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MANAGEMENT INFORMATION MANAGEMENT INFORMATION

SYSTEM SYSTEM
INTRODUCTION What is MIS
ØManagement information system, or MIS, broadly refers to a computer-based
system that provides managers with the tools to organize, evaluate and efficiently Computer based system that help managers
manage departments within an organization.
for decision making by providing
ØIn order to provide past, present and prediction information, a management 1) Right Information
information system can include software that helps in decision making, data
resources such as databases, the hardware resources of a system, decision support 2) To the right person
systems, people management and project management applications, and any
computerized processes that enable the department to run efficiently. 3) At the right place
ØMIS provides information that is needed to manage organizations efficiently and
4) At the right time
effectively 5) In the right form
ØMIS is any organized approach for obtaining relevant and timely information on 6) At the right cost
which managerial decisions are based

SYSTEM SYSTEM
INTRODUCTION Advantages of MIS

• Companies are able to highlight their strengths and weaknesses due to the
ØThe MIS is defined as an integrated system of man and machine for providing the presence of revenue reports, employees' performance record etc. The identification
information to support the operations, the management and the decision making of these aspects can help the company improve their business processes and
function in the organization. operations.
ØMIS provides accurate and timely information necessary to facilitate the decision- • Giving an overall picture of the company and acting as a communication and
planning tool.
making process and enable the organizations planning, control, and operational
functions to be carried out effectively.
• The availability of the customer data and feedback can help the company to align
Ø
their business processes according to the needs of the customers. The effective
ØManagement Information System (MIS) is basically concerned with processing management of customer data can help the company to perform direct marketing
data into information and is then communicated to the various Departments in an and promotion activities.
organization for appropriate decision-making.
• Information is considered to be an important asset for any company in the modern
ØMIS facilitates the decision making process and enable the organizational competitive world. The consumer buying trends and behaviors can be predicted by
planning, control, and operational functions to be carried out effectively the analysis of sales and revenue reports from each operating region of the
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SYSTEM SYSTEM
Information Systems Vs Information Technology Computer Literacy Vs Information Literacy
vMany organization depend on information to keep business running smoothly.
•System is a functional unit, which involves set of procedures/functions to vFor example information about past revenue and expenditure are needed for an
produce certain outputs by processing data/information given as input. organization for making future strategic planning .
vInformation chart shows the importance of information for an organization.
•Information System is computer based system that create, process, store and
disseminate information through the organization. Information systems can
be formal or informal.
•Formal systems are designed and developed using a set of well-established

organizational polices, procedures and principles to coordinate and facilitate
communication between different functional units and the processes they
support and to meet the overall information needs of the business.

SYSTEM SYSTEM
Information Systems Vs Information Technology Computer Literacy Vs Information Literacy
vFor gaining such information every organization needs two kinds of knowledge:
•Informal System do not follow any formal or pre-established rules for computer literacy and information literacy.
collection, processing, storing or disseminating data . Employees create
informal systems when they need information that is not readily available vComputer Literacy is knowledge of computers, their components and their
through formal systems. functions. It is knowledge of computers and computer programs.
vInformation Literacy is the ability to crate and use information systems to find
•Information technology(IT) are tools and techniques that support the design
solutions to business problems.
and development of information systems. vIt includes business intelligence, understanding the organizational mission, knowledge of
information technologies, computer literacy and problem-solving skills.
vComputer literacy is small part of information literacy.
•They include hardware, software, databases, telecommunications and client-
servers.
vIn summary computer literacy is knowledge of how computers function and
information literacy is the ability to use computers in innovative and meaningful
•Information systems and information technologies go hand in had. ways to solve business problems.
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SYSTEM SYSTEM
Data Vs Information Characteristics of Information
All good information has the following characteristics:
Data Information
Raw facts Processed facts ØSubjectivity: The value and usefulness of information are highly subjective
Dead stored facts Live presented facts because what is information for one person many not be for another.
Inactive (only exists in the backend) Active (being processed data for knowledge
base) ØRelevance: Information is good only if it is relevant- i.e. applicable and
Technology oriented Business oriented meaningful to the decision maker.
vData are facts, events, and transactions which have been recorded. They are ØTimeliness: Information must be delivered at the right time and the right place to
basically the raw inputs which further get processed to become information. the right person. E.g. If manager gets any information about the project a year after
requesting is not timely and hence not useful.
vWhen we process data and convert it into a form that is useful and meaningful to
decision maker , it become information. ØAccuracy: Information must be free of errors, because erroneous information can
result in poor decisions and decrease the confidence of users.

SYSTEM SYSTEM
Data Vs Information Characteristics of Information
ØCorrect Information Format: Information must be in the fight format to be
v Processed data when presented in some useful and meaningful form, it is useful to the decision maker. E.g. if manager wants to know the total sales of
actually the information we are looking at. product x last year , the appropriate format is an annual summary of sales figures for
that product.
v Information are necessary to ensure effective & efficient decision making
Ø Completeness: Information is said to be complete if the decision maker can
leading to prosperity of the organization
satisfactorily solve the problem at hand using that information. Completeness is
highly desirable .
ØAccessibility: Information is useless if it not readily accessible to decision maker,

in the desired format when it is needed.
SYSTEM SYSTEM
Process of Converting Data into Information
Steps in conversion of data into information: Need of MIS for Organization
Ø Management Information Systems (MINS) is the study of how technology can be
qCollection : first step is to collect data through surveys, interviews, sensors, used to solve business problems and create new business opportunities.
documents, newspapers or any other appropriable means. It can be tedious, time Ø So today any medium or larged sized companies can survive without computers
consuming and labor-intensive process. and information system
Ø Meeting global Challenges
qClassification: Second step classification of collected data based on some criteria Ø Capturing Opportunities in the marketplace
Ø Supporting Corporate Strategy
qSorting, adding , merging and so on: Next data is sorted to arrange it in a Ø Linking Departments whose functions are different
meaningful form. Some additional task may be included in this process like adding Ø Enhancing work productivity
values, merging files and many others. Ø Increasing the quality of goods and Services
qSummarizing : When processed data become information, it can be condensed

and summarized to make ti more useful to the decision maker.
MANAGEMENT INFORMATION INFORMATION SYSTEM FOR MANAGERIAL

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TYPES OF INFORMATION SYSTEM
q Storing: The information is then stored carefully for future use. Without proper
•Transaction Processing System
storage decision makers may find it difficult to retrieve the information when they
need it and also information may be damaged if not properly stored.
•Management Information System
q Retrieval: The decision maker must be able to retrieve the stored information in
an easy way when it is needed. •Intelligent Support System (Decision Support system(DSS), Executive
Information System(EIS) and Expert System(ES)
q Dissemination: Finally the information must be disseminated or distributed in the
right format , at the right time , to the right place and to the right people if it is not •Office Automation System(OAS)
be useful.
The type of information systems used by an organization depend on its information
needs.
One organization may rely only on a transaction processing system for its
information needs, another may use all four types of information system.
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• Transaction Processing System Transaction Processing System
– A computerized system that performs and records the daily routine transaction • TPS supports these tasks by imposing a set of rules and guidelines that specify how to
necessary to conduct the business. record, process and store a given transaction.
• Some more example of TPS in everyday lives – when we make a purchase at a retail
• Management Information System
store, deposit or withdraw money at a bank or register for classes at a university-have a
– The MIS is defined as an integrated system of man and machine for providing manual or automated TPS.
the information to support the operations, the management and the decision
making function in the organization.
• TPS is the data lifeline for a company/organization because it is the source of data for
other information system like MIS and DSS.
• Intelligent Support System
– ISS are systems that facilitate decisions requiring the use of knowledge, • TPS is the main link between organization and external entities like customers,
intuition, experience and expertise . System that fall in this category are: suppliers, distributors and regulatory agencies.
DSS,EIS ,AI and ES
• TPS exist for the various functional areas in an organization, like finance,
accounting,manufacturing,production,human resources and other department.
• Office Automation System(OAS) • Real world example of TPS are ATM , any online ticketing system.
– Also referred to as office information systems whose primary goal is to
facilitate communication.
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Transaction Processing System
• A transaction process system (TPS) is an information processing system for
Characteristics of TPS
business transactions involving the collection, modification and retrieval of all The four important characteristics of a TPS are:
transaction data. • RAPID RESPONSE- Fast performance with a rapid response is critical. Input
must become output in seconds so customers don’t wait.
• TPS is an information system that records company transactions.
• These system were among the earliest computerized systems. • RELIABILITY- Organizations rely heavily on their TPS with failure possibly
stopping business. Back-up and recovery procedures must be quick and
accurate.
• Their primary purpose is to record, process , validate and store transactions
that take place in the various functional areas of business for future retrieval
and use. • INFLEXIBILITY- A TPS wants every transaction processed in the same way
regardless of user or time. If it were flexible there would be too many
opportunities for non-standard operations.
• For example when an company places an order with a supplier, a transaction
occurs and the transaction system records relevant information like supplier’s
name , address ,the kind and quantity of items purchased and the invoice • CONTROLLED PROCESSING- The processing must support an
amount. organization's operations.
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INFORMATION SYSTEM FOR MANAGERIAL INFORMATION SYSTEM FOR MANAGERIAL
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Steps in Processing a Transaction Data Validation
The steps in processing a transaction are: • It is essential step in transaction processing.
1. Data Entry
• It ensure the accuracy and reliability of data by comparing actual data with
2. Data validation
predetermined standards or known results.
3. Processing and revalidation
4. Storage • There are two steps in validation:
– Error Detection and
5. Output Generation
– Error Correction
6. Query Support
• Error Detection are performed for detecting the errors in transaction data.
• Some commonly used error detection procedures are checking the data for
appropriate format (text, numbers, etc),checking for aberrations (values that are
very low or too high) and checking for missing data, invalid data and inconsistent
data.
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Data Entry:
• Some errors are missing data(fields that are missing a required data value),
• To be processed, transaction data must be first entered into the system. Invalid data(data that is outside the normal range), inconsistent data(same data
item assumes different values in different places without a valid reason.)
• Data entry is done using computer’s input devices like keyboard and mouse.
• • Example of some errors are if the number of hours worked by a part-time
• Source document ie document generated at the point where a transaction occurs employee is missing on a payroll form (missing data),
become input data for the system. • If the number of hours worked by a part-time employee is 72 hrs per week instead
of the normal 20 hours(invalid data),if payroll records show that an employee
• For e.g. when customer return item to store for returning , the sales receipt worked 25 hrs but the employee log shows that the same employee worked 35 hrs
becomes the source documents for the transaction ”return item for refund” . (inconsistent data).
Similarly ATM receipt for a bank transaction becomes the source document for
balancing a checkbook. • Error Correction procedures ensures that all errors have been corrected and that
no new errors have been introduced during the process.
• Error Correction technique depends upon the type of errors and the nature of
application.
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• Some error correction measures include allowing only authorized person to correct • Regardless of the type of processing used, once it is complete, the output should
errors, maintaining a log of revised (corrected data) values and establishing a paper be validated for accuracy and reliability.
trail showing the nature and the source of each error . • So validation must be done both before the data is processed (to check input
validity) and after the data is processed (to check output validity)
Data Processing and Revalidation
• Once the accuracy and reliability of the data are validated, the data are ready for Data Storage
processing. There are two ways to process the data:
– Online
• Processed data must be carefully and properly stored for future use.
– Batch mode • Data storage is very critical as value and usefulness of data diminish if data are
not properly stored.
Online Transaction Processing System(OLTP) : is the instantaneous processing of
data. Output Generation
– In this system data input device is directly linked to the TPS and therefore the data
• Once data has been input, validated, processed , revalidated and stored, the output
are processed as soon as it is entered into the system. Input device may be at the
can be communicated to decision maker in two ways-
remote location and be linked to the system by networks or by telecommunication
– Documents and paper
systems.
– Forms: screens or panels
– The information in such type of system is always current as there is no gap
between data creation and data processing.

