MANAGEMENT INFORMATION SYSTEM

Module II

JOB THOMAS

CONCEPT OF DATA AND INFORMATION

Data are facts, events, and transactions which have been recorded. They are basically the raw inputs which further get processed to become information.

When facts are filtered through one or more processes (human or system), and are ready to give certain kind of details… they are the information.

Processed data when presented in some useful and meaningful form, it is actually the information we are looking at. Ap

propriate Data

Accurate Information

Relevant Decision

DIFFERENCE BETWEEN DATA & INFORMATION?

To ensure effective & efficient decision making leading to prosperity of the organization.

Data Information

Raw facts Processed facts

Dead stored facts Live presented facts

Inactive (only exists in the backend)

Active (being processed data for knowledge base)

Technology oriented Business oriented

Why do we require information?

CHARACTERISTICS OF PERFECT INFORMATION

Relevant Accurate Complete Understandable

WHAT IS MANAGEMENT INFORMATION

Useful information for management decisions

Comprises processed data (information), necessary for making management decisions and generally gives output in the form of tables, matrix, reports, dashboards, graphs, trends, etc for logical and analytical comparisons.

Viz. Market trend reports, sales report, IT application usage reports, Management dashboards, business information reports, research reports, etc.

WHAT IS MIS?

Management Information System

MIS is basically a software tool which gives a holistic report of processed information based on which management can take certain crucial decision on which strategy and tactics could be figured out

MIS provides information that is needed to manage organizations efficiently and effectively

MIS is any organized approach for obtaining relevant and timely information on which managerial decisions are based

MIS facilitates the decision making process and enable the organizational planning, control, and operational functions to be carried out effectively

MIS is a study of how individuals, groups, and organizations evaluate, design, implement, manage, and utilize systems to generate information to improve efficiency and effectiveness of decision making, including systems termed decision support systems, expert systems, and executive information systems.

People

Data/Information

Technology

WHAT IS MIS?

People

Data/Informati

on

Technology

Right Information To Right Person

At Right Place At Right Time

In the Right Form At Right Cost

ROLE OF MIS?• Effective decision making based upon:

• Quality analysis• Cost & budget analysis• Risk analysis• Market analysis• Inventory analysis• SWOT analysis• Stakeholder analysis• Feedback analysis• Behavior analysis

• Report & Dashboard preparation

ROLE OF INFORMATION SYSTEM IN CURRENT BUSINESS SCENARIOS In the emerging, fully digital firm

Significant business relationships are digitally enabled and mediated

Core business processes are accomplished through digital networks

Key corporate assets are managed digitally

Digital firms offer greater flexibility in organization and management

Time shifting, space shifting

ROLE OF INFORMATION SYSTEM IN CURRENT BUSINESS SCENARIOS

Growing interdependence between ability to use information technology and ability to implement corporate strategies and achieve corporate goals

Business firms invest heavily in information systems to achieve six strategic business objectives:

Operational excellence New products, services, and business models Customer and supplier intimacy Improved decision making Competitive advantage Survival

ROLE OF INFORMATION SYSTEM IN CURRENT BUSINESS SCENARIOS Operational excellence:

Improvement of efficiency to attain higher profitability Information systems, technology an important tool in achieving greater

efficiency and productivity Wal-Mart’s Retail Link system links suppliers to stores for superior

replenishment system

New products, services, and business models: Business model: describes how company produces, delivers, and sells

product or service to create wealth Information systems and technology a major enabling tool for new

products, services, business models Examples: Apple’s iPod, iTunes, and iPhone, Netflix’s Internet-based DVD

rentals

ROLE OF INFORMATION SYSTEM IN CURRENT BUSINESS SCENARIOS

Customer and supplier intimacy: Serving customers well leads to customers returning, which raises revenues and

profits Example: High-end hotels that use computers to track customer preferences and

use to monitor and customize environment

Intimacy with suppliers allows them to provide vital inputs, which lowers costs Example: J.C.Penney’s information system which links sales records to contract

manufacturer Improved decision making

Without accurate information: Managers must use forecasts, best guesses, luck Leads to: Overproduction, underproduction of goods and services Misallocation of resources Poor response times Poor outcomes raise costs, lose customers Example: Verizon’s Web-based digital dashboard to provide managers with real-time data on

customer complaints, network performance, line outages, etc

ROLE OF INFORMATION SYSTEM IN CURRENT BUSINESS SCENARIOS

Competitive advantage

Delivering better performance Charging less for superior products Responding to customers and suppliers in real time Example: Toyota and TPS (Toyota Production System) enjoy a considerable advantage

over competitors – information systems are critical to the implementation of TPS

Survival

Information technologies as necessity of business May be: Industry-level changes, e.g. Citibank’s introduction of ATMs Governmental regulations requiring record-keeping Examples: Toxic Substances Control Act, Sarbanes-Oxley Act

