Notes Full

ISM/U1 Topic 1 MIS: Definition,
Purpose, Objectives
THEINTACTFRONT19 FEB 2019 2 COMMENTS
An Information System is a system that gathers data and disseminates information with the
sole purpose of providing information to its users.
The main object of an information system is to provide information to its users. Information
systems vary according to the type of users who use the system.
A Management Information System is an information system that evaluates, analyzes, and

processes an organization’s data to produce meaningful and useful information based on
which the management can take right decisions to ensure future growth of the organization.
Information Definition
According to Wikipedia −
“Information can be recorded as signs, or transmitted as signals. Information is any kind of

event that affects the state of a dynamic system that can interpret the information.
Conceptually, information is the message (utterance or expression) being conveyed.

Therefore, in a general sense, information is “Knowledge communicated or received,
concerning a particular fact or circumstance”. Information cannot be predicted and resolves
uncertainty.”
Information Vs Data
Data can be described as unprocessed facts and figures. Plain collected data as raw facts
cannot help in decision-making. However, data is the raw material that is organized,
structured, and interpreted to create useful information systems.
Data is defined as ‘groups of non-random symbols in the form of text, images, voice
representing quantities, action and objects’.
Information is interpreted data; created from organized, structured, and processed data in a
particular context.
According to Davis and Olson −

“Information is a data that has been processed into a form that is meaningful to recipient and
is of real or perceived value in the current or the prospective action or decision of recipient.”
Information processing beyond doubt is the dominant industry of the present century.
Following factors states few common factors that reflect on the needs and objectives of the
information processing −
 Increasing impact of information processing for organizational decision making.

 Dependency of services sector including banking, financial organization, health care,
entertainment, tourism and travel, education and numerous others on information.
 Changing employment scene world over, shifting base from manual agricultural to
machine-based manufacturing and other industry related jobs.
 Information revolution and the overall development scenario.
 Growth of IT industry and its strategic importance.
 Strong growth of information services fuelled by increasing competition and reduced
product life cycle.
 Need for sustainable development and quality life.
 Improvement in communication and transportation brought in by use of information
processing.
 Use of information processing in reduction of energy consumption, reduction in
pollution and a better ecological balance in future.
 Use of information processing in land record managements, legal delivery system,
educational institutions, natural resource planning, customer relation management and so on.
In a nutshell −
 Information is needed to survive in the modern competitive world.

 Information is needed to create strong information systems and keep these systems up
to date.
Implications of Information in Business

Information processing has transformed our society in numerous ways. From a business
perspective, there has been a huge shift towards increasingly automated business processes
and communication. Access to information and capability of information processing has
helped in achieving greater efficiency in accounting and other business processes.
A complete business information system, accomplishes the following functionalities −
 Collection and storage of data.

 Transform these data into business information useful for decision making.
 Provide controls to safeguard data.
 Automate and streamline reporting.
The following list summarizes the five main uses of information by businesses and other
organizations −
 Planning− At the planning stage, information is the most important ingredient in
decision making. Information at planning stage includes that of business resources, assets,
liabilities, plants and machineries, properties, suppliers, customers, competitors, market and
market dynamics, fiscal policy changes of the Government, emerging technologies, etc.
 Recording− Business processing these days involves recording information about
each transaction or event. This information collected, stored and updated regularly at the
operational level.
 Controlling− A business need to set up an information filter, so that only filtered data
is presented to the middle and top management. This ensures efficiency at the operational
level and effectiveness at the tactical and strategic level.
 Measuring− A business measures its performance metrics by collecting and
analyzing sales data, cost of manufacturing, and profit earned.
 Decision-making− MIS is primarily concerned with managerial decision-making,
theory of organizational behavior, and underlying human behavior in organizational context.
Decision-making information includes the socio-economic impact of competition,
globalization, democratization, and the effects of all these factors on an organizational
structure.
In short, this multi-dimensional information evolves from the following logical foundations −
 Operations research and management science

 Theory of organizational behavior
 Computer science −
o Data and file structure
o Data theory design and implementation
o Computer networking
o Expert systems and artificial intelligence
 Information theory
Following factors arising as an outcome of information processing help speed up of business

events and achieves greater efficiency −
 Directly and immediate linkage to the system

 Faster communication of an order
 Electronic transfer of funds for faster payment
 Electronically solicited pricing (helps in determining the best price)
MIS Need for Information Systems

Managers make decisions. Decision-making generally takes a four-fold path −
 Understanding the need for decision or the opportunity,

 Preparing alternative course of actions,
 Evaluating all alternative course of actions,
 Deciding the right path for implementation.
MIS is an information system that provides information in the form of standardized reports
and displays for the managers. MIS is a broad class of information systems designed to
provide information needed for effective decision making.
Data and information created from an accounting information system and the reports
generated thereon are used to provide accurate, timely and relevant information needed for
effective decision making by managers.
Management information systems provide information to support management decision

making, with the following goals −
 Pre-specified and preplanned reporting to managers.

 Interactive and ad-hoc support for decision making.
 Critical information for top management.
MIS is of vital importance to any organization, because −
 It emphasizes on the management decision making, not only processing of data

generated by business operations.
 It emphasizes on the systems framework that should be used for organizing
information systems applications.
ISM/U1 Topic 2 Role of MIS in

Business Organization
Simply MIS stand For Management Information System. For Simply Understanding
Management Information System (MIS) we can divide in to three Word and Understand Part
by part
1. Management:- “Management is function to do the work at the Right time, by the

right Person, For the Right Job.”
2. Information:- “Information is the Collection of Organized data which plays a Vital
Role for decision making.”
3. System:- “System Consist for a set of elements which Provides a Framework to
convert Unorganized (Data) into Organized Information.”
Management information system refers to such system which provides accurate information
to the entire level of management for decision making process. For right job at the right time,
by the right person.
Management information system (MIS) has become Very Necessary due to Emergence of
high complexity in Business Organization. It is all to know that without information no
Organization can take even one step properly regarding the decision making process. Because
it is matter of fact that in an organization decision plays an essential role for the achievement
of its objectives and we know that every decision is based upon information. If gathered
information are irrelevant than decision will also incorrect and Organization may face big
loss & lots of Difficulties in Surviving as well.
 Helps in Decision making:- Management Information System (MIS) plays a

significant Role in Decision making Process of any Organization. Because in Any
organization decision is made on the basis of relevant Information and relevant information
can only be Retrieving from the MSI.
 Helps in Coordination among the Department:- Management information System
is also help in establishing a sound Relationship among the every persons of department to
department through proper exchanging of Information’s.
 Helps in Finding out Problems:- As we know that MIS provides relevant
information about the every aspect of activities. Hence, If any mistake is made by the
management then Management Information Systems (MIS) Information helps in Finding out
the Solution of that Problem.
 Helps in Comparison of Business Performance:- MIS store all Past Data and
information in its Database. That why management information system is very useful to
compare Business organization Performance. With the help of Management information
system (MIS) Organization can analyze his Performance means whatever they do last year or
Previous Years and whatever business performance in this year and also measures
organization Development and Growth.
ISM/U1 Topic 3 Pre-requisites for

effective MIS
(i) Qualified System and Management Staff: The prerequisite of an effective MIS is that it
should be managed by qualified officers. These officers should have a mutual understanding
about the roles and responsibilities of each other and be understand clearly the view of their
fellow officers. For this, each organization should have two categories of officers:
(a) System and Computer Experts who in addition to their expertise in their subject area,
they should also be capable of understanding management concepts to facilitate the
understanding of problems asked by concern. They should also be clear about the process of
decision making and information requirements for planning.
(b) Management experts who should also understand quiteclearly the concepts and

operations of a computer. This basic knowledge of computer will be useful will place them in
a comfortable position, while working with systems, technicians in designing or other wise,
of the information system.
(ii) Futuristic Perspective: An effective MIS should be capable of meeting the future

requirements of its executives as well. This capability can be achieved by regular monitoring
and updating the MIS.
(iii) Support of Top Management: For a management information system to be effective, it

must receive the full support of top management. The Reasons for this are:
(a) Subordinate managers are usually lethargic about activities which do not receive the
support of their superiors.
(b) The resources involved in computer based information system are larger and are growing
larger and larger in view of importance gained by management information system.
(iv) Common Database: It is an integrated collection of data and information which is

utilized by several information subsystems of an organization. A common database may be
defined as a super file which consolidates and integrates data records formerly stored in a
separate data file. Such a database can be organized as an integrated collection of data records
into a single super file or it can be organized as an integrated collection of several data file.
(v) Control and maintenance of MIS: Control of the MIS means the operation of the
system as it was designed to operate. Some times, users develop their own procedures or
short cut methods to use the system which reduces its effectiveness.
ISM/U1 Topic 4 Components

of MIS
A management information system is made up of five major components namely people,

business processes, data, hardware, and software. All of these components must work
together to achieve business objects.
People – these are the users who use the information system to record the day to day business
transactions. The users are usually qualified professionals such as accountants, human
resource managers, etc. The ICT department usually has the support staff who ensure that the
system is running properly.
Business Procedures: these are agreed upon best practices that guide the users and all other
components on how to work efficiently. Business procedures are developed by the people i.e.
users, consultants, etc.
Data: the recorded day to day business transactions. For a bank, data is collected from
activities such as deposits, withdrawals, etc.
Hardware: hardware is made up of the computers, printers, networking devices, etc. The

hardware provides the computing power for processing data. It also provides networking and
printing capabilities. The hardware speeds up the processing of data into information.
Software: these are programs that run on the hardware. The software is broken down into
two major categories namely system software and applications software. System software
refers to the operating system i.e. Windows, Mac OS, and Ubuntu, etc. Applications software
refers to specialized software for accomplishing business tasks such as a Payroll program,
banking system, point of sale system, etc.
ISM/U1 Topic 5 MIS Applications

