UNIT1

1 Introduction

2 Systems Concept

3 Building Information System

4 Managerial Information System

5 Introduction Data and Information Concepts

Business perspective from page # 15!

DATA can be defined as the collection of unorganized facts or figures. Data, the raw material for information, is also defined as groups of non-random symbols, which represent quantities, actions, objects etc. Data items in information systems are formed from characters. These may be alphabetic, numeric and special symbols such as $,Ω,Ψ etc. Data items are organized for processing purpose into data structure, file structure and databases. Data relevant to information processing and decision making may also be in the form of text, images or voice.

Data consists of symbols, which represent, describe or record reality, but the data symbols are not the same as reality. In other words, a name identifies a person but the name is not the same as the person. Data symbols can never be a complete representation of reality, they describe objects and events and their characteristics incompletely. Decisions about what to extract from reality and how to represent it using symbols should therefore reflect the needs, views of the users of data.

The word information is used commonly in our day-to-day working. In MIS, information has a precise meaning and it is different from data. The information has a value in decision, making while data does not have. Information brings clarity and creates an intelligent hum response in the mind.

In MIS a clear distinction is made between data and information. Data is like while the information is equivalent to the finished goods produced after processing the raw material. Information has certain characteristics. These are: Information

1 improves representation of an entity. 1 updates the level of knowledge. 1 has a surprise value. 6 reduces uncertainty.

5 aids in decision making.

The quality of information could be called good or bad depending on the mix of these characteristics.

Davis and Olson defines information as ‘a data that has been processed into a form,is meaningful to the recipient and is of real or perceived value in the current or the prospective actions or decisions of the recipient.’

Presentation of the information is an art. The data may be collected in the best possible manner and processed analytically, bringing lot of value in the information; however, if it is not presented properly, it may fail to communicate anything of value to the receiver. The degree of communication is affected by the methods of transmission, the manner of information handling and the limitations and constraints of a receiver as the information processor and the organization as the information user.The methods used for improving communication are SUMMARIZATION and MESSAGE ROUTING. The concept of summarization is used to provide information, which is needed in the form and content. The information can be summarized in a number of ways. The principle behind summarization is that too much information causes noises and distortions, i.e., confusion, misunderstanding and missing the purpose. The summarization suppresses the noise and the distortions. Another method of improving the degree of communication is through ‘message routing ’. The principle here is to distribute information to

all those who are accountable for the subsequent actions or decisions in any manner.

That is if the information is generated with a certain purpose for a primary user, then

such information may have secondary purposes to some other users in the organization.

This is achieved by sending the copies of the reports or documents to all the concerned people or users. The principle of the message routing achie ves the spread of information to the appropriate quarters.so we can say that too much of information generation is stopped to summarize it in summarization

& in message routing it is spread to the required destinations.

The business environment has changed from the traditional one to an environment where management processes are treated as a face-to-face, personal art and not a far-flung global coordination process. Information itself was not treated as an important asset for a firm. But today, most of the organizations had realized the importance of information. For individuals, information systems are needed for entertainment and as an enlightenment to their life. Meanwhile for businesses, information systems are mostly needed to help in decision making and problem solving. Besides that, it is used to gather, store and manipulate information. There are three main factors that contribute to the recognition of the importance of information to any organization .

The first factor is the emergence and strengthening of the global economy: Globalization of the world's industrial economies greatly enhances the value of information to the

firm and offers new opportunities to businesses. Information system provides the communication and analytical power that firms need for conducting trade and managing businesses on a global scale.

The second factor is due to the transformation of industrial economies and societies into knowledge and information based service economies.

In knowledge based economies, knowledge and information are considered as key ingredients in creating wealth to an organization. Knowledge and information are becoming the foundation for many new services and products. Intensification of knowledge utilization in the production of traditional products has increased as well. New kinds of knowledge and information intense organizations have emerged that are devoted entirely to the production, processing and distribution of information.

The third factor is due to the transforming of the business enterprise :Traditional firms were and still are a hierarchical, centralized, structured arrangement of specialist

that typically relies on a fixed set of standard operating procedures to deliver a mass-produced product or services. But the business enterprises have change into flattened, decentralized, flexible arrangement of generalists who rely on nearly instant information to deliver mass-customized products and services uniquely suited to specific markets or customers.

Besides the above-mentioned three main factors, there are also several trends that have made the use of information systems very important in business:

Computers power has grown tremendously, while their prices have dropped. Computer programs variety and ingenuity have increased. Quick and reliable communication lines and access to the Internet and World Wide Web have

become widely available and affordable.

The fast growth of the Internet has opened opportunities as well as competition in global markets.

An increasing ratio of the workforce is computer literate.

In this environment, organizations will quickly lag behind if they do not take advantage of this progress and use the technologies and skills to meet their goals.

Information: A Quality Product

Information is a product of data processing. Even if we take care of the aspects discussed in the above section, the manager will determine the quality of the information based on the degree of motivation it provides for action, and the contribution it provides for effec tive decision making. The quality of information is high, if it creates managerial impact leading to attention, decision and action .

The quality of information can be measured on the four dimensions, viz., 1.utility 2.satisfaction 3.error and 4.bias. (USBE)

The utility dimension has four facets-the form, the time, the access and the possession. If the information is presented in the form the manager requires, then its utility increases. If it is available when needed, the utility is optimized. If the information is easily and quickly accessible through the Online Access System, its utility gets an added boost. Lastly, if the information is possessed by the manager who needs it, then its utility is the highest. Many of the organizations suffer from the possessive nature of the managers making an access difficult for the other users of the information. Improving the quality through increasing a utility means an increase in the cost. The balance, therefore, is to be maintained between the cost and the utility AS THERE IS ALWAYS A BALANCE TO BE MAINTAINED BETWEEN UTILITY AND COST WHICH GO ANTAGONISTIC.

The concept of the utility of the information is subjective to the individual manager, at least in terms

of the form, time and access. Since in the organization there are many users of the same information, the subjectiveness would vary. Therefore, the one common key for measuring the quality could be the satisfaction of the decision maker. The degree of satisfaction would determine the quality of the information. If the organization has a high degree of satisfaction, then one can be safe in saying that the information systems are design ed properly to meet the information needs of the managers at all the levels.

Now, an error is the third dimension of the quality of the information. The errors creep in on account of various reasons, namely:

An incorrect data measurement An incorrect collection method Failure to follow the prescribed data processing procedure Loss of data or incomplete data Poor application of data validation and control systems A deliberate falsification

Erroneous information is a serious problem because the decision maker cannot make the adjustments, as he is not aware of it in terms of the location and the quantum of error. To control errors, it

is necessary to follow the methods of ‘systems analysis’ and ‘design’. The approach should be that the errors should be prevented, failing that they should be detected, and if not, they should be controlled.

The processing of data for the information processing should be allowed only after a thorough validation of the transactions and the contents, as a whole, on a logical plane.

Care should be taken that the information is processed after ensuring the correctness of the data in terms of the time and the number of documents, and the transactions in the period. The data should be checked against the master data wherever possible and the balance should be controlled through logical

processing by using rules, formulae, the principles, etc., which will ascertain the correctness of the contents.

If the information is processed out of a biased data it will have a bias. The procedure of communicating the information should be such that the system is able to detect the degree and the nature of the bias and correct the information accordingly.

The computer system and programmes are prone to errors because of the corrections, modifications

and changes required by the decision makers. These errors lead to wrong processing. A systematic effort should be made to keep the computer system document up-to-date, for guidance to the user of the system to remain error-free.

The measures of auditing, the use of the test data and conducting a physical audit of the record versus the reality would help considerably to control the errors arising out of wrong processing.

Parameters of Quality

The parameters of a good quality are difficult to determine, however, the information can be termed as of a good quality if it meets the norms of impartiality, validity, reliability, consis tency and age. The quality of information has another dimension of utility from the user's point of view. The users being many, this is difficult to control. Therefore, if one can develop information with due regards to these parameters, one can easily control the outgoing quality of the information with the probable exception of the satisfaction at the user's end.

1:Impartiality

Impartial information contains no bias and has been collected without any distorted view of the situation. The partiality creeps in, if the data is collected with a preconceived view, a prejudice, and a pre-determined objective or a certain motive.

2:Validity

The validity of the information relates to the purpose of the information. In other words, it is the answer to the question-does the information meet the purpose of decision making for which it is being collected?

The validity also depends on how the information is used. Since the information and the purpose

need not have one to one correspondence, the tendency to use it in a particular situation may make the information invalid. For example, if the quality of the manufactured product is deteriorating and it is decided to select the causes of poor quality, then one must collect all the possible causes, which may affect the quality. Quality is a function of the raw material, the process of manufacture, the tools applied, the measures of the quality assessment, the attitude of the people towards the control of quality. However, if the information collected talks only about raw material and the process of manufacture, then this information is not sufficient and hence it is not valid for all the decisions, which are required to control the quality.

3:Reliability

It is connected to the representation and the accuracy of what is being described. For example, if the organization collects the information on the product acceptance in the selected market segment, the size of the sample and the method of selection of the sample will decide the reliability. If the sample is small, the information may not give the correct and a complete picture and hence it is not reliable. The reliability is also affected, if the data is not collected from the right source.

