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MANAGEMENT

INFORMATION SYSTEM:
COURSE OVERVIEW

PRM-42
Instructor : H K Misra/ K Anjaria
AGENDA Pedagogy
SESSION-1, MIS, PRM-42
HOW TO PROCEED?
Text Book is the main source;
 Please keep your text book by your side when the session is in
progress.
Text Book supplied to you provides explanations to the topics and
it guides; do not forget to go through the reference books
Classes would focus on concepts
Cases drawn for the course aim to understand application of
concepts
CR of the batch will deal with common issues and administration of
course for each section they represent.
Ms. Hillary, AA will be the point of contact for the course related
activities/issues.

SESSION-1, MIS, PRM-42


HOW TO PROCEED?
Text Book is used progressively chapter wise
Shall use MIS Book – Laudon and Laudon….
The Reference Book
Follow the session plan as mentioned in TAU
material
TAU material has some additional readings,
cases and “Demo” instructions.
 Demo will be discussed in the class for reference and
appreciation of concept

SESSION-1, MIS, PRM-42


EVALUATION

Four Quizzes: 30 Percent


No make up quizzes for absentees – no
requests please…..
Mid Term: 20 Percent (Closed Book)
End Term: 30 Percent (Open Book)
Group Tasks: 20 Percent
 Three in each group-maximum
Assignment-I: 10%
Assignment-II: 10%

SESSION-1, MIS, PRM-42


Introduction
AGENDA
to MIS
SESSION-1, MIS, PRM-42
INTRODUCTION TO MIS COURSE
Pre-requisites
Computing skills will hasten the process of
understanding – but is not essential
Note of Caution
It is not a programming course
Many students may feel that they are aware of many
concepts being discussed / they are experienced and
thus the course is trivial in nature
 In this case please support the instructor in handling the class and
empathize with peers
 Lead the discussions
SESSION-1, MIS, PRM-42
COURSE ORGANIZATION
Segment-I
 Understand Organizations
 Business and Development Orientation
 Management and Controls
 What is so common in Business and Development
Organizations? – Systems’ viewpoints
Segment-II & III
 Systems Approach to Organizations, Systems Thinking
 Data Management Principles
 Concepts of Information Systems, Design and
Development; Systems Development Life Cycles
 MIS Architecture and Model

SESSION-1, MIS, PRM-42


COURSE ORGANIZATION
Segment- IV
 IT Infrastructure Planning
 Databases
 Networks
Segment - V
 Concepts of MIS
 MIS and Technology Barriers
 Forms of MIS: ERP, Expert Systems,
Decision Support Systems
 Architectural Principles and MIS

SESSION-1, MIS, PRM-42


MIS IS INTERDISCIPLINARY
Shift in traditional thinking
 From ICT Focus to interdisciplinary
focus
 Includes issues related to
organization, management,
technology, and social dimensions
 Holistic views of organization

Disciplines involved in
contemporary MIS
 Computer Science
 OB / HR, Economics, Mathematics,
Statistics,
 Sociology, Psychology

SESSION-1, MIS, PRM-42


HOW MIS CAN BE DESCRIBED?
Multidisciplinary approach
in an Organization to
address decision
challenges at all levels
 Strategic
 Tactical
 Operational

Manage Information
 Gather, store, process and use
 Induce appropriate
technologies

SESSION-1, MIS, PRM-42


MIS AND SYSTEMS APPROACH

MIS is largely supported by Systems Theory


Systems Theory argues in favour of
 Systems Thinking (Holistic)
 Do not miss the “Forest” for “Trees” (Holistic Approach)
 Relate to the environment
 Cause-Effect principles

Systems Theory has supported in emergence of


 ERP
 E-Commerce/ E-Business
 Web 4.0; Industry 4.0 and beyond
SESSION-1, MIS, PRM-42
MIS DESIGN
MIS is organization specific
Organizations – they deal with
 People, Process and Technology
 Market

Organization’s need
 Systematic measurements (Internal Controls ….)
 Systemic interfaces with market for management of resources
(factors of production…) and to sustain in the market
 Products and services
 Innovations and Benchmarks

SESSION-1, MIS, PRM-42


WHY STUDY MIS?
It deals with Information Systems
 Processes, operations, strategy
 Integration of computer systems with organization objectives

It helps in
 Providing Structured-ness in the organization (systematic)
 Dealing with Systemic Issues
 Identifying possible areas for IT intervention

It identifies “Barriers” in introducing IT (may not directly discuss IT management)


Barriers Barriers
Organization Information Information
Systems Technology

SESSION-1, MIS, PRM-42


HOW IS THE COURSE PLANNED?
Barriers Barriers
Organization Information Information
Systems Technology
Segment-I Segment-II & III Segment-IV
Chapters

1-3

Organization Information Systems Technology


Structure Infrastructure Infrastructure
Structure
Chapters
Chapters
4-8
12-14
Organization MIS Technology

Architecture Architecture Architecture

Chapters

9-11
Organization MIS Model IT Model

Model

35% 45% 20%


Segment V: MIS Plan (15-16)

SESSION-1, MIS, PRM-42


UNDERSTANDING BUSINESS
ORGANIZATIONS CHAPTER-1

(MIS PERSPECTIVE)
UNDERSTANDING ORGANIZATIONS FOR MIS
Organizations
 are Complex
 structures, market links,
financing etc..
 have Life Cycles
 do have human elements

Organizations evolve
out of
 Social factors
 Economic compulsions

SESSION-1, MIS, PRM-42


UNDERSTANDING ORGANIZATIONS FOR MIS
Organizations
evolve out of collective advantages
Go beyond individuals
Sharing returns
Managing complex situations in groups
Assure protection of common
interests / objectives / goals
have advantages of domain expertise
Enhancement of productivity / quality
SESSION-1, MIS, PRM-42
EVOLUTIONS IN ORGANIZATIONS
Sl.No. Classic Organization (Pre-1945AD) Post Modern Era (post 1945AD)
1. Centralized Decentralized
2. Hierarchical Inter-functional
3. Command and control Facilitating and empowered
4. Traditional system and process a) Technology mediation
b) Knowledge influenced systems
and processes
5. Factor of production centric Economy of complementarities and
post modernism
6. Localizing focus Globalization
7. Individualized economic focus Networks and socially embedded
8. Product orientation Market orientation
9. Mass production Mass customization
10. Process specific Innovation orientation

SESSION-1, MIS, PRM-42


SYSTEMIC VIEWS: POST MODERN ERA
In Post-Modern Era
More uncertain market
High entry barriers
There Is No Alternative “TINA”
 Adjustments to Organization Structure (functional, divisional,
matrix..)
 Fit between form of organization and performance
 CSR
 diversifications, acquisitions, mergers
 Induction of IT
 BPR / Supply Chains
 Value Additions
SESSION-1, MIS, PRM-42
EXISTENCE OF ORGANIZATIONS
Society and Organizations - Co-existence is the IDEAL
situation
 They need groups
 They resolve conflicts
 They deal with individuals
Organizations harness
 Collective power
 Stakeholders / stock holders
 Manage economies of scale and integration

SESSION-1, MIS, PRM-42


EXISTENCE OF ORGANIZATIONS
Organizational existence is
influenced by
 Motivation of individuals
 Futuristic visions
 Availability of resources
 Power to address uncertainties

Organization's existence is
a continuous phenomenon
and it needs
 dynamic capabilities
 to manage events quickly to Systems approach includes these attributes through
come to steady state Life Cycle Studies

SESSION-1, MIS, PRM-42


LIFE CYCLE MANAGEMENT (LCM) IN ORGANIZATIONS

LCM
is an integrated framework covering
performance of goods and services towards
more sustainable forms of production and
consumption.
Comprises
analyses (analytical tools, checklists, methods and
techniques)
practice (policy, procedural tools)
proactive management of economic, social and
environmental performance
SESSION-1, MIS, PRM-42
ORGANIZATIONAL EXISTENCE AND LIFE CYCLES

Stage of life Organizational Issues Information Strategies


Cycle
Inception Understanding the market Business Intelligence for
identification of products, services,
Providing Structure processes and measurements
Growth Resource Management, Control Enterprise information and retrieval
over Cost, Margin and Market
Share
Maturity Formalization of Standard Empowering individuals with
Operating Procedures and benchmarks on productivity,
Deliverables; Benchmarking customer and market orientation
Performance
Decline Market Behaviour, Adaptation to Restructuring information
internal and external pressure, management principles to align with
Liability of complacency market requirements and inception
phase begins

(Across all these stages, information management is unique in nature)


SESSION-1, MIS, PRM-42
MANAGING ORGANIZATIONAL CONTINUITY

Continuity is influenced by life cycles of


Products
Processes
Organization structures
Systems
Information……

SESSION-1, MIS, PRM-42


WHAT SHOULD BE DONE FOR ORGANIZATIONAL
CONTINUITY??

Manage Information
Market oriented decisions and process re-engineering
Benchmarks – sector specific
Employee motivation
Habit to learn from failures
I (information) = i(D, S, t)
i- interpretation
D- Data,
S-Pre-Knowledge --- this needs expertise…
t- time
SESSION-1, MIS, PRM-42
INFORMATION BARRIERS FOR
ORGANIZATIONAL LIFE CYCLE(OLC)
Inception Growth Maturity Decline

Decision/ Information Barriers


•How to establish shared •How to maintain •How to build trust and
vision among employees? effective supply chain? transparency in the
•How to manage influence of •How to create and retain supply chain?
regulating authority? market leadership? •How to manage
•How to identify market •How to maintain competition?
drivers? information symmetry? •How to innovate?
•How to establish standards
across organization

SESSION-1, MIS, PRM-42


PRODUCT LIFE CYCLE MANAGEMENT (PLC)
Stage of PLC Organizational Issues Information Imperatives
Development Make your product known Information sharing through web
and establish a test period technologies; Computer aided modelling,
design and engineering

Introduction Acquire a strong market E-Commerce, E-Cataloguing, E-


position Business, Machine Learning
Growth Maintain your market Click-n-Mortar Services, e-Supply Chain
position and build on it (Lean)
Maturity Defend market position from Decision Support Systems for competitor
competitors and improve analyses on pricing and Market
your product Behaviour through data warehousing and
mining, Business Analytics
Decline Product innovation and Customer interfaces through e-
improvement commerce activities as explained in
stage-I. Processing of information
gathered through all the previous stages
for effective modelling and decision
making
SESSION-1, MIS, PRM-42
INFORMATION BARRIERS FOR PLC
Development Introduction Growth Maturity Decline

Decision/ Information Barriers

•What to produce? • When to • Who should • How to maintain market


introduce? collaborate for supply share?
•What the product chain?
should deliver? •How much to •How to innovate for
produce? •How to build trust and
•For whom should it be transparency in the •Better quality of
produced? •What price supply chain? service?
should it have?
•Is there any •How to manage •Customer
competition? •How should it be competition? satisfaction?
produced?
•How to innovate? •Process
improvement?

SESSION-1, MIS, PRM-42


PROCESS LIFE CYCLE MANAGEMENT
Process precedes information
Three Pillars of Organization
People
Process
Technology
Process is influenced by
People (ownerships)
Technology (improvements)
Process should not be a “black box”. It should work on standards,
mature to be transparent and measurable
SESSION-1, MIS, PRM-42
LIFE CYCLES OF ORGANIZATION STRUCTURE
Organizations build their own structure for
Role Clarity
Accountability
Decision Making
Mintzberg said that
 Managers are information processors
There needs to be standardization in information flow
Structural changes are due to external influencers and
internal competencies
SESSION-1, MIS, PRM-42
LIFE CYCLES OF SYSTEMS IN ORGANIZATIONS
Systems in organization work on
General Systems Theory
 Reductionist Approach (Complex problems can be reduced to
smellers ones and relate each smaller ones to the whole.
 Argues in favour of Organic systems (Dynamic) instead of
Mechanistic systems (Formalized) More discussions in later
chapters
Cybernetics
 Feedback loop to attain steady state through corrective action
Systems Thinking
 Non-linearity in predictions
SESSION-1, MIS, PRM-42
LIFE CYCLES OF SYSTEMS IN ORGANIZATIONS

Systems Life Cycle is influenced by


Structural changes
Leadership changes
Technologies adopted to manage systems
Products used for systems
Services generated (outsourcing?)

SESSION-1, MIS, PRM-42


MANAGING STEADY STATE IN OLC

Steady State across all decision


points….
Budget and variances
 Cost
 Margin
 Volume / Turnover

Reference Points
Standards
Benchmarks
SESSION-1, MIS, PRM-42
FOR YOUR ATTENTION…………

Go through first TWO articles in


TAU titled
Difference between IS,CS,IT
 “Information Systems Engineering: What is
it?”

SESSION-1, MIS, PRM-42


Understanding
Organizations
(Business & Development)
Development Organizations

Session-3, chapter-2-MIS, PRM 42 2


Development Measures through Growth
◼ Development brings in change:
❑ qualitative, innovative,
❑ multi-dimensional, discontinuous,
❑ irreversible, non-elastic
◼ Development is non-linear
◼ Growth is
❑ elastic, linear, continuous, reversible
◼ However, growth is part of development
process

Session-3, chapter-2-MIS, PRM 42 3


Understanding Development

Total Demand = ∑ ∑deconomic + ∑ dsocial + ∑decological


Session-3, chapter-2-MIS, PRM 42 4
Understanding Development Organizations

◼ Development Organizations
❑ relate to Society in terms of
◼ poverty,
◼ environmental sustainability ,

◼ bringing synergies among different


agencies.
❑ More concerned with
◼ Quantity and quality in development
(What about Business Organizations?)

