u1 and u2 u3 u4 u5 Management Information System(MIS)

IMFORMATIONIMFORMATION • Information is derived from data. Data is

nothing but a random, unorganized collection of indications or measurements of certain qualities or attribute relating to entity, recorded either in alphabetical, numerical, alphanumerical, voice, image,text or any other form.

MeaningMeaning

• Information System (IS) is basically an integrated system which transforms the data (input) into report (output) for facilitating decision making through processing and using various components of the information system Viz Hardware, Software, Database, procedures and personnel.

Evolution of InformatonEvolution of Informaton SystemSystem

OAS

TPS

MIS

AIKS/ES

ESS

DSS

Evolution of IS…Evolution of IS…

• TPS-Transaction Processing System

• OAS-Office Automation System

• MIS- Management Information System

• DSS-Decision Support System

• ESS-Executive Support System

• KS/ES – Knowledge / Expert System• AI- Artificial Intelligence

Concepts of ISConcepts of IS• DATA DATA DATA

Processing Logic

Computers

Human Beings

Data base

Decision Implementation

Performance

ChoiceDesignIntelligence

Monitoring / Feedback

Judgment/intuition

Skill/Experience

External Environment

Functions / Changes in ISFunctions / Changes in IS

TPS-Transaction Processing System

Information Inputs

• Transaction , Events

Processing

• Sorting; listing ,Merging ,Updating

Information Output

Detailed , Reports, Lists, Summaries

Office AutomationOffice Automation• Information Inputs

Documents , Schedules

• Processing

Document management ,Scheduling ,Communication

• Information Output

Document ,Schedules , Mail

Management information SystemManagement information System• Information Inputs

Summary Transaction data, High Volume Data, Simple Models

• Processing

Routine report, Simple Models, Low level Analysis


Summary and Exception Reports

Knowledge ExpertKnowledge Expert

• Information Inputs

Design Specification, Knowledge base

• Processing

Modeling ,Simulation


Model , Graphic

Decision Support SystemDecision Support System• Information Inputs

Low-volume Data , Analytic Models

• Processing

Interactive, Simulation , Analysis


Special reports, Decision Analysis, Responses to queries

Executive Support SystemExecutive Support System• Information Inputs

Aggregate Data, External , Internal

• Processing

Graphics, Simulation, Interactive


Projections , Response to Queries

Oraganizatioanl IS Oraganizatioanl IS // Functional Sub-system Functional Sub-system ….….

• Marketing• Manufacturing• Logistics• Personnel• Finance & Accounting• Information Processing• Top Management

Activities Sub-SystemActivities Sub-System

• Transaction Processing

• Operational Control

• Management Control

• Strategic Planning

MK

T

Pro

duct

ion

Logis

tics

Pers

onnel

F &

A

Info

Pro

c

R &

D

Strategic Planning

Mgt Control

Opt Control

Trans Control

Database management System

DATA BASE

MISComputer Science

Mgt AccountingMgt Science & Theory

Behavioral Science

Organization Theory

Operation Research

MIS Multi-disciplinary subject

Marketing Information Marketing Information SystemSystem

• Sales ForecastingSales Forecasting

• Sales PlanningSales Planning

• Customer AnalysisCustomer Analysis

• Sales AnalysisSales Analysis

Manufacturing Information SystemManufacturing Information System

• Production Planning

• Production Scheduling

• Cost control analysis

Human Resources Information Human Resources Information SystemSystem

• Planning Personnel requirements

• Analyzing Performance

• Salary Administration

Accounting & Finance Accounting & Finance Information SystemInformation System

• Financial Analysis

• Cost Analysis

• Capital Requirements Planning

• Income Measurement

Transaction Processing Transaction Processing SystemSystem

• Processing of Order

• Shipment

• Receipts

Information Processing Information Processing systemsystem

• Information System Planning

• Cost effective Analysis

Management Information Management Information System (MIS)System (MIS)

MeaningMeaning

MIS is the system, which makes MIS is the system, which makes available the right information to the right available the right information to the right person, at the right place, at right time, in person, at the right place, at right time, in right form and the right cost.right form and the right cost.