– Example of OLTP is ATM transactions, students registration for classes and • Document are a popular output method. They are usually hard-copy .
order tracking, flight reservations –data are processed as it is input into the • They can be processed further to generate additional information
system. • Example of documents are invoices, paychecks, purchase invoice, sales receipts
and ob orders.
Batch Processing –way processing of data in which transactions are
accumulated over time and processed periodically. • Forms are another form of output which appears as computer screens and panels.
– Batch processing may be done on a daily, weekly or monthly basis or any • Example of form are –soft copy presentations.
other time period appropriate to the given application.
– Example company may process the travel expenses of its employees on a
monthly basis , sales may be processed at the end of each day. Query Support
– There is a time gap between data creation and data processing so that the • Is the last step in processing a transaction
information inn the files may not be up to date. • It is the asking questions of to the system.
• Query facilities allow user to access data and information that may otherwise not
be readily available .
– Choose of type of processing way depend upon the users’s need . If a user
• Example: sales manager may query the system for the number of damaged item
needs periodic updates on system transaction –batch processing is ideal. if a
in a given store.
user need s up to the minute information –online processing is necessary.
MANAGEMENT INFORMATION SYSTEM • Intelligent Support System
• Are general purpose , well integrated systems that monitor and control the internal • Are system that facilitate decision that require the use of knowledge, experience and
operations of an organization. expertise.
• They provide managers with vital information necessary to make tactical decisions and • System that fall into this category are
to assess the impact of daily operations on the long-range of the company/organization. – Decision support system(DSS)
– Executive Information System(EIS)
• Input to MIS comes primarily from the TPS and other sources within the company. The – Artificial Intelligence (AI) and Expert System(ES)
output of an MIS takes the form of summary reports and exception reports.
• Such system support the knowledge-intensive activities of managers, which require
• Summary Report accumulates data from several transaction and presents the result in the application of theoretical knowledge like principal, thermos and practical
condensed form. E.g. sales manager may get a summary report giving the number of experience like intuition, experience, and judgment.
units of each product sold in the preceding month.
• Exception Report is a report that outlines any deviations from expected output.
Purpose of this type of report is to draw the attention of middle manager to any
significant differences between actual performance and expected performances.
INFORMATION SYSTEM FOR MANAGERIAL DECISIONN-

INFORMATION SYSTEM FOR MAKING
MANAGERIAL DECISIONN-MAKING Decision Support System
• E.g. a sales manager may study an exception report that list all personnel who sold • DSS are interactive, well integrated system that provide managers with data,
less than $20,000 or more than $80,000 in the preceding month. tools and models to facilitate tactical decisions. E.g. decision of binding on
• Both types of reports must be succinct, accurate, timely, reliable , verifiable and contract based on operational cost and overheads and the way competitors may
readily usable. bid on the same contract.
• Are computer-based information system that supports business or organizational

decision-making activites.
Difference between MIS and TPS
• TPS is to record and process transactions that take place in the company
– MIS is to produce summary and exception report used in tactical decision making.
How DSS Works
• Output of TPS becomes the input to MIS • DSS accesses and processes large volume of internal and external data and
integrates them with various decision-making models.
• TPS helps managers primarily with operational or day-to-day decisions
– MIS help managers make tactical decisions over a longer period of time.
• The data are then integrated with models(a physical or conceptual representation
of reality) to produce alternate solutions to a problem .
Summary Report • Example of models are calculating overall course grades, assessing the amount
• Transaction data TPS MIS
of air pollution and predicting population growth
Exception Report • Alternative generated can be further analyzed using what-if analysis, which
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• Example: product pricing is complex decisions that takes into account a number of internal Executive Information System
factors like material costs, production cost, labor cost and external factors like competitor • Is another ISS, used by top level management
pricing and product demand.
• System is user-friendly, interactive system ,designed to meet the information
needs of top management engaged in log-range planning, crisis management and
• DSS can present a manager with different pricing alternatives and help answer what-if
other strategic decisions.
questions like “what if the price of raw materials increases by 3.6% a year? “What if the
price of raw demand for a product increase by 10%? Or “what-if competitor reduces its • Such system assist in the making of decisions that require an in-depth
price for similar product by 20%?” understanding of the firm and of the industry in which the firm operates.
• DSS allows manager to perform goal-seeking that specifies the actions a manager should • EIS does not generate alternative for a given problem as it is to integrate data
take in order to accomplish a certain goal. from different sources and present it in a useful format to the decision maker.
• E.g. if goal of company is to increase sales of product A by 10% then DSS can help • EIS is user-friendly and intuitive to use; it has excellent menus and graphic
manager decide on the course of action to take regarding operation cost, product pricing,
advertising and other related issues to achieve the goal. capabilities.
• EIS has drill-down capability which is the ability of the system to provide
information at any level of detail desired by the decision maker.
• E.g. the CEO of a company may want the monthly sales of product X for the
entire company. Next CEO may want a breakdown of sales figures on a regional
basis or on a store –wide basis.
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Artificial Intelligence and Expert System
• Example of DSS in hospital : • Another type of IIS is Artificial Intelligence (AI) is branch of computer science
whose goal is to design and develop computer systems that emulate human
• hospital use DSS to prepare contract bids for its services. Preparing contact is intelligence.
semistructued tasks that involves some structured routine activates (assessing a cost of
certain service) and some unstructured activities (assessing a competitor’s strategy). Also
• AI attempts to endow(provide) machines with capabilities and characteristics
require several data like cost and profit figures, manpower requirements and overhead
costs, state and federal taxes, regulatory requirements and so on. that would indicate intelligence, found in a human being.
• The system then integrate these data with different decision models like financial and Expert System
accounting model ,manpower planning model, business intelligence model to arrive at a • ES are a branch of AI.
solution. • These system incorporate knowledge and problem-solving skill of human
expert like physician, scientist or an automotive engineer.
• ES con solve problems that require theoretical knowledge and practical

experience.
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Decision Support System
• ES has three main components : Decision Support System
– A knowledge base •Decision support system assist management decision making by combining data,
– An Interface Engine sophisticated analytical tools and user friendly software into single powerful system that can
– A user Interface support structured, unstructured and semi structured decision making.
• A knowledge Base: it serve as a store house of knowledge and experience •A structured decision can be pre planned or pre-specified and are repetitive, routine and
gathered from experts in a given field, including facts, theorems and principles have a definite procedure for handling them. This can be expressed as steps to follow, a
flowchart, a decision table, Mathematical analysis and simulation. For example calculating
related to a given area of knowledge or field of study.
the compound interest on a loan.
•The unstructured decision cannot be pre planned and are non-repetitive, non-routine and
does not have a definite procedure for handling them. They depend upon judgment and
experience of the decision maker. For example developing strategy to remain competitive in
an ever-changing marketplace .
•Semi structured decision are those where part of a problem are routine and can be
approached with standard problem-solving procedures; others require intuition and judgment
.
•For example-selecting a college where parts of this decision rely on facts and figures like
tuition fees, ranking ;other parts rely on judgment.
Decision Support System Decision Support System

• Decision making plays a very important role in the organization. Application of DSS
• The organization may be any industry, institution, firm, company or a factory.

1. DSS is an ideal candidate for interrelated and inter-organizational problems.
For example , in a manufacturing environment, production managers make semi-
• The success of organization depends on the decision taken by the organization.
structured and unstructured decisions, such as the number of machines to be
operated , the amount of materials required to fill a new order , production scheduling
•Decision is a choice made between alternative courses of action available according to the
and labor scheduling.
situation. It is a kind of judgment to select the best one from available alternative course of
action. DSS implemented in company to solve a problem of production scheduling and
inventory management determines which machines should do what task and for how
•The system that support decisions are decision support system. long in order to meet daily production quotas that relieving (release) plant supervisor
of about 4 hours of tedious hand calculation every day.
•Decision support system is a computer based application that support organizational decision Also DSS is an ideal tool for resource allocation that can answers –”what
making activities. A decision support system helps in decision-making but does not necessarily quantities of manpower , money, machines, and materials should be allocated to
give a decision itself. project to successfully completed in time?” , “what quantities of extra resources do
we require to complete this project?”
•A model-based DSS is “an interactive computer-based system composed of a user-
dialog system, a model processor and a data management system, which helps decision makers
utilize data and quantitative models to solve semi-structured problems”
Application of DSS Application of DSS
2. Another application of DSS is forecasting, demand management and supplier 4. Other application of DSS include corporate planning, developing effective
evaluation. advertising strategies and pricing policies, determining an optimal product mix, and
DSS can merge data from different sources to forecast demand , determine the handling investment portfolios.
appropriate quantity and mix of resources necessary to meet the demand. For example
a stockbroker may use data about the financial performance of a company in a DSS used by India to develop regional health care plans . Such planning requires
forecasting model to predict future company performance. A teacher may use each large volume of internal and external data, combined with many complex models.
subject marks acquired by students in a model that calculates overall course grade. DSS has number of models that generate alternative scenarios for different
Different problems require different models. socioeconomic and environmental conditions so decision makers can evaluate the
DSS implemented in a company which produces and market some 2,000 effects of various development plan in achieving regional development goals.
products ,use DSS for sales forecasting, pricing analysis, tracking of promotion DSS allows managers to determine the types of health care facilities that are
results, and new product analysis. suitable for a given region and the number of facilities of each type that must be
opened during a given period to meet overall goals of government.

Application of DSS Component of DSS
Decision Support System has three components;
3. Next application of DSS is to enhance organizational decision. •Database Management Systems
DSS implemented in company integrate sales data from its invoicing system •Model Management Systems
and presents marketing managers with sales figures arranged by client, product, •Support Tools
time and units thus allowing managers to identify their major clients and quickly
detect any sales trends or patters. System also allows managers to trace the source •Database Management Systems
of problem, alerts executives to trouble spot(numbers on screen change color to
•It servers as the storehouse for DSS.
indicate that their is a problem )
•Data necessary to solve a problem may come from internal or external
DSS implemented in company is used to determine the best locations for its
stores. A DSS compares the demographics of a potential location with databases.
demographics of other company-owned stores. When system finds a close Store large amount of data relevant to solve the problem for which the DSS
demographic match between the future location and that of an existing store, it has been designed.
analysis the financial performance of the existing store and uses this information •Data in DSS database are managed by DMBS.
to help determine whether the new location will be profitable. •DBMS compiles data , manipulates it and maintain it in proper format.
•Capability of obtaining answers to queries
Component of DSS
•Support Tool
•Model Management System •Third component of DSS consists of support tools, like pull-down menus, online
•Second component is Model Management System help, user interfaces, graphical analysis and error-correction mechanisms which
all facilities user’s interaction with the system.
•It stores and accesses models that managers use to make decisions.
•It builds models , select models , manipulates models, updates models and
maintain models.
•Models are consistently utilized applied when decisions are made.
•Models are representation of some event or reality.

Some models are
Statistical models: are used to perform a wide range of statistical functions like average,
standard deviation, graphical analysis, regression analysis , analysis of variance , exploring
Function of DSS
and establishing relationship between different variables like(price and units sold),
forecasting. These are used in finance, marketing, accounting, human resources, quality DSS has main following functions which facilitate managerial decision making.
control and management. 1. What-if analysis
2. Goal-seeking
Financial and Accounting Models: used to measure and assess the financial implications 3. Risk analysis
of various alternatives and include profit and loss analysis , investment analysis and
capital budgeting models. They are used to assess optimistic, pessimistic and realistic 4. Graphical analysis
scenarios in a financial decisions .
Production Model: are used on the shop floor to make manufacturing related decisions.
They can estimate the number of machines to be operated, calculating the amount of
material required to meet demand, scheduling .
Marketing Model: help marketing managers make a wide variety of decisions like
product pricing, store location and advertising strategies . Similarly it include product
design and forecasting .
What-If Analysis
Risk Analysis
• Is the process of assessing the impact of changes made to model variables, to
their values and interrelationships or to any combination of these. • DSS can help manager calculate the risks associated with various alternatives
through the use of probabilities and other statistical techniques.
• For Example Manager might ask “what would be the impact of a 12% increase in
the cost of raw materials on future demand?” “By how much will demand • Decision are of low-risk, medium risk and high-risk .
increase if we give a discount of 25% during the festival season”
• DSS are mostly useful in making medium and high risk environment.
• Similarly Bank manager might ask “what would be impact of an increase in
interest rates on loan approvals”.
• Thus what-if function helps managers to assess the impact of different scenarios
on the bottom line.
• Many popular spreadsheet packages like Excel and Lotus 1-2-3 have “what-if
“capabilities.

