Pan African Enetwork Project: Master of Finance and Control Management Information System

PAN African eNetwork Project
Master of Finance and Control

Management Information System
Semester - II
Prof.- Nishant K Rai
Copyright © Amity University

1
Agenda
• General Discussion
• Instructor’s Profile
• Syllabus Review
• Lecture I

Syllabus Review
• Module I
• Role of data and information, Organization structures, Business Process, Systems
Approach and introduction to
• Information Systems.
• Module II
• Resources and components of Information System, integration and automation of
business functions and developing business models. Classification of Information
System
• Module III
• Architecture, development and maintenance of Information Systems, Centralized and
Decentralized Information Systems, Factors of success and failure, value and risk of
IS.
• Module IV
• Decision Making Process, Decision Support Systems, Models and approaches to DSS
• Module V
• Introduction to Total Quality Management and Enterprise Resource Planning. ERP:
role, advantages, reasons of success and failure,
• Module VI
• Financial Management Information Systems in Developing Countries by International
Monetary Fund

References
• Self Study Material
• Text & References:
• Text:
• MIS: Managing the digital firm, Kenneth C.Landon, Jane P. Landon,
Pearson Education.
• References:
• Management Information Systems, Effy OZ, Thomson Leaning/ Vikas
Publications
• Management Information Systems, James A. O’Brein, Tata McGraw-Hill
• Management Information System, W.S Jawadekar, Tata Mc Graw Hill
Publication.
• Management Information System, David Kroenke, Tata Mc Graw Hill
Publication.
• MIS: Management Perspective, D.P. Goyal, Macmillan Business Books.
• MIS and Corporate Communications, Raj K. Wadwha, Jimmy Dawar, P.
Bhaskara Rao, Kanishka

Lecture I
• Module I
• Role of data and information, Organization
structures, Business Process, Systems
Approach and introduction toInformation
Systems.
• Module II
• Resources and components of Information
System, integration and automation of business
functions and developing business models.
Classification of Information System

Module I
• Data
• Information
• Meaning of data, information and
knowledge

Information Systems
• Why Do People Need Information?
– Individuals - Entertainment and

enlightenment
– Businesses - Decision making, problem

solving and control

Data, Information,
and Systems
• Data vs. Information
– Data
• A “given,” or fact; a number, a statement, or a picture
• Represents something in the real world
• The raw materials in the production of information
– Information
• Data that have meaning within a context
• Data in relationships
• Data after manipulation

Data, Information,
and Systems
• Data Manipulation
– Example: customer survey

• Reading through data collected from a customer
survey with questions in various categories would
be time-consuming and not very helpful.
• When manipulated, the surveys may provide
useful information.

Data, Information,
and Systems
• Generating Information
– Computer-based ISs take data as raw material,
process it, and produce information as output.
Figure 1.1 Input-process-output

Data, Information,
and Systems
• Information in Context
Figure 1.2 Characteristics of useful information

Data, Information,
and Systems
• What Is a System?
– System: A set of components that work together to achieve a
common goal
– Subsystem: One part of a system where the products of more

than one system are combined to reach an ultimate goal
– Closed system: Stand-alone system that has no contact with

other systems
– Open system: System that interfaces with other systems

Data, Information,
and Systems
Figure 1.3 Several subsystems make up this corporate accounting

system.

Data, Information,
and Systems
• Information and Managers
– Systems thinking
• Creates a framework for problem solving and
decision making.
• Keeps managers focused on overall goals and
operations of business.

Data, Information,
and Systems
Figure 1.5 Qualities of humans and computers that contribute to

synergy

Data, Information,
and Systems
• The Benefits of Human-Computer Synergy
– Synergy
• When combined resources produce output that exceeds the
sum of the outputs of the same resources employed
separately
– Allows human thought to be translated into efficient

processing of large amounts of data

Data, Information,
and Systems
Figure 1.6 Components of an information system

Data, Information,
and Systems
• The Four Stages of Data Processing
– Input: Data is collected and entered into computer.
– Data processing: Data is manipulated into information

using mathematical, statistical, and other tools.
– Output: Information is displayed or presented.
– Storage: Data and information are maintained for later

use.

