definitions of group

Upload: priyankaajmani

Post on 30-May-2018

214 views

Category:

Documents


0 download

TRANSCRIPT

  • 8/14/2019 Definitions of Group

    1/47

    Data Flow DiagramsA data flow diagram is the next level of detail in a context diagram. It will show anumber of processes, inputs, outputs and storage. Note: A context diagram willnot have storage. Only a DFD. The DFD focus is the data flow between the

    processes within a system. A DFD can become as detailed as the user requires.Remember that a context diagram is a level 0 DFD. The DFD will becomeincreasingly detailed as the level increases. However each level will tend tofocus on extending one or more of the processes rather than the entire system.The IPT course will only use level 0 (context diagram) DFD and a level 1 DFD.

    The first level DFD shows the main processes within the system. Each of these processes can bebroken into further processes until you reach pseudocode.

    Data Modelling

    Data modelling is the process of identifying entities, the relationship between those entities andtheir attributes. There are a range of tools used to achieve this such as data dictionaries,decisiontrees,decision tables, schematic diagrams and the process of normalisation.

    Data Dictionaries

    A data dictionary is a comprehensive description of each field in a database set out in a table. Adata dictionary would normally include a field name, data type, field size and a description of eachfield.

    Data Dictionary

    A data dictionary is a table with the details of all the fields about a single entity in a relationaldatabase or the entire database if it is a flat file database. Below is an example of a datadictionary.

    Data Dictionary

    The end result of the requirement analysis phase is a set of DFDs, some SOPs (standardoperating procedures), completed questionnaires, notes on interviews, system flowcharts etc.The next step is to compile this diverse information into an easily understandable way. It isnecessary to clearly define each and every property or data structure or data flow of the system.

    The data dictionary is used to define the system clearly and precisely. A data dictionary is (likeany other dictionary) a compilation of all the terms, words, data stores, data flows etc. used in thesystem. Each term is defined clearly and all the terms are listed alphabetically.

    It is, however, not enough to only list and define all the terms, data stores, process and datastructures. They have to be defined in a special way. All the terms in the data dictionary must beself-defining and partitioned into component parts. Let us take an example to illustrate what wemean.

    http://www.bettscomputers.com/datamodelling.htmhttp://bettscomputers.com/moodle/course/view.php?id=26#datadictionarieshttp://bettscomputers.com/moodle/course/view.php?id=26#decisiontreeshttp://bettscomputers.com/moodle/course/view.php?id=26#decisiontreeshttp://bettscomputers.com/moodle/course/view.php?id=26#decisiontreeshttp://bettscomputers.com/moodle/course/view.php?id=26#decisiontreeshttp://bettscomputers.com/moodle/course/view.php?id=26#decisiontableshttp://www.bettscomputers.com/datamodelling.htmhttp://bettscomputers.com/moodle/course/view.php?id=26#datadictionarieshttp://bettscomputers.com/moodle/course/view.php?id=26#decisiontreeshttp://bettscomputers.com/moodle/course/view.php?id=26#decisiontreeshttp://bettscomputers.com/moodle/course/view.php?id=26#decisiontables
  • 8/14/2019 Definitions of Group

    2/47

    Consider the following DFD that shows the calculation of gross pay. The inputs to the process"Calculate overtime pay" are the overtime rate and the regular pay. The output from the processis gross pay. As we can see, both terms overtime pay and regular pay need to be explainedfurther. They are not self defining. The term overtime rate, however, is self-defining. So how dowe build the data dictionary for these terms?

    We can define

    Regular pay = regular hours worked x hourly rate

    Overtime pay = overtime hours worked x overtime rate

    However, all the terms are still not self-defining. We have to further define as follows: -

    Overtime hours worked = total hours worked 40

    Regular hours worked = Total hours worked overtime hours worked

    At this point, the individual terms become self-defining and all four terms are included in the datadictionary. This is the top-down partitioning approach for developing the data dictionary. Acomplex concept like gross pay is first broken down into component parts. Then some of thosecomponent parts are further broken down into the lowest level and then defined.

    We have said that it is necessary to clearly define each and every property or data structure ordata flow of the system. Why is that necessary? Surely, a DFD together with the notes andflowcharts should be enough. Why is it necessary to clearly define everything?

    The answer is quite simple. It is necessary to clearly define individual data stores in the systembecause the same thing should mean the same to each and every person on the project team.

    For example, if you have used the term "invoice", then it could mean the bill sent by you to thecustomer or the bill received by you from the customer. Which one is it? So, it is necessary todefine each term precisely. The data dictionary provides the project team with a standardterminology.

    Secondly, we have seen that a DFD represents the logical design of the system. A DFD does notdefine the steps to be followed within each lowest-level process or does not define the contents ofeach data store. These details have also to be defined without any ambiguity.

