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ODM COMPUTER &MGT.

EDUCATION DECISION SUPPORT SYSTEM AND MANAGEMENT INFORMATION SYSTEM

Unit-I
Decision Support System: Overview, components and classification, steps in constructing a DSS, role in business, group decision support system Qu 1. Define DSS? Explain its components and types. What type of support is provided by DSS? Ans. It is an information system that offers a kind of information that may not be predictable, business professional may need. These systems do not produce regularly scheduled management reports. DSS assist managers who must make decisions. A decision is considered unstructured, if there are no clear procedures for making the decisions and if not all the factors are to be considered in the decision can be identified in advance. Judgment of the manager plays an vital role where the problem is not structured. DSS supports, but does not replace the judgment of the manager. Components Following are the components of the Decision Support System : (a) Database Management System (DBMS) : To solve a problem the necessary data may come from internal or external database. In an organisation, internal data are generated by a system such as TPs and MIS. External data come from a variety of sources such as newspapers, online data services, databases (financial, marketing, human resources). (b) Model Management system : It stores and accesses models that managers use to make decisions. Such models are used for designing manufacturing facility, analyzing the financial health of an organisation. Forecasting demand of a product or service et. (c) Support Tools : Support tools like online help, pull down menus, user interfaces, graphical analysis, error correction mechanism, facilitates the user interactions with the system. Steps To Construct A Decision Support System The steps to construct a DSS are as follows :(a) DSS generator :- It is comprises of programmes such as management tools, electronic spreadsheet, report generators, statistical packages, graphical package, query languages and model building tools that helps the development of DSS. Some known DSS generators are FOCUS, Excel and Lotus 1-2-3.

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(b) DSS Shells : It is a programme used to build a customized DSS. Shells eliminate the need for developing DBMS model management system. A user can simply connect the shell with the appropriate external and internal database and input the appropriate models in order to have a fully functioned DSS. The shells have become more users friendly. (c) Custom made Software : These are designed and developed by organisations, who are committed to the DSS technology but can not find a suitable generator are shells. The software is developed by using a procedural language, such as C or fourth generation language (4 GL) such as FOCUS. Organisation may choose to combine shells and customized software. Types Types of decision support system are as under :(a) Status Inquiry System : The number of decisions in operational managements and some at middle level are such that they are based on one or two aspect of decision making situation. It does not call for any elaborate computations, choice etc. for decision making. (b) Data Analysis System : These systems are based on comparative analysis and makes use of formula or an algorithm. But these processes are not structured and therefore, vary. The cash flow analysis, inventory analysis are the examples. (c) Information Analysis System : In this system data is analysed and the information report is generated. The report may have some exceptions. The sales analysis, accounts receivable systems, market analysis are some of the examples. (d) Accounting System : These systems are not necessarily required for decision making but desirable to keep track of the major aspects of the business or a function. (e) Model Based System : These systems are simulation models or optimization models for decision- making. These decisions generally are one time and infrequent and provide general guidelines for operation or management. CLASSIFICATION There are several ways to classify DSS . HOisapple and Whinston classify DSS in following : (a) Text Oriented DSS : It support a decision maker by electronically keeping trade of taxtually represented information that could have a bearing on decision. It allows documents to be electronically created, revise and viewed as needed.

ODM COMPUTER &MGT. EDUCATION (b) Database Oriented DSS : In this type of DSS database plays a major role in the DSS structure. Rather than being treated as stream of text, data are organised in a highly structured format. (c) Spreadsheet Oriented DSS : Spreadsheet is a modeling language that allows the user to write models to execute DSS analysis. They create, view, modify procedural knowledge but also instruct the system to execute self contained instructions. The most popular tool is Excel and Lotus 1-2-3. (d) Solver Oriented DSS ; A solver is an algorithm or procedure written as computer programme for performing certain computations and particular program type. (e) Rules Oriented DSS : Export system is the example. (f) Compound DSS : explained above. Support provided by DSS Following supports are provided by DSS :(a) DSS provide support for various managerial level, ranging from top executive to line managers. (b) It provides to individuals as well as to group. Less structured problems often requires the involvement of several individuals from different departments and organisation level. (c) DSS provides support to several independent and sequential decisions. Procedures are adopted in rules oriented DSS.

It is built by using two or more of the five structures

(d) DSS supports all phases of decision making process, intelligence, design, choice and implementations. (e) DSS are adaptive over time. The decision maker should be reactive, able to confront changing conditions quickly and adapt the DSS to meet these changes. DSS are user friendly. So user can add / delete, change or rearrange the basic elements. (f) DSS supports a variety of decision making process and styles.

(g) Users must feel at home with DSS. User- friendliness, strong graphic capabilities and English like interactive human machine interface can greatly increase the effectiveness of DSS. (h) DSS attempts to improve the effectiveness of decision making, rather than its efficiency (cost) of making decision.

ODM COMPUTER &MGT. EDUCATION (j) The decision maker has complete control over all steps of decision making process in solving problem. A DSS specifically aims to support and not to replace the decision maker. (k) End users should be able to construct and modify simple systems by themselves. Larger systems can be built with assistance from information system (IS) specialists. (l) A DSS usually utlises models for analyzing decision making situations. The modeling capability enables experimenting with different strategies under different configurations.