in Business
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 work
faster and supplies more blood when needed. It regulates and controls the incoming impure
blood, processed 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 send 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 top management.
Here are some of the important roles of the MIS:
1. The MIS satisfies the diverse needs through variety of systems such as query system,
analysis system, modeling system and decision support system.
2. The MIS helps in strategic planning, management control, operational control and
transaction processing. The MIS helps in the clerical personal in the transaction processing
and answers the queries on the data pertaining to the transaction, the status of a particular
record and reference on a variety of documents.
iii. The MIS helps the junior management personnel by providing the operational data for
planning, scheduling and control , and helps them further in decision-making at the operation
level to correct an out of control situation.
1. 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.
2. The MIS helps the top level management in goal setting, strategic planning and
evolving the business plans and their implementation.
3. 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 operation of an organization.
IMPACT OF THE MANAGEMENT INFORMATION SYSTEM
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 supports 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 and probable trends in the
various aspects of business. This helps in forecasting and long-term perspective planning.
The manager’s attention is bought to a situation which is expected in nature, inducing him to
take an action or a decision in the matter. Disciplined information reporting system creates
structure 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 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 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 systematization of the business operations for an effective system
design. This leads to streaming of the operations which complicates 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.
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 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 simple. The impact is
on the managerial ability to perform. It improves decision-making ability considerably high.
Since, the MIS work on the basic system such as transaction processing and database, the
drudgery of the clerical work is transferred to the computerized system, relieving the human
mind for better work. It will be observed that lot of manpower is engaged in this activity in
the organization. Seventy (70) percent of the time is spent in recording, searching, processing
and communicating. This MIS has a direct impact on this overhead. It creates information –
based working culture in the organization.
IMPORTANCE OF MIS
It goes without saying that all managerial functions are performed through decision-making;
for taking rational decision, timely and reliable information is essential and is procured
through a logical and well structured method of information collecting, processing and
disseminating to decision makers. Such a method in the field of management is widely
known as MIS. In today’s world of ever increasing complexities of business as well as
business organization, in order to service and grow , must have a properly planned, analyzed,
designed and maintained MIS so that it provides timely, reliable and useful information to
enable the management to take speedy and rational decisions.
MIS has assumed all the more important role in today’s environment because a manager has
to take decisions under two main challenges:
First, because of the liberalization and globalization, in which organizations are required to
compete not locally but globally, a manager has to take quick decisions, otherwise his
business will be taken away by his competitors. This has further enhanced the necessity for
such a system.
Second, in this information age wherein information is doubling up every two or three years,
a manager has to process a large voluminous data; failing which he may end up taking a
strong decision that may prove to be very costly to the company.
In such a situation managers must be equipped with some tools or a system, which can assist
them in their challenging role of decision-making. It is because of the above cited reasons,
that today MIS is considered to be of permanent importance, sometimes regarded as the name
centre of an organization. Such system assist decision makers in organizations by providing
information at various stages of decision making and thus greatly help the organizations to
achieve their predetermined goals and objectives. On the other hand, the MIS which is not
adequately planned for analyzed, designed, implemented or is poorly maintained may provide
developed inaccurate, irrelevant or obsolete information which may prove fatal for the
organization. In other words, organizations today just cannot survive and grow without
properly planned, designed, implemented and maintained MIS. It has been well understood
that MIS enables even small organizations to more than offset the economies of scale enjoyed
by their bigger competitors and thus helps in providing a competitive edge over other
organizations.
ISM/U1 Topic 6 Information in
Decision Making: Meaning
and Importance
Decision support systems (DSS) are interactive software-based systems intended to help
managers in decision-making by accessing large volumes of information generated from
various related information systems involved in organizational business processes, such as
office automation system, transaction processing system, etc.
DSS uses the summary information, exceptions, patterns, and trends using the analytical
models. A decision support system helps in decision-making but does not necessarily give a
decision itself. The decision makers compile useful information from raw data, documents,
personal knowledge, and/or business models to identify and solve problems and make
decisions.
Programmed and Non-programmed Decisions
Programmed decisions are basically automated processes, general routine work, where
 These decisions have been taken several times.

 These decisions follow some guidelines or rules.
For example, selecting a reorder level for inventories, is a programmed decision.
Non-programmed decisions occur in unusual and non-addressed situations, so:
 It would be a new decision.

 There will not be any rules to follow.
 These decisions are made based on the available information.
 These decisions are based on the manger’s discretion, instinct, perception and
judgment.
For example, investing in a new technology is a non-programmed decision.
Decision support systems generally involve non-programmed decisions. Therefore, there will
be no exact report, content, or format for these systems. Reports are generated on the fly.
Attributes of a DSS
 Adaptability and flexibility

 High level of Interactivity
 Ease of use
 Efficiency and effectiveness
 Complete control by decision-makers
 Ease of development
 Extendibility
 Support for modeling and analysis
 Support for data access
 Standalone, integrated, and Web-based
Characteristics of a DSS
 Support for decision-makers in semi-structured and unstructured problems.

 Support for managers at various managerial levels, ranging from top executive to line
managers.
 Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization level.
 Support for interdependent or sequential decisions.
 Support for intelligence, design, choice, and implementation.
 Support for variety of decision processes and styles.
 DSSs are adaptive over time.
Benefits of DSS
 Improves efficiency and speed of decision-making activities.

 Increases the control, competitiveness and capability of futuristic decision-making of
the organization.
 Facilitates interpersonal communication.
 Encourages learning or training.
 Since it is mostly used in non-programmed decisions, it reveals new approaches and
sets up new evidences for an unusual decision.
 Helps automate managerial processes.
Components of a DSS
Following are the components of the Decision Support System −
 Database Management System (DBMS)− To solve a problem the necessary data

may come from internal or external database. In an organization, internal data are generated
by a system such as TPS and MIS. External data come from a variety of sources such as
newspapers, online data services, databases (financial, marketing, human resources).
 Model Management System− It stores and accesses models that managers use to
make decisions. Such models are used for designing manufacturing facility, analyzing the
financial health of an organization, forecasting demand of a product or service, etc.
Support Tools − Support tools like online help; pulls down menus, user interfaces, graphical
analysis, error correction mechanism, facilitates the user interactions with the system.
Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows
 Text Oriented DSS− It contains textually represented information that could have a
bearing on decision. It allows documents to be electronically created, revised and viewed as
needed.
 Database Oriented DSS− Database plays a major role here; it contains organized and
highly structured data.
 Spreadsheet Oriented DSS− It contains information in spread sheets that allows
create, view, modify procedural knowledge and also instructs the system to execute self-
contained instructions. The most popular tool is Excel and Lotus 1-2-3.
 Solver Oriented DSS− It is based on a solver, which is an algorithm or procedure
written for performing certain calculations and particular program type.
 Rules Oriented DSS− It follows certain procedures adopted as rules.
 Rules Oriented DSS− Procedures are adopted in rules oriented DSS. Export system
is the example.
 Compound DSS− It is built by using two or more of the five structures explained
above.
Types of DSS
 Status Inquiry System− It helps in taking operational, management level, or middle

level management decisions, for example daily schedules of jobs to machines or machines to
operators.
 Data Analysis System− It needs comparative analysis and makes use of formula or
an algorithm, for example cash flow analysis, inventory analysis etc.
 Information Analysis System− In this system data is analyzed and the information
report is generated. For example, sales analysis, accounts receivable systems, market analysis
etc.
 Accounting System− It keeps track of accounting and finance related information,
for example, final account, accounts receivables, accounts payables, etc. that keep track of the
major aspects of the business.
 Model Based System− Simulation models or optimization models used for decision-
making are used infrequently and creates general guidelines for operation or management.
ISM/U1 Topic 7 MIS: Sources and

Types of Information
Information/Data Collection Techniques
The most popular data collection techniques include:
 Surveys: A questionnaires is prepared to collect the data from the field.

 Secondary data sources or archival data: Data is collected through old records,
magazines, company website etc.
 Objective measures or tests: An experimental test is conducted on the subject and
the data is collected.
 Interviews: Data is collected by the system analyst by following a rigid procedure
and collecting the answers to a set of pre-conceived questions through personal interviews.
Classification by Characteristic
Based on Anthony’s classification of Management, information used in business for decision-
making is generally categorized into three types −
 Strategic Information: Strategic information is concerned with long term policy

decisions that defines the objectives of a business and checks how well these objectives are
met. For example, acquiring a new plant, a new product, diversification of business etc,
comes under strategic information.
 Tactical Information: Tactical information is concerned with the information needed
for exercising control over business resources, like budgeting, quality control, service level,
inventory level, productivity level etc.
 Operational Information: Operational information is concerned with plant/business
level information and is used to ensure proper conduction of specific operational tasks as
planned/intended. Various operator specific, machine specific and shift specific jobs for
quality control checks comes under this category.
Classification by Application
In terms of applications, information can be categorized as −
 Planning Information: These are the information needed for establishing standard

norms and specifications in an organization. This information is used in strategic, tactical,
and operation planning of any activity. Examples of such information are time standards,
design standards.
 Control Information: This information is needed for establishing control over all
business activities through feedback mechanism. This information is used for controlling
attainment, nature and utilization of important processes in a system. When such information
reflects a deviation from the established standards, the system should induce a decision or an
action leading to control.
 Knowledge Information: Knowledge is defined as “information about information”.
Knowledge information is acquired through experience and learning, and collected from
archival data and research studies.
 Organizational Information: Organizational information deals with an
organization’s environment, culture in the light of its objectives. Karl Weick’s Organizational
Information Theory emphasizes that an organization reduces its equivocality or uncertainty
by collecting, managing and using these information prudently. This information is used by
everybody in the organization; examples of such information are employee and payroll
information.
 Functional/Operational Information: This is operation specific information. For
example, daily schedules in a manufacturing plant that refers to the detailed assignment of
jobs to machines or machines to operators. In a service oriented business, it would be the duty
roster of various personnel. This information is mostly internal to the organization.
 Database Information: Database information construes large quantities of
information that has multiple usage and application. Such information is stored, retrieved and
managed to create databases. For example, material specification or supplier information is
stored for multiple users.
Information is a vital resource for the success of any organization. Future of an organization
lies in using and disseminating information wisely. Good quality information placed in right
context in right time tells us about opportunities and problems well in advance.
Good quality information − Quality is a value that would vary according to the users and
uses of the information.
According to Wang and Strong, following are the dimensions or elements of Information
Quality −
 Intrinsic− Accuracy, Objectivity, Believability, Reputation

 Contextual− Relevancy, Value-Added, Timeliness, Completeness, Amount of
information
 Representational− Interpretability, Format, Coherence, Compatibility
 Accessibility− Accessibility, Access security
Various authors propose various lists of metrics for assessing the quality of information. Let
us generate a list of the most essential characteristic features for information quality
 Reliability− It should be verifiable and dependable.

 Timely− It must be current and it must reach the users well in time, so that important
decisions can be made in time.
 Relevant− It should be current and valid information and it should reduce
uncertainties.
 Accurate− It should be free of errors and mistakes, true, and not deceptive.
 Sufficient− It should be adequate in quantity, so that decisions can be made on its
basis.
 Unambiguous− It should be expressed in clear terms. In other words, in should be
comprehensive.
 Complete− It should meet all the needs in the current context.
 Unbiased− It should be impartial, free from any bias. In other words, it should have
integrity.
 Explicit− It should not need any further explanation.
 Comparable− It should be of uniform collection, analysis, content, and format.
 Reproducible− It could be used by documented methods on the same data set to
achieve a consistent result.
ISM/U1 Topic 8 Information

Requirement in Management
The common thread of activity in all the management functions is information management.
Every manager today has to manage loads of information some for the purpose of reporting
and some for taking actionable decisions. A marketing manager trying to fine-tune a sales
strategy would be doing it only after analyzing a lot of relevant information about the market,
the customer profile, the product profile and competitor’s pricing strategy.
Similarly, a human resource manager trying to recruit someone for the organization would do
a lot of information analysis regarding the job profile, suitability of the candidate for the job,
the job market dynamics, etc. The competitive environment that exists in today’s time makes
this task of management even more challenging. Decisions have to be taken very fast and
after analyzing a lot of data.
It is precisely due to these reasons that more and more information technology (IT)
intervention is being used in modern management functions. However, Information
management using technology has itself transformed dramatically over the years. From being
just a support function it has become a key resource for gaining competitive advantage.
More and more corporations are investing in acquiring the latest management information
system tools like enterprise (wide) resource planning (ERP), customer relationship
management (CRM), knowledge management (KM), decision support system (055), business
intelligence (81) suites data warehouse (OW) facility as they are convinced of the benefits of
such huge investments.
Information Needs for the Different Levels of Management

Even though the broad objectives of management as an entity may be same, like increasing
shareholder value, it is by no means a monolithic entity. As has already been discussed, there
are different levels of management and each performs its specific purpose. The top level
deals with strategy, the middle level with tactical issues and the bottom level with operational
issues. The top level that deals with strategy will be taking strategic decisions, middle level
will take tactical decisions and entry level will take operational decisions. Now in order to
take such decisions, contextual information will need to be provided.
Information Needs of Different Levels of Management
Levels of
Problems handled/ Decisions made Type of information required
Management
Top level Unstructured problems. Strategic information from within the

organization and outside.

