SYSTEM MODEL

A model is an abstraction of something

known in real life situation. It represents
real world element or group of elements
(some objects or activity) which is called
entity. Managers use models to represent
problems to be solved. The objects or
activities that cause problems are the
entities
 Types of models.

• i.) Physical models,

• ii.) Narrative models,
• iii.) Graphic models,
• iv.) Mathematical models.
 PHYSICAL MODEL

• A physical model is a 3-dimensional representation

of its entity.
• Physical models used in the business world include
scale models of shopping center and prototypes of
new automobiles.
• The physical model serves a purpose that cannot be
fulfilled by the real thing. For, example, it is much
less expensive for shopping center investors and
automakers to make changes in the design of their
physical models that to be final products themselves
 NARRATIVE MODELS.

• Narrative model describes its entity with

spoken or written words, where both the
listener and reader can understand the entity
from the narrative.
• It is a type of model that managers use daily.
All business communications are narrative
models, which makes the narrative model the
most popular model.
 GRAPHIC MODEL

• A graphic model represents its entity with an

abstraction of lines, symbols, or shapes. This is
another type model in constant use in business
to communicate information to managers.
• Graphic model are used also in the design of
information system. Many of the tools used by
the system analyst and programmer are
graphic in nature.
 MATHEMATICAL MODEL

• Any mathematical formula or equation is a

mathematical model.
• The mathematical model accounts for most of the
current interest in business modeling.
• A big advantage of mathematical model is the
precision with which it can describe the relationships
among the parts of an object
• Mathematics can handle relationships expressed in
more than two dimensions of the graphic model or
the three dimensions of the physical model.
 USES OF MODELS

• i. Facilitate understanding.
• ii. Facilitates communication.
• iii. Predict the future.
 Management
• Is the organization and mobilization of all
human and material resources in a particular
system for the achievement of identified
objectives in the system.
• It is the business of management that both
human and material resources within a system
should be organized and mobilized so that the
objectives of the system can be achieved to
the fullest.
 MANAGEMENT FUNCTIONS

• Planning
• Organizing
• Directing
• Co-coordinating
• Controlling
• Staffing
 Management hierarchy
• Top management (Strategic management) –
determines the strategy of the business by other
levels, allocate work to other management levels.
• Middle management (Management control) –
• Bottom management (operational control) –
responsible for making the rest of the workforce
implement the decision of management. They
give instruction on what staff should do.
 organization principles
• Division
• Authority
• Disciple
• Unity of command
• Unity of direction
• Subordination of individual interest to general interest
• Remuneration of personnel
• Centralization of authority 
• Chain of command
• Order
• Equity
• Stability of tenure of personnel
• Initiative
• Espirit de corps
•  
 INFORMATION

• Information is the data that is processed and is

presented in a form which assists decision-
making.
• Data usually takes the form of historical
records. It may not be organized, and may not
add anything to knowledge.
 INFORMATION NEEDS OF MANAGEMENT
LEVELS
• To meet global challenges
• Capturing opportunities in market place
• Supporting corporate strategy
• Linking departments whose functions are
different
• Enhancing workers productivity
• Increase in quality of goods and services
 CATEGORIES OF INFORMATION

• STRATEGIC INFORMATION – required by the

managers at the strategic management level for
the formulation of organizational strategy.
• TACTICAL INFORMATION – required by the
managers for short term planning and is of use
at management control level.
• OPERATIONAL INFORMATION – it applies to
short periods which may vary from an hour to a
few days.
 CHARACTERISTICS OF OPERATIONAL INFORMATION

• Derived almost entirely from internal sources

• Is highly detailed
• Relates to the immediate term
• is task-specific
• is prepared constantly or very frequently
• is largely quantitative
 CHARACTERISTICS OF TACTICAL INFORMATION

• It is relevant to short and medium term

• ii) Describes or analyses activities or departments
• iii) It is prepared routinely and regularly
• iv) It is based on quantitative measures (cash flow
forecasts, budgetary control or variance analysis
reports, short-term purchasing requirement).
 CHARACTERISTICS OF STRATEGIC INFORMATION