Qu-2 Why do manager need DSS?


Ans Manager need the decision support system for performing the following functions:(a) Model Building : A model builder manager uses a structure frame workto identify variables like demand, cost and profit analysis the relationships among these variables. (b) What-if analysis : Managers need DSS in the process of assessing the impact of changes to model variables, the values f variables. This helps managers to be proactive, rather than reactive, in their decision making. (c) Goal seeking : Manager use it in the process of determining the input values required to achieve a certain goal. For example, a house buyer determines the monthly payment that they can afford and calculate the numbers of such payments required to pay the desired house. (d) Risk Analysis : It allows managers to access the risk associated with various alternatives. Decision can be classified as low risk, medium risk and high risk. A DSS is particularly in medium and high risk environments. (e) Graphical analysis : This helps managers to quickly digest large volume of data and visualize the impacts of various courses of action.

Qu-3 Define Group Decision Support System?


Ans - A decision support system that provides support in decision making by a group of people. GDSS are computer based information system that facilitates the free flow and exchange of ideas and information among the group members. Decisions are made with a higher degree of consensus and agreement resulting in a dramatically higher like hood of implementation. Group consists of less than 20 people who arrive at decision through communication. The communication serve to share information and implement the decision making process. The decision is taken by vote but is more often by negotiation or preference ranking. Types of GDSS

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Three types of computer based supports are available :(a) Decision Network : This type helps the participants to communicate each other through network or through a central database. Application software may use commonly shared models to provide support. The commonest implementation is using local area network and microcomputers. The technology filters out many group dynamics of a participative meeting. (b) Decision Room : Participants are located at one place i.e. the decision room. The purpose of this is to enhance participants interactions and decision making by computerized within a fixed period of time using a facilitator. (c) Teleconferencing : Groups are composed of members or sub groups that are geographically dispersed, teleconferencing provides interactive connection between two or more decision rooms. This interaction will involve transmission of compturised and audio visual information. Decision network can be viewed as the use of local area network, for decision making involving groups the decision room is entirely new development. The decision room should consist of a table with network workstations for the purpose. Breakout rooms, used for similar discussions, are also equipped with similar network machines. A combination of overhead projector, flipchart, photocopier and other presentation devices are provided as well. Following software are used :(a) Brainstorming : The software may be used at any stage of processing but is valuable particularly at early stages when member of the group need to think and converse on the issue. (b) voting : It is frequently important to obtain swift view on the acceptability of proposals from a group perspective before proceedings. Voting (c) Policy Formation : Software can aid policy formation by allowing decision makers to identify connections and relations between issue and communicate to all present for comments.

ODM COMPUTER &MGT. EDUCATION

Unit-II
Information system for strategic advantage, strategic role for information system, breaking business barriers, reengineering business process, improving business qualities. Information System For Strategic Advantage It is the system that support or shape the competitive position and strategic of a business. So a strategic information system can be any king of information system that uses information technology to help an organisation gain competitive advantages, reduce a competitive disadvantage and meet other strategic enterprises objectives. Types Information technology can be used to implement the five basic strategies. Many companies are using internet technology as foundation of for such strategies. (a) Cost Leadership Strategy : Becoming a low cost producer of a products and services in the industry, a firm can find ways to help its suppliers or customers to reduce their cost or to increase the cost of their competitors. (b) Differentiation Strategy ; Developing ways to differentiate a firms products and services from its competitors or reduce the differentiation advantages of competitors. This may allow affirm to focus its product or services to give it an advantage in particular segments of a market. (c) Innovation Strategy : Finding new ways of doing business. This may involve the development unique products and services or entry into unique market or market niches. It may also involve making radical changes to the business processes for producing or distributing products and services that are so different from the way a business has been conducted that they alter the fundamental structure of an industry. (d) Growth Strategy : Significantly expanding a companys capacity to produce goods and services into global market, diversifying into new products and services or integrating into related products and services. (e) Alliance Strategy : Establishing new business linkage and alliances with customers, suppliers, competitors and other companies. The linkage may include mergers, acquisitions, joint ventures, forming of virtual companies or other marketing, manufacturing or distribution agreements between a business and its trading partners. Strategic Uses

ODM COMPUTER &MGT. EDUCATION Business managers invest in information technology to direct support firms competitive strategies. Strategic information system is used to implement each of these five basic strategies for competitive advantage. There is major use of internet technology for electronic business and commerce applications. STRATEGIC ROLE FOR INFORMATION SYSTEM The major roles of information system are as follows : (a) Support Business Processes : As a consumer, you have to deal with the information system that supports the business processes and operations at many retail shops where you shop. (b) Support Decision Making : Information system also helps store managers and other business professional to make better decision and attempt to gain competitive advantage. (c) Support Competitive Advantage : Gaining a strategic advantage over competitors requires innovate use of information technology. Types Of Information System There are two types of information system : 1. Operation Support System : Under operation support system: (a) Transaction Processing System : process data resulting from business transactions, updates operational database and produce business documents. (b) Processing control system : Monitor and control industrial process. (c) Enterprise Collaboration System : Support team, work group, and enterprises communication and collaboration. 2. Management Support System : Under management support system : (a) Management Information System : Provide information in the form of pre-specified reports and displays to support business decision making. (b) Decision Support System : Provide interactive adhoc support for the decision making process of managers and other business professionals. (c) Executive Information System : Provide critical information fro many sources tailored to the information needs to executives. REENGINEERING BUSINESS PROCESS It is a management approach that examines aspects of a business and its attempt to improve the efficiency of underlying processes. According to Michel Hammer business process redesign/reengineering can be defined as, the analysis and design of workflow and process within and between organisation. Business process reengineering is also known as BPR, Business Process Redesign, Business Transformations, and Process Change Management. Target Category / Goal Business Process Reengineering has three key target categories :

