Mis Unit 1 Foundation of Is - Long Notes

BCA-304 Management Information System
Bachelor in Computer Application

Semester-3
MANAGEMENT INFORMATION SYSTEM
Lecture Plan (Unit-I)

Course: BCA Semester-3
Paper-304 Subject: MANAGEMENT INFORMATION SYSTEM
Foundation of Information System: Introduction to Information System in Business,

Fundamentals of Information System, Solving Business Problems with Information
System, Types of Information System, Effectiveness and Efficiency Criteria in
Information System.
MIS Overview: Definition and Concept of a Management Information System, MIS

versus Data Processing, MIS & Decision Support System, MIS & Information Resources
Management, End User Computing, Structure of a Management Information system.
Lecture-1 Foundation of Information System-Three vital roles of Information

Systems
Lecture-2 Components of Information Systems
Role of e-business in Business
Lecture 3, 4
Lecture-5 Information System Framework

Lecture-6 Developing successful information system solutions
Lecture-7 Types of Information Systems
Lecture-8 Managerial Challenges of IT, Solution to Develop IS.
Lecture-9 Challenges And Ethics Of IT, Effectiveness And Efficiency Criteria

In IS
Lecture-10 System, Data & Information
Lecture-11 Stakeholders in the Business Environment
Lecture-12 Basic Strategies in the Business Use of Information Technology
Lecture-13 Solving Business Problems with Information Systems
Lecture-14
Lecture-15
City Group of Colleges Vishal Agarwal

Lecture-1
Q1. Explain Information Systems?

Q2 Explain three vital roles of Information Systems?
Q3: Explain the relation between IT(Information Technology), IS(Information
Systems), Firm & Business Environment?
An information system (IS) can be any organized combination of people, hardware,

software, communications networks, data resources, and policies and procedures that
stores, retrieves, transforms, and disseminates information in an organization.
People rely on modern information systems to communicate with one another using a variety
of physical devices (hardware) , information processing instructions and procedures
(software) ,communications channels (networks) , and stored data (data resources) .
IS help managers in:
1- Decision making
2- Co-ordination & Control
3- Analyzing problems
4- Visualizing complex subjects
5- Creating new products.
Three vital roles that information systems can perform for a business enterprise:
• Support of business processes and operations.
• Support of decision making by employees and managers.
• Support of strategies for competitive advantage.

IT- IS- Firm- Business Environment.
IT- Information Technology is the hardware and software used by information systems.
IS- Information system - can be any organized combination of people, hardware,

software, communications networks, data resources, and policies and procedures that
stores, retrieves, transforms, and disseminates information in an organization.
Firm- product or services for external customers.
Business environment : Firm itself ,competitors, suppliers, customers, & social economic
conditions.
Business
Environment
Firm
IS
IT

Lecture 2
Q1 Explain the Components of IS?
Components of Information Systems:include
1- Information System Resources: -which are People, hardware, Software, data &
network.
2- Information System Activities- include
a) Input of Data Resources

b) Processing of Data into Information
c) Output of information Products
d) Storage of Data Resources
e) Control of System Performance
3- Information Products they produce: product is the result of an operation or

purpose or objective for which the system was designed.

Lecture 3 & 4
Q1 : Explain Role of e-business in Business?
The Role of e-Business in Business:

Many businesses today are using Internet technologies to Web-enable their business
processes and create innovative e-business applications .
We define e-business as. any online exchange of information, money, resources, services,
or any combination thereof falls under the e-business umbrella.
The Internet and Internet-like networks—those inside the enterprise (intranet) and
between an enterprise and its trading partners (extranet) — have become the primary
information technology infrastructure that supports the e-business applications of many
companies.
Companies rely on e-business applications to
(1) reengineer internal business processes,
(2) implement e-commerce systems with their customers and suppliers, and
(3) promote enterprise collaboration among business teams and workgroups.
E-commerce is the buying, selling, marketing, and servicing of products, services, and
information over a variety of computer networks. Many businesses now use the Internet,
intranets, extranets, and other networks to support every step of the commercial process,
For example, e-commerce systems include Internet Web sites for online sales, extranet
access to inventory databases by large customers, and the use of corporate intranets by sales
reps to access customer records for customer relationship management.
Enterprise collaboration systems involve the use of software tools to support

communication, coordination, and collaboration among the members of networked
teams and workgroups. A business may use intranets, the Internet, extranets, and other
networks to implement such systems.
For example, employees and external consultants may form a virtual team that uses a
corporate intranet and the Internet for e-mail, videoconferencing, e-discussion groups, and
Web pages of work-in-progress information to collaborate on business projects.

