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The term ‘System’ is evolved from the ancient Greek word ‘Systema’ means an orderly
integration of interdependent components in order to perform a certain task.
Information is a refined form of data. In isolation, data (e.g., Ram, 32, etc.) does not bear any
useful meaning. But after processing of data we can get some meaningful information like “Ram
is 32years old”. Processed data is called information.
• Functional Subsystems
The important functional subsystems are the following:
1. Production Subsystem
Production information system supports the production function which includes all activities
concerned with the planning and control of the processes that produce goods or service. In the
production subsystem, there are transaction processing, operation control, managerial control
andstrategic planning. The typical information required at the transaction processing level is
production order. The production order is generally based on the sales orders required by the
company.
At the same time operational control level requires detailed reports comparing actual
performance with the production schedule and identifies the weak areas. However, management
control requires a summary report which compares the overall performance to actual
performance.
Strategic planning is concerned with simplifying, automating, integrating many of the activities
needed to produce goods.
2. Marketing Subsystem
The HRM function is concerned with the recruitment, placement, compensation and
development
of employees in an organisation. It mainly helps in record keeping and employee evaluation.
Every
organisation must maintain correct record of its employees.
Produce pay cheques and pay reports, maintain personal records and analyse the use of personnel
in business operation are the important activities done at the transaction processing level.
Management control level conducts budget analysis, turnover analysis, etc., and showing the
variances resulting from planned and actual performance. Strategic planning of personnel
involved with the planning of alternative strategies for recruiting, training and compensating
employees. In this regard, they have to collect different types of information from external
sources.
Financial subsystem undertakes the function of arranging adequate finance to the business at
minimum cost. This function includes granting credit to customers, cash management and
financial
arrangement. Accounting information system records and reports the flow of funds through the
organisation on a historical basis and prepares important financial statements like profit and loss
account and balance sheet.
Transaction processing system engaged in the legal and historical record keeping and produces
financial statements. They undertake activities like order processing, inventory control, payroll
and general ledger systems. Management control level focuses on planning and control of
business operations and they compare the actual cost of financial resources with the targeted
cost. The strategic planning level for accounting and finance involves in the long-term strategies
connected with financial
and accounting matters.
5. Logistics Subsystem
The logistic subsystem includes activities like purchasing, receiving, inventory control and
distribution. The transactions to be processed are purchase requisitions, manufacturing orders,
receiving reports and shipping orders. The operational control function makes use of information
contained in reports like out of stock items, over stocked items, inventory turnover reports, etc.
Managerial control level compares the planned and actual inventory levels, cost of purchased
items,
stock outs, etc. Analysis of new distribution strategies, adoption of new policy towards the sellers
are
some of the common tasks dealt at the strategic planning level.
MIS is an information system, which processes data and converts it into information. A
management information system uses TPS for its data inputs. The information generated by the
information system may be used for control of operations, strategic and long-range planning.
Short-range planning, management control, and other managerial problem solving. It
encompasses processing in support of a wide range of organizational functions & management
processes. MIS is capable of providing analysis, planning & decision making support. The
functional areas of a business may be marketing, production, human resource, finance and
accounting.
1. TPS (Transaction Processing System):
TPS processes transaction and produces reports. It represents the automation of the fundamental,
routine processing used to support business operations. It does not provide any information to
the user to his/her decision-making. TPS uses data and produces data as shown in the following
diagram.
Previously, TPS was known as Management Information System. Prior to computers, data
processing was performed manually or with simple machines. The domain of TPS is at the
lowest level of the management hierarchy of an organization.
A transaction process system (TPS) is an information processing system for business transactions
involving the collection, modification and retrieval of all transaction data. Characteristics of a
TPS include performance, reliability and consistency.
TPS is also known as transaction processing or real-time processing.
A transaction process system and transaction processing are often contrasted with a batch process
system and batch processing, where many requests are all executed at one time. The former
requires the interaction of a user, whereas batch processing does not require user involvement. In
batch processing the results of each transaction are not immediately available. Additionally, there
is a delay while the many requests are being organized, stored and eventually executed. In
transaction processing there is no delay and the results of each transaction are immediately
available. During the delay time for batch processing, errors can occur. Although errors can
occur in transaction processing, they are infrequent and tolerated, but do not warrant shutting
down the entire system.