  • 8/14/2019 Definitions of Group

    3/47

    Thirdly, the data dictionary can provide an analyst with different types of listing e.g. alphabeticallisting or cross-reference listings. Alphabetical listings are important to ensure that there is noduplication in the data dictionary while cross reference listings are important because theyindicate the links between the DFD, data store, transform and data element. These links are veryuseful in case any changes have to be made because we can see the components that will bechanged because of making one change. This is one of the most important benefits of the datadictionary because it is very difficult manually to assess the impact of a single change in a singledata item. Whenever there is any change and there are hundreds of changes during the analysisphase, an analyst needs answers to questions like where is this data item used? What else willbe affected if I change this data item? With the cross-reference or where used/how usedinformation (explained later in this session), an analyst can get these answers and thendetermine the impact of the change.

    As you can appreciate, for a systems analyst to manually ensure that each and every data item ordata store is defines and to ensure that there is no duplication is a very difficult and sizable task.Here again, CASE tools help the analyst in organizing the data dictionary and keeping it up-to-date and precise.

    Transaction Processing System

    EFTPOS terminals and ATMs are examples of transactionprocessing systems (TPS) which store the daily transactions

    of an organisation. The word transactions refers to money.

    Money may be in the form of cash or card.

    Decision Support Systems

    Decision Support Systems are created to help people make decisions by providing access toinformation and analysis tools. many stockbrokers now use programs that will automatically put inrequests to sell shares once they reach a certain price (either high or low). A DSS creates amathematical model of the system which helps decison making about actions affecting a personorganisation. Another example of a decision support system is the simple analysis tools thatbanks use to help formulate loans for prospective customers. A DSS allows the users to posewhat-if questions and by changing a number of variables and then find out what the outcomeswould be. In the home loan DSS customers can analyse how paying off more each pay wouldaffect their loans, how a different type of loan may make it easier to make ends meet and by sodoing tailor the loan to suit the customer.

    A DSS depends upon the accuracy of the maths involved in creating the model and the ability ofthe user to accurately interpret the resulting data.

    Management Information Systems

    Management Information Systems provide information to managers of anorganisation. This relates to reports, statistics, stock inventories, payroll details,budgets or any other details that assist managers with running an organisation.

  • 8/14/2019 Definitions of Group

    4/47

    An EIS, executive Information System is a form of MIS designed for uppermanagement and provides information which might help them make decisionsona strategic level about future directions or issues concerning managers.

    MIS and EIS are really specialist examples of Decision Support Systems (DSS)

    3. Strategic Information Systems Planning Methodologies

    The task of strategic information systems planning is difficult and often timeorganizations

    do not know how to do it. Strategic information systems planning is a major change for

    organizations, from planning for information systems based on users demands to thosebased on

    business strategy. Also strategic information systems planning changes the planning

    characteristicsin major ways. For example, the time horizon for planning changes from 1 year to 3 years

    or more

    and development plans are driven by current and future business needs rather than

    incremental userneeds. Increase in the time horizon is a factor which results in poor response from the top

    management to the strategic information systems planning process as it is difficult to hold

    theirattention for such a long period. Other questions associated with strategic information

    systems

    planning are related to the scope of the planning study, the focus of the planning exercise

    - corporateorganization vs. strategic business unit, number of studies and their sequence, choosing a

    strategic

    information systems planning methodology or developing one if none is suitable, targetsof planning

    process and deliverables. Because of the complexity of the strategic information systems

    planningprocess and uniqueness of each organization, there is no one best way to tackle it. Vitale,

    et al.

    (1986) classify SISP methodologies into two categories: impactand alignment. Impact

    methodologies help create and justify new uses of IT

    1. Value Chain Analysis: The concept of value chain is considered at length by Michael

    Porter

    (1984). According to him, every firm is a collection of activities that are performed to

    design,produce, market, deliver, and support its product. All these activities can be represented

    using a

  • 8/14/2019 Definitions of Group

    5/47

  • 8/14/2019 Definitions of Group

    6/47

    problems and opportunities anddevelop appropriate and feasible

    solutions.

    Analyzing a problem and formulatinga solution involves the followinginterrelated activities:

    o Recognize and define a problem oropportunity using systems thinking

    o Develop and evaluate alternative system

    solutionso Select the system solution that best meets

    your requirementso Design the selected system solutiono Implement and evaluate the success of the

    designed system

    10- 6

    What is SystemsThinking?

    Seeing the forest andthe trees in

    any situation by:o Seeing interrelationships among

    systems rather than linear cause-

  • 8/14/2019 Definitions of Group

    7/47

    and-effect chains wheneverevents occur

    o

    Seeingprocesses of changeamong systems rather thandiscrete snapshots of change,whenever changes occur

    See the system in any situation:

    o Find the input, processing,output, feedback and controlcomponents

    10- 7

    Systems ThinkingExample

    10- 8

    Systems Analysis and

    Design SA & D

  • 8/14/2019 Definitions of Group

    8/47

    o Overall process by which IS aredesigned and implemented within

    organizations

    Two most common approaches toSA & D

    o Object-oriented analysis anddesign

    o Systems Development Life Cycle

    10- 9

    Systems DevelopmentLifecycle (SDLC)

    10- 10

    Systems InvestigationStage

    Do we have business opportunities?

    What are our business priorities?

    How can information technologiesprovide information systems

  • 8/14/2019 Definitions of Group

    9/47

    solutions that address our businesspriorities?

