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Information system
UNIT II: FOUNDATION OF
INFORMATION SYSTEM
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INFORMATION
Information is data that has been
processed into meaningful and useful
context for end users
Example:
Sales data is names, quantities, and dollar amounts
Sales information is amount of sales by product type,
sales territory, or salesperson
Processing includes
calculating ,comparing, sorting, classifying and
summarizing
DATA VERSUS INFORMATION
Data Information
DATA VS. INFORMATION
Data: 57911
Information:
19/5/17 The date of your final exam.
$6.60
6.64
$6.40
6.71
$6.20
6.82
7.12 $6.00
7.06 $5.80
1 2 3 4 5 6 7 8 9 10
Last 10 Days
DATA INFORMATION KNOWLEDGE
Data
Summarizing the data
Data Processing
Adding context
Adding value
Information
DATA INFORMATION KNOWLEDGE
Information
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WHAT IS AN INFORMATION SYSTEM?
Control of System Performance
Input of Output of
Processing
Data Information
Data
Resources Products
Support of
Strategic
Advantage
Support of
Managerial
Decision Making
Support of
Business Operations
USE OF IT FOR STRATEGIC ADVANTAGE
A company can survive and succeed in the long run only if it
successfully develops strategies to confront five competitive
forces that shape the structure of competition in its industry.
In Michael Porter’s classic model of competition, any business
that wants to survive and succeed must effectively develop
and implement strategies to counter
NEED OF INFORMATION SYSTEM
1. Strategy for gaining a competitive edge
2. Increasing revenues
3. Reducing costs
4. Improving profits
5. Improving quality
6. Creating new opportunities
7. Speed of performance
8. Multi-tasking
9. Entrepreneurs
10. Communication
11. Decisions
12. Operations
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FUNDAMENTAL RESOURCES OF AN
INFORMATION SYSTEM
INFORMATION SYSTEM RESOURCES
People Resources
Specialists
End users
Hardware Resources
Machines
Media
Software Resources
Programs
Procedures
Data Resources
Product descriptions, customer records, employee files,
inventory databases
Network Resources
Communications media, communications processors, network
access and control software
Information Resources
Management reports and business documents using text and
graphics displays, audio responses, and paper forms
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PEOPLE RESOURCES:
Includes human resources essential for successful
operation of information system
End users :people who uses an information
system or information produced by IS.
Knowledge workers: works by communicating,
collaborating in teams and creating using and
distributing information
IS specialist: people who develop and operate
information system
System analyst, software developer, system
operators
HARDWARE RESOURCES
Includes all physical devices and materials used
in information processing
Tangibles machines as well as intangible data
media
Computer peripherals: Input and output
devices
Computer systems: consists of central
processing units containing microprocessors.
E.g. handheld devices, laptop tablet or
desktops micro computer systems
SOFTWARE RESOURCES
Includes all sets of information processing
instructions
Both programs and procedures
Lower
TPS
Management
Technical
(Operational)
Buy Make Sell Keep
Functions
Structured Track
Transaction Processing Systems
Business transactions are events that serve the mission of the business.
Transaction processing systems are information system
applications that capture and process data about (or for)
business transactions. They are sometimes called data
processing systems.
Transaction processing systems can either:
respond to business transactions (such as orders, time cards, or payments)
initiate transactions (such as invoices, paychecks, or receipts) – possibly
both
can respond to both external events (such as processing orders from
customers) or internal events (such as generating production orders for the
shop floor).
A third type of transaction processing system, data maintenance, provides for
routine updates to stored data. For example, a system must provide for the ability
to add and delete CUSTOMERs and PRODUCTs, as well as to change specific
facts such as CUSTOMER ADDRESS and PRODUCT PRICE.
Management Information Systems
Vulnerability Example :
- Lack of training.
Threat-Source: Either
(1) intent and method targeted at the intentional exploitation of
a vulnerability or
List of Threats
- Accidental Discloser()
- Acts of Nature(Natural Disaster)
- Alteration of Software(Virus)
- Bandwidth Uses(DDOS Attack)
- Electrical Interferences/ Disruption(DOS, Modification data,
Corrupt Data)
- Intentional Alteration of Data(Insiders, Out sider)
- System Configuration Error(Initial Installation, Upgrading, illegal
software, Version)
- Telecommunication Malfunction/Interruption(Communication
link, unit or component failure)
WHAT IS MANAGEMENT INFORMATION
SYSTEM?