SCOPE…. INSIGHT

Operational excellence• Improvement

of efficiency to attain higher profitability & market growth

New products, services, and business models• Enabled by

proper SWOT analysis and technology inclusion

Customer and supplier intimacy• Serving customers

smartly raises revenues and profits

• Better communication with suppliers lowers costs

Improved decision making• Accurate

information enables in better decision making

SYSTEM DEVELOPMENT LIFE CYCLE

What is SDLC? A systemic strategy for large-scale

development projects. A systemic process in four phases to develop

an information system.

Planning

Analysis

Design

Implementation

THE IMPORTANCE OF SYSTEMIC METHODOLOGY

The pitfalls of piecemeal adoption are avoided, no elements are left out!

All relevant stakeholders and information are included, no one is left out!

Planning

Analysis

Design

Implementation

SYSTEM DEVELOPMENT LIFE CYCLE

According to Dennis, Wixom, and Tegarden (2009) “the systems development life cycle (SDLC) is the process of understanding how an information system (IS) can support business needs by designing a system, building it, and delivering it to users” (p. 2).

SDLCPHASE

1. Do a feasibility study and look at options. Economical (Can we afford to do this? Will it

benefit our organization?) Organizational and Operational (Will they use

it? Do they need it?) Technical (Can we build it? Do we have the

technology to support it?)

2. Create a project plan. A plan will keep the project on track A plan can be used for evaluation .

Planning

SDLC PHASE

1. Analyze by breaking down into parts (draw a diagram).

2. Gather requirements by talking to all stakeholders and technical providers.

3. Create a proposal to present to stakeholders.

Analysis

SDLC PHASE

1. Decide if the system will be created in house or out sourced.

2. Identify how it will operate and how it will be used by the end users.

3. Reexamine the feasibility study done in the Analysis Phase.

Design

SDLC PHASE

1. The system is built or purchased and tested.

2. Training is implemented for end users.

3. A technical support plan is put into place.

4. Use by end users is evaluated.

Implementation

FILE ORGANIZATION The database is stored as a collection of files. Each

file is a sequence of records. A record is a sequence of fields.

One approach:assume record size is fixedeach file has records of one particular type only different files are used for different relationsThis case is easiest to implement; will consider variable length records later.

FIXED-LENGTH RECORDS Simple approach: Store record i starting from byte n (i – 1), where n is

the size of each record. Record access is simple but records may cross blocks

Modification: do not allow records to cross block boundaries

Deletion of record i: alternatives: move records i + 1, . . ., n

to i, . . . , n – 1 move record n to i do not move records, but

link all free records on afree list

FREE LISTS Store the address of the first deleted record in the file header. Use this first record to store the address of the second deleted

record, and so on Can think of these stored addresses as pointers since they

“point” to the location of a record. More space efficient representation: reuse space for normal

attributes of free records to store pointers. (No pointers stored in in-use records.)

VARIABLE-LENGTH RECORDS

Variable-length records arise in database systems in several ways: Storage of multiple record types in a file. Record types that allow variable lengths for one or

more fields. Record types that allow repeating fields (used in

some older data models).

VARIABLE-LENGTH RECORDS: SLOTTED PAGE STRUCTURE

Slotted page header contains: number of record entries end of free space in the block location and size of each record

Records can be moved around within a page to keep them contiguous with no empty space between them; entry in the header must be updated.

Pointers should not point directly to record — instead they should point to the entry for the record in header.