    10- 11

    Feasibility Study

    A preliminary study whereo the information needs of

    prospective userso the resource requirements, costs,

    benefits,o and feasibility of a proposed

    project are determined

    10- 12

    Feasibility Categories

    Operational Feasibility Economic Feasibility Technical Feasibility Human Factors Feasibility Legal/Political Feasibility

    10- 13

  • 8/14/2019 Definitions of Group

    10/47

    Operational Feasibility

    How well the proposed systemo supports the business priorities of

    the organization.o solves the identified problem.o fits within the existing

    organizational structure. Schedule feasibility can we solve

    the problem in a reasonable period

    10- 14

    Economic Feasibility

    Assess:o Cost savingso Increased revenueo Decreased investment

    requirementso Increased profits

    Cost/benefit analysis

    10- 15

  • 8/14/2019 Definitions of Group

    11/47

    Cost/Benefit Analysis

    Costs versus Benefits

    Tangible costs and benefits can bequantified with a high degree ofcertainty

    o Example: decrease in operatingcosts

    Intangible costs and benefits areharder to estimate

    o Example: improved customerservice

    10- 16

    Technical Feasibility

    Determine if reliable hardware andsoftware capable of meeting theneeds of a proposed system can beacquired or developed by thebusiness in the required time

    o Hardwareo Software

  • 8/14/2019 Definitions of Group

    12/47

    o Network

    10- 17

    Human Factors Feasibility

    Assesso Employee, customer, supplier

    acceptanceo

    Management support

    o The right people for the variousnew or revised roles

    10- 18

    Legal/Political Feasibility

    Assesso Possible patent or copyright

    violationso Software licensing for developer

    side onlyo Governmental restrictionso Changes to existing reporting

    structure

    10- 19

  • 8/14/2019 Definitions of Group

    13/47

    Systems Analysis

    An in-depth study of end userinformation needs That produces functional

    requirements that are used as thebasis for the design of a newinformationsystem

    10- 20

    Systems Analysis

    Detailed study ofo The information needs of a

    company and end users.o The activities, resources, and

    products ofone or more of thepresent information systemsbeing used.

    o The informationsystemcapabilities required to meetinformation needs of users andstakeholders

  • 8/14/2019 Definitions of Group

    14/47

    End users are important members ofthe development team

    10- 21

    Organizational Analysis

    Study of the organization including:o Management Structureo

    People

    o Business Activitieso Environmental Systemso Current Information Systems

    Document input, processing, output,storage and control

    10- 22

    Logical Analysis

    Construction of a logical model of thecurrent system

    Logical model

    o A blueprint of what the currentsystem does

    10- 23

  • 8/14/2019 Definitions of Group

    15/47

    Functional Requirements Analysis andDetermination

    Determine specific businessinformation needs

    o Determine what type ofinformation each businessactivity requires.

    o

    Determine the informationprocessing each system activityis needed to meet these needs.

    10- 24

    Functional Requirements

    End userinformation requirementsthat are not tied to the hardware,software, network, data, and peopleresources that end users presentlyuse or might use in the new system

    Whatthe system must do Functional Requirement categories

    o User Interfaceo Processing

  • 8/14/2019 Definitions of Group

    16/47

    o Storageo Control

    10- 25

    Systems Design

    Modify the logical model until itrepresents a blueprint for what the

    new system will do

    Physical design:o How the system will accomplish its

    objectives

    10- 26

    Prototyping

    The rapid development and testingof working models

    Used in design phase Especially useful when end user

    requirements are hard to define

    10- 27

    Prototyping Life Cycle

  • 8/14/2019 Definitions of Group

    17/47

    10- 28

    Prototyping

    Can be used for small and largesystems

    o But ifsystem is large, usuallyprototype just parts

    Develop quickly Refine until acceptable

    10- 29

    User Interface Design

    Focuses on supporting the

    interactions between end users andtheir computer-based applications

    Frequently prototype the userinterface

    10- 30

    Checklist for CorporateWebsites

  • 8/14/2019 Definitions of Group

    18/47

    Remember the customer successful websites are built solely

    for the customer, not to makecompany vice presidents happy Aesthetics successful designs

    combine fast-loading graphics andsimple color palettes for pages thatare easy to read

    Broadband Content the Webscoolest stuff cant be accessed bymost Web surfers; dont make it thefocus of a site

    10- 31

    Checklist for CorporateWebsites

    Easy to navigate make sure itseasy to get from one part of site to

    another Searchability make sure to have a

    useful search engine

  • 8/14/2019 Definitions of Group

    19/47

    Incompatibilities test site withtarget web browsers

    Registration forms shortregistration forms are a useful way togather customer data

    Dead links be sure to keep linksupdated

    10- 32

    System Specifications

    Formalize design ofo User interface methodso Productso Database structureso Processingo Control procedures

    Specifications for hardware,software, network, data, andpersonnel

    10- 33

    End User Development

  • 8/14/2019 Definitions of Group

    20/47

    IS professional plays a consultingrole

    End user does his/her ownapplication development

    Contrast in traditional life cycle:o End user is customero

    IS profession does development

    10- 34

    End User DevelopmentSource: Adapted from James N. Morgan,Application Cases in MIS, 4th ed. (New York:Irwin/McGraw-Hill, 2002), p. 31.