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.
The information is the blood and MIS is the heart. In the body
the heart plays the role of supplying pure blood to all the
elements of the body including the brain.The MIS plays exactly
the same role in the organization. The system ensures that an
appropriate data is collected from the various sources,
processed, and sent further to all the needy destinations.
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OBJECTIVE OF MIS
To fulfill the information needs of an individual, a group of
individuals, the management functionaries: the managers and
the top management.
To satisfies the diverse needs through a variety of systems such
as Query Systems, Analysis Systems, Modeling Systems and
Decision Support Systems.
To helps in Strategic Planning, Management Control,
Operational Control and Transaction Processing.
To support of its business process and operations
To improve of decision making by its employees and managers
To implement strategies for competitive advantage-Gaining a
strategic advantage
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CHARACTERISTICS OF MIS
Management-oriented: The basic objective of MIS is to
provide information support to the management in the
organization for decision making.
Management directed: When MIS is management-
oriented, it should be directed by the management
because it is the management who tells their needs and
requirements more effectively than anybody else.
Integrated: It means a comprehensive or complete view
of all the subsystems in the organization of a company.
Common data flows: The integration of different
subsystems will lead to a common data flow which will
further help in avoiding duplicacy and redundancy in
data collection, storage and processing.
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CHARACTERISTICS OF MIS
System approach: When a problem is seen in 2 sub parts,
then the better solution to the problem is possible.
Common database: This is the basic feature of MIS to
achieve the objective of using MIS in business
organizations.
Computerized: MIS can be used without a computer. But
the use of computers increases the effectiveness and the
efficiency of the system.
User friendly/Flexibility: An MIS should be flexible.
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CHARACTERISTICS OF MIS
Timeliness
Accuracy
Consistency
Completeness
Relevance
Reliable
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APPLICATIONS OF MIS
Planning
Recording
Controlling
Measuring
Decision Making
Analyzing
Policy Making
Strategy Forming
BENEFITS OF MIS
Facilitates Planning
Minimizing Information Overload
MIS Encourage De-Centralized
Brings Co-ordinations
Makes Control Easier
MIS Increases Productivity
MIS increases the Quality of Decision Making
MIS improves communication and helps to develop team
work
MIS can Facilitate Organizational Transformation
LIMITATIONS OF MIS
→Top Down
→ Bottom Up
→ Integrated Approach
BOTTOM UP APPROACH
The development of information system under
this approach starts from the identification of life
stream systems i.e., the systems which are
essential for the day to day business activities.
The example of life stream systems includes
payroll, sales order, inventory control and
purchasing etc.
In time approach, initially the transaction
processing modules are created and later models
for planning, control and strategic planning are
added. The system grows in response to the
increased needs of users.
TOP DOWN APPROACH
In a top-down approach an overview of the
system is formulated, specifying, but not
detailing, any first-level subsystems. Each
subsystem is then refined in yet greater detail,
sometimes in many additional subsystem levels,
until the entire specification is reduced to base
elements.
INTEGRATIVE APPROACH
This approach can overcome the limitations of the
above two approaches when used objectively.
Integrative approach permits managers at all levels
to influence the design. Top management identifies
the structure and design of MIS suitable to the
concern.
This design is further presented to lower level to
suggest changes, additions or deflections and return
the design with their suggestions to the top level for
approval.
The revised design is down and evaluated by the top
level and sent down again in a modified form for
further consideration, if required. This evaluation,
modification and approval process continues until a
final design is achieved that is satisfactory to all
levels.
IMPLEMENTATION OF MIS
Implementation Plan
Creating Master Schedule
Setting time line for critical and non-Critical Activities
Identifying Measure bottle Neck and their solutions
Communication of the Plan
Organizing the MIS Department
Selection and Procurement of Hardware
Preparation of Vendor
Preparation of RPF(Request for proposal)
Request for Bid/proposals
Evaluation
Selection
Procurement of Software
Creating Database
Training Users
Creating Physical Infrastructure
Transition of the new System
Developing Information System
MEASURING SUCCESS OF AN MIS
Efficiency
Minimize cost, time and use of information resources
Effectiveness
Support business strategies
Enable business processes
Enhance organizational structure and culture
Increase the customer and business value
SYSTEM DEVELOPMENT LIFE CYCLE