• Derived from both internal and external sources

• Summarized
• Relevant to the long term
• Deals with the whole organization
• It is both quantitative and qualitative (eg overall
profitability, future market prospects, total cash
needs capital equipment needs).
 QUALITIES/ATTRIBUTES OF INFORMTAION

• Accessibility
• Comprehensiveness
• Accuracy
• Appropriateness
• Timeliness
• Clarity
• Flexibility
 INFORMATION SYSTEM
• Information systems are the systems that
collect, processes, stores, analyze and
distribute information for a special purpose.
• information system is a system that provides
information according to a user’s requests.
• Each information system consists of hardware,
software, data, procedures, individuals.
 Components of an information system

• Data; Input that the system takes to produce information

• Hardware ;A computer and its peripheral equipment: input, output, and
storage devices; hardware also includes data communication equipment
• Software; Sets of instructions that tell the computer how to take data in,
how to process it, how to display information, and how to store data and
information 
• Telecommunications ;Hardware and software that facilitate fast
transmission and reception of text, pictures, sound, and animation in the
form of electronic data
• People ;Information systems professionals and users who analyze
organizational information needs, design and construct information systems,
write computer programs, operate the hardware, and maintain software
• Procedures; Rules for achieving optimal and secure operations in data
processing; procedures include priorities in dispensing software applications
and security measures
Organizational information systems could include the following

 
• Marketing Information System,
• Manufacturing/production Information
System,
• Financial/account Information System,
• Human Resources Information System,
• Engineering Information Systems
• Executive Information System.
CHARACTERISTICS OF INFORMATION SYSTEMS

• Passive Information Systems; systems that will

answer queries based on the data that is held
within them, but the data is not altered.
• Interactive Information Systems; one that data
can be entered for processing which may alter the
contents of the database.
• Management Information Systems (MIS); are
software that allows the managers within a
company to access and analyses data.
• A batch processing system ; is used when the
output does not have to be produced
immediately.
• A knowledge-based system (KBS); A system
where all the expert human knowledge
covering a particular topic is brought together
and made available to the user through a
computer system which uses the facts in its
knowledge base by applying rules that may
sensibly be applied to the knowledge.
 CLASSIFICATION OF INFORMATION SYSTEM

• Transactional Processing system

• Management information system
• Office automation system
• Decision support system
• Executive support system
• Business support system
 MANAGEMENT INFORMATION SYSTEM
• MIS can be defined as an assemblage of data (e.g. facts and opinions) that are
processed (e.g summarized, categorized, or projected) in such a way that they
result in intelligent information that management can use to make decisions,
and that the organization can use to attain its goals.

• MIS can also be defined as the combination of human and computer based
resources that results in the collection, storage, retrieval, communication and
use of data for the purpose of efficient management of operations and for the
business planning.

• The main objectives of MIS is to use formalized procedures to provide

management with appropriate information from all relevant sources, which
would enable the manager make timely and effective decisions. The
information must be provided at an acceptable level of accuracy and at an
economical cost.
 Information use of MIS

• Transaction processing,
• Operational control,
• Management control,
• Strategic planning.
 THE IMPORTANCE OF MIS TO BUSINESS
ORGANIZATION
 
• Provision of improved services to customers.
• It facilitates decision making process of managers.
• The routine processing of business transactions is faster and cheaper than manual
method.
• It fasten the planning and control functions of management.
• The information contents of MIS can be used by many managers for their varied
needs.
• It can be used to achieve competitive advantage in the marketplace.
• Expected cost savings/reductions
• Increase in output volumes and Increase in profit
• Increase in accuracy level
• Improvement in working environment
• Improvement in turnaround time
• Tangible benefits, e.g customer relations and achievement of set goals
 Characteristic features of MIS
• MIS supports structured decision at the operational and
management control levels. However, they are also useful for
planning purposes of senior management staff.
• MIS are generally reporting and control oriented. They are
designed to report on existing operations and therefore to help to
provide day-to-day control of operations.
• MIS rely on existing corporate data and data flows.
• MIS have little analytical capability.
• MIS generally used in decision making using past and present data.
• MIS is relatively inflexible.
• MIS has an internal rather than an external orientation.
 THE CONCEPT OF DATA AND INFORMATION:

