Information Systems: Lecture Series

5/5/2012

Course Outline
1. Information and Management
2. Information System Analysis Overview 3. Information Gathering

4. System Requirement Specification

5. Feasibility Analysis 6. Data Flow diagrams

7. Process Specification
8. Decision Table
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Course Outline
9. Logical Database Design
10. Data Input Methods 11. DataBase Management System 12. 13. 14. 15.
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Review Object-Oriented System Modeling Designing Outputs Control, Audit and Security of information Systems Electronic Commerce
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Course facilitator: Prof Jha, Davendranath

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1: Information and Management

Data and information are not

synonymous. Information is processed data. Data Processing task may include Recording, Storing, Classifying, Sorting, Retrieving, Reporting, Communicating Data may also be processed by performing arithmetic operation on them
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1: Information and Management

Information requirements for managing organizations can

be classified as Strategic, Tactical and Operational.

Strategic information is needed for long range planning. They are highly unstructured and difficult to obtain. Tactical information is used to take short term decisions and for better controlling of the organizations functions. It requires complex and ingenious processing of data. Operational information is used for routine day-to-day management of organization. It is highly structured and can be obtain by simple processing of data. They are voluminous. Statutory information consists of reports that are generated as per the law of state. They must be kept upto-date and are subject to surprise checks by the regulatory authority
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1: Information and Management

Management of organizations is divided

functionally. Depending on the size of the organization, each function may be delegated to different managers. The information given to managers must be accurate, complete and trustworthy. It must also be up-to-date and timely. It must be relevant, brief, attractively presented and its understandable. The primary functional areas of many organizations are Human Resources, Production, Materials, Finance, Marketing and Research, Design and Development
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1: Information and Management

Top Managers are expected to make

policies and need strategic information. Middle Level Managers direct and control the functioning of organization to achieve optimal performance and need tactical information. Line Managers supervise day-to-day operations and steer operations to meet targets set by Middle Managers. They need operational information.
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1: Information and Management

Hospital Information System : Representative example Strategic
1. 2. 3.

Cost-benefit of new expensive diagnostic instrument such as CAT scanner. Long-term forecasts for opening old age patients wing Technical development in routine diagnostic instruments Optimum replacement periods and use of expensive instruments Optimum level of drugs to be stocked keeping in view expiry dates of drugs Operation theatre utilization data for improved performance
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Tactical
1. 2. 3.

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1: Information and Management

Hospital Information System : Representative example Operational
1. 2. 3.

Absenteeism data of nurses and technicians Number of beds and schedules for admissions of patients Billing patients Birth and death records Infectious diseases record Profit and loss account Data on restricted drug utilization
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Statutory
1.

2.
3. 4.

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1: Information and Management

Finance Management System: Representative example Strategic

Method of financing
Impact of taxation on pricing Scheduling production
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Tactical

Operational

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1: Information and Management

Motor Car Manufacturing Industry : Representative example Strategic

Decision on introducing new model of car

Assessing competitors car Scheduling production
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Tactical

Operational

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1: Information and Management

Materials Management System : Representative example Strategic

Developing vendors for critical items

Developing vendor performance measure List of items rejected from the vendor
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Tactical

Operational

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1: Information and Management

Each function in an organization needs

operational, tactical and strategic information. Transaction can be defined as a business activity that gets recorded preferably in a predetermined format. It causes change/s in the system. A request for retrieving a record from a Master File can be termed as Transaction
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1: Information and Management

The method of processing data in which

transactions are grouped together and processed as a batch is called batch processing. The method of processing data in which transactions are processed by a computer as and when they arise is called On-Line Transaction Processing (OLTP) Routine data processing system/ Transaction processing system (DPS/TPS) are used to obtain operational information. They are normally repetitive.
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1: Information and Management

Data abstracted from routine processing are further

processed using well taught out rules to obtain tactical information. Such systems are called Management information Systems (MIS) Information from multiple sources in an organization are normally presented in summarized or condensed forms such as graphs and charts to aid top management to take strategic decisions. Such systems are called Decision Support System (DSS) Data used in operational data processing is normally stored as back up or for legal reasons. These are called data archives. The archived data may be analyzed to obtain tactical and strategic information. This is called data mining.

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1: Information and Management

On-Line Transaction Processing System V/s

Batch Processing System

In on-line transaction processing the processing is interactive. As soon as request is submitted it is carried out immediately and the result is obtained. Here the response time is important. In a batch processing number of request are collected for a specified period and formed into a batch. The batch is processed to give output. Here the throughput is important. Whenever data has to be processed periodically batch processing is preferred. E.g., Processing of students transcript.
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1: Information and Management

MIS V/S DSS

MIS provides tactical information to the top management to take decisions, whereas DSS provides strategic information. MIS requires extensive modeling and simulation. DSS often needs correlation of data from variety of sources and examination of processed data from various perspectives.
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1: Information and Management

Marketing Function (Indicative) Tactical Information Customer preferences Impact of advertising Sales campaign and discounting Sales force deployments and targets In marketing DSS provides information like where new market can be opened, what will be the marketing strategy? It also analyzes the competitors strategy. It also provides information regarding what new technologies can be adopted and what change in the product is required.
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1: Information and Management

Data archive The operational data that are collected over a period of time is called the archival data. These historical data is analyzed to observe the patterns. Certain rules are formulated based on these data to find business trends by strategic management.
Data mining Data mining is a process in which large amount of archival data (may be in terabytes) stored in disks are analyzed to observe the patterns which are used find some business trends. The rules are then formulated and authenticated.
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1: Information and Management

Exercises

The characteristics of valuable information Classification of system Important characteristics of different level of managements Characteristics of four broad categories of Information Systems

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