To achieve performance, reliability and consistency, data must be readily accessible in a data
warehouse, backup procedures must be in place and the recovery process must be in place to deal
with system failure, human failure, computer viruses, software applications or natural disasters.
Such systems are designed to support decision making by the people associated with the
enterprise in the process of attainment of its objectives.
The business information system gets data and other resources of IT infrastructure as input from
the environment and process them to satisfy the information needs of different entities associated
with the business enterprise.
There are systems of control over the use of IT resources and the feedback system offers useful
clues for increasing the benefits of information systems to business. The business information
systems are sub-systems of business system and by themselves serve the function of feedback
and control in business system.
3. The purpose of business information system is to cater to the information needs for decision
making in business.
4. The business information systems have to be designed keeping in view the availability of
financial and human resources to the business enterprise.
5. The cost effectiveness is a matter of prime concern in the development and maintenance of
business information systems. Economic justification for investment in IT infrastructure for
business information systems is a pre condition for its existence and sustenance.
Information systems can be described by four of their key components which are:
1. Decisions
It is difficult to observe the decision process through we can see and review the results of a
decision. Transactions are usually more visible, though many current systems use computer
programs, which are not easy to understand, to process transactions. In principle, an observer can
see information and its flows. Individuals can be observed too, but it is not always easy to figure
out the information processing functions they perform.
1. Unstructured search
1. Unstructured search:
In many cases the search or intelligence algorithms cannot be specified. The decision support
system must allow the user to approach the task heuristically through trial and error rather than
by reestablished, fixed logical steps. Support for unstructured search is primarily based on
The user needs to be able to perform such functions as retrieval, presentation scanning, analysis
and comparison on data in order to discover new relations and new conclusions that have not
previously been defined.
Interactive systems enhance the performance of unstructured search by allowing the user to
change parameters of the problem and quickly see their effect. In some cases, system support
may include analysis information systems and representational models in other cases system
support may be a file drawer system with fast access to the data base.
Instead the intelligence process is structured, but it is applied only when other indicators suggest
the need for it. System support for structured Analysis information systems and representational
models may be used.
This early stage of decision making has the potential for affecting the direction of all succeeding
phases. During this step, the decision maker forms a mental model of the problem.
The mental model reflects the manager’s understanding of the problem structure. Problem
structure refers to the variables occurring in the problem and how they interact. The qualitative
representation of the problem thus formed strongly affects the domain of possible solutions.
Research has shown that computer graphics are useful in assisting in the problem useful in
depicting and communicating the user’s perception of a problem’s structure.
Following the intelligence phase which results in problem or opportunity recognition, the design
phase involves inventing, developing and analysing possible courses of action. Support for the
design phase should provide for iterative procedures in considering alternatives.
a. The model itself. The manipulation of the model frequently provides insight leading to
generation of solution ideas.
b. The Data base retrieval system. The retrieval capabilities yield data useful in generating
solution ideas.
In many cases, the design model will provide a suggested solution. For example, an inventory
reorder model may suggest a solution to the problem of how much to order. This quantity is a
suggestion that can be modified, but it represents a feasible solution (and perhaps an optimal
solution based on the factors in the model).
Often the decision support system will lead the user in a rational search strategy for solutions.
For example, the solution search procedure might begin with a set of questions relating to
common solutions. These questions might be followed by a series of questions which assist the
decision maker to consider all alternatives.
The advantage of structured approaches is that they assist in systematically exploring the normal
decision space; the disadvantage is the tendency to suppress search outside the normal decision
space.
A decision support system, by definition, does not make a choice. However, optimization models
and suggestion models can be used to rank the alternatives and otherwise apply decision choice
procedures to support the choice of the decision maker.
For example, a decision to acquire a machine from among several alternatives may be structured
by one or more criteria such as, rate of return, years of payback, minimum cash outlay, Executive
preference, Employee preference, minimum risk, etc. These criteria can be applied by use of
decision software. The choice is then made by a decision maker and communicated to person
who can implement the result.
