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ENGINEERING(ISE)
LECTURES NOTES BY
Recommended Books:
Charles Parker and Thomas Case,” Management Information Systems”, Latest Edition.
An organized approach to the study of the information needs of an organization’s management at every
level in making operational, tactical and strategic decisions. Its objective is to design and implement
procedures and routines that provides suitable detailed reports in an accurate, consistent and timely
manner.
In a management information system, modern computerized systems continuously gather relevant data
both from inside and outside an organization. This data is then processed , integrated and stored in a
centralized database (or data ware house ) where it is constantly updated and made available to all who
have authority to access it, in a form that suits their purpose.
LECTURE # 01
Today, all computer-based systems that collect, process, store and communicate that data as information
are commonly defined as management information systems, or MIS.
Historical Development of Management information system: Five Eras
First era: Mainframe and minicomputer computing
Second era: Personal computers
Third era: Client/server networks
Fourth era: Enterprise computing
Fifth era: Cloud computing
LECTURE # 01
First Era
The first era pre-1965 was the period of huge mainframe computers that were housed in special
temperature-controlled rooms and required computer technicians to operate.
IBM was the one-stop supplier of hardware and software.
Computer time-sharing was common due to the enormous cost of owning and operating mainframes.
As computer technology advanced and computers shrank in size, companies could afford
minicomputers, still enormously expensive by today's standard but sufficiently affordable for large
companies to own and do their own in-house computing.
Second Era
The second era of personal computers started in 1965 with the introduction of the microprocessor.
By the 1980s it was in full bloom with the proliferation of the low-cost Apple I and II and the IBM
personal computer, or PC.
The introduction of VisiCalc spreadsheet software empowered ordinary employees with the ability to do
tasks that companies paid huge sums to do 10 years earlier.
LECTURE # 01
Third Era
As computing power and autonomy devolved to ordinary employees in the 1980s, a simultaneous
need arose to share computer information with other employees within the business enterprise
This need advanced the transition to the third era MIS client/server networks. Employees at all
levels of the organization could share information in a variety of formats through computer
terminals linked to computer servers over common networks called intranets.
Fourth Era
The fourth era, enterprise computing, consolidated disparate single-application software applications
used by different departments onto one integrated enterprise platform that was accessed over high-
speed networks.
Enterprise software solutions integrate essential business operations -- marketing and sales, accounting,
finance, human resources, inventory and manufacturing -- to harmonize work and facilitate cooperation
across the entire enterprise.
Although the application modules used and information accessed differ by departments and levels of
authority, enterprise computing allows a 360-degree view of the entire business operation.
LECTURE # 01
Fifth Era
The exponential growth in Internet bandwidth consumption is ushering in the fifth era of MIS, cloud
computing.
According to Cisco Systems, worldwide Internet traffic is expected to reach 2 zettabytes annually by
2019.
For context, one zettabyte equals 1,000 exabytes, and one exabyte equals 1 billion gigabytes. Cloud
computing unchains everybody from office-bound PCs, allowing access to enterprise MIS from anywhere
with mobile devices.
The fifth era is also the time of the knowledge worker's ascendancy. As decision-making pushes to the
lowest levels of organizations, MIS is expected to increasingly empower workers not only as producers of
information but also as consumers of the same information.
In effect, knowledge workers, as producers and consumers of MIS information, will determine precisely
what information MIS generates.
LECTURE # 01
Objectives
Specific result that a person or organization want to achieve within time frame and available resources.
Series of smaller steps often along way to achieving a long term goal.
M= measureable
A=attainable
R=realistic
T=timed
Examples: - Goals:
I want to the best student of our faculty.
I want to be multimillionaire
Examples: - Objectives:
I would like to obtain 90% results of my course, next year.
Management information system (MIS) is a planned system of collecting, storing and disseminating
data in form of information needed to carryout the functions of management .
Elements of MIS
GROUP MEMBERS
LECTURE # 02
Management
Management is a set of principles relating to the functions of planning, organizing, directing and
controlling to achieve an organization’s goals and objectives.
