Practical-1

Aim- MIS and its Functional subsystem.

 Introduction:
A management information system (MIS) is a system that provides information needed
to manage organizations effectively. Management information systems involve three primary
resources: technology, information, and people. It's important to recognize that while all three
resources are key components when studying management information systems ... the most
important resource is people. Management information systems are regarded to be a subset of the
overall internal controls procedures in a business, which cover the application of people, documents,
technologies, and procedures used by management accountants to solve business problems such as
costing a product, service or a business-wide strategy. Management information systems are distinct
from regular information systems in that they are used to analyze other information systems applied
in operational activities in the organization.Academically, the term is commonly used to refer to the
group of information management methods tied to the automation or support of human decision
making, e.g. Decision Support Systems, Expert systems, and Executive information systems.

“Management Information System (M.I.S.) is basically concerned With processing

data into information. which is then communicated to the various Departments in an
organization for appropriate decision-making.”

Data Information Communication Decisions

 MIS Subsystem:-
 Organisational functional sysubstem:
It supports the various functions of an Organisation.There are different
types of functions at different level like strategic, management control & operational control
levels in any organization. Example-marketing,Production, Personnel etc.
 Activity Subsystem:
it supports the activity for which they are used.Example-
transactions,operations etc.

Case study
HOTEL MANAGEMENT SYSTEM

Introduction
The management information system here we are discussing is the information system for Hotel
diamond. Diamond hotel is situated in the Pune . Located just 20 minutes from Pune international
airport and ten minutes from the domestic airport.
Hotel Diamond is a multi-dimensional lifestyle complex set on 12 acres of landscaped gardens &
water features, encompassing luxury rooms and suites, contemporary serviced apartments, varied
dining options, extensive leisure facilities, meeting rooms and an international shopping plaza. Our

hotel in Mumbai is host to Club Oasis Fitness Centre & Spa. Restaurants & Bars at the hotel
include China House restaurant & lounge, the Italian Celini for home-style cooking and Soma
restaurant serving tandoor-grilled specialties.

Infrastructure
Infrastructure is the basic structure or feature of the system or organization. If we consider the
infrastructure of the hotel, it covers all the aspects of any five stars or seven stars hotels such as
restaurant, lodging and boarding facility, resorts, discos, pubs etc.
 Customize hotel rooms.
 Pre or advance booking of resort, rooms etc.
 Good housekeeping facility.
 Good maintenance of inventory.
 Maintain good public relationship.
 Maintains all personal hygiene and environmental sanitation.

Business
As this hotel one of the popular hotel, the business provided by the hotel is also very large. Many
investors would like to invest in our hotel.
The various strategies implemented by the hotel provide good profit to the organization. If we
consider the business provided by the each service provided by the hotel then it is as follows.

Restaurant: 65%
Resort: 14%

65% Logging & boarding: 9%

5%
Disco/pubs: 9%

9% Auditorium: 5%

9%
14%
 Business

The restaurant part of the hotel provides more business as customers normally visited to the hotel to
take breakfast, lunch or dinner. The lodging and boarding section provides second largest business to
the hotel. Resort provides 10 percent of the total business, Discos and pubs and auditorium provides
5 percent of the business.
Enterprise model
The enterprise modal of the hotel is as shown in the figure. First level of the include board
members of the hotel. The next level of the hotel contains manager. The manager manages both
insiders as well as outsiders. Insider parties include all departments and the workers whereas
outsider contains suppliers, shareholders and customers. The figure shows the enterprise modal for
the hotel Diamond.

Board

Managing director

Manager

Insider Outsider

Department Staff Supplier Customer Shareholder

Enterprise model

Output
The output provided by the hotel is nothing but the services which we are going to provide to the
customers. The main goal of getting good output is to satisfy all the customers and to increase the
business of the hotel. In hotel management system the output can be generated in the form of
reports. The reports generated in the hotel are
 Collection Report
 Annual Report
 Stock or Inventory Report
 Other Reports

The collection report contains total income of the hotel in one day, week, and month or in annual

year. The annual report contains the whole year’s report of the hotel. Stock reports give the
information about the inventory of the hotel. Other reports may contain the number of customers
visited to the hotel or a particular employee’s or customer’s information repots, leave repots of
employees etc.
Guidelines for customers
The customers have to follow some guidelines in the visiting periods of the hotel. The guidelines
decided for the customers by the hotel Diamond are as follows:
 While entering into the hotel the customer must provide the information to the reception
whatever and whenever asked.
 While ordering any service the customer must order the service only ot the respective staff
member of the hotel.
 In case of any damage to hotel property, it will be get paid by the customer.
 Customer has pay advance for booking of any particular service.
 Customer should fill the feedback form before check out. Because your suggestions values us.