4 :Consistency

The information is termed as inconsistent if it is derived from a data, which does not have a consis - tent pattern of period. Somewhere, the information must relate to a consistent base or a pattern. For example, you have collected the information on the quantity of production for the last twelve months to fix the production norms. If in this twelve months period, the factory has worked with variable shift production, the production statistics of the twelve months for comparison is inconsistent due to the variable shift production. The consistency can be brought in by rationalizing the date to per shift production per month. The regularity in providing the information also helps in assessing the consistency in the information.

5 Age

If the information is old, it is not useful today. The currency of the information makes all the difference to the users. If the information is old then it does not meet any characteristics of the information viz. the update of knowledge, the element of surprise and the reduction of uncertainty, and the representation.

Maintaining these parameters at a high degree always poses a number of problems. These problems are in the management of the operations, the sources, the data processing and the systems in the organization. A failure to maintain the parameters to a high degree affects the value of the information to the decision maker.

Introduction to Information System

Until the 1960s, the role of information systems was simple: transaction processing, record keeping, accounting, and other electronic data processing (EDP) applications. Then another role was added, as the concept of management information systems (MIS) was conceived. This new role focused on providing ‘managerial end users’ with req. information

By the 1970s, it was evident that the pre-specified information products produced by such ‘management information systems’ were not adequately meeting many of the decision making needs of management. So the concept of decision support systems (DSS) was born. The new role for information systems was to provide managerial end users with adhoc and interactive support of their decision-making processes .This support would be tailored to the unique decision-making styles of managers as they confronted specific types of problems in the real world.

In the 1980s, several new roles for information systems appeared. First:

the rapid development of microcomputer processing power, application software packages, and telecommunications networks gave birth to the phenomenon of ‘ end user computing’ . Now, end users can use their own computing resources to support their job requirements instead of waiting for the indirect support of corporate information services departments.

Second, it became evident that most top corporate executives did not directly use either the reports of information reporting systems but typical things out of it or the analytical modeling capabilities of decision support systems, so the concept of 'executive information systems' (EIS) was developed. These information systems attempt to give top executives an easy way to get the critical information they want, when they want it, tailored to the formats they prefer.

Third, breakthroughs occurred in the development and application of artificial intelligence (AI) techniques

to business information systems. Expert systems (ES) and other knowledge-based systems forged a new role for information systems. Today,expert systems can serve as consultants to users by providing expert advice in limited subject areas

An important new role for information systems appeared in the 1980s and continues into the 1990s. This is the concept of a strategic role for information systems, sometimes called ‘strategic information systems’ (SIS ). In this concept, information technology becomes an integral component of business processes, products, and services that help a company gain a competitive advantage in the global marketplace. Finally, the rapid growth of the Internet, Intranets, Extranets and other inter-connected global networks in the 1990s is dramatically changing the capabilities of information systems in business as we move into the next century. Such enterprise and global Internet working is revolutionizing end user, enterprise, and inter-organizational computing, communications and collaboration that supports the business operations and management of successful global enterprises.

Information System

Information system consists of physical and non-physical components working together. A computer alone is not an information system. A computer combines with a software program may constitute an information system, but only if the program is designed to produce information that helps an organization or person to achieve a specific goal. Information system can be further defined as a set of interrelated components that collect or retrieve, process, store and distribute information to support decision making and control in an organization. Information systems can also help managers and workers to analyze problems, visualize complex subjects and create new subjects. It may contain information about significant people, places and things within the organization or in the environment surrounding it.

All information systems (IS) operate in the same basic fashion whether they include a computer or not. However, the computer provides a convenient means to execute the four main operations of an information system.

The four main activities an information system does whether manual or computer oriented are entering data into the IS (input) changing and manipulating the data in the IS (data processing) getting information out of the IS (output) storing data and information (storage) Besides the four main operations, feedback is also needed to return the output to the

appropriate people or activities in the organization to evaluate and refine the input.

The first step in producing information is collecting and introducing data into the IS, known as input. Input captures or collects raw data from within the organization or from its external environment. Data are streams of raw facts representing events occurring in organizations or the physical environment before they have been organized and arranged into a form that people can understand and use. The input devices are the tools used to enter data into an IS. Input devices include the keyboard, infrared devices that sense bar codes, and voice recognition systems.

The second step in producing information is processing. This is the step where computer contributes to the efficiency of the data processing, which is essential to a robust IS. In this step, computer helps in converting the raw input into a more meaningful form through various methods like conversion, manipulation and analysis. The computer’s speed and accuracy let organizations process millions of pieces of data in several seconds.

Output is the information that an IS produces and displays on an output device in the format most useful to an organization. Information is data that have been shaped into a form that is meaningful and useful to human beings. A good IS must be able to produce information that carries the following characteristics:

Relevant - information must pertain to the problem at hand. Complete - partial information is often worst than no information. Accurate - erroneous information may lead to disastrous decisions. Current - decisions are often based upon the latest information available. Economical - in a business setting, the cost of obtaining information must be considered as one

cost element involved in any decision.The information needs to be transferred to the people or activities where it will be used. The most

widely used output device is the video display, or video monitor, which displays output visually. However, computers can communicate output through speakers in the form of music of speech and can also transmit it to another computer or electronic device in computer-coded form for later interpretation.

One of the greatest benefits of using computers is their ability to store vast amount of data and information. Computer stores information on both devices that are internal to the machine and those that are external.

Feedback is output returned to appropriate people or activities in the organization to evaluate and refine the input.

The four basic components of the computer system within an IS are as follows:

1. Input device that introduces data into the IS.1. The computer processes data through the IS.1. Output device that displays the information produces by the IS.1. Storage device to store data and information.

In addition to the above components, communication also occurs between computers. Communications technology lets users not only to access multiple input, output and storage devices with a single computer, but also to access data and resources of more than one computer as well.

A Business Perspective of

Information System

From a business perspective an information system is an organizational and management solution, based on information technology, to a challenge posed by the environment . It emphasizes the organizational and management nature of information system. To understand information system one should be information system literate as opposed to computer literate. A manager must understand the broader organization, management and information technology dimensions of systems and their power to provide solutions to challenges and problems in the business environment

The key elements of an organization are its people, structure, operating procedures, politics and culture. An organization coordinates work through a structured hierarchy and formal 'Standard operating procedures '(SOP). SOP are formal rules for accomplishing tasks that have been developed over a long time . These rules guide employees in variety of procedures. Most of the procedures are formalized and written down, but many others are informal work practices. Major organizational functions are like sales and marketing, manufacturing, finance, accounting and human resources.

Management’s job is to make sense out of many situations faced by organization and formulate action plans to solve organizational problems. A substantial part of management is creative work driven by new knowledge and information. Information technology can play a powerful role in redirecting and redesigning the organization. Managerial roles and decisions vary at different levels of the organization.

o Senior managers - Make long-range strategic decisions about products and services to o produce.

o Middle managers - Carry out the programs and plans in accordance with the decision of

o senior Management. o Operational managers - Responsible for monitoring the firm's daily activities.

Information technology is one of many tools available to managers for copying with change, which consists of computer hardware, computer software, storage technology and communication technology. Computer hardware is physical equipments used for input, processing and output activities in an information system. Computer software is detailed, pre-programmed instructions that control and coordinate the work of computer hardware components in an IS. Storage technology is physical media and software governing the storage and organization of data for use in an IS. Lastly, communication technology is physical devices and software that link various computer hardware components and transfer data for use in an IS. A network links two or more computers to share data or resources such as printers etc.

Contemporary Approaches to Information Systems

Multiple perspectives on IS shows that the study of information systems is a multidisciplinary field, where no single theory or perspective dominates. Figure below shows the major disciplines that contribute problem, issues and solutions. In general, the field of information systems can be divided into technical , behavioral and socio-technical approaches.

Technical approach emphasizes mathematically based, normative models to study information systems as well as the physical technology and formal capabilities of these systems. Three disciplines that contribute to this approach are Management Science, Computer Science and Operation Research.

Behavioral approach is more concerned with development and long-term maintenance of information systems, which emphasizes on issues like strategic business integration, design, implementation and utilization. Three disciplines that contribute to this approach are Psychology, Economics and Sociology .

Socio-technical approach avoids a purely technological approach to information systems. It emphasizes the need to optimize the performance of the system as a whole where both the technical & behavioral components need attention, meaning that the technology must be changed & designed in such a way as to fit organizational & individual needs. Meanwhile organization and individual must also be changed through training, learning & planned organizational change in order to allow the technology to operate and prosper.

The New Role of Information Systems in Organization

The new relationship as illustrated in Figure given below, between organizations and IS shows that there is a growing interdependence between organizational business strategy, rules and procedures on the one hand and information system software, hardware, databases and telecommunications on the other. The changes in strategy, rules and procedures require changes in hardware, software, databases and telecommunications. This relationship becomes critical when management plans for the future.

A second change in the relationship of IS and organizations results from the growing complexity and scope of system projects and applications. Over time, information systems have come to play a larger role in the life of the organization. Early information systems brought about largely technical changes that were relatively easy to achieve and accomplish and affects few people. Later systems affected managerial control and behavior (who has what information about whom, when and how often); ultimately systems influenced "core" institutional activities (what products and services are produced, under what conditions and by whom) concerning products, markets suppliers and customers.

End Users

The information generated through the information system is used by individuals. These individuals are often called “End Users” of the information. The end users may be individuals or a group of individuals (Department). They are also identified by their functional areas. The identification of the end users of information and their information requirements are essential for the design of the information system. Unless the end user is identified, the contact and presentation criteria for the information are difficult to define. The level of the end user in the hierarchy of the organization also needs to be identified. If the end user is at the strategic level, the information need is of different type as compared with the information need of end users at operational level.