Session-3, chapter-2-MIS, PRM 42 5


Understanding Development Organizations
◼ Technology can change the type of
organization
❑ Example
◼ free-to-air channel to a paid channel for TV broadcasting
(Changes from public good to club good)
◼ paid toll-booths in highways/expressways

(Changes from public good to club good)


◼ Today we have the possibilities of “Hybrid”
organizations

Session-3, chapter-2-MIS, PRM 42 6


Understanding Development Organizations

◼ Development Organizations need to ensure


development of
❑ Individuals
❑ Communities
❑ Environment
◼ Development needs to be sustainable in
terms of
❑ Economic
❑ Social
❑ Environmental

Session-3, chapter-2-MIS, PRM 42 7


Development Triggers - Growth
◼ Business recognizes growth as an indicator
❑ Growth is measured by
◼ labour force, capital, volume of trade and consumption
◼ Development is measured by factors of
growth:
Development:
❑ production techniques, Identify the “latent” and make it active
❑ administrative systems,
❑ economic policy,
❑ social values
❑ Empowerment

Session-3, chapter-2-MIS, PRM 42 8


Understanding Development Organizations

◼ Life Cycles of Development Organizations


are influenced by life cycles of
❑ Individuals
❑ Communities

❑ Society

(What about Business Organizations?)

Session-3, chapter-2-MIS, PRM 42 9


Single System of Interface for Development

Session-3, chapter-2-MIS, PRM 42 10


Dual System of Interface for Development

Session-3, chapter-2-MIS, PRM 42 11


Life Cycle of Development Organizations

1. People come together


with a common motive
2. Growth, but lack of trust
3. Growth with trust
4. Maturity with trust
5. Complacency affecting trust
6. Decline
7. Dead

Session-3, chapter-2-MIS, PRM 42 12


CASES

◼ Case on (Refer the Text Book)


❑ Convenience store (single system – Business /
Commerce)
❑ First generation development organization (single
system)
❑ Case on NGO (dual system)

Session-3, chapter-2-MIS, PRM 42 13


ORGANIZATIONAL MANAGEMENT &
CONTROL
(BUSINESS VS. DEVELOPMENT
ORGANIZATIONS )
Session - 3
ORGANIZATIONAL DECISIONS

Decision Style Rationale for Decision Styles


Reactive Collaborative Resolutions
Explicit and Tacit Knowledge based Problem Solving tools – Structured
Approaches
Preventive Intelligence Gathering through information retrieval techniques and
searches for best practices
Designed parametric evaluation mechanisms through benchmarking,
Structured Approaches to Problems
preparing choices and alternatives with explicit and tacit knowledge

Proactive Intelligence Gathering through information retrieval techniques and


searches for best practices
Infusing Systems Thinking
Probabilistic Decision Modelling for managing uncertainty, Unstructured
Environment
2

SESSION-3, CHAPTER-3-MIS, PRM 42


ORGANIZATIONAL DECISIONS
 Decisions are also quantitative and qualitative
 Quantifiable decisions can be
 Routine
 Hierarchical

 Qualitative decisions are mostly


 Modelled (strategic)
 Based on tacit knowledge
 Based on knowledge repositories (Pattern analyses)

SESSION-3, CHAPTER-3-MIS, PRM 42


ORGANIZATIONAL CONTROLS
(MINTZBERG MODEL)

*Five Basic Parts


*Assign Responsibility
*Create Coordination
Mechanism
*Standardize Work
*Standardize Output
*Managers are Information
Processors
*Information Flows as per
Hierarchy
*Information Sharing is
also needed

SESSION-3, CHAPTER-3-MIS, PRM 42


ORGANIZATIONAL CONTROLS
(INFORMATION BASED)
Organization Structure Representation Effects on Managing Information
Types
(Example: HH Enterprises) Information is centralized. Roles are reactive
Simple Structures Support Staff Techno-structure in nature since few people control information.
(Stress on MIS is high)
Information Management is domain specific.
(Example: Collector’s Office) Information remains in islands leaving scope
Machine Bureaucracy to integrate. But the strength in this structure
is that standards emerge with clarity. Roles
Support Staff Techno-structure are well clarified.
(Stress on MIS is the Least)
Each individual remains in isolation since they
(Example: A Consulting Organization) are experts by themselves. Information flow is
Professional very seldom in nature. Support staff are
Bureaucracy marginalized since their work is minimal in
managing information. (Stress on MIS is high)
Each division is a replica of the organization.
(Example: A Group Company-Conglomerate) Information flow across divisions is minimal.
Divisionalized But upward movement to apex in the
(Heterogeneous organization is very frequent. Each division
Products/Services) may have independent task to perform.
(Stress on MIS is Low)
This is complex since knowledge is the main
(Example: Cooperatives
Adhocracy issue. Information remains secondary and
supportive in nature. Knowledge workers5 are
(entrepreneurial, with a focus on the main employees and are mobile. (Multiple
risk-taking, innovation, and “doing structures Emerge to define Organization)
things first”) (Stress on MIS is high)
ORGANIZATIONAL ARRANGEMENT & DECISION
STYLE

 Approaches
(1) Resource Based Views (RBV) – Internal Capabilities
 Cost leadership
 Resource utilization (optimized)
 Internal resource adjustments keeping in view the external influences
 Should identify core-competencies (cannot be copied by others!!!!)

CONTROL: Around Cost

SESSION-3, CHAPTER-3-MIS, PRM 42 6


ORGANIZATIONAL ARRANGEMENT &
DECISION STYLE
*complementary to RBV
(2) Porter’s Five *coordinates among buyers,
Forces Model suppliers
*need to align external forces
And internal capabilities

CONTROL:
• No Control on Competitors
• Least on Buyers
• Moderate on Suppliers
YET decisions are to be taken
SESSION-3, CHAPTER-3-MIS, PRM 42 7
ORGANIZATIONAL ARRANGEMENT & DECISION
STYLE

(3) Chaos Theory CONTROLS:


 Organizations are influenced by structural changes Decisions on
Structural life cycle
 Too many frequent changes in structures create “Chaos”
 Decision styles are influenced as discussed in Mintzberg’s Theory
 Technology can play a major role to virtually manage roles and
responsibilities if standardization emerges
(4) Micro-economic Theory CONTROL:
• Audits on
 Information is factor of production
Information
 Total productivity can influence organizational existence flow/loss
• Audits on
SESSION-3, CHAPTER-3-MIS, PRM 42
Performance 8
ORGANIZATIONAL ARRANGEMENT & DECISION
STYLE

(5) Transaction Cost Theory


CONTROLS:
 Generically transaction cost increases with transactions • Track points of
 Technology induction can optimize cost of transaction services/ Cost

 Internal and External interfaces

(6) Agency Theory


 Cost of coordination among “Agents” can be optimized with technology
induction
 Cost can be a dampening factor in the chain if transparency is not pursued
 Technology can be a prime mover in this situation
(Example: IT enabled Supply Chains) CONTROLS:
• Decisions on 9

SESSION-3, CHAPTER-3-MIS, PRM 42 Agency Cost/ Opportunity Cost


ORGANIZATIONAL ARRANGEMENT & DECISION
STYLE

(7) Network Theory CONTROLS:


• Decisions on COST of
 Collaborations / Agent-based Network systems
networks
(8) Contingency Theory
 There is nothing called the best, but OPTIMIZED solution
CONTROLS:
• Decisions on
 Organizations need to be dynamic/adaptive Opportunity Costs
(9) Organizations can pursue
 Creative destruction (New Products destroy the old ones --- Hand Pulled Rickshaw Vs.
Mechanized)
 Innovative product cycles with upward mobility
CONTROLS:
• Decisions on Prod.
 Destructive creation
LC/Proc. LC
 Defense Production leading to destructive situations, but organization thrives
SESSION-3, CHAPTER-3-MIS, PRM 42 10
DISTINGUISHING FEATURES OF BUSINESS
AND DEVELOPMENT ORGANIZATIONS

 Can these organizations follow similar


 Structures?
 Processes?
 Standards in roles, accountability?
 Life cycles?
 Decisions?
SESSION-3, CHAPTER-3-MIS, PRM 42 11
DISTINGUISHING FEATURES OF BUSINESS
AND DEVELOPMENT ORGANIZATIONS
Interfaces with External Environment like Vendors, Stock Holders

Traditional Organization Domains What would happen

Interfaces with External Environment like Customers, Market


if development
Accounts Human
Operations organizations adopt
this view?
Finance Production Marketing Sales Materials and
and Costing Resource
Maintenance

Process Process Process Process Process Process Process Process


#11-1n #21-2n #31-3n #41-4n #51-5n #61-6n #71-7n #81-8n

Domain Specific Information Systems

Operations
Accounts Human
Finance Production Marketing Sales Materials and
and Costing Resource
Maintenance

SESSION-3, CHAPTER-3-MIS, PRM 42


Traditional View of Processes 12
DISTINGUISHING FEATURES OF BUSINESS AND
DEVELOPMENT ORGANIZATIONS
What would happen
if development
organizations adopt
this view?

Traditional View of Organization


SESSION-3, CHAPTER-3-MIS, PRM 42 13
Functional Orientation

Products and services


BUSINESS AND
DEVELOPMENT
Organization structures influence business ORGANIZATIONS
COMMON
ORIENTATION
Organization and economic theories are
applicable

P&L account and EPS are used as


measurement tools

SESSION-3, CHAPTER-3-MIS, PRM 42 14


DISTINGUISHING FEATURES OF BUSINESS AND
DEVELOPMENT ORGANIZATIONS

 Business  Development
 Commercially focused  May not be
 For-Profit is the core commercially viable
value, CSR (has dual (for intermediaries)
systems but independent )  Not-for-profit is the
core, also needs
returns on investment
(Dual systems)
SESSION-3, CHAPTER-3-MIS, PRM 42 15
DISTINGUISHING FEATURES OF BUSINESS AND
DEVELOPMENT ORGANIZATIONS

 Business  Development
 Measurements and controls  Certain forms need measurements
are in economic terms and controls are mostly in intangible
 Stock holders are interested in terms
investments  Stock holders are part of management
 Under Companies Act  Legal forms are many like societies
act, cooperative act, PC act
 Unified effort to maximize
profit despite having multiple  Faces challenges to identify core
products and services competencies to manage their
organizations (Unification may not
work)

SESSION-3, CHAPTER-3-MIS, PRM 42 16


Systems Approach
to Organizations
SEGMENT-II
CHAPTER-4
What MIS attempts do?
Barriers
Barriers

Organization Systems Technology

Understand, organize and address barriers

CHAPTER-4-MIS-PRM42
General Systems Theory
Organizational MIS
Across Functions…
(Systemic)

Organization as systems!! Strategic….


 Systemic Views
Organization

 Systematic Views Tactical…


Function..1 Function..n

What is a System? Operational… Process..1 Process..n

 Is an association of some
components (Do organizations have Transactions… Transaction..1 Transaction..n

components?)
 Has goal/objectives (Do organizations
have components?)
 Has control mechanism (organization
also needs controls on resources!!) Function specific System of
MIS (Systematic)

CHAPTER-4-MIS-PRM42
General Systems Theory

 What is a System?
System needs a structure to relate its
components (organization also has structure)
System’s components:
Input (organizational resources and environment)
Process (organizational structures and operating
procedures)
Output (organizational steady state)

CHAPTER-4-MIS-PRM42
Organization and Systems – The Link

Organizational Organizational Organizational


Organization
can be treated
Resources Structures Performance
Organization Purview as a “system”
RBV

Organizational Organizational Organizational


Memory
Inputs Processes
Systems Purview
Market

Environmental Organizational Organizational


Inputs Feedback Steady State
Organization Purview

CHAPTER-4-MIS-PRM42
Systems
Approach

CHAPTER-4-MIS-PRM42
Systems Approach
Systems have components
Components need to interact
N= n(n-1)/2
N->no. of interconnections, n-> components
Two ways for systems approach
◦ Functional Approach (it uses Mintzberg model with functions as inputs)
◦ Traditional Approach (Table 4.1)
◦ Mechanistic systems
◦ Organic systems

CHAPTER-4-MIS-PRM42
Functional Approach
Function: Layers:
*Domain Specific *input from
*Can provide specialist Mintzberg model
services
*Explicit Knowledge
*Provides standards

CHAPTER-4-MIS-PRM42
Organizational Layers
Organizational Organizational issues Systems Issues Technology Issues
Layer
Strategic Organization Structure, Environmental Feedback Technology Selection for
(Pro-active/ Decision Style, Maintenance mechanism, Procedures Systems, knowledge and
Systemic/ of organization culture, for internal resource Intelligence Management
Systems Thinking) Formalization of management and external
Informal, organizational Performance interfaces, Systems MIS supports this layer
directional Indicators Modelling
Tactical Establishment of process, Process modelling Preparation of process
(Systematic/ process parameters related to and data models to
Preventive and organizational performance, optimize costs on
Reactive) Process interface transactions, agency and
Formal and mechanisms as per the coordination
prepare SoPs organization structure,
establishing role clarity in
organization as per MIS is Strong in this Layer
organization structure
Operational Identification of transactions Identification of modes of Induction of technology for
(Systematic/ and taking ownerships transaction, mapping the managing transactions
Reactive) frequencies and volume of
Highly formal and transaction, formalizing
follow SoPs transaction cycles,
MIS is Strong in this Layer generation of information

CHAPTER-4-MIS-PRM42
Organizational Decisions- no Direct Solutions
Theory of Bounded Rationality
Simon stated that --- Individual vs
Organization --- there are decisions----
◦ Involves three “steps”:
◦ (i) the listing of all possible behavioral alternatives;
◦ (ii) the determination of all the consequences that will follow, in
the future, to the adoption of each of these alternatives (in a
deterministic way or in the form of distributions of probabilities);
◦ (iii) the comparison of the alternatives, that should be evaluated by
the sets of consequences following each one of them, according to
the preestablished ends (utility, profit or any other specified pay-off
function).