Planning
Organizing
Directing
Management
Controlling
Information
System
System is orderly grouping of components that are arranged to achieve a goal or objective
People – these are the users who use the information system to record the day to day business
transactions. The users are usually qualified professionals such as accountants, human resource
managers etc. The ICT department usually has the support staff who ensure that the system is running
properly.
Business Procedures – these are agreed upon best practices that guide the users and all other
components on how to work efficiently.
Business procedures are developed by the people i.e. users, consultants etc.
LECTURE # 01
Data – the recorded day to day business transactions. For a bank, data is collected from activities such
as deposits, withdrawals etc.
Hardware – hardware is made up of the computers, printers, networking devices, etc. The hardware
provides the computing power for processing data. It also provides networking and printing capabilities.
The hardware speeds up the processing of data into information.
Software – these are programs that run on the hardware. The software is broken down into two major
categories namely system software and applications software. System software refers to the operating
system i.e. Windows, Mac OS, and Ubuntu etc. Applications software refers to specialized software for
accomplishing business tasks such as Payroll program, Banking system, point of sale system, etc.
Functions of MIS
Improves decision making
MIS helps management by providing background information on various
issues and helps to improve the decision making quality of management
Improve efficiency
MIS helps managers to conduct their tasks with greater ease and with greater
efficiency . This ultimately reflects in productivity of an organization.
Provide connectivity
MIS provides better connectivity with rest of the organization
Systematic approach:
MIS follows the system approach, which implies a step by step approach to the
study of system and its performance in the light of the objective for which it has
been constituted. It means taking an inclusive view at sub-systems to operate
within an organization.
Management-oriented:
The management-oriented characteristic of MIS implies that top-down approach
needs to be followed for designing MIS. A top-down method says the initiation of
system development determines management requirements as well as business
goals. MIS implies the management dynamically to the system development
towards the completion of management decision.
As per requirements:
The design and development of MIS should be as per the information required
by the managers. The required design and development information is at
different levels, viz., strategic planning, management control and operational
control. It means MIS should cater to the specific needs of managers in the
hierarchy of an organization.
Future-oriented:
The design and development of MIS should also be future purpose so that the
system is not restricted to provide only the past information.
Long-term planning:
MIS should always develop as a long term planning because it involves logical planning to get
success of an organization. While developing MIS, the analyst should keep future oriented
analysis and needs of the company in mind.
Central database:
it contains data in tabular form. The data base is responsible to operations like insertion,
deletion, updating of records. This database covers information related to I nventory, personnel,
vendors, customers, etc. the data stored in the database.
LECTURE # 01
Quality of service
Reduces the time to provide the information
due to high powered hardware and software components
Transparency – same information is available to at levels of managers e.g. Top level to low level.
Efficiency –information is available all the time , increases efficiency.
Decision making- due to availability of information decision making becomes fast without any
delays. E.g. . Inventory manager can place orders easily without discussing with sales managers.
LECTURE # 01
Quality of service
Reduces the time to provide the information
due to high powered hardware and software components
Transparency – same information is available to at levels of managers e.g. Top level to low level.
Efficiency –information is available all the time , increases efficiency.
Decision making- due to availability of information decision making becomes fast without any
delays. E.g. . Inventory manager can place orders easily without discussing with sales managers.
The competitiveness of most companies is in a large degree based on
the effective use of information technologies and information systems
especially. The main purpose of information systems are provide the
right information to the right people at the right time. It is used to
track, store, manipulate and distribute the information from gathered
data to appropriate persons when necessary.
ADVANTAGES OF INFORMATION SYSTEM
Example 2: The number of visitors to a website by country is an example of data. Finding out that traffic
from the U.S. is increasing while that from Australia is decreasing is meaningful information.
Data are simply facts or figures — bits of information, but not
information itself.
When data are processed, interpreted, organized, structured or
presented so as to make them meaningful or useful, they are
called information. Information provides context for data.
For example: a list of dates — data — is meaningless without the
information that makes the dates relevant (dates of holiday).