Decisions are based on situations
Middle level not/rarely handled in the past. Information about likely scenarios.
Information that can be analyzed
Decision-making variable not in different ways.
clearly defined. Exception reports
Regular summarized reports.

Semi structured/structured
problems.
Information that can be drilled
Decisions on regular issues. deeper for insight.

Decisions on tactical issues. Information to help find out
exceptions so that they can be
reported to top management
Structured problems
Operational
level Operational information
Structured decision-making
Rule based information,
Decision-making on the basis of guidelines, handbook level
set rules information
A manager at the top level who is deciding on the location of a new factory of the
organization has strategic consideration like the labor costs of the location, proximity of the
location to the market and long-term growth prospects in mind. He/she is not bothered about
the shop floor level operational details like the reason for absence of a worker. He/she will
have a strategic view and would need only such information that helps him to take correct
decisions. Information is only a resource to him if it can help him to improve the quality of
his strategic decision-making. Similarly for other tiers, information is only a resource if one
can derive value from it.
Information Management
The business of information which is today a multibillion dollar industry first started when a
firm called Bloomberg started compiling important information about US companies and
their balance sheets and selling them to stock brokers. This was the first open trade in
information as a resource in modern times. From then on, information (external) has been
regarded as a resource that is traded10 sometimes freely and openly as in published literature
and sometimes clandestinely in the form of corporate intelligence reports. Also, internal
information is seen as equally valuable and every effort is made to derive more value from it
and to ensure that this internal information does not find its way outside the organization.
The idea of information management is based on the fundamental premise that information is
a resource that is valuable for an organization. The entire subject of information management
is about how to derive more and more value from this precious resource. However, unlike
most other resources that have to be procured from the outside environment, most
information resource is available within the organization if an effort has been made for its
safekeeping. Detailed logs of transactions of an organization with its external and internal
customers over a period mostly form the basic ingredient of a good quality information
resource. This basic information repository is then drilled and analyzed for actionable
information, this is one aspect of information management in which strategies are used to
derive greater value from the internal repository of data and information. The other aspect of
information management is to ensure that this internal information is not ‘leaked’ to the
outside world of competitors.
ISM/U1 Topic 9 Relevance of

Information in Decision Making
Management information systems combine hardware, software and network products in an

integrated solution that provides managers with data in a format suitable for analysis,
monitoring, decision-making and reporting. The system collects data, stores it in a database
and makes it available to users over a secure network.
Information Access
Managers need rapid access to information to make decisions about strategic, financial,
marketing and operational issues. Companies collect vast amounts of information, including
customer records, sales data, market research, financial records, manufacturing and inventory
data, and human resource records. However, much of that information is held in separate
departmental databases, making it difficult for decision makers to access data quickly. A
management information system simplifies and speeds up information retrieval by storing
data in a central location that is accessible via a network. The result is decisions that are
quicker and more accurate.
Data Collection
Management information systems bring together data from inside and outside the
organization. By setting up a network that links a central database to retail outlets,
distributors and members of a supply chain, companies can collect sales and production data
daily, or more frequently, and make decisions based on the latest information.
Collaboration
In situations where decision-making involves groups, as well as individuals, management
information systems make it easy for teams to make collaborative decisions. In a project
team, for example, management information systems enable all members to access the same
essential data, even if they are working in different locations.
Interpretation
Management information systems help decision-makers understand the implications of their
decisions. The systems collate raw data into reports in a format that enables decision-makers
to quickly identify patterns and trends that would not have been obvious in the raw data.
Decision-makers can also use management information systems to understand the potential
effect of change. A sales manager, for example, can make predictions about the effect of a
price change on sales by running simulations within the system and asking a number of
“what if the price was” questions.
Presentation
The reporting tools within management information systems enable decision-makers to tailor
reports to the information needs of other parties. If a decision requires approval by a senior
executive, the decision-maker can create a brief executive summary for review. If managers
want to share the detailed findings of a report with colleagues, they can create full reports and
provide different levels of supplementary data.
ISM/U2 Topic 1 File System

Vs. DBMS
File Management System, better known as File System is the most ancient and still the most
popular way to keep your data files organized on your drives.
On the other hand, when it comes to security and appropriate management of data based on
constraints and other stuff that we are going to talk about, the first choice of many experts,
is Database Management System (DBMS).
So what are they? What are the parameters to decide the best one for your need? Let’s come
to these aspects now.
File Systems is the traditional way to keep your data organized in a way which is easy for
physical access, whether it’s on your shelf or on the drives.
Earlier people used to keep records and maintain data in registers and any alteration/retrieval
to this data was difficult. When computers came, same agenda was followed for storing the
data on drives.
File System actually stores data in the form of isolated files which have their own set of
property table and physical location on the drive and user manually goes to these locations to
access the files.
It is an easy way to store data in general files like images, text, videos, audios etc., but
security is less because only options available to these files are the options given by the
operating system such as locks, hidden files and sharing. These files are hard to maintain
when it comes to frequent changes to these files.
Data redundancy is more and can’t be controlled easily. Data integration is hard to achieve
and also data consistency is not met.
Database Management System, abbreviated as DBMS, is an effective way to store the data
when constraints are high and data maintenance and security are the primary concern of the
user.
DBMS stores data in the form of interrelated tables and files. These are generally consist of
database management system providers that are used to store and manipulate databases,
hardware where the data is physically stored and an user friendly software developed to met
specific purpose in certain situations, using which user can easily access database without
worrying about the underlying schema of the database.
Database Management System is great way to manage data as, the data redundancy is
minimized due to interrelation of data entities and also provide a procedure for data
integration due to centralisation of data in the database. Security of data is also maximized
using password protection, encryption/decryption, granting authorized access and others.
File System vs DBMS – Difference between File System and DBMS
File Management System Database Management System
File System is a general, easy-to-use system to

Database management system is used when
store general files which require less security
security constraints are high.
and constraints.
Data Redundancy is more in file management Data Redundancy is less in database

system. management system.
Data Inconsistency is less in database

Data Inconsistency is more in file system.
management system.
Centralisation is hard to get when it comes to Centralisation is achieved in Database

File Management System. Management System.
In Database Management System, user is

User locates the physical address of the files to
unaware of physical address where data is
access data in File Management System.
stored.
Security is high in Database Management

Security is low in File Management System.
System.
Database Management System stores

File Management System stores unstructured
structured data which have well defined
data as isolated data files/entities.
constraints and interrelation.
ISM/U2 Topic 2 Structure of
a DBMS
One can imagine a database as a brain! How is the structure of brain? Bit sophisticated and
each part of the brain is responsible for some specific tasks. Similarly, Database is also
designed.
At very high level, a database is considered as shown in below diagram. Let us see them in
detail below.
 Applications:- It can be considered as a user friendly web page where the user enters
the requests. Here he simply enters the details that he needs and presses buttons to get the
data.
 End User:- They are the real users of the database. They can be developers,
designers, administrator or the actual users of the database.
 DDL:- Data Definition Language (DDL) is a query fired to create database, schema,
tables, mappings etc in the database. These are the commands used to create the objects like
tables, indexes in the database for the first time. In other words, they create structure of the
database.
 DDL Compiler:- This part of database is responsible for processing the DDL
commands. That means these compiler actually breaks down the command into machine
understandable codes. It is also responsible for storing the metadata information like table
name, space used by it, number of columns in it, mapping information etc.
 DML Compiler:- When the user inserts, deletes, updates or retrieves the record from
the database, he will be sending request which he understands by pressing some buttons. But
for the database to work/understand the request, it should be broken down to object code.
This is done by this compiler. One can imagine this as when a person is asked some question,
how this is broken down into waves to reach the brain!
 Query Optimizer:- When user fires some request, he is least bothered how it will be
fired on the database. He is not all aware of database or its way of performance. But whatever
be the request, it should be efficient enough to fetch, insert, update or delete the data from the
database. The query optimizer decides the best way to execute the user request which is
received from the DML compiler. It is similar to selecting the best nerve to carry the waves to
brain!
 Stored Data Manager:- This is also known as Database Control System. It is one the
main central system of the database. It is responsible for various tasks
o It converts the requests received from query optimizer to machine
understandable form. It makes actual request inside the database. It is like fetching the exact
part of the brain to answer.
o It helps to maintain consistency and integrity by applying the constraints.
That means, it does not allow inserting / updating / deleting any data if it has child entry.
Similarly it does not allow entering any duplicate value into database tables.
o It controls concurrent access. If there is multiple users accessing the database
at the same time, it makes sure, all of them see correct data. It guarantees that there is no data
loss or data mismatch happens between the transactions of multiple users.
o It helps to backup the database and recover data whenever required. Since it is
a huge database and when there is any unexpected exploit of transaction, and reverting the
changes are not easy. It maintains the backup of all data, so that it can be recovered.
 Data Files:- It has the real data stored in it. It can be stored as magnetic tapes,
magnetic disks or optical disks.
 Compiled DML:- Some of the processed DML statements (insert, update, delete) are
stored in it so that if there is similar requests, it will be re-used.
 Data Dictionary:- It contains all the information about the database. As the name
suggests, it is the dictionary of all the data items. It contains description of all the tables,
view, materialized views, constraints, indexes, triggers etc.
ISM/U2 Topic 3 People who Deal

with Database
 Database implementors, who build DBMS software; end users, who wish to store
and use data in a DBMS
 Database application programmers develop packages that facilitate data access for
end users, who are usually not computer professionals, suing the host or data languages and
software tools that DBMS vendors provide
 Database administrator is responsible for:
o Design of the conceptual and physical schemas: interacting with the users of
the system to understand what data is to be stored in the DBM and how it is likely to be used
o Security and authorization: ensuring that unauthorized data access is not
permitted
o Data availability and recovery from failures: ensuring if the system fails, users
can continue to access as much of the uncorrupted data as possible
o Database tuning: modifying the database to ensure adequate performance as
user requirements change.
ISM/U2 Topic 4 Introduction to

Data Models
Data models define how the logical structure of a database is modeled. Data
Models are fundamental entities to introduce abstraction in a DBMS. Data models
define how data is connected to each other and how they are processed and stored
inside the system.
The very first data model could be flat data-models, where all the data used are to be
kept in the same plane. Earlier data models were not so scientific, hence they were
prone to introduce lots of duplication and update anomalies.
Entity-Relationship Model
Entity-Relationship (ER) Model is based on the notion of real-world entities and
relationships among them. While formulating real-world scenario into the database
model, the ER Model creates entity set, relationship set, general attributes and
constraints.
ER Model is best used for the conceptual design of a database.
ER Model is based on:
 Entities and their
 Relationships among entities.
These concepts are explained below.

 Entity: An entity in an ER Model is a real-world entity having properties
called attributes. Every attribute is defined by its set of values called domain. For
example, in a school database, a student is considered as an entity. Student has various
attributes like name, age, class, etc.
 Relationship: The logical association among entities is called relationship.
Relationships are mapped with entities in various ways. Mapping cardinalities define the
number of association between two entities.
Mapping cardinalities:

o one to one
o one to many
o many to one
o many to many
Relational Model
The most popular data model in DBMS is the Relational Model. It is more scientific a
model than others. This model is based on first-order predicate logic and defines a table
as an n-ary relation.
The main highlights of this model are:
 Data is stored in tables called relations.