3. Data Mart:
A data mart is a subset of the data warehouse. It specially designed for a particular
line of business, such as sales, finance, sales or finance. In an independent data
mart, data can collect directly from sources.
General stages of Data Warehouse
Earlier, organizations started relatively simple use of data warehousing. However,
over time, more sophisticated use of data warehousing begun.
The following are general stages of use of the data warehouse:
Offline Operational Database:
In this stage, data is just copied from an operational system to another server. In
this way, loading, processing, and reporting of the copied data do not impact the
operational system's performance.
Data Structure
Most databases use a normalized data structure. Data normalization means
reorganizing data so that it contains no redundant data, and all related data items
are stored together, with related data separated into multiple tables. Normalizing
data ensures the database takes up minimal disk space while response times are
maximized.
The more normalized your data is, the more complex the queries needed to read the
data because a single query combines data from many tables. This puts a huge
strain on computing resources.
The data in a data warehouse does not need to be organized for quick transactions.
Therefore, data warehouses normally use a denormalized data structure. A
denormalized data structure uses fewer tables because it groups data and doesn’t
exclude data redundancies. Denormalization offers better performance when
reading data for analytical purposes.
Data Timeline
A database processes day-to-day transactions within an organization. Therefore,
databases typically don’t contain historical data—current data is all that matters in
a normalized relational database.
Data warehouses are used for analytical purposes and business reporting. Data
warehouses typically store historical data by integrating copies of transaction data
from disparate sources. Data warehouses can also use real-time data feeds for
reports that use the most current, integrated information.
Analysis
While databases are normally used for transactional purposes, analytical queries
can still be performed on the data. The problem is that the complexity of the data’s
normalized organization makes analytical queries difficult to carry out. A skilled
developer or analyst will be required to create such analytical queries. The depth of
analysis is limited to static one-time reports because databases just give a snapshot
overview of data at a specific time.
The structure of data warehouses makes analytical queries much simpler to
perform. No advanced knowledge of database applications is required. Analytics in
data warehouses is dynamic, meaning it takes into account data that changes over
time.
Concurrent Users
An OLTP database supports thousands of concurrent users. Many users must be
able to interact with the database simultaneously without it affecting the system’s
performance.
Data warehouses support a limited number of concurrent users compared to
operational systems. The data warehouse is separated from front-end applications
and it relies on complex queries, thus necessitating a limit on how many people can
use the system simultaneously.
Student have Name , age , gender , address , phone Number , Roll Number ,
Semester , Course_ID and Student_ID. Faculty have Name , age , gender ,
address , phone Number , Semester , Course_ID, Grade , Salary , Faculty_ID and
designation. Course have Name , Code , Student_ID , Faculty_ID , Department_ID
and Course_ID. Department have Name , Student_ID , Faculty_ID and
Department_ID. Research Project – Project_ID, Faculty_ID , Name , Duration.
Complete ERD
Create Relationships Between Entities.
We know the relationships from above steps and also what will be the cardinality
and modality. Using Crow’s Foot Notation . We have combined them .
If we have to read this diagram , this is how it will go . Reading symbols at the
other end
Student-Department ; One Student Belongs to One and Only one Department
Department-Student : Department can have more than one student and no Student.
( *Business Logic ) .
Student-Course : Student must have one course and can have more than one.
Course-Student : One course can be offered to many students or no students at all
Course-Faculty : One course can be taught by many faculty member or no one (*
Business Logic )
Faculty-Course : One faculty member will teach one course or more than one
courses
Can you do the same for Research Project and Faculty? Comment below . If you
can.
*Business Logic : While you design an ERD . Never ever do anything with
common sense and stick strictly with the logic , common sense says if department
doesn’t have a student, how can it exist? But the user requirement says it can,
Hence it will. Always stick with the user requirements
Concluding this long article , we have finally connected all the dots ( previous
articles ) and develop this article in which we designed a ERD. Next step is to
normalise this ERD and resolve relationships .