What is Information

Information is processed data presented in a form that is

meaningful to the recipient and is of real value in the
current context or decision making process

Data
Storage

Data Processing Information

Data is the raw material for processing information. Data

itself has no meaning or value. It is a set of facts about the
Entities in the Real World 1
The Need for MIS ??
Tough Global Competition

To be able to Quickly React to Changing Environment

Faster Decision Making with Minimum Uncertainties

To have a Competitive Edge

Increase the Organizational Responsiveness

To Manage Global Business Operation

To Establish Proper Management and Control

Because

 Knowledge is an Asset and must not be lost

 Better Productivity

 Changing Organization Structures – Flattening and De-Centralizing

 To Empower the Employees with Information at the Right Time

 Legal Manifestations
2
 What Makes MIS Feasible
 Cheap Computing Power (High Processing Power / Unit
Cost)
 Computing power doubles every 18 months
 Advances in data storage
 Advances in data mining techniques
 High End Technologies
 Portable Computing
 Advances in telecommunications / Networking
infrastructure
 Affordable Software Solutions

3
 Definition of MIS
A Management Information System Is -
 An Integrated User Machine System
 For Providing Information
 To Support the Operations, Management, Analysis and Decision
Making Functions In an Organization

A Management Information System Utilizes -

 Computer Hardware and Software
 Manual Procedures
 A Database
 Models for Analysis, Planning, Control and DM

4
 Other Definitions of MIS
MIS is a federation of several functional Subsystems.
If we say that the MIS is a federation of several sub systems,
then there must be an integration of these sub systems. The
integrator is generally the database
It is the wide Variety of Computer Resources dedicated to
perform transaction processing, to provide processing for a
formal information and reporting systems, and to accomplish
managerial decision support systems are broadly classified as
the as the Organizations MIS

5
 Physical Components of MIS
Hardware Refers to the Physical Computer Equipment System
Software That Basically comprises of the System and the
Application Software that make the MIS Possible
Database Is typically the database Software that is used to
store the data on which the whole MIS operates
Procedures Which comprises of User Manuals and the the Work
Flows that need to be followed to work with the MIS. For
Example “How to Book a Sales Order”
Operating Personnel Are the People who work on the MIS,
Systems Analysts, Data Preparation Personnel, Database
Administrator Etc

6
Processing Functions of MIS
Processing Transactions
Transaction are the unit activities that are performed
by an organization
Maintaining Master Files
Store Permanent / Historical Data / Concentrated Data
Produce Reports
Regular / ADHOC
Inquiry Processing
Process Interactive Support Application
Enables Planning, Analysis and Decision Making
Function in an Organization

7
 Outputs for Users of An MIS
There are various types of outputs that are provided by an MIS
 Transaction Documents / Screens
• Informational, Action, Investigational
 Preplanned Reports
• Monitoring Information, Problem Finding Information,
Action Information, Decision Support
 Preplanned Inquiry Responses
 Ad-hoc Reports / Inquiry Responses
 User Machine Dialog Results

8
Activity & Functional Sub - Sys
Strategic Planning

Management Control

Information Processing
Operational Control

Finance & Accounting

Transaction Processing

Top Management
Production
Marketing

Logistics

DATABASE Personnel
9
MIS Support for an Organization

MIS
For
Strategy
and
Policy Planning
and DM
EIS

OAS
Management Information
for Tactical Planning and DSS
Control

Management Information For MRS

Operational Planning, DM and Control

Transaction Processing
Inquiry Response TPS
10
Information Rights
PRIVACY: Right to be left alone
Fair information practices (FIP):
 No secret personal records
 Individuals can access, amend information about
them
 Use info only with prior consent
 Managers accountable for damage done by
systems
 Governments can intervene

11
 INFO SYSTEMS, LEVELS, DECISIONS
ORGANIZATIONAL LEVEL
TYPE OF
DECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC

STRUCTURED ACCOUNTS
RECEIVABLE
ELECTRONIC PRODUCTION
SCHEDULING COST OVERRUNS
TPS
OAS MIS
SEMI- BUDGET
STRUCTURED PREPARATION