End users of the system are of following types:(SSN-C)

1 Casual end users : The users who use the system occasionally.1 Naive or Parametric end users : These are the largest group who use the MIS or database. They

regularly use the database, e.g., for updating.1 Sophisticated end users : Those users who are high-end users are called sophisticated end users. If

they don’t find the system to be compact, they can modify it. These are the least group of people who use it.

1 Stand- alone end users : Those users who use the small packages are called stand-alone users. E.g., Users of tally are stand-alone users.

Types of Information System:

Information systems in the real world can be classified in several different ways.

1.Operation support system

2.Management support system

3.Management information system

4.Decision support system

5.Executive information system

Transaction processing system

Process control systems

Enterprise collaborative systems

1. Operation Support System

Operation support system refers to those systems that are responsible for the various operational activities in an organization. The most important systems that are considered to be crucial from operational activities point of view are Transaction Processing System, Process Control System and Enterprise Collaboration System. The role of a business firm's operation support systems is to efficiently process business transaction, control industrial processes, support enterprise communications and collaboration and update corporate databases.

a) Transaction Processing System

Functional Area: Systems:Sales and Marketing

Order Tracking Order Processing

Manufacturing Machine Control Plant Scheduling Material Movement Control

Finance Securities Trading Cash management

Accounting Payroll Accounts Payable Accounts Receivable

Human Resources Compensation Trading and Development Employee Record Keeping

The information system that is involved at operational level of an organization is Transaction Processing Systems. Transaction processing systems (TPS) are the basic business systems that serve the operational level of the system. A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to the conduct of the business. A TPS is any system that records transaction (a business event: a sale, a purchase, the hiring of a new employee). TPS is the entry point where data are entered at its source at the time of transactions take place. TPSs are interfaced with applications that provide clerical workers and operational managers with up-to-date information.At the operational level, tasks, resources and goals are predefined and highly structured. The decision to grant credit to customer, for instance, is made by a lower-level supervisor according to predefined criteria. All that must be determined is whether the customer meets the criteria.

The table shows the specific types of application information systems that correspond to operation level:

b) Process Control Systems (production control detection)

Operations support systems also make routine designs that control operational processes. Examples are automatic inventory reorder decisions and production control decisions. This includes a category of information systems called process control systems, in which decisions adjusting a physical production process are automatically made by computers. For example, a petroleum refiner uses electronic sensors linked to computers to continually monitor chemical processes. The computer monitors a chemical process data detected by sensors, and make instant adjustments to appropriate refinery processes. Process control is the use of computers to control an ongoing physical process. Process control computers control physical processes in petroleum refineries, cement plants, steel mills, chemical plants, food product manufacturing plants, pulp and paper mills, electric power plants, and so on. Many process control computers are special purpose minicomputer systems. A process control computer system requires the use of special sensing devices that measure physical phenomena such as temperature or pressure changes. These continuous physical measurements are converted to digital form by analog-to-digital converters and relayed to computers for processing. Process control software uses mathematical models to analyze the data generated by the ongoing process and compares them to standards or forecasts of required results. Then the computer directs the control of the process by adjusting control devices such as thermostats, valves, switches and so on. The process control system also provides messages and displays about the status of the process so a human operator can take appropriate measures to control the process. In addition, periodic and on-demand reports analyzing the performance of the production process can be produced. Personal computers have become a popular method of analyzing and reporting process control data.

c) Enterprise Collaboration Systems: (enterprise formation, collaboration)

Enterprise collaboration systems are information systems that use a variety of information technologies to help people work together. Enterprise collaboration systems help us collaborate, to communicate ideas, share resources and coordinate our cooperative work efforts as members of the many formal and informal process and project teams and other workgroups that are a vital part of today's organizations. Thus the goal of enterprise collaboration systems is to use information technology to enhance the productivity and creativity of teams and workgroups in the modern business enterprise. Enterprise Collaboration systems enable us to work together more easily and effectively by helping us to:

1 Communicate: Sharing information with each other.1 Coordinate: Coordinating our individual work efforts and use to resources with

each other.1 Collaborate: Working together cooperatively on joint projects and assignments.

There are many types of teams and workgroups, each with its own work styles, agendas and computing needs. A workgroup can be defined as two or more people working together on the same task or

assignment. A team can be defined as a collaborative workgroup, whose members are committed to collaboration, that is, working with each other in a cooperative way that transcends the coordination of individual work activities found in a typical workgroup. So collaboration is the key to what makes a group of people a team and what makes a team successful. Teams and work groups can be as formal and structured as a traditional business office or department, or they can be less formal and structured like the members of process teams in a manufacturing environment. Or they can be as informal, unstructured and temporary as an adhoc task force or a project team whose members work for different organizations in different parts of the world. Thus, the members of a team or workgroup don't have to work in the same physical location. They can be members of a virtual team, that is, one whose members are united by the tasks on which they are collaborating, not by geography or membership in a larger organization. In sociology and cultural anthropology, these workgroups are called social fields, semi-autonomous and self-regulating associations of people with their own work agendas, rules, relationships and norms of behavior. Enterprise collaboration systems make electronic social fields possible. Computers, groupware and telecommunications networks allow end users to work together in virtual teams without regard to time constraints, physical location, or organizational boundaries. Enterprise collaboration system is an information system. Therefore, it uses hardware, software, data and network resources to support communication, coordination and collaboration among the members of business-teams and work groups. For example, engineers, business specialists and external consultant may form a virtual team for a project. The team may rely on intranets and extranets to collaborate via E-mail, video conferencing, discussion forums and a multimedia database of work-in-progress information at a project Web site. The enterprise collaboration system may use PC workstations networked to a variety of servers on which project, corporate and other databases are stored. In addition, network servers may provide a variety of software resources, such as Web browsers, groupware and application packages; to assist the team’s collaboration until the project is completed

Management Support System

The management support system had its beginning since the time MIS was originated in the 1960s. When information systems focus on providing information and support for effective decision making by managers, they are called management support systems. Management information system began to be considered as the key area attempts to relate computer technology and systems theory to data processing in organizations. At that time, it became evident that computers were being applied to the solution of business problems in a piecemeal fashion, focusing entirely on the computerization of clerical and record-keeping tasks. The concept of management information systems was developed to counteract such inefficient development and ineffective use of computers. Though tarnished by early failures, the management information system concept is still recognized as vital to efficient and effective information systems in organizations for two major reasons:

1. It emphasizes the management orientation of information technology in business. A major goal of computer-based information systems should be the support of management decision making, not merely the processing of data generated by business operations.

2. It emphasizes that a systems framework should be used for organizing information

systems applications. Business applications of information technology should be viewed as interrelated and integrated computer-based information systems and not as independent data processing jobs.

There are several major types of information systems that are needed to support a variety of managerial end user responsibilities they are: Management Information System, Decision Support System and Executive Information System.

Management Information System

Management information systems (MIS) are the most common form of management support systems. They provide managerial end users with information products that support much of their day-to-day decision needs. Management information systems provide a variety of reports and displays to management. The contents of these information products are specified in advance by managers so that they contain information that managers need. Management information systems retrieve information about internal operations from databases that have been updated by transaction processing systems. They also obtain data about the business environment from external sources.

Information products provided to managers include displays and reports that can be furnished (1) on demand, (2) periodically, according to a predetermined schedule, or (3) whenever exceptional conditions occur. For example, sales managers could (1) use a web browser to receive instantaneous visual displays at their workstations of information about the sales of a particular product; (2) access weekly sales analysis reports evaluating sales results by product, salesperson and sales territory; or (3) receive reports produced automatically whenever a salesperson fails to produce sales results during a specified period.

Decision Support System

Decision support systems (DSS) are a natural evolution from information reporting systems and transaction processing systems. Decision support systems are interactive, computer-based information systems that use decision models and specialized database to assist the decision-making processing of managerial end users. Thus, they are different from transaction processing systems, which focus on processing the data generated by business transactions and operations, though they extract data from corporate databases maintained by transaction processing systems. They also differ from management information systems, which focus on providing managers with pre-specified information (reports) that can be used to help them make more effective, structured types of decisions. Instead, decision support systems provide managerial end users with information in an interactive session on an adhoc (as needed) basis. A DSS provides managers with analytical modeling, simulation, data retrieval and information presentation capabilities. Managers generate the information they need for more unstructured types of decisions in an interactive, simulation-based process. For example, electronic spreadsheets and other decision support software allow a managerial end user to pose a series of what-if questions and receive interactive responses to such adhoc requests for information. Thus, information from a DSS differs from the pre-specified responses generated by management information systems. When using a DSS, managers are simulating and exploring possible alternatives and receiving tentative information based on alterative sets

of assumptions. Therefore, managerial end users do not have to specify their information needs in advance. Instead, a DSS interactively helps them find the information they need.

Executive Information System

Executive information systems (EIS) are management information systems tailored to the strategic information needs of top management . Top executives get the information they need from many sources, including letters, memos, periodicals, and reports produced manually as well as by computer systems. Other sources of executive information are meetings, telephone calls, and social activities. Thus, much of top executive’s information comes from non-computer sources. Computer-generated information has not played primary role in meeting many top executives information needs. The goal of computer-based executive information systems is to provide top management with immediate and easy access to selective information about key factors that are critical to accomplishing a firm's strategic objectives. Therefore, EIS are easy to operate and understand. Graphics displays are used extensively and immediate access to internal and external databases is provided. Executive Information System provides information about current status and projected trends for key factors selected by top executives. EIS have become so popular in recent years that the use is spreading into the ranks of middle management.

