12/15/20111MANAGEMENT INFORMATION SYSTEMSDr. Vanita AhujaAssistant ProfessorGautam Buddha UniversityIntroduction to the Computer-BasedInformation System12/15/20112Information ManagementInformation:The most valuable resource Five Main Resources Personnel} Material Machines (including facilities and energy)MoneyPhysical Physical}} Money Information (and data)Conceptual Conceptual}12/15/20113How Resources are Managed Acquire q Assemble, or prepare Maximize use ReplaceIT and IS What is Information Technology? Any form of technology used by people to handle information. What are Information Systems? Integrated components processing, storing and disseminating information in angorganisation. Interdisciplinary study of systems that provide information to users in organisations.12/15/20114Information and Data Information Clusters of facts meaningful and useful to human beings in processes such as making decisions Data Streams of raw facts representing eventsp gsuch as business transactions meaningless without structureManagement Information Systems MIS The study of information systems focusing on their use in business and management. Approaches Technical Behavioural Behavioural Socio-technical12/15/20115Why is IS Important? For an organisation to survive and prosper More locations (networking, Internet) New products and services Improve jobs and work flows:EfficiencyCostEthical and social issuesBusiness Enterprise Change from hierarchical organisations Now flat, decentralised Relies on instant information Flexibility with customer focus, with increasing importance12/15/20116Managers Can Be Found on All Levels and in All Functional Areas of the Firm Strategic planning level Strategic planning levelManagement Control Level Management Control LevelOperational Control Operational ControlFinanceFunctionHuman ResourcesFunctionInformationServicesFunctionManufacturingFunctionMarketingFunctionOperational ControlOperational Control Level LevelWhat Managers doStrategicManagementOperational Planning Level Control Level Control LevelPlanC t lDirectOrganizePlanDirectControlControlOrgani zeStaffStaffDirectControlStaffPl anOrgani ze12/15/20117The Influence of Management Level on Information SourceStrategic planning level Strategic planning levelManagement control level Management control levelEnvironmental EnvironmentalOperational control level Operational control levelInternal InternalThe Influence of Management Level on Information FormStrategic planning level Strategic planning levelManagement control level Management control levelSummary SummaryOperational control level Operational control levelDetail Detail12/15/20118Open-Loop SystemTransformation Transformation Input Input Output OutputOpen versus Closed Systems Open system Connected to its environment by means of resource flows Closed system Not connected to its environment12/15/20119Evolution of the CBIS Data Processing (DP) Management Information Systems (MIS) 1964 1964 IBM promoted the concept as a means of selling disk files and terminals Decision Support Systems (DSS) 1971 Text books distinction: MIS: Organizational/group- general DSS: Individual- specific Office Automation (OA)1964 Artificial Intelligence (AI)/ Expert Systems (ES)- 1990s Heavy investment by businessesAchieving the CBIS12/15/201110Reengineering the CBIS Business Process Reengineering (BPR) Reworking systems Good system features retained Becoming development methodology of choiceUsing Information Technology for Competitive Advantage12/15/201111SocietyFinancialC itGovernmentGlobalC itThe Firms EnvironmentCommunity CommunitySuppliersTheFirmCustomersLaborunionsStockholdersor ownersCompetitorsStrategic Planning Long-range planning Intends to give firm most favorable position in its environment Specifies strategies for achieving objectives Need for each business area to create its own strategic plan g p12/15/201112Strategicplanning forThe Functional Areas Should CooperateThe Functional Areas Should Cooperate in Developing Their Strategic Plans in Developing Their Strategic Plansplanning forinformation resourcesStrategicplanning for marketingresourcesStrategicplanning forfinancial resourcesresourcesStrategicplanning for manufacturingresourcesStrategicplanning forhuman resourcesStrategy Set TransformationOrganizational strategy setMISstrategy setgystrategy setMissionObjectivesStrategySystemobjectivesSystemconstraintsMISOther strategicorganizationalattributesSystem design strategiesMISstrategicplanningprocess12/15/201113StrategicPlanning forStrategicPlanning for Information Resources Information ResourcesBusiness strategyInformationresourcesandInfluence onInformationResourcesISstrategyInfluence on BusinessStrategyThe Database and Database Management System12/15/201114Data Structure vs. Spreadsheet Terminologyd h Spreadsheet TermData Structure TermTable FileColumn FieldR R d Row RecordDatabase Structures Database All data stored on computer-based resources of the organization Database Management System (DBMS) Software application that stores the structure of the database, the data itself, relationshipspamong the data in the database, as well as forms and reports pertaining to the database12/15/201115Database Structures (cont.) Hierarchical structure Uses the parent / children concept Uses the parent / children concept