DEFINITIONDEFINITION• MIS is an “integrated user-machine system

for providing information to support operations, management and decision making function in an organization. The system utilizes computer hardware and software, manual procedures model for analysis, planning control and decision making and data base”- Davis and Olson

DefinitionDefinition

• MIS is “a combination of human and computer based resources which result in collection storage, retrieval, communication and use of data for the purpose of efficient management of operations and for business planning” - Kelly

MIS should take care these MIS should take care these points:points:

• Confirmation of the validity of data and transaction.• Complex processing of data and multidimensional

analysis.• Quick search and retrieval.• Mass Storage.• Communication of the information system to the user

on time.• Fulfilling the changing needs of the system

Role of MISRole of MIS

• MIS has become necessary due to the increased Business and Management Complexities. These complexities demand not only quantitative but qualitative decision making all manager as we know have to take decision under condition of risk, certainty or uncertainty. A good manager/decision maker is one who minimizes, if altogether the element of risk and uncertainty in decision making

Impact of MISImpact of MIS• MIS creates an information based work

culture in an organization.• With a good MIS support the management of

marketing, finance, production and personnel become more sufficient.

• A disciplined information reporting system creates a structured database and a knowledge based for all the people in the organization.

• The information is available in such a form that it can be used straight or by blending and analysis, saving the manager’s valuable time

Impact…Impact…• MIS creates another impact in the organization

by making it convenient to understand the business better.

• MIS are the product of business goal and objective ,it help indirectly to pull the entire organization in one direction towards the corporate goal and objective by providing the relevant information to the people of the organization.

• The use of computers help manager to use the tools and techniques, which are impossible to use manually.

Characteristics Of MISCharacteristics Of MIS

• MIS was envisioned as a single, highly integrated system, bringing together data processing for all organizational function. MIS consists of Functional Sub-system and Activities Sub-system

Information ProcessInformation Process• Capturing• Verifying• Classifying• Arranging/Sorting• Summarizing• Calculating• Retrieving • Reproducing• Dissemination/Communication

Types of InformationTypes of Information

• Strategic Level

• Tactical Level

• Operational level

Attributes of InformationAttributes of Information• Timely availability • Accuracy• Reliability• Periodicity /Frequency• Verifiability• Pertinent /Relevant• Completeness• Comprehensibility• Clarity• Consistency• Brevity• Cost Effectiveness

Information Competitive Information Competitive advantageadvantage

• “Competitive advantage is about changing the balance of power between a firm and its competitor in the firm’s favor”

• “Competitive advantage could be usually embodied in either a product or a service that has most added value to customer and that is unavailable from the competition”

• “As an internal system that deliver benefits to a firm, not enjoyed by its competition”

Competitive EnvironmentCompetitive Environment• Information , Information Technology

and resultant Information Revolution – These terms , Incidentally , would be used Interchangeability in our present discussions are changing the rules of the game and creating new paradigm shift, giving companies new way to out-perform their rivals, This in turn , facilitates the organizations gaining competitive advantage

Contemporary Approaches ISContemporary Approaches IS

• Technical Approach

• Behavioral Approach

• Socio-Technical Approach

Information is a Strategic ResourceInformation is a Strategic Resource

‘Information is scarce ,has significant cost and has alternative use- bestowing competitive edge on the organization which possesses it.”

Porter and Miller PostulatesPorter and Miller PostulatesAccording to Porter and Miller .Information tech

is affecting competition in three vital ways

1. Changes in Industry Structure

2. Spawning of New Business

3. New Ways of Doing the Things– Functional Uses

– Strategic Uses

DECISION SUPPORT DECISION SUPPORT SYSTEMSYSTEM

IntroductionIntroduction

The Decision Support System are The Decision Support System are interactive information system, that rely interactive information system, that rely on an integrated set of user-friendly on an integrated set of user-friendly hardware and software tools to produce hardware and software tools to produce and present information that is targeted to and present information that is targeted to support the management in the decision support the management in the decision makingmaking

Introduction….Introduction….

• MIS is considered useful for structured decision, Decision Support System is considered to be more useful for decision at the tactical/strategic level ,where decision makers are often confronted with complex decisions which are beyond their human abilities to synthesize properly the factors involved.

COMPONENTS Of DSSCOMPONENTS Of DSS• The Database

• A Model Base

a, Behavioral Model

b, Management Science Model

c, Operations Research model

• DSS Software System

Components …Components …

• The Data Base

The DSS database is a collection of current or historical data from a number of applications or group. It is organized in such a manner that it provides easy access for a range of application.

The Model BaseThe Model Base• A Model is an abstract representation that

illustrates the components or relationships of a phenomenon. A model can be physical model, a mathematical model or a verbal model.

DSS

Operations research ModelMgt Science ModelBehavioral model

A model base …A model base …

• Behavioral Model

The focus of behavioral models of DSS is on studying /understanding the behavioral / trends amongst the variable ,Decision could then be arrived at with due regards to such behavioral relationship

Eg: Trend Analysis, Forecasting, Co-relation, Regression


• Management Science Model

These models are developed based upon Principles of Management ,Management Accounting and Econometrics among others.