 Relations can be normalized.
 In normalized relations, values saved are atomic values.
 Each row in a relation contains a unique value.
 Each column in a relation contains values from a same domain.
ISM/U2 Topic 5 Concept
of Normalization
(1) In relational database design, the process of organizing data to minimize redundancy.
Normalization usually involves dividing a database into two or more tables and defining
relationships between the tables. The objective is to isolate data so that additions, deletions,
and modifications of a field can be made in just one table and then propagated through the
rest of the database via the defined relationships.
There are three main normal forms, each with increasing levels of normalization:
 First Normal Form (1NF): Each field in a table contains different information. For example, in
an employee list, each table would contain only one birthdate field.
 Second Normal Form (2NF): Each field in a table that is not a determiner of the contents of
another field must itself be a function of the other fields in the table.
 Third Normal Form (3NF): No duplicate information is permitted. So, for example, if two
tables both require a birthdate field, the birthdate information would be separated into a separate
table, and the two other tables would then access the birthdate information via an index field in the
birthdate table. Any change to a birthdate would automatically be reflect in all tables that link to the
birthdate table.
There are additional normalization levels, such as Boyce Codd Normal Form (BCNF), fourth
normal form (4NF) and fifth normal form (5NF). While normalization makes databases more
efficient to maintain, they can also make them more complex because data is separated into
so many different tables.
(2) In data processing, a process applied to all data in a set that produces a specific statistical
property. For example, each expenditure for a month can be divided by the total of all
expenditures to produce a percentage.
(3) In programming, changing the format of a floating-point number so the left-most digit in
the mantissa is not a zero.
ISM/U2 Topic 6 Overview of

Database Design, Entities, Attributes
and Relationships
Database Design is a collection of processes that facilitate the designing, development,

implementation and maintenance of enterprise data management systems
It helps produce database systems
1. That meet the requirements of the users

2. Have high performance.
The main objectives of database designing are to produce logical and physical designs
models of the proposed database system.
The logical model concentrates on the data requirements and the data to be stored
independent of physical considerations. It does not concern itself with how the data will be
stored or where it will be stored physically.
The physical data design model involves translating the logical design of the database onto
physical media using hardware resources and software systems such as database management
systems (DBMS).
Entity
An entity can be a real-world object, either animate or inanimate, that can be easily
identifiable. For example, in a school database, students, teachers, classes, and courses
offered can be considered as entities. All these entities have some attributes or properties that
give them their identity.
An entity set is a collection of similar types of entities. An entity set may contain entities with
attribute sharing similar values. For example, a Students set may contain all the students of a
school; likewise a Teachers set may contain all the teachers of a school from all faculties.
Entity sets need not be disjoint.
Attributes
Entities are represented by means of their properties, called attributes. All attributes have
values. For example, a student entity may have name, class, and age as attributes.
There exists a domain or range of values that can be assigned to attributes. For example, a
student’s name cannot be a numeric value. It has to be alphabetic. A student’s age cannot be
negative, etc.
Types of Attributes
 Simple attribute: Simple attributes are atomic values, which cannot be divided further. For
example, a student’s phone number is an atomic value of 10 digits.
 Composite attribute: Composite attributes are made of more than one simple attribute. For
example, a student’s complete name may have first_name and last_name.
 Derived attribute: Derived attributes are the attributes that do not exist in the physical
database, but their values are derived from other attributes present in the database. For example,
average_salary in a department should not be saved directly in the database, instead it can be
derived. For another example, age can be derived from data_of_birth.
 Single-value attribute: Single-value attributes contain single value. For example −
Social_Security_Number.
 Multi-value attribute: Multi-value attributes may contain more than one values. For
example, a person can have more than one phone number, email_address, etc.
These attribute types can come together in a way like:
 simple single-valued attributes

 simple multi-valued attributes
 composite single-valued attributes
 composite multi-valued attributes
Entity-Set and Keys
Key is an attribute or collection of attributes that uniquely identifies an entity among entity
set.
For example, the roll_number of a student makes him/her identifiable among students.
 Super Key: A set of attributes (one or more) that collectively identifies an entity in an entity
set.
 Candidate Key: A minimal super key is called a candidate key. An entity set may have more
than one candidate key.
 Primary Key: A primary key is one of the candidate keys chosen by the database designer to
uniquely identify the entity set.
Relationship
The association among entities is called a relationship. For example, an employee works_at a
department, a student enrolls in a course. Here, Works_at and Enrolls are called
relationships.
Relationship Set
A set of relationships of similar type is called a relationship set. Like entities, a relationship
too can have attributes. These attributes are called descriptive attributes.
Degree of Relationship
The number of participating entities in a relationship defines the degree of the relationship.
 Binary = degree 2
 Ternary = degree 3
 n-ary = degree
Mapping Cardinalities
Cardinality defines the number of entities in one entity set, which can be associated with the
number of entities of other set via relationship set.
 One-to-one: One entity from entity set A can be associated with at most one entity of entity
set B and vice versa.
 One-to-many: One entity from entity set A can be associated with more than one entities of
entity set B however an entity from entity set B, can be associated with at most one entity.
 Many-to-one: More than one entities from entity set A can be associated with at most one
entity of entity set B, however an entity from entity set B can be associated with more than one
entity from entity set A.
 Many-to-many: One entity from A can be associated with more than one entity from B and
vice versa.
ISM/U2 Topic 7
Integrity Constraints
Integrity Constraints
 Integrity constraints are a set of rules. It is used to maintain the quality of information.
 Integrity constraints ensure that the data insertion, updating, and other processes have to
be performed in such a way that data integrity is not affected.
 Thus, integrity constraint is used to guard against accidental damage to the database.
Types of Integrity Constraint

1. Domain constraints
 Domain constraints can be defined as the definition of a valid set of values for an attribute.
 The data type of domain includes string, character, integer, time, date, currency, etc. The
value of the attribute must be available in the corresponding domain.
Example:
2. Entity integrity constraints
 The entity integrity constraint states that primary key value can’t be null.
 This is because the primary key value is used to identify individual rows in relation and if the
primary key has a null value, then we can’t identify those rows.
 A table can contain a null value other than the primary key field.
Example:
3. Referential Integrity Constraints
 A referential integrity constraint is specified between two tables.

 In the Referential integrity constraints, if a foreign key in Table 1 refers to the Primary Key of
Table 2, then every value of the Foreign Key in Table 1 must be null or be available in Table 2.
Example:
4. Key constraints
 Keys are the entity set that is used to identify an entity within its entity set uniquely.
 An entity set can have multiple keys, but out of which one key will be the primary key. A
primary key can contain a unique and null value in the relational table.
Example:
ISM/U2 Topic 9 DDL and
DML Commands
DML statements are SQL statements that manipulate data. DML stands for Data
Manipulation Language. The SQL statements that are in the DML class are INSERT,
UPDATE and DELETE. Some people also lump the SELECT statement in the DML
classification.
Data Definition Languages (DDL) are used to define the database structure. Any CREATE,
DROP and ALTER commands are examples of DDL SQL statements.
Aggregate Functions are all about
 Performing calculations on multiple rows

 Of a single column of a table
 And returning a single value.
The ISO standard defines five (5) aggregate functions namely;
1)COUNT
2)SUM
3)AVG
4)MIN
5) MAX
ISM/U3 Topic 1 Quantitative and
Qualitative Aspects
Cost benefit analysis involves the weighing of the costs associated with a decision against the
benefits arising from that decision. The analysis is used to decide whether to proceed with a
course of action or not. Cost benefit analysis can include both quantitative and qualitative
factors. For example, the analysis of a decision to construct a facility in a particular city could
include quantitative factors, such as the amount of tax breaks that can be obtained, as well as
qualitative factors, such as the rating of the schools in that city to which workers would send
their children.
For decisions involving large amounts of invested funds, the emphasis of a cost benefit
analysis tends to be on the cash flows associated with the investment. This may include the
initial and subsequent investment of funds, as well as the tax effects of depreciation,
maintenance costs, and projected price points. In this situation, qualitative factors tend to be
addressed after a “hard” quantitative analysis has already been completed.
Examples of decisions to which cost benefit analysis can be applied are:
 Whether to expend funds on a new fixed asset. The analysis is the cost to buy the asset,
versus the benefit of any cash flows to be derived by using the asset.
 Whether to hire staff to design a new product. The analysis is the cost of the new staff,
versus the cash flows to be derived from sale of the new product.
 Whether to hire quality assurance staff to reduce product failures. The analysis is the cost of
the new employees, versus the costs to be avoided by maintaining higher product quality levels.
Cost benefit analysis works best when most of the costs and benefits can be reduced to
financial terms, so that they can be more easily compared. The analysis does not provide
consistent results when the decision maker must compare qualitative concepts, without being
able to convert them to financial outcomes. The concept can also yield inconsistent results
when cash inflows and outflows are expected to occur over long periods of time, since it can
be quite difficult to accurately predict the amount and/or timing of the more distant cash
flows.
Quantitative factors are numerical outcomes from a decision that can be measured. These
factors are commonly included in various financial analyses, which are then used to evaluate
a situation. Managers are typically taught to rely on quantitative factors as a large part of their
decision making processes. Examples of quantitative factors are:
 Direct labor hours. A change in the number of labor hours required to complete a task if
automation is used.
 Direct materials cost. A change in the per-unit cost of materials if a purchase is placed in a
larger order volume.
 Interest cost. The amount of additional expense that will be incurred if a loan is used to buy
a fixed asset, rather than selling stock.
 Product returns. The cost of the product returns that will occur if the decision is made to use
lower-quality materials in the construction of a product.
While quantitative factors certainly should form a large part of any decision, there are other
issues to consider. For example, the outcome of a decision to shut down a factory will impact
the local community, which has supported the business for many years. Or, the numbers may
state that a single product within a product line should be cancelled, but the company needs
to present a complete product line to its customers, and so elects to retain the product.
The decision to use quantitative factors is considered more important when a large amount of
funding will be deployed, since there is a greater risk of losing or at least under-utilizing the
money. Quantitative factors are less important when there is less money that will be impacted
by the decision.
Qualitative factors are decision outcomes that cannot be measured. Examples of qualitative

factors are:
 The impact on employee morale of adding a break room to the production area.
 The impact on customer opinions of a business if an investment is made in answering their
phone calls in less time by adding customer support staff.
 The impact on investors of conducting a road show to meet as many of them as possible.
 The impact on the local community of allowing employees to spend a few hours of paid time
assisting with community projects.
 It may be possible to use somewhat cheaper components in products. However, if this is
done too much, it may create an overall impression of reduced quality, which may lead customers to
buy fewer products.
A manager should consider qualitative factors as part of his or her analysis of a decision.
Depending on the manager and the level of investment involved, qualitative factors can be
the deciding point in whether to engage in a certain activity. For example, if a large
investment of funds is involved, the key decision factors are more likely to be quantitative,
since the investing business has a great deal at stake in the decision. However, if the
investment of funds is minor, the impact of qualitative factors could play a more important
role in the decision.
From a branding perspective, qualitative factors can be particularly important. Proper

branding requires high expenditure levels to establish and maintain an aura of quality, which
a purely quantitative analysis might not justify.
ISM/U3 Topic 2 Assessing