CHAPTER-4-MIS-PRM42
Systems
Thinking –
Getting into
Systemic
Views

CHAPTER-4-MIS-PRM42
Overview
Systems Thinking
◦Reaction to an event would depend
on:
◦Understanding “Cause-Effect”
◦Identifying stakeholders
◦Effect on their relationships
◦It opposes short term views of a problem

CHAPTER-4-MIS-PRM42
Overview

Has “Systems Thinking” Helped?


◦Business Paradigm
 Automation of various processes
 ERP, Banking Solutions etc…
 Web Technologies….
 Internet Solutions
◦Weather Forecast and Analyses
◦Rural Services
◦Governance and E-Governance
◦Education Systems
CHAPTER-4-MIS-PRM42
Approach to
Systems
Thinking

CHAPTER-4-MIS-PRM42
The Traditional Approach
Traditional systems analysis is
◦ Monolithic
◦ Looks at problems in isolation
◦ Incremental
◦ Problem specific
Advantages:
◦ Can be handled efficiently
◦ Can improve upon
Disadvantages
◦ Short term, needs corrections very often
CHAPTER-4-MIS-PRM42
Systems Thinking Approach

It looks for events and arrests its recurrence


It may ask for a “World View”
It is strategic in nature
Perhaps all the stakeholders need to exercise their power to
contribute
◦ Democratic/political/social
◦ Relationship management
Advantages
◦ Long term view
◦ Pattern can be forecast and embedded in the system
Disadvantages
◦ Difficult to reflect all requirements
CHAPTER-4-MIS-PRM42
An Example
State encounters “Famine” – This is an event
Scenario-I
State announces schemes – State is “Reactive”
Scenario-II
◦ State helps people and study the causes
◦ State tries to analyze patterns and cause-effects of
famine on “Livelihoods”
◦ State plans for alternate livelihood opportunities
(In scenario-II, state has a “systems thinking Approach”)

CHAPTER-4-MIS-PRM42
Systems Thinking Tools for Analyses
Behaviour Over Time (BOT)

Fish-Bone Diagram
Effect

Cause

Effect

CHAPTER-4-MIS-PRM42
What is Systems Thinking?
◦Effective in seeing the “Big Picture”
rather than just their “parts”.
◦Identify recurring challenges and fix
them
◦Deal with “Problems” whose solutions
are not “Obvious”. (Problems with
obvious solutions can be managed
systematically.)

CHAPTER-4-MIS-PRM42
What is Systems Thinking?
Systems Thinking as a Special Language
◦ It emphasizes
◦ wholes rather than parts, and stresses the role
of interconnections.
◦ circular feedback (for example, A leads to B,
which leads to C, which leads back to A) rather
than linear cause and effect (A leads to B, which
leads to C, which leads to D, . . . and so on).
(For Example: Increase in Subsidy ->Likely increase in political affinity ->
Likely increase in Subsidy)

CHAPTER-4-MIS-PRM42
Systems Thinking-
Examples
Traditional Systems - Examples
Example of a Car Manufacturing
Business
Traditional Thinking
Economic View
Cost (Unit)
Price (Unit)
Volume of Sales
Profit
Break Even
CHAPTER-4-MIS-PRM42
Break-Even Analyses

 Break even point ( BEP) is the point where the revenue is equal to total cost.
 At BEP, the company makes neither profit nor loss.
 This point is important to determine the price of a product such that the
company still gains net profit.

BEP=TFC/(SPUP-VCUP)
BEP= Break Even Point
TFC=Total Fixed Cost
SPUP= Sales Price Per Unit Production
VCUP= Variable Cost of Unit Production

CHAPTER-4-MIS-PRM42
Another Example of
Traditional Systems
 Economic Order Quantity (EoQ) for Inventory Management
 Rules:
Calculate Ordering Cost,:
Ordering Cost = (Annual Demand / Order Quantity) *
cost per order
Calculate Carrying Cost = (Order Quantity / 2 )* Annual
Holding Cost per unit
 Calculate Total Cost = Ordering Cost + Carrying Cost
Find out Least Total Cost (use small function)
Calculate EOQ (Use offset and match function to find out
the order quantity for least total cost)

CHAPTER-4-MIS-PRM42
Why EoQ?

D: The demand for the product in quantity per unit time.


Q*: The order quantity. This is the variable we need to optimize
C: The order Cost
h: Holding cost per unit. For storing X units, the holding cost is Xh.

CHAPTER-4-MIS-PRM42
What Systems Thinking Does
Here?
 Case of BEP
Takes a view of economic value
Concentrates on production and sales

 Case of EoQ
Takes a view on Inventory of raw material, finished goods
Concentrates on inventory holding costs

 Way Forward? (Holistic Approach through Systems Thinking)


Can we combine these two issues for a better cause?
What is the effect of BEP and EoQ on profit?
What is the effect of BEP and EoQ on Employee Productivity, Employee stock option, employee
satisfaction, etc.?

CHAPTER-4-MIS-PRM42
Systems Thinking: A Holistic View
Presentation of the Model:
Sales- [[Cost of Goods Sold] + [Overheads]]= [Profit]

Discussions:

1. Will the profit be influenced by “stock”? ( + ive or –ve)

2. Will the stock influence “cost of goods sold”? ( + ive or –ve)

3. Will Creditors influence “profit”? ( + ive or –ve)

Generally speaking :

the linear equation could be


“y = ao + a1X1 + a2X2 + . . . + anXn ”
where

y = dependent variable

Xi = independent variables
ai = coefficients (or weighting factors) for each of the independent
variables
Influences could be Cause-Effect

CHAPTER-4-MIS-PRM42
Essence of Systems Thinking

 Chaos
◦ Is the pattern Linear/ Non Linear!
 Linear thinking is “Absurd”!, it does not exist in real
world.
If assumed, it may lead to Chaos
 Expansive: Not Reductionist
◦ Reductionist means reducing some behavior through
identifiable measures ( Better Sales would have Better
Margin!!)
Systems Thinking cannot depend on this Cause-effect
alone!

CHAPTER-4-MIS-PRM42
Usefulness of Systems Thinking

➢ Reinforcing
 Continuous (Once successful may lead to do same things with more vigor!)
 Archetypes (Structure/Patterns- Experts!)
◦ Complexity can be reduced to small and predefined structure and
pattern with proved relationships
(Example: Car fails to start!, check battery, starter, fuel and go on..)
Time
◦ Delays (minimum…)
◦ Timeline (Longitudinal Analysis)
(Example: verifying response time in Railway reservation system/ ATM!)
Through use of technology
◦ When to do it?
Example: Technology intervention in ticketing, round the clock?, who should issue tickets- Outsource, departmental?

CHAPTER-4-MIS-PRM42
When to Use Systems Thinking?
 When thinkers stop appreciating role of “Forest” while
addressing problems for “Trees”
 Problem is Complex
 Recurrence of Events
 Issues are part of larger Structure
 Non-Obvious Problems
( confirmatory, It might exist somewhere- Not to reinvent the wheel)

 Problems with multiple perspectives; may not have “Obvious


Solutions”
 Problems/Challenges are in “Circular Referencing”
 When there is a pattern

CHAPTER-4-MIS-PRM42
Systems:
The Base for
Systems
Thinking

CHAPTER-4-MIS-PRM42
Systems: How it works?
Systems Types Description Examples
Closed Do not interact with environment for Atoms and molecules.
existence
Open Organic and must interact with their Human organism,
environment in order to maintain Furnace, Fridge
their existence
Reactive Systems react to an event Thermal sensor controls a
compressor in
Refrigerator
Responsive Regulating Thermal Sensors having
Thresholds
Optimizing Simulations Critical Path Methods,
EoQ
Adaptive Continuous Aviation Controls
Deterministic Predictable in inputs and delivery Computer programmes,
machines
Probabilistic/Stochastic Considers past trends and predict Inventory controls
Self-Organizing Method of adaptation is uncertain Social groups

CHAPTER-4-MIS-PRM42
Systems Life Cycles
Entropy
◦ Is the normal phenomenon in a system
◦ Refers to LOSS

Entropy needs to be “Negated”


◦ Possible through cybernetics
◦ System needs to attain “Steady State”

Open systems address entropy seamlessly


Entropy, if not addressed, will enforce system’s termination (life cycle
would end)

CHAPTER-4-MIS-PRM42
Steady State and Entropy in Systems

Example of STEADY STATE:


◦ Competitor changes price
◦ Change is recorded by the system
◦ Processing is done
◦ Verification is done based on the output
◦ Price is changed suitably – (This is the steady state)

Example of Entropy
◦ Competitor changes price
◦ Changes are recorded
◦ Process ignores the change
◦ This ignorance is called Entropy

Capturing “change” in competitors price is called as negative entropy (INFORMATION)


Systems should resist entropy

Refer to TAU material for details on entropy

CHAPTER-4-MIS-PRM42
Cybernetics

CHAPTER-4-MIS-PRM42
Cybernetics
It is a control component in the system
Feedback is the main requirement to control
◦ Needs capture expected behaviour of the system without getting into details
◦ Based on +ive or –ive variations with respect to the expected behaviour

CHAPTER-4-MIS-PRM42
Cybernetics
Tow Types of Cybernetics:
◦ Management Cybernetics
◦ Organization can be managed with certain variables that system can
understand
◦ Ex: Targeted Sales Turnover vs. Production Capacity
◦ Mostly internal control with machine turnover as an input
◦ Mostly internal control with push sales

Organizational Cybernetics
◦ Needs to go beyond push sales with better marketing
procedures, feedback from market, mass customization
with internal preparedness

CHAPTER-4-MIS-PRM42
Role of Cybernetics
Customers Regulatory Agencies

Feedback Feedback

Outputs:
Inputs: Products &
Organization
resources Services

Feedback Feedback Feedback

Suppliers Stockholders Competitors

CHAPTER-4-MIS-PRM42
Thanks!!

CHAPTER-4-MIS-PRM42
Data & information
management

Chapter-5
Progress So Far!!
• We discussed about
• Organizations –Structures and Types--- Information Imperatives
• Management and Controls in Organizations
• Decisions – Reactive, Preventive, Proactive
• Decisions- Traditional approach (Mechanistic/Organic), Functional
approach
• Systems and systems approach to Organizations
What is Expected ?
• Through Systems Thinking -- UO and Information
• Steady State, Entropy, Cybernetics….. Management
chapter-5,MIS-PRM42
How to Proceed from Here?

Data /
Information Evolution and
MIS
• Chapter 5 Modeling
(Chaopter-6)
Identification/D
esign/
Development
(Chapter 7)
Information System
Quality (Ch-8)
chapter-5,MIS-PRM42
In this Chapter what would we cover???

• Move from Systemic to Systematic Environment


• Understand how INFORMATION could be derived?
• Could DATA help organize Information?
• Data Architecture
• Data Modeling
• Can INFORMATION be managed and related to
• Organizations?
• Roles?
chapter-5,MIS-PRM42
Data Management Principles
Chapter-5

chapter-5,MIS-PRM42
What is Data?

• In computing, data has been translated into a form that is


more convenient to move or process. Relative to today's computers
and transmission media, data is converted into binary/digital form.
• In telecommunications, data sometimes means digital-
encoded information to distinguish it from analog-encoded
information such as conventional telephone voice calls.
• Generally and in science, data is a gathered
body of facts.
• Data, by dictionary originates from the Latin word and as the
plural form of "datum."

chapter-5,MIS-PRM42
Data Management Principles

Data
Management Data
Raw Data Analysis Data
(Storage,
(Identification) Retrieval
Presentation
Validation etc.)
Compare with
Keep these data for a Birth Rate; expected figures,
*Date of Birth of Household, village and Mortality Rate with other House
an Individual so on…
and so on… hold, village, nation
*Date of Death and so on…
of Individuals

chapter-5,MIS-PRM42
Benefits of Data Management
• Helps check  “Accuracy”
“Redundancy”  “Validity”
• Helps in Data  “Consistency”
Control – Sharing  “Timeliness”
and ownership
• Latency – Managing
inherent delay in the
system
• Integration – Sharing Data Information Knowledge Intelligence
need not be asked for
– could be seamless

chapter-5,MIS-PRM42
Data Architecture

chapter-5,MIS-PRM42
Data Management- DATA
ARCHITECTURE

Data Source Data Gathering


(Raw Data) / Validation

Data Architecture

Data Presentation Data Analyses

chapter-5,MIS-PRM42
Meta Data (uses architecture)

• Metadata is...
...constructed... (Metadata is wholly artificial, created by
human beings.)
….for a purpose ... (There is no universal metadata. For
metadata to be useful it has to serve a purpose.)
... to facilitate an activity... (There's something that you do
with metadata.)

chapter-5,MIS-PRM42
Meta Data Examples..