Information flow
The purpose of implementing the management information system in the organization is to decide
flow of information within the organization.
In each and every organization there are many departments in which various reports are generated.
These reports are useful to decide the flow of information within the hotel. The repots generated by
one department will act as input to the other department.
if we consider the information flow between the various departments of the hotel, the reports
generated by the each department of the hotel helps in preparing the final that is annual report of
hotel.

Conclusion
MIS is a system consisting of people, machines, procedures, databases and data models, as its
elements. The system gathers data form the internal and external sources of an organization;
processes it and supplies information to assist manager in decision making.
 Practical-2
Aim- Study of physical and conceptual structure of MIS
Physical Structure of Management Information System:-
A management information system (MIS) is
an organized combination of people, hardware, communication networks and data sources that
collects, transforms and distributes information in an organization. An MIS helps decision making
by providing timely, relevant and accurate information to managers. The physical components of
an MIS include hardware, software, database, personnel and procedures.

 Hardware

All physical components of a computer system compose the computer hardware. Important

components include the central processing unit, input/output devices, storage units and
communication devices. Communication can be over fiber-optic cables or wireless networks.

 Software
Software provides the interface between users and the information system. Software can be divided
into two generic types: system software and applications. The system software comprises of the
operating system, utility programs and special purpose programs. Applications are developed to
accomplish a specific task. For users of MIS it is much more important to understand the software
than the hardware. Software maintenance can take 50 to 70 percent of all personnel activity in the
MIS function. When the organization moves to implement an advanced information system the
hardware and software environment becomes more complex.

 Database
A database is a centrally controlled collection of organized data. Central control reduces
redundancy and duplication of data. Data is stored in an organized and structured way to facilitate
sharing and improve availability to those who need it. The database improves efficiency of storage
 by elimination of redundant files and improves efficiency of processing by providing all required
data in a single file rather than separate files. This also improves efficiency of information retrieval.

 Procedures
Three types of procedures are required for an MIS to operate effectively: user instructions,
instructions for input preparation and operating instructions for MIS personnel who maintain the
MIS.

 Personnel
The personnel in the MIS function include computer operators, programmers, systems analysts and
managers. Human resource requirements should be assessed by considering both the present system
needs and the future system growth. The quality of MIS personnel is a key factor in its effectiveness.
An MIS manager needs a combination of both managerial and technical skills.

Conceptual Structure of Management Information System

Today's business environment contains copious amounts of information, both internal and external to
a company's operations. Businesses often look to capture this information for making decisions and
improving operations based on different factors gleaned from data.

 Identification

Management information systems represent classic concepts for gathering information from a
variety of business processes for the purpose of management review. The structure and scope of
this theory relates that some information or data exists that can improve business decisions.

 Features
Companies often attempt to design and implement an information gathering system that will
encompass their organization's entire operations. While small business owners will not need such a
system, owners and directors in large companies cannot be at the forefront of operations, giving
rise to the need for an information system.

 Considerations
For maximum effectiveness, management information systems should not be static. Companies will
often need a system that will expand or adjust to changes in operations. This allows business
owners and managers access to the most up-to-date information when making business decisions.

 Operations Research MS
 Demand Management.
 Retail software and SAP
 Balanced Scorecard

Case study
MISCO: a conceptual model for MIS implementation in SMEs
MISCO Model: Introduction

The MISCO (Management Information System Culture-Organisation) Model comprises a set of

activities and techniques to prepare SME organisations for MIS implementation. MISCO has six
main stages. Stage 1 is recognition, followed by Stage 2 consisting of IT Training and Education.
Stage 3 consists of the following activities: pilot schemes, communication, education, facilitation,
dissemination and mentoring. The analysis and evaluation stage (Stage 4) incorporates a feedback
loop. Stage 5 breaks down into an acceptance activity leading to the final stage (Stage 6), stability.
This final stage also incorporates a feedback loop back to Stage 2. A "cause-effect" relationship
exists between activities, where the outputs of an activity become inputs for the next MISCO
activity.

 MISCO Stages

MISCO comprises a group process for UK-based SMEs and, in this context, can be regarded as
both a methodology and a process. MISCO can be broken down into six main stages, some of
which can be broken down into several component activities. All stages consist of several
multifarious, yet interrelated, activities.Identification of the activities within these six stages, in
addition to guidelines, tools and techniques to be used, is important in the interests of correct
understanding and application. Identifying the personnel involved in all stages will also be of
paramount importance. The activities involved in each of the stages can be summarised as follows:

 Stage 1: Recognition
 Stage 2: IT Training and Education Stage 3: Cultural and Organisational Change
o Step 1 - PS: Pilot Schemes
o Step 2 - CM: Communication
o Step 3 - ED: Education
 o Step 4 - FC: Facilitation
o Step 5 - DS: Dissemination
o Step 6 - MN: Mentoring
 Stage 4: Analysis & Evaluation
 Stage 5: Acceptance
 Stage 6: Stability