Lecture 5:
Q1: Explain Information System Framework for Business Professionals:
IS FRAMEWORK FOR BUSINESS PROFESSIONALS:
A framework is a brief set of ideas and assumptions for organizing a thought process about
a particular type of thing or situation.
There are 5 area IS framework for summarizing any information system
Foundation Concepts: Fundamental behavioral, technical, business, and managerial

concepts about the components and roles of information systems.
Information Technologies. Major concepts, developments, and management issues in

information technology—that is, hardware, software, networks, data management, and many
Internet-based technologies
Business Applications. The major uses of information systems for the operations,
management, and competitive advantage of a business
Development Processes. How business professionals and information specialists plan,

develop, and implement information systems to meet business opportunities.
Management Challenges. The challenges of effectively and ethically managing information

technology at the end-user, enterprise, and global levels of a business.

Lecture 6
Q1 Explain The Expanding Role of IS(Information System) In Business and Management?

Q2 Give Solution to Develop Information System?
The Expanding Role of IS In Business & Management

DEVELOPING INFORMATION SYSTEMS SOLUTIONS:
Developing successful information system solutions to business problems is a major
challenge for business managers and professionals today.
Several major activities must be accomplished and managed in a complete IS

development cycle.
In this development process, end users and information specialists design information system
applications on the basis of an analysis of the business requirements of an organization.
Examples of other activities include investigating the economic or technical feasibility of a

proposed application, acquiring and learning how to use any software necessary to
implement the new system, and making improvements to maintain the business value of a
system.

Lecture 7
Q1 Explain types of Information System?
Types of Information Systems
Several types of information systems can be classified as either operations or management

information systems.
Operations support systems
The role of a business firm’s operations support systems is to process business transactions,
control industrial processes, support enterprise communications and collaborations, and
update corporate databases efficiently.
A summary of operations support systems with examples
Transaction processing systems. Process data resulting from business transactions, update
operational databases, and produce business documents. Examples: sales and inventory
processing and accounting systems.
• Process control systems. Monitor and control industrial processes. Examples: petroleum
refining, power generation, and steel production systems.

• Enterprise collaboration systems. Support team, workgroup, and enterprise

communications and collaborations. Examples: e-mail, chat, and videoconferencing
groupware systems
Management Support Systems
When information system applications focus on providing information and support for
effective decision making by managers, they are called management support systems .
A summary of management support systems with examples.
• Management information systems. Provide information in the form of prespecified

reports and displays to support business decision making. Examples: sales analysis,
production performance, and cost trend reporting systems.
• Decision support systems. Provide interactive adhoc support for the decision-making
processes of managers and other business professionals. Examples: product pricing,
profitability forecasting, and risk analysis systems.
• Executive information systems. Provide critical information from MIS, DSS, and other
sources tailored to the information needs of executives. Examples: systems for easy access
to analyses of business performance, actions of competitors,and economic developments to
support strategic planning.
Other Categories of Information Systems
Expert systems. Knowledge-based systems that provide expert advice and act as expert
consultants to users. Examples: credit application advisor, process monitor, and diagnostic
maintenance systems.
• Knowledge management systems. Knowledge-based systems that support the creation,

organization, and dissemination of business knowledge within the enterprise.Examples:
intranet access to best business practices, sales proposal strategies, and customer problem
resolution systems.

• Strategic information systems. Support operations or management processes that provide

a firm with strategic products, services, and capabilities for competitive
advantage.Examples: online stock trading, shipment tracking, and e-commerce Web
systems.
• Functional business systems. Support a variety of operational and managerial applications

of the basic business functions of a company.Examples: information systems that support
applications in accounting, finance, marketing, operations management, and human resource
management.