System Concepts

A system can be simply defined as a group of interrelated or interacting elements forming

a unified whole. For example we can look into many such systems like in physical and biological sciences, in modem technology, and in human society. This definition is more general, in a wider sense we can define a System as a group of interrelated components working together toward a common goal by accepting inputs and producing outputs in an organized transformation process. Such a system has three basic interacting components or functions:

1. Input : Involves capturing and assembling elements that enter the system to be processed. For example, raw materials, energy, data, and human effort must be secured and organized for processing.

2. Processing : Involves transformation process that converts input into output. Examples to these are manufacturing process, the human breathing process, etc.

3. Output : Involves transferring elements that have been produced by transformation process to their ultimate destination, Examples to these are finished products, human services and management information that must be transmitted to their human users.

The system concept becomes even more useful by including two additional components: feedback and control.

1 Feedback : It is data about the performance of a system. It is actually measured in terms of the outcome to that of the predefined objectives set out at the beginning of the process.

2 Control : It involves monitoring and evaluating feedback to determine whether a system is moving toward the achievement of its goal. The control function then makes necessary adjustments to a system's input and processing components to ensure that it produces proper output.

Feedback is frequently included as part of the concept of the control function because it is such a necessary part of its operation. The role of feedback and control is to ensure that other system components properly transform inputs into outputs so a system can achieve its goal. A system with feedback and control components is sometimes called a 'cybernetic system’, that is, a self-monitoring, self-regulating system .

System Characteristics

A system does not exist in a Vacuum; rather, it exists and functions in an environment containing other systems. If a system is one of the components of a larger system, it is then referred to as a subsystem, and the larger system is its environment. Also, its system boundary separates a system from its environment and other systems. Several systems may share the same environment. Some of these systems may be connected to one another by means of a shared boundary, or interface with other systems in its environment. The system that has the ability to change itself or its environment in order to survive is an adaptive system.

Information System Resources

Information is generated by processing facts. These facts may be represented by symbols, such as alphabets, digits, diagrams, graphs, pictures, etc. and they are popularly known as data. For the purpose of developing services for generation of information, one would need data processing resources or information system resources. The information system consists of five major resources. They are

people hardware software data networks

People Resources

People are required for the operation of all information systems. These people resource include end users and IS specialist.

End users: End users are people who use an information system or the information it produces. They can be accountants, salespersons, engineers, clerks, customers, or managers. Most of us are information system end users.

IS specialist: These are the people who develop and cooperate information systems. They include systems analyst, programmers, computer operators and other managerial, technical, and clerical IS personnel. Briefly, systems analysts design information system based on the information requirements of end users; programmers prepare computer programs based on the specifications of system analysts and computer operators operate large computer systems.

Hardware Resources

The concept of hardware resources includes all physical devices and materials used in information processing. To be able to determine the hardware resource requirements, it is necessary to properly assess the nature of IT needs, the volume of data to be processed, source of data, complexity of data analysis and impact of other related factors. Specifically, it includes not only machines, such as computers and other equipment, but also all data media, that is, all tangible objects on which data is recorded, from sheets of paper to magnetic disks. Examples of hardware in computer-based information systems are:

2 Computer systems : These consist of central processing units containing microprocessors, and variety of interconnected peripheral devices. Examples are microcomputer systems, mid range computer systems and large mainframe computer systems.

3 Computer peripherals: These are devices such as a keyboard or electronic mouse for input of data and commands, a video screen or printer for output of information, and magnetic or optical disks for storage of data resources.

Software Resources

The concept of software resources includes all sets of information processing instructions. This generic concept of software includes not only the sets of operating instructions called programs, which direct and control computer hardware, but also the sets of information processing instructions needed by people, called procedures. It is important to understand that even information systems that don't use computers have a software resource component. This is true even for the information systems of ancient times, or the manual and machine-supported information systems still used in the world today. They all require software resources in the form of information processing instructions and procedures in order to properly capture, process, and disseminate information to their users. The following are the examples of software resources:

1 System software: System software is like that of an operating system program, which controls and supports the operations of a computer system.

2 Application software: Applications are the programs that direct processing for a particular use of computers by end users. Examples are sales analysis program, a payroll program and a word processing program.

3 Procedures: Procedures are operating instructions for the people who will use an information system. Examples are instructions for filling out a paper form or using a software package.

Data Resources

Data is more than the raw material of information systems. Managers and information systems professionals have broadened the concept of data resources. They realize that data constitutes a valuable organizational resource. Thus one should view data as data resources that must be managed effectively to benefit all end users in an organization. Data can take many forms, including traditional alphanumeric data, composed of numbers and alphabetical and other characters that describe business transactions and other events and entities. Text data, consisting of sentences and paragraphs used in written communications; image data, such as graphic shapes and figures; and audio data the human voice and other sounds, are also important forms of data. The data resources of information systems are typically organized into:

‘Databases’ that hold processed and organized data.

‘Knowledge bases’ that hold knowledge in a variety of forms such as facts, rules and case examples about successful business practices.

People often use the terms data and information interchangeably. However, it is better to view data as raw material resources that are processed into finished information products. We can define information as data that have been convened into a meaningful and useful context for specific end users. Thus, data are usually subjected to a value added process where its form is aggregated, manipulated, and organized and its, content is analyzed and evaluated; and at last it is placed in a proper context for specific end users.

Network Resources

Telecommunication networks like the Internet, Intranets, and Extranets have become essential to the successful operations of all types of organizations and their computer based information systems. Telecommunications networks consist of computer, communication processors, and other devices interconnected by communication media and controlled by communications software. The concept of network resources emphasizes that communications networks are a fundamental resource component of all information systems. Networks resources include:

1 Communication media: Examples include twisted-pair wire, coaxial Cable, fibre-optic cable, microwave systems, and communications satellite systems.

2 Network support: This generic category includes all of the people, hardware, software, and data resources that directly support the operation and use of a communications network. Examples include communications processors such as modems and Internetwork processors, and communication control software such as network operating systems and Internet browser packages.

Types of System

A system is defined and determined by its boundaries and objectives. It is quite likely that a system is an arrangement of smaller systems in a logical order. When many smaller systems together make a larger system, the smaller systems are called the subsystems of the larger system. A large system can be split or decomposed into smaller subsystems up to a certain level. This decomposition can go down to a level where the input and the output are more or less same. The decomposition of a system into subsystems can be in a serial form or it could be in a matrix form.

In a serial system processing, the entire output of a subsystem is the input to the next sub system and so on. In the matrix arrangement the different outputs go to different sub-systems. A subsystem receives more than one input from other subsystems.

In any system, the inputs are transformed into the output by a process. We say that the pro cess is transparent to us when we are able to understand the system. But, if the process of input transformation is not visible and understandable then we say that the system is a black box and the process is not transparent

A large system is always complex and difficult to understand. Therefore, for viewing it in a different way, the system is split into the smaller subsystems.

Most of the systems can be viewed in a hierarchical structure. Breaking the system in a hierarchical manner provides a way to structured systems ana lysis . It gives a clear understanding of the contribution of each subsystem in terms of data flow and decisions, and its interface to the other subsystems.

The systems can be classified in different categories based on the predictability of its output and the degree of information exchange with the environment. A system is called deterministic, when the inputs, the process and the outputs are known with certainty.

In a deterministic system, you can predict the output with certainty. The accounting system is deterministic. A deterministic system operates in a predictable manner.

A system is called probabilistic, when the output can only be predicted in probabilistic terms. The demand forecasting system is a probabilistic one. Probabilistic system behaviour is not predictable.

If a system is functioning in isolation from the environment, then the system does not have any exchange with the environment nor is it influenced by the environmental changes. Such a system is called a closed system. All kinds of account ing systems, viz., cash, stocks, attendance of employees are closed systems. Most of the systems based on rules and principles are closed systems. The systems of manufacturing are closed systems

If the system has exchange with the environment and is influenced by the environment then it is called an open system. The systems which are required to respond to changes in the environment, such as marketing, communication and forecasting are open systems. All open systems must have a self-organizing ability and a sensitivity to absorb and adjust to the environmental changes. The business organization systems are open systems..

The information system is a combination of a person (the user of information), the hardware and

the software. The hardware-software system is a closed deterministic system but in combination with the user it is an open and a probabilistic system.

Generally the deterministic systems are closed, and the probabilistic systems are open. The deterministic and the closed systems are easy to computerize as they are based on facts and their behaviour can be predicted with certainty. A fixed deposit accounting system, an invoic ing system, and share accounting systems are examples of closed and deterministic systems.

The ‘probabilistic cum open systems’ are complex in every aspect. Hence, they call for considerable amount of checks and controls so that the system behaviour or the performance can be controlled. All such systems must ideally have self-organizing corrective system to keep the system going its desired path.

For example, the pricing systems are probabilistic and open. They are to be so designed that the changes in the taxes and duties, the purchase price and the supply positions are taken care of, in the sales price computation. Since the pricing system operates under the influence of the environment, it has to be designed with flexible computing routines to determine the price. The building of self-organizing processing routines to respond to the environmental influences is a complex task both in the design and operating of the system.

Information System Activities

Information system activities refer to the basic information processing activities that occur in information systems.