ODM COMPUTER &MGT. EDUCATION

(a) Customer Friendly: One of the main goal of introducing BPR is to get a competitive edge and that can only be gained by providing the customer more than what the others in the market are asking for. If a customer is looking for products to their needs, for example a car customized to the customers taste, and then the car maker would most probably gain more customers over the competition due to the customization option. (b) Effectiveness : If whatever product or service the business might be providing to the customer is successful, then the customer would automatically want to buy that product or service again. For example, Japanese made car Toyota and Honda, even though they are more expensive compared to the domestic cars, they are very reliable cars causing the customer to continue going back to those brands for generations. (c) Efficiency : This is one of the most key categories that is believed to be more important than any others. If a manufacturing company can master the skill of being efficient then they can automatically be more customers friendly and effective. Efficiency is not just about being efficient at production floor but the management level also. Success : BPR, if implemented properly, can give huge returns. BPR has helped giant like Procter and Gambler Corporation and General Motors Corporation succeed after financial drawbacks due to competition. It helped American Airlines somewhat get back on track from the bad debt that is currently haunting their business practice.

Business Improvement and BPR Following is difference between continuous business improvement and Business Process Reengineering : (a) Definition : Reengineering is fundamental rethinking and radical redesigning of business process to achieve dramatic improvement in cost, quality, speed and service. So. Business improvement is an incrementally improving process. (b) Targets : BPR combines a strategy of promoting business innovations with a strategy of making major improvement to business process so that a company can become a much stronger and more successful competitor in the market place. Business improvement targets on any process. (c) Primary enabler : Organizational redesigning approach is an important enabler of reengineering, along with the use of information technology. Fore example, one common approach is the use of self-directed cross-functional or multidisciplinary

ODM COMPUTER &MGT. EDUCATION process team. Business improvement is primary enabler of information technology and work simplification. (d) Potential Payback : Business process reengineering makes 10 fold improvement in the business. Continuous Business improvement makes 10% to 50% improvements in the business. (e) Changes : Big job cuts, new jobs and major job redesign are carried out as change in business process reengineering. Same job or just more efficiency is as change in continuous business process. (f) Risk of failure and Level of disruption is high in BPR and low in business improvement.

Role of Information Technology Information Technology plays an important role in reengineering most business process. The speed, information processing capabilities and connectivity of computers and internet technology, as well as communications and collaboration among the people for their operation and management. For example, the order management is vital to the success of most companies. Many of them are reengineering this process with enterprise resources software and web-enabler. Information technology can be used strategically to improve business performance in many ways other than supporting reengineering initiatives. One important strategic thrust is continuous quality improvement popularly known as total quality management (TQM). Principle of BPR Hammer and Champy suggested seven principles of business process reengineering : (a) Organise around outcomes, not tasks. (b) Identify all processes in an organisation and prioritise them in order of redesign urgency. (c) Integrate information processing working into real work that produces the information. (d) Treat geographically dispersed resources as though they were centralized. (e) Link parallel activities in the workflow instead of just integrating their results. (f) Put the decision point where the work is performed, and build control into the process. (g) Capture information once and at the source. Basic Elements of Business Process Basic elements of business process are :

ODM COMPUTER &MGT. EDUCATION (a) (b) (c) (d) (e) Motivation to perform Data gathering, processing and storing. Information processing Decision making Communication

Unit-III
Information system analysis and design, information SDLC, hardware and software acquisition, system testing, documentation and its tools, conversion methods. SYSTEM DEVELOPMENT LIFE CYCLE To understand system development, we need to recognize that, a candidate system has a life cycle, just like a living system or a new product. System analysis and design are keyed to the system life cycle. Stages 1. Recognition of Need : One must know, what problem is before it can be solved. The basis for a candidate system is recognition of need for improving an information system or a procedure. For example, a supervisor may want to investigate the system flow in purchasing or a bank president has been getting the complaints about long lines in the drive-in ATM counters. 2. Feasibility Selection : Depending on the results of the initial investigation, the survey is expended to a more detailed feasibility study. A feasibility study is a test of system proposal according to its workability, impact on the organisation, ability to meet users need and effective use of resources. It focuses on the major questions: What are the userss demonstrated needs and how does a candidate system meet them? What resources are available for a given candidate system? What are the likely impacts of candidate system on organisation? How well does it fit within the organizations MIS plan? The objective of the feasibility study is not to solve the problem but acquire a range of scope. During the study the problem definition is crystallized and aspects of the