Knowledge:
Refers to useful information gained through learning and experience.
Knowledge means the familiarity and awareness of a person, place,
events, ideas, issues, ways of doing things or anything else, which is
gathered through learning, perceiving or discovering.
Process: set of logically related tasks perfumed to achieve a defined
outcome, or simply turning data into information.
Examples of business processes include receiving orders, invoicing,
shipping products, updating employee information, or setting a
marketing budget.
Example : suppose we want to figure out the salary of an employee
Data : EmpNo SW/27 , No. of hours worked -150hr
Rule : 300 PKR / Hour
Formula/ Regulation : No. of hour worked X 300
Salary = 150x300
Information – salary of the employee is 45000/= whose employee no is
SW/27.
Characteristics of Information
Availability/accessibility
Information should be easy to obtain or access. Information kept in a book of some kind is only available
and easy to access if you have the book to hand. A good example of availability is a telephone directory, as
every home has one for its local area.
It is probably the first place you look for a local number.
For business premises, say for a hotel in London, you would probably use the Internet.
An other example : Businesses used to keep customer details on a card-index system at the customer’s
branch. If the customer visited a different branch a telephone call would be needed to check details. Now,
with centralized computer systems, businesses like banks and building societies can access any customer’s
data from any branch.
Accuracy
Information needs to be accurate enough for the use to which it is going to be put.
Accuracy is important; as an example, if government statistics based on the last census wrongly show an increase
in births within an area, plans may be made to build schools and construction companies may invest in new
housing developments. In these cases any investment may not be recouped.
Information should be accurate. It means that information should be free from mistakes, errors &, clear.
Wrong information given to management would result in wrong decisions. As managers decisions are based on
the information supplied in MIS reports, all managers need accurate information.
Timeliness : Timeliness means that information must reach the recipients within the prescribed timeframes.
For effective decision-making, information must reach the decision-maker at the right time, i.e. recipients must
get information when they need it.
Delays destroys the value of information. The characteristic of timeliness, to be effective, should also include up-
to-date, i.e. current information.
Relevance
Information is said to be relevant if it answers especially for the recipient what, why, where, when, who and
why?
Information should be relevant to the purpose for which it is required.
What is relevant for one manager may not be relevant for another.
The user will become frustrated if information contains data irrelevant to the task in hand.
For example, a market research company may give information on users’ perceptions of the quality of a
product.
This is not relevant for the manager who wants to know opinions on relative prices of the product and its
rivals.
The information gained would not be relevant to the purpose.
In other words, the MIS should serve reports to managers which is useful and the information helps them
to make decisions.
Completeness : The information which is given to a manager must be
complete( required details ) and should meet all his needs. Incomplete
information may result in wrong decisions and thus may prove costly to
the organization.
Ideally all the information needed for a particular decision should be
available.
Example : making a pricing decision manager must have complete
details about its pricing e.g.. Manufacturing cost, assembling cost
servicing cost, maintenance cost etc
Presentation
The presentation of information is important to the user.
Information can be more easily assimilated if it is aesthetically
pleasing.
For example, a marketing report that includes graphs of statistics will
be more concise as well as more aesthetically pleasing to the users
within the organization.
Many organizations use presentation software and show summary
information via a data projector. These presentations have usually been
well thought out to be visually attractive and to convey the correct
amount of detail.
Advantages and disadvantages of information systems
Information technology falls under the IS umbrella but deals with the
technology involved in the systems themselves.
Information technology can be defined as the study, design,
implementation, support or management of computer-based
information systems.
IT typically includes hardware, software, databases and networks.
Information technology often governs the acquisition, processing,
storage and dissemination of digitized information, or data, generated
through the disciplines of computing and telecommunications.
Information technology focuses on managing technology and improving
its utilization to advance the overall business goals.
The Changing Face of Business Environment
Introduction
The last decade has shown rapid development in the information
technology and its application.
This has helped changed the way we look at the world as well as the
way business is conducted.
Both business and trade have gained under the wave of information
technology with improvement in efficiency and productivity.
Productivity improvement has facilitated speedy and accurate
production in large volumes.