Input of Data Resources

Data are facts that are expressed with the help of symbols such as alphabets, digits, graphs, diagrams, pictures, etc. or in any other form. Whatever may be the source of data, it may be initially recorded and later verified for accuracy and authenticity. This activity is called data capture. Data may be captured by punching with keyboard or scanning with scanning devices, facts from documentation, which they were recorded on computer media such as disks and tapes, data capture may take place by selecting the relevant part of that recording for meeting the data needs for the purpose on hand. Most of the data captured for business information systems are organized in data files. Each file contains records relating to various data elements (fields) expressed with the help of different symbols (characters). These files in turn are linked to databases.

Processing of Data into Information

Data is typically subjected to processing activities such as rearranging, classifying, calculating, comparing, and summarizing.

1 Rearranging: Data in some specified order is a very common data processing activity. For

example, data regarding stores may be arranged in order of date of purchase or in order of value of each unit or in the alphabetic order of names of these items. Such a rearrangement is also known as sorting of data.

2 Classifying: Data may be classified on the basis of the selected variables or factors. For example, sales data may be classified on the variables like customer's code, city, product or sales person involved in obtaining order. Classification is also a commonly used data processing operation, particularly in accounting information systems. In fact the whole concept of ledger is based on classification as a value adding activity in the process of generation of information. The classification adds value to data and makes it more valuable for user in most of the decision situations.

3 Calculating: For a layman, data is processed only by calculating. A series of calculations performed on numeric values is called computations. That is, perhaps, how computers got their name, as earlier generations of computers aimed at providing computing facilities. Even, as the diverse forms of data cannot be processed with the help of computers, the process of generation is predominantly computing. Calculating involves performing arithmetic operations. For example, financial ratios may be calculated by performing arithmetic operations on various values in financial statements. Even complex set of computations can take place while using various quantitative techniques for data analysis. These quantitative models help in shifting information from large volume of data. The kind of data processing operation is extensively used by managers for predicting the behaviour of various elements of business environment.

4 Summarizing: Summarizing is a process of aggregating various data elements, reducing the bulk of data to a more meaningful form. For example, a financial manager may be interested in knowing the total number of shares applied for in a public issue. The data in this regard may be summarized and such summary report may be more useful to him than the entire statement giving details of each share application received. Summarizing may also involve aggregation in each category or class of value. Extending the above aggregation in each category or class of value. Extending the above example, a summary report may contain sub-totals for each class of share applications received, i.e. individual, corporate body, trust, etc. or number of shares applied for in each city.

Output Information Product

Information in various forms is transmitted to end-users and made available to them in the output activity. The goal of information systems is the production of appropriate information products for end users. Common information products include messages, reports, forms and graphic images, which may be provided by video displays, audio responses, paper products and multimedia. We routinely use the information provided by these products as we work in organizations and live in society. For example, a sales manager may view a video display to check on the performance of a salesperson, accept a computer-produced voice message by telephone, and receive a printout of monthly sales results.

Storage of Data Resources

Storage is a basic system component of Information Systems. Storage is the information system activity in which data and information are retained in an organized manner for later use. For example, just

as written text material is organized into words, sentences, paragraphs and documents; stored data is commonly organized into fields, records, files and databases. This facilitates its later use in processing or its retrieval as output when needed by users of a system.

Control of System Performance

An important information system activity is the control of its performance. An information system should produce feedback about its input, processing, output, and storage activities. This feedback must be monitored and evaluated to determine if the system is meeting established performance standards. Then appropriate system activities must be adjusted so that proper information products are produced for end users. For example, a manager may discover that subtotals of sales amounts in a sales report do not add up to total sales. This might mean that data entry or processing procedures need to be corrected. Then changes would have to be made to ensure that all sales transactions would be properly captured and processed by sales information system.

MIS and System Concepts

The MIS is an arrangement of data processing and information systems in an orderly manner to support the management in achieving the business objectives. The MIS boundaries cross the limits of the organization and draw the data from the sources external to the organization. MIS follows a generalized model of a system as stipulated in the theory and performs on the principle of feedback and control. It works on the principle of control by exception.

MIS is designed to provide the information, which is exceptional in nature from the point of view of business. The exceptions could be abnormal events, surprising developments, shocking news, or something that was not consistent with the expectations. The MIS must catch all such points and report them to the concerned management. It must, therefore, recognize all such possible points and provide a measure for comparison with the actual performance. Unless such a feature is included, the MIS will be supplying merely data and not information.

The MIS, initially, concentrates on the quality of input satisfying the parameters, viz., impartiality, validity, reliability, consistency and age. A large amount of system effort is spent in this area to ensure the quality of the input.

The MIS provides a system for data processing and data analysis. It uses a number of applications and business models, operational research models and application packages to produce the information. The MIS has a provision to display the information and also print it in a report format. It also provides a facility to store the intermediate results, which are used in a number of other systems. The MIS is a combination of the deterministic and the closed systems, and the probabilistic and the open systems.

By nature, the MIS is an open system interfacing continuously with the internal and the external environment and is self organizing to meet the ever increasing and changing information needs of the organization. This is made possible by organizing the MIS in a hierarchical structure. Further, it is subdivided into smaller subsystems. The decomposing is done on the various bases, viz., the functional, the departmental, or the decision. It can also be decomposed on the basis of activity, viz., the data collection,

data analysis, planning and control. The breaking up of the system into smaller subsystems is for understanding and determining the boundaries, and for setting the objectives. It also aids in chalking out the developmental path of the MIS. The complexity of the MIS is handled by simplifying the subsystem structure and decoupling the two subsystem clusters.

The performance of the MIS design starts decaying in the post implementation period and it is necessary to provide negative entropy to bring back the system to its original equilibrium.

Though the MIS is designed as an open system, its failure arises on account of the degree of flexibility kept in the system. It is observed that the core systems are not required to change but the peripheral systems often undergo a change. The MIS, as an open system, supports the organization in the functioning of the other systems. Since the organization by nature is built to absorb a new input in place of the old, it is required to change its goals and objectives, the management style, the systems and the procedures. The MIS must support this effort on a continuing basis. A good MIS is founded on the in-depth system analysis of the business and management processes. It caters to the individuals, the groups, the functions and the different levels of the management in the organization.

. In short, the elements of the MIS are the computer hardware, the communication channels, the software and the software tools, the development plan and a well-defined measurable objective of the MIS consistent to the business objectives of the organization. Irrespective of the organization structure, the industry or the business, public or private sector, the MIS is a model consisting of the various subsystems.

Building Information System

Computer technology has no limits. We use it in many ways from video games to creating special effects for films from televisions to microwave ovens from electronic cameras to space launchings. In business too, computer and information systems occupy a special place like in airline reservations, offices, hospital records departments, accounting and payroll functions, electronic banking and in countless other applications.

Technology is developing at a very fast rate, but the most important aspect of any system is the human know- and use of ideas to make the best use of computers so that it performs the required task. This is what the systems development is all about. So, to be of any use, a computer based information system-

1 Must function properly1 Should be easy to use1 Suit the organization for which it has been designed

If the computer helps the people to do their jobs better and more efficiently, they will use it. If it is not helpful, they will surely avoid it.

What is System Analysis and Design?

Generally speaking, in business, systems analysis and design refers to the process of examining a

business situation with the intent of improving it through better procedures and methods. So we can say, systems development has two major components, systems analysis and systems design. System analysis is the process of gathering and interpreting the facts, diagnosing problems and using the facts to improve the system. Systems design is the process of planning a new business system to replace or renew the old. But before this can be done, of course we must understand the old system and see how computers can be used to make its operations more effective. This is the job of system analyst. Consider for example the stockroom for a clothing store. In order to better control its inventory and have more up to date information about stock levels and reordering, we have been given the job of computerizing the stockroom operations. Before we actually begin to design a system i.e. for collection of data, updating of files and production of reports, we would need to know more about the how the store operations are handled and how the information is stored manually, Such as we would need to search that from where the information has been generated i.e., either from purchases department, stock department or accounting department.

In other words we can say that we should know that how system is presently working and what is the flow of information. So it is also important to know only after we have collected these facts, we can begin to determine how and where a computer information system can benefit all the users of the system. So, this accumulation of information is called system study.

If the intended users of the system are not comfortable with it, it will fail in its purpose of improving the organization. So, we can say that Analysis specifies WHAT the system should do. Design states HOW to accomplish the objective.

Business system concepts

We had been using the term system repeatedly. But, when we talk about it in a broad sense, we can say that, a system is simply a set of components that interact to accomplish some purpose. Actually, they are around us only. For example, we feel physical sensations by means of a complex nervous system, which includes the parts like brain, spinal cord, nerves, and special sensitive cells under our skin. And they all together make us feel hot, itchy and cold or, if we take another example we communicate by means of language, which is a highly developed system of words and symbols that conveys meaning to us and to others. We might have not realized, but a business is also a system, like it includes different departments i.e. marketing, manufacturing, sales, accounting and personnel. And these altogether work to create a profit that benefits the employees and stockholders of the firm. Each of these parts is a system itself. For example, the accounting department may consist of accounts payable, account receivables, billing, auditing and the things like that and when we begin to see how vast these systems are, then it will not surprise us to realize that every business system depends on more or less on the abstract entity called an information system, i.e., the means of which the data flows from one person to other. It could be through the email or the reports. The information system link the different components together in such a way that they can effectively work together toward the same purpose.

Characteristics of the system

The system's purpose is its reason for existing. For example, the ignition system in an automobile has a clearly stated purpose of burning fuel that can be transformed into energy, used by the automobile's other systems to achieve their purposes, systems interact with their environments.