PROJECT
SCHEDULING DSS
FACILITY
LOCATION
KWS ESS
UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTS
NEW MARKETS

12
 IS for Operational Control
Operational Control is the process of ensuring that operational
Activities are carried out effectively and efficiently. It makes
use of pre established procedures and Decision Rules
There are various processing sub systems for operational
Control
 Transaction Processing
 Report Processing
 Inquiry Processing
Eg are Transactions for inventory withdrawal, or checking of
inventory levels, Orders pending for a specified duration

13
 IS for Management Control
Management Control is required by Managers of Departments,
Cost Centers
The Various types of information that are required by this
level of Management are
 Planned Information
 Variances from Planned Performance
 Reasons for Variances
 Analysis of Possible Decisions or courses of Action

14
 IS for Strategic Planning
The Purpose of Strategic Planning is to develop Strategies by
Which an Organization will be able to achieve its Objectives
It is used by the Top Management Group. Such Activities do
not take place at a regular intervals / frequency
There is a considerable need for external Data which may be
bought from WTO, Marketing Research Organizations,
Government Agencies etc
The Decision are Largely Unstructured and are widely
influenced by external factors. The Decisions generally have a
futuristic scope. Various types of Decision Making Models are
used for specific Analysis and Decision Making

15
 Information Requirements
Characteristics Operational Management Strategic
of Information Control Control Planning

Source Largely External

Internal

Scope Well Defined, Wide

Narrow

Level of Detailed Aggregate

Aggregation

16
 Transaction Processing System
TPS : A transaction is defined as a business event /
activity.
A Transaction processing system supports the processing
of a firms transactions
Transaction Processing Systems are generally responsible
for data capturing
Transaction Processing System must be capable of
Handling large volumes of data
Must be capable of handling the transactions on line, rather
than on a Batch Mode
It is the core of any MIS. The Other information systems
work by utilizing the information that is captured by TPS 17
Management Reporting Systems
MRS : A is an information system that provides predefined
types of information to the Management for relatively
structured types of information
MRS is typically used for planning and management
control. Essentially the data captured by TPS is
summarized into a more meaningful form to allow the
managers have a global picture of the heath of the
business
Various Categories of MRS
 Scheduled Reports
 Exception Reports
 Demand Reports 18
 TPS DATA FOR MIS APPLICATIONS

TPS MIS
Order Processing SALES
DATA
System

ORDER FILE UNIT

PRODUCT
Materials Resource COST MIS REPORTS
Planning System
PRODUCT
CHANGE
PRODUCTION MASTER FILE
DATA
General Ledger
EXPENSE MANAGERS
System DATA

ACCOUNTING FILES MIS FILES

2.23 19
 Decision Support Systems
Decision Support Systems refer to a class of Systems which
support the process of Making Systems.
DSS are used because they
 Compensate for fear of uncertainty of the outcome of decisions as
perceived by the Human Mind
 Does not suffer from Latency Effects
 Has a Wider Coverage on the various possibilities

The DSS must support the Decision and not replace the normal
Human Decision Making Behavior
Should assist in making decisions to solve semi-structured
problems
Should be Interactive, taking Regular Consolations with the
User and not an isolated process 20
 The Decision Making Process

INTELLIGENCE Intelligence Implies Searching the

Environment for Conditions calling for
Decisions
Design is inventing, developing and
DESIGN analyzing the possible courses of
Actions
Choice is selecting an alternate course
CHOICE of Action from those available. A Choice
is made and implemented

21
 Decision Making
Structured Decisions Unstructured Decisions

 Are Frequent
      Are Infrequent
    

 Flourish in Definite
      Thrive in Ambiguous
    

Environments Environments
 The decision can be
      There is no pre-established
    

expressed as a set of steps / decision procedure

flowchart / decision tree /
formula
 Data requirements are well
    
 Not so 
    

known in advance  High Risk Associated with

    