 MISCO Organisational Roles

MISCO change process should be carried out by at least two people, one of whom assumes the role
of the implementor, the other should be a representative of top-line management.The MISCO
Support Team should co-ordinate the activities of the group and should interact with the MISCO
Management Committee. Key responsibilities of the MISCO Support Team (or implementor)
include:

 Scheduling meetings and ensuring that all necessary resources are available (eg. OHPs, flip-charts).
o Making contact with organisational (company) members and ensuring that they are able to
take part in the group meetings (either in person or using an electronic medium such as email).
o Organising the documentation generated by group discussion and, after the meeting is
finished, supplying the MISCO Management Committee with this documentation.

In the MISCO Support Team, the facilitator is responsible for summarising performance
information about the change process and for highlighting opportunities for improvement. These
responsibilities demand of the facilitator a thorough understanding of MISCO's criteria, guidelines,
tools and techniques. However, the facilitator should not solely decide on the adoption of specific
changes. This is a prerequisite of the MISCO model as changes and future directions should be
obtained by group consensus.The other members of the group should provide input, with executive
decisions resting with the facilitator. In smaller organisations, it may be practicable for one person
to play two or three roles, for example group leader, facilitator, and to provide inputs as a "group
member". There is a danger at this point that objectivity will be lost.

 MISCO Guidelines

Apart from the guidelines listed in the previous section, there are a number of additional guidelines
which are relevant to the MISCO change process on a macro level. Such points are not necessarily
associated with a particular stage or activity but are nevertheless an integral part of the framework:
 Documentation

The stages which the MISCO Support Team executes should be properly documented. The facilitator
should possess full responsibility for documenting these processes as this historical data may prove
to be of significance either in later stages or activities of the MISCO change process or in subsequent
change programmes.

 Linked Meetings

Each meeting should, if possible, link to the previous meeting. An introduction to the meeting should
link the main themes of the previous meeting (or meetings) with the aims and objectives of the
current meeting. Each meeting should end with a summary of the main points which have been
discussed. This summary can become the basis of the introduction for the next meeting. Such an
approach can be justified in the interests of group cohesion and focus.

 Group Cohesion

Group "cohesiveness" (described earlier) is an integral part of the MISCO model. The facilitator
should not use autocratic management methods to "enforce" such cohesion as this approach is
contrary to that desired in MISCO.

 Feedback

The feedback loops shown in the MISCO model should be carried out in good time. Unduly
deferring action (or re-action) endangers cohesiveness and the overall impetus of the project.
Conversely, not waiting for a sufficient amount of time may infer to the organisation a hurried or
superficial implementation approach. Future research may indicate a desired time for
implementation (or re-implementation).

 MISCO flow chart notation and guidelines

The MISCO flow chart represents processes using ANSI standard flow chart symbols. MISCO
uses only four symbols: the Start/Finish ellipse, the Activity rectangle, the Decision diamond and
the Flow arrows, depicted in Figure 2.

Figure 2: MISCO Flowchart Notation

 Start/Finish - this symbol signifies the beginning or the end of a process or stage. Activity - represents
an activity or stage of a business process. A brief
description of the activity or stage is provided within this
symbol.
 Decision point - at the end of certain processes, decisions may have to be made. Progression to the
next stage or activity may depend on the outcome to the decision.
 Direction of flow - used to indicate the direction of data or decision flows.

The MISCO schematic is accompanied by a full narrative of the depicted stages and activities. Without
this, information and understanding may be lost. Such information would not be appropriate for
inclusion on a schematic but is invaluable for facilitating understanding of the model.

 MISCO Stages and Activities

MISCO involves a number of different stages and activities. The following section discusses
MISCO tools, techniques and guidelines appropriate for each stage and activity. Stages and
activities will be listed in desired order of execution.

 Stage 1: Recognition
In this first key activity, the organisation recognises that problems exist and these are identified.
This initial stage identifies previous and current organisational problems. Given that most business
processes can almost always be improved, identification in this first instance refers to both external
and internal pressures.

 Stage 2: IT Training and Education

The feasibility study from Stage 1 is used as a basis for identifying key areas of the organisation
where attitude, belief and value change is necessary to fully implement the system. The feasibility
study facilitates identification of the level and extent of IT training and education required. This
training and education will then be used to penetrate the organisation's "cultural barrier" (discussed
later). The research has shown that the use of an internal change agent greatly enhances acceptance
of the change programme. Stage 2 can be described as an IT preparatory stage which will be built
upon with the constructs within Stage 3.