ODM COMPUTER &MGT. EDUCATION problem to be included in the system are determined. Consequently, cost and benefits are estimated with greater accuracy at this stage. 3. Analysis : Analysis is a detailed study of the various operations performed by a system and their relationship within and outside the system. A key question is : what must be done to solve the problem? One aspect of analysis is defining the boundaries of the system and determining whether or not a candidate system should consider other related system. During analysis, data are collected on the available files, decision points and transactions handled by the present system. Tools are used and logical model of the system is developed. 4. System Design : The most creative and challenging phase of the system life cycle is system design. The term design, describes a final system and process by which it is developed. It refers to the technical specifications that will be applied in implementing the candidate system. It also includes the construction of programmes and programme testing. The key question here is : how should the problem solved? The major steps in design are : The first step is to determine, how the output is to be produced and in which format. Sample of output are also presented. Input data and transfer files have to be designed to meet the requirements of the proposed output. The operational phases are handled through programmes constructions and testing including a list of programmes needed to meet the systems objectives and complete documentation. Details related to justification of the system and an estimate of the impacts of the system on the user and organisation. The final report prior to implementation phase includes procedural flowcharts, record layout, report layout and plan for implementing the candidate system. Information on personnel, money, hardware, facility and their estimated cost must also be available. At this point projected cost must be close to actual cost of implementation. Testing : System testing requires a test plan that consists of several key activities and steps for programs, strings, system, and user acceptance testing. The system performance criteria deals with turnaround time, backup, file protection and the human factor. 5. Implementation : The implementation phase is less creative than system design. It is primarily concerned with user training, site preparation and file conversion. When the candidate system is linked to the terminal or remote site, the telecommunication network and test of network along with the system are also included under implementation. During the final testing, user acceptance is tested, followed by user training. Depending on nature of the system, extensive user training may be required. Conversion usually takes place at about the same time, when the user is being trained or later. 6. Post Implementation : In the extreme, the programmer is viewed as someone, who ought to be isolated from other aspects of system development. Programming is itself a design work, however, the initial parameters of the candidate system should be

ODM COMPUTER &MGT. EDUCATION modified, as a result of the programming efforts. Programming provides a reality test for the assumption made by the analyst. It is therefore, a mistake to exclude programmers from the initial system design. Evaluation : During system testing, the system is used experimentally to ensure that the software does not fail. In other words, we can say that, it will run according to its specification and in the way user expect. Special test data inputs for processing and the result examined. A limited number of users may be allowed to use the system, so that, analyst can see, whether to use it in unforeseen ways. It is desirable to discover any surprise before the organisation implements the system and depends on it. Evaluation of the system is performed to identify its strength and weaknesses. The actual evaluation can occur along any one of the following dimensions : o Operational Evaluation : assessment of the manner in which the system functions. o Organisational Impect : Identification and measurement of benefits to the organisation in such areas as financial concerns, operational efficiency and competitive impact. o User Manager Assessment : Evaluation of the attitudes of senior manager and user within the organisation as well as end users. o (iv) Development Performance : Evaluation f the development process in accordance with such yardsticks as overall development time and efforts, conformance to budget and standards and other project management criteria. Maintenance : Maintenance is necessary to eliminate the errors in the working system during its working life and to tune the system to any variations in its working environment. Often small system deficiencies are found, as system is brought into operation and changes are made to remove them. System planner must always plan for resources availability to carry on these maintenance functions. Enhancements : User priorities, changes in organizational or environmental factors also call for system enhancement. Like any system, there is an ageing process in software that requires periodic maintenance of hardware and software. If the new information is inconsistence with design specifications, then changes have to be made. SYSTEM TESTING Testing is vital to success of a system. System testing makes a logical assumption that if all the parts of the system are correct, the goal will be successfully achieved. Inadequate testing or non-testing leads to errors that may not appear until months later. This creates two problems : o The time log between the cause and the appearance of the problem (the longer the time interval, the more complicated the problem becomes). o The effect of system errors on files and records within the system. A small system error can conceivably explode into a much larger problem. Effective testing early in process translates directly into long term cost saving from a reduced numbers of errors. Another reason for system testing is its utility as a user oriented vehicle before implementation. The best program is worth useless, if it does not meet user needs. Unfortunately, the users demands are often compromised by efforts to facilitate program or design efficiency in terms of processing time or memory utilisation.