Systems that interact with their environments, receive inputs and produce outputs are open systems. And the systems that do not interact with their surroundings are called closed systems. And, the systems work best when they operate within tolerable performance levels. For example, we function best when our body temperature measured by the thermometer is 98.6 degrees, in normal temperature? But what would happen if there is a slight deviation from 98.6 degrees to 99.0 degrees probably it would not affect our performance much although some differences will be noticeable. But, a high variation such as 103-degree fever will change body functioning drastically, and our system will run down until the condition is corrected. But, if the condition continues too long, the result can be fatal, and the system can die. So, we also talked about how the control is important

For control the interaction is important, as in the open systems. . For example, If in some type of business, the products output is high priced and low quality then people probably will not continue to buy them but by giving the proper feedback the performance of the product can be improved and the product can be made up to the expectations of the customer. In contrast, the closed systems are not interacting with the environment and are self-adjusting and self regulatory.

What the business systems are?

Organizations consist of many business systems, each having the features of the general system. The purpose is to fulfill the demand of the market. For example, if we talk about the manufacturing system, then we can consider various features of it like:

1 Replace the persons because they are not skillful.1 Purchase new equipment1 Modify the way the products are made.

So, the manufacturing systems are themselves the subsystems with the large organizations and in

turn are made up of other subsystems i.e.

1 For acquiring the people1 Maintaining the equipments1 Training the workers.

Now, after talking about the business let us see what are the business information systems Like other systems they interact with other components of the enterprise. The purpose of Information systems is to process input, maintain files for the data of the organization and produce information, reports and other output and they in turn consist of subsystems, like:

1 Hardware equipments.1 Software, files and databases for data storage

In information systems, the system analysts must first study the organization system i.e. the

divisions, departments, offices and people. And after that he will concentrate on the information systems details. So during the course of designing, analyst will develop two different types of information systems:

Transaction processing system, which aims at improving the day-to-day business activities operations on which the organization depends. i.e. it includes processing data, handling sales orders, inputting the data or, we can say that replacing the manual recording of data to increase the efficiency, speed and accuracy of processing the volume of data.

& Management decision systems, aimed at direct support of managers responsible of decision making in the organization.

Till now we have seen that:1 What is system?1 What is system analysis and design?1 What is the job of system analyst?1 What are system's important characteristics?1 What are business systems?

What are business information systems?

Systems Development Life Cycle

Systems development consists of two major steps of ‘systems analysis’ and ‘design’. It starts when management or sometimes systems development personnel realize that a particular business system needs improvement. But building an information system or software system is not merely putting the computer instructions together but it involves various management techniques. As for example the approach followed by the engineer to build bridges, factories, ships spacecraft or the approach followed by the architects to design the house, which all requires a lot of work. So, it can be said that building an information system also require a lot of engineering work. Until software system is implemented and delivered to a customer and even after that the system undergoes gradual development and evolution i.e. it is said to have a life cycle composed of several stages. And that life cycle is called the system development life cycle and it consists of the set of activities, which the analysts, designers and users carry to develop an information system like a software programming. Each stage has the starting and ending point and has a clear identification of its own. These stages are

1 Preliminary investigation

1 Determination of requirements

1 Design of system

1 Development of software

1 System testing

1 System implementation

7 Maintenance

Preliminary investigation

Ok tell me how many times have you felt that there could be a better way of doing the thing, e.g. the long lines to submit the electricity bill might make you think that there could be a better way. Or for example a growing company might look forward towards computerization for making the good growth. The request may be initiated for any no. of reasons but the point is that someone - manager, an employee or a system specialist initiate a request to receive assistance from information systems. For example in library information systems, a request will come from either the librarian or from the management. When that request is made, the first systems activity i.e. preliminary investigation begins. It has three parts

1 Request clarification Many requests from employees and users in the organization are not clearly stated. So, it should be

clear in the advance that what the originator wants. Problem clarification is difficult because requester is making a request but how to state it or where is actually the problem or what is the problem is not clearly stated.For example the librarian has made a request but how to state it, he does not know.

2 Feasibility study This is determining whether the system requested is feasible or not. It includes--

1. Technical feasibility: is it possible that the work can be done with current equipment, software technology and available personnel? And if new technology is required what is the possibility that it can be developed.

2. Economic feasibility: will there be sufficient benefits in creating the system.3. Operational feasibility: will the system be used if it is developed and implemented or will

there be resistance from the users.

The feasibility study is carried out by a small group of people, who are familiar with the information systems techniques and understand the part of the business or organization and are skilled in the systems analysis and design process.

3 Request approval Not all the requested projects are desirable or feasible. And only those, which are desirable or feasible, should be put into the schedule. In some of the cases the development can start immediately but in some of the other cases, the staff members are busy on their ongoing projects. Many business organizations develop information systems as carefully as they plan for new products, or new manufacturing programs. After a request is approved its cost, priority, completion time and personnel requirements are estimated. For e.g. in our case the management who will be investing the money might feel that there is no requirement of such a system so unless they approve it work cannot start.

Determination of requirements

The heart of the ‘systems analysis’ is aimed at acquiring a detailed understanding of all-important areas of business that is under investigation. Analysts working closely with employees and managers must

study the business process to answer the questions like-

4 What is being done?4 How is being done?4 How frequently does it occur?4 How great is the volume of transactions?4 How well is the task being performed?4 Does a problem exist?4 If a problem exists, how serious is it?4 If a problem exists, what is the underlying cause?

For Example1 How the records for different classes are maintained?1 How to keep a check on which student has taken which book?1 Or there could be the case that a book is issued which is not there in the records.

To answer these, system analyst will talk to a variety of people and will take their ideas and opinions. Questionnaires are used to collect the information from people who cannot be interviewed individually. Detailed investigation includes:

1 Study of manuals and reports 1 Actual observations of work activities

3 Collection of sample forms and documents

Design of system

It states the details of how to meet the system requirements identified during the earlier stages of system analysis. This stage is also called the logical design , in contrast to the developing software, which is referred to as the physical design.

1 Identification of reports and other outputs the system will produce.1 Specific data is pinpointed, including its exact location on the paper or onto the display screen.1 Description of data to be input calculated and stored.1 Individual data items and calculation procedure in detail and these procedures will tell how to

produce the output and process the data.

It includes designing of the output for example designing a report like for a particular class what books have been given to the students. The format of the report will be like this:

1 Class _name:1 Student_ no:

1 Student _name:1 Book _no, Book _name, issue _date, return _date,

a)Design of Input In this, the display screens can be made like---

1 Main menu1 Issue of the book1 Return of the book1 Addition of the new books1 Display list of available reports

Or design of the input screen like:1 Date: / /2 Student no :1 Student name :1 Book no :1 Issue date :1 Return date :

And6 Store &exit 6 Correct 6 Return to menu 6 Next6 Previous

Design of files1 Student name1 Student no1 Class1 Issued book no1 Issue date1 Return date

b)Approval of design

When these designs are presented to the senior concerned people, the questions will be raised like what will be the speed of data inputting and retrieval of data. Apart from designing the queries like how the system will be used through display screens and reports will also be answered in this phase.

The detailed design will be passed to the programming staff so that the software development may begin, and these designers are responsible for providing programmers with complete and clearly outlined specifications that state what the software should do.

As programming starts, designers are available to answer the questions, and handle problems that come to programmers when using the design specifications.

Development of Software

Software developers may install or modify or install purchased commercial software or they may

write new, custom-designed programs. The decision about which to do depends upon the cost of each option, time available to write software and availability of programmers. Programmers are also responsible for documenting the program, including comments on why a particular procedure is designed in such a way.

Details of the design are given to the programmers who will translate the specification into the software like--

1 What will be the language used?1 The file descriptions like:

Field no size typeStud_name 10 alphabeticStud_no 3 numericBook_code 4 alphanumeric

Some adjustments can be made to the design details because of the programmer suggestions.

Systems Testing

During this phase the system is used experimentally to ensure that the software does not fail, i.e. it will run according to its specification and in a way users expect it to. Special data is input for processing and the results are examined to locate unexpected results. Persons other than the ones who write original programs perform testing. I.e. using persons who do not know how certain parts were designed or programmed it ensures more complete and unbiased testing and more reliable software.

This is testing the portions of the software & then before the system is implemented, all the components or processes are tested together to ensure that the entire system operates as required and should run error free.

Implementation

When systems personnel check out and put new equipment into use, train user personnel, install new application and construct any file, then we say it is implemented. Depending on the size of the organization, system developers may use the operation in only one area or department or with just one or two persons.

Once installed, applications are often used for many years. However both the organization and the user will change. And the environment will be different over weeks and months too. So, the application has to be undoubtedly maintained. I.e. modifications and changes will be made to the software, files or procedures to meet emerging user requirements. Organization and business environment is in continual change. The information system should keep pace, i.e. it could be said that implementation is an ongoing

process.

1 A new system is implemented1 Training is given to how to use the system including adding data, editing data and running the

reports.1 How the report are to be used1 For smooth running of the process, modifications are made to the OS.

Management Information System (MIS): Concept

The concept of the MIS has evolved over a period of time comprising many different facets of the organizational functions. MIS is a necessity of all the organizations.