*PAN NUMBERS
*VEHICLE NUMBERS
*Students’ Roll No.

chapter-5,MIS-PRM42
DATA MODELLING –
Data Management
Techniques

chapter-5,MIS-PRM42
Data Modeling Rationale:

Data Modelling Objectives


Components

Raw Data Data Identification and Acquisition

Data Authentication, validation and


Management integration
Data Analysis Prepare schemas for better
planning and use of data
Data Presentation Strategies to acquire data and use
them with better life cycles

chapter-5,MIS-PRM42
An Approach to E-R Modelling
Problem

Identify Entities at this stage Abstraction

E-R Modelling

Entity # 1 Entity # 2 Entity # 3 Entity # n

Database
Relationship
chapter-5,MIS-PRM42
E-R Model – An approach to Data
Modelling

• It involves “Entities”
• These are also called “Objects”
• Living – Person, Livestock, trees….
• Non-Living: Vehicles, Buildings, Pen, Book etc…
• Conceptual: Department, Bank Account etc..
• It requires “relationships”
• Among entities
• It requires security and validations
(MS-Access as example)
chapter-5,MIS-PRM42
Relationships

• Entities need to be related


• They need Descriptions (Schema)
• Entity1 = { attribute11, attribute12, ….,attribute1n}
• Entity2 = { attribute21, attribute22, ….., attribute2n}
• Keys: Attribute11 and Attribute22 for relationships
• Degree of Relationships
• It reflects the number of entities associated in a relationship. These could be Unary, Binary, Ternary,
n-array
 Cardinality of Relationships
• are one-to-one, one-to-many, many-to-many.
• Parent and Child (Directions)
chapter-5,MIS-PRM42
Development of Personal Banking Data Model: An
Example of Data Matrix
Data Source Description Data Relationship
Source
Customer Account

1 Customer X X
Unary; Many-to-Many
Many-to-Many

2 Account X X
Many-to-Many Many-to-Many
(Unary?)

chapter-5,MIS-PRM42
E-R Diagram
Account

Unary Relationship

Customer
Account ID
Account Holder Name
Account Holder Surname

First Account Holder
Transaction Second Account Holder

Customer Bank
Associative Relationship

chapter-5,MIS-PRM42
Transferring E-R diagram to
Databases
• Some prescriptive Rules
• Look for entities (They are all tables in a database)
• Look for relationships
• Transfer them to databases through its relationship wizard
• Conceptualize
• Reports/ Forms
• User Interfaces
• Integrity and dashboard requirements
• operational/tactical/strategic
chapter-5,MIS-PRM42
Schema and Views: Requirement Analyses

Application Application Application


#1 #2 #3
Total_Balance, No. Of Customers No. of Customers
Average_Balance By Type Having balance below
Minimum balance
Customer- Account Logical Schema
(Relationship) View

Bank level
Total balance,
Total customers,
Customer: Physical Schema and Data Base Customers’
{Customer_ID, Name, Age, Account
Account_ID}
Healthiness.
Account: { Account_ID,Type,Balance}
chapter-5,MIS-PRM42
MANAGING
INFORMATION

chapter-5,MIS-PRM42
Memory, Knowledge / Intelligence,
Information
• Do we need Memory?
• History
• Knowledge
• Contextual Retrieval Capabilities
• Intuitive Analyses based on memory mapping
• Factual analyses based on expertise
• Prescriptive and expert advice based on sampling, correlations
and related quantitative methods
• Living Beings, Organizations build memory
chapter-5,MIS-PRM42
Knowledge Types

• Subjective Knowledge : Held in one’s mind (Tacit)

• Objective Knowledge: Ability to translate, relate


knowledge to applications (speech, text presentations)
• Explicit Knowledge: Can be verified, documented
“Imagination” distinguishes between “Intelligence” and “Knowledge”
[Einstein]
Knowledge + Imagination = Intelligence
chapter-5,MIS-PRM42
What is Information?

• Processed / Analysed Data


• Contextual
• In Technical Terms: Information is a form of analyzed data with
probability of least occurrence, i.e.
I  log 1/P (Shannon)
Example:
• Occurrence of rain in rainy season carries highest probability- poor
information content
• There is 25% attendance in the office- carries least probability of
occurrence- hence information exists
chapter-5,MIS-PRM42 Sun Rises in the East!!!
What Data can do for You?
INFORMATION MANAGEMENT
Defined as ….

Trial Balance Shows Debit


“The ability to share information Figure!!!

combined with

the ability to use the information so shared.”


Ability to trace the Voucher
wrongly entered
DATA MANAGEMENT
chapter-5,MIS-PRM42
USE of DATA:
INFORMATION MATRIX

chapter-5,MIS-PRM42
Report Table and Information
Matrix

• Report Table considers


• All User Requirements (Dashboards)
• Business Processes
• Key Performance Areas

• Information Matrix considers


• Measurements
• The hierarchy
• The relationships (external or internal)
• Difference between
• “reported” and “processed”

chapter-5,MIS-PRM42
Information Matrix
Roles are to be clarified
Frequency of Reporting/ Processing is the Key
Reported Processed

Internal

A B

External C D

chapter-5,MIS-PRM42
Approach to create Information Matrix

• Roles are to be managed in hierarchy


• Performance measures are to be listed for the role
• Relationships among other roles is to be ascertained
• Attempt to make the listing holistic (systems
thinking!!)

chapter-5,MIS-PRM42
Information Matrix- Example
• Consumptions of Raw Material in
production department
• Category A: Internal & Reported:
• Supervisor reports to Production
Manager on daily Production (is it
information?)
CEO
• Category B: Internal & Processed:
• Production Manager Analyzes on
• Average Daily Production (is it Production Stores
Manager Manager
information?)?
• Quality of Production(is it
information?)?
Internal – Has line of authority to Control Supervisor Accountant
chapter-5,MIS-PRM42
Information Matrix- Example
• Category C: External & reported:
• Production manager gets
reports from stores on daily
issue of raw material to
production department. (is it
information?) CEO
• Category D: External &
Processed:
• Manager wants to analyze Production Stores
consumption of Raw material Manager Manager
vis-à-vis quantity received
from stores (Data from
Stores function) (is it
information?)
Supervisor Accountant
External – Does not have line of
authority to Control

chapter-5,MIS-PRM42
Information Matrix for Production Manager
Reported Processed

Internal Daily Production exceeded *Average Daily Production


the budget *Quality of Production

Daily issue of raw material Analyze consumption of


by stores department to Raw material vis-à-vis
External production department is quantity received from
delayed stores with lead time….

chapter-5,MIS-PRM42
Information Matrix-
Its Relevance
• It helps to know
• Level of data presentation
• Pattern of Use
• Movement of Data
• Different from Data Matrix
• Uses data organized in Data Matrix

chapter-5,MIS-PRM42
End

chapter-5,MIS-PRM42
Information Systems
Evolution and Modelling

Chapter 6
Emergence of Information Systems

Chapter-6,MIS, PRM42
Emergence of Information Systems
Contingency Theory / RBV/ Theory of Bounded Rationality
suggest that:
External and Internal factors influence the organization (employees, suppliers, customers,
competitors…)
Decisions are imminent –personal Vs. Organizational
Information driven assessment – probabilities of right decisions
Optimization of expected deliverables…

It is argued that
Functional silos can manage these contingencies / probabilities
better (Expertise…)
Each Function can be attached with an Information System
More information in TAU material
Information System (IS)
A set of procedures (processes) interconnected
Makes information available as applicable to a functional part of the organization
Assists the requirements at organizational level.

Chapter-6,MIS, PRM42
The Path Traversed by IS
Systems Involved:
• Natural (Nature Creates) IS is here…
• Designed Systems (Humans create)
• Observed Systems(Organization, governance, society..)
Highly User Oriented

2000 and beyond:


1980s-1990s: Focus of external interfaces
Information due to enhancement in
Business – Management Orientation Systems became internal information system
part of competencies
Organization’s Core
1960s and 1970s: Activity
Managerial Control
through Information
Systems

1950s:
Technical
Changes/Limit
ations for User Highly Technology Oriented
Services

Time

Chapter-6,MIS, PRM42
How IS represents the Organization?

Advantages:
An IS maps the Organization
Partially
An IS introduces
• Systematic Information Flow
• Systemic views through
interactions among people and
processes
IS-4 • Technologies for improvements
Disadvantages
IS-3 • Difficult to apply systems

IS-1
IS-2 thinking
• Difficult to map the real world

Chapter-6,MIS, PRM42
Types of IS
IS are of various Types:
FORM-1: Communication related – mail,
Call Centre…….
FORM-2: Office Automation- Word
Processors, Spreadsheets…..
FORM-3: Business Transaction-
OLTP/ERP/SCM….
FORM-4: Individual-Expert Systems, ML,AI
FORM-5: Strategic- OLAP, Decision Support

Chapter-6,MIS, PRM42
Barriers in IS Development Strategic Barriers
• Inefficient and poor
Business Strategic
Management
articulation of information
need
Executive
Management • Let it come with time
IS/IT • coordination among
Strategic Management
functional areas and
inability to find a path
Impact analysis
User Management

Information

Systems Management
User Operations
Information analysis
Process Barriers
• First Order: Poor use of IS
• Second Order: Far Projects and Computer
Management
reaching effects on key
performances
• Third order: Increase in Systems design
total cost of ownership

Chapter-6,MIS, PRM42
IS Life Cycle
1. Systems Life Cycle
should follow OLC
Start of
(longer the better)
The Cycle

User Needs Feasibility Information


Identification Assessment Systems Plan

Information Design- Information


Systems Tests Reality Gaps Systems
Design

Install User End of


Information Acceptance The Cycle
Systems

3. Internal adjustments to align with 2. Systems should be


Market conditions should not affect introduced during FIRST
Systems Life Cycle stage of OLC
Chapter-6,MIS, PRM42
IS Infrastructure
1. IS infrastructure
Users Should be acquired
initially
Business Practices captured
Information System
Infrastructure

Information System Identified,


prioritized

Hardware Software Networks


Information Technology
Infrastructure

Vendors/ IT Service Providers


2.IT infrastructure life
Cycle should not affect
IS infrastructure
Chapter-6,MIS, PRM42
IS – Organization Alignment

Process-LCs
Product-LCs

IS-LC

OLC IT-LC

Chapter-6,MIS, PRM42
IS Modeling
OMNIS Model

First Alignment Second Alignment

First Alignment Second Alignment

Chapter-6,MIS, PRM42
Components of Functional System
Functions
Processes
Transactions Functional System

Events

Actors Rules Process Events


/
Logics

Chapter-6,MIS, PRM42
Functions and Their Roles
Function
Information System

Process # n Process # 1

Initiate
Feedback Transaction #1
Function- Specific domain
Process- Component of an Information system
Transaction- May encompass many Functions
Note: Functions are not processes
Chapter-6,MIS, PRM42
Processes Identified….

Definition of Process
It is some kind of related and well sequenced
activities within the organization where people work
together to achieve some desired outcome.
The work can be done Iteratively
A process involves activity, people and/or
machine
Doing things collaboratively (Rules, Logics)
Have transactions (How the transformation takes
place)
Has a goal
Has owner/stakeholder
Chapter-6,MIS, PRM42
The Basics of Processes
• Organizing work flows
Work procedures
• Ex: Allocation of Manpower to a Machine
by Shift
Work flows
• Ex: Machine Layout and Sequencing
(Mimic Panel/ Dashboards)

Chapter-6,MIS, PRM42
Types of Processes
Core Process
Central to objective of Organisation
Mostly Static
(Example- PRM, FPRM courses of IRMA)
Support Process
Supports Core Process
(Example- Admissions, Teaching)
Management Process
Formulate strategies
(Example-for admission, PRM courseware, Eligibility)

Chapter-6,MIS, PRM42
Transaction: A Definition
Transaction
A set of well organised Activities
Required for exchange of
• Goods
• Services
• Information
Stakeholders
• Owner
• Service provider
• Medium (an agency, technology, person ..)

Chapter-6,MIS, PRM42
Transactions- How to Conduct? Modes
Off-line Mode:
Independent of state of a process/ processes
No time limit to get feedback on completion of
transaction
(Example: sending a letter by ordinary post,
Submission of cheque for withdrawal)
Batch-Mode:
An extension to Off-Line Mode
Group of transactions honoured at a time
There is a time lag
(Example: Payment of salary at the end of month,
Printing through Print server)
Chapter-6,MIS, PRM42
Transactions- Modes
On-Line Mode:
Process waits for a transaction
Technology is a must
No time lag once transaction is initiated (only process time)
(Example: Cash withdrawal through ATM, Railway Reservation
through computers)
Real-Time Mode:
Extension of On-line mode
Automated input for a transaction
No time lag
(Example: Aviation control)
Question: What is the mode when you pay a vendor for
purchase of vegetables?

