haster of ßusIness AdmInIstratIon - hßA Semester 2

|80047 - |anagement ÌnformatIon System · 4 CredIts
(ßook I0: ß1136)
AssIgnment Set- 1
60 harks

Attempt each questIon. Each questIon carrIes 10 marks:
1. at Is |ÌS: 0efIne te caracterIstIcs of |ÌS: at are te basIc FunctIons of
|ÌS: CIve some 0Isadvantage of |ÌS:

2. ExplaIn Knowledge based system: ExplaIn 0SS and DLAP wIt example:

J. at are 7alue CaIn AnalysIs E descrIbe Its sIgnIfIcance In |ÌS: ExplaIn wat Is
meant by 8PF: at Is Its sIgnIfIcance: How 0ata wareousIng E 0ata |InIng Is
useful In terms of |ÌS:

4. ExplaIn 0F0 E 0ata 0IctIonary: ExplaIn In detaIl ow te InformatIon
requIrement Is determIned for an organIzatIon:

5. at Is EFP: ExplaIn Its exIstence before and Its future after: at are te
advantages E 0Isadvantages of EFP: at Is ArtIfIcIal ÌntellIgence: How Is It
dIfferent from Neural Networks:

6. 0IstInguIs between closed decIsIon makIng system E open decIsIon makIng
system: at Is 'at - If' analysIs: y Is more tIme spend In problem
analysIs E problem defInItIon as compared to te tIme spends on decIsIon

µ.Ź Wbot is HlS? Befine tbe cborocteristics of HlS? Wbot ore tbe
bosic Iunctions of HlS? 6ive some BisoJvontoqe of HlS?


For a better understandIng of tIs unIt, you must ave te prIor knowledge
about te DrganIzatIon system, ÌnformatIon, data and records. Te organIzatIon's
growt and te level of complexIty In functIonIng ave made te people to realIze te
facts. You can now questIon ow suc enormous InformatIon Is maIntaIned: SInce te
envIronment turns competItIve and Is ever cangIng, fIxatIon of standard for an
exceptIon becomes exercIse at least for te people In Iger ecelons of te
organIzatIons. Te ÌnformatIon needed by te organIzatIon for dIfferent applIcatIons Is
dIffIcult to be made avaIlable at te rIgt tIme at te rIgt level. Ìn tIs unIt you wIll
study about te evolutIon of |ÌS and sIgnIfIcance of |ÌS In te organIzatIon. You wIll
study te Impact of |ÌS on any busIness. You wIll also know te dIfferent pases of
development of |ÌS and fInally you wIll know te ardware support needed for |ÌS.

|ÌS Is an Integrated system wIc provIdes InformatIon support for decIsIon
makIng In te organIzatIon. Tere may be varIous defInItIons for |ÌS, but you can see
all of tem defInIng |ÌS as a decIsIon makIng metodology wIc elps In control.
ElectronIc communIcatIon Increases te overall amount of communIcatIon wItIn te
organIzatIon. You can fInd te followIng advantages obtaIned from |ÌS. computerIzed
management InformatIon system (|ÌS) In all regIstered clIents, counselIng sessIons,
and all medIcal vIsIts provIded to te clIents wIt respect to ospItal management
system of any major ospItals. Non·computerIzed data from prevIous years only
documented te number and locatIon of counselIng sessIons wIle te new |ÌS
provIdes muc morespecIfIc and detaIled data. Te Impact of computer·based
InformatIon systems on manager's work reflects decIsIons made by managers
temselves about ow te tecnology Is used. Te Impact of |ÌS Is not an IndIvIdually
stable and predIctable. As a manager at any organIzatIon you can use non lInear on·
goIng process of cange tat evolves over tIme and sItuatIons. Ìn an organIzatIon you
can develop a system, sape It and also react It to any dIfferent way. You cannot lImIt
te Impact of |ÌS to some specIfIc areas. Ìt as wIde range of applIcatIons and as a
unIque Impact on eac system. Now, |ÌS as become very Important fact of all te
InformatIon systems tat you cannot vIew any system wItout |ÌS.

hIS characterIstIcs
¤ Ìt supports transactIon andlIng and record keepIng.
¤ Ìt Is also called as Integrated database |anagement System wIc supports In major
functIonal areas.
¤ Ìt provIdes operatIonal, tactIcal, and strategIc level managers wIt east access to
tImely but, for te most, structured InformatIon.
¤ Ìt supports decIsIon -makIng functIon wIc Is a vItal role of |ÌS.
¤ Ìt Is flexIble wIc Is needed to adapt to te cangIng needs of te organIzatIon.
¤ Ìt promotes securIty system by provIdIng only access to autorIzed users.
¤ |ÌS not only provIdes statIstIcal and data analysIs but also works on te basIs on |8D
(management by objectIves). |ÌS Is successfully used for measurIng performance and
makIng necessary cange In te organIzatIonal plans and procedures. Ìt elps to buIld
relevant and measurable objectIves, monItor results, and send alerts.

|ÌS provIdes Integrated InformatIon so tat all te departments are aware of te
problem and requIrements of te oter departments. TIs elps In equal InteractIon of
te dIfferent centers and connects decIsIon centers of te organIzatIon.
¤ 0uplIcatIon of data Is reduced sInce data Is stored In te central part and same data
can be used by all te related departments.
¤ |ÌS elImInates redundant data.
¤ Ìt elps In maIntaInIng consIstency of data. Ìt Is dIvIded Into subsystems. HandlIngs
wIt small systems are muc easIer tan an entIre system. TIs elps In gIvIng easy
access of data, accuracy and better InformatIon productIon.
¤ |ÌS assembles, process, stores, FetrIeves, evaluates and dIssemInates te

FunctIon of hIS
Te maIn functIons of |ÌS are:

¤ 0ata ProcessIng: CaterIng, storage, transmIssIon, processIng and gettIng output of
te data. |akIng te data Into InformatIon Is a major task.
¤ PredIctIon: PredIctIon Is based on te IstorIcal data by applyIng te prIor knowledge
metodology by usIng modern matematIcs, statIstIcs or sImulatIon. PrIor knowledge
varIes on te applIcatIon and wIt dIfferent departments.