Information needs of
the Organization
 Operational Decisions. These decisions are made by workers and their supervisors and are
concerned with daily production.
 Managerial Decisions. These decisions are made by mid-level managers and are concerned
with topics such as hiring, and motivating employees. Strategic decisions. These are different from
operational and managerial decisions.
 Strategic Decisions are made by organizational leaders and are concerned about the mission
and the re-organization of a firm. These decisions tend to be more unstructured, involve more
searching of the environment and tend to occur less frequently than either operational or
managerial decisions.
Strategic Information Systems help policymakers, executives, and planners decide on

organization mission and strategies. Organizations make many different strategic decisions.
Sometimes organizations make these decisions consciously, as when the firm engages in
strategic planning. Other times decisions are made without being aware of the strategic
importance of these decisions, as when the environment forces the organization to act in
certain ways. It is difficult to know what issues will be strategically important for the
organization. One way to understand organization’s strategic issues is to look at data needed
in previous planning efforts.
Unfortunately, history is often not a good guide of future strategic issues. Because
information systems help in articulating strategic issues, if the information system focuses on
the wrong issue it could radically mislead the organization. How can we anticipate
information needs of organizational leaders? The answer to this question is the focus of this
section.
Though most readers think of systems as information inside computers, this need not be the
case. In thinking about Strategic information systems, we must also consider non-
computerized sources of information, e.g. reports and commissioned studies, experts’ advice,
and informal communication networks. One should also think through the timing of
information. In particular, should the analyst collect and analyze the information hoping that
it will be used or should the analyst wait for organizational leaders to articulate the need and
then collect the information. . In addressing the question of timing, the following two
tradeoffs should be considered:
 Relevance versus timely availability. Data collected and analyzed after the need arises are
more likely to be relevant to the decision-maker’s task, but because of delays in collecting
information data may not be available when needed. Periodic or continuous data gathering.
Collecting data as the need arises allows analysts and decision-makers to define precisely what must
be collected. Regular data collection often leads to data categories that are too narrow or too broad.
 Periodic Collection – collecting data only when the need arises – allows us to assemble the
most appropriate data but may not give us a basis for comparing trends.
By its very nature, building a strategic information system requires us to think through not
only what is needed but when is it needed and how can information be organized. The
analyst must specify the information needs, the data collection strategies and the analysis
needed. At the same time, the temptation to collect data on every conceivable contingency
must be tempered by recognition that collection is expensive. In practically every case, the
minimum should be done.
What do you need? What do you want?
It’s not an easy challenge to design a Strategic Information System to meet the information
needs and expectations of organizational leaders. Various obstacles prevent simple
determination of information requirements. Dubois et al. (1982) have suggested three
categories of difficulty in the determination of information requirements:
 A well-defined set of requirements does not exist or is unstable.

 The organizational leaders are unable to specify requirements.
 The analysts are unable to elicit those requirements and/or evaluate them for correctness
and completeness.
The problems that users have in specifying their own needs can be traced to general cognitive
limitations of all human beings. For example, people, even experts, are not aware how they
make decisions and what information they use in those decisions. People think, but often do
not know how they think. The process of thinking for the most part is an unconscious
process.
Thus, when you ask someone how did they make their decision, they may list a number of
pieces of information that they claim they paid attention to but in reality they may have made
their mind up based on a much smaller set of information. As a consequence of this cognitive
limitation, clients often will not differentiate true information needs from wishes (Tagart and
Tharp 1977). When asked what do you need, they present a long wish list; including items
which they do not use even if the information was available.
Another reason why organizational leaders may not be able to articulate their information
needs is because they may have forgotten occasions in which they needed more information.
When clients are interviewed about their needs, they have to remember how key information
was missing in the past decisions. This is very unpleasant. No one is in a habit of
remembering his or her failures or episodes in which their needs were not satisfied.
Unpleasant events are often forgotten, especially when you, yourself, are in charge.
Interviewing organizational leaders about failures of their organizations to supply critical
information is akin to asking you when did you make bad judgments. It is an unpleasant task
that you rather forget. For some people it is so unpleasant that they may unconsciously distort
the facts so not to remember the events. If managers and leaders forget their failures, if they
prefer not remember how they failed to gather necessary information, interviews will not be
very useful. If the manager has a good memory for these instances, the analyst will have a
good basis for specifying the information requirements.
Various other severe and systematic cognitive biases also impair the ability to define
information needs (IBM Corporation 1981). But it is not just cognitive limitations that
create havoc in assessing information needs. Clients’ lack of expertise and knowledge is a
also a common obstacle to formulating and stating true needs (Ellis 1982; Hogarth 1981).
Many decision makers do not realize how their own needs change over time and how these
needs are affected by external events. Many are not aware of new technological possibilities
and keep projecting future needs based on their existing expectations from current
information systems. In short, many do not know what they want.
Finally there is the problem of distinguishing between what clients’ want and what they need.
Sometimes organizational leaders get what they want but not necessarily what is good for the
organization. Information systems cannot be serving the needs of individuals and ignore the
needs of organizations. Sometimes individuals’ cognitive styles prevent them from
examining information presented in different formats.
Clearly, information systems should help individuals see beyond their own limitations.
Sometimes differences in time horizons, personal career objectives, and internal organization
politics prevent some organizational leaders from seeing the emerging changes around them.
Information systems cannot rubber stamp the status quo. They need to engage leaders in
thinking about the emerging future and assist them in making it a reality. Information systems
are intended not only to serve clients but also to enhance and improve their decision making.
By focusing solely on what clients want information systems may do them a disservice.
This is not to suggest that analysts can identify users’ needs better than clients themselves.
Analysts who do not involve clients risk the possibility of planning systems that are not used.
Information system analysts are often ignorant of the subject matter. Planning without
engaging the client may lead to wasted effort.
We suggest that information systems should play both roles: give clients the information they
are asking for but add to it information they may need but not have asked for. To do so,
analysts and clients must collaborate to determine information needs. How could this be
done?
ISM/U3 Topic 3 System

Development: Concept, Types
of System
Systems Design
It is a process of planning a new business system or replacing an existing system by defining
its components or modules to satisfy the specific requirements. Before planning, you need to
understand the old system thoroughly and determine how computers can best be used in order
to operate efficiently.
System Design focuses on how to accomplish the objective of the system.
System Analysis and Design (SAD) mainly focuses on:
 Systems
 Processes
 Technology
What is a System?
The word System is derived from Greek word Systema, which means an organized
relationship between any set of components to achieve some common cause or objective.
A system is “an orderly grouping of interdependent components linked together according to

a plan to achieve a specific goal.”
Constraints of a System
A system must have three basic constraints:
 A system must have some structure and behavior which is designed to achieve a predefined

objective.
 Interconnectivity and interdependence must exist among the system components.
 The objectives of the organization have a higher priority than the objectives of its
subsystems.
For example, traffic management system, payroll system, automatic library system, human
resources information system.
Properties of a System
A system has the following properties:
Organization
Organization implies structure and order. It is the arrangement of components that helps to
achieve predetermined objectives.
Interaction
It is defined by the manner in which the components operate with each other.
For example, in an organization, purchasing department must interact with production

department and payroll with personnel department.
Interdependence
Interdependence means how the components of a system depend on one another. For proper
functioning, the components are coordinated and linked together according to a specified
plan. The output of one subsystem is the required by other subsystem as input.
Integration
Integration is concerned with how a system components are connected together. It means that
the parts of the system work together within the system even if each part performs a unique
function.
Central Objective
The objective of system must be central. It may be real or stated. It is not uncommon for an
organization to state an objective and operate to achieve another.
The users must know the main objective of a computer application early in the analysis for a
successful design and conversion.
Types of System
1. Conceptual Systems
 Are theoretical and explanatory in the nature.

 Provide the much needed clarification.
 Provide theoretical framework for which there may or may not be any real life counterpart.
 E.g. of such systems can be philosophy, theology etc.
2. Empirical Systems
 Are very practical, specific and also very operational in the nature.
 Can be based on the conceptual system.
 Examination system, surgery act as very good examples of the empirical systems.
3. Open Systems
 Involve continuous interaction with the environment.

 So exchanges the information, material, energy with the environment.
 Is open and also self organizing in the nature.
 Is also adoptive or adaptive to the changing environment as it is flexible.
4. Closed Systems
 Shuns any kind of the exchange with the environment.

 Is rigid in nature.
 Is not at all amenable to the change.
 Is also self contained.
 Is somewhat isolated in the nature.
 Is having a well defined boundary.
 Is not at all adaptive in the nature.
5. Natural Systems
 Such Systems exist and also abound in the nature.

b. Are also not at all the results of the human endeavors.
c. Rivers, mountains, minerals etc. are the major examples of the natural Systems.
6. Artificial Systems
 Are manufactured (man made).

 Examples of such Systems are dams, canals, roads, machines, factories etc.
7. Probabilistic Systems
 Based on the predictability of the behavior or the outcome.
8. Deterministic Systems
 In such Systems, the interaction of the elements is known.

 As the behavior of the elements is pre determined, it becomes possible to work upon the
reaction well in the advance.
ISM/U3 Topic 4 System Approaches

– System Development Life Cycle
An effective System Development Life Cycle (SDLC) should result in a high quality system
that meets customer expectations, reaches completion within time and cost evaluations, and
works effectively and efficiently in the current and planned Information Technology
infrastructure.
System Development Life Cycle (SDLC) is a conceptual model which includes policies and
procedures for developing or altering systems throughout their life cycles.
SDLC is used by analysts to develop an information system. SDLC includes the following
activities:
 Requirements
 Design
 Implementation
 Testing
 Deployment
 Operations
 Maintenance
Phases of SDLC
Systems Development Life Cycle is a systematic approach which explicitly breaks down the
work into phases that are required to implement either new or modified Information System.
Feasibility Study or Planning
 Define the problem and scope of existing system.

 Overview the new system and determine its objectives.
 Confirm project feasibility and produce the project Schedule.
 During this phase, threats, constraints, integration and security of system are also
considered.
 A feasibility report for the entire project is created at the end of this phase.
Analysis and Specification
 Gather, analyze, and validate the information.

 Define the requirements and prototypes for new system.
 Evaluate the alternatives and prioritize the requirements.
 Examine the information needs of end-user and enhances the system goal.
 A Software Requirement Specification (SRS) document, which specifies the software,
hardware, functional, and network requirements of the system is prepared at the end of this phase.
System Design
 Includes the design of application, network, databases, user interfaces, and system
interfaces.
 Transform the SRS document into logical structure, which contains detailed and complete
set of specifications that can be implemented in a programming language.
 Create a contingency, training, maintenance, and operation plan.
 Review the proposed design. Ensure that the final design must meet the requirements
stated in SRS document.
 Finally, prepare a design document which will be used during next phases.
Implementation
 Implement the design into source code through coding.