Chapter-6,MIS, PRM42
Modes of Transactions
Mode Interventions of Time Lag Example
people
Off-Line and Yes Yes Purchase of goods from
Manual vendor
Off-Line and Yes Yes Sorting of Letters in a
Batch Post Office
On-Line Yes Yes, But Less Withdrawal of Money
from ATM
Real Time No No Trajectory of Satellite;
Time lag may be due to
delay in transmission

Example of On-Line and Batch Mode:


Milk Collection in a DCS ; On-line mode needs IT/technology
Chapter-6,MIS, PRM42
Transaction Table – IRMA Mess
Transaction

ID# Narration Owner Exchange Mode Service Frequency


(indicative)
Remarks
Type Provider

XX999AAA1 Purchase of Concerned Goods OFF-Line and Purchase Weekly Once As per Re-
R/M Manager Batch Manager order level
who would who would
use use

XX999AAA2 Payment to Vendor Service Can be ON- Accounts As per As per credit
Vendor Line and Manager agreement Policy
Batch

XX999AAA3 Issue of R/M Concerned Goods OFF-Line and Stores Daily As per
Manager Batch Manager demand
who would
use

XX999AAA4 Use of R/M Operator Goods and OFF-Line and Floor Daily As per
Services Batch Manager demand

# Transaction ID will be modeled through Data Architectures


Chapter-6,MIS, PRM42
Systems Thinking : IS Events
Production Cost P&L Captures increase
IS CYCLE: goes up in Direct Cost
1
Events in Updating in
? Functions Information Base
2
Records increase
in R/M 4
Holding cost Change in Management &
3 control
Events
Variance in
Direct Material
Chapter-6,MIS, PRM42
Event Table – IRMA Mess
Events
ID# Narration Related Updates in Management Change Steady State
Process to
Function Information and Control in Event
follow
Base
XX999AAA1 Production Cost ??? Increase in direct Variance in Direct Increase Assess demand
Goes Up Cost Material, in R/M and decrease
Holding R/M holding
XX999AAA2 Stock-Outs in ??? Decrease in Re- To manage total Increase Assess Demand
R/M order level and Cost Safety and increase
Safety Stock stock Safety Stock
and Re-order
Level
XX999AAA3 ---- So on

XX999AAA4 -----

XX999AAA5 ------

# Event ID will be modeled through Data Architectures


Chapter-6,MIS, PRM42
Thumbnails
Abstract the Organization
Develop/ Study the Organization Structure
Look for Functions – Attach an Information System to each
Look for “Core Process” – Attach one Information System to each
Look for processes in each function
Prepare Process Matrix
Look for Roles
Prepare Views (Resource and Management Views)
Prepare Information Matrix
Look for Transactions
Create Transaction Table
Look for Events
Populate them to address systematically and create an Event table
Look for Data Sources/ Ownerships
Prepare Data Matrix (Optional for your case analyses)
Chapter-6,MIS, PRM42
Information Systems
Evolution and Modelling
How to link process with IS?
Data Process
Matrix Matrix

Data Data
Process
Identification Information
Sources Rules/
Logics

Feedback to Information
change data Matrix;
Transaction
tables, Event
Tables

Chapter-6,MIS, PRM42
Process/Information Matrix

Process Owner P1 P2 P3 P4
P1 Sales x x
P2 Accounts x x x
P3 Accounts x
P4 Production x x

Internal Reported Processed


Number of Sales order submitted to Accounts Budgeted Information
Quantity of Products to be produced by Production deptt. as per Sales order Production Matrix for Sales
Manager
External Reported Processed
Number of Sales order Generated Sales Variance
Number of Products Shipped

Data Source E1 E2 E3 E4
E1- Item U x x
E2-Department x x x
E3-Customer x X U
E4-Employee x x U

Chapter-6,MIS, PRM42
MCS Fundamentals
MCS includes
Validations of feedback received from
Functional system
Prepares and designs “References” for
exercising “Controls”
• To attain steady states
• to establish path for cybernetics
Responsible Decision making
• Brings in “role clarity”

Chapter-6,MIS, PRM42
Areas of MCS
Systems Nature of Purpose of Focus Area Examples
Area systems Systems
Belief Shared beliefs, To respect core Retain Missions, statement
Systems purpose areas of organizational of purpose in the
organization value organization as
commonly
understood
Boundary Formalization To encourage To avoid risks in Clearly defined
Systems of rules and individual innovation the domain rules, logics
logics within the boundary
specified

Diagnostic Feedback, Resource allocation Design critical Benchmarks,


Systems Controls and and motivation to performance organization wide
monitoring of optimization areas performance
organizational measures
outcomes
Interactive Role specific Stay prepared for Address strategic Organize dynamic
Control controls and uncertainties and uncertainties controls based on
Systems measurements take new initiatives debates and
interactions with
subordinates
Chapter-6,MIS, PRM42
What MCS is expected to do”
Manage Surprises
Identify areas where surprises are
expected
• Capture them before/ after they occur ??
• Establish path to receive signals (own body!!)
It includes
Events (Referencing performances)
Simulations (to predict and to find solutions)
Messages (translate signals into understandable terms)

Chapter-6,MIS, PRM42
OMNIS Model and MCS
Can we place these events
Can we plan events in information systems associated?
through Benchmarks? Belief
Systems
Events
Events
Boundary
Processes
Information Systems
Functional
System
System Simulations

Rules Diagnostic MCS


Control
Messages Systems
Actors

Interactive
Control
Can we formalize expected Systems
solutions and
Create message Portfolios?
Organization

Can we simulate events and


try their solutions for steady state?
Chapter-6,MIS, PRM42
End

Chapter-6,MIS, PRM42
Information System
(Identification, Design and
Development)

Chapter 7- MIS
OMNIS Model and MCS 1. Roadmap
Can we place these events
Can we plan events 2. Futuristic
in information systems associated?
through Benchmarks? Approach
Belief
3. Knowledge
Systems
Events 4. Holistic
Events
SYSTEMIC
Boundary
Information Systems
Functional Processes
System
System Simulations

Rules Diagnostic MCS


Control
Messages Systems
1. Structure Actors

2. Expertise
Interactive
3. Standard
Control
Operating Can we formalize expected
Systems
Procedures solutions and
4. Formalization Create message Portfolios?
SYSTEMATIC

Organization
Can we simulate events and
try their solutions for steady state?
Chapter-7,MIS, PRM-42
Behavior of Information Systems
◼ Decomposition
❑ Systematically analyse the system into small parts to take control
❑ Small parts need to be less complex and should be managed efficiently

(Organization pursues structural orientation…)


◼ Modularity
❑ Examine scope for grouping the components based on homogeneity
(pattern analysis will be beneficial)
(Organization works in SILOs functionally…)
◼ Coupling
❑ Examine whether components/modules can be interrelated?
(Organization networks its Silos through various approaches like Cost Centres/
Revenue Centres…)
◼ Cohesion
❑ Examine whether component / module can work independently?
(This is the best thing that any functional manager would wish to happen…)
Question is-- Can an Organization pursue this path???
Chapter-7,MIS, PRM-42
An Example
Problem Abstraction Systemic View Systems Thinking

1.1 Views through Decomposition


Pricing is higher than the competitors Drop in Market Share =
It is a problem
related to f(price, retailer’s
marketing Retailers position competitor’s product better influence, inventory
function holding cost, customer
Customer’s rejection is increased due to low quality rejection)
1.2 Views through Coupling
Price is affected by large inventory holding cost in Inventory holding cost=
Market Share has dropped

1.2.1 Problem is
coupled to stores due to huge stock of fast moving items f(stock of fast moving
Materials item)
Management
Function
Retailer’s preference to competition’s product is due Retailer’s influence =
1.2.2 Problem is to better sales commission f(competitor’s sales
coupled to Sales
Function
commission)

1.2.3. Problem Customer rejection is bad quality due to defects in Customer Rejection =
is coupled to machines used in process f(bad product quality)
Production
function
Product Quality =
f(machine defects)
1.3 Views through Cohesion
Inventory holding cost module should be handled in the function through modelling,
Expert views
are needed Sales discount and retailer management should be handled in the function

Machines need maintenance/replacement

Chapter-7,MIS, PRM-42
How to Proceed for Designing IS?
Step-I : Create Functional Systems through Context Diagram…

Systems
Functional System #1 Thinking Functional System #2
(Marketing) (Production)
2 3
4
1
Protect
Stockholder
interests
5 7
6
8

9
Functional System #3 Functional System #4
(Human Resource) (Materials)
10

Functional System # 5
(Finance)

Chapter-7,MIS, PRM-42
How to Proceed for Designing IS?
Stage –II – Map functional Requirements

Functional Event Information Requirements


System Number Description
Marketing 1 Product introduction What to produce?
2 Customer Acceptance Who are the Customers?
Production 3 Production quality What is product quality?
4 Production quantity How much to produce?
Human 5 Employee Recruitment Whom to recruit?
Resource 6 Employee Retention How to retain efficient employee?
Materials 7 Identify Supplier Who are the suppliers?
8 Inventory Cost How to optimize inventory cost?
Finance 9 Stock Price What is stock price?
10 Working capital How to limit working capital?

Chapter-7,MIS, PRM-42
How to Proceed for Designing IS?
Stage- III- Attach one IS to a function
Stage- IV- Create an Organizational Context Diagram
Functional Systems Employees

2 3
4
1
Protect
Stockholder
interests
5 7
6
8
9
Suppliers Customers

10

Stockholders

This would provide MCS views for the Organization – It is holistic

Chapter-7,MIS, PRM-42
How to Proceed for Developing IS?
Influencers : People, Process and Technology
Type of People Description Domain

Operational Accesses the system through a pre-determined Moderate exposure to Business, Least on
Level and structured interface, do not have adequate Information Systems and Technologies
knowledge in programming
Command Some exposure to high level commands; High exposure to Business Process,
level Appreciate Use of Information Systems and Low on Information Systems and
Technologies, but limited in identifying the IT Technologies
components
Programmer/ Operational level, with high exposure to tools, High exposure to Information Systems and
Component equipments; Least on Business Process Technologies; Component specific use
users
Functional Information Systems and Technologies: system High exposure to Information Systems and
Support developers/ analysts/ architects Technologies, Component specific use,
Understand the requirements of
Information Systems and Technologies
Business: Functional Experts High exposure to Business, Understand the
use of Information Systems and
Technologies
Strategic Information Systems and Technologies: CIO High exposure to Information Systems and
Technologies Strategy
Business: CEO High exposure to Business Strategy

Chapter-7,MIS, PRM-42
Challenges in Developing IS
◼ Information system Life Cycle – more is
better and is influenced by
❑ People who own and use
❑ Process re-engineering demands to infuse best
practices
❑ Choosing between “Build (In-house) or Buy
(COTS)” options
◼ Making IS successful
❑ Attaining “Fit” between organization, people and
process

Chapter-7,MIS, PRM-42
Challenges in Developing IS
User-Led ISD
IT centre-Led ISD

High: High: IT Domain


Business Collaborative Knowledge
Logics ISD

Involvement
Involvement
of
of
Users
IT- Centre

Low: Business Low: IT Domain


Logics Knowledge

Undesirable Ideal Undesirable

Chapter-7,MIS, PRM-42
User-Led ISDs – Advantages and Risks
Advantages Risks
• Make analysts and • Loss of a technology oriented and
programmers more “outside of the process” view of the
productive application
• Use of systems would be • Loss of an opportunity to evaluate
easy alternate approaches and Software
• Transfer of application engineering models
software development work • Loss of an opportunity to elicit complete
to the users. It might requirement
reduces the problem of • Lack of quality assurance for
requirement determination applications
• Transfer of ISD projects • Unstable systems
completely to the users • Risk from encouraging closed
information systems

Chapter-7,MIS, PRM-42
One Possible Answer: Pursue SDLC
Tools: Use Systems Thinking approach;
Systems Requirement Events analyses; MCS of OMNIS model;
Determination #1 Context Diagrams; Estimates of projects
(Time, efforts, cost…)
Tools: Functional Systems of OMNIS
Systems model – Processes (Rules/Logics),
Analysis #2 Events…Transactions.., Process Flow
Diagrams…
Systems Tools: E-R Diagrams (one of the tools which is
Design #3 included in this course- there are others..);
Information Matrices; Data and Process
Matrices…
Systems Tools: User involvement through quality systems
Implementation #4 mapping; Tests- Unit, White Box, Black Box,
Integration, Validations, Performance tests –
Alpha, Beta; Installation Tests……
Systems
Maintenance #5

Chapter-7,MIS, PRM-42
SDLC in an Organization

Second Third Fourth


Phase Phase Phase
Process # 11
SDLC # 111
Information
System # 1
Organization SDLC # 112

Information Process # 12
system # n SDLC # 121

SDLC # 122

Chapter-7,MIS, PRM-42
SDLC- The Limitations

◼ SDLC starts with a particular problem


◼ Process approach/ Data Flow
◼ Delivery oriented
◼ Limitations
❑ Ignores the Larger view of the Organisation
❑ Suppresses the relationships among other systems
❑ Very much rigid in freezing requirements of each phase
before going to the next phase
❑ User’s ill response and repulsive attitude because of
technology orientation from the beginning
◼ Results in poor requirement analysis
Note: It is seen under SDLC 70% time is utilized for
modifications during maintenance!

Chapter-7,MIS, PRM-42
SDLC- The Limitations

◼ Traditional SDLC methodology for current IT


projects is not always appropriate:
❑ Many systems projects fail to meet objectives
◼ Difficulty in estimating costs
◼ Each project is often so unique that previous
experience may not provide the necessary skills
◼ Objectives may be too broad or too narrow
◼ Opportunity may not be appropriately leveraged.
◼ There may not be enough time to comply each step of
the SDLC

Chapter-7,MIS, PRM-42
Information Systems Quality

Chapter-8
SDLC- The Limitations
Traditional SDLC methodology for current IT
Projects are not always appropriate:
Many systems projects fail to meet objectives
– Difficulty in estimating costs
– Each project is often so unique that previous
experience may not provide the necessary skills
– Objectives may be too broad or too narrow
– Opportunity may not be appropriately leveraged.
– There may not be enough time to comply each step
of the SDLC
Chapter-8-MIS-PRM-42
GAPS in IS Planning
End-Users
-Not much of idea on technology/tools
-Improper /less Communication
-Over occupied with immediate needs First Order Effect:
-Takes people/technology as granted
Poor use of IS
Consequence:- Patch work, Feels let- down

IT- Centre Developer / Vendor


-Limited knowledge on -Sells concepts
business -Sells technology
-Project mode strategies -Lacks empathy
for IT infrastructure set -Lacks knowledge on
up organization
-Engrossed in Technical Evaluation and Gap
Issues Analyses
Consequence:- Mismatch in
requirement and offered product
Consequence: Doing wrong
things efficiently

•Second Order Effect: Far reaching effects on


key performances
•Third Order Effect: Increase in TCO
Chapter-8-MIS-PRM-42
Why Quality Systems?
• Bridge the gap between acquirers and service
providers
• Service providers include
– Infrastructure providers (H/w, OS, Databases, Networks,
Middleware, groupware…)
– Application software ( like Tally, ERP etc..)
• The challenge is to
– Ascertain quality of services
– Know if any certifying agency is there?