¤ PlannIng: PlannIng reports are produced based on te enterprIse restrIctIon on te
companIes and elps In plannIng eac functIonal department to work reasonably.

¤ Control: |ÌS elps In monItorIng te operatIons and Inspects te plans. Ìt consIsts of
dIfferences between operatIon and plan wIt respect to data belongIng to dIfferent
functIonal department. Ìt controls te tImely actIon of te plans and analyzes te
reasons for te dIfferences between te operatIons and plan. Tereby elps managers
to accomplIs teIr decIsIon makIng task successfully.

¤ AssIstance: Ìt stores te related problems and frequently used InformatIon to apply
tem for relatIve economIc benefIts. Troug tIs It can derIve Instant answers of te
related problem.

TIs Is te most Important functIon of |ÌS. All te InformatIon Is needs a storage space
wIc can be accessed wItout causIng any anomalIes In te data. Ìntegrated 0atabase
avoIds te duplIcatIon of data and tereby reduces redundancy and ence consIstency
wIll be Increased.
¤ Te major functIon of |ÌS lIes In applIcatIon of te above functIons to support te
managers and te executIves In te organIzatIon In decIsIon·makIng.

0Isadvantages of hIS

Te followIng are some of te dIsadvantages of |ÌS:

¤ |ÌS Is Igly sensItIve: |ÌS Is very elpful In maIntaInIng loggIng InformatIon of an
autorIzed user. TIs needs to monItor constantly.

¤ QualIty of outputs Is governed by qualIty of Inputs.

¤ |ÌS budgetIng: Tere Is dIffIculty In maIntaInIng IndIrect cost and overeads.
CapturIng te actual cost needs to ave an accrual system avIng true costs of outputs
wIc Is extremely dIffIcult. Ìt as been dIffIcult to establIs defInIte fIndIngs.

¤ |ÌS Is not flexIble to update Itself for te canges.

¤ Te canges In te decIsIon of top level management decrease Its effectIveness.

¤ ÌnformatIon accountabIlIty Is based on te qualItatIve factors and te factors lIke
moralIty, confIdence or attItude wIll not ave any base.

After goIng troug tIs unIt you would ave learnt te fundamentals of |ÌS. Te role
and sIgnIfIcance of |ÌS In busIness and Its classIfIcatIon Is explaIned. Also you would
understand te Impact of |ÌS on busIness and te varIous pases of a busIness. Ìt Is
possIble to understand te varIous pases of development In |ÌS based on te type of
system requIred In any organIzatIon. You would learn ow te conversIon of data to
InformatIon and te IntermedIate process Involved. You would also learn about te
varIous types of computers used In |ÌS and te dIfferent types of Input and output

µ.ź. Fxploin KnowleJqe boseJ system? Fxploin BSS onJ 0lAP witb


KnowIedge ßased System (KßS)
K8S are te systems based on knowledge base. Knowledge base Is te database
maIntaIned for knowledge management wIc provIdes te means of data collectIons,
organIzatIon and retrIeval of knowledge. Te knowledge management manages te
domaIn were It creates and enables organIzatIon for adoptIon of InsIgts and

Tere are two types of knowledge bases.

A. |acIne readable knowledge bases: Te knowledge base elps te computer to
process troug. Ìt makes te data In te computer readable code wIc makes te
operator to perform easIer. Suc InformatIon sare used by semantIc web. SemantIc
web Is a web tat wIll make a descrIptIon of te system tat a system can understand.

8. Human readable knowledge bases: Tey are desIgned to elp people to retrIeve
knowledge. Te InformatIon need to be processed by te reader. Te reader can
access te InformatIon and syntesIze teIr own.

K8S refers to a system of data and InformatIon used for decIsIon makIng. Te system Is
automated to work on te knowledge based data and InformatIon requIred In a
partIcular domaIn of management actIvIty. Te processIng Is done based on te past
decIsIons taken under suItable condItIons. 0ecIsIon makIng Is based on te fact tat
te condItIon Is sImIlar to te past sItuatIon ence te decIsIon Is also Is sImIlar.
Examples of K8S are IntellIgent systems, robotIcs, neural networks etc.

0ecIsIon Support Systems (0SS)
0SS Is an InteractIve computer based system desIgned to elp te decIsIon makers to
use all l te resources avaIlable and make use In te decIsIon makIng. Ìn management
many a tIme problems arIse out of sItuatIons for wIc sImple solutIon may not be
possIble. To solve suc problems you may ave to use complex teorIes. Te models
tat would be requIred to solve suc problems may ave to be IdentIfIed. 0SS requIres

A lot of managerIal abIlItIes and managers judgment.
You may gater and present te followIng InformatIon by usIng decIsIon support

¤ AccessIng all of your current InformatIon assets, IncludIng legacy and relatIonal data
sources, cubes, data wareouses, and data marts
¤ ComparatIve sales fIgures between one week and te next
¤ Projected revenue fIgures based on new product sales assumptIons
¤ Te consequences of dIfferent decIsIon alternatIves, gIven past experIence In a
context tat Is descrIbed.

|anager may sometImes fInd It dIffIcult to solve suc problems. E.g. - Ìn a sales
problem If tere Is multIple decIsIon varIables modeled as a sImple lInear problem but
avIng multIple optIma, It becomes dIffIcult to take a decIsIon. SInce any of te
multIple optIma would gIve optImum results. 8ut te strategy to select te one most
suItable under condItIons prevaIlIng In te market, requIres skIlls beyond te model.
Ìt would take some trIals to select a best strategy. Under suc cIrcumstances It would
be easy to take decIsIon If a ready system of databases of varIous market condItIons
and correspondIng approprIate decIsIon Is avaIlable. A system wIc consIsts of
database pertaInIng to decIsIon makIng based on certaIn rules Is known as decIsIon
support system. Ìt Is a flexIble system wIc can be customIzed to suIt te
organIzatIon needs. Ìt can work In te InteractIve mode In order to enable managers to
take quIck decIsIons. You can consIder decIsIon support systems as te best wen It
Includes Ig·level summary reports or carts and allow te user to drIll down for
more detaIled InformatIon.

