cover)3. Business – Site Location, Delivery Systems (e.g. planning logistics)4. Industry – Transportation, Communication, Mining, Pipelines, Healthcare5. Government – Local, State, National level planning, Military Operations

Example of GIS, indicating influence of political parties in Pune Municipal Corporation Elections. The geographical objects and the data is linked thru computer software. The geographical form of presentation provides new and different insights

DATABASE MANAGEMENT SYSTEMS

What are Relational Data Base Management Systems (RDBMS)?

RDBMS is a system of inter-related tables, which are used to store the data. The tables are connected to each other thru common fields. The data stored in the tables is accessed thru SQL (Structured Query Language).

DML (Data Manipulation Language), Data Definition Language (DDL) and Control Statements are components of SQL.

A RDBMS a table, titled Train Table along with sample entries and a SQL query follows. Train Table is ‘related’ to Reservation Form Table, which also contains Train No.

Despite simple table design, RDBMS is capable of handling millions of records, fast and accurately.

Invoice Format for Drug WholesalerDeepak Agency, Wholesalers

Date & Time

15/12/2012 17:34:44 Invoice No 5687

Customer Name

Rahul Medicals

Address 77, Chintamani Nagar, Bibwewadi,Pune 411037

Sr No Description Qty Rate Value

1 Crocin 50 10.50 525.00

2 Novamox 20 54.00 1080.00

3 Colgate, 200 gms 10 38.00 380.00

4 Good Night Mats 10 53.00 530.00

5

Total 2515.00

INVOICE_HEADERINVNO Number 5

INVDATE Date

INVTIME Number 4CUSTNO Char 4

AREA Number 6TOTAMT Number 8,2

INVOICE_DETAIL

INVNO Number 5SRNO Number 2PRODCODE Char 4QTY Number 3RATE Number 8,2VALUE Number 8,2

CUSTMASTCUSTNO Char 4CUSTNAME Char 30ADDRESS1 Char 25ADDRESS2 Char 25ADDRESS3 Char 25CITY Char 20PINCODE Number 6

PRODMAST

PRODCODE Char 4PRODNAME Char 20

RDBMS TABLE FORMATS FOR INVOICE

Using RDBMS for obtaining information from Data, SQL Example - 1

Purpose – Get customer list from Chichwad area Query

select custno, custname, pincodefrom custmastwhere pincode = ‘411019’

Expected Report custno custname pincodeB024 Baba Medicals 411019D014 Deven Drug House 411019R012 Rahul Medico 411019

Using RDBMS for obtaining information from Data, SQL Example - 2

Purpose – Find total sale in November 2012 Query

select sum (totamt)from invoice_headerwhere invdate between ’1/11/12’ and

’1/30/12’ (i.e. inclusive) Result

178956.78

Using RDBMS for obtaining information from Data, SQL Example - 3

Purpose – Get Product-wise sale for all invoices

Queryselect prodcode, prodname, sum(qty), sum(value)from invoice_detail, prodmastwhere invoice_detail.prodcode = prodmast.prodcode

group by prodcodeorder by prodcode;

(Answer in the following slide)

Example 3 - Expected ReportProdcode Prodname Qty Value

B005 Broncodil 97 3890C023 Crocin 5135 23675N005 Novamox 235 12675

Total 3567450

RDBMS example related to Railway Reservation Form

Form No : 3415678 Date of the Journey: 18/03/2012

Train No : 2567 Train Name: Jhelum Express

From : Pune To: Agra

Seats / Berths : Berths No: 3 Class: 2AC

Sr Passenger Sex Age Compt Seat/No Name No Berth No

1 B R Rao M 57 S2 342 Surekha Rao F 54 S2 353 Sunil Rao M 30 S2 36

DBMS Table Formats for Reservation System

Train_Table

Trainno Number 4

TrainName Char 30

Fromstn Char 25

Tostn Char 25

Starttime Number 4

Passenger_TableFormno Number 9

Srno Number 1

Name Char 30

Sex Char 1

Age Number 3

Compt Char 5

SBNo Number 3

Form_Table

Formno Number 9

Date Date

Trainno Number 4

Fromstn Char 20

Tostn Char 20

Class Char 5

S_B Char 1

No_Passenger Number 1

Train_Table Sample Entries

TrainNo TrainName Fromstn Tostn StartTime

2567Jhelum Express Pune Delhi 1730

2568Krishna Express Hyderabad Bhubaneshwar 1940

2569Udyan Express Bangalore Chennai 730

3456Deccan Queen Pune Mumbai 715

Obtaining Information from RDBMS Tables - SQL Example -1

Purpose – List trains between Pune and Delhi Query

select TrainNo, TrainName, Starttimefrom Train_Tablewhere Fromstn = ‘Pune’ and Tostn = ‘Delhi’