Chapter-8-MIS-PRM-42
Expectations from Quality Systems

• Are the supplies of product/ services quality


certified?
• Is the development process certified?
– SDLC supported Models
– Quality Models

Chapter-8-MIS-PRM-42
Possible Outcomes
• Address issues related to mismatch in
requirement of user and delivery of supplier
• Enforce standard methods adopted by Service
Providers which can be tested and verified
• Educate User on vendors/ service providers
and their capabilities

Chapter-8-MIS-PRM-42
Quality Models
End-Users
-Not much idea on technology/tools
-Improper /less Communication
Software Engineering Models, User
-Over occupied with immediate needs
-Takes people/technology as granted
Centered Designs; for managing
User
Consequence:- Patch work, FeelsParticipation,
let- down in specification
mapping, Testing, Acquisition of
IT- Centre Products../ Services… Developer / Vendor
-Limited knowledge on -Sells concepts
business -Sells technology
-Project mode strategies -Lacks empathy
for IT infrastructure set -Lacks knowledge on
up organization
-Engrossed in Technical Evaluation and Gap
Issues Analyses

SDLC Driven Software Engineering Consequence:- Mismatch in


requirement and offered product
Models: Consequence: Doing wrong
things efficiently Quality Systems Models:
CHAOS; Linear Sequential; ISO; IEEE;BOOTSTRAP; TRILLIUM…etc
RAD…etc for managing quality in for quality of Products../ Services…
Acquisition of Products../ Services… CMM Certification for People and
Processes; Integration
Chapter-8-MIS-PRM-42
MIS & Its Organization
CHAPTER 9
What we discussed so far!
Organization needs Systems

Systems need Boundaries

Boundaries are determined by Organization Structure

Structures need Functional Treatment

Functions know their domain and Information Requirements

Information is retrieved from Data Sets

MIS;PRM-42;CHAPTER-9
What we discussed so far!
Information systems can be based on:
◦ Systems Thinking
◦ Holistic
◦ Circular Referencing
◦ Non-Obvious Problems/ Challenges
◦ Systemic Views (MCS)
◦ Unpredictability
◦ Tacit Behaviour
◦ Relational (References/Feedback/Control)
◦ Systematic views (FUNCTIONAL)
◦ Expert Orientation
◦ Standards / Agreed Operating Procedures

MIS;PRM-42;CHAPTER-9
What we discussed so far!
Development of Information Systems
◦ SDLC driven
◦ Project Approach
◦ Rigid in nature
◦ Scope for improvement
◦ Build/Buy Options

Many SDLCs may be adopted to develop an IS


Complexities emerge at the Organizational Level while
trying to relate all Information Systems

MIS;PRM-42;CHAPTER-9
IS is limited
It is function specific
It needs to address core issue in the organization
It interfaces with MCS and Functional deliveries
The challenge is:
◦ To orient deliveries of IS at the macro level where “Intelligence and Knowledge” matter
◦ To couple/ achieve Cohesion

MIS;PRM-42;CHAPTER-9
The Way Forward!!
What is to be Done to relate Information Management with
Organizations?
How Information Systems are to be related?

This is answered through MIS

MIS;PRM-42;CHAPTER-9
MIS – What it is expected to deliver?
MIS should use all IS developed to:
◦ Enhance communication among stakeholders,
◦ Deliver information throughout the organization,
◦ Provide an objective system for recording and aggregating
information,
◦ Reduce expenses related to labour-intensive, time consuming
manual activities,
◦ Support the organization's strategic goals and direction
◦ Should go beyond the purviews of IS to meet the needs of
Individual Roles

MIS;PRM-42;CHAPTER-9
MIS Purviews
Data Requirements
Inputs Data on Inventory of items (Raw
Inputs Inputs
Material / Finished Goods)

First Stage of MIS: Quantity Variance,


Processed Data Quality Variance, Rejections, Consumption

Second Stage of MIS: Stock outs in Finished


Products, Inventory holding cost go up in
Analyzed Data Warehouse

Third Stage of MIS: Economic Order


Quantity is not appropriate to meet
Projected Data production target projected for next quarter

How to Achieve? Organizational Requirements What is needed?


Information “Information”
MIS;PRM-42;CHAPTER-9
What MIS is?
MIS is
◦ A federation of Information Systems
◦ Examines relationships among Information Systems available
◦ Based on Coupling, Cohesion among IS developed
◦ Multi-disciplinary

MIS;PRM-42;CHAPTER-9
What MIS is?
A Tool
◦ To organize information on routine operations of the
Organization
◦ To provide interfaces to other support systems for
planning and decision making such as
◦ Expert System
◦ Decision Support System
◦ Support the organization's strategic goals and direction.
◦ Intelligence Gathering
◦ Informed Decisions

MIS;PRM-42;CHAPTER-9
How to Understand MIS?
MIS – An Analogy

MIS;PRM-42;CHAPTER-9
Organization of MIS

Student IS
Academic

Finance Aggregation
Finance
and
Account IS

Estate Estate IS
Reports/ Projections
Info. Systems /Trends
Functions
MIS;PRM-42;CHAPTER-9
How MIS can be Organized?

Employee retention, Customer


Satisfaction, Supplier-Producer
Cost, Price,Profit,RoA,RoI….. Intimacy….

MIS;PRM-42;CHAPTER-9
How MIS is Achieved?
An Example on Total Cost

MIS;PRM-42;CHAPTER-9
Risks Associated with MIS
Risks in Managing Information

Timeliness (Information cannot be stored!!!)

Accuracy (Automation enhances Accuracy)

Consistency (Information retrieval is based on SoPs)

Completeness (Information processing needs holistic approach)

Relevance (Roles and context influence decisions)

MIS;PRM-42;CHAPTER-9
MIS Supports Decision Making Process

Decisions Taken

Strategic Unstructured

Tactical Semi-structured

Structured
Operational

MIS;PRM-42;CHAPTER-9
Decision Styles – MIS Based Views

MIS;PRM-42;CHAPTER-9
Structuredness –An Example of
e-Banking through ATM
ACTIVITIES Description Structured Management
ness Actions

User-Centric ◼ Deposit/draw cash


◼Manage their own
Highly ◼Operational
security
◼Get updated account
Structured ◼Predictive

instantly decisions
◼Get access to the account

irrespective of locations ◼Internal

Managerial Semi- ◼Adhoc


◼Volume of trans-actions
ATM/Branch/ Date wise

Structured /Specific
◼No. of overdraw account wise

◼Limit the Cash in ATM

◼ Internal
◼ Open a new ATM Unstructured ◼Infrequent
◼External

MIS;PRM-42;CHAPTER-9
Components of MIS
MIS has Components across layers of
Organization

MIS;PRM-42;CHAPTER-9
TPS Layer of MIS
What it should look for?
• Transaction Processing System (TPS) needs-
• Transaction Owner
• Service Provider
• Transaction Processor (Rules/Logics)
• Transaction Monitor (Databases and Events)
• Transaction Logs
• Transaction Sessions (Cycles)

MIS;PRM-42;CHAPTER-9
Presenting Transactions (an Example of ATM)

MIS;PRM-42;CHAPTER-9
Management Reporting System
Does not look into details of Transactions
Aims at serving Middle Management
Mostly looks at the Routine Reports received
◦ Example: Trial Balance/Raw material utilization product wise/ employee
attendance reports What is a Report?
◦ Stock holding costs product wise •Data / Information arranged
in a sequence or
Preparation of Information Matrix in a manner that
would provide inputs for
Categories of Reports: decisions
◦ Detailed Reports (Journal/ Day Book)
◦ Historical (Party wise account for last 15 days)
◦ Summary( Summary of payments made as on date party wise, Trial Balance)
◦ Exception ( Outstanding advances employee wise)
◦ Prediction/Projections( project a balance sheet, P& L Account)
MIS;PRM-42;CHAPTER-9
MRS Layer in MIS

MIS;PRM-42;CHAPTER-9
Measurements in MRS

MIS;PRM-42;CHAPTER-9
How to Implement MRS?

MIS;PRM-42;CHAPTER-9
ESS Layer of MIS
Traditionally, ESS supports strategic layer and thus unstructured
decisions
◦ It receives inputs from tactical layer
◦ It desires external interfaces
◦ It supports business solutions through
◦ Scenario Building
◦ Alternate paths mapping

ESS has following properties


◦ User Interfaces Component
◦ Database
◦ Menu-driven dashboard
◦ Model

MIS;PRM-42;CHAPTER-9
Some Examples of MIS: Additional
Readings
MIS;PRM-42;CHAPTER-9
MRS Measurements – A CSF View

MIS;PRM-42;CHAPTER-9
MRS in an Organization

MIS;PRM-42;CHAPTER-9
Inputs to an MIS

MIS;PRM-42;CHAPTER-9
Financial MIS –An Example

MIS;PRM-42;CHAPTER-9
Functional Aspects of an MIS

MIS;PRM-42;CHAPTER-9
Overview of a Manufacturing MIS – An Example

MIS;PRM-42;CHAPTER-9
Forms of MIS

Chapter -10
◼ Begin with Enterprise systems … refer
to TAU material
◼ Understand how MIS is related…
◼ In which form one can connect MIS with
the organization

PRM-42, MIS - Chapter 10


Forms of MIS
Belief Systems Enterprise Systems

Boundary
Enterprise Systems
Systems
MCS

Diagnostic Control
Systems
Expert Systems

Interactive Control Decision Support Systems


Systems

PRM-42, MIS - Chapter 10


Business Intelligence and Enterprise Systems

Discuss the Article-HBR on ES


PRM-42, MIS - Chapter 10
Forms of MIS Contd…

PRM-42, MIS - Chapter 10


Expert System

PRM-42, MIS - Chapter 10


EXPERT SYSTEM
◼ It needs knowledge
◼ Knowledge brings in Expertise
◼ Expertise is Scarce
◼ Availability
◼ Costly
◼ Expertise is domain/Problem specific
◼ Multiple problems may look for multiple
specialists

PRM-42, MIS - Chapter 10


Expert System - Explained

PRM-42, MIS - Chapter 10


Expert System Contd..
Knowledge Base
Rules Facts

Search Strategies

User Interface

PRM-42, MIS - Chapter 10


Expert System- How it Works?

PRM-42, MIS - Chapter 10


What Expert System can do…
◼ Provide the user a consultative ambience
◼ Find a near appropriate solution
◼ If problem is appropriate
◼ Guide the user
◼ User cannot influence the decision directly
◼ Information provided by the user however,
influences

PRM-42, MIS - Chapter 10


EXPERT SYSTEM Concluded
◼ Expert System has 2 functions
◼ To draw conclusions
◼ To explain / reason
◼ It needs a dialogue manager
◼ Consultation
◼ Diagnosis
◼ Classification
◼ Explanation
Mostly Computer system based

PRM-42, MIS - Chapter 10


Decision Support System

PRM-42, MIS - Chapter 10


DECISION SUPPORT SYSTEM
◼ Aims at Un-Structured Problems
◼ Infrequent (non-routine problems) but critical
scenario
◼ Analytical
◼ Useful when
◼ Objective is fixed
◼ User needs to know what it wants to do
◼ Time is the essence
◼ External interface is mandatory
◼ Takes the help of TPS and MRS
◼ User takes over the ownership
◼ It has all properties of Expert System

PRM-42, MIS - Chapter 10


Components of DSS

DSS Software Decision Model + Repository


DSS= (Vendor Specific) + (User Specific)

PRM-42, MIS - Chapter 10


DSS Types

◼ Model Driven
◼ Domain specific (improved version of
expert systems)
◼ What-If situations are developed
◼ Data-Driven
◼ Data Mining
◼ On-Line Application Processing (OLAP)
◼ Huge data pool increases complexity
PRM-42, MIS - Chapter 10
Example of DSS

PRM-42, MIS - Chapter 10


Limitations of DSS

◼ Owner’s responsibility to understand


relevance
◼ Decision model is user specific and
hence judged on expertise
◼ It shall provide predetermined
alternatives as per the model

PRM-42, MIS - Chapter 10


Enterprise System

PRM-42, MIS - Chapter 10


ERP- The Concept
◼ “Enterprise Resource Planning”
◼ Addresses enterprise issues
◼ Functional/ domain specific
◼ Automates a particular function
◼ A product

PRM-42, MIS - Chapter 10


ERP: Its Evolution

1960s
• Inventory Management

1970s
• Materials Requirement Planning (MRP-I)

1980s
• Manufacturing Resource Planning (MRP-II)

19990s
• Enterprise Resource Planning (ERP)

2000 and • Extended ERP (SCM, E-Business..)


beyond

PRM-42, MIS - Chapter 10


ERP Planning
ERP Organizational Descriptions ERP
Planning Layer interventions
Layer
Executive Strategic Business decision plans, ESS
MCS plans
Intermediate Tactical Resource allocation OLAP
plans, scheduling,
budgeting and controls,
Product costing, income
and expenditure controls,
inventory controls etc.
Operational Operational Bills of materials planning, OLTP
Transaction planning and
control,

PRM-42, MIS - Chapter 10


BUDGETING AN ERP- Contd..

Modular s/w
COST COMPONENTS
Implementation
4%
45% Annual maintenance
4%

20% 15% Support service


4%
H/w,network,
28% S/w,Logistics
Training

PRM-42, MIS - Chapter 10


ERP and Data Management
production
Aggregated Data
Data Extraction
HR Programme / routine
Analyses
Projections
Comparison
FIN
OLAP Environment

OLTP Environment
PRM-42, MIS - Chapter 10
Vicious Loop in MIS

PRM-42, MIS - Chapter 10


◼ Case on Nestle

PRM-42, MIS - Chapter 10


Nestle Organization Structure

PRM-42, MIS - Chapter 10


ADDITIONAL READING

PRM-42, MIS - Chapter 10


Expert System

PRM-42, MIS - Chapter 10


Expert System Explained..