ODM COMPUTER &MGT. EDUCATION Often the computer technicians and users have communication barrier due to different backgrounds, interests, priority and perhaps languages. The system tester who has developed some computer mastery can bridge this barrier. Testing Practice : The philosophy behind testing is to find out errors. Test cases are prepared with this purpose. A test case is a set of data that the system will process as normal input. However, the data is created with the express intent of determining, whether the system will process them correctly. For example, test cases for inventory handling should include situations in which the quantities to be drawn from inventory exceed, equal and less than the actual quantities on hand. Each test case is designed with the intent of finding errors in the way the system will process it. There are two general strategies for testing software : (a) Code Testing : The analyst develops the cases to execute every instructions and path in the program. (b) Specification Testing : The analyst examines the program specifications and then, writes test data to determine, how the program operates under specific conditions. Regardless of which strategy the analyst follows, there are preferred practices to ensure that testing is useful. Test Plan The first step in system testing is to prepare a plan that will test all aspects of the system in a way that promotes its credibility among potential users. There are following psychology in testing : Programmers usually do a better job in unit testing because they are expected to document and report on the method and extent of their testing. Users are involved which means communication is improved between the user and the designer group. Programmers are involved when they become aware of user problems and expectations. The user also becomes more aware (and appreciative) and cooperative user for successful testing. A test plan entails the following activities : Prepare test plan Specify conditions for user acceptance toting Prepare test data for program testing Prepare test data for transactions path testing Plan user training Compile/assemble program Prepare job performance aids Prepare operational documents Prepare Test Plan: A workable test plan must be prepared in accordance with established design specifications. It include the following items : Out put expected from the system Criteria for evaluating outputs A value of test data Procedure for using test data

ODM COMPUTER &MGT. EDUCATION Personnel and training requirements

DOCUMENTATION AND ITS TOOLS The organised way of keeping records of all the documents, programs and diagrams prepared during all the phases of system development life cycle (SDLC) is called documentation. All types of written instructions, which are prepared during SDLC and are required for operating and maintaining the system, must be included in the documentation. Types of documentation (a ) Program Documentation : Before a program is developed, the system analyst should provide the programmer with the required documentations. The logic of programs is best described by a flowchart and sometimes decision tables are most appropriate for explaining. (b) Operation Documentation : For smooth running of the system, the console operator must have complete knowledge of the job. Providing the computer center with a set of instructions will not serve the purpose. The instructions must be in a form of readily accessible to the console operator and written in simple and understandable style. A well designed system may run for long time with little or no assistance from the system department. This can happen only when the system has been properly documented. (c) User Documentation : System users require proper documentation to prepare a developing system and smooth running of existing one. User requires two general types of information, complete details to handle each case of the system processes and overall picture of the system so that they can see their role in the total operations in the company. (d) Management Documentation : The documentation required by corporate management differs quite a lot from that required by users. The system designer must know the requirements of the management and provide documents to enable the managers to perform three functions : Evaluate progress on system development Monitor existing systems Understand the objectives and method of new and existing system. (e) System Documentation: Each phase in the system development cycle is accompanied by appropriate documentation. The system request , even if it is initially merit, verbally, eventually, must be written. It is desirable for a client and system analyst to work jointly in writing the request since each can contribute the knowledge the other does not have. During the life cycle of the completed system, the system itself must provide documentation of how well it is operating and consequently should be designed to yield data about itself as a normal bi-product. Documentation Tools

ODM COMPUTER &MGT. EDUCATION A system is required to meet the need of maintenance, reliability and testing. For this, well designed tools are needed. Following tools can be used to measure the affectivity of the system : (a) Structured Flow Chart : It is a graphical tool that forces the system designer to structure the software in modular as well as top-down form. The main advantage of using the structured chart is that it provides a proper structure that can be retained by the programmer for developing the application software. There are three basic elements that are used in developing flowcharts : Decision symbol : It symbolises alternative conditions that can occur. It may show actions for more than two alternatives at the same time. Process symbol : These are rectangular boxes that represents a simple process or steps in a program. The process symbol represents initialization of values, input and output operations and calls to execute other procedures. Iteration symbol : Looping and repetition of operations is represented by the iteration symbols. These represent looping while a certain condition exists. Each structured flowchart is ideally displayed on a single sheet of paper. (b) Hierarchical Input Process Output (HIPO) : It is a tool frequently used for developing system software. The major concept upon which this tool is based is the highly structured modular design. The structure of HIPO documentation is very much similar to an organisation chart. HIPO method was originally developed to provide documentation assistance for programmers. This type of structure allows the enforcement of major principles to HIPO, a top-to-bottom approach to design. They assist the analyst in answering three guiding questions : What does the system or module do? (asked while designing the system) How does it do it? (asked while reviewing the code for testing) What are the inputs and outputs? (asked while reviewing the code for testing) Visual Table of Contents (VTOC) : It shows the reaction between each of the documents making up HIPO package. It consists of a hierarchy chart that identifies the modules in a system by number and in relation to each other and give a brief description of each module. The modules are in increasing detail. Depending on the complexity of the system, three to five levels of modules are typical. (c) Functional Diagrams : There is one diagram for each box in the VTOC. Each diagram shows input and output (right to left or top to bottom), major processes, movement of data and control points. Traditional flow chart symbols represent media such as magnetic tape, magnetic disk, and printed output. A solid arrow shows control paths and open arrow identifies data flow. Contents : A functional diagram contains following : Order processing system (Main program) : Controls all processing. Involves program to handle data entry, monthly processing records and printing of reports. Transaction Entry Program : Controls all data entry and editing of stored data. Includes purchases, payments, and adjustment of function data.