Goal Seeking Graphical Analysis
• Allows decision makers to identify the course of action to take in order to • Is the display of data in an easy-to understand format, using graphs, charts ,
achieve a certain goal. tables and figures.
• It can be view as opposite of “what-if” analysis . • It helps manager to quickly digest large volumes of data and visualize the impact
of various course of action.
• The system addresses the question “what should the values of the input variables
be if a certain goal or objective is to be achieved”?. • For example manager might look at graph to study the sales growth of Product A.
•
• For example suppose the goal of a TV company that make 15 different TV • Microsoft Excel gives the user a wide choice of graphs and charts in many colors
models in 10 manufacturing facilities in seven countries, is to achieve gross profit and patterns.
of $100 million from its TV division in the coming year. The question here is
“How should the products be priced to achieve this goal?
Group Decision Support System Types of GDSS
•Single-Computer Systems
• Decision in an organization frequently require the input and participation of more •Keypad response system
than one individual , they require group thinking. •Full-keyboard workstation systems
• Interactive computer-base d system that support meeting. •Single Computer Systems

• Group Decision Support System (GDSS) are computer-based information •Is the simplest type of GDSS designed primarily for single users.
systems that enhance group decision making by facilitating the exchange and use •Uses a video display system through which each group member can
of information by group members, and interactions between the group and the communicate with other members of the group.
computer , to formulate and solve unstructured problems.
•Member can observe how other group members care approaching the
problem and participate in the process by presenting their individual ideas.
• These system help in group decision tasks. Also called as Electronic Meeting •These systems are portable and relatively inexpensive.
System.
•In a single-user system each group member can assign individual weights to
• Is any kind of computer network that is used to help professional to communicate the problem.
during meetings.
•The system then can rank the different alternatives based on weights
• It allows people separated by time and space to interact with each other in a assigned by the group members.
structured way.

•Keypad-Response System
GDSS has large software tools –
• Electronic questionnaires- questionnaires that people can respond to using •Is type of GDSS in which group members use hand-held keypad to
a computer communicate with each other .
•In this group members are linked by a network of PCs that are usually
located in a single room, known as decision room.
• Electronic Brainstorming tool – tools that allow people to express , share
and analyze ideas anonymously •A projector screen at the front of the room displays the inputs of different
group members and each member uses his or her keypad to communicate
and coordinate ideas with other members of the group.
• Idea Organizer- tools that facilitate the coordination, compilation and
•Keypad provide wide variety of response like predefined rating scales (yes,
prioritization of ideas.
no), multiple choice and customized rating scales .
•The computer receives the input of group member from each keypad,
• Voting tools- tools that allow people to indicate their preference for an idea processes, analyzes and ranks the input and display the output in graphical
form or text form to the group.
• MeetingSphere is one of the GSSS software. •These system analyze and summarize the input of group almost
instantaneously.
Decision Support System Executive Information System
Executive Information System
•A reporting tool (software)
• Also known as Executive Information System (EIS)
• Allows you to turn your organization's data into useful summarize reports
• These reports are generally used by executive level managers for quick access
to reports coming from all company levels and departments
•EIS is a software that allow user to transform enterprise data into quickly
accessible and executive-level reports. It enhances decision making for
executives.
Decision Support System Executive Information System

Executive Information System
Full-Keyboard WorkStation System
•Is type of GDSS which are like keypad response system •EIS is a set of computer-based tools with features like as color graphics, touch
screens, voice-activated commands and natural-language interfaces that helps
•is set up in a room with networked PCs arranged around a U- managers to quickly retrieve, analyze, navigate, summarize and disseminate large
Shaped table. volumes of data.
•A pc at the front of the room allow the group facilitator to
coordinate the response of the group members. • Primary goal of an EIS is, the delivery and display of information, rather than the
analysis or diagnosis of problems and possible solutions.
•A projector screen at the front of the room display the inputs
of the group members, who then can make suggestion or •System that facilitates and supports senior executive information and decision-
modification to a proposed solution. making needs. It provides easy access to internal and external information relevant
to organizational goals.
•This system allow participants to communicate while
maintaining full secrecy. •EIS emphasizes graphical displays and easy-to-use user interfaces. They offer strong
reporting and drill-down capabilities.
Executive Information System Executive Information System
Features of Executive Information System Critical Success Factors for DSS/EIS
For successful adaption of DSS and EIS technology there are some critical
success factors (CSFs) that significantly increase the chances of successfully
using and implementing these technologies.
•Commitment from top management
•Availability of accurate and reliable data
•Careful problem selection
•Integration of DSS and EIS with existing technologies
•Meaningful analysis of costs vs. benefits

Characteristics of an EIS Critical Success Factors for DSS/EIS
For successful adaption of DSS and EIS technology there are some critical
•Computer based information system success factors (CSFs) that significantly increase the chances of successfully
using and implementing these technologies.
• Enables users to extract summary data and solve complex problem
•Commitment from top management
• Provides rapid and direct access to timely information and management reports
•Availability of accurate and reliable data
• Capable of both accessing both internal and external data
•Careful problem selection
• Provide Derived Information to identify the cause or source of problem
•Integration of DSS and EIS with existing technologies
•Provide drill down capabilities that help to retrieve data at whatever level of
detail desired by the user. •Meaningful analysis of costs vs. benefits
Commitment from Top Management Availability of Accurate and Reliable Data
•a critical factor in the successful adoption of any technology is commitment •As DSS/EIS are data-driven , the quality of the decision made using system can only
from top management. be high or effective only if the data input to system is accurate and reliable
•Since DSS/EIS primarily target the middle and top level management they are •If data are not readily available , accessible, or reliable for making decision, user
very important for an organization. may be unwilling to use the system and eventually technology fails
•Without the support of management these technology cannot survive in an Careful Problem Selection
organization •Problem to be solved should be are carefully selected .
•Problem should not be too easy nor to difficult.

•One way to get commitment from management for DSS/EIS is to build
organizational wide system rather than system that solve specific problem of
particular department . •As to easy and simple problem do not require analysis of large data and can be
solved without the system so manager do not prefer to develop system for simple and
easy problems. This save time and money of an organization
•For too difficult and complex problems it may be too difficult and time consuming to
develop the system that increase organizational cost.

Commitment from Top Management Integration of DSS and EIS with existing technologies
•a critical factor in the successful adoption of any technology is commitment •Another critical success factor for successful of DSS/EIS is to integrate these
from top management. technology with the existing system in the organization
•Since DSS/EIS primarily target the middle and top level management they are •It help to ensure the free flow of information.
very important for an organization.
•Without integration it is difficult to achieve the full potential of systems and to
•Without the support of management these technology cannot survive in an deliver the full power of technology.
organization
Costs Versus Benefit
ES & NEURAL NETWORK ES & NEURAL NETWORK
ARTIFICIAL INTELLIGENCE Appropriate Areas for an Expert System
• AI is a branch of computer science concerned with designing intelligent computer •Although expert system is versatile, not all problems should be addressed by expert
systems; that is, system that exhibits the characteristics we associate with intelligence system.
in human behavior – i.e. understanding language, learning, reasoning, solving
problems and so on. •There are some issues that must be addressed before selecting the set of problems
and solutions that is to be modeled using expert system technology
•The field of AI includes the design and development of machines capable of
performing tasks that require human intelligence . ØIs Domain expertise rare and expensive?
ØIs the knowledge likely to be inconsistent and incomplete?
•Expert Systems – branch of AI that is designed to emulate the knowledge and ØDoes problem solving process involve judgment, heuristics and rules of thumb?
expertise of human beings in a specialized area.
ØIs it possible to state precisely what the system should do?
ØIs common sense required to solve the problems?
•An expert system stores the knowledge of an expert in a specific area of study, such
ØCan significant benefits be derived by capturing and disseminating this
as internal medicine, genetic engineering and production engineering.
knowledge?
ØIs top management committed to solving this problem?
ES & NEURAL NETWORK ES & NEURAL NETWORK

Applications of Expert System
•The system applies various reasoning methods to the information stored in it in order
Category Problem addressed
to solve complex problems that require both knowledge and sixth sense.
Prediction Inferring likely consequences of given situations
•This require knowledge and intuition because some answers may not always be right Diagnosis Inferring system malfunctions from observations
or wrong . Design Configuring objects under constraints
Planning Designing actions
•In artificial intelligence, an expert system is a computer system that emulates the
decision-making ability of a human expert Monitoring Comparing observations to plan vulnerabilities
Debugging providing incremental solutions for complex problems
•Expert systems are designed to solve complex problems by reasoning about Repair Executing a plan to administer a pre-described remedy
knowledge, represented mainly as if–then rules rather than through
conventional procedural code.
Instruction Diagnosing, assessing , and repairing student behavior
Control Interpreting, predicting, repairing and monitoring
•ES is a system that records the knowledge and expertise of human experts in a system behaviors
specific area and uses this knowledge and expertise to solve complex problems.
Es & NEURAL NETWORK Es & NEURAL NETWORK
Components of an Expert System Knowledge Base
•An expert system has main five components •Is the repository of knowledge that human experts might apply to solve problem sin
subject area like medicine, engineering, finance.
•Knowledge Base
•Knowledge include facts, theorems, principles , rules , heuristics and rules of thumb
•Inference Engine that experts use to solve a problem
•User Interface
•Heuristics are based on experience, intuition and judgment and hence vary from one
expert to another.
•Knowledge from knowledge base is gathered from different variety of sources ,

including human experts, books, journals, databases and electronic media. This
process is called knowledge acquisition.(KA).
•Knowledge may also be acquired through study, and observation, formal and
informal interviews, questionnaires, prototypes and face-to face contact.

•Expert System Software Knowledge Base
•Professional responsible for acquiring knowledge are known as knowledge
engineers(KE).
• Stores all relevant

information, data, rules ,
cases, and relationships
used by expert system
•Knowledge Base is created by

•Assembling human experts
•Using fuzzy logic
•Using rules, such as IF-THEN statements
•Using cases
Inference Engine User Interface
•Second component of an expert system is the inference engine • A user interface is software that helps a user to interact with the computer by
accepting input from the user and displaying different kinds of output.
•Is a piece of software that determines what knowledge to apply and when and how to
apply it, to solve a given problem •Physical components of user interface are input devices like keyboards, mice, sound
cards and voice recognition systems and output devices like terminals and printers
•It controls and guides the problem-solving process and arrives at conclusions by
applying reasoning to the knowledge In the knowledge base. •Software component includes pull-down menus, graphs , charts , icons ,touch
screens and natural language interfaces.
•Is a program that has the ability to reason and draw inferences .
•There are two types of reasoning: deductive and inductive reasoning.

•Deductive reasoning arrives at a specific conclusion based on a set of general
principles and facts . For examples:
•General Principle: All human beings are intelligent
•Fact : Alija is a human being
•Conclusion: Alija is intelligent.