Limitation:Cannot handle ad hoc requests Network structure Allow given record to point back to any other record in the database Solves problem of having to backtrack through d t dataThe Database Concept Database concept Logical integration of records in multipleg g pfiles Data redundancy Duplication of data Data inconsistency Data independence Data independence Keep data specifications separate from programs, in tables and indexes12/15/201116SalespersonfileSalesstatisticsfileCustomerfileAccountsreceivablefileBuyerfileInventoryfileVendorfileAccounts payablefilePurchaseorderfileGeneralledgerfileA Database Consists of One or More FilesSchema Data field name Aliases (other names used for same data field) Type of data (numeric alphabetic) Number of positions Number of decimal positions Various integrity rules12/15/201117Data Datadescription descriptionlanguage languageprocessor processorDatabase Databasedescriptiondescription (schema) (schema)ADBMS ADBMSModel ModelDatabase manager Database managerQuery Querylanguage languageData manipulation Data manipulationlanguage (DML) language (DML)A li ti A li tiDatabase DatabasePerformance Performancestatistics statisticsApplication programs Application programsInformation Informationrequestsrequests Information InformationTransaction Transactionlog logBackup/recovery Backup/recoverymodule modulePerformance Performancestatistics statisticsPerformance Performancestatistics statisticsprocessor processorKnowledge Discovery in Databases (KDD) Data warehousingrefinement in the database concept to refinement in the database concept to make itvery largevery purevery retrievable Data mart Data mart a more modest approach than data warehousing, generally only one segment of the firm12/15/201118Knowledge Discovery in Databases (KDD) (cont.)Data mining Data mining the process of finding relationships in data that are unknown to the user may be forverificationdiscoverycombination of verification and discoveryThe Knowledge Discovery in Database (KDD) Process1 Define the data and the task 1. Define the data and the task2. Acquire the data3. Clean the data4. Develop the hypothesis and search model model5. Mine the data6. Test and verify7. Interpret and use12/15/201119DBMS Advantages Reduce data redundancy Achieve data independence Enable integration of data from multiple files Retrieve data and information quickly Improve securityData Communications12/15/201120Types of Networks LAN (local area network) Limited area but could include 100 or so i micros Facilitates office automation MAN (metropolitan area networks) spans one city/metropolitan area WAN (wide area network) Covers a large geographic area Includes a wide variety of circuits Usually includes host computersCommon LAN TopologiesStar12/15/201121Common LAN TopologiesRingCommon LAN TopologiesBus12/15/201122Satellite SatelliteEarth EarthUsers Usersmodem modemIXC circuit(i t hLocal LocalWide AreaWide Area Network NetworkEarth Earthstation stationEarth Earthstation stationTelephone Telephonecompany companycentral office central officeLocal LocalMicrowave Microwavetower towerMicrowave Microwavetower towerIXC circuit IXC circuit(interexchange (interexchangechannel) channel)(interexchangechannel)Local Localloop loopTelephone Telephonecompany companycentral office central officeTelephone Telephonecompany companycentral office central officeTelephone Telephonecompany companycentral office central officeloop loopUsers Usersmodem modemTypes of Networks (cont.) Internet Collection of networks Public Intranet Uses Internet network protocols Limits accessibility Firewall Extranet For trusted business partners and customers12/15/201123Communications Hardware ModemConverts digital to analog and vice versa Converts digital to analog and vice versa Bits per second determines transmission speed Local loop Hub Receives a data packet from a computer at one end of one spoke of the star topography and copies its of one spoke of the star topography and copies its contents to all other computers Manageable hubsCommunications Connections Private Lines Circuit that is always open to communications traffic Also called leased line or dedicated line12/15/201124Communications Connections (cont.) Virtual Private Networks (VPNs) Virtual Private Networks (VPNs) Tunneling software makes Internet connections more secure Privacy through authentication More cost effective than private linesNetwork Management Digital nervous systems of an organizationN t k l i Network planning Anticipates firms network needs Monitors performance Network Control Determines faultsErrors in data communicationAlerts to potential faults12/15/201125Network Management (cont.) Network manager Planning, implementing, operating, and controlling a firms data communications network(s) a firms data communications network(s) Staff Network analysts (a type of systems analyst) Software analysts Data Communication Technicians (specialize in hardware)) LAN managersWireless Networks Cellular networks Hand held telephones Primarily for voice Wireless LANs Extensions of regular LANs Wide area wireless networks Wide-area wireless networks Nationwide12/15/201126Functional Information Systems MIS tailored to meet users needs for information concerning functional areas Manufacturing HRIS Others Executive information systems (EIS) Enterprise information systemP ll f ti l IS t th Pulls functional ISs together Enterprise resource planning (ERP)Simulation Use of a model is called simulation Scenario Conditions that influence the simulation Scenario data elements Decision variablesInp t al es Input values Output format varies12/15/201127Simulation (cont.) Simulation TechniqueSingle scenario for optimi ing model Single scenario for optimizing model What-if game for sub-optimizing models Change only single decision variable per run Systematically discover answers to problems Output format Include both decision variables and outcomes on same reportGraphical Output Reports and model outputs can be d di t b l hi l f produced in tabular or graphical form Spreadsheets have encouraged the use of graphics Can improve decision making capability12/15/201128Decision Support SystemsGroup Decision Support Systems Computer-based system that supports groups of people engaged in a common t k ( l) d th t id task (or goal) and that provides an interface to a shared environment. Used in problem solving Related areasElectronic meeting system(EMS) Electronic meeting system (EMS) Computer-supported cooperative work (CSCW) Group support system (GSS) Groupware12/15/201129Other Othergroup groupmembers membersEnvironment EnvironmentIndividual Individualproblem problemsolvers solversA DSS Model A DSS ModelGDSSsoftwareMathematical MathematicalModels ModelsDatabase DatabaseGDSS GDSSsoftware softwareReport Reportwriting writingsoftware softwareDecisionsupportsystemEnvironment EnvironmentAreas of Artificial Intelligence Areas of Artificial IntelligenceExpert ExpertAI AIsystems systemsAI AIhardware hardwareRobotics RoboticsPerceptive Perceptivesystems systems(vision, (vision,hearing) hearing)Neural Neuralnetworks networksNatural Naturallanguage languagehearing) hearing) networks networksLearningArtificial Intelligence Artificial Intelligence12/15/201130Expert Systems Computer program that codes the knowledge of human experts in the form knowledge of human experts in the form of heuristics Two distinctions from DSS 1. Has potential to extend managers problem-solving ability 2. Ability to explain how solution wasreachedUserUserinterfaceInstructions &informationSolutions &explanationsKnowledgeKnow-ledgebasete aceInferenceengineProblemDomain DevelopmentExpert and knowledge engineerengine Expert Expertsystem systemAn ExpertAn Expert System Model System Model12/15/201131Inference Engine Performs reasoning by using the contents f k l d b i ti l of knowledge base in a particular sequence Two basic approaches to using rules 1. Forward reasoning (data driven) 2 Reverse reasoning (goal driven) 2. Reverse reasoning (goal driven)Forward Versus Reverse Reasoning Reverse reasoning is faster than forward i reasoning Reverse reasoning works best under certain conditions Multiple goal variables Many rules Many rules All or most rules do not have to be examined in the process of reaching a solution12/15/201132Expert System Disadvantages Cant handle inconsistent knowledge Cant apply judgment or intuitionExecutive Information Systems12/15/201133The Executive PositionUnique demands of the executive Unique demands of the executive positionAn executive is not just a lower-level manager on a higher level! Executives require unique information processingEnvironmental information and data Top-levelmanagersA Firm Without AnEISMarketing Manufacturing FinancialHumanresource ginformationsysteminformationsysteminformationsysteminformationsystemEnvironmental information and data12/15/201134Environmental Information and dataExecutiveinformationA Firm With An EISHumaninformationsystemEnvironmental Information and dataMarketinginformationsystemManufacturinginformationsystemFinancialinformationsystemHumanresourceinformationsystemInformationrequestsExecutivedatabaseInformationdisplaysExecutive workstationAn EIS ModelMake corporateCorporatedatabaseElectronicCurrent news,explanationsTo otherexecutiveworkstationTo otherexecutiveworkstationinformation availableElectronicmailboxesSoftwarelibrarypExternaldata andinformationCorporate mainframe12/15/201135The Virtual OfficeThe Virtual Office Office work can be done at virtually any geographic location geographic location Must be linked by electronic communication Impact Emerged with the appearance of low cost microprocessorsTeleprocessing Teleprocessing Telecommuting12/15/201136Virtual Organization Extends idea of a virtual office to an entire i ti organization No ties to physical location Three I Economy InformationIdeas Ideas IntelligenceA Document Management SystemLaser Laserprinter printerDocuments Documentsto be read to be readOCR OCRReader ReaderNetwork server Network serverDBMS DBMSWorkstation WorkstationWorkstation WorkstationOpticalOptical diskdisk storage storage DBMS DBMSWorkstation WorkstationWorkstation WorkstationLaser Laserprinter printerstoragestorage unit unit12/15/201137Financial Information SystemsUsers of Financial Information Internal users Managers Nonmanagers Environmental users Those with direct business relationshipsThose with no direct relationships Those with no direct relationships12/15/201138AccountinginformationsystemForecastingsubsystemInputsubsystemsOutputsubsystemsDataInformationA Model of a Financial Information System A Model of a Financial