Why Study IS?
• Information Systems Careers
– Systems analyst, specialist in enterprise resource planning
(ERP), database administrator, telecommunications specialist,
consulting, etc.
• Knowledge Workers
– Managers and non-managers
– Employers seek computer-literate professionals who know how
to use information technology.
• Computer Literacy Replacing Traditional
Literacy
– Key to full participation in western society

Ethical and Societal Issues
The Not-So-Bright Side
• Consumer Privacy
– Organizations collect (and sometimes sell) huge
amounts of data on individuals.
• Employee Privacy
– IT supports remote monitoring of employees, violating
privacy and creating stress.

Ethical and Societal Issues
The Not-So-Bright Side
• Freedom of Speech
– IT increases opportunities for pornography, hate speech,
intellectual property crime, an d other intrusions; prevention may
abridge free speech.
• IT Professionalism
– No mandatory or enforced code of ethics for IT professionals--
unlike other professions.
• Social Inequality
– Less than 20% of the world’s population have ever used a PC;
less than 3% have Internet access. -
Contemporary Approaches to Information Systems
• Technical approach
• Behavioral approach
• Approach of this text: Sociotechnical systems

TYPES OF INFORMATION SYSTEMS
KIND OF SYSTEM GROUPS SERVED

STRATEGIC LEVEL SENIOR
MANAGERS
MANAGEMENT LEVEL MIDDLE

MANAGERS
KNOWLEDGE LEVEL KNOWLEDGE &

DATA WORKERS
OPERATIONAL
OPERATIONAL LEVEL
MANAGERS
SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN
MARKETING
Copyright © Amity University RESOURCES
MAJOR TYPES OF SYSTEMS
• Executive Support Systems (Ess)

• Decision Support Systems (Dss)
• Management Information Systems (Mis)
• Knowledge Work Systems (Kws)
• Office Automation Systems (Oas)
• Transaction Processing Systems (Tps)

TPS DATA FOR MIS APPLICATIONS
TPS MIS
Order Processing SALES
DATA
System
ORDER FILE UNIT

PRODUCT
Materials Resource COST MIS REPORTS
Planning System
PRODUCT
CHANGE
PRODUCTION MASTER FILE
DATA
General Ledger
EXPENSE MANAGERS
System DATA
ACCOUNTING FILES MIS FILES

DECISION SUPPORT SYSTEMS (DSS)
Management Level
•Inputs: Low Volume Data

•Processing: Interactive
•Outputs: Decision Analysis
•Users: Professionals, Staff
Example: Contract Cost Analysis

DECISION SUPPORT SYSTEMS (DSS)
• Flexible, Adaptable, Quick

• User Controls Inputs/Outputs
• No Professional Programming
• Supports Decision Process
• Sophisticated Modeling Tools

EXECUTIVE SUPPORT SYSTEMS (ESS)
Strategic Level
• Inputs: Aggregate Data
• Processing: Interactive
• Outputs: Projections
• Users: Senior Managers
Example: 5 Year Operating Plan

INTERRELATIONSHIPS AMONG SYSTEMS
ESS
MIS DSS
KWS
TPS
OAS
Organization of the IS Function
• Typical firm has a unit called the IS department who are

responsible for IT services
• Members of the IS department

– Programmers
– System analysts
– Project managers
– CIO
– Database administrators
– Network administrators
– Chief information officer
• End users (users of IS services outside the IS department)

IS and Business Strategy
• Business strategy determines
– The products and services a firm produces

– The industries in which the firm competes
– Competitors, suppliers, and customers of the firm
– Long-term goals of the firm

General Ways that IS Contributes to
Strategic Business Objectives
• IS can contribute to strategic objectives in the following ways

– Operational excellence
– New products, services, and business models
– Customer and supplier intimacy
– Improved decision making
• The contributions listed above can lead to
– Competitive advantage
– Survival