Inference Engine Knowledge Representation
• it is the process of converting the expert’s knowledge into a form that can be used by
•In this case, based on the general principal that all human beings are intelligent and the system.
the fact that Elizabeth is a human being , the system concludes that Alija is
intelligent. •Knowledge representation is the field of artificial intelligence (AI) dedicated to
representing information about the world in a form that a computer system can utilize
•Inductive Reasoning on the other hand uses specific facts to arrive at general to solve complex tasks such as diagnosing a medical condition or having a dialog in a
principles . For example: natural language.
•Fact: Lassie is warm and affectionate
•Fact: Fluffy is warm and affectionate •Any piece of knowledge can be viewed as an Object Attribute Value (OAV) triplet.
•Fact: Both Lassie and Fluffy are dogs
•General Conclusion Dogs in general are warm and affectionate •An object can be a physical object like table, building or machine or a conceptual
object.
•An inference engine tries to derive answers from a knowledge base. • An attribute is a characteristic of the object .
•Value is the specific quality assumed by the attributes .
•It is the brain of the expert systems that provides a methodology for reasoning about
the information in the knowledge base, and for formulating conclusions.
•For example car is an object that can be defined by its attributes like make, model,
color, year and price. And value of attribute make may be Honda, the value of the
Neural Network
attribute model may be Accord . Neurons are tiny small cells in brain that make think and make smart reasoning.
•So knowledge can be represented using the OAV triplet. Brain has millions of neurons and they communicate to each others
•IF-THEN RULE : Computer that are modeled like neurons of brain that make compute smarter can
•One of the ways of representing the Object, Attribute and Value in an expert perform like human brain.
system is the use of IF-THEN rules.
The idea of modeling the computer as concept of neurons are called neural
•IT works as follows: IF a certain condition (also called antecedent ) is true networks
,THEN perform the following action, or consequent
It is branch of Artificial Intelligence, where computer system is modeled like
•Rules are also called production rules, so systems that use IF-THEN rules are neurons of human brain.
called production system or rule based system.
A computer system modelled on the human brain and nervous system.
•IF-THEN rules are also used in other systems like TPS, MIS and DSS to
represent different kinds of knowledge. Neural networks are programs that model the interconnections of human brain
cells.

IF-THEN RULE : Neural Network
•IF-THEN have the following basic form: •Neural networks are computer system that model the pattern reorganization
•IF: A and/or B capabilities of the human brain, that endowing machines with the ability to identify
•THEN: D and E and classify faces, voices , pictures and written characters.
•The antecedents in a rule can be linked by AND or by OR .
•If they are linked by AND, all the antecedents in the rule must be satisfied •NNs can digest and process large chunks of information and are excellent at
before the actions in the THEN part are implemented. pattern recognition.
•If antecedents are linked by OR if at least one of the antecedents in the rule is •NNs are generally used for application that require
true the THEN part of the rule will be executed. • pattern matching
•Performing multiple operations simultaneously
Examples: •Making associations
IF a students overall grade is greater than 89% AND the student has actively participated in class •Making generalization
THEN overall class grade is A
•Addressing situation that require learning from experience.
IF the car lights were left on AND the car does not start
THEN the battery is dead
Es & NEURAL NETWORK OFFICE AUTOMATION
Neural Network
Office Automation
Another popular application of neural
•Office automation refers to the varied computer machinery and software used to digitally
nets include
create, collect, store, manipulate, and relay office information needed for accomplishing
fraud detection basic tasks.
financial analysis
character recognition • The basic activities of an office automation system are:
text retreval •Raw data storage,
• electronic transfer,
How Neural Network Works •and the management of electronic business information comprise
•A neural networks is made up of interconnected processing elements(PEs), whch are
• Office automation helps in optimizing or automating existing office procedures.
self-adjusting units that are tightly connected with PEs in the system.
Advantages are:
•A PEs receives inputs from the user; Each input has a certain weight assigned to it •Office automation can get many tasks accomplished faster.
•It eliminates the need for a large staff.
•The weight influence the way the input is processed by the PE, and the PE is capable •Less storage is required to store data.
of autonomously and automatically adjusting the weights of the inputs base upon its •Multiple people can update data simultaneously in the event of changes in schedule [
past experiences.
Es & NEURAL NETWORK OFFICE AUTOMATION
Neural Network
•Each PE process the input and generates a signal output signal to other PEs in the Office Automation System(OAS):
network. •Also referred to as the office information system;
•The system observe the overall pattern of output generated t the PEs, which becomes •OAS is system whose primary goal is to facilitate communications.
the basis for information analysis and retrieval .
•Such system is a set of tools that gather, process ,
store, retrieve and disseminate information
between individual workers, team of workers
and business entities, both inside and outside
the organization.
•The primary purpose of OAS is to enhance
communication which involves inputting, processing,
outputting , storing , retrieving and disseminating data and information.
OFFICE AUTOMATION OFFICE AUTOMATION
Different kinds of office automation tools Virtual Corporation
•Fax:(written type of data) uses telephone line to transmit documents. •For many years office communication was considered to be a clerical function.
Technology used: Fax machine, telephone
•Nowadays today systems support workplace communications that has made possible of
•Multimedia:( written , audio, visual)a computer based tool that uses a graphical and imagination of virtual corporation.
interactive interface and combines media types like text , graphics, animation , audio and
video . Technology used: multimedia computer and printer •The electronic office of today looks dramatically different from the mechanized office of just
few yeas ago where typewriters, mechanical devices and the postal service were the primary
means of communication
•Word processing:(written)programs that make it easy to create and alter documents.
Technology used: Computer, Printer •Virtual corporation provides people the ability of work from anyplace without being confined
by physical boundaries.
•Desktop publishing:(written)programs with extensive word processing and graphic
capabilities. Technology used: High resolution computer, printer •VC is a group of employers and employees who are not bound by physical work environment,
but instead use technology to come together temporarily and communicate to achieve a shared
business goal.
•E-mail:(written) programs that allow individuals who are linked through a network to
electronically communicate with each other, any time anywhere in the world.
•In VC employees don’t come to a place to work; instead , they can work from anywhere, at
Technology used: computer, network any time; thus businesses need not invest in office space , furniture and other amenities.

Types of Office Automation System
•Imaging: (written, graphics)imaging converts paper, microfilm, microfiche and OAS can be broadly divvied into two categories :
electronic data into digital images that can be printed , faxed or viewed on a computer •Electronic Publishing and Processing System
screen. Technology used: scanner, optical disk, workstation •Electronic Meeting Systems
•Voice mail: (oral)the sender’s voice message is processed by modem and stored in as Electronic Publishing and Processing System
server at the receiver’s end. When receiver is ready to receive the message , the digitized Word Processing
message is retrieved from the server and reconverted into analog signals Desktop Publishing
Technology used: Telephone, server, network Document Management System:
Multimedia
Imaging
•Groupware : (oral, written, visual) a broad term given to communication tools like Communication Systems:
E-mail, voice, data and videoconferencing that foster group decision making. Email
Technology used: the nature of tools depends nature of application Fax
Voice Mail
Electronic Meeting System
•Video Conferencing : (oral, visual)a type of electronic meeting system that uses Audio Conferencing
telephone, television, computers and communication links to allow geographically apart
Video Conferencing
decision maker to hear and see each other.
GroupWare
https://bit-papers.blogspot.com/
•Technology used: telephone, television, network 23 ©17171R
Importance of OAS in an organization: Help increase volume of work and reduce cost of operation
Office automation is the process of applying modern machines and technology to improve •Lastly, another importance of office automation systems is that they help reduce
information management as well as the overall performance of an organization
individual’s involvement in everyday clerical tasks such as creating reports and
organizing customer data.
•Help improve communication within an enterprise and between enterprises:
•office automation is extremely important because it help facilitate flow of information
• Automation platforms spreadsheets help store bulky customer data; thus help reduce
within an organization.
of paper works, as information is compiled once and stored for future referencing.
•For instance, through teleconferencing, different individuals from different departments
or branches can communicate easily without travelling long distances for meetings, • This help not only help improve volume of work, but also help make office orderly
•Automation systems such videoconferencing help improve communication within or •Besides, automation processes enables only a few workers to perform the duties or
between organizations by reducing the cost and time of meeting because participants task of many. For instance, a single employee can use one machine choose, pack, and
can converge at any time when issues arise without worrying about distance or cost. label products for transportation or shipping.
•In turn, this helps improve the performance of organization because individuals have •This, therefore, help reduce cost of operation because the organization will not spend
enough time to focus on other core activities within the organization
more money in hiring more labor to perform different tasks.

Facilitate preparation and sending of messages Communication System
•Office automation plays an important role in reducing the cycle time Electronic Communication system for Office Automation System includes Email, FAX
between messages preparation and receipt, as individuals can and Voice Mail
compose message rapidly and send to them to the recipients instantly.
Email:
•Email is a system that allows a person or a group to electronically communicate with each
•For instance, office automation platforms such as E-mail permits other through a network.
sending of messages to large numbers of recipients located in
•E-mail is software that allows users, via their computer keyboards, to create, send, and
different regions across the globe receive messages and files to or from anywhere in the world.
•Most e-mail systems let the user do other sophisticated tasks such as filter, prioritize, or file
•Office automation systems such as Emails, therefore, are important
messages; forward copies of messages to other users; create and save drafts of messages;
because they help improve flow of information within an send "carbon copies"; and request automatic confirmation of the delivery of a message.
organization. •E-mail is very popular because it is easy to use, offers fast delivery, and is inexpensive.
•Examples of e-mail software are Eudora, Lotus Notes, and Microsoft Outlook.
E-mail system comprises of the following three components:
Mailer
Voice Mail
Mail Server
•Voice mail facilitates oral communication.
Mailbox •Voice mail is a sophisticated telephone answering machine.
Mailer
It is also called mail program, mail application or mail client. It allows us to • It digitizes incoming voice messages and stores them on disk.
manage, read and compose e-mail.
Mail Server •When the recipient is ready to listen, the message is converted from

The function of mail server is to receive, store and deliver the email. It is must for its digitized version back to audio, or sound.
mail servers to be running all the time because if it crashes or is down, email can be
lost.
•Recipients may save messages for future use, delete them, or
Mailboxes
forward them to other people.
Mailbox is generally a folder that contains emails and information about them
How email works How Voice Mail works

•A user sends an electronic message over a network •The sender dictates a message over the telephone.
•Message is stored in the electronic
mailbox of the receiver. •A special device called a codec, converts the analog signal of the sender’s voice
into a digitized message .
•The electronic mailbox is usually a
file on a server .The messages in it •The message is transmitted over the network and stored in a server at the receiver’s
can be retrieved when the recipient is end.
ready to receive them
•The blinking light on the receiver phone indicates that he or she has a voice
message.
•User can also edit, sort , save and
classify messages and forward them
•When the receiver chooses the digitized message is retrieved from the server,
to other individuals on the networks
reconverted into analog form , using codec at the receiver’s End , and the receiver
receives it over the phone.
OFFICE AUTOMATION
FAX
•Fax transmission is another type of electronic publishing and processing system.
•Fax uses telephones, modems , and scanners to transmit text and graphics to
individuals and organizational all over the world who have access to telephone.
•Computer system is not required to send a FAX. BUSINESS INFORMATION SYSTEM
•A facsimile or facsimile transmission machine (FAX) scans a document containing
both text and graphics and sends it as electronic signals over ordinary telephone
lines to a receiving fax machine.
•This receiving fax recreates the image on paper. A fax can also scan and send a
document to a fax modem (circuit board) inside a remote computer.
•The fax can then be displayed on the computer screen and stored or printed out by
the computer's printer.
OFFICE AUTOMATION BUSINESS INFORMATION SYSTEM

Business Information System
FAX Working: •Business information systems represent a system of controls and
•Fax need a fax machine at either end of a telephone connection. processes which a business uses to analyze information needed to
effectively manage their business.
•A scanner in the fax machine scans the documents at one end and a
built in modem sends it; in the fax machine at the other end, a build- •These controls and procedures can include accounting systems.
in modem receives the message , a scanner scans the document, and
printer prints it. •Business Information Systems comprises the analysis and
organization of business information through the application of
•FAX machines can send the same documents to multiple users. technology.
•These can also be integrated with applications such as word
processors so that faxes can be edited without being rekeyed into
computter.
BUSINESS INFORMATION SYSTEM BUSINESS INFORMATION SYSTEM
MARKETING INFORMATION SYSTEM
Objectives of BIS
•The use of information systems facilitates better decision making in •A marketing information system (MIS) is a management information system designed to
the company. support marketing decision making.
•MKIS means to collect , analyze and apply information to the marketing managers.
• Management is able to review all the present practices and norms
and formulate new ones for the future. •Marketing managers use this system to take marketing decisions.
•Marketing information are collected from internal and external sources –customers,
•Information systems are used across all realms and functions of the suppliers, company sales man, government agencies and all.
business.
•The marketing function of a business is responsible for selling goods and services.
•Management is able to better control its people and processes and •Marketing information systems assist in marketing function.
attain organizational goals.
•Billing and inventory control are also sometimes considered marketing inform systems.
Considered marketing inform system