ResultTrainNo TrainName StartTime2567 Jhelum Express 1730

Obtaining Information from RDBMS Tables - SQL Example -2

Purpose – Get passenger list for train 2423, compt S7 and date = 23rd March 2012

Queryselect SBNo, Name, Sex, Age from Form_Table, Passenger_Tablewhere Form_Table.FormNo =

Passenger_Table.FormNo and TrainNo = 2423 and Date = ’03/23/2012’ and Compt = ‘S7’

Data Warehouse

Data Warehouse stores static data that has been extracted from other databases in an organization DW is treated as central source of data that has been

cleaned, transformed, and cataloged

Data is used for data mining, analytical processing, analysis, research, decision support

Data warehouses may be divided into data marts Data Marts are subsets of data that focus on specific

aspects of a company such as a department – e.g. Marketing, or business process e.g. Quality Management

5-75

ETL-Extract Transform Load ODS – Operational Data Store Staging Area – Intermediate Area Data Vault – Relevant Data from multiple sources ; cleaning is done in Data Marts

Use of multidimensional structure for Storage and Analysis

Variation of relational model

Data elements are viewed as being in cubes

Popular for analytical databases that support Online Analytical Processing (OLAP)

5-77

Multidimensional Model

5-78

Data Mining (currently called Business Analytics / Business Intelligence)

Data in data warehouses are analyzed to reveal hidden patterns and trends Market-basket analysis to identify new

product bundles Find root cause of quality or manufacturing

problems Prevent customer attrition Acquire new customers Cross-sell to existing customers Profile customers with more accuracy

5-79

The Business Analytics (BA) Field: An Overview

Comparison between Data Warehousing, Data Mining and Databases

Data Warehouses are similar to Databases in that both maintain and access tables – which may contain diverse data like numbers, text, pictures, audio clips, video clips etc.

Data Warehouse has better analysis capabilities (OLAP) while Database has better transaction processing capabilities (OLTP). DB is ‘write-optimized’ ; DW is ‘read-optimized’ . DW is better for analytics. Note that DW and DM handle data in GB and TB.

Data Mining is better designed for quantitative and statistical analysis, whereas DW creates and uses simpler analyses, relying on qualitative interpretation.

All these DB, DW and DM have 5 capabilities – Store, Maintain, Access, Analyze and Present the data.

Systems Analysis and Design

System Development Life Cycle – 5 Phases

1. System Investigation2. System Analysis3. System Design4. System Implementation5. System MaintenanceEach of the phase is explained in slides that follow.

System Investigation (Outcome: Feasibility Study)

Determine how to address business opportunities and priorities

Conduct a feasibility study to determine whether a new or improved business system is a feasible solution

Develop a project management plan and obtain management approval

System Analysis (Outcome : Functional Requirements)

Analyze the information needs of relevant stakeholders (employees, customers, suppliers etc)

Develop the functional requirements of a system that can meet business priorities and needs of relevant stakeholders

Develop logical model of current system (e.g. a flow diagram)

System Design (Outcome : System Specifications)

Develop specifications for hardware, software, people, network and data resources and the information products that will satisfy the functional requirements of the proposed business information systems

Develop logical models of the new system (e.g. flow diagram)

System Implementation (Outcome : Operational System)

Acquire or develop hardware and software

Test the system and train the people to operate and use it

Convert to the new business system Manage the effects of system change

on end users

System Maintenance (Outcome : Improved System)

Use a post implementation review process to monitor, evaluate and modify the system as needed

Prototyping

Prototyping is the rapid development and testing of working models with a view to reduce time and effort in System Development An interactive, iterative process used during

the design phase

Makes development faster and easier, especially when end user requirements are hard to define

Has enlarged the role of business stakeholders 12-89

Prototyping Life Cycle

Identify an end user’s business requirements Develop Business Systems Prototypes using

design and development tools Revise the prototypes (repeatedly) to better

meet end user’s requirement Use the accepted prototype to develop the

business system

System Development Methodologies Process Centered Methodologies Data Centered Methodologies Object Oriented Methodologies Structured Design Methodologies (focusing on SDLC) Rapid Application Development Methodologies Phased Development Methodologies Prototyping based methodologies Agile development MethodologiesNote: Refer MIS by Jayant Oak, Para 5.4 for detailed description.