Lecture 8
Q 1 Explain Managerial Challenges of Information Technology?

Q2 Give Solutions to Develop Information System?
Managerial Challenges of Information Technology:
Challenges and opportunities that business managers face in managing information

systems and technologies to meet business goals.

DEVELOPING INFORMATION SYSTEMS SOLUTIONS:
Developing successful information system solutions to business problems is a major
challenge for business managers and professionals today.
Several major activities must be accomplished and managed in a complete IS

development cycle.
In this development process, end users and information specialists design information system
applications on the basis of an analysis of the business requirements of an organization.
Examples of other activities include investigating the economic or technical feasibility of a

proposed application, acquiring and learning how to use any software necessary to
implement the new system, and making improvements to maintain the business value of a
system.

Lecture 9
Q 1 Explain Challenges And Ethics Of IT?

Q2 Explain Effectiveness And Efficiency Criteria In Information System ?
CHALLENGES AND ETHICS OF IT
As a prospective manager, business professional, or knowledge worker, you will be
challenged by the ethical responsibilities generated by the use of information technology.
For example,:
what uses of information technology might be considered improper, irresponsible, or

harmful to other people or to society?
What is the proper business use of the Internet and an organization’s IT resources?
What does it take to be a responsible end user of information technology?
How can you protect yourself from computer crime and other risks of information
technology?
These are some of the questions that outline the ethical dimensions of information
systems.

EFFECTIVENESS AND EFFICIENCY CRITERIA IN INFORMATION SYSTEM
Efficiency means saving TIME, MONEY,OR EFFORT,
Effective means how well the job gets done - that is the quality of output.
Success of an information system should not be measured only by its efficiency in terms of
minimizing costs, time, and the use of information resources.
Success should also be measured by the effectiveness of the information technology in

supporting an organization’s business strategies, enabling its business processes, enhancing
its organizational structures and culture, and increasing the customer and business value
of the enterprise.
The relationship between effectiveness and efficiency is that :
Effectiveness is a measure of ’goodness’ of output ,
while Efficiency is a measure of the resources required to achieve the output. i.e. the use
of system resources to get results.
Effectiveness represents an external view related to whether the product is what the
customers really wants.
Efficiency represents an internal view related to the use of resources within the information
systems that produces a particular output.

Lecture 10
Q 1 Write a short note on System?

Q 2 Explain Data & Information?
System:
A system is defined as a set of interrelated components, with a clearly defined boundary,

working together to achieve a common set of objectives by accepting inputs and producing
outputs in an organized transformation process .
Systems have three basic functions:
• Input involves capturing and assembling elements that enter the system to be
processed. For example, raw materials, energy, data, and human effort must be
secured and organized for processing.
• Processing involves transformation processes that convert input into output. Examples
are manufacturing processes, the human breathing process, or mathematical
calculations.
• Output involves transferring elements that have been produced by a transformation

process to their ultimate destination. For example, finished products, human
services, and management information must be transmitted to their human users.
The system concept becomes even more useful by including two additional elements:
feedback and control.
A system with feedback and control functions is sometimes called a cybernetic system, that
is, a self-monitoring, self-regulating system.
Feedback is data about the performance of a system.
For example, data about sales performance are feedback to a sales manager.
Control involves monitoring and evaluating feedback to determine whether a system is

moving toward the achievement of its goal. The control function then makes the necessary
adjustments to a system’s input and processing components to ensure that it produces
proper output.
For example, a sales manager exercises control when reassigning salespersons to new sales
territories after evaluating feedback about their sales performance.

Data versus Information.
The word data is the plural of datum.
Data are raw facts or observations, typically about physical phenomena or business
transactions.
Data are objective measurements of the attributes (the characteristics) of entities (e.g.,
people, places, things, events).
Information -is data that have been converted into a meaningful and useful context for
specific end users. Thus, data are usually subjected to a value-added process ( data
processing or information processing ) during which
(1) their form is aggregated, manipulated, and organized;
(2) their content is analyzed and evaluated; and
(3) they are placed in a proper context for a human user.