Functional Information System •Other example are: Marketing research:
This system analyzes information gathered about consumers and products in order to
•A functional information system is a system that provides detailed identify trends.
information for a specific type of activity or related group of activities,
•Sales forecasting sales forecasting
as well as summarized information for management control of such .The purpose of this system is to project future.
activities
•MKIS collects marketing information from different sources and these information are
•Some of functional information system are: analyzed and supplied to marketing managers who uses this information to take
marketing decisions.
•Information System for Marketing (MIS-Marketing Information System)
•Information System for HR Management (HRIS-Human Resources Information System) •MKIS automates the sales and marketing function.
•Information System for Accounts and Finance (FAIS-Financial and Accounting •Such system capture valuable customer information and hence can improve productivity
Information System) , enhance customer service and create better sales and marketing strategies .
•Information System for Production & Manufacturing( Manufacturing Information System) •Such system helps the company closely monitor and quickly respond to marketing
information like stock on hand, merchandising opportunities , effectiveness of latest
promotion, advertising strategies and so on
Manufacturing Information System
•The manufacturing function is concerned with the production of goods that the business sells.
•Manufacturing information provide services to support the manufacturing function.
•Inventory control is often considered to be manufacturing information system because

manufacturing produces the goods for inventory.
Example of Manufacturing Information system are:

Production scheduling:
This system schedules the use of manufacturing facilities to produce products most efficiently.
Material requirements planning (MRP):
The purpose of this system is to determine what parts and materials will be needed during the
manufacturing process and when they will be needed.
Robotics::
This system uses computer-controlled robots in the manufacturing process

•Manufacturing information system is a system that supports the manufacturing
•These are primarily customer oriented and work toward achieving the strategic sales functions of purchasing, receiving , quality control, inventory management, material
and marketing plan of the organization. requirement planning , capacity planning, production scheduling and plant design,.
•These system focus on customer-oriented data and gather , access , analyze and •A computer-based system that works in conjunction with other functional
disseminate up-to-minute , customer-related information. information conjunction with other functional information systems to support the
• firm's management in systems to support the firm's management in solving problems
that relate to manufacturing solving problems that relate to manufacturing the firm's
•MIS thus gives marketing manager the ability to be flexible and responsive to products the firm's products.
evolving market forces.
•Manufacturing information system really applies to both manufacturing and service

environments.
•Manufacturing information system covers all act ivies related to manufacturing and
services.
Quality Information System Financial and Accounting Information System
•Quality Information System are standalone system or embedded systems that helps an •FAIS is the system that provides information related to the accounting and financial
organization to achieve its quality goals.
activities in and organization.
•QIS can promote quality and privide tools and techniques to help the company achieve
its quality goals. •FAIS includes number of subsystems, such as budgeting, cash and asset
management, capital budgeting, portfolio analysis , general ledger, accounts
•It help companies achieve quality certification. receivable, inventory control and payroll systems.
•QIS mainly play role in four different areas with in organization.
•Partial system repair •Financial institutions like banks use specialized FAIS like commercial loan
•Full systems repair analyzers, credit approval systems, commercial accounting system, credit application
•Training
•Oversight systems , automated teller control.
•In partial systems existing system are partially repaired in order to update them and
make them more responsive to the changing needs of decision makers. It may include
providing users with better interfaces, better end-user support or better integration of •Types of FAIS systems
existing system. •General ledger system
•Asset Management system
•E.g. Company developed interface to link its corporate information system with its •Order Entry System
manufacturing information system in order to reduce inventory, enhance customer •Account receivable and payable
support, and increase overall productivity. •Payroll system

•In full system repair, the old system is replaced with a new system. •Developing Cross Functional System
•In a company where the existing system were beyond re-pair ,so new system were
installed in order to achieve the quality performance.
•Training is another area where IS can play an important role in quality

improvement.
•Users must be well trained in systems because this has direct impact both on quality
and on productivity.
•Good data come from well trained users and good data form the basis of good
decisions.
Strategic Information System Strategic Information System

•Strategic Information System can be external or internal .
Strategy: plan or policy or line of action that is designed to achieve the long-term
goals.
•External SIS are used primarily by external entities in the business environment like
customer, suppliers and distributer
•It helps in determining actions that an individual or organization may take or may not
take.
•Internal SIS are used by employees within the organization .
•For example : Apple company might base on entire strategy on delivering the most
innovative product of highest quality. So strategy involves innovative product and •Example of Strategic Information System
high quality consistently. •The ASAP system, designed by Ameriacn Hospital Supply (AHP) , is a TPS that
gained the structure of strategic system because it made easy for hospital to place
•Another company might have strategy to deliver the product with lowest price while orders and provided customers with up-to-date information on the status of their
other company might have strategy to produce variety of product orders.
•Product description, prices and delivery schedules were readily available both to
customers and to AHP managers, who used the information to improve the
quality of their decisions.

Strategic Information System
•SIS is a system that delivers information about product and services that play a direct •Another SIS is the ATM(Automated Teller Machine) introduced by Citibank as it
and prominent role in helping the firm achieving its strategic goals. is only alternatives to open branch offices at large number of different location.
•ATM as a TPS help processing of transaction like deposit, withdraw, balance
•SIS delivers data/information used to access and analyze opportunism and threats in enquiry and many others ,is also SIS as it fulfill the long term strategy of Bank
the business environment. to provide the customer-oriented service.
•The ATMs eliminated the need for opening branch offices, reducing the
•SIS is not a tpye of information system like TPS or DSS. expenses of the bank
•The ATM “brought the bank to the customer” that made the bank services one
of the reliable and useful to the customer.
•Any information system is classified as SIS on how it is used and on the benefits it
provides to the organization.
•If Information system is used in creative ways to achieve the goals and fulfill the
mission of the organization; it can be viewed as an SIS, whether it is TPS or DSS or
any other type of system.

Types of Strategic Information System
Productivity SIS:
•Systems that focus on innovation for competitive advantage –Innovation SIS •Productivity systems are support systems that help to increase the overall
productivity of the organization.
•Some productivity SIS are
•Systems that use information as a weapon –Information Service SIS •Transaction Processing; accounting, payroll
•Systems that increase productivity and lower the costs of goods and services •Inventory Management: raw materials, finished products, work in process
– Productivity SIS •Centralized DBMS: software system to facilitate access to all organizational
data and information
•Innovation SIS: •Production System: material and capacity requirements planning, scheduling,
system that support innovation help companies to be responsive to customer due-date setting
needs.
•Some system like :
•Customer Service Systems: order, order inquiry, service system
•Marketing Planning: Forecasting, sales analysis

Information Service SIS
• System that support information services provide managers with vital Characteristics of Strategic Information Systems
• Three characteristics are commonly found in all strategic information systems
financial and statistical data that enhance internal decision making.
•Telecommunications as a central part of an SIS
•Some information Service SIS are: •Reliance on a number of vendors for providing information technologies
•Financial Planning Systems : systems with mathematical models to aid
financial planning. •Corporation among a number of organization
•Executive Information Systems: system that allow top management to retrieve
internal and external data and information directly from the computer.
Telecommunication :
•Logistics: vehicle routing, freight rate management, shipment tracing,
•Telecommunications are often a vital part of an SIS; the most successful SIS are those
performance measurement.
that go beyond traditional organizational boundaries and eliminate the barriers of
•Electronic Data Interchange (EDI):electronically sending bills, payments , or
time and space through the use of telecommunication.
orders to suppliers and customers
•Expert System : Computerized “consultant” systems for specialized situations
•Telecommunication is extremely used by organization to deliver information within
organization or outside the organization.
Multiple Vendors Strategies for Developing an SIS
• SIS often require the integration of complex technologies , in many cases several •Strategic systems are most difficult to develop.
vendors are needed to develop an SIS .
•Before investing on strategic systems an organization must find answer for two
•For example building Cash Management Account (CMA) system company called questions :
Merril Lynch had link more than 600 brokerage firms all over the world . •Is the project financially feasible?
•Is the project technically feasible?
•Telecommunications equipment for this system was acquired from 30 different
vendors. Is the project financially feasible?
• Strategic systems require more resources over an extended period of time, often
•So most SIS should have ability to identify, coordinate and manage transactions with with little or no guarantee of success.
number of vendors and effectively bring together diverse technologies to achieve a •So before developing the SIS organization must analyze whether the cost of SIS
goal. is feasible or not as SIS can be success or failure where lot of investment is made.

Is the project technically feasible?
Inter-Organizational Systems
•Many SIS have failed because they were not technically viable.
•Inter- organizational systems (IOS) are system shared by two or more companies in
•SIS require technologies that are well established, well understood and widely
the sprit of cooperation and collaboration rather than that of blind competition.
accepted by users ; otherwise they are doomed from the start.
•SIS support inter-organizational and bring together a diverse group of assets and
•Once a company determines that the project is both financially and technically
talents, like ventures enhancing productivity, reducing operating costs, increase
market share and create new partnerships specially that conduct business feasible, it must take five important guidelines to ensure the success of SIS .
transactions in global markets. 1. Technology decisions should be grounded in a clear understanding of the
processes that drive the technology.
•As trends toward globalization continues to accelerate, managers are under pressure 2. Strategic systems should be driven by strategic alliances between trading
partners
to quickly access and disseminate large volumes of information across national and
international boundaries., where it often requires the corporation of diverse business 3. Continuous improvement and investment in strategic systems are essential
units. In such situation SIS as inter-organizational system help to solve such problem for their long-term success.
4. The organizational culture should encourage some risk taking.
•Also multinational companies that rely on the free flow of information between 5. Users must be fully trained if the full potential of the strategic system is to
business units and head office , SIS can help . be achieved.

Implementation
•First step is the organization should carefully study its business process before investing in •Even if companies cross the barrier to defining an idea, they often have a difficult
strategic systems. time implementing it.
•Business process must be re-evualted and radically redesigned before automating them. •Strategic system heavily rely on telecommunication and other leading-edge
•If business process are not clear then it cannot be transformed into an automated process. technologies many companies lack the talent necessary to build such systems.
•Also inter-organizational systems require a great deal of cooperation among diverse
•Second step is the collaboration between business entities that cross traditional departments which is hard to come through.
organizational boundaries.
Maintenance
•Step third , strategic system can be successful over the long run only if the company is
willing to invest in updating and maintaining it. •Companies that overcome the first two barriers types are often stumped by the
complexity of maintain these system so that they can sustain the advantages derived
•Fourth, the organizational culture should encourage top mangers to be “champions” and from them.
“passionate sponsors” who are willing to take key role in development and implementation of •Strategic system are often expensive to maintain and can be an enormous drain on
the system and encourage its use and acceptance by employees and customers the corporate budget.
•Lastly, the organization should have talented people with excelent technical skills and a good •Companies with limited financial resources, technological sophistication and
understanding of the business organizational flexibility are likely to face one or more of these barriers
Strategic Information System Managing Information Resources

Potential Barriers to Developing an SIS Information Resources Management
•Even if the company were to follow some of the guidelines in developing successful
Strategic system , barriers come across .
§Many companies have succeeded through the innovative use of information systems
•Some of barriers are :
and technologies.
•Problem Definition
•Implementation §Thus information, information systems, and information technologies should be
•Maintenance treated as strategic (long-term) resources and should be managed like other corporate
resources like people, machines , materials and money.
Problem Definition:
•Many companies are unsuccessful at making innovative ideas practical , technically §The study of managing information and its associated components is referred to
feasible, appealing and affordable. as information resource management(IRM)
•Also defining a strategic idea requires that business managers communicate clearly
with technical managers . §IRM: policies, principles and process of managing all the components of an
•If the tow groups cannot communicate properly or clearly this can be a barrier to the information system that collect, store, process, retrieve and disseminate
development of strategic systems. information.
•Many innovative ideas are technically infeasible or expensive.
Managing Information Resources
Managing Information Resources
Principle 1:IS department should be managed like any other unit or division of the
business :
•These components include hardware, software, databases, telecommunications, •The basic principles of management like planning, organizing, staffing, directing
different types of information systems, like TPS, MIS, ISS and OAS, management and controlling i.e. applied to the various discipline in an organization like
structures, strategic information system(SIS),IS personnel and end-users. production, marketing and human resources should also be applied to information
system and management.
•IRM- “the planning, budgeting, organizing , directing, training and controlling of

information systems and its associated elements .”. •Principle 2: The sole purpose of information systems is to help the
organization meet its goals and objectives.
•IRM is the management of both information and its resources like personnel,, •Common complaint of CEO and other top manager is that the IS personnel have a
equipment, funds and technology. limited understanding of the business and the industry in which its operates.
•Good IRM policies emphasize and promote aliening technology investments with
business goals.
•IS personnel in organizations with good IRM practices aftershave a sound
understanding of the business and its details and therefore attempt continuously to
find new technologies that will enhance the strength of the company.
•When IS department understand that its primary role is to support the rest of the
organization in achieving its overall mission and goals , the CEO and IT department
personnel become partner rather than adversaries.
Managing Information Resources Managing Information Resources