Object-Oriented Structure

An object consists of Data values describing the attributes of an

entity

Operations that can be performed on the data

Encapsulation Combines data and operations

Inheritance New objects can be created by replicating

some or all of the characteristics of parent objects

5-92

Example of Object-Oriented Structure

Source: Adapted from Ivar Jacobsen, Maria Ericsson, and Ageneta Jacobsen, The Object Advantage: Business Process Reengineering with Object Technology (New York: ACM Press, 1995), p. 65. Copyright @ 1995, Association for Computing Machinery. By permission.

5-93

Unified Modeling Language (UML)

Object Oriented Systems use Unified Modeling Language to describe relationships and interactions between objects.

Object Oriented Programming uses a technique called ‘event driven programming’. Use case diagrams describe the events and responses. For example, MouseClick is an event which calls for a response.

DECISION SUPPORT SYSTEMS

Decision Support Systems(DSS), Business Analytics and Business Intelligence

Decision Support Systems, in the past were based on low volume of data, and utilized special tools and models (like Linear Programming, Operations Research) for analysis. DSS has now been converted into Business Intelligence. It uses vast amount of data and analyses it thru sophisticated data warehousing and data mining tools..

Business Analytics (DSS) for Godrej Household Products – Sales Force Automation (SFA)

SFA solution was implemented on ‘Tablet’ computing devices with a view to capture transactions related to orders, collection and return of goods electronically and transmit them to the billing system and returns databases.

The tablet computer also displays information about sales history, schemes, promotions and achievement Vs. target of salesmen. It can even suggest an order to the salesman for a particular outlet, based on its past record and current purchase.

IBM XPD Desktop, located at the office, integrates data received thru tablet application with backend billing.

The SFA solution utilizes IBM Business Analytics software.

DSS Vs MISManagement Information

SystemsDecision Support

SystemsDecision support provided

Providing information about the performance of the

organization

Providing information and techniques to analyze specific

problemsInformation form and frequency

Periodic, exception, demand, and push reports

and responses

Interactive inquiries and responses

Information format

Prespecified, fixed format Ad hoc, flexible, and adaptable format

Information processing methodology

Information produced by extraction and manipulation

of business data

Information produced by analytical modeling of

business data

10-98

Components of DSS

Model management software (MMS) Coordinates the use of models in the DSS

Model base Provides decision makers with access to a

variety of models Dialogue manager

Allows decision makers to easily access and manipulate the DSS

Database Model base

External databaseaccess

Access to theinternet, networks,and other computersystems

Dialogue manager

DBMS MMS

Externaldatabases

Model Base Model Base

Provides decision makers with access to a variety of models and assists them in decision making

Models Financial models Statistical analysis models Graphical models Project management models

Group Decision Support System

Group Decision Support System (GDSS) Contains most of the elements of DSS plus

software to provide effective support in group decision-making settings

Databases

Model base GDSS processor GDSS software

Dialoguemanager

External databaseaccess

Users

Access to the internetand corporate intranet,

networks, and othercomputer system

Externaldatabases

Characteristics of a GDSS -I Special design Ease of use Flexibility Decision-making support

Delphi approach (decision makers are geographically dispersed)

Brainstorming Group consensus Nominal group technique

Characteristics of a GDSS - II

Anonymous input Reduction of negative group behaviour Parallel communication Automated record keeping Cost, control, complexity factors

Executive Support System

Characteristics A specialized DSS that

includes all the hardware, software, data, procedures, and people used to assist senior-level executives within the organization

Board of directors

President

Function areavice presidents

Function areamanagers

Characteristics of ESS

Tailored to individual executives Easy to use Drill down capabilities Support the need for external data Help with situations with high degree of

uncertainty Futures orientation (predictions, forecasting) Linked with value-added business processes

Capabilities of ESS

Support for defining overall vision strategic planning strategic organizing and staffing strategic control crisis management

E (Executive/ Enterprise/ Everybody’s) Information System

E.I.S. started as ‘Executive Information System’, meant for senior executives but is currently used also at other levels where people need to take decisions based on latest and most relevant information. It uses data analysis tools and presentation techniques such as ‘Executive Dashboards’ . Dashboards present information related to Key Result Areas (KRA) or Key Performance Indicators (KPI) in a single screen. Capability to drill down from aggregate data to components is an essential pre-requisite of EIS.