A 0SS as te capabIlIty to update Its decIsIon database. enever manager feels tat
a partIcular decIsIon Is unIque and not avaIlable In te system, te manager can cose
to update te database wIt suc decIsIons. TIs wIll strengten te 0SS to take
decIsIons In future.

Tere Is no scope for errors In decIsIon makIng wen suc systems are used as aId to
decIsIon makIng. 0SS Is a consIstent decIsIon makIng system. Ìt can be used to
generate reports of varIous lever management actIvItIes. Ìt Is capable of performIng
matematIcal calculatIons and logIcal calculatIon dependIng upon te model adopted
to solve te problem.
You can summarIze te benefIts of 0SS Into followIng:

¤ Ìmproves personal effIcIency
¤ ExpedItes problem solvIng
¤ FacIlItates Interpersonal communIcatIon
¤ Promotes learnIng or traInIng
¤ Ìncreases organIzatIonal control
¤ Cenerates new evIdence In support of a decIsIon
¤ Creates a competItIve advantage over competItIon
¤ Encourages exploratIon and dIscovery on te part of te decIsIon maker
¤ Feveals new approaces to tInkIng about te problem space

DnIIne AnaIytIcaI ProcessIng (DLAP)
DLAP refers to a system In wIc tere are predefIned multIple Instances of varIous
modules used In busIness applIcatIons. Any Input to suc a system results In
verIfIcatIon of te facts wIt respect to te avaIlable Instances.

A nearest matc Is found analytIcally and te results dIsplayed form te database. Te
output Is sent only after toroug verIfIcatIon of te Input facts fed to te system. Te
system goes troug a serIes of multIple cecks of te varIous parameters used In
busIness decIsIon makIng. DLAP Is also referred to as a multI dImensIonal analytIcal
model. |any bIg companIes use DLAP to get good returns In busIness.

Te queryIng process of te DLAP Is very strong. Ìt elps te management take
decIsIons lIke wIc mont would be approprIate to launc a product In te market,
wat sould be te productIon quantIty to maxImIze te returns, wat sould be te
stockIng polIcy In order to mInImIze te wastage etc.

A model of DLAP may be well represented In te form of a J0 box. Tere are sIx faces
of te box. Eac adjoInIng faces wIt common vertex may be consIdered to represent
te varIous parameter of te busIness sItuatIon under consIderatIon. E.g.: FegIon,
Sales E demand, Product etc.

µ.Ż) Wbot ore volue Cboin Anolysis & Jescribe its siqnificonce in
HlS? Fxploin wbot is meont by BPR? Wbot is its siqnificonce? Eow
Boto worebousinq & Boto Hininq is useful in terms of HlS?


ßasIcs of ßPP
Te exIstIng system In te organIzatIon Is totally reexamIned and radIcally modIfIed
for IncorporatIng te latest tecnology. TIs process of cange for te betterment of
te organIzatIon Is called as 8usIness process re·engIneerIng. TIs process Is maInly
used to modernIze and make te organIzatIons effIcIent. 8PF dIrectly affects te
performance. Ìt Is used to gaIn an understandIng te process of busIness and to
understand te process to make It better and re·desIgnIng and tereby ImprovIng te

8PF Is maInly used for cange In te work process. Latest software Is used and
accordIngly te busIness procedures are modIfIed, so tat documents are worked upon
more easIly and effIcIently. TIs Is known as work]low mcncyement.

Importance of ßPP
8usIness process are a group of actIvItIes performed by varIous departments, varIous
organIzatIons or between IndIvIduals tat Is maInly used for transactIons In busIness.
Tere may be people wo do tIs transactIon or tools. e all do tem at one poInt or
anoter eIter as a supplIer or customer. You wIll really apprecIate te need of
process Improvement or cange In te organIzatIons conduct wIt busIness If you ave
ever waIted In te queue for a longer tIme to purcase 1 kIlo of rIce from a PublIc
0IstrIbutIon Sop (P0S·ratIon sop). Te process Is called te ceck·out process. Ìt Is
called process because unIform standard system as been maIntaIned to undertake
suc a task. Te system starts wIt formIng a queue, receIvIng te needed Item form
te sop, gettIng It bIlled, |anagement ÌnformatIon System UnIt 4 SIkkIm |anIpal
UnIversIty payment wIc Involves bIllIng, payIng amount and receIvIng te receIpt of
purcase and te process ends up wIt te exIt from te store. Ìt Is te transactIon
between customer and supplIer.

ßPP Is employed wen major ÌT projects suc as EFP are undertaken. FeengIneerIng
Involves canges In structure, organIzatIonal culture and processes. |any concepts of
8PF canges organIzatIonal structure. Team based organIzatIon, mass customIzatIon;
empowerment and telecommutIng are some of te examples. Te support system In
any organIzatIon plays a Important role In 8PF. ES, 0SS, AÌ (dIscussed later) allows
busIness to be conducted In dIfferent locatIons, provIdes flexIbIlIty In manufacturIng
permIts quIcker delIvery to customers and supports rapId paperless transactIons among
supplIers, manufacturers and retaIlers. Expert systems can enable organIzatIonal
canges by provIdIng expertIse to non experts. Ìt Is dIffIcult to carry out 8PF
calculatIons usIng ordInary programs lIke spreadseets etc.

Experts make use of applIcatIons wIt sImulatIons tools for 8PF. FeengIneerIng Is
basIcally done to acIeve cost reductIon, Increase In qualIty, Improvement In speed
and servIce. 8PF enable a company to become more competItIve In te market.
Employees work In team comprIsIng of managers and engIneers to develop a product.
TIs leads to te formatIon of InterdIscIplInary teams wIc can work better tan
mere functIonal teams. Te coordInatIon becomes easIer and faster results can be
acIeved. Te entIre busIness process of developIng a product gets a new dImensIon.
TIs as led to reengIneerIng of muc old functIonal process In organIzatIons.