Lecture 11
Q 1 Write Stakeholders in the Business Environment?
Stakeholders in the Business Environment
A business is an example of an organizational system in which economic resources (input)

are transformed by various business processes(processing) into goods and services
(output).
Information systems provide information(feedback) about the operations of the system to

management for the direction and maintenance of the system (control) as it exchanges inputs
and outputs with its environment.

System exists and functions in an environment containing other systems. If a system is one
of the components of a larger system, it is a subsystem , and the larger system is its
environment.
Several systems may share the same environment. Some of these systems may be connected
to one another by means of a shared boundary, or interface .
Open system is a system that interacts with other systems in its environment.
The system exchanges inputs and outputs with its environment. Thus, we could say that it is
connected to its environment by input and output interfaces.
Finally, a system that has the ability to change itself or its environment to survive is an
adaptive system .

Lecture 12
Q 1 Explain Basic Strategies in the Business Use of Information Technology?
Basic Strategies in the Business Use of Information Technology

Lecture 13
Q 1 Explain Solving Business Problems with Information Systems?
Solving Business Problems with Information Systems
. The Scientific Method vs. The Systems Approach
The Scientific Method
The systems approach is based on the established problem-solving methodology known as

the
scientific method. The scientific method consists of five steps:
1. Recognize phenomena in the real world.

2. Formulate a hypothesis about the causes or effects of the phenomena.
3. Test the hypothesis through experimentation.
4. Evaluate the results of the experiments.
5. Draw conclusions about the hypothesis.
The Systems Approach
The systems approach is a modification of the scientific method. It stresses a systematic

process
of problem solving. Problems and opportunities are viewed in a systems context. Studying a
problem and formulating a solution becomes an organized system of interrelated activities,
such
as
1. Define a problem or opportunity in a systems context.

2. Gather data describing the problem or opportunity
3. Identify alternative solutions.
4. Evaluate each alternative solution.
5. Select the best solution.
6. Implement the selected solution.
7. Evaluate the success of the implemented solution.
It is important to realize that the steps of the systems approach may overlap each other. Some
activities can be used in more than one step of the process. The completion of activities in
one
step may extend into the performance of another. Sometimes it may be necessary to cycle
back to a previously completed step for another try.
The activities and steps of the systems approach are typically grouped into a smaller
number of stages of problem solving:
A Understanding a problem or opportunity (steps 1 and 2).

B Developing a solution (steps 3 through 5).
C Implementing a solution (steps 6 and 7).

A UNDERSTANDING A PROBLEM OR OPPORTUNITY
To solve a problem or pursue an opportunity requires a thorough understanding of the

situation at hand. This implies viewing the problem/opportunity in a systematic fashion
within a systems
context.
1. Defining Problems and Opportunities . Problems and opportunities must be identified

when using the systems approach. Symptoms must be separated from problems. Symptoms
are merely signals of underlying problems.
a. A problem is a basic condition that causes undesirable results.

b. An opportunity is a condition that presents the potential for desirable results.
2. Gathering Data and Information .
Data and information need to be captured to gain

sufficient background into the problem or opportunity situation. In the context of a
business systems problem, information gathering may encompass the following:
a. Interviews with employees, customers, and managers.

b. Questionnaires to appropriate end users in the organization.
c. Personal observation or involvement in business operations.
d. Examination of documents, reports, procedures manuals, and other documentation.
e. Inspecting accounting and management reports to collect operating statistics, cost
data, and performance results.
f. Development, manipulation, and observation of a model of the business operations or
systems affected by the problem or opportunity
.
3.Identifying Organizational Systems. In the systems approach, a problem or opportunity
must be viewed in a systems context. To understand a problem or opportunity, you must
understand both the organizational systems and environmental systems in which a problem or
opportunity arises. You must have a systemic view of the situation
.
a. A Business as a System. A business faced with a problem or opportunity needs to
be viewed as an organizational system operating within a business environment This concept
helps us isolate and better understand how a problem or opportunity may be related to the
basic system components of a business.
b. Environmental Systems. A business is a subsystem of society and is surrounded

by other systems in the business environment. Proper interrelationships with the
economic, political, and social stakeholders within the environment should be
maintained. These stakeholders that interact with a business need to be identified, to
determine their effect on a problem or solution.