ORGANIZATION OF RECORDS IN FILES Heap – a record can be placed anywhere in the file

where there is space Sequential – store records in sequential order, based

on the value of the search key of each record Hashing – a hash function computed on some

attribute of each record; the result specifies in which block of the file the record should be placed

Records of each relation may be stored in a separate file. In a multitable clustering file organization records of several different relations can be stored in the same file Motivation: store related records on the same block

to minimize I/O

SEQUENTIAL FILE ORGANIZATION Suitable for applications that require sequential processing of the entire file

The records in the file are ordered by a search-key

SEQUENTIAL FILE ORGANIZATION (CONT.) Deletion – use pointer chains

Insertion –locate the position where the record is to be inserted if there is free space insert there if no free space, insert the record in an overflow block In either case, pointer chain must be updated

Need to reorganize the file from time to time to restore sequential order

MULTITABLE CLUSTERING FILE ORGANIZATION (CONT.) Store several relations in one file using a multitable

clustering file organization Multitable clustering organization of customer and

depositor:

good for queries involving depositor customer, and for queries involving one single customer and his accounts

bad for queries involving only customer

DATABASE MODELS

Hierarchical model: obsolete Network model: obsolete Relational model

In a relational model, data are organized in two-dimensional tables called relations.

Figure 14-3

Hierarchical model

Figure 14-4

Network model: graph

Figure 14-5

Relational model

RELATIONALMODEL

RELATIONALMODEL

RDBMS

RDBMS: the relational database management system (RDBMS)

Relation: a relation is a 2D table has the following features:NameAttributesTuples

Figure 14-6

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DESIGN METHODOLOGY

Structured approach that uses procedures, techniques, tools, and documentation aids to support and facilitate the process of design

Three main phases Conceptual database design Logical database design Physical database design

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DATABASE DESIGN Conceptual database design

Process of constructing model of data used in an enterprise, independent of all physical considerations

Logical database designProcess of constructing model of data used in

an enterprise based on specific data model (e.g. relational), independent of particular DBMS and other physical considerations

Physical database designProcess of producing description of

implementation of database on secondary storage Describes base relations, file organizations, and indexes Design used to achieve efficient access to data, and any

associated integrity constraints and security measures

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CRITICAL SUCCESS FACTORS IN DATABASE DESIGN

Work interactively with users as much as possible

Follow structured methodology throughout data modeling process

Employ data-driven approach Incorporate structural and integrity

considerations into data models Combine conceptualization, normalization,

and transaction validation techniques into data modeling methodology

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CRITICAL SUCCESS FACTORS IN DATABASE DESIGN

Use diagrams to represent as much of data models as possible

Use Database Design Language (DBDL) to represent additional data semantics

Build data dictionary to supplement data model diagrams

Be willing to repeat steps

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OVERVIEW DATABASE DESIGN METHODOLOGY

Conceptual database design Step 1 Build conceptual data model

Step 1.1 Identify entity types Step 1.2 Identify relationship types Step 1.3 Identify and associate attributes with

entity or relationship types Step 1.4 Determine attribute domains Step 1.5 Determine candidate, primary, and

alternate key attributes

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OVERVIEW DATABASE DESIGN METHODOLOGY

Step 1 Build conceptual data model (continue) Step 1.6 Consider use of enhanced modeling

concepts (optional step) Step 1.7 Check model for redundancy Step 1.8 Validate conceptual model against user

transactions Step 1.9 Review conceptual data model with user

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OVERVIEW DATABASE DESIGN METHODOLOGY

Logical database design for the relational model

Step 2 Build and validate logical data model Step 2.1 Derive relations for logical data model Step 2.2 Validate relations using normalization Step 2.3 Validate relations against user

transactions Step 2.4 Define integrity constraints

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OVERVIEW DATABASE DESIGN METHODOLOGY

Step 2 Build and validate logical data model (continue) Step 2.5 Review logical data model with user Step 2.6 Merge logical data models into global

model (optional step) Step 2.7 Check for future growth

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OVERVIEW DATABASE DESIGN METHODOLOGY

Physical database design for relational database

Step 3 Translate logical data model for target DBMS Step 3.1 Design base relations Step 3.2 Design representation of derived data Step 3.3 Design general constraints

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OVERVIEW DATABASE DESIGN METHODOLOGY

Step 4 Design file organizations and indexes Step 4.1 Analyze transactions Step 4.2 Choose file organization Step 4.3 Choose indexes Step 4.4 Estimate disk space requirements

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OVERVIEW DATABASE DESIGN METHODOLOGY

Step 5 Design user views Step 6 Design security mechanisms Step 7 Consider the introduction of

controlled redundancy Step 8 Monitor and tune the operational

system

END OF PRESENTATION