Dbjects are te Important part of our daIly lIfe. Dbjects are natural and manmade, In
busIness, and In products. Dbjects can be categorIzed, descrIbed, organIzed,
combIned, manIpulated and created. Te object orIented metodology uses te object
orIented tecnIques to study te objects of te system. TIs metodology elps us to
know te beavIor of te objects, and response tIme to dIfferent events. Ìt oIs also
used to study te relatIonsIps exIstIng between te two objects of same organIzatIon
or Inert organIzatIon.

Dbject orIented metodology Is defIned as te system tat supports and facIlItates te
software component. Ìt enables te effectIve use of exIstIng resources and also to
sare wIt te oter resources. e can gaIn Ig productIon wIt less cost and better

Concept of 0atabase - 0atabase Is a data structure used to store organIzed
InformatIon. A collectIon of programs tat enables you to store, modIfy, and extract
InformatIon from a database. A database Is typIcally made up of many lInked tables of
rows and columns. For example, a company mIgt use a database to store InformatIon
about teIr products, teIr employees, and fInancIal InformatIon. 0atabases are now
also used In nearly all e·commerce sItes to store product Inventory and customer
InformatIon. 0atabase software, suc as |Icrosoft Access, FIle|aker Pro, and |ySQL Is
desIgned to elp companIes and IndIvIduals organIze large amounts of InformatIon In a
way were te data can be easIly searced, sorted, and updated.
%he foIIowIng are exampIes of database appIIcatIons:
¤ ComputerIzed lIbrary systems
¤ Automated teller macInes
¤ FlIgt reservatIon systems
¤ ComputerIzed parts Inventory systems

TecnIcally 08|S wIdely dIffer. Tere are dIfferent structures wIc contrIbutes 08|S
organIzatIon. Tey are relctìoncl, network, ]lct, and hìercrchìccl. Query Is te
Fequests for InformatIon from a database wIc Is a questIon.

%he exampIe for the query may be
SELECT * FFD| |anIpal HEFE 0EPT = "|anagement"
Here * represents ALL. So te above query wIll lIst out all te records of mcncyement
depcrtment from te database MANlPAL. Te above query Is wrItten Is called query
lcnyucye. Te InformatIon from a database can be presented In a varIety of formats.
|ost 08|Ss Include a report wrìter proyrcm tat enables you to output data In te
form of a report. |any 08|Ss also Include a grapIcs component tat enables you to
output InformatIon In te form of graps and carts.

0ata hInIng
0ata mInIng Is prImarIly used as a part of InformatIon system today, by companIes wIt
a strong consumer focus · retaIl, fInancIal, communIcatIon, and marketIng
organIzatIons. Ìt enables tese companIes to determIne relatIonsIps among ¨Internal¨
factors suc as prIce, product posItIonIng, or staff skIlls, and ¨external¨ factors suc as
economIc IndIcators, competItIon, and customer demograpIcs. And, It enables tem
to determIne te Impact on sales, customer satIsfactIon, and corporate profIts.
FInally, It enables tem to ¨drIll down¨ Into summary InformatIon to vIew detaIl
transactIonal data. It data mInIng, a retaIler could use poInt·of·sale records of
customer purcases to send targeted promotIons based on an IndIvIdual's purcase
Istory. 8y mInIng demograpIc data from comment or warranty cards, te retaIler
could develop products and promotIons to appeal to specIfIc customer segments.

0ata |InIng Is a collaboratIve tool wIc comprIses of database systems, statIstIcs,
macIne learnIng, vIsualIzatIon and InformatIon scIence. 8ased on te data mInIng
approac used, dIfferent tecnIques form te oter dIscIplIne can be used suc as
neural networks, artIfIcIal IntellIgence, fuzzy logIc, knowledge representatIon, Ig
performance computIng and InductIve logIc programmIng
0ata mInIng refers to extractIng or mInIng knowledge from large amount of data.
Tere may be oter terms wIc refer data mInIng suc as knowledge mInIng,
knowledge extractIon, data/pattern analysIs, data arceology, and |anagement
ÌnformatIon System

Te Knowledge dIscovery as a process may consIst of followIng steps:
1. 0ata CleanIng: Ìt removes noIse and InconsIstent data.
2. 0ata IntegratIon: Ìt Is were multIple data sources are combIned.
J. 0ata selectIon: 0ata relevant to te analysIs task are retrIeved from te database.
4. 0ata transformatIon: 0ata are transformed or consolIdated Into forms approprIate
for mInIng by performIng summary or aggregatIon operatIons, for Instance.
5. 0ata mInIng: An essentIal process were IntellIgent metods are applIed In order to
extract data patterns.
6. Pattern evaluatIon: To IdentIfy te truly InterestIng patterns representIng
knowledge based on some InterestIng measure.
7. Knowledge presentatIon: 7IsualIzatIon and knowledge representatIon tecnIques are
used to present te mIned knowledge to te users.

en you look at te above step you wIll fInd tat data mInIng Is a very Important
step In knowledge representatIon. Ìt Interacts wIt te user for knowledge base.
So It Is found tat tere Is necessIty of a typIcal arcItecture for data mInIng as a bIg
Te arcItecture of te data mInIng as te followIng components:
1. 0atabase,
data wareouse and InformatIon reposItory: TIs Is one or a set of databases,
data wareouse, and InformatIon reposItory wIc can be used for data
cleanIng and data IntegratIon.
2. 0atabase server:
TIs Server Is responsIble for fetcIng te relevant data
J. 0ata mInIng engIne:
TIs elps In accessIng te user troug applIcatIons. Ìt accesses data from te
wareouse wIt te elp of standard data connectIvIty mecanIsms. Usually
database drIvers are used to connect te database.
4. Patterns evaluatIon model:
Ìt acquIres te data to be evaluated form te database, producIng te pattern
edge. TIs model scans te data. Ìt searces and creates te InterestIng
patterns based on te tresolds.

5. CrapIcal user Interface:
Ìt communIcates between te user and te data mInIng system. Ìt allows te
user to Interact wIt te system and specIfIes te data mInIng querIes or task.