c. Organizational Subsystems. Typically a business is subdivided into subdivisions that

compose the organizational subsystem.
i. These typically represent functional areas such as marketing, manufacturing, and

finance, but can also represent geographic areas, product lines, distribution
facilities, work groups, etc.
ii. Decomposition is the process of identifying the boundaries of subsystems within a
business and determining the relationships between the subsystems. Those
subsystems most affected by the problem or opportunity under consideration need
to be identified.
(1). Boundaries - for responsibility.

(2). Relationships - between subsystems.
4.. Relationships Between Systems. A black box approach aids systems professionals in
analyzing the relationships and interconnections between subsystems within the firm. In
otherwords, the processing component remains a black box while inputs and outputs of
subsystems are studied.
i. Coupling - the process of determining how tight the functions of

subsystems are connected. e.g., JIT - requires a close association between
inventory control and manufacturing.
ii. Decoupling - the process of loosening the connections between systems.

e.g., E-Mail may loosen communications connections within the organization. People can be
more efficient by having differing avenues ofcommunication available to them.
5.. Evaluating Selected Systems. To understand a problem and solve it, you should
try to determine if basic system functions are being properly performed. This should be
donewithin a systems context by looking at inputs, processing, outputs, feedback, and control
structures.
i. Inputs.
ii. Processing capabilities.
iii. Outputs.
iv. Feedback.
v. Control structures.
6. Determining Objectives, Standards, and Constraints - a systems approach must

determine firm objectives, identify standards, and recognize constraints. Figure 4
demonstrates the general systems model of the firm with its interrelated components.
i. Objectives - are accomplishments a system is supposed to achieve. These need to

be stated in clear unambiguous (general) terms. e.g., a good performance for this
season.
ii. Standards - are specific and quantitative measures with which the objectives
achievements can be compared. Standards are used to measure the progress a firm

makes as it tries to achieve objectives of the system. Standards are needed for
systems control.
iii. Constraints - are restrictions on the form and content of a solution
(1). External - constraints required by law or industry conventions.

(2). Internal - constraints that arise due to the scarcity and allocation of organizational
resources or contention among departments.
B DEVELOPING A SOLUTION
Once you understand a problem or opportunity, you can develop an appropriate solution.
1. Designing Alternative Solutions. Jumping immediately from problem definition to a

single solution limits your options and robs you of the chance to consider the advantages
and disadvantages of several alternatives. Of course, having too many alternatives can
obscure the best solution. Alternative solutions may come from past experience, advice
of others, simulation of business operations models, and your own intuition and
ingenuity. The "doing nothing" option is also a valid alternative.
2.. Evaluating Alternative Solutions. To identify the best solution, the proposed alternatives
need to be evaluated. The goal of evaluation is to determine how well each alternative
solution helps the firm and its selected subsystems meet their objectives.
a. Evaluation criteria - should reflect the firm's objectives and constraints. Figure 5
illustrates a simple example of the evaluation of two alternative solutions using
several criteria.
i. Each alternative needs to be evaluated upon how well it meets the evaluation
criteria.
ii. Criteria may be weighted on their relative importance in achieving firm goals and
objectives.
b. Cost Benefit Analysis - Every legitimate solution will have some advantages or
benefits, and some disadvantages or costs. This process identifies the benefits
and costs associated with each alternative solution.
i. Tangible costs - quantified costs.

(1). Hardware.
(2). Software.
(3). Salaries.

ii. Intangible Costs - difficult to quantify.

(1). Customer goodwill.
(2). Employee morale caused by system errors.
(3). Installation/conversion problems.
iii. Tangible Benefits - favorable results that the firm has attained.
(1). Decrease in payroll.
(2). Decrease in inventory carry.
iv. Intangible Benefits - hard to estimate.