 Stage 3: Cultural and Organisational Change

This stage consists of six steps which, if possible, should be carried out simultaneously.
 STEP 1-PS: PILOT SCHEMES

STEP 2-CM: COMMUNICATION

STEP 3-ED: EDUCATION

STEP 4-FC: FACILITATION

STEP 5-DS: DISSEMINATION

STEP 6-MN: MENTORING

 Stage 4: Acceptance
If the Analysis and Evaluation phase does not identify any inadequacies, the model moves to Stage 4
(Acceptance). This stage is reached when cultural and structural change methods have been
successfully deployed within the organisation.

 Stage 5: Stability
Having reached the Acceptance stage, re-entering the cultural barrier if necessary to resolve any
difficulties, the MISCO framework takes an evolutionary route to the Stability stage. The route to
this stage should be supported by continued mentoring and facilitation, elements already displayed
and conveyed by the change manager.

 Conclusion and Implications

Culture change is often necessary when implementing far-reaching Information Technology
programmes into SMEs. The anticpated benefits of IT implementations must be offset with the
operational-procedure changes necessary to both initially receive and successfully accommodate
the new technology. This paper has established the cultural and organisational aspects of
implementing a Management Information System into a UK-based SME, has formulated an
innovative implementation framework which such a firm could use to implement a MIS and has
analysed and considered the role and importance of management during the change process.

Organisational and cultural changes can be a key inhibitor or facilitator to successful

implementation. However, attempting to change an organisation's culture is far from easy. The
change process is riddled with a variety of challenging barriers which must be overcome in order to
change the culture. Recognising and acknowledging the existence and complexity of these
difficulties is central to the change process as, without this recognition, cultural and structural
change will meet with failure, as will the anticipated benefits of the IT implementation.

The new Model has been put forward to present novel variables regarding Organisational and
Cultural attitudes when implementing Management Information Systems. The Model requires
empirical verification and validation upon which further work can be based in order to expand on
the ideological concepts presented..The focus of this research has been on UK-based SMEs
operating in a manufacturing environment. Opportunities may exist to expand on this by applying
and refining the MISCO Model in other industries, such as service and retail, in order to form either
a generic framework or specific model for these industries. The complexity of culture has been
discussed within this paper. The applicability and validity of cultural identity and semantics results
in varying definitions of culture. It is suggested that applying the MISCO Model to companies
outside the UK (perhaps in Europe and the United States) would require a major re-evaluation of
the conceptual constructs. Immersion in and experience from these different cultures may well
result in a different MISCO Model.

It is now up to academics and IT practitioners to use the proposed MISCO Model, either in its
existing form or after modification, in order to exploit its usefulness to UK-based SMEs.

Practical-3
Aim- Case Study of DSS, its users and characteristics
Metronet Rail BCV Ltd (MRBCV)
Asset Management
Metronet Rail BCV Ltd (MRBCV) is responsible for maintaining, replacing and upgrading the
infrastructure of London Underground’s Bakerloo, Central, Waterloo & City and Victoria lines.
Tessella’s involvement in the design, development, implementation and support of a unique
decision support system has enabled Metronet to better plan investment strategies, forecast
operational efficiencies and help improve the safety and performance of one of London’s business-
critical transport networks.

Business Problem
Metronet Rail BCV is at the beginning of a 30 year contract to maintain and improve the
infrastructure assets of the Bakerloo, Central, Waterloo & City and Victoria lines. This includes 69
trains, 288km of track, 88 stations, 134 escalators, 2 travelators, 24 lifts, 307 tunnels, 1280 bridges
and structures, 29 km of embankments, as well as the signalling systems and other assets used to
provide the train service. MRBCV’s success will depend largely on how they target their
investment in maintaining and improving the assets under their control. MRBCV must ensure that
every pound spent goes where it will do most good, and there are many factors that must be taken
into account. For example, passenger safety is paramount and all assets must meet strict safety
standards. But when planning maintenance on a section of track or signals, is it better in the long
run to perform maintenance or to completely renew it? The decision will depend on many factors
such as the current condition of the asset, the cost of maintenance, the cost of replacement and the
length of time it will take to carry out the work – MRBCV has to pay penalties to London
Underground if passengers are inconvenienced and may receive bonuses if performance targets are
exceeded. When one considers the large number of signals, tracks, points, escalators etc that must
be maintained, remembering that many of these assets are suffering from the effects of years of
under-investment before MRBCV took responsibility, it is clear that identifying the best investment
plan is far from a trivial exercise.