Information SystemDatabasesystemInternal auditsubsystemFundsmanagementsubsystemInternal sourcesEnvironmentalsourcesUsersFinancialintelligencesubsystemControlsubsystemsourcesManufacturing Information Systems12/15/201139Manufacturing Information System Used to support efforts to produce products Evolution of computer use in manufacturing Systems keyed on reorder pointsMRP MRP J ITReorder Point With No Safety Stock Reorder Point With No Safety Stockand With a Safety Stock and With a Safety StockReorder pointLead time TimeBalanceon handA. No safety stockSafety stockBalanceon handB. Safety stock12/15/201140Terminal TerminalReceiving area Receiving areaRR t i l t i lReceiving Receivinginspection inspection12Location ofLocation of Data Collection Terminals Data Collection TerminalsRaw Raw- -materials materialsstoreroom storeroomShop floor area Shop floor area3 4 5678910Finished Finished- -goods goodsstoreroom storeroomShipping area Shipping area1112SupplierinputFinancial strength, quality controlemphasis, past quality and deliveryperformance, and so onInput to Supplier Records Input to Supplier RecordsUnits rejected upon receipt, unitsrejected during production, reasons for rejection, and so onQualitycontrol inputSupplierfileUnitsreplaced or repaired becauseof defective parts, supplier spareparts availability, and so onCustomerservice input12/15/201141Human Resources Information SystemsRecruitingHiringEducation& TrainingTerminat-ionBenefitAdministrationPrimary HR Activities Primary HR ActivitiesPotentialEmployeesEmployeesRetiredEmployeesThe FirmData Management12/15/201142AccountinginformationsystemWork forceplanningsubsystemInputsubsystemsOutputsubsystemsDataInformationHRIS Model HRIS ModelRecruitingsystemHuman resourcesresearchsystemWork forcemanagementsubsystemInternalsourcesEnvironmentalsourcesUsersHRISDatabasesubsystemCompensationManufacturingintelligencesubsystemBenefitssubsystemsourcesEnvironmentalreportingsubsystemSubsystemThe HRIS DatabaseType of data: Type of data:1. Employee82.5% of the firms maintain only employee data2 Nonemployee 2. Nonemployee8% of the firmsmainly organizations external to the firm12/15/201143Enterprise Information SystemsWhat is an Enterprise Information System (EntIS)? Computer-based system that can f ll t d d ti t k perform all standard accounting tasks for all of the organizational units in an integrated and coordinated fashion System purpose is to collect and disseminate data to all processes of the i ti organization Also called enterprise resource planning (ERP)12/15/201144EISn

on Planning and ControlAggregation of DataEIS Sitting Atop Business Area ISsMarketing InformationSystemsInformation Resources Information SystemsFinancial InformationSystemsManufacturing InformatioSystemsEntISMTransaction Recording Data DetailsSecurity Objectives Confidentiality Availability IntegrityCurrent attentionisfocusedon Current attention is focused on malicious software such as computer viruses.12/15/201145IdentificationUserProfilesUsersAuthenticationAuthorizationProfilesAccesscontrolfilesAuditlogDatabaseSoftwarelibraryReportwriterSecurityreportsAccess Control FunctionsSystems Development Life Cycle (SDLC) Methodology12/15/201146Systems Analysis and DesignInformation systems development must address broader organizational issues: What is the justification for the type of application What is the justification for the type of application to be developed? What actual or desired processes should the application perform? How will we verify that the application performs as designed?The Systems Development Lifecycle (SDLC) methodology allows a project team to successfully build an application uniquely suited to the organizations needsSystems Development Lifecycle StepsThe SDLC is generally presented as an iterative sequence of five steps: Systems Planning Systems Analysis Systems Design Systems Implementation Systems Operation and Support,each culminating in a deliverable, either a written d i f f ( b h) document or a piece of software (or both)SDLC allows organizations to incorporate new requirements, technology and human resources to IT development12/15/201147SDLC Details Systems Planning Project definition Feasibility study/alternatives analysis Project scope, deliverables Standards, techniques, methods Task assessment, skill assessment, preliminary time estimation Yields Preliminary Investigation Report Systems Analysis Analysis of existing hardware/software User requirements analysis Logical systems design: Conceptual data model (Entity-Relationship Diagram) Conceptual process model (Data Flow Diagram) Functional application description Yields Systems Requirements DocumentSDLC Details (contd) Systems Design Relational database model and data dictionary (sometimes included in Systems Analysis phase) Detailed description of application inputs and outputsD t il d t l d i f f t li ti Detailed conceptual design of forms, reports, application programs and other application components Yields System Design Specification Systems Implementation Application development and/or installation Testing and EvaluationYields Functional Information System Yields Functional Information System Systems Operation and Support Maintenance Revisions Yields Operating Information System12/15/201148QUESTIONS ANDDISCUSSIONSvanita_ahuja@yahoo.com