Principal Of Managing Information Resources Principle 3: IRM is the responsibility of all mangers , regardless of their discipline
or function.
•IRM is the responsibility of all functional mangers who are involved directly or indirectly in the
creation , collection, storage, se ,manipulation and dissemination of information.
•To become successful user of information, information systems, and information
•Treating IRM as the function of IS department reflects a narrow and limited view , one that often
technologies , company have to flow well-established IRM principals and policies . result in gross inefficiencies and poor management of information and information-related recourses.
•Most organizations that utilize the power and potential of information system to achieve their goals
•Four principles of IRM are: firmly believe in and practice of IRM polices and principles
•Principle 1: The IS department should be managed like any other unit or division of •IRM is not only the responsibility of IS department , it is the enterprise –wide-effort .
the business.
•Principle 4: The commitment of top management is the key to realizing the full
•Principle 2: The sole purpose of information systems is to help the organization meet potential of information resources
its goals and objectives. •The success of information systems and information technologies depends to a great extend on the
commitment of the top management to using technology in new ways to achieve the goals of the
organization
•Principle 3: IRM is the responsibility of all managers, regardless of their discipline •If top-management is determined in its commitment to IRM and in the implementation of IRM
or function polices, employees will treat IRM as mandatory that will eventually be forgotten.
•Long-term commitment to technology, some risk taking and ability to apply technology in new ways
•Principle 4: The commitment of top management is the key realizing the full is required from the top management .
potential of information resources
•To create a model of the enterprise
Objectives of IRM: •Third objective of IRM is to build a good understanding of the information
•To effectively utilize information resources inflow and outflow in an organization.
•Only when managers know the inflow and outflow of in an organization
•To inventory, document, and control all resources they can be successful at managing them.
•Managers should be aware of who uses the information, when, how and for
•To create a model of the enterprise what purpose.
•A good knowledge of data inflow and outflow is necessary to an
understanding of issues like where to acquire information , how to use that
•To emphasize the reusability of information
information who are the other decision maker in organization and who use
that information.
•To emphasize the reusability of information

•Final objective of IRM is to eliminate redundancy of information and
increase the reusability of information that is already present within the
organization.

•To effectively utilize information resources:
•First objective of IRM is to use information in the most effective manner
possible. IRM Functions
•This require that the right information, in the right format, be made •Technology Management
available to the right decision maker at the right time.
•Data Management
•To inventory, document, and control all resources
•Second objective is to inventory, document and control all the information •Distributed Systems Management
technolo9gy components with in an organization
•As organization grows and expands, it is difficult to track of its information •Functional Management
resources like hardware, software, telecommunications, database and other.
•When manager do not have any clear idea about the resources then result
•Strategic Management
may be haphazard and have negative impact on the overall productivity of
the origination by creating major information-flow bottlenecks.
•Keeping an inventory of existing information resources is therefore more •End-User Management
than just accounting function, which make all the difference in an
organization’s ability to build integrated systems rather than being burdened
with incompatible systems
Technology Management Centralized and Decentralized
•Technology management is the process of managing the information technology that
gives an organization uses to meets its information needs , including hardware,
software, telecommunications and different types of information systems like as TPS,
MIS,OAS, and strategic information system.
•Good practice of IRM help to manage those technologies efficiently whether an

organization may be large or small.
•Technology inventory management and standardization are important aspects of

technology management.
•Proper technology management lay foundation for building open systems which
allow the free exchange of files, programs and databases among multivendor
hardware platforms or between different types of computers lke mainframe ,
microcomputer.

Data Management Distributed Computer System
•Data management is the process o managing data and all resources that are used to create,
process, store, disseminate and maintain organizational data.
•Data may be in electronic or document form ; data can be manually or automatically. Telecommunicatio Telecommunicatio
ns Business Unit ns
1
•Data are valuable resources for an organization so they must be actively managed, carefully
protected and efficiently unitized.
Distributed Management Business Unit

•Distributed management is the task of managing information resources in a distributed Business Unit 5
2
environment which includes network administration, database administration, system
Telecommunicatio
integration, system security, system maintenance and end-user support. Telecommunicatio
ns
ns
•Computer-based information systems are usually centralized , decentralized , distributed or
some combination thereof.
•Distributed systems are systems in different locations that are linked through a network. Business Unit
Business Unit
3
Functional Management End-User Management
•Functional management is the task of integrating the information flows among the •End-User also play important role in developing and managing information system,
various functional units in a business. so end-user management is also task of management function.
•Building cross functional customer-oreinted information system is the only way to •If end-user are not properly managed, the results can include ad hoc development of
gain a total and uniform view of the customer in modern trends. information system , lack of system standardization, data redundancy , poor system
maintenance and security violations
•In early days number of systems were built as compartmentalized units ;today the
goal is to understand and manage the different functions and integrate them into a •IRM polices must ensure that end-users are equipped with the hardware and
unified whole. software necessary to effectively perform their job functions ,keep them abreast of
new technologies and provide necessary job training and education on issues like
•So IRM help in managing the cross-functional system in effective way. system maintainance, system security and system integration.
Managing Information Resources Computer Security

Strategic Management Computer Security
•Strategic Management is the task of managing strategic systems and all resources •Computer Security includes the polices ,procedures, tools and techniques designed to
that are strategic for the success of the company. protect a company’s computer assets from accidental, errors , theft ,break-ins, physical
damage and illegal access or manipulations.
•It involves updating and maintaining the strategic system according to the
•It cannot be achieved through the automation or sophisticated equipment alone ; it
requirement of an organization.
require the active participation of employees with common sense, good judgment and
high moral values because security is ultimately the responsibility of individual using
•Aso Stategic system evolve from the collaboration between alles and in such cases the computer.
managing such system become more complex
Why Computer systems vulnerable?
•IRM help in careful management and monitoring of such system Some reasons are:
Intentional breaches by Employees: Primary source of security breaches is
the intentional or unintentional actions of employees
Increased System Complexity: Open, integrated, mission-critical and real-time

systems are highly complex and difficult to monitor and manage
Computer Security Computer Security
•Choices of System Components /Too many choices in system Components: the Security Controls
number of hardware , software and network configurations has increased
•Some measures that organizations can take to reduce security breaches.
tremendously.
•It is just like impossible to eliminate all security violations because crackers always
•Network Vulnerabilities: Networks have become increasingly complex and difficult
appear to be one step ahead of security experts.
to manage.
•Computer Security Controls are policies ,procedures ,tools and techniques

•Sophisticated Hackers: Cracker/Hacker are better educated and more technically
designed to reduce security breaches and system destruction , to prevent errors in
skilled, making it easier for them to break to the computer system
data, software and systems ,to protect systems from accidental, intentional and
natural disaster and to continually enhance system security.
•Complacent Management: Top managers often feel that security violations happen
at other companies, not at their.
•Different of security controls are:
•Application Control
•Development Control
•Physical Facilities Control
•Personnel Control

Application Control
Types of Computer Security Breaches •These are policies and procedures that ensure the security and quality of system
application in the organization (such as payroll and inventory management) .
•Accidental or Unintentional Errors
•Application controls cover four areas of data processing, input, processing ,output
•Intentional Errors and storage.
•Cracking Password •Input Controls : Four different input control are :
•Braking into Computer Hardware •Access Privileges:
•Software Virus •Input Authorization;
•Legal Implications of Spreading a Virus •Data Validation
•Data Format
•Natural Disasters
•Process Controls:
•Output Controls
•Storage Controls
Input Controls:
•Input controls are designed to prevent users from entering incomplete, erroneous, Process Control:
unauthorized or inappropriate data. •Process Control are policies and procedures that ensure that data are meaningful
•There are four kinds of input controls : and reliable .
•Access Privileges •It ensure that data are processed using proper procedures and methods.
•Input Authorization •These are designed to catch any errors that may have slipped through the input
•Data validation controls .
•Data Format •They ensure that the right file or the recent updated file is being processed and
that the results of data of file processing is accurate , reliable and timely.
•Example of process control are :
Access Privileges:
•Process control that organization can implement to protect itself from virus are :1) educate
•Some of the access privileges within an organization are: Unique user IDs, users about their effects and how to prevent them 2) restrict the movement of diskettes from one
Aging Passwords, smart cards, access control lists and regular auditing and system to another
monitoring of potential security violations.
•Other process controls include frequent backups of important files which is a effective way to
protect files against accidental deletion, misplacement and natural or man-made disaster.
•Access privileges should be highly selective, closely guarded and determined on
a user-by-user basis or on a function-by-function basis .

•Input Authorization:
• Data input must be authorized and monitored by appropriate authorities, Output Controls:
failing which users illegal motives may cause financial and legal problems •Output controls, which ensure that system output is accurate and is disseminated to the
for the company. right people at the right time and in the right format .
•Data Validation: •The number and rigor (strictness) of the output controls depend on the criticality of the
application.
•Data should be validated before it is processed.
•This can be done by two employees who compare data, or automatically by
•For critical and proprietary application ,output controls are likely to be more strict and
a computer comparing the input data with existing master file. rigid than for non critical application.
•Data values are compared with pre-established values(eg. Phone nos)
•If the output is confidential (like nuclear facility designs or medical research findings),
•Data Format: control measures must be taken to secure the output from unauthorized parties.
•Input Control should also check the format of the data, ensuring that there
are no missing values and that data are in right format (eg. Integer values , •Other output controls include periodic review of system output by authorized
decimal values,), right size and right type (e.g. telephone not in alphabet ). individuals who checks the timeliness, accuracy and format of the output, identify any
exceptions and make sure that no unauthorized programs were accessed during
processing.
Storage Controls •Documentation
•Storage controls ensure that the storage devices on which data and programs are •Proper system documentation is one way to control the quality of the
stored are safe, secure and well protected from natural and man-made disasters. development process and consists of detailed record keeping about the system,
logical and physical functions , its features , its interfaces and any other elements
•Storage control mechanism prevents unauthorized access to storage devices as well that are essential to its smooth functioning and maintenance.
as accidental or intentional deletion or manipulation of file.
•Clear and well-written documentation should be developed for the entire system,
•Some storage control mechanism are passwords and access privileges, backing up for the various programs in the system, and for specific system operations.
files.
•Data Security and Reliability
•Data security and reliability are another development control mechanism that prevents unauthorized
access to data.
•Some measure to secure data are preventing virus, establishing access privileges, securing physical
facilities, and implementation user ids and passwords.