ODM COMPUTER &MGT. EDUCATION Data Entry Module : Performs data entry and validation of input data for purchases, payments and credit or debit adjustments. Data edit Module : Performs retrieval and editing of previously stored transaction data for purchase, payments and credit or debit adjustments. Always changes to data or deletion of transaction record. Monthly Invoice Process program : Controls all invoices process steps using transaction data entered during month. Invoice preparation schedule: Prints invoices on preprinted statement forms. Must be done only after invoice data have been prepared by module. Invoice Register Module: Prints a detailed journal of invoice by number in ascending order. Must be done only after invoice data have been prepared by module. Report Preparation Program : Controls all reports printing for transaction, customer and account balance reports. Transaction Report Module : Prints a detailed list of all transactions entered during month in order of assigned transaction number. Customer Reprt Module : Prints listing of all customers and demographic information in alphabetical and account number order. Accounts Balance Report Module : Prints listing of all accounts with non-zero balance in decending order and includes ageing information.

(d) Warnier / Orr Diagram: These are powerful tools aimed at designed of program structures. The following basic steps are performed to design program structure : Identification of the output. Identification of processing results. Working backwards to determine the steps involved in the process. Working combination of input needed to produce the desired output.

How To Prepare Documentation Documentation can be prepared manually or by using computers. Manual methods are always time consuming and requires more manpower. Computer assist analyst in preparing documentation in many ways. During each phase of SDLC, analyst prepares documents and draw diagrams by using word processors graphics software and Case tools. All these documents, files and graphics are later set up into a single file before implementation phase for making each project report. The project reports are designed by using DTP software and laser printouts are taken. The projects reports are then printed, binded and presented in a book form. There are two designing : Top-down Designing : A design is said to be top-down , if it consist of a hierarchy of modules, with each module having a single entry and single exist subroutine. Top-down design is an incremental approach to the construction of program structure. Modules are integrated by moving downwards through the control hierarchy, beginning with the main control module. Module subordinate to the main control is incorporated into the structure in either a depth-first or breadth-first manner. The Top-down design integration process is performed in a series of four steps :

ODM COMPUTER &MGT. EDUCATION (a) The main control module is used as a design driver and stubs are substituted for all components directly subordinate to the main control module. (b) Depending on the top-down design integration approach selected, subordinate stubs are replaced one at a time with actual components. (c) Design are conducted as each components integrated. (d) On completion of each set of design, another stub is replaced with the real components. Bottom-up Design : Bottom-up designing, as its name implies, begun construction and testing with automatic modules (i.e. components at bottom level in program structure). Because components are integrated from the bottom up, processing required for components subordinate to given level is always available. A bottom-up integration strategy may be implemented with following steps : (a) Low level components are combined into clusters that perfoems as a specific software sub functions. (b) A driver is written to coordinate test case input and output. (c) The cluster is tasted. (d) Drivers are removed and clusters are combined moving upward in the program structure. CONVERSION METHODS There are four methods of handling system conversion. Each method should be considered in the light of opportunity. However, some situations dictate the use of one method over other method may be more beneficial. In general, system conversion should be accomplished as soon as possible. (a) Parallel System : The most secure method of converting old system to new system is run both system parallel. Under this approach, user continue to operate the old system in the accustomed manner but they also begun using the new system. This method is the safest conversion approach since it guarantees that, if problem like error in processing or inability to handle certain types of transactions arise in using the new system, the organisation still can fall back on old system without loss of time, service or revenue. Disadvantage : The disadvantages of parallel system are significant. (i) First of all the system cost double, since there are two sets of system costs. In some instances, it is necessary to hire temporary personnel to assist in operating both systems in parallel. (ii) Second, the fact that users know that they can fall back to the old ways can be a disadvantage, if there is a potential resistance to the changes or if user prefer the old system. In other words the new system may not get fair trial. (b) Direct Cutover : The direct cutover method converts from old to new system abruptly, sometimes over a weekend or even overnight. The old system is used until a planned conversion day when it is replaced by a new system. This was conversion method used by Indian Railways when they replace the CMCs IMPRESS with their Own CRIS developed system CONCERT. Disadvantage : The advantage of not having fall back may turn into disadvantage, if serious problem arises with new system. In some instances, organisation even stop

ODM COMPUTER &MGT. EDUCATION operations when problem arise so that difficulties can be corrected. Direct cutover requires careful planning. Training session must be scheduled and maintained. The installation of all equipment must be on time, with ample days allowed in in scheduled to correct any difficulties that occur. Site preparation must be complete before the conversion can be done. (c) Pilot approach : When new system also involve new techniques or drastic changes in organisation performance, the pilot approach is often preferred. In this method, working version of the system is implemented in one part of the organisation, such as a single work area or department. Thus users in this area typically know that they are piloting a new system and that changes can be made to improve the system. When the system is deemed complete, it is installed through out the organisation, either all at once (direct cutover method) or gradually (phase-in). this approach has the advantage of providing a sound ground before full implementation. However, if implementation is not properly handled, users may develop the impression that system continues to have problems and that it can not be relied on. (d) Phase-in Method : The phase-in method is used when it is not possible to install a new system through the organisation at once. The conversion of files, training of personnel, or arrival of equipments may force the staging of the implementation over a period of time, ranging from weeks to months. Some users will begin to take advantage of the new system before others. Conversion And Operational Plans After the system conversion is completed using any one of the methods, the conversion plans starts. In the conversion plan, all the activities that must occur to implement the new system are properly defined and put it into operation. It identifies the persons responsible for each activity and includes a time schedule for each activity. During the pre-implementation stages, when the conversion is being planned, analyst should prepare a list of all the tasks, including the following : List all files of conversion Identify all data require to build new files during conversion. List all new documents and procedures used during conversion. Identify all controls to be made during conversion. Assign responsibility for each task. Verify conversion schedules. Site Preparation A major aspect of conversion is the preparation of system site. Preparation activities include electrical and air-conditioning preparation, site layout and installation of equipment. It is most desirable to have the site preparation completed prior to the arrival of equipment, since vendors are not in favour of delivering the system, if the construction work is going on. File And Data Conversion