Competitive Forces Model
NEW SUBSTITUTE
MARKET PRODUCTS
ENTRANTS & SERVICES
TRADITIONAL
THE FIRM
COMPETITION
SUPPLIERS CUSTOMERS

Four Strategies Used With the Competitive
Forces Model
• Product differentiation involves developing new and unique

products and services not easily duplicated by competitors
• Becoming the low-cost producer (provide same value but at a

lower cost than competitors)
• Focused differentiation involves

– Narrowing the market by developing niches for specialized
products or services where a business can compete better
than its rivals
– Use of customer data (data mining, credit card transactions,
Internet behavior)
• Strengthen customer and supplier intimacy

– Use IS to develop strong ties with customers and suppliers
(SCM and CRM are major tools in this area)

Competitive Forces Model and the
Internet
• Substitute products/services
– Online banking, stock trading, reservations, online music
• Customer’s bargaining power
– Availability of pricing information (kbb.com)
– Expansion of options (expedia.com, pricegrabber.com)
• Supplier’s bargaining power
– Procurement over the Internet raises bargaining power of
customer
– Suppliers benefit from reduced barriers to entry and
elimination of intermediaries (alibaba.com)

Competitive Forces Model and
the Internet (continued)
• Threat of new entrants

– The Internet has reduced barriers to entry such as the need
for a sales force, access to channels, and physical assets
• Rivalries among existing competitors
– Widens the geographic market
– Increases number of competitors
– Reduces differences among competitors
– Pressure to compete on price

Porter’s Value Chain Model
• The value chain model looks at a business in terms of a set of

primary and support activities that add value to the firm’s
products or services.
• VC model can be used to determine where information systems
can have the most impact to effect the competitive position of
the firm
• Firm gains a competitive advantage when it provides the
product or service with more value or the same value at a lower
price

E-commerce
• E-commerce:
– Digitally enabled commercial transactions between
and among organizations and individuals, primarily
over Internet
– Began in 1995 with Netscape.com’s acceptance of
ads
– Rapid growth led to dot-com bubble (burst in 2001)
– Current growth 25% annually
– Today e-commerce revenues picture is very positive
• E.g. Number of people who have purchased
something online expanded to about 106 million in
2007

The Growth of E-Commerce
Electronic Commerce and the Internet
Retail e-commerce revenues have grown exponentially since 1995 and have only recently “slowed” to a very rapid 25 percent
annual increase, which is projected to remain the same until 2008.
Source: Based on data from eMarketer, 2006; Shop.org and Forrester Research, 2005; and authors.

• Seven unique features of e-commerce

1. Ubiquity
• Internet technology available anytime and everywhere:
work, home, mobile devices
• Business significance:
• Marketplace is extended beyond traditional boundaries
and is removed from temporal and geographic location
• Creates marketspace: Marketplace extended beyond
traditional temporal, geographical boundaries
• Shopping can take place anywhere - customer
convenience is enhanced, shopping costs are reduced

2. Global reach
• Technology reaches across national boundaries, around
Earth
• Commerce enabled across cultural and national
boundaries seamlessly, without modification
• Marketspace includes potentially billions of
consumers and millions of businesses worldwide

3. Universal standards
• There is one set of Internet technology standards
• Business significance
• Disparate computer systems can easily communicate
• Brings lower market entry costs (costs merchants pay to
bring goods to market)
• Lowers search costs for consumers

4. Richness
• Video, audio, text messages are possible
• Business significance: Video, audio, text integrated into
single marketing message and experience
5. Interactivity
• Technology works through interaction with user
• Business significance: Consumers engaged in dialog
that adjusts to individual; consumer is co-participant in
delivering goods to market

6. Information density
• Technology reduces information costs and raises quality
• Information becomes plentiful, cheap, and more
accurate
• Increases price transparency and cost transparency
• Enables price discrimination