 Low / No Risk Decisions

    
Such Decisions

22
Structured / Unstructured Dec

Un
For high level

St
Management

ru
ct
ur
d e

St
For low level

ru
Management
ct
ur
ed

23
 Decision Tables
1 2 3 4 5 6

Conditions

Actions

Rules 24
Executive Information Systems
Is to be used by the top executives of the organization
It sits on the top of all function information systems
EIS is implemented by the use of special Tools such as
Business Objects etc. The choice of tool is very important
since these executives cannot spend a lot of time in
learning the technologies
While Deigning an EIS due consideration should be given
to
Business Content Strategic Planning and Decision Making
Support, Broad Based Computing Facility
Presentation Features such as drill down reporting,
exceptional Reporting, Graphic Summary, OA Capabilities,
Ease and Learning of use and Customization 25
 Office Automation Systems
Office Automation is application of Computer and Related
Technologies like Communication and Networking that
integrate the General Office Tasks so that the efficiency of the
Work Force if greatly improved
The OA Applications are
 Documents management systems like DBMS for Data
Management Storage And Handling
 Message Handling Systems like internet, intranet,
mailing systems for Communication etc
 Teleconferencing / Video Conferencing for
Communication and Decision Making
 Office Support Systems like Word Processors / Graphic
26
Packages etc for Decision Making and Communication
 Office Automation Systems

Thus the Key Objectives of OAS are

 Toward a “PAPERLESS” office
 Redesign of work flow
 Integrated software
 Ergonomic design
 Bright, cheerful work space

27
 Knowledge Based Systems
Knowledge work is that work that involves thinking,
processing, information, formulating analyses,
recommendations and procedures
KBS / ES is an knowledge intensive program that solves a
problems by capturing the expertise of a human brain in
limited domain of knowledge and experience. It is a self
learning system
There are 5 main areas of AI research
 Expert Systems
 Natural Languages
 Vision Systems
 Robotics
 Neural Networks 28
General Concepts of Information
Usefulness of Information : If the cost of Information <
than the value benefits to be deduced from it
Quality if Information : How efficiently it motivates human
actions and contributes to effective decision making
Utility of Information
• Form
• Time
• Place
• Possession
Value of Information : Change in the Decision Behavior -
the cost of procuring the information

29
 Water Fall Model
Preliminary
Design
Requirements
Analysis
Systems
Design
Coding

Testing

Maintenance

30
Prototype Model
Requirements
Gathering and
Refinement

Engineer the Quick

Product Analysis and
Design

Refine
Prototype Build
Prototype

Customer
Evaluation

31
Differences
Waterfall Model
 Mature Processes & clear
requirements
 Low involvement of user
 Key emphasis on each
phase
 Structured and less time
consuming
 Lesser Costs
 Appropriate where
requirements are stable
and implementation
cycles are small
Prototype Model
 Requirements not very
clear to the user
 High involvement of user
 Lack of focus on design,
coding and testing phases
 Repeated Iterations,
hence more time
consuming
 Greater costs
 Appropriate where
implementation cycles are
small and requirements
are changing
32
Spiral Model
Planning Risk Analysis

Customer Engineering
Evaluation

33
Spiral Model - Features
 Is a combination of waterfall and prototype models with
an added function – Risk Analysis
 Appropriate for projects with large implementation
cycles > 2 years
 Coding id deferred to as late as possible in order to be
able to utilize latest technologies

34
 System Engineering & Analysis
The Set Of Activities Carried out during this phase are
 Identification of Customer Needs
 Evaluate System Concept for Feasibility
 Perform Technical Analysis
 Allocation System Requirements to Software, Hardware
People, Databases and Procedures
 Establish Cost And Schedule Constraints
 Create a System Definition that forms the Foundation
for Subsequent Work

35
 System Engineering & Analysis
Project Size and effort Estimation is done in order to
determine the Cost, Time and Manpower required to develop
such a project
Cost Benefit Analysis
 Tangible benefits
 Intangible benefits