The Changing Face of Business Environment
Since, in this phase the code is produced so it is the main focus for
the developer.
During this phase all types of functional testing like unit testing,
integration testing, system testing, acceptance testing are done as
well as non-functional testing are also done.
Deployment:
As soon as the product is given to the customers they will first do the beta
testing.
If any changes are required or if any bugs are caught, then they will report
it to the engineering team.
Once those changes are made or the bugs are fixed then the final
deployment will happen.
Maintenance:
Once when the customers starts using the developed system then the actual
problems comes up and needs to be solved from time to time.
This is the process where the care is taken for the developed product is known as
maintenance.
Types of Software development life cycles (SDLC)
Waterfall Model
V-Shaped Model
Evolutionary Prototyping Model
Spiral Method
Iterative and Incremental Model
Agile development Model
You can think of SDLC models as tools that you can use to better deliver
your software project
Waterfall Model
Advantages
Reduced time and costs, but this can be a disadvantage if the developer
loses time in developing the prototypes.
Improved and increased user involvement.
Disadvantages
Insufficient analysis-user confusion of prototype.
Developer misunderstanding of user objectives.
Excessive development time of the prototype.
It is costly to implement the prototypes.
Spiral Model
It can be used with any type of the project, but it needs more
engagement from the customer and to be interactive. Also, we can use it
when the customer needs to have some functional requirement ready in
less than three weeks and the requirements are not clear enough. This
will enable more valuable and workable piece for software early which
also increase the customer satisfaction.
Advantages
SSADM revolves around the use of three key techniques, namely Logical Data Modeling, Data Flow
Modeling and Entity/Event Modeling.
Logical Data Modeling -- this is the process of identifying, modeling and documenting the data
requirements of a system. A Logical Data Model consists of a Logical Data Structure (LDS - also known as
an Entity-Relationship Model) and the associated documentation. LDS represents Entities (things about
which a business needs to record information, and usually proper nouns) and Relationships (links between
entities).
Data Flow Modeling -- this is the process of modeling and documenting how data flows around a system.
A Data Flow Model consists of a set of connected Data Flow Diagrams (DFDs) supported by appropriate
documentation. Data Flow Diagrams represent processes and functions of the system (activities that
transform data from one form to another), data stores (files or data storage), external entities (things that
send data into a system or receive data from a system) and finally data flows (show the flow of data around
the system).
Entity Event Modeling -- the process of identifying, modeling and documenting the business events that
affect each entity and the sequence in which these events occur.
Each of these three system models provides a different viewpoint of the same system, and each viewpoint is
required to form a complete model of the system being designed. The three techniques are cross-referenced
against each other to ensure the completeness and accuracy of the whole application.
SSADM Modules/Phases
SSADM application development projects are divided into five modules/phases that
are further broken down into a hierarchy of stages, steps and tasks:
Feasibility Study-- the business area is analyzed to determine whether a system
can cost effectively support the business requirements.
When a feasibility study is carried out, there are four main areas of consideration:
Technical – is the project technically possible?
Financial – can the business afford to carry out the project?
Organizational – will the new system be compatible with existing practices?
Ethical – is the impact of the new system socially acceptable?
Requirements Analysis-- the requirements of the system to be developed are
identified and the current business environment is modeled in terms of the
processes carried out and the data structures involved.
Requirements Specification-- detailed functional and non-functional
requirements are clearly identified and stated.
Logical System Specification-- technical systems options are
produced and the logical design of update and enquiry processing and
system dialogues.
Physical Design -- a physical database design and a set of program
specifications are created using the logical system specification and
technical system specification.
Unlike rapid application development, which conducts steps in parallel,
SSADM builds each step on the work that was prescribed in the
previous step with no deviation from the model. Because of the rigid
structure of the methodology, SSADM is praised for its control over
projects and its ability to develop better quality systems.
Structured Systems Analysis and Design Tools
During Structured Analysis, various tools and techniques are used for
system development.