Examples of dashboards follow.

Typical Dashboards.

Artificial Intelligence (AI) AI is a field of science and technology based

on Computer science Biology Psychology Linguistics Mathematics Engineering

The goal is to develop computers that can simulate the ability to think And see, hear, walk, talk, and feel as well

10-112

Domains of Artificial Intelligence

10-113

Expert Systems and Artificial Intelligence Expert Systems try to incorporate experts’ knowledge

into computer software so as to assist decision making by non-experts (e.g. medical diagnosis, Tax planning). The Expert Systems have ‘knowledge Data Base’ and ‘inference engine’ (i.e. logic) which is used to draw inferences.

Artificial Intelligence ventures into areas which has always required human intelligence. Language Translation and Handwriting Recognition are two examples. AI uses algorithms similar to human reasoning, so as to assist, if not to take decisions.

MANAGEMENT ISSUES IN MIS

Management Issues in MIS (1) –Information Security and Control

External Threats Thru Internet and Thru Remote Access Problems – Hacking, Identity Theft, data loss Firewalls offer a partial solution Internal Threats Password theft, Misuse of authorization, malware (viruses),

physical theft of Hardware and Software Anti Virus Solutions, Access Reviews, Frequent Change of

passwords, back-ups and Business Process Continuity planning, physical controls, maintaining a log of all system activities (audit trails) are the techniques used to combat the threat.

Periodic Information Security Audit is advisable for both.

Security Policy Fundamentals

1. Security Policy Document2. Organizational Security3. Asset Classification and Control4. People Issues5. Physical and Environmental Issues6. System and Infrastructure Management7. Access Control8. System Development and Maintenance9. Business Continuity Management10. Legal and Contractual Compliance

Management Issues in MIS (2) – Software Quality Assurance

Software quality assurance covers attributes such as reliability, efficiency and promised performance .

In order to assure quality of software, 3 aspects need to be attended to.

1. Creating a quality profile – Specifying qualitative and quantitative aspects of software ( such as number of problems reported, number of updates supplied)

2. Process control thru Requirements, Design, Coding and Testing Checklists , software engineering, Documentation etc.

3. Obtaining third party certification from agencies such as ISO about conformance to quality procedures.

Software Quality Assurance Defined

Conformance to explicitly stated functional and performance requirements, explicitly documented development standards, and implicit characteristics that are expected of all professionally developed software.

Software Quality Assurance -Overview

What is Software Quality assurance(SQA)? Quality Concepts. Software Quality Assurance Activities. Software Reviews and their importance Statistical SQA. Software Reliability Software Testing

Components of SQA Software engineering technology Formal technical reviews that are applied

throughout the software process A multi-tiered testing strategy Control of software documentation and

changes to it A procedure to assure compliance with

software development standards Measurement and reporting techniques

SQA Group Activities Participate in the development of the projects as

per software process description Review software engineering activities to verify

compliance with the defined software process. Audit designated software work products to verify

compliance with those defined as part of the software process.

Ensure that deviations in software work and work products are documented and handled according to a document procedure

Record any non-compliance and reports to senior management.

Management Issues in MIS (3) – Ethical Dimensions, Intellectual Property Rights, Global Information Systems

Ethical Aspects are mainly related to misuse of computer technology for personal benefit, intentional manipulation of data, indulging in cybercrime, violating data privacy, even insensitive automation.

Intellectual Property Rights concern software and hardware piracy, violation of patents, breach of trade marks, breach of confidence relating to information held in trust.

Managing Global Information Systems involve dealing with cultural, political and economic challenges posed by different countries, developing appropriate business and IT Strategies for the global marketplace and developing a portfolio of applications to support them.