Tessella Solution
Metronet Rail BCV decided that they needed a computer system to help their Asset Managers
develop their investment plans and as a result put a lot of effort into defining the requirements of
the desired system. There are many asset management systems on the market, but two common
problems of ‘off the shelf’ software products are:

• price (often including ongoing annual license fees)

• even the best fitting commercial product can usually meet no more than 80% of customer
requirements. Customers either have to change their business processes to fit the software, or pay
even more for the software to be customized to meet their specific needs.
Tessella offered to develop a bespoke system to meet all of MRBCV’s requirements and eliminate
ongoing license fees. Following competitive tender, MBCV awarded Tessella the contract to
develop a Decision Support System. Tessella is one of the leading software services companies in
the UK and have previously developed Decision Support Systems in other industry sectors.
Acknowledging that they are not experts in railway engineering, Tessella invited Balfour Beatty
Rail Technologies (BBRT) to join their project team. BBRT is a major UK player in railway asset
management and assisted with the capture of the user requirements to ensure that Tessella fully
understood the meaning and implications of MRBCV’s detailed requirements. The Decision
Support System allows MRBCV’s asset managers to explore the effectiveness of different
investment strategies. Assets and data about their condition, obtained automatically or through
engineer’s observations, is input into the system. The residual life of each asset is then assessed
based on this real data combined with a set of deterioration rules. The deterioration rules allow the
user to adjust the residual life of the same asset used under different conditions (location, stress,
load…etc). The rules are highly configurable and there is no limit to the number of factors that can
be considered. This enables a realistic view of current asset condition to be produced. The current
asset conditions are fed into the model, along with rules defining when maintenance / renewal
project should take place in relation to these conditions, rules detailing the effect of
maintenance/renewal projects on asset condition and detailed cost information. The modeling
engine of the Decision Support System then outputs a project schedule specifying which assets
need maintenance/renewals and when, a detailed breakdown of the cost and a prediction of the
condition of all assets throughout the investment period (this is important as the PPP contract
contains clauses on the expected condition of the assets when they are returned to London
Underground). The modeling is completely interactive, allowing a step-by-step analysis of how the
maintenance/renewal plans are generated. The system can save all scenarios and their input data so
that the models can be re-run or modified in the future. The Decision Support System helps the
asset managers to identify –and justify – the best investment strategies. The Decision Support
System was developed using C#.NET with an underlying MS/SQL Server database. It uses
ASP.NET to provide a web browser interface and is designed for use over MRBCV’s intranet.

Results and Benefits

The Decision Support System allows MRBCV’s asset managers to investigate the effectiveness of
many more investment strategies than is possible to do by hand. It also works with the latest data

describing the condition of the assets and so provides forecasts based on facts rather than estimates.
By providing a detailed cost forecast and final asset condition prediction, the system allows asset
managers to compare scenarios and justify their decisions. Once a decision is made the
maintenance / renewal schedule produced by the system can be used as the basis of the detailed
operating plans used by MRBCV’s engineers. The Decision Support System should make a
considerable contribution in helping MRBCV achieve its objectives for improving the performance
of the Underground’s engineering systems, providing value for money, minimizing disruption to
the network during maintenance work and providing a safe and efficient service for the travelling
public.

Conclusion
Decision support system like MIS, DSS as an interactive computer-based system, which helps
decision- makers utilize data ad models to solve unstructured problems, and thereafter many other
scholars have defines the concept in different ways.
 Practical-4
Aim- Study of information system and its types

An information system (IS) - or application landscape- is any combination of information

technology and people's activities using that technology to support operations, management, and
decision-making. In a very broad sense, the term information system is frequently used to refer to
the interaction between people, algorithmic processes, data and technology. In this sense, the term
is used to refer not only to the information and communication technology (ICT) an organization
uses, but also to the way in which people interact with this technology in support of business
processes. It consists of computers, instructions, stored facts, people and procedures.

ISs can be categorized in four parts:

1. Management Information System (MIS).

2. Decision Support System (DSS).
3. Executive Information System (EIS).
4. Transaction processing system (TPS).
 Management Information System (MIS)

A management information system (MIS) is a system that provides information needed to

manage organizations effectively. Management information systems involve three primary
resources: technology, information, and people. It's important to recognize that while all three
resources are key components when studying management information systems ... the most
important resource is people. Management information systems are regarded to be a subset of the
overall internal controls procedures in a business,

which cover the application of people, documents, technologies, and procedures used by
management accountants to solve business problems such as costing a product, service or a
business-wide strategy. Management information systems are distinct from regular information
systems in that they are used to analyze other information systems applied in operational activities
in the organization.

Decision Support System (DSS)

 A decision support system (DSS) is a computer-based information system that supports business
or organizational decision-making activities. DSSs serve the management, operations, and planning
levels of an organization and help to make decisions, which may be rapidly changing and not easily
specified in advance.

DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based

system intended to help decision makers compile useful information from a combination of raw
data, documents, personal knowledge, or business models to identify and solve problems and make
decisions.