Eg: Budgetary System, Cost Accounting, Capital Budgeting. Inventory management ..


• Operations research Model

Operations research is basically application of mathematical formulae for arriving at optimum solutions. As such Operations Research Models are mathematical models.

Eg: Linear programming, ABC analysis, Mathematical Programming Techniques, Material Requirement Planning ..

The DSS System SoftwareThe DSS System Software

• The DSS Software System permits easy interaction between the users of the system and the DSS database and models base .The DSS software system manages the creation, storage and retrieval of model in the model base and integrates them with the data in the DSS database. The DSS Software System also provides a graphic, easy to use ,flexible user interface that supports the dialogue between the user and DSS.

Core Capabilities Of DSSCore Capabilities Of DSS

• Representations

• Operations

• Memory Aids

• Control Aids

Factors Influencing Success and Factors Influencing Success and Failure in DSSFailure in DSS

• User Training /Involvement

• User Experience

• Length of Use (Familiarity)

• Top Management Support

• Orientation towards Top Management

• Novelty of Application

• Return on Investment

STRUCTURE OF DSSSTRUCTURE OF DSS

• The Database and Its Management

• The Model base and Its Management

• The Hardware

• The User System Interface

Desirable characteristics of DSSDesirable characteristics of DSS• Should aid the decision maker in decision

• Should be able to address semi/un-structured decision making situation

• Should support decision maker particularly at tactical/strategic level

• Should enable users to use DSS without assistance form MIS/Technical professionals

• Should have capability to interface with corporate database

• Should be flexible to accommodate verity of management styles etc…

DSS ApproachDSS Approach • Raw data and status access

• General Analysis capabilities

• Casual model ie forecasting ,diagnosis

• Solutions Suggestions, Evaluation

• Solution Selection

Fundamental DSS Program StructureFundamental DSS Program Structure

DialogueMgt

ModelMgt

Data Mgt

DSSDatabase

Modelbase

EnterpriseData

External Data source

USER

Components of DSS ProgramsComponents of DSS Programs

• Dialogue Management

• Model Management

• DataBase Management

Model base

EternalData

EnterpriseData

Local DSSMgt

Commandprocessor

Model Execution

UserInterface

DatabaseInterface

Model baseMgt

DialogueControl

RequestTranslator

InterfaceData services

Query/DatabaseCommend interpreter

DBMSData

Dictionary

USER

Type of DSSType of DSS

• Status Inquiry System

• Data Analysis System

• Information Analysis System

• Accounting System

• Model Based System

Group Decision Support SystemGroup Decision Support System

“GDSS is an interactive computer-based system that facilitates the solution of unstructured problem by a set of decision-makers working together as a group”

Components of GDSSComponents of GDSS

• Hardware

• Software

• People and Procedure

EXPERT SYSTEMEXPERT SYSTEM• The Expert System technology basically

derives from the research discipline of Artificial Intelligence , a branch of computer science concerned with the design and implementation of Programmes which are capable of emulating human cognitive skills such as problem-solving ,visual perception and language understanding

Expert SystemExpert System• Definition

“An Expert System is computer programme that represents and reasons with knowledge of some subject specialist with a view to solving problems or giving advice” According to Peter Jackson

Expert systemExpert system

• Definition

“ Is a series of computer programmes that attempt to mimic human thought , behavior in a specific area that has successfully been solved by human expert”

Components of Expert SystemComponents of Expert System

USER

Advice andexplanation

Description ofNew course

UserInterface

Knowledge Base

Interfaceengine

Knowledgebase

AcquisitionFacility

Experts

Capabilities of Expert SystemCapabilities of Expert System

• Capturing of Expertise

• Codifying the Expertise

• Duplicating and Transferring the Expertise

• Saving the Human Expert’s time

• Saving on maintenance and updating of the knowledge base

Characteristics of Expert SystemCharacteristics of Expert System• Ability to explain their reasoning or

suggested decisions

• Ability to display “Intelligent” behavior

• Ability to draw conclusion from complex relationship

• Ability to provide “Portable knowledge”

• Difficulty to maintain

• Ability to deal with certainty

• Limited to relatively narrow problems etc..

Expert system applicationExpert system application• Aerospace Technology (NASA)

• Banking and Finance

• Education

• Food Industry

• Personnel Management

• Security Analysis

• Tax Planning

• Quality control and Monitoring

• Etc…

When will go in for expert system?When will go in for expert system?