7. Personalization/customization
• Technology allows personalized messages to be
delivered to individuals as well as groups
• Permits customization—changing delivered product or
service based on user’s preferences or prior behavior
• Business significance
• Personalization of marketing messages and
customization of products and services are based on
individual characteristics

• Key concepts in e-commerce: Digital markets and digital

goods
• Internet shrinks information asymmetry
• Information asymmetry: when one party has more
information important for transaction
• E.g. Information asymmetry between auto dealers and
customers
• Digital markets more flexible and efficient
• Reduced search and transaction costs
• Lower menu costs (cost of changing prices)
• Dynamic pricing

• Digital goods
• Goods that can be delivered over network
• E.g. Music tracks, video, e-books, software
• Cost for producing first unit is nearly total cost of product: Cost
for producing additional units very low
• Impact of Internet on market for digital goods is revolutionary
• Video rental services
• Hollywood studios
• Record label companies
• Newspapers and magazines

• Digital goods
• Goods that can be delivered over network
• E.g. Music tracks, video, e-books, software
• Cost for producing first unit is nearly total cost of product: Cost
for producing additional units very low
• Impact of Internet on market for digital goods is revolutionary
• Video rental services
• Hollywood studios
• Record label companies
• Newspapers and magazines

Electronic Commerce
• Three major e-commerce categories

• Business-to-consumer (B2C)
• E.g. Barnesandnoble.com
• Business-to-business (B2B)
• E.g. ChemConnect.com
• Consumer-to-consumer (C2C)
• E.g. eBay.com
• M-commerce
• Use of handheld wireless devices for purchasing goods
and services from any location

M-Commerce
• M-Commerce services and applications

• Popular for services that are time-critical, that appeal to
people on the move, or that accomplish task more efficiently
than other methods
• Especially popular in Europe, Japan, South Korea, and
countries where fees for conventional Internet usage are very
expensive
• Content and location-based services
• Example: checking train schedules, searching for local
businesses

M-Commerce
• Banking and financial services
• Example: Wireless alerts about changes in account
information
• Wireless advertising
• Example: Wireless service providers including advertising for
local restaurants, movie theaters on cell phones and Wi-Fi
devices
• Games and entertainment
• Example: downloading ringtones, movie clips
• Wireless portals
• Feature content optimized for mobile devices to steer users to
information most likely to need

M-Commerce
• M-Commerce challenges
• Keyboards and screens tiny and awkward to use
• Data transfer speeds (2G networks) slow compared to Internet
connections for PCs
• Time-based connection fees
• Limited memory and power supplies
• M-commerce will benefit from:
• 3G networks and other broadband services
• Standardized mobile payment systems

Electronic Commerce Payment Systems
• Types of electronic payment systems

• Digital credit card payment systems
• Extend functionality of credit cards for online shopping
payments
• Provide mechanisms for authentication and transferring money
from bank to seller
• Digital wallets
• Software stores credit card and other information to facilitate
form completion and payment for goods on Web.
• Example: Google CheckOut

• Micropayment systems: For purchases of less than $10,

such as downloads of individual articles or music clips
• Accumulated balance digital payment systems:
Accumulate debit balance that users pay periodically on
credit card or telephone bills
• Stored value payment systems: Allow instant online
payments based on value stored in digital account (e.g.
checking, credit card accounts
• May require use of digital wallet
• Example: Smart cards and devices like EZ Pass

• Digital cash: “Currency” represented in electronic form that

moves outside normal network of money. Not regulated and not
legal tender
• Client software allows exchange of money with other e-cash
user over Internet or with retailer accepting e-cash
• Peer-to-peer payment systems: Serve people who want to
send money to vendors or individuals who are not set up to
accept credit card payments
• Digital checking payment systems: Electronic check with
secure digital signature
• Electronic billing presentment and payment systems: Used
for paying routine monthly bills from bank or credit card accounts

• Digital payment systems for m-commerce

• Utilize any form of e-commerce payment systems
• Many payments are small purchases (soft drinks, mobile games,
sports scores) requiring micropayment systems
• In Europe/Asia, mobile payments often added and presented on
single bill such as mobile phone bill
• Virgin Mobile phone can dial Virgin Cola vending machine in
London
• eBay’s PayPal Mobile Text2Buy service allows payments sent to
mobile PayPal accounts via texting