Typical information that a decision support application might gather and present are:

 inventories of information assets (including legacy and relational data sources, cubes, data
warehouses, and data marts),
 comparative sales figures between one period and the next,
 projected revenue figures based on product sales assumptions.

Executive Information System (EIS)

An Executive Information System (EIS) is a type of management information system intended to

facilitate and support the information and decision-making needs of senior executives by providing
easy access to both internal and external information relevant to meeting the strategic goals of the
organization. It is commonly considered as a specialized form of a Decision Support System (DSS).

The emphasis of EIS is on graphical displays and easy-to-use user interfaces. They offer strong
reporting and drill-down capabilities. In general, EIS are enterprise-wide DSS that help top-level
executives analyze, compare, and highlight trends in important variables so that they can monitor
performance and identify opportunities and problems. EIS and data warehousing technologies are
converging in the marketplace.

Transaction processing system (TPS)

A transaction processing system is a type of information system. TPSs collect, store, modify, and
retrieve the transactions of an organization. A transaction is an event that generates or modifies data
that is eventually stored in an information system. To be considered a transaction processing
system the computer must pass the ACID test. The essence of a transaction program is that it
manages data that must be left in a consistent state. E.g. if an electronic payment is made, the
amount must be both withdrawn from one account and added to the other; it cannot complete only
one of those steps. Either both must occur, or neither. In case of a failure preventing transaction
completion, the partially executed transaction must be 'rolled back' by the TPS. While this type of
integrity must be provided also for batch transaction processing, it is particularly important for
online processing: if e.g. an airline seat reservation system is accessed by multiple operators, after
an empty seat inquiry, the seat reservation data must be locked until the reservation is made,
otherwise another user may get the impression a seat is still free while it is actually being booked at
the time. Without proper transaction monitoring, double bookings may occur.

Conclusion
Information and information systems in organization faced a revolutionary change in the last few
decades. Today, many organizations are using information and information system as a tool for
gaining competitive advantage.

Practical-5

Aim- Study of GDSS and its possible configuration

GDSS: Group Decision Support Systems

Introduction

The traditional oral meetings may involve the joint activity of between 5 to 20
individuals in one place. The status of people may be of equal or near equal status. Each
individual may have knowledge of a product, or form opinions and judgments of other
participants. These differences in opinion will need to be settled. The results from the
meetings may lead to action. The group activities may result in the retrieving/generation
information, sharing of information among members, drafting policies and procedures,
and using information to reach decision.

However, some of the members may be in remote areas; hence a same place and real
time meeting may require additional time and costs for all members to be present. In
 most of the meetings, they usually start with "a formal agenda, but if someone goes on a
digression, and someone usually does, it can be difficult to get back on track and keep
the discussion focused (Druckenmiller, 1991). It can be a problem if one individual
starts to take control of the meeting. Most of times, the person may not be aware that
their actions may influence an opinion about how things should be done. Resultantly,
new technology emerged in late 1980 s that suppose to answer to this problem.

Introduction of GDSS

The new technology that emerged was the Group Decision Support Systems, (GDSS)
concept is any system designed to help decision-making groups reach a decision. It
enables members to reach a decision faster, to reach better decisions, and to save the
costs of meetings by allowing remote users to hold a "virtual" meeting. There are four
common group tasks that GDSS may help in solving:
1) Idea Generation,
2) Problem Solving,
3) Consensus Building, and
4) Negotiation.
Group Support Systems (GSS) are a broader category, intended to support groups engaged

in a wider range of tasks than just decision- making (Group Decision Support Systems).
A GDSS consists of software, hardware, and language components and
procedures that support a group of people connected together over a Local Area Network
(LAN) or Wide Area Network (WAN) for the purpose of group collaboration and
decision-making. GDSS is an interactive, computer-based system which facilitates the
solution of unstructured problems by a set of decision makers working together as a
group. There are some roles consistent with an unbiased facilitator who runs the
meeting, and the GDSS itself. A GDSS was developed to enhance group synergies and
reduce group losses. Some of the more common group losses are Group Think,
Production Blocking, and Information Losses.

 Group Think: in which one of the more outspoken members, or a person with authority,
proposes a solution, and everyone accedes without adequate debate.
 Production Blocking: in which people with information to impart have to wait so long
for their turn to present that they somehow fail to present their information, either
because they forget, or for other reasons.
 Information Losses: in which the information discussed in the meeting is not recorded
in its entirety, or is recorded incorrectly.