• Will the system help reduce risk significantly?

• Will the system provide a high pay-off?

• Will the system performance be more consistent than human expert?

• Will the system enable the expertise to be made available multiple location?

• Is the expertise really rare or expensive?

• Will the system enable developing the solution faster than human experts/

ARTIFICIAL INTELLIGENCEARTIFICIAL INTELLIGENCE

Meaning

Artificial Intelligence (AI) is basically a technology which helps /facilitates the application of computers to areas that require knowledge , perception , reasoning ,understanding and cognitive abilities which distinguish to the human behavior from machines like computers.

AIAI Definition

“Ai is a branch of computer science that is concerned with the automation of intelligent behavior “

“AI is series of related technologies that attempt to simulate and reproduce human behavior ,including thinking ,speaking ,feeling ,reasoning”

Pre-Requests of AIPre-Requests of AI • Understand what is “Common Sense”

• Understand “Facts” and relationships among “Facts”

• Be able to manipulate “Qualitative” data

• Be able to deal with exceptions and discontinuity

• Be able to interface with humans in “Free-Format” fashion

• Be bale to deal with new situations based on previous learning

AI related technologiesAI related technologies • Expert Systems

• Fuzzy Logic

• Intelligent agents

• Natural Language Processing

• Neural Network

• Robotics

• Speech Recognition

• Vision Recognition System

• Learning System

AI Onion ModelAI Onion Model

Natural languageprocessing

Co

mp

uter

vision

Expert System

Pro

blem

So

lving

plan

nin

g

HeuristicSearch

Modeling andRepresentationOf knowledge

AILanguage And tools

Common sense Reasoning and logic

AI ApplicationsAI Applications• Manufacturing /production planning and

scheduling

• Project management

• Factory management

• Sales , distribution and field service

• Financial management

• Geology

• Criminology

• Portfolio management

Precaution for AIPrecaution for AI• Cost

• Personnel with required skills

• Corporate management attributes and most importantly

• The demonstration of verity of commercial AI success stories to be a role model for other to follow.

INFORMATION TECHNOLOGYINFORMATION TECHNOLOGY

• Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numeric information by a micro-electronics-based combination of computing and telecommunication

Information Technology Information Technology ….….

• Information technology must be conceived of broadly to encompass the information that business create and use as well as a wide spectrum of increasingly convergent and linked technologies that process the information. In addition to computers, than, data recognition equipment, communication technologies, factory automation, and other hardware and services are included

Role /Capabilities of ITRole /Capabilities of IT• Transactional• Geographical• Automational• Analytical• Informational• Sequential• Knowledge• Tracking• Disintermediation

Computer system CombinationComputer system Combination

• Hardware : Physical devices

• Software : Instructions

• Data/Information : Data is facts collected

Components of ComputerComponents of Computer

Output

ALU

CU

Primary Storage

Secondary Storage

Input

CPU

Characteristics of a ComputerCharacteristics of a Computer

• Automatic• Speed• Accuracy• Diligence• Versatility• Reliability• Storage• No feeling/No emotion/No Intelligence

Physical media to link devicesPhysical media to link devices

ALU

CU

PrimaryStorage

• KB• Mouse• Touch Screen• Automation

• Monitor• Printer• Plotter• Audio

• Magnetic tape• Magnetic Disk• Optical disk

Input Output Secondary Storage

DATA BUSADDRESS BUSCONTROL BUS

Generations of ComputersGenerations of Computers

• First Generation (1946-1956)

• Second Generation (1957-1963)

• Third Generation (1964-1979)

• Fourth Generation (1980-onwards)

• Fifth Generation (new)

Computer CategoriesComputer Categories

• Super Computer.

• Main Frame Computer.

• Mini Computer

• Micro Computer

SOFTWARESOFTWARE Computer software divided in to two;

• System Software;

# Operating system

# Language translators

# Utility program

# Communication software

• Application Software;

Operating SystemOperating System

Hardware

System software

Application Software

DOSWin 95Win NTWin XPOS/2UnixLinux

System Software…System Software…• Language Translation; The programming language like Cobol, Fortran, C etc..

• Utility Programs ; Utility Programs are pre-written programs, they help users

in system maintenance task and in performing tasks of routine like sorting, listing etc..

• Communication Software ; Enable transfer of data/program from one computer to

the another in network environment where multiple computer are interconnected

NETWORKNETWORK• Computer Networking is the process of

providing connectivity between/among two or more computer/computer system to enable users to communicate with each other, share hardware/software resources and not get constricted by the stand-alone system.