•Authorization Requirements
Development Controls •These are control mechanism a that allow only authorized users to access
•Development controls are controls built into each phase of development cycle. and use the system.
•These control all activities related to input , processing , output ,
•They include measures like establishing development standards (guidelines for dissemination, storage, and maintenance of data.
developing systems), creating proper documentation, ensuring the security and •These are particularly essential for system changes so that employees
reliability of data, establishing proper authorization for changes or additions to cannot accidentally or intentionally change applications.
requirement specifications, and separation of duties .
•Separation of Duties:
•Controls that are built into the development cycle to ensure the security of •It is another development control which reduces or eliminates conflicts of
information systems. interest that can compromise the security and reliability of the system.
•For example , system developer and system tester should be different people
•Types of development controls: to perceived quality and reliably of the system.
•Documentation
•Data Security and Reliability
•Authorization Requirements
•Separation of Duties
Physical Facilities Control Disaster Recovery Plan
•The primary goal of physical facilities control is to protect the physical facilities • Disaster Recovery Plan(DRP) is well-thought and comprehensive plan that
that house the computer and other related assets from theft, unauthorized access, specifies how a company will maintain information system and services when a
natural disasters, and vandalism. disaster strikes.
•Thse protection can be achieved through measures such as posting security
personnel, installing firm alarms, security alarms and hidden cameras and •Company must prepare itself to face natural, infrastructure or operational
requiring users to wear bandages or use smart cards to gain access to the disaster so that company will maintain information systems and services when a
building. disaster strikes.
Personnel Controls •Plan should clearly list and specify the specific situations that warrant then
•Many security breaches are cuased by employees within the company, either declaration of a disaster and should identify the specific cources of action that
because they lack knowledge about system security or bechause they have employees must take when a disaster strikes.
criminal intentions.
•Two personnel controls are :
•Training system users and
•Communicating security polices

Perform Business
•Train system users:
Impact Analysis
•Many security breaches are cussed by simple user errors, Developing a Disaster Recovery Plan
•So achieving the network security is regular and extensive user training on Identify Resources
how to secure systems and data. • Steps in developing a DRP Required
•Employee must be educated on the consequences of poor security and the 1. Perform Business Impact Analysis
penalties for failing to follow company polices.
2. Identify Resources Required Test Recovery Plan
•Establish and Communicate Security Policies and Procedures 3. Test Recovery Plan
•Establishing the security policy for a company is the first and most Sell Plan to
important step. 4. Sell Plan to Management Management
•These securities polices must be communicated among the employees of an
organization and address them in very specific terms ,to protect system 5. Implement and Update Plan
Any
hardware and software. Changes
Implement and Update

Plan
•Step 1: Perform Business Impact Analysis •Step 4: Sell Plan to Management
•First step is to conduct a thorough analysis of the impact of a disaster on the •Success of DRP requires the commitment of top management and the
business, called a business impact analysis or business resumption plan. cooperation of every department in the company.
•More detailed the business impact analysis is, the smaller is the chance of •Once the DRP recovery plan is drawn up , it is presented to top management
overlooking(fail to notice) critical elements during a disaster. for approval for implementation.
•Business impact analysis should clearly identify the situations that qualify •Here management may ask different alternatives for DRP.
as disasters.
•Among the different alternative , management will approve on the DRP plan
•Also it should clearly specify name individuals who have the right and the that will be implemented as long-term commitment from management.
responsibility to declare a disaster , identify the specific process by which a
disaster will be declared and identify and prioritize the critical processes, •Long-term commitment from management on DRP ensure to keep the assets
functions and resources of the organization. of organization secure and protected for long time.

•Step 2: Identify Resources Required •Step 5: Implement and Update Plan
•Next step is to identify the resources required to recover from the disaster. •Once recovery plan is presented to top management, DRP may be approved
•These include money, time, personnel and facilities that should be as it is or may need to be made some changes.
specifically dedicated to disaster recovery.
•If management analysis changes required in DRP then DRP should be done
•Step 3: Test Recovery Plan from step 1 otherwise DRP must be implemented .
•Third step is to test the recovery plan to make sure that it works and that no
critical elements have been forgotten . •Once DRP is implemented , it must be updated regularly.
•During disaster recovery test , every step in the plan must be practiced
several times, the plan itself must be tested several times each year so that all
employees know what to do if disaster strikes.
•The plan should also be updated frequently to include new assets and new
risks .
•Goof DRP is good only when it is well tested, well understood and well
remembered.
Recent Technologies in MIS Recent Technologies in MIS

E-Business:
• Electronic Business or e-business is a term which can be used for any kind of
business or commercial transaction that includes sharing information across the internet.
• Commerce constitutes the exchange of products and services between businesses,

groups and individuals and can be seen as one of the essential activities of any
business.
•Electronic commerce focuses on the use of ICT to enable the external activities and
relationships of the business with individuals, groups and other businesses or
• e business refers to business with help of internet i.e. doing business with the help of
internet network.
•The term "e-business" was coined by IBM's marketing and Internet team in 1996

• Electronic commerce draws on technologies such as mobile commerce, E-Learning
electronic funds transfer, supply chain management, Internet marketing, online
transaction processing, electronic data interchange (EDI), inventory management • Distance learning, sometimes called e-learning, is a formalized teaching and
systems, and automated data collection. learning system specifically designed to be carried out remotely by using
electronic communication.
• Modern electronic commerce typically uses the World Wide Web for at least one
part of the transaction's life cycle, although it may also use other technologies • Education via the Internet, network, or standalone computer.
such as e-mail.
• E-learning is essentially the network-enabled transfer of skills and knowledge

• These electronic business processes include buying and selling products,
supplies and services; servicing customers; processing payments; managing
production control; collaborating with business partners; sharing • E-learning applications and processes include Web-based learning, computer-
information; running automated employee services; recruiting; and more. based learning, virtual classrooms and digital collaboration.
• Content is delivered via the Internet, intranet/extranet, audio or video tape,

satellite TV, and CD-ROM.
• The delivery of a learning, training or education program by electronic means. E-governance :
• Electronic governance or e-governance is the application of information and
• E-learning involves the use of a computer or electronic device (e.g. a mobile communication technology (ICT) for delivering government services, exchange
phone) in some way to provide training, educational or learning material. of information, communication transactions, integration of various stand-alone
systems and services between government-to-customer (G2C), government-to-
business (G2B), government-to-government (G2G) as well as back
• E-learning can involve a greater variety of equipment than online training or office processes and interactions within the entire government framework.
education, for as the name implies, "online" involves using the Internet or an
Intranet. • Through e-governance, government services will be made available to citizens in
a convenient, efficient and transparent manner.
• CD-ROM and DVD can be used to provide learning materials.
• Generally four basic models are available – government-to-citizen (customer),
• Distance education provided the base for e-learning's development. government-to-employees, government-to-government and government-to-
business
• E-learning can be "on demand". It overcomes timing, attendance and travel

difficulties.

Popular distance learning technologies include:
Government to citizen
• The goal of government-to-customer (G2C) e-governance is to offer a variety of ICT
• Voice-centered technology, such as CD or MP3 recordings services to citizens in an efficient and economical manner, and to strengthen the
relationship between government and citizens using technology.
• Video technology, such as instructional videos, DVDs, and interactive
videoconferencing • There are several methods of government-to-customer e-governance.
• Computer-centered technology delivered over the Internet or corporate intranet • Two-way communication allows citizens to instant message directly with public
administrators, and cast remote electronic votes (electronic voting) and instant
opinion voting.
Studies indicate that distance learning can be as effective as the traditional format • Transactions such as payment of services, such as city utilities, can be
when the methods are appropriate to the teaching tasks, there is student-teacher completed online or over the phone.
interaction, and the teachers provide students with appropriate and timely
feedback. • Mundane services such as name or address changes, applying for services or grants,
or transferring existing services are more convenient and no longer have to be
completed face to face
Government to employees Government to government
• E-Governance to Employee partnership (G2E) Is one of four main primary • It is the relationship between online tools, sources, and articles that help
interactions in the delivery model of E-Governance. government offices and department maintain communication with the
government and with their co-offices.
• It is the relationship between online tools, sources, and articles that help
employees maintain communication with the government and their own
companies. • The purpose to include e-governance to government is to means more efficient
in various aspects.
• E-Governance relationship with Employees allows new learning technology in
one simple place as the computer. Documents can now be stored and shared with • Whether it means to reduce cost by reducing paper clutter, staffing cost, or
other colleagues online. communicating with private citizens or public government.
• E-governance makes it possible for employees to become paperless and makes it • E-government brings many advantages into play such as facilitating information
easy for employees to send important documents back and forth to colleagues all delivery, application process/renewal between both business and private citizen,
over the world instead of having to print out these records or fax
and participation with constituency.
• G2E services also include software for maintaining personal information and
records of employees.

• Some of the benefits of G2E expansion include: Government to business
• Government-to-Business (G2B) is the online non-commercial interaction
• E-payroll – maintaining the online sources to view paychecks, pay stubs, pay bills, between local and central government and the commercial business sector with
and keep records for tax information. the purpose of providing businesses information and advice on e-business 'best
practices'.
• E-benefits – be able to look up what benefits an employee is receiving and what
benefits they have a right to.
• G2B:Refers to the conduction through the Internet between government agencies
• E-training – allows for new and current employees to regularly maintain the training and trading companies.
they have through the development of new technology and to allow new employees
to train and learn over new materials in one convenient location. E-learning is
another way to keep employees informed on the important materials they need to
• G2B:Professional transactions between the company and the district, city, or
know through the use of visuals, animation, videos, etc. federal regulatory agencies.
• I
• Maintaining records of personal information – Allows the system to keep all records • G2B usually include recommendations to complete the measurement and
in one easy location to update with every single bit of information that is relevant to evaluation of books and contracts.
a personal file. Examples being social security numbers, tax information, current
address, and other information
E-Medicines
• eMedicine is an online clinical medical knowledge base founded in 1996 by two

medical doctors,
• The website is searchable by keyword and consists of approximately 6,800

articles, each of which is associated with one of 62 clinical subspecialty
textbooks.
• The site is free to use, requiring only registration.

Virtual Reality • Internet
• Virtual reality is an artificial environment that is created with software and • The Internet is the global system of interconnected computer networks that use
presented to the user in such a way that the user suspends belief and accepts it as the Internet protocol suite (TCP/IP) to link devices worldwide.
a real environment. On a computer, virtual reality is primarily experienced
through two of the five senses: sight and sound. • It is a network of networks that consists of private, public, academic, business,
and government networks of local to global scope, linked by a broad array of
• The simplest form of virtual reality is a 3-D image that can be explored electronic, wireless, and optical networking technologies.
interactively at a personal computer, usually by manipulating keys or the mouse
so that the content of the image moves in some direction or zooms in or out. • The Internet carries an extensive range of information resources and services,
such as the inter-linked hypertext documents and applications of the World Wide
• Virtual reality can be divided into: Web (WWW), electronic mail, telephony, and peer-to-peer networks for file
• The simulation of a real environment for training and education. sharing.
• The development of an imagined environment for a game or interactive story.
• Components of Internet • Telnet - Creation of a dumb terminal session to a host computer in order to run
• The Internet components most Internet users are familiar with are e-mail, the software applications on the host system.
web, and web access
• Usenet - Newsgroups for receiving news and sending out announcements.
• The most common components of the Internet.
• World Wide Web - This is largest, fastest growing, part of the Internet, the part
• Access - To interact directly with the Internet requires some form of access or for which Internet browsers like Netscape’s Navigator and Microsoft’s Explorer
connectivity to the Internet. were designed. Business is the leading factor fueling the rapid growth of the
Web making information, advertising, and product ordering readily available to
everyone with Web access.
• Chat - IRC (Internet Relay Chat) is used for live discussions on the Internet.
• Ecommerce - Taking orders for products and services on the Internet.
• E-mail - Exchanging electronic letters, messages, and small files
Recent Technologies in MIS Cyber Law