The initial concept of MIS was to process data from the organization and presents it in the form of reports at regular intervals. The system was largely capable of handling the data from collection to processing. It was more impersonal, requiring each individual to pick and choose the processed data and use it for his requirements. This concept was further modified when a distinction was made between data and information. The information is a product of an analysis of data. This concept is similar to a raw material and the finished product. What are needed are information and not a mass of data. However, the data can be analyzed in a number of ways, producing different shades and specifications of the information as a product. It was, therefore, demanded that the system concept should be an individual-oriented, as each individual may have a different orientation towards the information. This concept was further modified, that the system should present information in such a form and format that it creates an impact on its user, provoking a decision, an action or an investigation. It was later realized that even though such an impact was a welcome modification, some sort of selective approach was necessary in the analysis and reporting. Hence, the concept of exception reporting was imbibed in MIS. The norm for an exception was necessary to evolve in the organization. The concept remained valid till and to the extent that the norm for an exception remained true and effective. Since the environment turns competitive and is ever changing, fixation of the norm for an exception becomes a futile exercise at least for the people in the higher echelons of the organization. The concept then evolved that the system should be capable of handling a need based exception reporting. This need maybe either of an individual or a group of people. This called for keeping all data together in such a form that it can be accessed by anybody and can be processed to suit his needs. The concept is that the data is one but different individuals can view it in different ways. This gave rise to the concept of DATABASE, and the MIS based on it.

The concept of MIS gives high regard to the individual and his ability to use the information. An MIS gives information through data analysis. While analyzing the data, it relies on many academic disciplines. These include the theories, principles and concepts from the Management Science, Management Accounting, Operations Research, Organizational Behavior, Engineering, Computer Science, Psychology and Human Behavior, making the MIS more effective and useful. These academic disciplines are used in designing the MIS, evolving the decision support tools for modeling and decision-making.

The foundation of MIS is the principles of management and its practices. MIS uses the concept of

management control in its design and relies heavily on the fact that the decision maker or the manager is a human being and is a human processor of information.

A Management Information System can be evolved for a specific objective if it is evolved after systematic planning and design. It calls for an analysis of a business, management views and policies, organization culture and the management style. The information should be generated in this setting and must be useful in managing the business. This is possible only when it is conceptualized as a system with an appropriate design. The MIS, therefore, relies heavily on the systems theory. The systems theory offers solutions to handle the complex situations of the input and output flows. It uses theories of communication, which helps to evolve a system design capable of handling data inputs, process, and outputs with the least possible noise or distortion in transmitting the information from a source to a destination. It uses the principles of System Design, viz., an open system or a closed system. An open system of the MIS offers an ability of continuous adjustment or correction in the system in line with the environmental changes in which the MIS operates. Such a design helps to keep the MIS tuned with the business management needs of the organization.

The concept, therefore, is a blend of principles, theories and practices of the Management, Information and System giving rise to single product known as Management Information System (MIS).

The physical view of the MIS can be seen as an assembly of several subsystems based on the databases in the organization. These subsystems range from data collection, transaction processing and validating, processing, analyzing and storing the information in databases. The subsystems could be at a functional level or a corporate level. The information is evolved through them for a functional or a departmental management and it provides the information for the management of business at the corporate level.

The MIS is a product of a multi-disciplinary approach to the business management. It is a product which needs to be kept under a constant review and modification to meet the corporate needs of the information. It is a prescribed product design for the organization. The MIS differs in two organizations involved in the same business. The MIS is for the people in the organization. Since the people in two different organizations are different, the design of MIS would also differ. The MIS model may be the same but it differs greatly in the contents.

The MIS, Therefore, is a dynamic concept subject to change, time and again, with a change in the business management process. It continuously interacts with the internal and the external environment of the business and provides a corrective mechanism in the system so that the changed needs of information are met with effectively. The MIS therefore is a dynamic design: the primary objective of which is to provide the information for decision making and it is developed considering the organizational fabric, giving due regard to the people in the Organization, the management functions and the managerial control.

The MIS model of the organization changes over a time as the business passes through several phases of developmental growth cycle. It supports the management of the business in each phase by giving the information, which is crucial in that phase. Every business has critical success factors in each phase of growth cycle and the MIS model gives more information on the critical success factors for decision making.

MIS: Definition

The Management Information System (MIS) is a concept of the last decade or two. It has been understood and described in a number of ways. It is also popularly known as the Information System, the Information and Decision System, the Computer-based Information System.

The MIS has more than one definition, some of which are given below. The MIS is defined as a system, which provides information support for decision making in the organization: -

1 The MIS is defined as an integrated system of man and machine for providing the information to support the operations, the management and the decision making function in the organization.

1 The MIS is defined as a system based on the database of the organization evolved for the purpose of providing information to the people in the organization.

1 The MIS is defined as a Computer -based Information System.

Though there are a number of definitions, all of them converge on one single point, i.e., the MIS is a system to support the decision making function in the organization. The difference lies in defining the elements of the MIS. However, in today's world, the MIS is a computerized business processing system generating information for the people in the organization to meet the information needs for decision making to achieve the corporate objectives of the organization.

In any organization, small or big, a major portion of the time goes in data collection, processing, documenting and communicating it to the people. Hence, a major portion of the overheads goes into this kind of unproductive work in the organization. Every individual in an organization is continuously looking for some information, which is needed to perform his/her task. Hence, the information is people-oriented and it varies with the nature of the people in the organization.

The difficulty in handling this multiple requirement of the people is due to a couple of reasons. The information is a processed product to fulfill an imprecise need of the people. It takes time to search the data and may require a difficult processing path. It has a time value and unless processed on time and communicated, it has no value. The scope and the quantum of information is individual-dependent and it is difficult to conceive the information as a. well-defined product for the entire organization. Since the people are instrumental in any business transaction. A human error is possible in conducting the same. Since a human error is difficult to control, the difficulty arises in ensuring a hundred per cent quality assurance of information in terms of completeness, accuracy, validity, timeliness and meeting the decision making needs.

In order to get a better grip on the activity of information processing, it is necessary to have a formal system. The management information system uses computers and communication technology to deal with these points of supreme importance.

1 Handling of a voluminous data. 1 Confirmation of the validity of data, and transaction. 1 Complex processing of data and multidimensional analysis. 1 Quick search and retrieval.

1 Mass storage. 1 Communication of the information system to the user on time.1 Fulfilling the changing needs of the information.

Role of MIS

The role of the MIS in an organization can be compared to the role of heart in the body. The information is the blood and MIS is the heart. In the body the heart plays the role of supplying pure blood to all the elements of the body including the brain. The heart works faster and supplies more blood when needed. It regulates and controls the incoming impure blood, processes it and sends it to the destination in the quantity needed. It fulfills the needs of blood supply to human body in normal course and also in crisis.

The MIS plays exactly the same role in the organization. The system ensures that an appropriate data is-collected from the various sources processed, and sent further to all the needy destinations. The system is expected to fulfill the information needs of an individual, a group of individuals, the management functionaries: the managers and the top management

The MIS satisfies the diverse needs through a variety of systems such as Query systems, Analysis Systems, Modeling Systems and Decision Support Systems. The MIS helps in Strategic Planning, Management Control, Operational Control and Transaction Processing.

The MIS helps the clerical personnel in the transaction processing and answers their queries on the data pertaining to the transaction, the status of a particular record and references on a variety of documents. The MIS helps the junior management personnel by providing the op erational data for planning, scheduling and control, and helps them further in decision making at the operations level to correct an out of control situation. The MIS helps the middle management in short term planning, target setting and controlling the business functions. It is supported by the use of the management tools of planning and control. The MIS helps the top manage ment in goal setting , strategic planning and evolving the business plans and their implemen tation .

The MIS plays the role of information generation, communication, problem identification and helps in the process of decision making. The MIS, therefore, plays a vital role in the management, administration and operations of an organization.

Impact of MIS

Since the MIS plays a very important role in the organization, it creates an impact on the organization’s functions, performance and productivity.

The impact of MIS on the functions is in its management. With a good MIS support, the management of marketing, finance, production and personnel becomes more efficient. The tracking and monitoring of the functional targets becomes easy. The functional managers are informed about the progress, achievements and shortfalls in the activity and the targets. The manager is kept alert by

providing certain information indicating the probable trends in the various aspects of business. This helps in forecasting and long-term perspective planning. The manager's attention is brought to a situation, which is exceptional in nature, inducing him to take an action or a decision in the matter. A disciplined information reporting system creates a structured database and a knowledge base for all the people in the organization. The information is available in such a form that it can be used straight away or by blending and analysis, saving the manager's valuable time.

The MIS creates another impact in the organization, which relates to the understanding of the business itself. The MIS begins with the definition of a data entity and its attributes. It uses a dictionary of data, entity and attributes, respectively, designed for information generation in the organization. Since all the information systems use the dictionary, there is common, understanding of terms and terminology in the organization bringing clarity in the communication and a similar understanding of an event in the organization.

The MIS calls for a systemization of the business operations for an effective system design. This leads to streamlining of the operations, which complicate the system design. It improves the administration of the business by bringing a discipline in its operations, as everybody is required to follow and use systems and procedures. This process brings a high degree of professionalism in the business operations.

Since the goals and objectives of the MIS are the products of business goals and objectives, it helps indirectly to pull the entire organization in one direction towards the corporate goals and objectives by providing the relevant information to the people in the organization.

A well designed system with a focus on the manager makes an impact on the managerial efficiency. The fund of information motivates an enlightened manager to use a variety of tools of the management. It helps him to resort to such exercises as experimentation and modeling. The use of computers enables him to use the tools and techniques, which are impossible to use manually. The ready-made packages make this task simpler. The impact is on the managerial ability to perform. It improves the decision making ability considerably.