ODM COMPUTER &MGT. EDUCATION

Data and file preparation consumes a large portion of conversion time. Not only must the data be converted to a format acceptable in the new system, but analyst must ensure that this is due without loss of detail or accuracy. By using record counts, financial controls and cash totals, analyst are able to detect correct problem quickly, before they get out of control, even if the conversion involves data transmission. Unit-IV Marketing IS, Manufacturing IS, Accounting IS, Financial IS. MARKETING INFORMATION SYSTEM A marketing information system can be defined as a computer based system that works in conjunction with other functional information system to support the firms management in solving problem that relate to marketing the firm product. It is a system that meets the information need of an organisation in sales, distribution, advertising, market analysis, market intelligence, product research, service management, customer profile and other marketing functions. Data Sources The information used in marketing, decision arrived at from different data sources are from the following sources : Transaction Processing Data : These data shows the sales that results from specific mixes of four Ps. They provide feedback on the effectiveness of the past marketing strategies. They are also useful for apprising performance and controlling marketing expenditure. Marketing Research Data : Market researchers are responsible for collecting consumer related data that can be used to support marketing decision. Market Intelligence Data : It refers to information about the strategy of competition. The term intelligence is a carry over from the military, which uses the term to describe data gathered about enemy activities. Marketing intelligence information are collected in an unstructured or semi-structured manner through word of mouth interaction or through observing statistics available in media and commercial database services. External Environment Data : In marketing, success is largely attributable to what will happen in the future external environment. Strategic Plan The strategic plan is a really starting point of all marketing decisions. It contains the type of products that the firm plans to supply to the consumer market place. Marketing information system should provide following information : The optimal way to capture data at the point-of-sale. Information about smooth running of market operation and efficiency.

ODM COMPUTER &MGT. EDUCATION Goods and services that customer wants. Information about desire of customer service. The kind of services important to customers. Interest and willingness of consumers in information technology. Willingness of customer to pay for higher quality service. Impact of higher quality of service to customers on firms profit. How can customer be attracted and retained?

MANUFACTURING INFORMATION SYSTEM Manufacturing information system is a system that supports the manufacturing functions of purchasing, receiving, quality control, inventory management, material requirements planning, capacity planning, production scheduling and plant design. It applies to both manufacturing and service environments. The term manufacturing should be considered in terms of delivering both goods and services. Components of MIS Production : It is the process of making new products from raw materials. The production process consists of many interrelated activities such as job shop and job process. Production System : It is, a subset of manufacturing information system, directly associated with the production of goods and services. It specifically addresses information needs related to raw materials, equipment, manpower and other issues directly related to production of goods and services. Product Design : It is the starting point of manufacturing process. It is the step in whioch the design and technical specifications for the product are finalised. Increasingly product design and engineering are becoming more compturised through approaches such as computer-aided design, computer aided engineering and robotics. After a product is designed, the facility to manufacture must be planned. Manufacturing Process : All manufacturing processing are concerned with information processing, storage, collection and distribution are related in a way that optimizes performance of the entire enterprises. Manufacturing refers to manufacturing environments that redynamic and flexible enough to produce customized goods and services in varying quantities and switch the manufacturing process from one product to another. Characteristic : Manufacturing has following characteristic : The ability to thrive on constant change. Recognition by the organisation that people are its main assets. Incorporation of the virtual company idea through the use of telecommunication. A focus on creating products and services, which ensures that the final product is standard quality. Its function is concerned with detecting existing quality deficiencies, as well as with preventing finer product quality problems. Statistical Process Control : One of the quality control techniques that has helped in manufacturing operations is known as statistical process control. The objective of