◼ Knowledge Base (Rules)


◼ Process owners frame rules
◼ Problems are predictable
◼ IF-THEN logic can be applied
◼ To understand a major problem
◼ To sequence the solving technique
Example:
IF notable debtor THEN allow 15 days credit
IF creditor THEN ask for 45 days credit
PRM-42, MIS - Chapter 10
Expert System Explained..
◼ FACTS
◼ Repository on data
◼ Understands relationship
◼ Problem domain specific
◼ Rules/ Logics
◼ Search Engine (User Interface)
◼ Algorithms
◼ Search Criteria (ex: Google Search)
PRM-42, MIS - Chapter 10
ERP & Organization
◼ Organization needs to be understood
◼ Business Philosophy
◼ Organization wide Priorities
◼ Performance Indicators
◼ Employee motivation
◼ Technology Induction
◼ OLTP
◼ OLAP (multi-dimensional)
◼ Mandate: Integration

PRM-42, MIS - Chapter 10


ERP & Organization
◼ A Mirror image of all functions
◼ Aimed at
◼ improving transaction cycles
◼ Introducing technology fully
◼ Provides flexibility

PRM-42, MIS - Chapter 10


ERP: Its Layers

Strategic ERP: Executive Planning

ERP: Intermediate Planning


Tactical

ERP-Operations Planning
Prodn Sales
FA
Operational

PRM-42, MIS - Chapter 10


Structuring Data for ERP
OLAP
popular way of structuring:
monthly
weekly EXTRACTS

Current (2002-03) OLTP

Old Data(1991-
2002) TPS

PRM-42, MIS - Chapter 10


SUMMARY
◼ Foremost duty is to know your organization , its
needs, priorities
◼ ERP can bring revolution, and shocks also
◼ Do not be aggressive in implementing the whole
ERP- try to be modular, but be aware of
limitations of the module, integration capabilities
◼ Try to get local expertise for system integration
◼ Allow vendor to do it on turnkey basis-
◼ Ensure it understands the business & S/w
process!

PRM-42, MIS - Chapter 10


Extended ERP for self reading
◼ Supply Chain Management
◼ E-Business/ E-Commerce
◼ Panorama ERP Report 2021

PRM-42, MIS - Chapter 10


MIS Architecture

Chapter 11
MIS Revisited: Vicious Loop in MIS

MIS-PRM-42-Chapter-11
MIS revisited….
MIS among other issues
is said to be organization Specific
depends on type/structure of organization
It takes various FORMS
It has Components
• TPS [these are studied in architecture]
• MRS
• ESS
MIS planner needs to ensure that
• All components “co-exist”
• Each component grows at its own pace
• Each component is identifiable
• Each component talks to the other

MIS-PRM-42-Chapter-11
Balanced MIS
MIS Architecture: The Connect for Balanced MIS

Barriers Barriers
IS
Organization IT
Architecture
Architecture Architecture

BALANCED MIS

MIS
Architecture

MIS-PRM-42-Chapter-11
Dealing with Architecture!!!!
Architecture – a Discipline
Learning from an architect’s point of view
Definition for Architecture
One of the definitions:
“ An effort to achieve fit or harmony
between FORM and CONTEXT”
Context: The way views are captured
Form: The way views are implemented
A good architecture should bridge the
gap between these two.
SDLC- Role of Architecture
Views of MIS Architecture
Analogy with the architecture of a building:
Architectural View: Ex: I need parcels to be tracked on-line
Abstracted (what is needed- User’s View)
No Implementation mechanism in detail
Structural view( Model): Ex: The parcel shall have global
destinations; cost effective, time
Shows components at macro leveland route optimized,
Relationships
Behavioural View: Ex: Parcel should be tracked with travel time and
waiting time
Some details of Systems behaviour and State
Scope to evaluate (What-If analyses)
Execution View: Ex: Track parcel, place, person handling with
bar code scanners
This talks about Documentation and some macro
description of milestones for execution
How to deal with Architecture?
Three Dimensions Needed…..
Organizational Architecture – Learn from
OU and OB – and we learnt!!!!!
Systems Architecture – take stock of
architectures available and derive your
inference
Technology Architecture – Same as
Systems
Systems Architecture…..
Systems Architecture-Types
Classic Architectures:
It calls for a centralized control of all the
elements
Popularly called as Client-Server architecture
(Possible for small Organizations)
Distributed Architecture
Distributed Architectures
Parts of the MIS are distributed across sites depending
on the requirement locally
All these parts are interconnected globally
Systems Architecture-Types
Clustered Architectures
Is Applicable for heterogeneous Organization
Each Cluster is independent
Decision is decentralized
Example: Reliance Industries, SAIL, Nestle,
CISCO, Federations….

MIS-PRM-42-Chapter-11
IT Architecture Explained…
IT Architecture Explained
Networked Architecture
Clients and servers are connected in a
commonly agreed protocol
All these are identifiable
Data and Applications are generally in
servers
Clients can have local processing power
Distributed Architecture
Extension of Networked and Client-Server
Architectures
This architecture led to cloud and beyond..
IT Architecture-Types
Clustered Architectures
It Follows Clustered Systems Architecture
Amalgamation of Client-Server, Net-worked and
Distributed Architectures

MIS-PRM-42-Chapter-11
IT Architecture Explained…

Classic Grid-Computing;
Cloud Computing

PR+PL Thin Client- WF


Thin Server
Thick Client-
Thin Server
Balanced MIS: Architectural Mapping
Organization Structure Types Systems Architecture IT Architecture

Simple Structure

Machine Bureaucracy

Professional Bureaucracy

Divisionalized

Adhocracy
Quality of Good Architecture
Should be simple
Must be functional (From user’s Point of
View)
A road map for the process, system and
technology infrastructure for
implementation
Must deal with Reuse (No Obsolescence)
Growth
Technology change
Reliable Layers (TPS, MRS, ESS)
How does an Architect contribute?
Thanks………..

MIS-PRM-42-Chapter-11
Understanding and Planning IT

Chapter 12
We shall Discuss…..
• IT and IT Infrastructure
• Databases

IT is defined as …..

Technologies used for managing information which include creation,


storage, transformation, transmission. Information can take the forms of
voice, data, video…………….

PRM-42, MIS; Chapter-12


Understanding business-IT alignment

PRM-42, MIS; Chapter-12


Phases of IT Infrastructure Acquisition
• PHASE 1: BUSINESS STRATEGY
– Business Scope: Includes market where organization operates
– Distinctive Competencies: Organization’s strengths
– Governance: The way organization manages internal resources and liaises with external stakeholders
• PHASE 2: INFORMATION SYSTEM INFRASTRUCTURE
– Administrative Structure: The way organization conducts its business
– Processes: Process flow, ownership and issues relating to improvement
– Skills: Employee’s profile and their competencies, motivation level
• PHASE 3: IT STRATEGY
– Technology Scope: The important information applications existing and scope of having one
– Systemic Competencies: Capabilities to have access to information
– Governance: How IT is used by all the stakeholders
• PHASE 4: IT INFRASTRUCTURE
– Architecture: Priorities on technology, choices that allow application and other IT components and
integration issues
– Processes: Practices adopted to acquire IT
– Skills: IT human resource availability, training issues, culture, retention and turnover as exists

PRM-42, MIS; Chapter-12


Possible Content of an IT plan
• IT architecture
– Hardware,
– Software
• Operating Systems (OS)
• Database
• Application Software
– Network and Communications
• Implementation phases
• Cost benefit analysis
• Total cost of ownership (TCO)
• Return on Investment (RoI)

PRM-42, MIS; Chapter-12


Contemporary Platforms (H/W)
• Grid computing
• Connects geographically remote computers into a single network to combine processing power and create
virtual supercomputer
• Provides cost savings, speed, agility (use unutilized processors, disk space in the network.)

• Cloud computing (utility computing)


• Data permanently stored in remote servers, accessed and updated over the Internet by users
• Organizations using cloud computing need only pay for the computing power they actually use (on-demand
or utility computing)
• Private Cloud, Public Cloud, Hybrid Cloud
• Platform as a Service (PaaS); IaaS; DaaS

• Fog Computing:
• Extension of Cloud Computing --- Localizes servers / services virtually (Near the IoT)

•Edge Computing: Edge computing is a distributed computing framework that brings enterprise
applications closer to data sources such as IoT devices or local edge servers. Extension to Fog Computing towards
user centric processing
• Edge Computing – YouTube
• The Future of Edge Computing - Bing video

PRM-42, MIS; Chapter-12


Contemporary Software Infrastructure
• Software outsourcing
• Three sources: external commercial vendor, online service providers, offshore firms
• Software packages: pre-written set of software available commercially
• Software as a service (SaaS): software delivered over the Internet (Servers are available at a cost to
provide services through internet)
• Offshore outsourcing: usually governed by service level agreement

• PaaS-IaaS-DaaS
• PaaS- Platform as a Service: It gives a platform to work on your applications
• IaaS- Infrastructure as a Service: Includes server space, tools for development
• DaaS- Data as a Service: Provide services on databases– Access to data-including big data

• Autonomic Computing
– Optimizing cost of recovery (around 50% of IT budget is allocated towards this)
– Preventing system crashes (about 40% of crashes are due to operator error) --Needs trained
manpower
– Uses self recovery through parallel processors , RAID (Redundant Array Independent Disk) etc…,
Firewalls…

PRM-42, MIS; Chapter-12


DATABASE MANAGEMENT SYSTEM

PRM-42, MIS; Chapter-12


DBMS – Explained

• DBMS is a sub set of Database


User Applications

Data Base DBMS S/W


• For query processing
• Data Access

Stored Data Base

PRM-42, MIS; Chapter-12


What Databases should do?
• Conform to ACID Tests (Atomicity, Consistency, Isolation and
Durability)
– Atomicity (EX: For example, a transaction may insert data into one table, delete from
another table, and update a third table. Atomicity ensures that either all of these
actions occur or none at all)
– Consistency
• transaction takes the database from one state to the other; if not it forces
ROLLBACK
– Isolation
• Isolation means that concurrent transactions, and the changes made within them,
are not visible to each other until they complete, (Locking….currently field level
locking is possible)
– Durability
• Once a transaction has committed, be sure its effects remain in the database

• Conform to Codd’s Twelve Rules (this compliance is


mandatory for database manufacturers)

PRM-42, MIS; Chapter-12


Database Architectures

PRM-42, MIS; Chapter-12


Database Architectures
AP1 AP2 AP3

DBMS DBMS

OSNET OSNET

LAN
DB DB
OSNET

DBMS *Database is separate


*User requests are served
OSDB centrally for data
THICK-CLIENT
*Clients develop their own
application
database *Took advantage of PC
DB
revolution

Distributed
AP1 AP2 AP3
Database Mainframe
DDBMS DDBMS
Host
OSNET&DB OSNET&DB

network

external external external

conceptual
Front end Processor

internal

Thin-Clients
DB DB DB

PRM-42, MIS; Chapter-12


DATABASE ACCESS and APPLICATIONS

PRM-42, MIS; Chapter-12


Database Applications – Business Intelligence

• Very large databases and systems require special


capabilities, tools
• To analyze large quantities of data
• To access data from multiple systems (BIG DATA…)

• Three key techniques


• Data warehousing
• Data mining (data, text, web mining etc..)
• Tools for accessing internal databases through the Web

PRM-42, MIS; Chapter-12


Data Warehouse
• Data warehouse:
• Stores current and historical data from many core operational
transaction systems
• Consolidates and standardizes information for use across
enterprise, but data cannot be altered
• Data warehouse system will provide query, analysis, and reporting
tools
• Data marts:
• Subset of data warehouse
• Summarized or highly focused portion of firm’s data for use by
specific population of users
• Typically focuses on single subject or line of business

PRM-42, MIS; Chapter-12


Components of a Data Warehouse

PRM-42, MIS; Chapter-12


• Business Intelligence:
• Tools for consolidating, analyzing, and providing access
to vast amounts of data to help users make better
business decisions
• Tools include:
• Software for database query and reporting
• Online analytical processing (OLAP)
• Data mining

PRM-42, MIS; Chapter-12


Data Warehouse
ODBC
Relational
Databases

Optimized Loader

Extraction
Legacy
Data
Filtering

Data Warehouse Analyze


Engine Query
Text
Files

Excel Metadata Repository


Files
Data Marts
3

PRM-42, MIS; Chapter-12


OLAP
• Online Analytical Processing (OLAP)
• Supports multidimensional data analysis
• Viewing data using multiple dimensions
• OLAP enables rapid, online answers to ad hoc queries

PRM-42, MIS; Chapter-12


Data Mining

PRM-42, MIS; Chapter-12


Additional References

PRM-42, MIS; Chapter-12


Evolution of Database

Third
Generation
1965-80:
OLTP Fourth Generation
First Generation
1980- : RDBMS &
1900-55 Client Server
First Automated Data Computing; 1995-
Second Generation OODBMS, Multi-
Processing, Punched 1955-70: Programmed media/ Spatial
Cards Unit Record; File Database,
Oriented/Batch
Processing COBOL etc.)
Primitive:
400 BC- 1900 AD
Record Managers;
Manual/Printing
Press

PRM-42, MIS; Chapter-12


Evolutions in Database Access

1990s and
beyond –
1980s-
OLAP tools,
Database
Data Mining
Access-ODBC
1970s- tools, GUIs,
Terminal Data
Based DSS/EIS, Warehouse
but inflexible
1960s-
inflexible
progarmmes
and Reports

PRM-42, MIS; Chapter-12


Data Hierarchy

PRM-42, MIS; Chapter-12


Databases: Learning from E-R Diagrams
• Computer system organizes data in a hierarchy
• Field: Group of characters as word(s) or number
• Record: Group of related fields
• File: Group of records of same type
• Database: Group of related files
• Record: Describes an instance of an entity
• Entity: Person, place, thing on which we store information (Every table in
a database)
• Attribute: Each characteristic, or quality, describing entity
• E.g., Attributes Date or Grade belong to entity COURSE

PRM-42, MIS; Chapter-12


Traditional Files

PRM-42, MIS; Chapter-12


DML

PRM-42, MIS; Chapter-12


Data Dictionary and DDL

PRM-42, MIS; Chapter-12


Data Mining Basics
• Data mining:
• More discovery driven than OLAP
• Finds hidden patterns, relationships in large databases and
infers rules to predict future behavior
• E.g., Finding patterns in customer data for one-to-one
marketing campaigns or to identify profitable customers.
• Types of information obtainable from data mining
• Associations
• Sequences
• Classification
• Clustering
• Forecasting

PRM-42, MIS; Chapter-12


Data Mining Uses
• Predictive analysis
• Uses data mining techniques, historical data, and
assumptions about future conditions to predict
outcomes of events
• E.g., Probability a customer will respond to an offer or
purchase a specific product
• Text mining
• Extracts key elements from large unstructured data sets
(e.g., stored e-mails)

PRM-42, MIS; Chapter-12


Web Mining Uses
• Web mining
• Discovery and analysis of useful patterns and information
from WWW
• E.g., to understand customer behavior, evaluate
effectiveness of Web site, etc.
• Techniques
• Web content mining
• Knowledge extracted from content of Web pages
• Web structure mining
• E.g., links to and from Web page
• Web usage mining
• User interaction data recorded by Web server

PRM-42, MIS; Chapter-12


DM Example using MS SQL Server

PRM-42, MIS; Chapter-12


DCL

PRM-42, MIS; Chapter-12


IT Infrastructure and Services

Have you experienced any failures?