Telecommunications and Networking
in Today’s Business World
• Networking and communication trends
• Convergence of telephone and computer networks into single
digital network using Internet standards
• Telecommunications providers offering multiple services: Data,
cable, Internet, voice
• Both voice and data networks have become more powerful,
more portable, and less expensive
• Broadband connections of 1Mbps
• Growth of wireless broadband platforms, wireless Internet
access

• Most basic computer network: Two or more interconnected
computers
• Major hardware, software, transmission components used in
simple network:
• Client computer
• Dedicated server computer
• Network interfaces (NICs)
• Network operating system (NOS)
• Hub or switch
• Routers:
• Device used to communicate with other networks

Components of a Simple Computer Network
Illustrated here is a very simple computer network, consisting of computers, a network operating system
residing on a dedicated server computer, cable (wiring) connecting the devices, network interface cards (NIC),
switches, and a router.

• Networks in large companies may include
• Hundreds of local area networks (LANs) linked to firmwide
corporate networks
• Multiple powerful servers
• Corporate Web site, corporate intranet, extranet
• Back-end systems for sales, financial, purchasing transactions
• Telephone network, videoconferencing
• Mobile WiFi network
• Key issue: Integration of disparate systems
• Alleviated as networks digitize, use Internet standards

Corporate Network Infrastructure
Today’s corporate network

infrastructure is a collection of many
different networks from the public
switched telephone network; to the
Internet; to corporate local area
networks linking workgroups,
departments, or office floors.

Telecommunications and Networking in
Today’s Business World
• Key digital networking technologies
• Client/server computing
• Clients linked through network controlled by server computer
• Packet switching
• Method of slicing digital messages into packets, sending packets along
different communication paths as they become available, and then
reassembling packets once they arrive at their destinations
• TCP/IP and connectivity standards
• Protocol: Set of rules and procedures governing transmission of
information between two points in network
• TCP/IP: Suite of protocols

Packet-Switched Networks and
Packet Communications
Data are grouped into

small packets, which
are transmitted
independently over
various
communications
channels and
reassembled at their
final destination.

Telecommunications and Networking in
Today’s Business World
• TCP/IP: Suite of protocols developed for U.S. Dept. of Defense
• Transmission Control Protocol (TCP): Handles movement of
data between computers
• Internet Protocol (IP): Handles assembly, delivery,
disassembly of packets
• TCP/IP allows two computers of different hardware and software
platforms to communicate
• Four-layer TCP/IP reference model
1. Application layer
2. Transport layer
3. Internet layer
4. Network interface layer
Communications Networks
• Signals: digital vs. analog

• Analog: Represented by continuous waveform
• Digital: Discrete, binary waveform
• Data as strings of two states: one bit, zero bits / on-off
electrical pulses
• Modem needed to translate between analog and digital
• Types of networks (geographic scope)
• Local area network (LAN)
• Campus area network (CAN)
• Metropolitan area network (MAN)
• Wide area network (WAN)

Functions of the Modem
A modem is a device that translates digital signals from a computer into analog form so that they can
be transmitted over analog telephone lines. The modem also translates analog signals back into
digital form for the receiving computer.

• Ethernet: Dominant LAN standard at physical network level

• Types of networks (network architecture)
• Peer-to-peer or client/server
• Types of networks (topology)
• Star: All network components connect to single hub
• Bus: Signals travel in both directions along single transmission
segment
• Most common Ethernet topology
• Ring: Connects network components in closed loop

Network Topologies
The three basic network topologies are the bus, star, and ring.