Network TopologiesNetwork Topologies

• Bus Topologies

• Star Topologies

• Ring Topologies

Network can be classified according to the geographical scope or areaCovered by services provided and also by share or topology, mainly into

Bus TopologiesBus Topologies

Computer 1

Computer 2 Computer 3 Computer 4

Back bone

Star TopologiesStar Topologies

Computer 2

Computer4

Computer 3

Computer 1

HUB /Switch

Ring TopologiesRing Topologies

Comp 7

Comp 2

Comp 6Comp 4

Comp 3

Comp 8

Comp 5

Comp 1

Type of NetworkType of Network

• Local Area Network (LAN)

• Metropolitan Area Network (MAN)

• Wide Area Network (WAN)

• Value Added Network (VAN)

Electronic Data Interchange Electronic Data Interchange (EDI)(EDI)

As per American National Standards As per American National Standards Institute “Electronic Data Interchange (EDI) Institute “Electronic Data Interchange (EDI) is the transmission, in a standard syntax, of is the transmission, in a standard syntax, of unambiguous information of business or unambiguous information of business or strategic significance between computer of strategic significance between computer of independent oraganisation. The users of independent oraganisation. The users of EDI do not have change their internal data EDI do not have change their internal data bases. However ,users must translate this bases. However ,users must translate this information to or from their own computer information to or from their own computer system formats , but this translation software system formats , but this translation software has to be prepared only once.”has to be prepared only once.”

Advantage of EDIAdvantage of EDI

• Issue and receive order faster

• Make sales more easily

• Get paid sooner

• Minimize the capital tied up in inventory

• Reduce letters and memos

• Decrease enquiries make bulk update

How EDI worksHow EDI works

Your Application EDI Translator Trading partner

Centralized and DecentralizedCentralized and DecentralizedDistributed ExecutionDistributed Execution

• centralized, or centralised system, is one in which most communications are routed through one or more major central hubs. Such a system allows certain functions to be concentrated in the system's hubs, freeing up resources in the peripheral units. Another benefit of centralization is the ease of maintaining accurately updated lists of data that can be easily accessed from all points.

Centralization….Centralization….

• Centralization's weaknesses are centered around the system's heavy reliance on a few central components; if the system's hubs are put out of operation, either accidentally or through hostile action, the system and its peripheral components are severely affected

DecentralizationDecentralization

• Decentralization or Decentralisation the process of dispersing decision-making governance closer to the people and/or citizen. It includes the dispersal of administration or governance in sectors or areas like engineering, management science, political science, political economy, sociology and economics. Decentralization is also possible in the dispersal of population and employment

DistributedDistributed• Distributed computing is a field of

computer science that studies distributed systems. A distributed system consists of multiple autonomous computers that communicate through a computer network. The computers interact with each other in order to achieve a common goal. A computer program that runs in a distributed system is called a distributed program, and distributed programming is the process of writing such programs.

Supply Chain Management (SCM)Supply Chain Management (SCM)

A supply chain involves all activities associated with moving goods from the raw materials stage to the finished product and end user.

SCM is defined “ as the integration of business processes from end user through original suppliers that provide products, services and information that add values for costumers.”

SCM ObjectivesSCM Objectives • Reduces cost per units for customer

• Minimize order to delivery cycle time

• Reduce waste and duplication

• Ensure superior delivery

IT system Supply chain IT system Supply chain managementmanagement

• Timely product development and new product introduction

• Reduction in own inventory as well as channel intermediary’s inventory

• Reproduction in communications and customer support costs

• Ability to improve traditional products and customer relationship through customization

Impact of SCM in companiesImpact of SCM in companies • Channel Relationship• Flow of Information• Business processes• Inventory• Production• Distribution• Product design• International Operations

IS Security ChallengesIS Security Challenges

• Unauthorized reading of data (Theft of information)

• Unauthorized modification of data

• Unauthorized destruction of data

Why break IT system security ?Why break IT system security ?

• Revenge

• Money

• A shot at /of notoriety

• The challenges of doing “IT”

IS Security ThreatsIS Security Threats • The External Threats

Internet connection

Remote Dial -in Capabilities

The Internal Threats

Password

User termination

Users information

Access Reviews etc…

How to avoid Internet threatsHow to avoid Internet threats

OfficeNetwork

Internet F

irewall

Avoiding online riskAvoiding online risk• Firewall

• Encryption

Hardware encryption

Software encryption

• Message Authentication

• Site Blocking