In getting desired service

In application failures

In usability of the services?


PRM-42, MIS; Chapter-12
Networks. Communication; IT
Infrastructure Management
Chapter-13-14
Study the components:
Networks and Communication
 A critical component IT infrastructure
(and it is Layered)
 Layers:
◼ 1. Physical Layer
◼ Medium (Cables, Distance) – Mainly with “wires”
◼ Convergence
▪ Voice, Data, Video
▪ Multi-media
◼ User Interfaces
▪ Geography
▪ Time
▪ The person who uses it

Chapter 13-14;MIS; PRM-42


Study the components:
Networks and Communication
 Layers (Contd…)
◼ 2. Network Layer
◼ How should the network work?
▪ Local Area (LAN)
▪ INTRANETs (Going beyond the physical
space), but internal
◼ Principles
▪ There are standards (OSI)
▪ There are protocols (TCP/IP etc..)
◼ Components: Routing (Multiple Networks), Gateways
(Multiple Agencies/ Organizations..)…

Chapter 13-14;MIS; PRM-42


BACKBONE NETWORK
 Backbone Characteristics:
◼ 3. Access Layer
◼ Local Network
◼ Deals with End Users (Hosts)
◼ 4. Distribution Layer (Different Layers)
◼ Interconnections
◼ 5. Core Layer (Virtual LANs)
◼ Highway (ISP/ Large Networks)

Chapter 13-14;MIS; PRM-42


Backbone Networks

Server

SWIT CH
SWIT CH
PC

Token Ring HUB

Router
PC
PC
DISTRIBUTION CORE LAYER
ACCESS LAYER LAYER

Server

PC

Token Ring HUB


SWIT CH
SWIT CH

PC
PC

Chapter 13-14;MIS; PRM-42


Study the components:
Networks and Communication
 Communications:
◼ Medium: Bounded, Unbounded
◼ Mode: Simplex, Duplex (Full, Half)
◼ Connectivity – Quality, Availability
 Types
◼ Circuit Switched (Dial-up: PSTN, Integrated Services
Digital Network(ISDN)
◼ Dedicated (Leased): VPN, Broadband
◼ Satellite Communication
 Up-Link (256 kbps --- 1gbps)
 Down-link (1mbps- 1000 gbps)
Chapter 13-14;MIS; PRM-42
INTERNETWORKING

LAN
Modem LAN
Modem

COMMON PUBLIC
NETWORK
LAN Modem
Modem
Modem
LAN

Modem

Modem
LAN
LAN Modems are
now ROUTERS
PSTN: LEASED CIRCUITS
Chapter 13-14;MIS; PRM-42
BANDWIDTH
 Range of frequencies

Frequency Band
> In HF or < in LF
Will result in > in
Bandwidth

f1(Lower) f2 (higher)
 Voice Circuit:
◼ Human can detect 0-20KHz (Analog)

Chapter 13-14;MIS; PRM-42


BANDWIDTH
 Broadband Circuit
Guard-band

Band1 Band2

Broad band: Combination of Base band Ciruits


Uses Multiplexers (FDM/TDM)

Chapter 13-14;MIS; PRM-42


Broadband Example: Digital
Subscriber Lines (DSL)
CUSTOMER PREMISE EXCHANGE / SERVICE
PROVIDER

T ELEPHONE EXCHANGE
Line Splitter

Mul ti plexer

DSL M ode m

Telephone

ISP/ DAT A Servi c e

Home Computer

Chapter 13-14;MIS; PRM-42


VIRTUAL PRIVATE NETWORKS
VPN
TUNNEL

INTERNET

VPN TUNNEL

V PN De vice

ISP
V PN De vice
V PN De vice

LAN

LAN

Chapter 13-14;MIS; PRM-42


Moving from Wire to Wireless
 Wire Broadband (Voice is the main service)
◼ DSL,ADSL (on Twisted pair, Co-axial Cable,
Fiber Optic)
 Wireless Broadband (Voice is the main service)
◼ Broadband (multiple channel)
◼ Baseband (single channel)
(Main Consideration: Speed, Latency,
Distance, Geography and QoS)
 LTE --- DATA is central and Voice is complementing -3.5g
and above
Chapter 13-14;MIS; PRM-42
Wireless Communication

• Use Physical /Network/


Backbones and a GRID

• MTSOs provide base for


cloud/Fog computing
• Each Cell can facilitate
EDGE computing

Chapter 13-14;MIS; PRM-42


IT Infrastructure
 Rationale for creating Infrastructure:
◼ Availability of Services on Demand
◼ Policy Driven
◼ Longer Life Cycle
◼ Quality of Service
◼ Sectoral
◼ Growth without affecting services
◼ Related to Economy (national/regional..)
Should IT be termed as Infrastructure ???
Chapter 13-14;MIS; PRM-42
IT Infrastructure Management:
Phases
 Phase-1: Active Management:-
◼ Case-to-case basis
◼ Weak relationship to the roadmap
◼ Less planning
 Phase-2: Effective Management:-
◼ Process and technology are given
importance
◼ Integration is not the main issue

Chapter 13-14;MIS; PRM-42


IT Infrastructure Management:
Phases
 Phase-3: Responsive Management:-
◼ Emphasis on process automation
◼ Auditing is in the agenda
◼ Planning for management solutions
 Phase-4: Business-driven
Management-
◼ Systems and Technology should align
◼ Importance on core processes

Chapter 13-14;MIS; PRM-42


Evaluation of ICT Infrastructure
 Technology should work on
◼ Bridging information islands
 Integrative
 Works on Standards
◼ Platforms (OS, networks…)
◼ Applications (domain specific..)
◼ Middleware APPL ICAT IONS

(Databases, frontends, Groupware..) D ATAB ASE

MIDDLEWARE
F R ON TEN D S+
TOOL S

GR OU PW AR E

OS

Chapter 13-14;MIS; PRM-42


Capacity Planning of ICT
Infrastructure
GRID/CLOUD/FOG/Edge …

ISP NETWORK
DATABASE
AND SERVER
COMMUNICATION

SERVICES

APPLICATION
USER INTERFACE SERVER

NETWORK MGMT.

Chapter 13-14;MIS; PRM-42


Planning & Implementation of
MIS
Chapter-15-16
PLANNING MIS

Organization Information Systems Technology


Structure Infrastructure Infrastructure
Structure

Organization MIS Technology


Architecture Architecture Architecture

Organization MIS Model IT Model


Model
Organizational Plan Systems Plan IT Plan
MIS Plan

Chapter 15-16;MIS; PRM-42


PART-A

Chapter 15-16;MIS; PRM-42


Understanding Organization
 Structure
 Understand Environment..
◼ Mission…
◼ Life Cycles – structure, process, product,
systems
 Understand Users/stakeholders
◼ All the tools at disposal like Porter's 5
forces model….
 Understand Architecture
Chapter 15-16;MIS; PRM-42
Example Showing effect of Organization
Architecture and A Model

Head Quarter

Branches

Chapter 15-16;MIS; PRM-42


Distinguishing Features of Business
and Development Organizations

What would happen


if development
organizations adopt
this view?

Traditional View of Organization


Chapter 15-16;MIS; PRM-42
What should be done before going to
Part-B!
 Understanding Barriers at this stage
◼ Inability to identify right structure and
planning for future structures….
◼ Inability to identify a good architecture…
◼ Inadequate listing of stakeholders, users
◼ Inability to adequately identify
organizational issues – Business/
Development

Chapter 15-16;MIS; PRM-42


PART-B

Chapter 15-16;MIS; PRM-42


Understanding Systems
 Systems Approach to Organization (GST)

◼ Traditional Approach (Task oriented)


◼ Functional Approach (Domain Oriented)
 Systems Thinking (vis-a-vis traditional Approach)

◼ System is the base


◼ Entropy
◼ Cybernetics (Organizational and Management)
 Systems Views – Systemic and Systematic

Chapter 15-16;MIS; PRM-42


How is it relevant to MIS Plan
 Have systems approach to an
organization
 Explore organization with traditional
approach and through systems
thinking
 Assess if “cybernetics” works
◼ Organizational and Management

Chapter 15-16;MIS; PRM-42


Systems approach to Organization
Apply OMNIS Model

Chapter 15-16;MIS; PRM-42


Application of OMINS Model and Thereafter
 Systemic Views through MCS
 Articulate sharing of belief system, boundary system,
diagnostic system and interaction system with individual
Information System

 Systematic views through Functional Systems


◼ Identify Information Systems and relate to MCS
◼ Find possibilities for decomposition, modularity,
coupling and cohesion opportunities
◼ Create context diagrams (functional and
organizational)
◼ Create Systems Matrix
 Identify Systems Architecture at this stage

Chapter 15-16;MIS; PRM-42


Application of OMINS Model and Thereafter

 Identify Processes for each system


◼ Core, support and management processes
◼ Process Table(s) with details of rules and logics
◼ Create Process Matrix
 Identify Transactions
◼ Create Transaction Tables
◼ Create sequence diagrams

Chapter 15-16;MIS; PRM-42


Application of OMINS Model and Thereafter

 Plan events and the inputs will be


from
◼ MCS
◼ Functional Systems, transactions,
process rules and logics
 Plan Information Matrices for roles
 Organize MIS with formalizations
(Layering; Components; Decision
Styles)
Chapter 15-16;MIS; PRM-42
Application of OMINS Model and Thereafter

 Prepare information management


scenarios and apply data management
principles
◼ Inputs from Event tables
 Derive data models (identify data
architecture as well)
 Prepare data matrix to implement
information matrices

Chapter 15-16;MIS; PRM-42


Think Enterprise Wide….
 Describe “Fitness” between Organization and
Systems Architecture
 Identify “FORMS” of Systems for the
organization
◼ Enterprise Systems
 Describe the need for “Enterprise Systems”
 Examine if ERP is necessary
◼ Expert Systems
◼ DSS

Chapter 15-16;MIS; PRM-42


Think Enterprise Wide…

 Identify architectures for databases,


hardware, software, networks
 Examine scope for “Balanced MIS”
 Understand Barriers for Technology
Induction
◼ Inability to address issues for
 “Balanced MIS”
 Life cycles of IT components
 TCO
Chapter 15-16;MIS; PRM-42
What should be done before going IT Plan
–Part C!

 Understanding Systems Barriers


◼ Inappropriate identification of MCS and functional systems,
◼ Inadequate listing of process, rules, logics and inadequate
assessment of systematic performance measures,
◼ Inadequate designs of matrices for systems and processes,
◼ Inadequate articulation of transactions, future needs to
manage transactions with technologies (mode, medium,
point of transaction and frequency),
◼ Inappropriate articulation of information matrices,
information flow and,
◼ Indentifying forms of MIS, and
◼ Identifying appropriate systems architecture.

Chapter 15-16;MIS; PRM-42


What should be done before going IT
Plan-Part C!
 Understanding Systems Barriers
◼ Inability to identify right information
systems, especially for CORE process….
◼ Inability to plan:
 information matrix for each role…
 Process table for each function and link
 Scorecards and Dashboards…
 Transaction Table in each function and
organize TPS

Chapter 15-16;MIS; PRM-42


PART-C

Chapter 15-16;MIS; PRM-42


What Should be Included in
Part C!
 Learn about IT architecture from
Balanced MIS plan
 Plan
◼ Hardware, Software(OS and applications),
Networks, Databases
◼ Bring Standards
◼ Explore adoption of Cloud …
◼ Explore options for SaaS, PaaS, IaaS, DaaS
 Explore the phase of IT infrastructure
Chapter 15-16;MIS; PRM-42
Implementation of MIS Plan
Organization’s MIS Mission
Mission

OMNIS Modelling

Identification of Identification of
Functions and Processes information Systems,
Processes

Organization Information System


Architecture Architecture

Technology
MIS Architecture Architecture

MIS Plan

Chapter 15-16;MIS; PRM-42


How to Execute Plan?
 It requires
◼ MIS Mission statement
◼ Formation of Implementation Team and
Steering Committee
◼ Examine options for Enterprise Systems

Chapter 15-16;MIS; PRM-42


How to Execute Plan?
 Examine issues related to Build Vs.
Buy; Own Vs. Outsource
 Prepare TCO (look for components discussed in the book)
for each scenario
 Prioritize Information Systems
 Create teams for SDLCs
 Examine CSFs and User level
acceptance
Chapter 15-16;MIS; PRM-42
End of MIS Course………………God Bless you all

Chapter 15-16;MIS; PRM-42

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