• Physical transmission media

• Twisted wire
• Pairs of twisted copper wire
• Older type of transmission medium
• Most common LAN cabling: Cat5 cable
• Coaxial cable
• Single, thickly insulated copper wire
• Used for longer runs

• Physical transmission media

• Fiber optics and optical networks
• Strands of clear glass fiber
• Used for Internet backbone
• Optical networks can boost capacity by using multiplexing
(DWDM) - using different wave lengths to carry separate
streams of data over same strand

• Wireless transmission media

• Microwave systems
• High-frequency radio signals that follow straight line and require
transmission stations or satellites to act as relay
• Cellular telephones
• Radio towers placed in adjacent geographic areas (cells)

• Broadband network services and technologies
• Digital subscriber line (DSL) (1 Mbps – 9 Mbps)
• Dedicated telephone network broadband Internet access
• Cable Internet connections (Up to 10 Mbps)
• Dedicated cable network broadband access
• T lines (1.5 Mbps to 45 Mbps)
• Dedicated lines for high-speed data transmission and Internet

connection

The Internet
• What is the Internet?
• World’s most extensive public communication system, rivaling
global telephone system
• World’s largest implementation of:
• Client/server network
• Internetworking
• Internet service provider:
• Commercial organization with permanent connection to Internet
• Sells temporary connections to retail subscribers

The Internet
• Internet addressing
• IP address
• Assigned to each computer on Internet
• 32-bit number: four strings of numbers ranging from 0 to 255
separated by periods
• E.g. 207.46.250.119
• Messages decomposed into packets, each carrying destination IP
address

The Internet
• Domain Name System
• Converts IP addresses to domain names
• DNS servers maintain database of domain names mapped to IP
addresses
• Domains: E.g. sales.google.com
• Root domain (“.”)
• Top-level domain (.gov, .com, .edu, etc.)
• Second-level domain (e.g. “google”)
• Third-level domains/hosts (“computer1.sales.google.com”)

The Internet
The Domain Name System
The Domain Name

System is a hierarchical
system with a root
domain, top-level
domains, second-level
domains, and host
computers at the third
level.

The Internet
• Internet governance
• Internet policies established by several professional organizations
and government bodies
• IAB: Defines overall structure of Internet
• ICANN: Assigns IP addresses
• W3C: Sets programming standards, HTML standards for Web
• These organizations influence government agencies,
network owners, ISPs, and software developers
• Internet must conform to local national law and technical
infrastructure
• Internet paid for by connection services and fees

The Internet
• Internet services
• Client/server technology
• Client:
• Software (e.g. Web browsers) on personal computers or
information appliances
• Servers:
• Store data (e-mails, Web pages)
• Transfer data to clients
• Run services, implemented by one or more software
programs, that clients can access
• E.g. Telnet, FTP, World Wide Web, newsgroups, chat

The Internet
Client/Server Computing on the Internet
Client computers running Web browser and other software can access an array of services on servers over the Internet. These
services may all run on a single server or on multiple specialized servers.

The Internet
• World Wide Web: Most popular Internet service
• Web pages: Formatted using Hypertext Markup Language
(HTML) with embedded links that connect documents to one
another and that also link pages to other objects, such as sound,
video, or animation files
• Hypertext Transfer Protocol (HTTP): Communications
standard used to transfer pages on Web
• Uniform resource locator (URL): Full address of web page,
including protocol, domain name, directory path, and file name
• E.g.: http://www.megacorp.com/content/features/082602.html

The Internet
• Web servers: Software for locating and managing stored Web pages,
typically run on dedicated computers
• E.g. Apache HTTP Server, Microsoft IIS
• Web site: Collection of Web pages linked to home page
• Webmaster: Person in charge of organization’s Web site
• Search engines: Allow finding information on Web of 50 billion+
pages nearly instantly
• Serve as major portals to Web
• Early search engines: Simple keyword indexes of visited pages
• Yahoo!: Originally organized favorite Web sites into directory lists

The Internet
• Search engines:
• Google: Utilized new page ranking system and indexed
combinations of words
• Search engine marketplace very competitive
• Search engines have become major shopping tools
• Search engine marketing:
• Search engine includes paid, sponsored links and
advertisements in search results
• Fastest growing form of Internet advertising
• Shopping bots:
• Use intelligent agent software for searching Internet for shopping
information