•Cyberlaw or Internet law is a term that encapsulates the legal issues related to use of
• FTP - File Transfer Protocol is the most common method of transferring files the Internet.
between computers via the Internet.
• It is less a distinct field of law than intellectual property or contract law, as it is a
• Hosting - Making information available to others on the Internet. domain covering many areas of law and regulation
• Mailing Lists - E-mail messages forwarded to everyone on a special interest list. Cyber Law of Nepal (Electronic Transaction Act-2063)
•The Government of Nepal had approved the Electronic Transaction Act-2063 (ETA
• Search Engines - These tools are really a part of the World Wide Web and are 2063) on 8th December 2006.
often used when looking for information because the Web has grown so large
and is without any inherent organizational structure.
•This document is a Cyber Law of Nepal and it has provisions document for
authentication and regularization of the recognition, validity, integrity and reliability
of generation, production, processing, storage, communication and transmission
system of electronic records by making the transactions to be carried out by means of
electronic data exchange or by any other means of electronic communications, reliable
and secured.
Cyber Law Cyber Law
•The law does not only legalize all sort of electronic transactions and digital Cyber Crime
signatures, it has undoubtedly implied the ways to run several computer-based Definition
mechanisms and penalize cybercrime.
•Cybercrime, or computer crime, is crime that involves a computer and a network
• It has 12 sections (chapters) and 80 clauses, the chapters describes the provisions
related to electronic records and digital signature, dispatch, receipt and
acknowledgement of electronic records, controller and certifying authority, digital •The computer may have been used in the commission of a crime, or it may be the
signature and certificates, functions, duties and rights of subscriber, electronic record target
and government use of digital signature, network service , information technology
appellate tribunal and offence relating to computer. •Offences that are committed against individuals or groups of individuals with a
criminal motive to intentionally harm the reputation of the victim or cause physical or
•Cyber law is connected to our day to day life and is the significant area of human mental harm, or loss, to the victim directly or indirectly, using modern
life. telecommunication networks such as Internet (Chat rooms, emails, notice boards and
groups) and mobile phones (SMS/MMS) is called Cyber crime.
•Cybercrime, also called computer crime, is any illegal activity that involves a
computer or network-connected device, such as a mobile phone.
Cyber Law Cyber Law

•The Department of Justice divides cybercrime into three categories: crimes in which
•We cannot ignore that Internet has unlocked numerous opportunities for mankind but the computing device is the target, for example, to gain network access; crimes in
it is also true that from cyber crimes are also getting huge place in our lives. which the computer is used as a weapon, for example, to launch a denial of service
(DoS) attack; and crimes in which the computer is used as an accessory to a crime, for
example, using a computer to store illegally-obtaine
•Sometimes it’s so serious that it takes immense time to solve the problem.
•Cybercrime may be committed by individuals or small groups, as well as by criminal

•There is no doubt that technologies are being a crucial part of humans and it is our organizations that are often spread around the world and committing crimes on an
responsibility to deal with cyber security. unprecedented scale.
• According to Cyber Law in Nepal if an individual is found in such cyber crime like
hacking the intellectual property of others he or she will be punished for minimum 6
months to 3 years in prison and has to pay minimum 50 thousand to max 3 lakhs.
Cyber Law Cyber Law
Type of Cyber Crime Cyber terrorism
Computer crime encompasses a broad range of activities.
•Cyberterrorism is the act of Internet terrorism in terrorist activities, including acts of
deliberate, large-scale disruption of computer networks, especially of personal
•Fraud and financial crimes computers attached to the Internet, by the means of tools such as computer viruses.
•A cyberterrorist is someone who intimidates or coerces a government or organization

•Cyber terrorism to advance his or her political or social objectives by launching a computer-based
attack against computers, networks, or the information stored on them.
•Cyberextortion
Cyberterrorism in general, can be defined as an act of terrorism committed through the
use of cyberspace or computer
•Cyberwarfare
•Cyberterrorism can be also defined as the intentional use of computer, networks, and
public internet to cause destruction and harm for personal objectives
•Computer as a target
•There are also hacking activities directed towards individuals, families, organized by
•Computer as a tool groups within networks, tending to cause fear among people, demonstrate power,
collecting information relevant for ruining peoples' lives, robberies, blackmailing etc
Cyber Law Cyber Law

Fraud and financial crimes Types of cyberterror capability
•Computer fraud is any dishonest misrepresentation of fact intended to let another to
do or refrain from doing something which causes loss. In this context, the fraud will
result in obtaining a benefit by: •The following three levels of cyberterror capability is defined by Monterey group
•Altering in an unauthorized way. This requires little technical expertise and is •Simple-Unstructured: The capability to conduct basic hacks against individual
common form of theft by employees altering the data before entry or entering false
data, or by entering unauthorized instructions or using unauthorized processes; systems using tools created by someone else. The organization possesses little target
analysis, command and control, or learning capability.
•Altering, destroying, suppressing, or stealing output, usually to conceal unauthorized
transactions. This is difficult to detect; Advanced-Structured: The capability to conduct more sophisticated attacks against
multiple systems or networks and possibly, to modify or create basic hacking tools.
•Altering or deleting stored data; The organization possesses an elementary target analysis, command and control, and
learning capability.
•Other forms of fraud may be facilitated using computer systems, including bank
fraud, carding, identity theft, extortion, and theft of classified information.
Complex-Coordinated: The capability for a coordinated attack capable of causing
•A variety of internet scams, many based on phishing and social engineering, target mass-disruption against integrated, heterogeneous defenses (including cryptography).
consumers and businesses. Ability to create sophisticated hacking tools. Highly capable target analysis, command
and control, and organization learning capability.
Cyber Law Cyber Law
Cyberextortion Computer as a target
•These crimes are committed by a selected group of criminals.
•Cyberextortion occurs when a website, e-mail server, or computer system is
subjected to or threatened with repeated denial of service or other attacks by
malicious hackers. •Unlike crimes using the computer as a tool, these crimes require the technical
knowledge of the perpetrators.
•These hackers demand money in return for promising to stop the attacks and
to offer "protection". • These crimes are relatively new, having been in existence for only as long as
computers have—which explains how unprepared society and the world in general is
• According to the Federal Bureau of Investigation, cyberextortionists are towards combating these crimes.
increasingly attacking corporate websites and networks, crippling their ability
to operate and demanding payments to restore their service.
•There are numerous crimes of this nature committed daily on the internet:
•More than 20 cases are reported each month to the FBI and many go
unreported in order to keep the victim's name out of the public domain. •Crimes that primarily target computer networks or devices include:
Computer viruses
•Perpetrators typically use a distributed denial-of-service attack. Denial-of-service attacks
An example of cyberextortion was the attack on Sony Pictures of 2014 Malware (malicious code)
Cyber Law Cyber Law

Cyberwarfare Computer as a tool
•When the individual is the main target of cybercrime, the computer can be
•Cyberwarfare has been defined as "actions by a nation-state to penetrate another considered as the tool rather than the target.
nation's computers or networks for the purposes of causing damage or disruption,“,
but other definitions also include non-state actors, such as terrorist groups, companies, •These crimes generally involve less technical expertise.
political or ideological extremist groups, hacktivists, and transnational criminal
organizations
•Human weaknesses are generally exploited.
•Some governments have made it an integral part of their overall military strategy,
with some having invested heavily in cyberwarfare capability. •The damage dealt is largely psychological and intangible, making legal action
against the variants more difficult.
•Cyberwarfare is essentially a formalized version of penetration testing in which a
government entity has established it as a warfighting capability •These are the crimes which have existed for centuries in the offline world.
Scams, theft, and the likes have existed even before the development in high-
tech equipment.
Types of threat
Cyberattacks, where damage or disruption is caused are the main concern. •The same criminal has simply been given a tool which increases his potential
Cyber espionage, which can provide the information needed to launch a successful pool of victims and makes him all the harder to trace and apprehend.
attack.
Cyber Law Cyber Law
•Crimes that use computer networks or devices to advance other ends include:
•Fraud and identity theft (although this increasingly uses malware, hacking and/or
phishing, making it an example of both "computer as target" and "computer as tool"
crime)
DO DON’T
•Information warfare
•Phishing scams
•Spam Schoolwork Use the internet to help Don’t copy other people
•Propagation of illegal obscene or offensive content, including harassment and threats you do the homework. You works and call it your
can find many information own. Do credits to the
inside the internet. author or website.
Music, videos and Use the internet to learn Don’t use the internet to
copyright about music, video and download or share
games. copyrighted material.
Cyber Law Cyber Law

DON’T
Cyber Ethics
•Cyber-ethics is the discipline of using appropriate and ethical behaviors and
acknowledging moral duties and obligations pertaining to online environments and
DO
digital media.
E-mail and instant Use the internet to Don’t use the internet to
•Cyber ethics is the ethics applied to the online environment. communicate with friends and communicate with strangers.
messaging (IM) family. But make sure you Don’t pretend to be someone
know to whom you exchange else and don’t be rude or use
•Cyber ethics is a code of behavior for using the Internet. your e-mail and IM bad language.
For Parents Encourage your children to use Don't leave your children
the Internet. The Internet has a unsupervised. Make sure you
lot good things to offer know what sites your children
children. visit when they're on the
internet, and with whom
they're communicating. Look
over their shoulder. Keep track
of the websites they visit.
Cyber Law
Rules of Cyber
•Do not use rude or offensive language.
•Don’t be a bully on the Internet. Do not call people names, lie about them, send
embarrassing pictures of them, or do anything else to try to hurt them.
•Do not copy information from the Internet and claim it as yours. That is called
plagiarism.
•Adhere to copyright restrictions when downloading material including software, games,

movies, or music from the Internet.
•Do not break into someone else’s computer.
•Do not use someone else’s password.
•Do not attempt to infect or in any way try to make someone else’s computer unusable.

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$sagarMalla CITE 2016 Batch 19171R

MANAGEMENT INFORMATION MANAGEMENT INFORMATION

MANAGEMENT INFORMATION MANAGEMENT INFORMATION

INTRODUCTION Advantages of MIS

•Formal systems are designed and developed using a set of well-established

MANAGEMENT INFORMATION MANAGEMENT INFORMATION

MANAGEMENT INFORMATION MANAGEMENT INFORMATION

ØAccessibility: Information is useless if it not readily accessible to decision maker,

qSummarizing : When processed data become information, it can be condensed

MANAGEMENT INFORMATION INFORMATION SYSTEM FOR MANAGERIAL

INFORMATION SYSTEM FOR MANAGERIAL

INFORMATION SYSTEM FOR INFORMATION SYSTEM FOR

INFORMATION SYSTEM FOR MANAGERIAL DECISIONN-

• Are computer-based information system that supports business or organizational

• ES con solve problems that require theoretical knowledge and practical

Decision Support System Decision Support System

• The organization may be any industry, institution, firm, company or a factory.

Decision Support System Decision Support System

•Models are consistently utilized applied when decisions are made.

•Models are representation of some event or reality.

Decision Support System Decision Support System

Decision Support System Decision Support System

• Interactive computer-base d system that support meeting. •Single Computer Systems

Decision Support System Decision Support System

• Also known as Executive Information System (EIS)

Decision Support System Executive Information System

•Commitment from top management

•Availability of accurate and reliable data

•Careful problem selection

•Integration of DSS and EIS with existing technologies

•Meaningful analysis of costs vs. benefits

Executive Information System Executive Information System

•Problem should not be too easy nor to difficult.

Executive Information System Executive Information System

ES & NEURAL NETWORK ES & NEURAL NETWORK

•Knowledge from knowledge base is gathered from different variety of sources ,

Es & NEURAL NETWORK Es & NEURAL NETWORK

• Stores all relevant

•Knowledge Base is created by

•There are two types of reasoning: deductive and inductive reasoning.

Es & NEURAL NETWORK Es & NEURAL NETWORK

Es & NEURAL NETWORK Es & NEURAL NETWORK

OFFICE AUTOMATION OFFICE AUTOMATION

OFFICE AUTOMATION OFFICE AUTOMATION

Mail Server •When the recipient is ready to listen, the message is converted from

OFFICE AUTOMATION OFFICE AUTOMATION

How email works How Voice Mail works

OFFICE AUTOMATION BUSINESS INFORMATION SYSTEM

BUSINESS INFORMATION SYSTEM BUSINESS INFORMATION SYSTEM

•Manufacturing information provide services to support the manufacturing function.

•Inventory control is often considered to be manufacturing information system because

Example of Manufacturing Information system are:

BUSINESS INFORMATION SYSTEM BUSINESS INFORMATION SYSTEM

•Manufacturing information system really applies to both manufacturing and service

BUSINESS INFORMATION SYSTEM BUSINESS INFORMATION SYSTEM

•Training is another area where IS can play an important role in quality

Strategic Information System Strategic Information System

Strategic Information System Strategic Information System

Strategic Information System Strategic Information System

Strategic Information System Strategic Information System

Strategic Information System Strategic Information System

Strategic Information System Strategic Information System

Strategic Information System Managing Information Resources