    10- 35

    Encouraging End UserWeb Development

    Look for tools that make sense

    Spur creativity Set some limits Give managers responsibility Make users comfortable

  • 8/14/2019 Definitions of Group

    21/47

    10- 36

    Systems Implementation

    Hardware and software acquisition Software development Testing of programs and procedures Conversion of data resources Conversion alternatives Education and training of end users

    and specialists who will operate anew system

    10- 37

    Implementation Process10- 38

    Project Management

    IT and business unit managers

    enforce a project plan which includeso job responsibilities,o time lines for major stages of

    development, and

  • 8/14/2019 Definitions of Group

    22/47

    o financial budgets

    10- 39

    Sample Implementation Process Plan10- 40

    Project

    A projecto Is a set of activities with a clear

    beginning and end Each project has

    o Goalso Objectiveso

    Tasks

    o Limitations

    10- 41

    Managing a project

    To manage a project need:

    o Processo Toolso Techniques

  • 8/14/2019 Definitions of Group

    23/47

    10- 42

    Five phases of project management

    Initiating/definingo State the problems/goalso Identify the objectiveso Secure resourceso Explore costs/benefits in

    feasibility study

    10- 43

    Five phases of project management

    Planningo Identify and sequence activitieso Identify the critical patho Estimate time and resources

    needed for completiono Write a detailed project plan

    Executingo

    Commit resources to specifictaskso Add additional

    resources/personnel if necessary

  • 8/14/2019 Definitions of Group

    24/47

    o Initiate project work

    10- 44

    Five phases of project management

    Controllingo Establish reporting obligationso Create reporting toolso Compare actual progress with

    baselineo Initiate control interventions if

    necessary

    10- 45

    Five phases of project management

    Closingo Install all deliverableso Finalize all

    obligations/commitmentso Meet with stakeholderso Release project resourceso Document the projecto Issue final report

    10- 46

  • 8/14/2019 Definitions of Group

    25/47

    Evaluating Hardware, software andservices

    Must acquire hardware, software How do we evaluate and select it? Companies may ask suppliers to

    present bids and proposals May score different products

    o

    Determine evaluation factors

    o Assign each product points oneach factor

    o May require benchmark tests Simulate processing of task and

    evaluates the performance

    10- 47

    Hardware EvaluationFactors

    Performance Cost Reliability Compatibility Technology

  • 8/14/2019 Definitions of Group

    26/47

    Ergonomics Connectivity

    Scalability

    Software Support

    10- 48

    Software Evaluation

    Factors

    Quality Efficiency Flexibility

    Security

    Connectivity Maintenance Documentation Hardware

    10- 49

    Examples of IS Services

    Developing a company website

  • 8/14/2019 Definitions of Group

    27/47

    Installation orconversion ofhardware or software

    Employee training

    Hardware maintenance System integration System design Contract programming Consulting services

    10- 50

    IS Services EvaluationFactors

    Performance

    Systems development Maintenance Conversion Training Backup Accessibility Business Position Hardware Software

  • 8/14/2019 Definitions of Group

    28/47

    10- 51

    System Testing

    Testing and debugging software Testing website performance Testing new hardware Review of prototypes of displays,

    reports and other output

    10- 52

    Data Conversion

    Converting data elements from olddatabase to new database

    Correcting incorrect data Filtering out unwanted data Consolidating data from several

    databases Organizing data into new data

    subsets

    10- 53

  • 8/14/2019 Definitions of Group

    29/47

    Importance of Data

    Conversion

    Improperly organized and formatteddata is major causes of failures inimplementing new systems.

    10- 54

    Documentation

    User documentationo Sample data entry screens,

    forms, reports

    Systems documentation

    o Communication among peopleresponsible for developing,implementing and maintainingsystem

    o Important in diagnosing errors

    and making changes

    10- 55

    Training

  • 8/14/2019 Definitions of Group

    30/47

    End users must be trained to operatenew system

    Educate managers and end users inhow the new technology impacts thecompanys business operations andmanagement

    10- 56

    Conversion

    Conversion from use of presentsystem to operation of new system

    10- 57

    Four major forms ofconversion

    10- 58

    Direct Conversion

    Turn off old system Turn on new system

  • 8/14/2019 Definitions of Group

    31/47

    Direct is least expensive method Riskiest method

    10- 59

    Parallel Conversion

    New and old systems runsimultaneously

    until end users and projectcoordinators are satisfied that thenew system is functioning correctly