Feasibility Analysis
 Technical Feasibility
 Economic Feasibility
 Legal Feasibility
 Operational Feasibility
 Schedule Feasibility 36
 Requirements Analysis
Is a communication intense activity
It is the prime phase wherein the requirements are
captured
It is really a complex activity, which involves converting a
set of nebulous, confused thoughts in the minds of a User
into a set of clear, well defined and well represented facts
that are to be furnished by the system
Why do projects fail
 Cost Overruns
 Time Overruns
 Poor Quality of the Product
 Requirements Changed or were not understood properly
37
 Requirements Analysis
RA is a communication Intense Activity a process of discovery,
refinement, modeling and specification, wherein both the
developer and customer take an active role in the requirements
analysis and specification
The Activities for RA are broadly divided into
 Problem Recognition
 Evaluation and Synthesis
 Modeling
 Specification
 Review

This process helps to lay down the specifications for Software

Function and Performance, Software’s Interface with other
systems and establish the design constraints to be met 38
 Requirements Analysis-Modeling
Models are developed during the Requirements Analyst that
allow the user and the Analyst to gain a better understanding
of the system. The Models Focus on What to Do and not How
to Do
Utility of Models
Aid in understanding Information, Function and Behavior of a
system thereby Making RA more easy and more systematic
Models are the focal point of Review and hence the key to
determine Completeness, Consistency and accuracy of Function
Become the Foundation of Design – Providing designer in
Essential Representation of the Software that can be mapped to
implementation
39
Methods of Collecting Information
Questionnaires
 Open-Ended
 Closed Ended
Observation Methods
Delphi Techniques
Deriving from Existing Information Systems
 Manual
 Electronics
Group Discussions
Brain Storming

40
 Requirements Analysis
To Reach a Clear common Understanding between the User
and the Development Team - modeling, flowcharting,
structured English representation and other specific methods
are used to capture the Various Complex Business Scenarios
Data Flow Diagrams (DFD’s) is a graphical technique that
depicts information flow and the transforms that are applied as
data flows from input to the output
Rules for drawing a DFD
Sources cannot leak data directly into data store
A store cannot directly pass on information to a destination
Data cannot flow directly from one store to another
Any process producing output must be a source itself
Any process with only input should be a data destination
Each Subsystem must be further exploded in the next level DFD
41
Requirements Analysis

Process or Function that operates upon a

data to perform a specific function

Data Flow / Data Item

External Entity that represents the source

or sink of data

Represents a data storage that is generally

a permanent data storage
42
 DFD’s – Case Study I
Case : Depict the process for Customer
withdrawing cash from a Bank through a
Teller

The following considerations have been taken

The Customer is making a Withdrawal using
a Withdrawal slip
The Customer is aware of the banking
procedure and has sufficient knowledge

43
DFD – Tips – How to make one
Identify the possible users that may be
involved in the procedure to be
accomplished
Decide on the probable actions that are
required to complete the process. It is not
necessary to be over enthusiastic but do
allow for possible additions as your diagram
progresses.
Work out the data that is going to be
needed to carry out each of these actions.
Lastly put them all together like a jigsaw
puzzle

44
 DFD’s – Customer Withdrawal
2.Complete
Account No Withdrawal Information
1. Customer 4. Teller
Amount Slip
Receipt, Information Signature,
Cash, Card
Card
4. Validate
6. Pay New Bal. 5. Process Account Transaction
Balance Cash Amt. Transaction Debit Info And
balance

New Balance Debit Amt Valid A/C Account No

Customer Account Info

45
Data Dictionary
Is a structured Repository of data about data
(MEDADATA). It is a rigorous definitions of
all the DATA elements and Data Structures
 Data Elements – are the smallest unit of data
that provides for no further decomposition. Eg.
Date
 Data Structure – A group of data elements
handled as a unit. For Eg the Customer Account
info is a data structure of data elements like
AccNo, Name, Address, Balance, Signature,
Credit and Debit Information and so on.
 Data Flows and Data Stores

46
 Systems Design
Systems Design is Defined as the process of applying various
techniques and principles for the purpose translating the
requirements into a representation of the software in sufficient
details to permit its physical realization
The Importance of design
Maintenance
Maintenance
Test
Test
Implementation Implementation
Design
Design is the place where quality is fostered into the
software