They are:
Data Flow Diagrams
Data Dictionary
Decision Trees
Decision Tables
Structured English
Pseudocode
Data Flow Diagrams (DFD) or Bubble Chart
DFD is easy to understand and quite effective when the required design
is not clear and the user want a notational language for communication.
However, it requires a large number of iterations for obtaining the
most accurate and complete solution.
-
+
Context Diagram
It starts with mentioning major processes with little details and then
goes onto giving more details of the processes with the top-down
approach.
The context diagram of mess management is shown below
Data Dictionary
Use the following guidelines for selecting the most appropriate tool that
would suit your requirements −
Use DFD at high or low level analysis for providing good system
documentations.
Use data dictionary to simplify the structure for meeting the data
requirement of the system.
Use structured English if there are many loops and actions are complex.
Use decision tables when there are a large number of conditions to check and
logic is complex.
Use decision trees when sequencing of conditions is important and if there
are few conditions to be tested.
System Development Principles and Methodologies: PIECES Framework
(Wetherbe's PIECES framework )
Profits
New markets can be explored
Current marketing can be improved
E.g..
what are the areas of the system where costs must be reduced?
how much should costs be reduced or profits be increased?
what are the budgetary limits?
what is the timetable for development?
Control (and Security)
Too little security or control
Input data is not adequately edited
Crimes (e.g. fraud, embezzlement) are (or can be) committed against the data
Ethics are breached on data or information – refers to data or information getting to
unauthorized people
Redundantly stored data is inconsistent in different files or databases
Data privacy regulations or guidelines are being (or can be) violated
Processing errors are occurring (either by people, machines, or software)
Decision- making errors are occurring
A typical DBMS has users with different rights and permissions who use it
for different purposes. Some users retrieve data and some back it up. The
users of a DBMS can be broadly categorized as follows −
Administrators − Administrators maintain the DBMS and are
responsible for administrating the database. They are responsible to look
after its usage and by whom it should be used. They create access profiles
for users and apply limitations to maintain isolation and force security.
Designers − Designers are the group of people who actually work on
the designing part of the database. They keep a close watch on what
data should be kept and in what format. They identify and design the
whole set of entities, relations, constraints, and views.
End Users − End users are those who actually reap the benefits of
having a DBMS. End users can range from simple viewers who pay
attention to the logs or market rates to sophisticated users such as
business analysts.
DBMS - Architecture
Cloud Computing
Cloud Computing can be defined as delivering computing power( CPU,
RAM, Network Speeds, Storage OS software) a service over a network
(usually on the internet) rather than physically having the computing
resources at the customer location.
Example: AWS, Azure, Google Cloud
Other Definitions
Infrastructure as a Service (IaaS). IaaS provides users access to raw computing resources such as processing
power, data storage capacity, and networking, in the context of a secure data center.
IaaS(Infrastructure as a service) is a complete package for computing. For small scale businesses who are
looking for cutting cost on IT infrastructure, IaaS is one of the solutions. Annually a lot of money is spent in
maintenance and buying new components like hard-drives, network connections, external storage device etc.
which a business owner could have saved for other expenses by using IaaS.
Platform as a Service (PaaS). Geared toward software development teams, PaaS offerings provide computing
and storage infrastructure and also a development platform layer, with components such as web servers, database
management systems, and software development kits (SDKs) for various programming languages.
PaaS environments are equipped with software development technologies, such as .NET, Python, Ruby on Rails,
and Java. Currently, PaaS is the smallest part of the Cloud Computing market, and has been used by businesses
wanting to outsource part of their infrastructure.
Software as a Service (SaaS). SaaS providers offer application-level services tailored to a wide variety of
business needs, through internet this service is available to users anywhere in the world.
This part of the Cloud is the largest and most developed. It is a program, or a suite of applications, available
within the Cloud, rather than a computer’s hard drive, such as customer relationship management (CRM),
marketing automation, or business analytics.
Deployment Models
1) Agility
The cloud works in the distributed computing environment. It shares resources among
users and works very fast.
2) High availability and reliability
Availability of servers is high and more reliable, because chances of infrastructure
failure are minimal.