    Low risk

    Highest cost method: perform allfunctions with both systems

    10- 60

    Pilot Conversion

    When new system is installed inmultiple locations Convert to new system in single

    location

  • 8/14/2019 Definitions of Group

    32/47

    Once complete in pilot location,o Evaluate and make any

    necessary changes

    10- 61

    Phased Conversion

    Incremental approach to conversion

    Bring in new system as a series offunctional components

    Lower risk Takes the most time

    10- 62

    Systems maintenance

    Corrective: fix bugs and logicalerrors

    Adaptive: add new functionality toaccommodate changes in businessor environment

    Perfective: improve performance

  • 8/14/2019 Definitions of Group

    33/47

    Preventive: reduce chances of failure

    10- 63

    Post-implementationreview

    Ensure new system meets thebusiness objectives

    Periodic review or audit

    10- 64

    ImplementationChallenges

    New system involves majororganizational change

    Manage changes too Business processeso Organizational structureso Managerial roleso Work assignmentso Stakeholder relationships

    10- 65

  • 8/14/2019 Definitions of Group

    34/47

    User Resistance

    New way of doing things generatesresistance Key to solving is

    o User involvement inorganizational changes anddevelopment of new systems

    User involvemento End users on systems

    development teamso End user ownership of new

    system

    Change Management

    Involve as many people as possiblein planning and applicationdevelopment

    Make constant change an expectedpart of the culture

  • 8/14/2019 Definitions of Group

    35/47

    Tell everyone as much as possibleabout everything as often as

    possible

    Make liberal use of financialincentives and recognition

    Work within the company culture, notaround it

    10- 69

    10- 70

    Strategic management is an ongoing process that evaluates and controls the business and

    the industries in which the company is involved; assesses its competitors and sets goals

    and strategies to meet all existing and potential competitors; and then reassesses each

    strategy annually or quarterly [i.e. regularly] to determine how it has been implemented

    and whether it has succeeded or needs replacement by a new strategy to meet changed

    circumstances, new technology, new competitors, a new economic environment., or a

    new social, financial, or political environment. (Lamb, 1984:ix)[2]

    Growth and portfolio theory

    In the 1970s much of strategic management dealt with size, growth, and portfolio theory.

    The PIMS study was a long term study, started in the 1960s and lasted for 19 years, thatattempted to understand the Profit Impact of Marketing Strategies (PIMS), particularly

    the effect of market share. Started at General Electric, moved to Harvard in the early

    1970s, and then moved to the Strategic Planning Institute in the late 1970s, it now

    contains decades of information on the relationship between profitability and strategy.Their initial conclusion was unambiguous: The greater a company's market share, the

    greater will be their rate of profit. The high market share provides volume and economies

    of scale. It also provides experience and learning curveadvantages. The combined effectis increased profits.[9] The studies conclusions continue to be drawn on by academics and

    companies today: "PIMS provides compelling quantitative evidence as to which businessstrategies work and don't work" - Tom Peters.

    One of the most valuable concepts in the strategic management of multi-divisionalcompanies was portfolio theory. In the previous decade Harry Markowitz and other

    financial theorists developed the theory ofportfolio analysis. It was concluded that a

    broad portfolio of financial assets could reduce specific risk. In the 1970s marketersextended the theory to product portfolio decisions and managerial strategists extended it

    http://en.wikipedia.org/wiki/Strategic_management#cite_note-1http://en.wikipedia.org/wiki/PIMS_studyhttp://en.wikipedia.org/wiki/General_Electrichttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Learning_curvehttp://en.wikipedia.org/wiki/Learning_curvehttp://en.wikipedia.org/wiki/Strategic_management#cite_note-8http://en.wikipedia.org/wiki/Harry_Markowitzhttp://en.wikipedia.org/wiki/Modern_portfolio_theoryhttp://en.wikipedia.org/wiki/Specific_riskhttp://en.wikipedia.org/wiki/Specific_riskhttp://en.wikipedia.org/wiki/Strategic_management#cite_note-1http://en.wikipedia.org/wiki/PIMS_studyhttp://en.wikipedia.org/wiki/General_Electrichttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Economies_of_scalehttp://en.wikipedia.org/wiki/Learning_curvehttp://en.wikipedia.org/wiki/Strategic_management#cite_note-8http://en.wikipedia.org/wiki/Harry_Markowitzhttp://en.wikipedia.org/wiki/Modern_portfolio_theoryhttp://en.wikipedia.org/wiki/Specific_risk
  • 8/14/2019 Definitions of Group

    36/47

    to operating division portfolios. Each of a companys operating divisions were seen as an

    element in the corporate portfolio. Each operating division (also called strategic business

    units) was treated as a semi-independent profit center with its own revenues, costs,objectives, and strategies. Several techniques were developed to analyze the relationships

    between elements in a portfolio. B.C.G. Analysis, for example, was developed by the

    Boston Consulting Group in the early 1970s. This was the theory that gave us thewonderful image of a CEO sitting on a stool milking a cash cow. Shortly after that the

    G.E. multi factoral model was developed by General Electric. Companies continued to

    diversify until the 1980s when it was realized that in many cases a portfolio of operatingdivisions was worth more as separate completely independent companies

    The five classical functions of a manager are:

    1. Planning the direction a company takes e.g. diversifying, where tooperate.

    2. Organising - resources such as people, space, equipment and services.

    3. Coordinating - the activities of various departments.4. Decision-making - about the organisation, products or services made orsold, the employees, use of I.T.