0ata mInIng Is applIcable to any kInd of InformatIon reposItory. Some of tese may be
relatIonal databases, data wareouse, transactIonal databases, advanced database
management systems, and fIles. Advance database systems Include object
orIented databases, object relatIonal databases, and applIcatIon orIented databases.
Te best example for data mInIng wIc Is so close to our lIves Is Coogle. Te success
of Coogle depends on te use of data mInIng tecnIques In te analysIs of data In te
searc engIne to meet your searc demand.

0ata WarehousIng
0ata areouse Is defIned as collectIon of database wIc Is referred as relatIonal
database for te purpose of queryIng and analysIs rater tan just transactIon
processIng. 0ata wareouse Is usually maIntaIned to store eurIstIc data for future
use. 0ata wareousIng Is usually used to generate reports. ÌntegratIon and separatIon
of data are te two basIc features need to be kept In mInd wIle creatIng a data
wareousIng. Te maIn output from data wareouse systems are; eIter tabular
lIstIngs (querIes) wIt mInImal formattIng or Igly formatted ¨formal¨ reports on
busIness actIvItIes. TIs becomes a convenIent way to andle te InformatIon beIng
generated by varIous processes. 0ata wareouse Is an arcIve of InformatIon collected
from wIde multIple sources, stored under a unIfIed sceme, at a sIngle sIte. TIs data
Is stored for a long tIme permIttIng te user an access to arcIved data for years. Te
data stored and te subsequent report generated out of a queryIng process enables
decIsIon makIng quIckly. TIs concept Is useful for bIg companIes avIng plenty of data
on teIr busIness processes. 8Ig companIes ave bIgger problems and complex
problems. 0ecIsIon makers requIre access to InformatIon from all sources. SettIng up
querIes on IndIvIdual processes may be tedIous and IneffIcIent. 0ata wareouse may
be consIdered under suc sItuatIons.

0ata ware ouse Is center part of data reposItory. 0ata wareousIng provIdes a
strategIc approac to all te busIness. 0ata wareouse Is broadly famous for Its
caracterIstIcs lIke:

a. Subject orIented: 0ata wareouse as te abIlIty to analyze te data. Te abIlIty to
defIne by subject matter makes 0 subject orIented.
b. Ìntegrated: TIs resolves te problems of conflIcts and InconsIstencIes exIstIng In
te unIts of measure.

c. Non volatIle: Dnce te data Is entered In te wareouse It sall not cange. TIs
caracterIstIcs Is very Important because after all te purpose of eurIstIc data Is for
future use.

d. TIme varIant: Te data wareouse focus on cange over tIme. To dIscover new
trends In busIness, analysts need large amount of data wIc Is contrastIng to DLTP
(DnlIne transactIon ProcessIng) wIc works on eurIstIc data.

Ìt Is observed tat all te companIes are profIt orIented and also want to exIst In te
market along wIt teIr competItors. 0ata wareousIng Is of strategIc value because It
enables us to acIeve te former wIle deftly avoIdIng te latter. TIs Is te strategIc
spIrIt In wIc we sould understand, Implement, and manage data wareousIng.

After goIng troug tIs unIt, you would ave learnt te fundamentals of busIness
process re·engIneerIng (8PF), Its Importance of 8PF and te varIous steps In 8PF. You
would ave also understood ow to Improve a process. You ave also learnt te
Importance of Dbject orIented metodology. You would ave also learnt dIfferent
database metodology In solvIng 8PF. 8usIness object model Is Introduced and te
sIgnIfIcance of busIness object models to |ÌS Is explaIned

µ.4. Fxploin BIB & Boto Bictionory? Fxploin in Jetoil bow tbe
informotion requirement is JetermineJ for on orqonizotion?


0ata flow dIagrams represent te logIcal flow of data wItIn te system. 0F0 do not
explaIn ow te processes convert te Input data Into output. Tey do not explaIn ow
te processIng takes place.

0F0 uses few symbols lIke cIrcles and rectangles connected by arrows to represent
data flows. 0F0 can easIly Illustrate relatIonsIps among data, flows, external entItIes
an stores. 0F0 can also be drawn In IncreasIng levels of detaIl, startIng wIt a
summary Ig level vIew and proceedIng o more detaIled lower level vIews.

Founded rectangles represent processes tat transform flow of data or work to be

Fectangle represents external agents· te boundary of te system. Ìt Is source or
destInatIon of data.

Te open·ended boxes represent data stores, sometImes called fIles or databases.
Tese data stores correspond to all Instances of a sIngle entIty In a data model.
Arrow represents data flows, Inputs and outputs to end from te processes.

A number of guIdelInes sould be used In constructIng 0F0.
¤ Coose meanIngful names for te symbols on te dIagram.
¤ Number te processes consIstently. Te numbers do not Imply te sequence.
¤ AvoId over complex 0F0.
¤ |ake sure te dIagrams are balanced.

0ata 0IctIonary
Te data dIctIonary Is used to create and store defInItIons of data, locatIon, format for
storage and oter caracterIstIcs. Te data dIctIonary can be used to retrIeve te
defInItIon of data tat as already been used In an applIcatIon.
Te data dIctIonary also stores some of te descrIptIon of data structures, suc as
entItIes, attrIbutes and relatIonsIps. Ìt can also ave software to update Itself and to
produce reports on Its contents and to answer some of te querIes.
0etermInIng the InformatIon PequIrement
Te sole purpose of te |ÌS Is to produce suc InformatIon wIc wIll reduce
uncertaInty rIsk In a gIven sItuatIon.

Te dIffIculty to determIne a correct and complete set of InformatIon Is on account of
te factors gIven below:
1. Te capabIlIty constraInt of te uman beIng as an InformatIon processor, a
problem solver and a decIsIon·maker.
2. Te nature and te varIety of InformatIon In precIse terms.
J. Feluctance of decIsIon·makers to spell out te InformatIon for te polItIcal and te
beavIoural reasons.
4. Te abIlIty of te decIsIon·makers to specIfy te InformatIon.