Case of GDSS implementation

(Aiken et al., 1995; Jackson et al., 1995) is IBMs deployment of GDSS:

A plant manager was having trouble identifying problems hindering shop- floor control.
His subordinates seemed unable to isolate causes of the problem. A two hour meeting of
six key plant personnel had resulted in a number of arguments but no solutions to the
problem. The manager decided to use TeamFocus to find the problems and develop a
plan of action to improve the shop-floor control process. Ten employees were invited to
join the manager and two junior analysts to investigate the problem. The participants
used the Electronic Brainstorming program for 35 minutes and generated 645 lines of
comments about improving shop- floor control. For the first time, the manager was able
to get concrete, meaningful answers to questions associated with shop floor control
problem. Next, they used Issue Analyzer for 30 minutes to identify major issues related
to shop- floor control. In the following 45 minutes, the 645 lines of comments were
organized into the identified key categories. Then each group member used the Vote
program to rank the requirements based on importance to improved shop floor control.

The accumulated results were displayed to the group, and, after 10 minutes of
discussion, the meeting was concluded. In a little more than two hours the manager had
a printout of all of the groups comments and a consolidated list of requirements that
were prioritized by the groups vote. This successful IBM experience yields the following
observations:
1. GDSS is more effective than face-to-face (FTF) discussion. FTF resulted in no
solutions while GDSS did.
2. GDSS is more timesaving. In a little more than 2 hours, the manager had hundreds of
suggestions and comments that were rated and ordered while FTF used the same
amount of time but generated nothing specific and useful.
3. The quality of decisions generated through GDSS is better than that generated from
FTF discussion.

Conclusion
GDSS focus the efforts of group members toward the task, or problem to be solved by the group.
GDSS increase the overall quality of effort put in the decision process by the group. GDSS
increase consensus reaching.

Practical-6

Aim- Study of ERP and its applications

The elaboration of ERP is Enterprise Resource Planning. It is a way to integrate the data and
processes of an organization into one single system. Usually ERP systems will have many
components including hardware, software, their combination in order to achieve integration, most
ERP systems use a unified database to store data for various functions found throughout the
Orgnasation.
The term ERP originally referred to how a large organization planned to use organizational wide
resources. A few days ago ERP systems were used in larger more industrial types of companies.
However, the use of ERP has changed and is extremely comprehensive, today the term can refer to
any type of company, no matter what industry it falls in. In fact, ERP systems are used in almost
any type of organization - large or small.

In order for a software system to be considered ERP, it must provide an organization with
functionality for two or more systems. While some ERP packages exist that only cover two
functions for an organization such as QuickBooks: Payroll & Accounting etc, most ERP systems
cover several functions.

In present ERP systems can cover a wide range of functions and integrate them into one unified
database. For example, functions such as Human Resources, Supply Chain Management, Customer
Relations Management, Financials, Manufacturing functions and Warehouse Management
functions were all once stand alone software applications, usually housed with their own database
and network.

Integration is required Key to ERP

Integration is an most important part to ERP's. ERP's main objective is to integrate data and
processes from all areas of an organization and unify it for easy access and work flow. ERP's
usually accomplish integration by building one single database that employs multiple software
modules providing different areas of an organization with various business functions.
However the expert configuration would be one ERP system for an entire organization, many larger
organizations usually create and ERP system and then build upon the system and external interface
for other stand alone systems which might be more powerful and perform better in fulfilling an
organizations needs. Usually this type of configuration can be time consuming and does require lots
of labor hours.

The Expert ERP System

An expert ERP system is when a single database is utilized and contains all data for various
software modules. These software modules can include:

 Manufacturing: Some of the functions include; engineering, capacity, workflow

management, quality control, bills of material, manufacturing process, etc.

 Financials: Accounts payable, accounts receivable, fixed assets, general ledger and cash
management, etc.

 Human Resources: Benefits, training, payroll, time and attendance, etc

 Supply Chain Management: Inventory, supply chain planning, supplier scheduling, claim
processing, order entry, purchasing, etc.

 Projects: Costing, billing, activity management, time and expense, etc.

 Customer Relationship Management: sales and marketing, service, commissions,

customer contact, calls center support, etc.

 Data Warehouse: Usually this is a module that can be accessed by an organizations

customers, suppliers and employees.

Practical-7

Aim- Study of information parameters

(Age, Quality and Value)
Age of information
The information age, also commonly known as the computer age or information era, is an idea
that the current age will be characterized by the ability of individuals to transfer information freely,
and to have instant access to knowledge that would have been difficult or impossible to find
previously. The idea is linked to the concept of a digital age or digital revolution, and carries the
ramifications of a shift from traditional industry that the industrial revolution brought through
industrialization, to an economy based on the manipulation of information.
The information age has impacted the workforce in several ways. First, it has created a situation in
which workers who perform tasks which are easily automated are being forced to find work which
involves tasks that are not easily automated. Second, workers are being to forced to compete in a
global job market. This creates problems for workers in industrial societies.
This has had several major consequences:
 Growing income inequality in industrial countries
 Increased opportunity in developing countries
 The globalization of the workforce

Information quality
Information quality (IQ) is a term to describe the quality of the content of information systems. It is
often pragmatically defined as: "The fitness for use of the information provided."