    5. Controlling - monitoring and supervising the activities of others.

    The role of a management information system (MIS) is to provide a managerwith sufficient information to make informed decisions to help him to carry outthe above functions. The best definition of an MIS is:

    The role of a management information system is to convert datafrom internal and external sources into information that can be

    used to aid in making effective decisions for planning, directingand controlling.We need to make the distinction between a data-processing system and aninformation system:

    Data processing systems record day too day transactions, e.g. sale of aCD to a customer.

    Operational Information systems read the collected data and do thingslike producing lists of items that need to be re-ordered.

    The MIS will analyse the sales data to highlight sales trends of different

    product lines, to enable decisions to be made as to whether the productneeds special promotion, or whether it should be discontinued.The MIS deals with internal and external information. The internal informationcan be got quite easily from the various systems on the company network, e.g.sales figures for each product line. The external information is gathered from:

    Intelligence about competitors activities. This can come throughreading articles in the press, leaks, or even industrial espionage.

    http://en.wikipedia.org/wiki/B.C.G._Analysishttp://en.wikipedia.org/wiki/Boston_Consulting_Grouphttp://en.wikipedia.org/wiki/G.E._multi_factoral_analysishttp://en.wikipedia.org/wiki/B.C.G._Analysishttp://en.wikipedia.org/wiki/Boston_Consulting_Grouphttp://en.wikipedia.org/wiki/G.E._multi_factoral_analysis
  • 8/14/2019 Definitions of Group

    37/47

    Information about population shifts. As the population gets older, theless likely they are to be interested in pop-music or customising cars,but are more likely to be interested in weight-loss products or holidaysfor the over 50s.

    Economic and social factors. Sales of cars would go down in an area

    where a major employer had just closed down a plant. Government Legislation. Financial forecasts would change if the

    minimum wage rose.The MIS can be used to gather information from both formal and informalflows of information.

    A formal flow of information is one in which a procedure is adopted,e.g. the downloading of sales figures from several branches first thing ona Monday morning. External data can be collected using specialiseddata collection agencies such as Dun and Bradstreet who produceeconomic data for academic and commercial organisations. Formal

    flows can also come from people working on the same document atseveral locations, or by use ofe-mail, or by use ofcompany intranets.

    Informal information flows come from chance meetings, readingmagazines or newspapers, or watching the news on TV.

  • 8/14/2019 Definitions of Group

    38/47

    The MIS must produce information for managers on three levels:

    Operational day-to-day decisions such as ordering in more stock

    Tactical decisions that have a short to medium term effect, e.g.introducing a new product to a particular retail outlet;

    Strategic long term decisions that will affect the future of theorganisation, e.g. whether to open a new store, or take over a rivalconcern.

    In 1973 a study showed the following about the time taken by a manager onvarious different tasks:

    Desk work 22 %

    Travel 3 %

    Unscheduled meetings 10 %

    Scheduled meetings (the practical alternative to work) 59 %

    Telephone calls 6 %.Some chief executives have to change their attention rapidly form one task toanother. In some cases, half their activities last less than nine minutes.

    Types of DecisionA manager can make two kinds of decision:

    Structured which are repetitive and need a definite routine andprocedure to deal with them, e.g. stock is below 15 %, so an order needto be place with a supplier.

    Unstructured require knowledge, insight, and evaluation. They maywell crop up without warning, and the right decision can be critical.

    The manager may well go through the following stages when considering whatdecision to take:

    1. Recognise the problem. The MIS may give information about the

    performance of the department, and where there is a problem.2. Consider the solution. A spreadsheet could be used to considerWhat if scenarios.

    3. The solution is chosen using the managers experience as well asthe information produced by the MIS.

    4. The solution is implemented and reviewed. Again the MIS canprovide the data on which the solution is evaluated.

    Considersolutions

    Choose asolution

    Is there a problemor opportunity?

    Is the choice

    working

  • 8/14/2019 Definitions of Group

    39/47

    Often solutions do not proceed smoothly and there may have to bebacktracking from one stage to another.

    Desirable features of an MIS

    Be flexible - allowing for different ways of analysing data and evaluating

    information.

    Be able to support a range of skills and knowledge. Provide interpersonal communication with other people

    in the organisation.

    Not require extensive periods of concentration as managers switchbetween different tasks.

    Make it easy to interrupt the work and return to it at a later time

    Protect a manager, from information overload.

    Systems Life CycleThe construction of a specialist computer system often involves large teams ofpeople, and it is absolutely critical that they are managed correctly. If theyare not, the project will be at best inefficiently run or at worst go belly-up.There are a good number of sophisticated computer projects that haveattracted publicity for all the wrong reasons, usually with the waste of manymillions of euros of public money.

    There are a number of ways that computer projects can be managed. We willlook at

    the systems life cycle

    the waterfall model

    prototyping.The systems life cycle was the traditional way in which projects were carriedout. Each stage was completed before the next was started.