The Internet
• Web 2.0
• Second-generation interactive Internet-based services
• Mashups: Software services that mix and match content or
software components to create something entirely new
• Blog: informal chronological Web site where subscribing
individuals can publish stories, opinions, and links to other Web
sites
• RSS (Rich Site Summary or Really Simple Syndication):
Syndicates Web site content so it can be pulled from Web sites
and fed automatically to subscribed users
• Wikis: Collaborative Web sites where visitors can add, delete, or
modify content on site, including work of previous authors

The Internet
• Intranets: Private networks using Internet standards
• Protected from public visits by firewalls
• Extranets: Limited area of intranet designed for access by authorized
vendors and customers
• Technologies and tools for communication and e-business
• E-mail
• Chat, instant messaging
• Electronic discussions
• Groupware
• Electronic conferencing

The Internet
• Internet telephony:
• Telephone voice transmission over Internet or private networks
• Voice over IP (VoIP): Uses Internet Protocol (IP) to deliver voice
information using packet switching, avoiding tolls charged by local
and long-distance telephone networks
• Fastest-growing form of telephone service in United States
• Can reduce communication and network management costs by 20

to 30 percent
• Flexible technology: Phones can be added or moved to different
offices without rewiring or reconfiguring network

The Wireless Revolution
• Wireless devices: Have become portable computing platforms
• Cell phones
• Laptops
• Handhelds
• Personal digital assistants (PDAs)
• E-mail handhelds
• Smart phones
• Cellular systems:
• Mobile phones enable millions to communicate and access
Internet in countries where conventional phone or Internet service
is expensive or unavailable. More mobile phones than PCs (3
billion vs 1 billion)

Thank You
Please forward your query
To: Faculty email add.

CC: manoj.amity@panafnet.com
Copyright@ Amity University

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PAN African eNetwork Project

Master of Finance and Control

Prof.- Nishant K Rai

Copyright © Amity University

Copyright © Amity University

Copyright © Amity University

Copyright © Amity University

Copyright © Amity University

Copyright © Amity University

• Why Do People Need Information?

– Individuals - Entertainment and

– Businesses - Decision making, problem

Copyright © Amity University

Copyright © Amity University

– Example: customer survey

Copyright © Amity University

Figure 1.1 Input-process-output

Copyright © Amity University

Figure 1.2 Characteristics of useful information

– Subsystem: One part of a system where the products of more

– Closed system: Stand-alone system that has no contact with

– Open system: System that interfaces with other systems

Copyright © Amity University

Figure 1.3 Several subsystems make up this corporate accounting

Copyright © Amity University

Copyright © Amity University

Figure 1.5 Qualities of humans and computers that contribute to

Copyright © Amity University

– Allows human thought to be translated into efficient

Copyright © Amity University

Figure 1.6 Components of an information system

Copyright © Amity University

– Input: Data is collected and entered into computer.

– Data processing: Data is manipulated into information

– Output: Information is displayed or presented.

– Storage: Data and information are maintained for later

Copyright © Amity University

Copyright © Amity University

Copyright © Amity University

Copyright © Amity University

KIND OF SYSTEM GROUPS SERVED

MANAGEMENT LEVEL MIDDLE

KNOWLEDGE LEVEL KNOWLEDGE &

• Executive Support Systems (Ess)

Copyright © Amity University

ORDER FILE UNIT

ACCOUNTING FILES MIS FILES

Copyright © Amity University

•Inputs: Low Volume Data

Example: Contract Cost Analysis

Copyright © Amity University

• Flexible, Adaptable, Quick

Copyright © Amity University

Example: 5 Year Operating Plan

Copyright © Amity University

• Typical firm has a unit called the IS department who are

• Members of the IS department

• End users (users of IS services outside the IS department)

Copyright © Amity University

• Business strategy determines

– The products and services a firm produces

Copyright © Amity University

• IS can contribute to strategic objectives in the following ways