Ìn spIte of tese dIffIcultIes, metods are evolved based on te uncertaInty scale,
startIng from te low to te Ig level of uncertaInty. Ìf te uncertaInty Is low,
seekIng InformatIon requIrement or needs Is easy as agaInst a very Ig level of

8ased on te uncertaInty scale te followIng metods, sown In te followIng table
ave been suggested.

Tere are four metods of determInIng te InformatIon requIrements. Tey are:
1. AskIng or IntervIewIng
2. 0etermInIng from te exIstIng system
J. AnalysIng te crItIcal success factors
4. ExperImentatIon and modellIng.

AskIng or IntervIewIng
Ìn tIs metod a desIgner of te |ÌS puts questIons or converses wIt te user of te
InformatIon and determInes te InformatIon requIrements. PuttIng te questIons Is an
art and It sould be used properly to seek InformatIon.

en te user as to select one answer from a fInIte set of answers a closed questIon
sould be asked. For example, ¨Ic are te raw materIals used for makIng a
product:¨ 8ut an open questIon Is put, wen te user as no precIse knowledge but as
an abIlIty to determIne all answers to select one out of tem: For example, ¨Ic are
te raw materIals wIc can be used In a product:¨ Ìn open questIons, te answers may
not be ImmedIate but can be obtaIned by surveyIng te domaIn knowledge of te user.
en multIple users or several decIsIon·makers In sImIlar functIons or posItIons are
Involved, a braIn stormIng sessIon Is performed to cover all

possIble answers to te questIons. en several users are Involved, group consensus
can be sougt to get te most feasIble set of answers.

Te experts or experIenced users are asked to gIve teIr best answers-tIs approac Is
called te 0eIphI method. Ìn all tese metods, te system desIgner as to test te
valIdIty of all te answers Independently. An experIenced desIgner Is able to analyse
crItIcally te answers gIven to te questIons and determIne te correct InformatIon

0etermInIng from the ExIstIng System
Ìn a number of cases te exIstIng system, wIc as been evolved after a number of
years, and as been desIgned out of experIence gIves straIgtaway te requIrement of
InformatIon. Ìn any sItuatIons, systems from oter companIes can gIve addItIonal
InformatIon requIrements.

Te fund of knowledge Is avaIlable from te textbooks, andbooks, researc studIes
wIc can determIne te InformatIon requIrement. For example, systems suc as te
accounts receIvables, te accounts payables, te pay roll, te Inventory control, te
fInancIal accountIng, etc., ave a well deter·mIned, InformatIon requIrement.

ÌrrespectIve of te type of organIsatIon and busIness, nInety per cent of te
InformatIon requIrement Is common and te balance ten per cent may be typIcal to
te organIsatIon or te busIness, wIc needs to be determIned separately. Te
managers In te operatIons and te mIddle management use te exIstIng systems as a
reference for determInIng te InformatIon requIrements.

TIs metod Is adopted wen te rules and decIsIon metods are outsIde te purvIew
of te decIsIon·maker. Tey are determIned or Imposed by external sources suc as
te Covernment, te AutorIty, te prIncIples, etc. For example, te InformatIon
requIred to manage sares of te company are determIned troug te rules and
regulatIons laId down by te Company Law 8oard. Te manager of te sares
department as very lIttle addItIonal InformatIon need.
Ìn all suc functIons, te manager determInes te InformatIon needs and te desIgner
of te |ÌS can always fall back on te prescrIbed law books, manuals, teory and
textbooks, and books, etc to confIrm te InformatIon needs

AnaIysIng the CrItIcaI Success Factors
Every busIness organIsatIon performs successfully on effIcIent management of certaIn
crItIcal success factors. Dter factors are Important and play a support role In te
functIonIng of te organIsatIon. |any tImes a functIon Is sIngularly crItIcal to te
successful functIonIng of a busIness organIsatIon.

For example, In a Ig tecnology busIness, te management of te tecnology
becomes te crItIcal functIon. Dr In a servIce organIsatIon, te management of servIce
becomes a crItIcal factor. ln a consumer Industry, marketIng and servIce becomes te
crItIcal functIon. Te InformatIon requIrements of suc organIsatIons largely relate to
tese crItIcal factors. Te analysIs of tese functIons or factors wIll determIne te
InformatIon requIrements.

ExperImentatIon and hodeIIIng
en tere Is total uncertaInty, te desIgner and te user of te InformatIon resort to
tIs metod for determInIng te InformatIon requIrement. Te experImentatIon would
decIde te metodology for andlIng te complex sItuatIon. Ìf te metod Is fInalIsed,
te InformatIon needs are determIned as tey ave been evolved troug te
experImentatIon. Test marketIng of a product Is an approac of te experImentatIon
to decIde te correct marketIng strategy.

SometImes models are used for decIdIng te InItIal InformatIon needs and tey are
modIfIed durIng te ImplementatIon stage. Te InformatIon requIrements determIned
troug suc metods undergo a qualItatIve cange as te users get te benefIt of
learnIng and experIence and te needs may undergo a cange or get replaced

µ.S Wbot is FRP? Fxploin its existence before onJ its future ofter?
Wbot ore tbe oJvontoqes & BisoJvontoqes of FRP? Wbot is
Artificiol lntelliqence? Eow is it Jifferent from Neurol Networks?


|anufacturIng management systems ave evolved In stages over te few decades from
a sImple means of calculatIng materIals requIrements to te automatIon of an entIre
enterprIse. Around 1980, over·frequent canges In sales forecasts, entaIlIng contInual
readjustments In productIon, as well as te unsuItabIlIty of te parameters fIxed by
te system, led hPP (|aterIal FequIrement PlannIng) to evolve Into a new concept :
|anufacturIng Fesource PlannIng (or |FP2) and fInally te generIc concept EnterprIse
Fesource PlannIng (EPP)

Te InItIals EFP orIgInated as an extensIon of |FP (materIal requIrements plannIng
ten manufacturIng resource plannIng). EFP systems now attempt to cover all basIc
functIons of an enterprIse, regardless of te organIzatIon's busIness or carter. Non·
manufacturIng busInesses, non·profIt organIzatIons and governments now all utIlIze
EFP systems.