  • 8/14/2019 Definitions of Group

    40/47

    You will have done something fairly similar with your project. This system hadits drawbacks, in that experience in a later stage could not inform work thathad been done previously.In the waterfall model, it is possible to rework earlier stages in the light ofexperience gained at a later stage. Each stage is signed off and the next stageis proceeded with. However the end user is rarely involved in the developmentstage, even though they may well be involved in signing off. It is therefore

    critical that the analysts and the programmers understand the end-usersrequirements. This can be quite difficult with the waterfall model.

    Testing

    Feasibility

    Maintenance

    Implementati

  • 8/14/2019 Definitions of Group

    41/47

    The waterfall model has disadvantages, which can be overcome usingprototyping, in which a model of the system is developed in partnership withthe end-user. The features are worked out with the end user using aprototype, and the end user can have a considerable input into thedevelopment of a project. The approach is shown below:

    Benefits are:

    Analysis

    Design

    Implementa-

    tion

    Review andmaintenance

    Feasibility

    Study

    Requirements

    analysis

    Design

    Coding and

    Testing

    Conversion

    Post-implementation

    review

    Establish an

    outline

    specification

    Develop a

    prototype

    Evaluate

    Specify Design and

    Implement

  • 8/14/2019 Definitions of Group

    42/47

    Misunderstandings are detected at early stages

    the user will notice any missing functions, incomplete or inconsistentrequirements.

    can be built quickly to demonstrate systems

    it can be used for training before the system is finished

    Drawbacks are:

    Project management can be discoordinated or even sloppy.

    Meetings with end users can become time consuming.

    The final result could be completely different to what was requested inthe first place.

    There are several different ways of prototyping:

    Piloting Test the feasibility of the design proposal

    Modelling building to develop an understanding of the usersrequirements

    Throw-away prototyping Pilot and modelling are throw away types once they achieve their purpose the real system is built.

    Evolutionary prototyping each prototype built is a step closer tosolution.

    What Prompts a New System?1. The current system may not do what it should.2. Technological developments may have made the current system outdated.3. The current system may be too inflexible or expensive to maintain.

    Feasibility Study

    The scope and objectives of the system are specified. The aim is to understandthe problem and see if it is worth continuing. A feasibility report is producedby the systems analyst which considers the five main factors which are(TELOS):

    Technical feasibility investigating if the technology exists to implementthe system

    Economic Feasibility establishing the cost-effectiveness of the system do the benefits outweigh the costs?

    Legal Feasibility Is there any conflict with system and legal

    requirements e.g. Data Protection Act Operational Feasibility are work practices and procedures able to

    support new system. Also considers social factors e.g. how will it affectworking lives.

    Schedule feasibility How long it will take to develop and if it can bedone in specified time frame.

    Telos is a Greek word meaning a target.

  • 8/14/2019 Definitions of Group

    43/47

    Once the feasibility study concludes that the project is viable, it proceeds tothe requirements analysis. This involves:

    Interviewing staff at all levels of the organisation to get their views onexactly what they want.

    Sending out questionnaires which need to be carefully constructed toavoid ambiguous responses. Examining all the documentation, from the most day-to-day to those

    used by the most senior of the managers. Observation of current procedures and practices.

    All of this is carried out by systems analysts who produce data flow diagramsto picture the companys operations. Click HERE to see a DFD.The analysts also consider the costs and benefits implications. They alsoconsider the way the project will be implemented:

    Will it be done in-house or using consultants; What hardware would be used; What software could be used?

    Finally a report is written with a recommendation to proceed or abandon theproject.The next stage is the system design:

    Hardware profile, including the technical data of the machines on whichthe programs will be run.

    Software profile, including the programming language, packages, and

    database management systems; Inputs, including entry screens; Outputs, such as reports; The user interface. The modular design structure for the program. The program is built up

    in discrete sub-units and put together; Test plan and data; Conversion plan; Documentation, including a user manual.

    You will have done much of this in your Module 3 project (didnt you?).

    Then theres the implementation, where the system is coded and tested. AlsoHardware is installed, ready to convert from the old system to the new.

    Hardware is installed, which may need extensive work on cabling and/orredesigning offices;

    Users are trained; Conversion of master files, or creation of new master files.

    http://www.antonine-education.co.uk/ICT_A2/Module_4/DFD.htmhttp://www.antonine-education.co.uk/ICT_A2/Module_4/DFD.htm
  • 8/14/2019 Definitions of Group

    44/47

    There are several ways ofconversion: Direct changeover, in which the old is topped and the new is

    introduced. Usually this is over a weekend or some other slack time.The advantage is that there is a minimum of duplication. The drawbackis there can be serious disruption if the new system has errors in it.

    Parallel conversion where the two systems are run alongside each

    other, minimising disruption due to errors. However this does involveduplication of the work. Phased conversion where bits of the new system are introduced, one at

    a time. Pilot conversion where the system is implemented initially in a few

    branches.

    Once the system is up and running, there is a post-implementation review. Itis usually in the first few weeks and months that errors become apparent.

    So system maintenance may be needed:

    Perfective maintenance although the system is running well, theremay be room for improvement;

    Adaptive maintenance where new functions are added to take intoaccount the changing needs of the company;

    Corrective maintenance to get rid of errors.