3) High Scalability
Means "on-demand" provisioning of resources on a large scale, without having
engineers for peak loads.
4) Multi-Sharing
With the help of cloud computing, multiple users and applications can work more
efficiently with cost reductions by sharing common infrastructure.
5) Device and Location Independence
Cloud computing enables the users to access systems using a web browser regardless of their location
or what device they use e.g. PC, mobile phone etc. As infrastructure is off-site (typically provided by a
third-party) and accessed via the Internet, users can connect from anywhere.
6) Maintenance
Maintenance of cloud computing applications is easier, since they do not need to be installed on each
user's computer and can be accessed from different places. So, it reduces the cost also.
7) Low Cost
By using cloud computing, the cost will be reduced because to take the services of cloud computing, IT
company need not to set its own infrastructure and pay-as-per usage of resources.
8) Services in pay-per-use mode
Application Programming Interfaces (APIs) are provided to the users so that they can access services
on the cloud by using these APIs and pay the charges as per the usage of services.
Transaction Processing System
Batch processing
Batch processing is execution of a series of programs (jobs) on a computer
without manual intervention. Several transactions, called a batch are
collected and processed at the same time. The results of each transaction are
not immediately available when the transaction is being entered; there is a
time delay.
Real-time processing
Real time systems attempt to guarantee an appropriate response to a request
quick enough.
Each transaction in real-time processing is unique; it is not part of a group of
transactions.
Performance
Fast performance with a rapid response time is critical.
Transaction processing systems are usually measured by the number of transactions they
can process in a given period of time.
Continuous availability
The system must be available during the time period when the users are entering
transactions. Many organizations rely heavily on their TPS; a breakdown will disrupt
operations or even stop the business.
Data integrity
The system must be able to handle hardware or software problems without corrupting data.
Multiple users must be protected from attempting to change the same piece of data at the
same time, for example two operators cannot sell the same seat on an airplane.
Ease of use
Often users of transaction processing systems are casual users. The
system should be simple for them to understand, protect them from
data-entry errors as much as possible, and allow them to easily correct
their errors.
Modular growth
The system should be capable of growth at incremental costs, rather
than requiring a complete replacement. It should be possible to add,
replace, or update hardware and software components without shutting
down the system.
Databases for transaction processing
A database is an organized collection of data. Databases offer fast retrieval times for
non-structured requests as in a typical transaction processing application.
Databases for transaction processing may be constructed using hierarchical,
network, or relational structures.
Hierarchical structure: organizes data in a series of levels. Its top-to-bottom-like
structure consists of nodes and branches; each child node has branches and is only
linked to one higher level parent node.
Network structure: network structures also organizes data using nodes and
branches. But, unlike hierarchical, each child node can be linked to multiple, higher
parent nodes.
Relational structure: a relational database organizes its data in a series of related
tables. This gives flexibility as relationships between the tables are built.
Database Models
Pay roll
A payroll system is software designed to organize all the tasks of
employee payment and the filing of employee taxes.
This includes keeping track of hours, calculating wages, withholding
taxes and other deductions, printing and delivering checks and paying
employment taxes to the government.
Example : Federal Income Tax –FBR in Pakistan
Order entry
The order entry system is transaction processing subsystem that
processes customer orders.
Orders may come from variety of sources –perhaps by mail, phone, and
fax-from customers who are ordering on demand
Example : Online Shopping (Websites)
Inventory: (order tracking, invoicing and reporting )
The quantity of product that a merchandising has available to sell at any
given time is called inventory.
An inventory system monitors the quantity of each product available for
sale and helps ensure that proper stock levels are maintained.
General ledger
The general ledger (G/L) system integrates transaction data from the
other major transaction processing subsystems-payroll, order entry,
inventory, accounts receivable, accounts payable, and so on.
Besides insuring that the records of the firm balance, the general ledger
system is used for budget planning , responsibility reporting , cost
allocation and profitability accounting.
Home Work
Accounts receivable, Accounts payable and so on(some other
subsystems of TPS).
Decision support system