"Information quality" is a measure of the value which the information provides to the user of that
information. "Quality" is often perceived as subjective and the quality of information can then
vary among users and among uses of the information. Nevertheless, a high degree of quality
increases its objectivity or at least the intersubjectivity. Accuracy can be seen as just one element
of IQ but, depending upon how it is defined, can also be seen as encompassing many other
dimensions of quality.

If not, it is perceived that often there is a trade-off between accuracy and other dimensions,
aspects or elements of the information determining its suitability for any given tasks. A list of
dimensions or elements used in assessing subjective Information Quality is:

 Intrinsic IQ: Accuracy, Objectivity, Believability, Reputation

 Contextual IQ: Relevancy, Value-Added, Timeliness, Completeness, Amount of information
 Representational IQ: Interpretability, Ease of understanding, Concise representation, Consistent
representation
 Accessibility IQ: Accessibility, Access security

Value of Information
Information has a great impact on decision making, and hence its value is closely tied to the
decisions that result from its use. Information does not have an absolute universal value. Its value is
related to those who use it, when it is used, and in what situation it is used. In this sense,
information is similar to other commodities. For example, the value of a glass of water is different
for someone who has lost his way in Arctic glaciers than it is to a wanderer in the Sahara Desert.

Economists distinguish value from cost or price of a commodity incurred to produce or procure the
commodity. Obviously, the value of a product must be higher than its cost or price for it to be cost-
effective.

The concept of normative value of information has been developed by economists and statisticians
and is derived from decision theory. The basic premise of the theory is that we always have some
preliminary knowledge about the occurrence of events that are relevant to our decisions. Additional
information might modify our view of the occurrence probabilities and consequently change our
decision and the expected payoff from the decision. The value of additional information is, hence,
the difference in expected payoff obtained by reduced uncertainty about the future event.

Information supports decisions, decisions trigger actions, and actions affect the achievements or
performance of the organization. If we can measure the differences in performance, we can trace
the impact of information, provided that the measurements are carefully performed, the
relationships among variables are well defined, and possible effects of irrelevant factors are
isolated. The measured difference in performance due to informational factors is called the realistic
value or revealed value of information.

Practical-8

Aim- Study of ERP and its applications

Case study of ERP marketing and implementation
( For a leading manufacturing company- Embee Software Pvt. Ltd)
 Company overview:
Our client belongs to the manufacturing industry standing as one of the fastest growing
organizations in the Kolhapur region. There major Products are Manufacturing Graded Cast Iron
and S.G. Iron Automotive Components, Casting, pattern Design, Engineering and Manufacture.
With the strength of over a 100 in their workforce, our customer required software to integrate its
business activities and gain efficiency internally.
Business challenges:
 Streamline business processes and adopt best practices.
 Better quality reporting to enable intelligent business decisions.
 Improve information sharing within and outside the company leading to ambiguous data
 Unreliability of data due to manual processing
 Need more security with more control points
 Compiling and analyzing profitability of each order.
 Finance and HR operations were not integrated

Technology Challenges
 Inventory Management and control over stock movement
 Vendor performance management
 Production planning
 Availability of data
 System not scalable

Solutions and Services:

After understanding our client’s requirements the Embee team narrowed down to the proposal and
implementation of SAP B1 as the most suitable solution.
 Embee deployed its skilled staff for the implementation of the international best practice and
successfully completed the project within its time frame.
 Through this solution the client was able to implement business processes such as the Account
payable , Account receivable , financial and Human Resource processes within the organization .
 Team Embee has developed components to achieve collaboration and integration with customer
and vendor.
 This solution proposed by Embee enabled the client to integrate all its departments on a common
platform and minimized the probability of mis-communication and reduced the time for decision
making .
 Result :
Some of the results witnessed through the implementation of this solution are listed below:
 There was a control on inventory.
 The production was streamlined
 Using the accounting function the user can performs the activities of profit center accounting
,project accounting ,product cost accounting .
 Better management reporting has been witnessed.
 Good amount of customization for better controlling.
 Integrate all business process into a single system .
 Easily accessible real-time information.

Business Benefits:
Some of the benefits exercised by the client post the implementation of the ERP system SAP B1
suggested by
Embee Software are:

 The seamless integration of all business processes across the company directly results in a
reduction of operational costs and manual intervention
 One integrated, comprehensive solution.
 Streamlined business processes for increased efficiency.
 Reduction in production costs.
 Easy access to information across the company.
 Better costing and process integration
 Improved inventory turnover and optimised working
 Manual entries of data has been eliminated, reducing redundancy