  • 8/14/2019 Definitions of Group

    45/47

    Why an MIS Might FailMIS systems are complex and expensive pieces of software, and many peopleare involved with the design both within the organisation and from outside.Often they are built by software houses to the precise requirements of theorganisation. So the client organisation needs to be very clear as to what itwants, and the software house analysts need also to be very clear about therequirements.

  • 8/14/2019 Definitions of Group

    46/47

    MIS failures can be expensive and bring bad publicity to all parties. They canarise due to:

    Inadequate analysis - problems, needs and constraints arentunderstood in the early stages.

    Lack of management involved in the design wrong expectations of a

    new system / no-one understands the system. Emphasis on the computer system Need procedures for handling input

    and output / select the right hardware and software Concentration on low-level data processing Information must be

    easily accessible and understood Lack of management knowledge of ICT systems and capabilities

    managers know what they want from the system but dont understandthe technology

    Lack of teamwork An ICT manager must co-ordinate the accounts,marketing, sales etc. departments and help everyone understand thebenefits of the system

    Lack of professional standards All systems need clear documentationthat all users can understand (not just the ICT literate)

    Organisations can judge how successful the implementation of an MIS systemhas been by applying the following evaluations:

    High level of use -Is it actually used? Some systems dont becomeoperational for reasons such as it taking too long to enter data.

    High level of user satisfaction - Do users like the systems? Accomplishment of original objectives -Have the objectives specified

    in the analysis stage been achieved? Appropriate nature of use -Is the software being correctly used?

    Has proper training been given? Institutionalisation of the system - Has it been taken on board

    enthusiastically?Accounting Information Systems (AISs) combine the study and practice of accounting

    with the design, implementation, and monitoring of information systems. Such systems

    use modern information technology resources together with traditional accountingcontrols and methods to provide users the financial information necessary to manage their

    organizations.

    Subsystem of aManagement Information System (MIS) that processes financial

    transactions to provide (1) internal reporting to managers for use in planning and

    controlling current and future operations and for nonroutine decision making; (2) externalreporting to outside parties such as to stockholders, creditors, and government agencies.

    An accounting information system (AIS) is the system of records a business keeps to

    maintain its accounting system. This includes the purchase, sales, and other financialprocesses of the business. The purpose of an AIS is to accumulate data and provide

    decision makers (investors, creditors, and managers) with information.

    http://www.answers.com/topic/management-information-systemhttp://www.answers.com/topic/management-information-systemhttp://www.answers.com/topic/accounting-softwarehttp://www.answers.com/topic/accounting-softwarehttp://www.answers.com/topic/management-information-systemhttp://www.answers.com/topic/accounting-software
  • 8/14/2019 Definitions of Group

    47/47

    While this was previously a paper-based process, most businesses now use accounting

    software. In an electronic financial accounting system, the steps in the accounting cycle

    are dependent upon the system itself. For example, some systems allow direct journalposting to the various ledgersand others do not.

    MISs are interactive human/machine systems that support decision making for users bothin and out of traditional organizational boundaries. These systems are used to support an

    organization's daily operational activities; current and future tactical decisions; andoverall strategic direction. MISs are made up of several major applications including, but

    not limited to, the financial and human resources systems.

    Financial applications make up the heart of an AIS in practice. Modules commonly

    implemented include: general ledger, payables, procurement/purchasing, receivables,billing, inventory, assets, projects, and budgeting.

    Human resource applications make up another major part of modern information

    systems. Modules commonly integrated with the AIS include: human resources, benefitsadministration, pension administration,payroll, and time and labor reporting.

    An accounting information system (AIS) is the system of records a business keeps to

    maintain its accounting system. This includes the purchase, sales, and other financial

    processes of the business. The purpose of an AIS is to accumulate data and providedecision makers (investors, creditors, and managers) with information.

    While this was previously a paper-based process, most businesses now use accounting

    software. In an electronic financial accounting system, the steps in the accounting cycle

    are dependent upon the system itself. For example, some systems allow direct journal

    posting to the various ledgersand others do not.

    http://www.answers.com/topic/accounting-softwarehttp://www.answers.com/topic/accounting-softwarehttp://www.answers.com/topic/accounting-softwarehttp://www.answers.com/topic/ledgerhttp://www.answers.com/topic/ledgerhttp://www.answers.com/topic/general-ledgerhttp://www.answers.com/topic/payrollhttp://en.wikipedia.org/wiki/Accounting_systemhttp://en.wikipedia.org/wiki/Accounting_systemhttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/w/index.php?title=Electronic_financial_accounting&action=edit&redlink=1http://en.wikipedia.org/wiki/Ledgerhttp://en.wikipedia.org/wiki/Ledgerhttp://www.answers.com/topic/accounting-softwarehttp://www.answers.com/topic/accounting-softwarehttp://www.answers.com/topic/ledgerhttp://www.answers.com/topic/general-ledgerhttp://www.answers.com/topic/payrollhttp://en.wikipedia.org/wiki/Accounting_systemhttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/wiki/Accounting_softwarehttp://en.wikipedia.org/w/index.php?title=Electronic_financial_accounting&action=edit&redlink=1http://en.wikipedia.org/wiki/Ledger