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1.chapter 1 Merged
1.chapter 1 Merged
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.
Disciplines involved in
contemporary MIS
Computer Science
OB / HR, Economics, Mathematics,
Statistics,
Sociology, Psychology
Manage Information
Gather, store, process and use
Induce appropriate
technologies
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
It helps in
Providing Structured-ness in the organization (systematic)
Dealing with Systemic Issues
Identifying possible areas for IT intervention
1-3
Chapters
9-11
Organization MIS Model IT Model
Model
(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
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
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
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
Reference Points
Standards
Benchmarks
SESSION-1, MIS, PRM-42
FOR YOUR ATTENTION…………
◼ Development Organizations
❑ relate to Society in terms of
◼ poverty,
◼ environmental sustainability ,
❑ Society
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:
• 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
Operations
Accounts Human
Finance Production Marketing Sales Materials and
and Costing Resource
Maintenance
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)
CHAPTER-4-MIS-PRM42
General Systems Theory
Organizational MIS
Across Functions…
(Systemic)
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
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
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
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?
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
CHAPTER-4-MIS-PRM42
Systems Thinking: A Holistic View
Presentation of the Model:
Sales- [[Cost of Goods Sold] + [Overheads]]= [Profit]
Discussions:
Generally speaking :
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)
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
CHAPTER-4-MIS-PRM42
Steady State and Entropy in Systems
Example of Entropy
◦ Competitor changes price
◦ Changes are recorded
◦ Process ignores the change
◦ This ignorance is called 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
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???
chapter-5,MIS-PRM42
What is Data?
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 Architecture
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:
chapter-5,MIS-PRM42
An Approach to E-R Modelling
Problem
E-R Modelling
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
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
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
combined with
chapter-5,MIS-PRM42
Report Table and Information
Matrix
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
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
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
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
Process-LCs
Product-LCs
IS-LC
OLC IT-LC
Chapter-6,MIS, PRM42
IS Modeling
OMNIS Model
Chapter-6,MIS, PRM42
Components of Functional System
Functions
Processes
Transactions Functional System
Events
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
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
XX999AAA4 -----
XX999AAA5 ------
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
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
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
Interactive
Control
Can we formalize expected Systems
solutions and
Create message Portfolios?
Organization
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
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
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
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
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
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
Involvement
Involvement
of
of
Users
IT- Centre
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
Information Process # 12
system # n SDLC # 121
SDLC # 122
Chapter-7,MIS, PRM-42
SDLC- The Limitations
Chapter-7,MIS, PRM-42
SDLC- The Limitations
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
Chapter-8-MIS-PRM-42
Expectations from Quality Systems
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
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
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?
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)
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?
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
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
instantly decisions
◼Get access to the account
Structured /Specific
◼No. of overdraw account wise
◼ 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
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
Boundary
Enterprise Systems
Systems
MCS
Diagnostic Control
Systems
Expert Systems
Search Strategies
User Interface
◼ 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
1960s
• Inventory Management
1970s
• Materials Requirement Planning (MRP-I)
1980s
• Manufacturing Resource Planning (MRP-II)
19990s
• Enterprise Resource Planning (ERP)
Modular s/w
COST COMPONENTS
Implementation
4%
45% Annual maintenance
4%
OLTP Environment
PRM-42, MIS - Chapter 10
Vicious Loop in MIS
ERP-Operations Planning
Prodn Sales
FA
Operational
Old Data(1991-
2002) TPS
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
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 …..
• 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
• 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…
DBMS DBMS
OSNET OSNET
LAN
DB DB
OSNET
Distributed
AP1 AP2 AP3
Database Mainframe
DDBMS DDBMS
Host
OSNET&DB OSNET&DB
network
conceptual
Front end Processor
internal
Thin-Clients
DB DB DB
Optimized Loader
Extraction
Legacy
Data
Filtering
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
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
In application failures
Server
SWIT CH
SWIT CH
PC
Router
PC
PC
DISTRIBUTION CORE LAYER
ACCESS LAYER LAYER
Server
PC
PC
PC
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)
Band1 Band2
T ELEPHONE EXCHANGE
Line Splitter
Mul ti plexer
DSL M ode m
Telephone
Home Computer
INTERNET
VPN TUNNEL
V PN De vice
ISP
V PN De vice
V PN De vice
LAN
LAN
MIDDLEWARE
F R ON TEN D S+
TOOL S
GR OU PW AR E
OS
ISP NETWORK
DATABASE
AND SERVER
COMMUNICATION
SERVICES
APPLICATION
USER INTERFACE SERVER
NETWORK MGMT.
Head Quarter
Branches
OMNIS Modelling
Identification of Identification of
Functions and Processes information Systems,
Processes
Technology
MIS Architecture Architecture
MIS Plan