Since the MIS works on the basic systems such as transaction processing and databases, the drudgery of the clerical work is transferred to the computerized system, relieving the human mind for better work. It will be observed that a lot of manpower is engaged in this activity in the organization. If you study the individual's time utilization and its application, you will find that seventy per cent of the time is spent in recording, searching, processing and communicating. This is a very large overhead in the organization. The MIS has a direct impact on this overhead. It creates an information-based work culture in the organization.

MIS and Academics

The management information system draws a lot of support from other academic disciplines too. The foundation of MIS is the management theory. It uses the principles and practices of management while designing the system, and gives due regard to the theory of organizational behavior.

It considers the human mind as a processor of information. While designing the report format and

forming communication channels, MIS takes into account the behavior of the manager as an individual and in a group. It gives due regard to the personal factors such as bias, thinking with a fixed frame of reference, risk aversion, strengths and weaknesses.

Another area of academics is operational research. The operational research is used for developing the models of management problem and they are then incorporated in the MIS as decision support systems. The inventory control, queuing theory, and resource programming are used in the MIS as decision support systems. The network theory is used for planning and controlling large projects. The application of PERT / CPM to a project planning are now easily possible through the MIS support.

In the area of accounting applications, it uses the accounting principles to ensure that the data is correct and valid. It uses the principles of double entry bookkeeping for balancing the accounts. It uses the accounting methodology for generating a trial balance, balance sheet and other books of accounts.

The MIS uses the communication theory in a significant manner. The principle of feedback is used while designing analysis and reporting systems. While designing the report format, attention is paid to avoid noise and distortions in the communication process. The MIS further relies heavily on the decision theory and the decision methodology. It uses different mathematical techniques to handle the situation of decision making under risk and uncertainty. It uses the method of decision-making under certainty directly for decision-making and action.

The MIS is based on database and uses the database for generating information. The three types of data structures, viz., hierarchical, network and relational database have roots in the mathematics and the set theory.

The MIS becomes rich in content and more useful when it becomes more and more a decision-making or decision-support system. This is possible when it builds decision making systems in MIS which in turn is possible if it draws tools, techniques, methods, rules and principles from pure science and application science, and use them as an integral part of the system. The MIS draws data from its own source and uses it in the application of a variety of tools and techniques to solve the management problems in business. The MIS uses knowledge from management, business management, mathematics, accounting, psychology, communication theory, operations research and probability theory for building processes, methods, and decision-support systems in designing business applications.

MIS and the User

Every person in the organization is a user of the MIS. The people in the organization operate at all levels in the hierarchy. A typical user is a clerk, an assistant, an officer, an executive or a manager. Each of them has a specific task and a role to play in the management of business. The MIS caters to the needs of all persons.

The main task of a clerk is to search the data, make a statement and submit it to the higher level. A clerk can use the MIS for a quick search and reporting the same to higher level. An assistant has the task of collecting and organizing the data, and conducting a rudimentary analysis of it. The MIS offers the user tools to perform these tasks. An officer has a role of integrating the data from different systems and

disciplines to analyze it and make a critical comment if anything adverse is found.

The MIS offers the methods and facilities to integrate the data and report the same in a proper format. An executive plays the role of a decision maker. He is in a position of responsibility and accountability; a position of a planner and a decision maker. He is responsible for achieving the targets and goals of the organization. The MIS provides facilities to analyze the data and offers the decision support systems to perform the task of execution. The MIS provides action-oriented information.

The manager has a position of responsibility and accountability for the business results. His management role expands beyond his management function. He is a strategist and a long-term planner. He is a person with a foresight, an analytical ability and is expected to use these abilities in the functions of top management. The MIS provides information in a structured or unstructured format for him to react. The MIS caters to his constant changing needs of information. The user of the MIS is expected to be a rational person and the design of the MIS is based on this assumption.

However, in reality the impact created on individuals by MIS is difficult to explain. The nature of the impact in a few cases is negative. However, this negative impact can be handled with proper training and counseling.

It is observed that at lower level, there is a sense of insecurity. As the MIS takes away the drudgery of search, collection, writing and reporting the data, the work vacuum, so created, is not easily filled, thus creating a sense of insecurity. To some extent the importance of the person is also lost, giving rise to a fear of non-recognition in the organization.

At the level of an officer and an executive, the MIS does the job of data manipulation and integration. It analyses the data in a predetermined manner. This means that the knowledge of business is transferred from an individual to the MIS and is made available to all in the organization. This change arising out of the MIS creates a sense of being neglected for knowledge, information and advice. The psychological impact is larger if the person is not able to cope up with this change by expanding or enriching the job and the position held by him.

The manager, holding a position in the top or middle management, suffers from fear of challenge and exposure. The MIS makes his competitors more effective as they have access to the information and have an ability to interpret. This leads to a situation where he is afraid that his position, decision and defense will be challenged and may be proved wrong sometimes. The risk of adverse exposure to the higher management also increases. The effects so far pointed out are all negative and they are seen only in a few cases.

The positive effects on the individuals at all levels are that they have become more effective operators. The time and energy, which was spent earlier in unproductive work, is now applied for a productive work. Some are able to use their analytical skills and knowledge with the information support for improving their position in the organization. Managers, having improved their decision-making ability, are able to handle the complex situations with relative ease. Some are benefited by improving their performance and being held in high esteem by the higher management.

The enterprising managers are able to use the systems and the models for trying out a number of

alternatives in a given problem situation. The impact of the MIS on people of the organization is phenomenal, as it has made the same body of people collectively more effective and productive.

Through the MIS, the information can be used as a strategic weapon to counter the threats to business, make businesses more competitive, and bring about the organizational transformation through integration. A good MIS also makes an organization seamless by removing all the communication barriers.

MIS and Information Technology

Translating the real concept of the MIS into reality is technically, an infeasible proposition unless computers are used. The MIS relies heavily on the hardware and software capacity of the computer and its ability to store, process, retrieve and communicate with no serious limitations.

The variety of the hardware having distinct capabilities makes it possible to design the MIS for a specific situation. For example, if the organization needs a large database and very little processing, a computer system is available for such a requirement. Suppose the organization has multiple business locations at long distances and if the need is to bring the data at one place, process, and then send the information to various locations, it is possible to have a computer system with a distributed data processing capability. If the distance is too long, then the computer system can be hooked through a satellite communication system. The ability of the hardware to store data and process it at a very fast rate helps to deal with the data volumes, its storage and access effectively. The ability of the computer to sort and merge helps to organize the data in a particular manner and process it for complex lengthy computations. Since the computer is capable of digital, graphic, word, image, voice and text processing, it is exploited to generate information and present it in the form, which is easy to understand for the infor-mation user.

The ability of a computer system to provide security of data brings a confidence in the management in the storage of data on a magnetic media in an impersonal mode. The computer system provides the facilities such as READ ONLY where you cannot delete or UPDATE. It provides an access to the selected information through a password and layered access facilities. The confidential nature of the data and information can be maintained in a computer system. With this ability, the MIS becomes a safe application in the organization.

The software, an integral part of a computer system, further enhances the hardware capability. The software is available to handle the procedural and nonprocedural data processing. For example, if you want to use a formula to calculate a certain result, an efficient language is available to handle the situation. If you are not required to use a formula but have to resort every time to a new procedure, the nonprocedural languages are available.

The software is available to transfer the data from one computer system to another. Hence, you can compute the results at one place and transfer them to a computer located at another place for some other use. The computer system being able to configure to the specific needs helps to design a flexible MIS.

The advancement in computers and the communication technology has made the distance, speed, volume and complex computing an easy task. Hence, designing the MIS for a specific need and

simultaneously designing a flexible and open system becomes possible, thereby saving a lot of drudgery of development and maintenance of the system. The concept of user-friendly systems and the end user computing is possible, making information processing a personalized function. However, the application of the management principles and practices in today's complex business world is possible only when the MIS is based on a computer system support.

The choice of the information technology is a backbone of the Management Information System. It is a critical, strategic decision affecting the business operations and prospects. It affects the people, the processes and productivity and helps organization emerge with a new work culture. Since, it is a high investment decision, the management would look at it from the returns it yields in the business.

The success of the MIS lies in how the information technology is implemented in the organization. A lot depends on the people and their ability to accept the new work style and the new work culture. All the implementations of the information technology lead to organizational transformation in the content and structure.

If the human face of the organization is not properly aligned to the information technology, the best information technology would fail in its implementation, adversely affecting effective development of the MIS. There is a risk in manipulating the information technology beyond a limit to suit the personnel of the organization or the budget limitation. Hence, the implementation of the information technology could be slow on the time scale to accommodate a certain critical constraint, but it should not be allowed to adver-sely influence the information technology decision itself.

The information technology changes are very rapid. To protect the investment in the information technology, the selection criteria should include features such as scalable architecture, upgradeable software, an open system environment, communication capability through gateways and interfaces and so on. A good management information system design requires a matching support from the information technology.

The recent major technological advances in communication such as Multimedia, Imaging, Graphical User Interfaces (GUI), Internet, Web etc., and the ability to access the data stored at different locations on the variety hardware of platforms would make MIS more attractive and efficient proposition. An intelligent user of information can demonstrate the ability of decision making, since his manipulative capability is considerably increased, with the information now being available on his desktop/laptop.