(1). Customer service.
(2). Better delivery of customer request(s)
8. Selecting the Best Solution. Once all alternative solutions have been evaluated, they can
be compared to each other, and the "best" (most desirable) solution can be selected.
Since the solutions are compared based on multiple criteria (some of which may be
intangible), this selection is not always a simple process.
C IMPLEMENTING A SOLUTION
9.. Implement the selected solution. Once a solution has been selected, it must be
implemented. An implementation plan may have to be developed. A project
management effort may be required to supervise the implementation of large projects.
Typically, an implementation plan specifies the activities, resources, and timing needed
for proper implementation. This may include:
a. Types and sources of hardware and software.

b. Construction of physical facilities.
c. Hiring and training of personnel.
d. Start-up and operating procedures.
e. Conversion procedures and timetables.
10.. Post implementation Review (Evaluate the success of the implemented solution). The
focus of the post implementation review is to determine if the implemented solution has
indeed helped the firm and selected subsystems meet their system objective. If not, the
systems approach assumes you will cycle back to a previous step and make another attempt
to find a workable solution.
Applying the Systems Approach to Information Systems.
A variety of information systems development methodologies tailor the systems approach

to the process of developing information systems solutions to business problems. A firm
may experience difficulties in applying the systems process to IS due to:
. 1 Departmental/unit and/or emotional conflicts.
2. Rapidly changing environmental conditions.

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BCA-304 Management Information System

Bachelor in Computer Application

Lecture Plan (Unit-I)

Foundation of Information System: Introduction to Information System in Business,

MIS Overview: Definition and Concept of a Management Information System, MIS

Lecture-1 Foundation of Information System-Three vital roles of Information

Lecture-5 Information System Framework

Lecture-8 Managerial Challenges of IT, Solution to Develop IS.

Lecture-9 Challenges And Ethics Of IT, Effectiveness And Efficiency Criteria

City Group of Colleges Vishal Agarwal

Q1. Explain Information Systems?

An information system (IS) can be any organized combination of people, hardware,

IS help managers in:

• Support of business processes and operations.

• Support of decision making by employees and managers.

• Support of strategies for competitive advantage.

City Group of Colleges Vishal Agarwal

IT- IS- Firm- Business Environment.

IS- Information system - can be any organized combination of people, hardware,

Firm- product or services for external customers.

City Group of Colleges Vishal Agarwal

Q1 Explain the Components of IS?

Components of Information Systems:include

a) Input of Data Resources

3- Information Products they produce: product is the result of an operation or

City Group of Colleges Vishal Agarwal

Q1 : Explain Role of e-business in Business?

The Role of e-Business in Business:

City Group of Colleges Vishal Agarwal

Companies rely on e-business applications to

(1) reengineer internal business processes,

(3) promote enterprise collaboration among business teams and workgroups.

Enterprise collaboration systems involve the use of software tools to support

City Group of Colleges Vishal Agarwal

Q1: Explain Information System Framework for Business Professionals:

IS FRAMEWORK FOR BUSINESS PROFESSIONALS:

There are 5 area IS framework for summarizing any information system

Foundation Concepts: Fundamental behavioral, technical, business, and managerial

Information Technologies. Major concepts, developments, and management issues in

Development Processes. How business professionals and information specialists plan,

Management Challenges. The challenges of effectively and ethically managing information

City Group of Colleges Vishal Agarwal

Q1 Explain The Expanding Role of IS(Information System) In Business and Management?

The Expanding Role of IS In Business & Management

City Group of Colleges Vishal Agarwal

DEVELOPING INFORMATION SYSTEMS SOLUTIONS:

Developing successful information system solutions to business problems is a major

challenge for business managers and professionals today.

Several major activities must be accomplished and managed in a complete IS

Examples of other activities include investigating the economic or technical feasibility of a

City Group of Colleges Vishal Agarwal

Q1 Explain types of Information System?

Types of Information Systems

Several types of information systems can be classified as either operations or management

Operations support systems

A summary of operations support systems with examples

City Group of Colleges Vishal Agarwal

• Enterprise collaboration systems. Support team, workgroup, and enterprise

Management Support Systems

A summary of management support systems with examples.

• Management information systems. Provide information in the form of prespecified

Other Categories of Information Systems

• Knowledge management systems. Knowledge-based systems that support the creation,