To be consIdered an EFP system, a software package must provIde te functIon of at
least two systems. For example, a software package tat provIdes bot payroll and
accountIng functIons could tecnIcally be consIdered an EFP software package.

However, te term Is typIcally reserved for larger, more broadly based applIcatIons.
Te IntroductIon of an EFP system to replace two or more Independent applIcatIons
elImInates te need for external Interfaces prevIously requIred between systems, and
provIdes addItIonal benefIts tat range from standardIzatIon and lower maIntenance to
easIer and/or greater reportIng capabIlItIes.

Examples of modules In an EFP wIc formerly would ave been stand·alone
applIcatIons Include: |anufacturIng, Supply CaIn, FInancIals, Customer FelatIonsIp
|anagement (CPh), Human Fesources, areouse |anagement and 0ecIsIon Support

PerceptIon of EPP
Some organIzatIons - typIcally tose wIt suffIcIent In·ouse ÌT skIlls to Integrate
multIple software products - coose to Implement only portIons of an EFP system and
develop an external Interface to oter EFP or stand·alone systems for teIr oter
applIcatIon needs. For example, one may coose to use te HF|S from one vendor,
and te fInancIals systems from anoter, and perform te IntegratIon between te
systems temselves.

TIs Is very common In te retaIl sector, were even a mId·sIzed retaIler wIll ave a
dIscrete PoInt-of-SaIe (PDS) product and fInancIals applIcatIon, ten a serIes of
specIalIzed applIcatIons to andle busIness requIrements suc as wareouse
management, staff rosterIng, mercandIsIng and logIstIcs Ìdeally, EFP delIvers a sIngle
database tat contaIns all data for te software modules, wIc would Include:

|anufacturIng EngIneerIng, 8Ills of |aterIal, ScedulIng, CapacIty, orkflow
|anagement, QualIty Control, Cost |anagement, |anufacturIng Process,
|anufacturIng Projects, |anufacturIng Flow.

Supply CaIn |anagement Ìnventory, Drder Entry, PurcasIng, Product ConfIgurator,
Supply CaIn PlannIng, SupplIer ScedulIng, ÌnspectIon of goods, ClaIm ProcessIng,
CommIssIon CalculatIon.

EPP ßefore and After

PrIor to te concept of EFP systems, departments wItIn an organIzatIon (for example,
te uman resources (HF)) department, te payroll department, and te fInancIal
department) would ave teIr own computer systems. Te HF computer system (often
called HF|S or HFÌS) would typIcally contaIn InformatIon on te department, reportIng
structure, and personal detaIls of employees. Te payroll department would typIcally
calculate and store payceck InformatIon. Te fInancIal department would typIcally
store fInancIal transactIons for te organIzatIon. Eac system would ave to rely on a
set of common data to communIcate wIt eac oter. For te HFÌS to send salary
InformatIon to te payroll system, an employee number would need to be assIgned and
remaIn statIc between te two systems to accurately IdentIfy an employee. Te
fInancIal system was not Interested In te employee·level data, but only In te
payouts made by te payroll systems, suc as te tax payments to varIous autorItIes,
payments for employee benefIts to provIders, and so on. TIs provIded complIcatIons.
For Instance, a person could not be paId In te payroll system wItout an employee

EFP software, among oter tIngs, combIned te data of formerly separate
applIcatIons. TIs made te worry of keepIng numbers In syncronIzatIon across
multIple systems dIsappears. Ìt standardIzed and reduced te number of software
specIaltIes requIred wItIn larger organIzatIons.

Advantages and 0Isadvantages

Ìn te absence of an EFP system, a large manufacturer may fInd Itself wIt many
software applIcatIons tat do not talk to eac oter and do not effectIvely Interface.
Tasks tat need to Interface wIt one anoter may Involve:

¤ A totally Integrated system
¤ Te abIlIty to streamlIne dIfferent processes and workflows
¤ Te abIlIty to easIly sare data across varIous departments In an organIzatIon
¤ Ìmproved effIcIency and productIvIty levels
¤ 8etter trackIng and forecastIng
¤ Lower costs
¤ Ìmproved customer servIce

Cange ow a product Is made, In te engIneerIng detaIls, and tat Is ow It wIll now
be made. EffectIve dates can be used to control wen te swItc over wIll occur from
an old versIon to te next one, bot te date tat some IngredIents go Into effect, and
date tat some are dIscontInued. Part of te cange can Include labelIng to IdentIfy
versIon numbers.

Some securIty features are Included wItIn an EFP system to protect agaInst bot
outsIder crIme, suc as IndustrIal espIonage, and InsIder crIme, suc as
embezzlement. A data tamperIng scenarIo mIgt Involve a dIsgruntled employee
IntentIonally modIfyIng prIces to below te breakeven poInt In order to attempt to
take down te company, or oter sabotage. EFP systems typIcally provIde
functIonalIty for ImplementIng Internal controls to prevent actIons of tIs kInd. EFP
vendors are also movIng toward better IntegratIon wIt oter kInds of InformatIon
securIty tools.

|any problems organIzatIons ave wIt EFP systems are due to Inadequate Investment
In ongoIng traInIng for Involved personnel, IncludIng tose ImplementIng and testIng
canges, as well as a lack of corporate polIcy protectIng te IntegrIty of te data In
te EFP systems and ow It Is used.

Ile advantages usually outweIg dIsadvantages for most organIzatIons ImplementIng
an EFP system, ere are some of te most common obstacles experIenced:

Usually many obstacles can be prevented If adequate Investment Is made and
adequate traInIng Is Involved, owever, success does depend on skIlls and te
experIence of te workforce to quIckly adapt to te new system.

¤ CustomIzatIon In many sItuatIons Is lImIted
¤ Te need to reengIneer busIness processes
¤ EFP systems can be cost proIbItIve to Install and run
¤ TecnIcal support can be soddy
¤ EFP's may be too rIgId for specIfIc organIzatIons tat are eIter new or want to move
In a new dIrectIon In te near future.