 Combine all the modules together into training environment that detects errors and defects.
 A test report which contains errors is prepared through test plan that includes test related
tasks such as test case generation, testing criteria, and resource allocation for testing.
 Integrate the information system into its environment and install the new system.
Maintenance/Support
 Include all the activities such as phone support or physical on-site support for users that is
required once the system is installing.
 Implement the changes that software might undergo over a period of time, or implement
any new requirements after the software is deployed at the customer location.
 It also includes handling the residual errors and resolve any issues that may exist in the
system even after the testing phase.
 Maintenance and support may be needed for a longer time for large systems and for a short
time for smaller systems.
ISM/U3 Topic 5 Prototyping, End

User Development
The Prototyping Model is a systems development method (SDM) in which a prototype (an

early approximation of a final system or product) is built, tested, and then reworked as
necessary until an acceptable prototype is finally achieved from which the complete system
or product can now be developed. This model works best in scenarios where not all of the
project requirements are known in detail ahead of time. It is an iterative, trial-and-error
process that takes place between the developers and the users.
There are several steps in the Prototyping Model:
1. The new system requirements are defined in as much detail as possible. This usually involves
interviewing a number of users representing all the departments or aspects of the existing system.
2. A preliminary design is created for the new system.
3. A first prototype of the new system is constructed from the preliminary design. This is
usually a scaled-down system, and represents an approximation of the characteristics of the final
product.
4. The users thoroughly evaluate the first prototype, noting its strengths and weaknesses, what
needs to be added, and what should to be removed. The developer collects and analyzes the
remarks from the users.
5. The first prototype is modified, based on the comments supplied by the users, and a second
prototype of the new system is constructed.
6. The second prototype is evaluated in the same manner as was the first prototype.
7. The preceding steps are iterated as many times as necessary, until the users are satisfied
that the prototype represents the final product desired.
8. The final system is constructed, based on the final prototype.
9. The final system is thoroughly evaluated and tested. Routine maintenance is carried out on a
continuing basis to prevent large-scale failures and to minimize downtime.
End User Development
ISM/U3 Topic 6 Waterfall Method

The Waterfall Model was the first Process Model to be introduced. It is also referred to as
a linear-sequential life cycle model. It is very simple to understand and use. In a waterfall
model, each phase must be completed before the next phase can begin and there is no
overlapping in the phases.
The Waterfall model is the earliest SDLC approach that was used for software development.
The waterfall Model illustrates the software development process in a linear sequential flow.
This means that any phase in the development process begins only if the previous phase is
complete. In this waterfall model, the phases do not overlap.
Waterfall Model – Design
Waterfall approach was first SDLC Model to be used widely in Software Engineering to
ensure success of the project. In “The Waterfall” approach, the whole process of software
development is divided into separate phases. In this Waterfall model, typically, the outcome
of one phase acts as the input for the next phase sequentially.
The following illustration is a representation of the different phases of the Waterfall Model.
The sequential phases in Waterfall model are:
 Requirement Gathering and analysis− All possible requirements of the system to be

developed are captured in this phase and documented in a requirement specification document.
 System Design− The requirement specifications from first phase are studied in this phase
and the system design is prepared. This system design helps in specifying hardware and system
requirements and helps in defining the overall system architecture.
 Implementation− With inputs from the system design, the system is first developed in small
programs called units, which are integrated in the next phase. Each unit is developed and tested for
its functionality, which is referred to as Unit Testing.
 Integration and Testing− All the units developed in the implementation phase are integrated
into a system after testing of each unit. Post integration the entire system is tested for any faults and
failures.
 Deployment of system− Once the functional and non-functional testing is done; the product
is deployed in the customer environment or released into the market.
 Maintenance− There are some issues which come up in the client environment. To fix those
issues, patches are released. Also to enhance the product some better versions are released.
Maintenance is done to deliver these changes in the customer environment.
All these phases are cascaded to each other in which progress is seen as flowing steadily
downwards (like a waterfall) through the phases. The next phase is started only after the
defined set of goals are achieved for previous phase and it is signed off, so the name
“Waterfall Model“. In this model, phases do not overlap.
Application
Every software developed is different and requires a suitable SDLC approach to be followed
based on the internal and external factors. Some situations where the use of Waterfall model
is most appropriate are:
 Requirements are very well documented, clear and fixed.

 Product definition is stable.
 Technology is understood and is not dynamic.
 There are no ambiguous requirements.
 Ample resources with required expertise are available to support the product.
 The project is short.
Advantages
The advantages of waterfall development are that it allows for departmentalization and
control. A schedule can be set with deadlines for each stage of development and a product
can proceed through the development process model phases one by one.
Development moves from concept, through design, implementation, testing, installation,

troubleshooting, and ends up at operation and maintenance. Each phase of development
proceeds in strict order.
Some of the major advantages of the Waterfall Model are as follows:
 Simple and easy to understand and use

 Easy to manage due to the rigidity of the model. Each phase has specific deliverables and a
review process.
 Phases are processed and completed one at a time.
 Works well for smaller projects where requirements are very well understood.
 Clearly defined stages.
 Well understood milestones.
 Easy to arrange tasks.
 Process and results are well documented.
Disadvantages
The disadvantage of waterfall development is that it does not allow much reflection or
revision. Once an application is in the testing stage, it is very difficult to go back and change
something that was not well-documented or thought upon in the concept stage.
The major disadvantages of the Waterfall Model are as follows:
 No working software is produced until late during the life cycle.

 High amounts of risk and uncertainty.
 Not a good model for complex and object-oriented projects.
 Poor model for long and ongoing projects.
 Not suitable for the projects where requirements are at a moderate to high risk of changing.
So, risk and uncertainty is high with this process model.
 It is difficult to measure progress within stages.
 Cannot accommodate changing requirements.
 Adjusting scope during the life cycle can end a project.
 Integration is done as a “big-bang. at the very end, which doesn’t allow identifying any
technological or business bottleneck or challenges early.
ISM/U3 Topic 7 Spiral Method

The spiral model combines the idea of iterative development with the systematic, controlled
aspects of the waterfall model. This Spiral model is a combination of iterative development
process model and sequential linear development model i.e. the waterfall model with a very
high emphasis on risk analysis. It allows incremental releases of the product or incremental
refinement through each iteration around the spiral.
Design
The spiral model has four phases. A software project repeatedly passes through these phases
in iterations called Spirals.
Identification
This phase starts with gathering the business requirements in the baseline spiral. In the
subsequent spirals as the product matures, identification of system requirements, subsystem
requirements and unit requirements are all done in this phase.
This phase also includes understanding the system requirements by continuous

communication between the customer and the system analyst. At the end of the spiral, the
product is deployed in the identified market.
Design
The Design phase starts with the conceptual design in the baseline spiral and involves
architectural design, logical design of modules, physical product design and the final design
in the subsequent spirals.
Construct or Build
The Construct phase refers to production of the actual software product at every spiral. In the
baseline spiral, when the product is just thought of and the design is being developed a POC
(Proof of Concept) is developed in this phase to get customer feedback.
Then in the subsequent spirals with higher clarity on requirements and design details a
working model of the software called build is produced with a version number. These builds
are sent to the customer for feedback.
Evaluation and Risk Analysis

Risk Analysis includes identifying, estimating and monitoring the technical feasibility and
management risks, such as schedule slippage and cost overrun. After testing the build, at the
end of first iteration, the customer evaluates the software and provides feedback.
The following illustration is a representation of the Spiral Model, listing the activities in each
phase.
Based on the customer evaluation, the software development process enters the next iteration
and subsequently follows the linear approach to implement the feedback suggested by the
customer. The process of iterations along the spiral continues throughout the life of the
software.
Application
The Spiral Model is widely used in the software industry as it is in sync with the natural
development process of any product, i.e. learning with maturity which involves minimum
risk for the customer as well as the development firms.
The following pointers explain the typical uses of a Spiral Model:
 When there is a budget constraint and risk evaluation is important.

 For medium to high-risk projects.
 Long-term project commitment because of potential changes to economic priorities as the
requirements change with time.
 Customer is not sure of their requirements which is usually the case.
 Requirements are complex and need evaluation to get clarity.
 New product line which should be released in phases to get enough customer feedback.
 Significant changes are expected in the product during the development cycle.
Pros and Cons

The advantage of spiral lifecycle model is that it allows elements of the product to be added
in, when they become available or known. This assures that there is no conflict with previous
requirements and design.
This method is consistent with approaches that have multiple software builds and releases
which allows making an orderly transition to a maintenance activity. Another positive aspect
of this method is that the spiral model forces an early user involvement in the system
development effort.
On the other side, it takes a very strict management to complete such products and there is a
risk of running the spiral in an indefinite loop. So, the discipline of change and the extent of
taking change requests is very important to develop and deploy the product successfully.
The advantages of the Spiral SDLC Model are as follows −
 Changing requirements can be accommodated.

 Allows extensive use of prototypes.
 Requirements can be captured more accurately.
 Users see the system early.
 Development can be divided into smaller parts and the risky parts can be developed earlier
which helps in better risk management.
The disadvantages of the Spiral SDLC Model are as follows
 Management is more complex.

 End of the project may not be known early.
 Not suitable for small or low risk projects and could be expensive for small projects.
 Process is complex
 Spiral may go on indefinitely.
 Large number of intermediate stages requires excessive documentation.
 ISM/U3 Topic 8 System Analysis

 THEINTACTFRONT19 FEB 2019 2 COMMENTS
 Systems analysis the process of observing systems for troubleshooting or
development purposes. It is applied to information technology, where computer-based
systems require defined analysis according to their makeup and design.
 In IT, systems analysis can include looking at end-user implementation of a software
package or product; looking in-depth at source code to define the methodologies used
in building software; or taking feasibility studies and other types of research to
support the use and production of a software product, among other things.
 Systems analysis professionals are often called upon to look critically at systems,
and redesign or recommend changes as necessary. Inside and outside of the business
world, systems analysts help to evaluate whether a system is viable or efficient within
the context of its overall architecture, and help to uncover the options available to the
employing business or other party.
 Systems analysts are different than systems administrators, who maintain systems
day to day, and their roles generally involve a top-level view of a system to determine
its overall effectiveness according to its design.
 ISM/U3 Topic 9 System Design

and Implementation
 An operating system is a construct that allows the user application programs to
interact with the system hardware. Operating system by itself does not provide any
function but it provides an atmosphere in which different applications and programs
can do useful work.
 There are many problems that can occur while designing and implementing an
operating system. These are covered in operating system design and implementation.