ODM COMPUTER &MGT. EDUCATION SPC is to closely monitor production units at various stages of the production process, identifying potential problems before they result in defects and adjusting the production process accordingly through observations. Sources Information needed for manufacturing decisions step from a variety of data sources as follows : (a) Production Data : By using terminal around the production floor, data on production process can be quickly gathered and processed. These data are used for billing and in almost every aspects of production control. (b) Inventory Data : It includes inventory of raw materials, goods-in-process and finished goods. Accurate raw material data are especially important in a manufacturing situation because running out of certain items at critical times can shut down production lines, leaving workers idle. (c) Vendor data : It shows sources and prices for raw materials. Often, vendors data are maintained by the purchasing department, although sometimes the manufacturing area will personally buy certain items. (d) Personnel data : Personnel data shows various statistics on current manufacturing personnel often, in the course of production people switch assignments, so personnel skills must be received to fit the right person for the right job. (e) Union Data : Many types of labour union exist in industries that have strict regulation regarding such items as pay scale, hiring and firing, promotion and working conditions. (f) Labour Data : Raw material and people are at the core of manufacturing a product. While vendors are the source of raw materials, labour market is source of people. Data must be kept regarding where new personnel may be obtained as labour shortage occurs in the firm. (g) External Environment Data : To manufacturing managers, the most pressing information need in the area of external environment data is the outlook of raw materials price and labour availability. (h) Engineering Specification : These data indicates whether something can be built and how. It contains such facts as size of screws, whether a certain drill bit is suitable for wood metal, or how to build a sub assembly of a certain type and so on. (j) Internal Marketing Data : Marketing ends where manufacturing begins, so marketing output is manufacturing input. Marketing specifies the number of goods that must be produced in each time period in order to meet consumer demand. Marketing data are also useful to production personnel as part of the engineering design process. ACCOUNTING INFORMATION SYSTEM An accounting information system is the system of records a business keeps maintaining its accounting system. This includes the purchase, sales, and other financial process of business. The purpose of an AIS is to accumulate data provide decision makers (investors, creditors, managers) with information to make decision. While this was previously a paper based process, most modern businesses now use accounting software. Types There are three types of accounting information systems :

ODM COMPUTER &MGT. EDUCATION 1. Financial Accounting System : This system provides financial statements to investors, governmental authorities and other interested parties in accordance with their reporting formats. 2. Cost Accounting System : It provides reports to managers for cost planning and cost control of operations. 3. Management Accounting System : It provides reports to managers both for strategic and tactical decisions and on profitability of the firm. Type of Accounting Books The major types of accounting books used in accounting information system are as under : (a) Voucher : A transaction is recorded by debiting and crediting the two affected accounts, called a voucher. (b) Journal : It is an account book in which all the transactions are recorded in chronological order. It is maintained only in manual system by entering information from vouchers and is not required in computerized system. (c) General Ledger : All the accounts are recorded and maintained individually in a book called general ledger. In manual system of accounting, the ledger is prepared by entering information from Journal by a process called posting. (d) Cash Book : Cash book is a special type of ledger in which all cash transactions are recorded and maintained. (e) Bank Book : It is another type of ledger in which only bank transactions are recorded and maintained. (f) Sales Book : The credit sales of goods are recorded in a special book called sales book. (g) Purchase Book : The purchase of goods on credit basis are recorded in another special book called purchase book. (h) Debitors Ledger : The transaction of all debitors are recorded maintained in debitors ledger. (j) Creditors Ledger : The transactions of all creditors are recorded and maintained in this book. Major Financial Statements After preparation of all above accounts , the final statements of accounts are generated periodically monthly or yearly. The major financial statements are as follows : (i) rial Balance : It is a financial statement prepared monthly, quarterly or annually to find out the balance of each accounts. In a trial balance, all debitors are shown on one side, while creditors are shown on other side. The total of debit balance must match the total of the credit balance. (ii) Trading Accounts : It is a financial statement prepared yearly to find out the gross profit and loss of the firm

ODM COMPUTER &MGT. EDUCATION (iii) Profit and Loss Accounts : After preparation of trading account, a financial statement called Profit and Loss account is generated to find out net profit or loss of the firm. (iv) Balance Sheet : The balance sheet is the most important financial statement of the company that reflects its position of assets and liabilities on a particular date. (v) Accounts Receivable Statement : This statements lists the name of debitors and the amounts to be received by the company. (vi) Account Payable Statement : This statement lists the name of the creditors and the amount to be paid by the company. FINANCIAL INFORMATION SYSTEM Financial Accounting System provides financial statements to investors, governmental authorities and other interested parties in accordance with their reporting formats. Role And Advantage of Computers in Financial Information System Accounting is mainly concerned with the collecting, recording and evaluation of financial data and then communicate this information to the management and other concerned. Generally accounting information system is of three types : 1. Financial Accounting System : This system provides financial statements to investors, governmental authorities and other interested parties in accordance with their reporting formats. 2. Cost Accounting System : It provides reports to managers for cost planning and cost control of operations. 3. Management Accounting System : It provides reports to managers both for strategic and tactical decisions and on profitability of the firm. Many types of account books and financial statements can be generated by a financial accounting system. In manual system of accounting, maintaining of account books in a prescribed manner is called book-keeping, while preparing of financial statements based on the accounts book is called financial accounting. In computerized system financial accounting generate both account books and financial statements. 4. 5. Generating Profit & Loss account and balance sheet. Generating updated financial data for other systems. Various inputs are : Cash vouchers Bank vouchers sales vouchers or bills to customer Purchase vouchers or bills from vendors Journal vouchers

Various output are : Accounts Books Trial Balance

ODM COMPUTER &MGT. EDUCATION Trading Account P & l accounts Balance Sheet Account Receivable Statements Accounts Payable Statements

ODM COMPUTER &MGT. EDUCATION

MBA (HR) SEMESTER - III

DECISION SUPPORT SYSTEM & MANAGEMENT INFORMATION SYSTEM

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