47
 Systems Design
Informational
Model
Functional Model
Design Code and
testing Phase absorb
Behavioral Data Design almost 75% of the
Model Design Software Cost
Architectural
Design
Other
Requirements Code
Procedural
Design

Test

48
 Systems Design
System design can be categorized into various factors such as
Input Design : All care must be taken to take the correct
system inputs in the most efficient and simple way. Input
Design includes determining the various means by which the
System would receive the inputs from the surrounding such as
data Entry Screens, Bar Code Readers etc. It also accounts for
the validations that would be performed by the system in order
to check for the correctness of the data being entered. A
correct input a very essential in order to allow successful
functioning of the system in desired fashion
Output Design : Implies the careful design of the out
interfaces such as screen designs and Report Layouts. The
output response time should be carefully designed and should
be the maximum possible 49
 Systems Design
Data Design : Implies defining the data dictionary that
would be used to capture the data the would be captured /
generated by the system. This is one of the most important
design phases since the Data Design directly would affect the
performance of the system
A good database design is one that not only allows you to
store the correct representation of data, but also allows you
to retrieve the data in a simple and efficient Manner
Care should be taken to defined the low level database
parameter at this phase. Instead ER Diagram and the Data
Integrity constraints should be explicit, allowing the flexible
choice of the database details to be taken care of at the
implementation level
50
 Systems Design
Architectural Design : The prime Objective is to develop a
modular program structure and represent the control
relationship between the various components. It also includes
the design of program structure and data structure, defining
the interfaces that enable the data to flow throughout the
program

P1 M
P2
P1 P3
P3 P1 P2
P4
P2 P5
P5 P4 P3 P4

P5

51
 Systems Design
Procedural Design : This occurs generally after the data and
architectural designs have been accomplished. It is used to
define the algorithmic details to implement the various
operations that would be performed on the data. The
procedural design can be done by using Structured English,
Graphical Design Notations, etc
Examples

If <Condition-Description> DO While <Condition-Description>

Then <Block Pseudo code> <Block Pseudo code>
Else < Block Pseudo code > EndDo
End If

52
 Coding
Coding Involves the translation of the Detail Design
Representation into a Programming Language Representation
Thus to Code you need a Programming Language. The choice
of the Language generally determines the complete life Cycle. A
good Programming Language Will
 Support Modularization (Functions, Procedures, Logical Units)
 Support for Abstract Data Structures
 Allows Use of Complex Data Types
 Ease of Learning, Using
 Intelligent Compiler to produce Machine Efficient Code
 Source Code Portability – Java, VB.net, 4GL’s. E.g. SQL
 Maintainability
 Ability to Plug Into Other Software (OLE, COM, CORBA etc) 53
 Coding
The Output of the Coding Phase is Lines of Code

Software Design Coding Lines Of Code

Categories of Programming Languages

 First Generation Languages Eg Assemblers Compile
 Second Generation Languages Eg FORTRAN
 Third Generation Languages
General Purpose Machine Exec Code
Object Oriented
Specialized Languages
 Fourth Generation Languages Eg Query Generators 54
 Testing
Testing is the critical element of Software Quality Assurance –
representing the ultimate review of specification, design and
coding. Testing cannot show the absence of a defects, it can
only show that the defects are present
Unit Testing : Is used to test the a individual component and
takes place as soon as a unit component is developed
Integration Testing : Is carried out between the various
dependant components to ensure that the various components
are able to perform the designation Function in relation to each
other
Functional Testing : Is carried out to ensure that the product
meets the acceptance criteria that has been defined during the
RA Phase. In short it ensure that the system
55
Testing Strategies
System Engineering
S Requirements Analysis
R
D Design
C
Coding
U

I Unit Testing
V / FT
ST Integration Testing
Functional Testing

System Testing
56
Implementation of MIS
There are two scenarios of Information
Systems implementation
 Case I : When no Information Systems Pre-Exist
in the organization
 This case is easy, the new information systems are right
away implemented in the organization. There are no
specific complexities involved
 Case II : When there is an existing information
System in Organization.
 This requires special handling since the existing
information systems hold important data, which is useful
to the organization and cannot be done away with
 The data from existing systems need to be ported to the
new information systems