 Operating System Design Goals

 It is quite complicated to define all the goals and specifications of the operating
system while designing it.The design changes depending on the type of the operating
system i.e if it is batch system, time shared system, single user system, multi user
system, distributed system etc.
 There are basically two types of goals while designing an operating system. These
are:
 User Goals
 The operating system should be convenient, easy to use, reliable, safe and fast
according to the users. However, these specifications are not very useful as there is no
set method to achieve these goals.
 System Goals
 The operating system should be easy to design, implement and maintain. These are
specifications required by those who create, maintain and operate the operating
system. But there is not specific method to achieve these goals as well.
 Operating System Mechanisms and Policies
 There is no specific way to design an operating system as it is a highly creative task.
However, there are general software principles that are applicable to all operating
systems.
 A subtle difference between mechanism and policy is that mechanism shows how to
do something and policy shows what to do. Policies may change over time and this
would lead to changes in mechanism. So, it is better to have a general mechanism that
would require few changes even when a policy change occurs.
 For example – If the mechanism and policy are independent, then few changes are
required in mechanism if policy changes. If a policy favours I/O intensive processes
over CPU intensive processes, then a policy change to preference of CPU intensive
processes will not change the mechanism.
 Operating System Implementation
 The operating system needs to be implemented after it is designed. Earlier they were
written in assembly language but now higher level languages are used. The first
system not written in assembly language was the Master Control Program (MCP) for
Burroughs Computers.
 Advantages of Higher Level Language
 There are multiple advantages to implementing an operating system using a higher
level language such as: the code is written more fast, it is compact and also easier to
debug and understand. Also, the operating system can be easily moved from one
hardware to another if it is written in a high level language.
 Disadvantages of Higher Level Language
 Using high level language for implementing an operating system leads to a loss in
speed and increase in storage requirements. However in modern systems only a small
amount of code is needed for high performance, such as the CPU scheduler and
memory manager. Also, the bottleneck routines in the system can be replaced by
assembly language equivalents if required.
ISM/U4 Topic 1 Transaction

Processing System
Transaction Processing System is a type of information processing system, software and

hardware combination, which supports Transaction processing. Transaction processing is a
type of computer processing in which each individual indivisible task, called a transaction, is
worked upon and executed as and when it comes. The response to requests is immediate. In
contrast to this is batch processing in which a batch of requests are stored and then executed
all at once. A transaction Processing System is also used to collect, store, retrieve and modify
transactions executed by an organization.
In transaction processing, user or customer interaction is required, unlike batch processing. It

allows only certain predefined, typically short duration, tasks and transactions to be
performed by the user and provides a predictable request execution time, which is pre-
programmed. This gives it the following characteristics:
 Predictability
 Reliability
 Consistency
Transaction processing systems are helpful in three areas:
 System runtime functions: An execution environment with high response time, reliability of
execution and security of data
 System administration functions: Administrative support required for managing
transactions
 Application development functions: Customization support to design and manage the user
interface.
Example: ATM (Automatic Teller Machine)
ISM/U4 Topic 2 Expert System

Expert systems (ES) are one of the prominent research domains of AI. It is introduced by the
researchers at Stanford University, Computer Science Department.
What are Expert Systems?
The expert systems are the computer applications developed to solve complex problems in a
particular domain, at the level of extra-ordinary human intelligence and expertise.
Characteristics of Expert Systems
 High performance
 Understandable
 Reliable
 Highly responsive
Capabilities of Expert Systems
 Advising
 Instructing and assisting human in decision making
 Demonstrating
 Deriving a solution
 Diagnosing
 Explaining
 Interpreting input
 Predicting results
 Justifying the conclusion
 Suggesting alternative options to a problem
They are incapable of:
 Substituting human decision makers

 Possessing human capabilities
 Producing accurate output for inadequate knowledge base
 Refining their own knowledge
Components of Expert Systems
 Knowledge Base
 Inference Engine
 User Interface
Knowledge Base
It contains domain-specific and high-quality knowledge.
Knowledge is required to exhibit intelligence. The success of any ES majorly depends upon
the collection of highly accurate and precise knowledge.
What is Knowledge?
The data is collection of facts. The information is organized as data and facts about the task
domain. Data, information, and past experience combined together are termed as
knowledge.
Components of Knowledge Base
The knowledge base of an ES is a store of both, factual and heuristic knowledge.
 Factual Knowledge: It is the information widely accepted by the Knowledge Engineers and
scholars in the task domain.
 Heuristic Knowledge: It is about practice, accurate judgement, one’s ability of evaluation,
and guessing.
Knowledge Representation
It is the method used to organize and formalize the knowledge in the knowledge base. It is in
the form of IF-THEN-ELSE rules.
Knowledge Acquisition
The success of any expert system majorly depends on the quality, completeness, and
accuracy of the information stored in the knowledge base.
The knowledge base is formed by readings from various experts, scholars, and
the Knowledge Engineers. The knowledge engineer is a person with the qualities of
empathy, quick learning, and case analyzing skills.
He acquires information from subject expert by recording, interviewing, and observing him at
work, etc. He then categorizes and organizes the information in a meaningful way, in the
form of IF-THEN-ELSE rules, to be used by interference machine. The knowledge engineer
also monitors the development of the ES.
Inference Engine
Use of efficient procedures and rules by the Inference Engine is essential in deducting a
correct, flawless solution.
In case of knowledge-based ES, the Inference Engine acquires and manipulates the
knowledge from the knowledge base to arrive at a particular solution.
In case of rule based ES, it:
 Applies rules repeatedly to the facts, which are obtained from earlier rule application.
 Adds new knowledge into the knowledge base if required.
 Resolves rules conflict when multiple rules are applicable to a particular case.
To recommend a solution, the Inference Engine uses the following strategies −
 Forward Chaining
 Backward Chaining
User Interface
User interface provides interaction between user of the ES and the ES itself. It is generally
Natural Language Processing so as to be used by the user who is well-versed in the task
domain. The user of the ES need not be necessarily an expert in Artificial Intelligence.
It explains how the ES has arrived at a particular recommendation. The explanation may
appear in the following forms:
 Natural language displayed on screen.

 Verbal narrations in natural language.
 Listing of rule numbers displayed on the screen.
The user interface makes it easy to trace the credibility of the deductions.
Requirements of Efficient ES User Interface
 It should help users to accomplish their goals in shortest possible way.

 It should be designed to work for user’s existing or desired work practices.
 Its technology should be adaptable to user’s requirements; not the other way round.
 It should make efficient use of user input.
Expert Systems Limitations
No technology can offer easy and complete solution. Large systems are costly, require
significant development time, and computer resources. ESs have their limitations which
include −
 Limitations of the technology

 Difficult knowledge acquisition
 ES are difficult to maintain
 High development costs
Applications of Expert System
The following table shows where ES can be applied.
Application Description
Design Domain Camera lens design, automobile design.
Diagnosis Systems to deduce cause of disease from observed

Medical Domain
data, conduction medical operations on humans.
Comparing data continuously with observed system or with

Monitoring Systems prescribed behavior such as leakage monitoring in long
petroleum pipeline.
Process Control Systems Controlling a physical process based on monitoring.
Knowledge Domain Finding out faults in vehicles, computers.
Finance/Commerce Detection of possible fraud, suspicious transactions, stock

market trading, Airline scheduling, cargo scheduling.
Expert System Technology
There are several levels of ES technologies available. Expert systems technologies include
 Expert System Development Environment− The ES development environment includes

hardware and tools. They are −
o Workstations, minicomputers, mainframes.
o High level Symbolic Programming Languages such as LISt Programming (LISP)
and PROgrammation en LOGique (PROLOG).
o Large databases.
 Tools− They reduce the effort and cost involved in developing an expert system to large
extent.
o Powerful editors and debugging tools with multi-windows.
o They provide rapid prototyping
o Have Inbuilt definitions of model, knowledge representation, and inference design.
 Shells− A shell is nothing but an expert system without knowledge base. A shell provides the
developers with knowledge acquisition, inference engine, user interface, and explanation facility. For
example, few shells are given below −
o Java Expert System Shell (JESS) that provides fully developed Java API for creating an
expert system.
o Vidwan, a shell developed at the National Centre for Software Technology, Mumbai
in 1993. It enables knowledge encoding in the form of IF-THEN rules.
 ISM/U4 Topic 3 Decision

Support System
 A decision support system (DSS) is a computerized information system used to
support decision-making in an organization or a business. A DSS lets users sift
through and analyze massive reams of data and compile information that can be used
to solve problems and make better decisions.
 The benefits of decision support systems include more informed decision-making,
timely problem-solving and improved efficiency for dealing with problems with
rapidly changing variables.
 A DSS can be used by operations management and planning levels in an organization
to compile information and data and to synthesize it into actionable intelligence. This
allows the end user to make more informed decisions at a quicker pace.
 The DSS is an information application that produces comprehensive information.
This is different from an operations application, which would be used to collect the
data in the first place. A DSS is primarily used by mid- to upper-level management,
and it is key for understanding large amounts of data.
 For example, a DSS could be used to project a company’s revenue over the upcoming
six months based on new assumptions about product sales. Due to the large amount of
variables that surround the projected revenue figures, this is not a straightforward
calculation that can be done manually. A DSS can integrate multiple variables and
generate an outcome and alternate outcomes, all based on the company’s past product
sales data and current variables.
 The primary purpose of using a DSS is to present information to the customer in a
way that is easy to understand. A DSS system is beneficial because it can be
programed to generate many types of reports, all based on user specifications. A DSS
can generate information and output it graphically, such as a bar chart that represents
projected revenue, or as a written report.
 Where Can a DSS Be Used?
 As technology continues to advance, data analysis is no longer limited to large bulky
mainframe computers. Since a DSS is essentially an application, it can be loaded on
most computer systems, including laptops. Certain DSS applications are also available
through mobile devices. The flexibility of the DSS is extremely beneficial for users
who travel frequently. This gives them the opportunity to be well-informed at all
times, which in turn provides them with the ability to make the best decisions for their
company and customers at any time.
ISM/U4 Topic 4 Executive

Information System
Executive support systems are intended to be used by the senior managers directly to

provide support to non-programmed decisions in strategic management.
These information are often external, unstructured and even uncertain. Exact scope and
context of such information is often not known beforehand.
This information is intelligence based:
 Market intelligence
 Investment intelligence
 Technology intelligence
Examples of Intelligent Information
Following are some examples of intelligent information, which is often the source of an ESS:
 External databases
 Technology reports like patent records etc.
 Technical reports from consultants
 Market reports
 Confidential information about competitors
 Speculative information like market conditions
 Government policies
 Financial reports and information
Features of Executive Information System

Advantages of ESS
 Easy for upper level executive to use

 Ability to analyze trends
 Augmentation of managers’ leadership capabilities
 Enhance personal thinking and decision-making
 Contribution to strategic control flexibility
 Enhance organizational competitiveness in the market place
 Instruments of change
 Increased executive time horizons.
 Better reporting system
 Improved mental model of business executive
 Help improve consensus building and communication
 Improve office automation
 Reduce time for finding information
 Early identification of company performance
 Detail examination of critical success factor
 Better understanding
 Time management
 Increased communication capacity and quality
Disadvantage of ESS
 Functions are limited

 Hard to quantify benefits
 Executive may encounter information overload
 System may become slow
 Difficult to keep current data
 May lead to less reliable and insecure data
 Excessive cost for small company
ISM/U4 Topic 5 Knowledge

Management System
All the systems we are discussing here come under knowledge management category. A
knowledge management system is not radically different from all these information systems,
but it just extends the already existing systems by assimilating more information.
As we have seen, data is raw facts, information is processed and/or interpreted data, and
knowledge is personalized information.
What is Knowledge?
 Personalized information
 State of knowing and understanding
 An object to be stored and manipulated
 A process of applying expertise
 A condition of access to information
 Potential to influence action
Sources of Knowledge of an Organization
 Intranet
 Data warehouses and knowledge repositories
 Decision support tools
 Groupware for supporting collaboration
 Networks of knowledge workers
 Internal expertise
Definition of KMS
A knowledge management system comprises a range of practices used in an organization to

identify, create, represent, distribute, and enable adoption to insight and experience. Such
insights and experience comprise knowledge, either embodied in individual or embedded in
organizational processes and practices.
Purpose of KMS
 Improved performance
 Competitive advantage
 Innovation
 Sharing of knowledge
 Integration
 Continuous improvement by:
o Driving strategy
o Starting new lines of business
o Solving problems faster
o Developing professional skills
o Recruit and retain talent
Activities in Knowledge Management
 Start with the business problem and the business value to be delivered first.
 Identify what kind of strategy to pursue to deliver this value and address the KM problem.
 Think about the system required from a people and process point of view.
 Finally, think about what kind of technical infrastructure are required to support the people
and processes.
 Implement system and processes with appropriate change management and iterative staged
release.
Level of Knowledge Management