EPP IntegratIon
ÌntegratIon Is an extremely Important part to EFP's. EFP's maIn goal Is to Integrate
data and processes from all areas of an organIzatIon and unIfy It for easy access and
work flow. EFP's usually accomplIs IntegratIon by creatIng one sIngle database tat
employs multIple software modules provIdIng dIfferent areas of an organIzatIon wIt
varIous busIness functIons. Altoug te Ideal confIguratIon would be one EFP system
for an entIre organIzatIon, many larger organIzatIons usually create and EFP system
and ten buIld upon te system and external Interface for oter stand alone systems
wIc mIgt be more powerful and perform better In fulfIllIng an organIzatIons needs.
Usually tIs type of confIguratIon can be tIme consumIng and does requIre lots of labor

%he IdeaI EPP System
An Ideal EFP system Is wen a sIngle database Is utIlIzed and contaIns all data for
varIous software modules.
Tese software modules can Include:

A. hanufacturIng: Some of te functIons Include; engIneerIng, capacIty, workflow
management, qualIty control, bIlls of materIal, manufacturIng process, etc.

ß. FInancIaIs: Accounts payable, accounts receIvable, fIxed assets, general ledger and
cas management, etc.

C. Human Pesources: 8enefIts, traInIng, payroll, tIme and attendance, etc

0. SuppIy ChaIn hanagement: Ìnventory, supply caIn plannIng, supplIer scedulIng,
claIm processIng, order entry, purcasIng, etc.

E. Projects: CostIng, bIllIng, actIvIty management, tIme and expense, etc.
|anagement ÌnformatIon System

F. Customer PeIatIonshIp hanagement: sales and marketIng, servIce, commIssIons,
customer contact, calls center support, etc.

C. 0ata Warehouse: Usually tIs Is a module tat can be accessed by an organIzatIons
customers, supplIers and employees.

H. EPP Improves ProductIvIty
8efore EFP systems, eac department In an organIzatIon would most lIkely ave teIr
own computer system, data and database. Unfortunately, many of tese systems
would not be able to communIcate wIt one anoter or need to store or rewrIte data
to make It possIble for cross computer system communIcatIon. For Instance, te
fInancIals of a company were on a separate computer system tan te HF system,
makIng It more IntensIve and complIcated to process certaIn functIons.

Dnce an EFP system Is In place, usually all aspects of an organIzatIon can work In
armony Instead of every sIngle system needIng to be compatIble wIt eac oter. For
large organIzatIons, Increased productIvIty and less types of software are a result.

µ.6) Bistinquisb between closeJ Jecision mokinq system & open
Jecision mokinq system? Wbot is ´Wbot - if´ onolysis? Wby is
more time spenJ in problem onolysis & problem Jefinition os
comporeJ to tbe time spenJs on Jecision onolysis?


Te decIsIon·makIng systems can be classIfIed In a number of ways. Tere are two
types of systems based on te manager's knowledge about te envIronment. Ìf te
manager operates In a known envIronment ten It Is a closed decIsIon·makIng system.
Te condItIons of te closed decIsIon·makIng system are:

a) Te manager as a known set of decIsIon alternatIves and knows teIr outcomes
fully In terms of value, If Implemented.

b) Te manager as a model, a metod or a rule wereby te decIsIon alternatIves can
be generated, tested, and ranked for selectIon.

c) Te manager can coose one of tem, based on some goal or objectIve crIterIon.

Few examples are a product mIx problem, an examInatIon system to declare pass or
faIl, or an acceptance of te fIxed deposIts.

Ìf te manager operates In an envIronment not known to Im, ten te decIsIon·
makIng system Is termed as an open decIsIon·makIng system.

Te condItIons of tIs system In contrast closed decIsIon·makIng system are:
a) Te manager does not know all te decIsIon alternatIves.
b) Te outcome of te decIsIon Is also not known fully. Te knowledge of te outcome
may be a probabIlIstIc one.
c) No metod, rule or model Is avaIlable to study and fInalIse one decIsIon among te
set of decIsIon alternatIves.
d) Ìt Is dIffIcult to decIde an objectIve or a goal and, terefore, te manager resorts to
tat decIsIon, were Is aspIratIons or desIres are met best.

0ecIdIng on te possIble product dIversIfIcatIon lInes, te prIcIng of a new product,
and te plant locatIon, are some decIsIon·makIng sItuatIons wIc fall In te category
of te open decIsIon·makIng systems.

Te |ÌS trIes to convert every open system to a closed decIsIon·makIng system by
provIdIng InformatIon support for te best decIsIon. Te |ÌS gIves te InformatIon
support, wereby te manager knows more and more about envIronment and te
outcomes, e Is able to generate te decIsIon alternatIves, test tem and select one of
tem. A good |ÌS acIeves tIs.

Te types of decIsIons are based on te degree of knowledge about te outcomes or
te events yet to take place. Ìf te manager as full and precIse knowledge of te
event or outcome wIc Is to occur, ten te decIsIon·makIng Is not a problem. Ìf te
manager as full knowledge, ten It Is a sItuatIon of certaInty. Ìf e as partIal
knowledge or a probabIlIstIc knowledge, ten It Is decIsIon·makIng under rIsk. Ìf te
manager does not ave any knowledge watsoever, ten It Is decIsIon·makIng under

A good |ÌS trIes to convert a decIsIon·makIng sItuatIon under uncertaInty to te
sItuatIon under rIsk and furter to certaInty. 0ecIsIon·makIng In te DperatIons
|anagement Is a sItuatIon of certaInty. TIs Is maInly because te manager In tIs
fIeld as faIrly good knowledge about te events wIc are to take place, as full
knowledge of envIronment, and as pre·determIned decIsIon alternatIves for coIce or
for selectIon.

0ecIsIon·makIng at te mIddle management level Is of te rIsk type. TIs Is because of
te dIffIculty In forecastIng an event wIt undred per cent accuracy and te lImIted
scope of generatIng te decIsIon alternatIves.

At te top management level, It Is a sItuatIon of total uncertaInty on account of
InsuffIcIent knowledge of te external envIronment and te dIffIculty In forecastIng
busIness growt on a long·term basIs.

A good |ÌS desIgn gIves adequate support to all te tree levels of management.

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.