57
Implementation of MIS
The specific four approaches for
Information systems Replacement by
new Systems are
 Direct
 Parallel
 Modular
 Phase-in

58
Implementation of MIS
Direct Approach
 Refers to the case in which implementation of new system is
done and immediately the old system is discontinued.
 It is also referred to as the Cut-off Approach.
 It is Applicable when
 Old system is very small or simple
 It is judged absolutely worthless
 The new System is radically different from the existing one
 It involves a high risk of failure

Old System New system

59
Implementation of MIS
Parallel Approach
 The new system is installed and operated in
parallel with existing system till it has been tested
thoroughly., then the current system is cut off
 The outputs from new and existing system are
compared from each system during the parallel
phase and differences are reconciled
 It is expensive since it requires duplication of
effort to maintain dual systems
 It is need for critical operations

Old System
New system New system

60
Implementation of MIS
Modular Approach
 Is a pilot approach, refers to
implementations of systems on a
piecemeal basis
 Advantages
 Risk of System failure is localized
 Problems identified in the system can be
corrected before further implementation

Module (a) old Module (c) new Module (a) new Module (c) new
Module (b) old Module (d) new Module (b) new Module (d) new

61
Implementation of MIS
Phase-in Implementation
 This method is referred to as cut over by segments
approach and is similar to the modular approach
 The system itself is segmented and not the organization
 New data collection activities are implemented and an
interface mechanism with old system is develop, which
allows old system to operate with new data
 Later new data access, storage and retrieval activities are
implemented
 Then , again interfaces with old systems are developed
 Note : High Costs are involved but needed for large
enterprises

Old System
Function (a) Function (b)
Old New
62
Database Management
Entity
 Anything of interest to the Data Item
user about which data is to
be collected
Record
Attributes
 Characteristics about the
entity which are relevant to File
record

Database

63
Database Management
The Initial Approach was to develop files to store
information
 Thus data files were developed and maintained separately
for individual applications
 Problems
 Data duplication
 Same data stored at different location, to be processed by
different applications
 Data inconsistency
 Lack of data integration
 Information spread across different files, need complex programs
for data extraction
 Data Dependence
 Applications in file processing systems are data dependant
 Program Dependence
 Applications / Program manipulate the information in the files

64
Database Management System
A database management system is a
collection of software that not assist in storing
information, but also aid in quick and efficient
retrieval of data.
The objectives of database is to have
 Controlled data redundancy
 Enhanced data consistency
 Data independence
 Concurrency Control
 Ease of Use
 Economical
 Recovery from failure

65
 ETHICAL, SOCIAL & POLITICAL ISSUES

INFORMATION POLITICAL ISSUES PROPERTY

RIGHTS RIGHTS &
&OBLIGATIONS OBLIGATIONS
SOCIAL ISSUES

ETHICAL ISSUES

INFORMATION &
TECHNOLOGY

INDIVIDUAL
ACCOUNTABILITY SYSTEM
& CONTROL QUALITY
SOCIETY

POLITY

4.5 66
QUALITY OF LIFE
Role of End-Users in IS Development
In this case the end-users develop information system with little
help from technical specialists using 4th generation tools
Strengths
 Increased productivity using 4th generation tools
 query languages
 graphics
 report generators
 application generators
 Short development times
Weaknesses
 Relatively inefficient
 Slow transaction processing
 May carry high cost
 Large files can degrade performance
 Nonprocedural approach may hamper logic & updating
requirements
 Lack of Consistency and approach to Software Development
 Lack of a process approach for software Development
 Lack of quality approach (Testing, Documentation etc)
 Disassociation from Primary Job for which the person was hired
67
Role of End-Users in IS Development

Management Benefits:
 Improved requirements determination
 Increased user involvement & satisfaction
 Reduced application backlog
Management Problems:
 Meet organizational objectives?
 Quality assurance?
 Inadequate methodology; testing;
documentation?
 Lost control over data?
68