ISM/U4 Topic 6 Recent
Development in the Field Of IT
 Artificial intelligence
 Computational neuroscience and bioscience
 Cloud computing
 Decision support systems
 Evolutionary computing
 Human computer interface
 Information retrieval
 Intelligent agent and web applications
 Intelligent business computing
 Intelligent control and automation
 Intelligent fault diagnosis
 Intelligent sensor networks
 Knowledge discovery and data mining
 Next generation Internet
 Machine learning theory and methods
 Pattern recognition
 Reasoning and expert systems
 Soft computing
 Speech, image, and video processing
 The Internet of things
 Virtual reality and human-computer Interaction
Machine Learning and A.I:
It has been quite some time since artificial intelligence is making headlines owing to a
plethora of applications which could be derived from it. The technology could be enabled to
allow computers to read, see, listen and even respond to human queries. However, recent
times have made A.I. be quite a buzzword. A.I. is powered by the technologies of machine
learning.
Machine learning is essentially an ability of a computer to learn with or without human

interference. This is done by analyzing data and tracking repeating patterns. Machine learning
is changing the way companies perform and interact with their customers as well meet their
needs easily.
Blockchain:
In the simplest of terms, a blockchain refers to an append-only transaction ledger. This ledger
can be used to write new forms of information but the previously written information cannot
be edited, adjusted or changed. This is made possible with cryptography to link the newly
added block.
Bitcoin was created by a group of people referred to as Satoshi Nakamoto. Since then, it has
become something much bigger. Previously, it had been used only in the field of generating
digital currency or cryptocurrency. However, the technology could be used in various other
areas. There are numerous reasons for Blockchain’s popularity, such as:
1. Immutability
2. Being consensus-driven
3. Decentralization
4. Highly secure owing to cryptography implementation
5. Can be publicized unhesitatingly
Cognitive Technology:
Cognitive technology lies in the same basket as machine learning and deep learning.
However, it is powered by a much larger concept. Cognitive technology is powered by NLP
or Natural Language Processing and speech recognition. This is a form of technology which
mimics the functions of the human brain on numerous levels which include data processing,
data mining, pattern recognition etc.
The technology could be made even more mainstream in the years upcoming via
implementing it in the fields of automation, information technology etc. The various
mainstream uses of cognitive technology are:
1. Application in the supercomputers

2. Uses in the business sector
3. In media streaming services to generate user recommendations.
Humanized Big Data:

Big data is essentially a technology which collects and analyzes data created from a plethora
of sources which include the IoT, advanced machines constantly sending and receiving data,
alerts, maintenance etc. Collecting and analyzing, which is the greatest strength of Big Data,
also forms to be its greatest weakness. It is difficult to derive concrete action guidelines or
actionable meaning from a large heap of data.
This is what led towards humanized big data. Humanizing big data refers to collecting or
accumulating data in a manner in which non-data scientists too can infer clear answers from.
They can then use this data to make their daily decisions. However, humanizing big data isn’t
something which can be automated.
The human element is crucial in understanding the data. This is something which is being
researched. Big data is being developed so that a soulless technology can replace the human
element in the process.
ISM/U4 Topic 7 Impact of IT
on Organization
Information technology systems are used by organizations to perform various tasks. Some
use IT to provide for the basic processing of transactions, while others enable customers,
distributors and suppliers to interact with the organization through various communication
technology systems such as the internet.
The term ‘’information technology systems in an organization ‘’ is composed of four distinct

parts which include: an organization, information in an organization, and information
technology and information technology systems in an organization.
Flow of Information: Information is a key resource for all organizations. What information
describes might be internal, external, objective or subjective. External information describes
the environment surrounding the organization. Objective information describes something
that is known. Subjective information describes something that is currently unknown. With
information technology the flow of all these three types of information is made simple buy
use of centralized data centers where all this data can be retrieved. Information in an
organization can flow in four direction and these include upward flow of information,
downward flow of information, outward flow of information and horizontal flow of
information.
Transaction Processing: Information technology simplifies the transaction process of an

organization. A transaction process system (TPS) is a system that processes transactions that
occur within an organization. At the heart of every organization are IT systems whose main
role is to capture transaction information, create new information based on the transaction
information. TPS will update any transaction process and store that information in a
database, so any concerned party in the organization can access that information via a
centralized information storage network of internet.
Decision Support: A decision support system (DSS) is a highly flexible and interactive IT
system that is designed to support decision making when the problem is not structured. A
DSS works together with an artificial intelligence system to help the worker create
information through (OLAP) online analytical process to facilitate decision making tasks that
require significant effort and analysis.
Workgroup Support: Since information technology facilitates in the creating an information

sharing environment, workers can easily consult each other across different department
without any interruption. They can use emails, text chatting services to inquire some thing
related to a given task at work. With work group support systems, group decision making
becomes easier.
Executive Support: An executive information system (EIS) is an interactive management

information system (MIS) combined with decision support systems and artificial intelligence
for helping managers identify and address problems and opportunities.
An EIS allows managers to view information from different angles. Yet it also provides
managers with the flexibility to easily create more views to better understand the problem or
opportunity at hand.
Data Management: With the help of database software, an organization stores all its relevant
data on a database. This infrastructure can be designed when it is internal or external. An
internal centralized system can only be accessed with in the organization while an external
centralized system allows data to be accessed out side the organization using a
remote (IP) internet protocol Address or a domain name. In this case, employees or managers
can use a company website to access relevant company data by use of passwords. This data is
not exposed to the public and search engines.
Communication: Information technology accounts in the development of communication

technology. Services like electronic mail make communication within and outside the
organization easy and first. Now days email communication is a default communication
technology used by every organization. Communication is a great tool in business develops,
with advanced communication tools, employees and managers can easily make beneficial
decisions in the organization.
ISM/U4 Topic 8 Multimedia

Approach to Information Processing
The multimedia approach empowers the student to speak to data utilizing a few unique
media. It can stimulate the interest of the student and give them striking impressions.
Multimedia can consider diverse learning styles – some students learn by translating the
content, while others require more graphical portrayals.
Can build up an inspirational state of mind among the students towards the educating learning
process. Multimedia Approach considers self-pacing, the system of simulation can be
successfully connected through the interactive media approach.
Aides being developed of higher order thinking abilities. The interactive media approach
gives the student the adaptability of ‘anyplace’, ‘whenever’ learning.
Aides in creating groups and relational abilities. Viable remediation projects can be executed
through the media approach. The multimedia approach can connect dialect hindrances since
the sound isn’t the main methods for communication.
The word multimedia is made up of the two Latin words “multi” which means many and
“media” which is the substance through which something is transmitted. In this case multi is
the multiple data types such as voice, video, image, animation, text etc. and media is the
computer environment used to transmit the information made up of this multiple data types.
Multimedia data imposes new requirements to the computer networks due to the large
volumes involved. In addition to huge Volumes the way we look at multimedia information is
also different.
A multimedia information system aims at integrating the various tools needed for the
acquisition, management, processing and dissemination of multimedia information related to
environment
Provides to the systems designers a `generic information system’ in form of a toolbox to be

used to implement their own information system
The variety of media types is an important feature of modern information systems. In order to
deal with the variety, integration is a critical concern. Therefore,
Multimedia Information System (MIS) is then one which allows end-users to share,
communicate and process a variety of forms of information in an integrated manner
MIS is attempting to solve the problems of information management by integrating the

various forms of media into the computer/communications infrastructure
Benefits of achieving this level of integration:
 The computer can help in the task of managing and processing the information;
 Information users only have to deal with one integrated environment rather than a number
of separate information systems.
ISM/U4 Topic 9 Centralized and

Distributed Processing
Distributed Data Processing: In this method the computing-processing ability is distributed
across different locations by multiple computers. This is in contrast to a system where one
server manages all other connected systems. One example is the use of Remote Procedure
Call (RPC), this is a procedure that will execute another address space on another computer
on the network.
Centralized Data Processing: This is when processing is performed on one computer or in a

cluster of computers in a single location. This is the process when one server manages all
other services on the network. This involves the use of what are known as “dumb
terminals”, which sends or receives input and output only; all processing is done on the
central computer.

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ISM/U1 Topic 1 MIS: Definition,

A Management Information System is an information system that evaluates, analyzes, and

“Information can be recorded as signs, or transmitted as signals. Information is any kind of

Conceptually, information is the message (utterance or expression) being conveyed.

According to Davis and Olson −

 Increasing impact of information processing for organizational decision making.

 Information is needed to survive in the modern competitive world.

Implications of Information in Business

A complete business information system, accomplishes the following functionalities −

 Collection and storage of data.

 Operations research and management science

Following factors arising as an outcome of information processing help speed up of business

 Directly and immediate linkage to the system

MIS Need for Information Systems

 Understanding the need for decision or the opportunity,

Management information systems provide information to support management decision

 Pre-specified and preplanned reporting to managers.

MIS is of vital importance to any organization, because −

 It emphasizes on the management decision making, not only processing of data

ISM/U1 Topic 2 Role of MIS in

1. Management:- “Management is function to do the work at the Right time, by the

 Helps in Decision making:- Management Information System (MIS) plays a

ISM/U1 Topic 3 Pre-requisites for

(b) Management experts who should also understand quiteclearly the concepts and

(ii) Futuristic Perspective: An effective MIS should be capable of meeting the future

(iii) Support of Top Management: For a management information system to be effective, it

(iv) Common Database: It is an integrated collection of data and information which is

ISM/U1 Topic 4 Components

A management information system is made up of five major components namely people,

Hardware: hardware is made up of the computers, printers, networking devices, etc. The

ISM/U1 Topic 5 MIS Applications

Here are some of the important roles of the MIS:

IMPACT OF THE MANAGEMENT INFORMATION SYSTEM

Programmed and Non-programmed Decisions

Programmed decisions are basically automated processes, general routine work, where

 These decisions have been taken several times.

For example, selecting a reorder level for inventories, is a programmed decision.

Non-programmed decisions occur in unusual and non-addressed situations, so:

 It would be a new decision.

For example, investing in a new technology is a non-programmed decision.

 Adaptability and flexibility

 Support for decision-makers in semi-structured and unstructured problems.

 Improves efficiency and speed of decision-making activities.

Following are the components of the Decision Support System −

 Database Management System (DBMS)− To solve a problem the necessary data

 Status Inquiry System− It helps in taking operational, management level, or middle

ISM/U1 Topic 7 MIS: Sources and

 Surveys: A questionnaires is prepared to collect the data from the field.

 Strategic Information: Strategic information is concerned with long term policy

 Planning Information: These are the information needed for establishing standard

 Intrinsic− Accuracy, Objectivity, Believability, Reputation

 Reliability− It should be verifiable and dependable.

ISM/U1 Topic 8 Information

Information Needs for the Different Levels of Management

Information Needs of Different Levels of Management

Top level Unstructured problems. Strategic information from within the

Regular summarized reports.

ISM/U1 Topic 9 Relevance of

Management information systems combine hardware, software and network products in an

ISM/U2 Topic 1 File System

File System vs DBMS – Difference between File System and DBMS

File Management System Database Management System

File System is a general, easy-to-use system to