• Data consists of facts and figures that are relatively

meaningless to the user. It is a piece or collection
of raw facts representing people, objects, and the
day-to-day activities of an enterprise.
• Information is data that have been put into a
meaningful and useful context and communicated
to a recipient who uses it to make decisions. It
involves the communication and reception of
intelligence or knowledge.
 CONCEPTS OF DATA CAPTURE,
VERIFICATION AND VALIDATION.
• Capturing: Data must be originated in some form and verified for accuracy prior to
further processing.
• Verifying: Refers to the checking or validating of data to ensure that it was captured and
recorded correctly.
• Classifying: It places data element into specific categories which provide meaning for
the user.
• Arranging (sorting): Places data element in a specified or predetermined sequence.
• Summarizing: Combines or aggregates data element.
• Calculating: Entails the arithmetic and/or logical manipulation of data.
• Storing: Places data onto some storage media such as magnetic tape, disk etc. where it
can be retrieved when needed.
• Retrieving: Entails searching out and gaining access to specific data elements from the
medium where it is stored.
• Communicating. Transferring data from one location or operation to another for use or
for further processing.
• Reproducing: Duplicates data from one medium to another or into another position in
the same medium
DATABASE MANAGEMENT SYSTEM (DBMS)

• In general, a database system is a computer-

based record keeping system i.e. a system whose
Overall purpose is to record and maintain
information and make that information available
to user on demand.
• Typical business database applications include:
(i.) Stock records (ii.) Personnel records.
(iii.) Customer records (iv.) Accounts, and (v.)
Mailing lists.
 Classification of Database

• Relational database is a sequential representation of the

files, inform of a table having rows and columns where
each row represents a record and the columns
corresponding to the fields.
• The hierarchical database is a tree like representation of
the database files. The records of a file are represented in
a tree like structure with the fields subordinate to the
records in the hierarchy.
• The Network database is the representation of the
database files. The records relationships are shown by
linking.
 Features of Database
• Create and maintain (add, delete, and revise
records) a database.
• Extract and list all records or only those records
that meet certain conditions.
• Make an inquiry.
• Sort record in ascending or descending order by
primary, secondary and tertiary fields.
• Generated formatted reports with sub-totals and
total.
 Managing a database
• ADD new data to the database
• SORT the database into some meaningful
order
• SEARCH the database for types of information
• PRINT data from our database onto formatted
reports
• EDIT data on the database
• DELETE data from the database.
 Advantages of database

• Reduces the amount of data duplication which occurs

using conventional file structures.
• Provides fast and flexible access to information.
• Improves consistency of data stored.
• Provides both data and program independence.
• Encourages integration of functional areas in an
organization.
• Avoids duplicating input data to update multiple
functionally independent files holding the same data.
• Reduces processing for retrospective changes.
 Disadvantages of database

• Takes a long time to design and implement.

• Cost more than conventional systems.
• Require high caliber, experienced and
specialized personnel.
• Require expense hardware and software.
• Recovery is more difficult in case of damage.
Components of a database system
• Data: - A database is a repository for stored data. In
general, it is both integrated and shared.
• Hardware: - The hardware consists of the secondary
storage volumes-disks, drums etc.-on which the data
resides, together with the associated devices, control
units, channels, and so forth.
• Software: - Database Management System (DBMS) is a
collection of software products that is designed to
provide a systematic , integrated and flexible approach
to organizing and accessing data.
 OFFICE AUTOMATION

• Office Automation System or office information systems:

refers to a wide variety of computer-based and non-
computer-based applications that make office workers
more productive at their jobs.
• It refers to the computer machinery and software used to
digitally create, collect, store, manipulate and relay office
information.
• Office automation includes all of the formal and informal
electronic systems primarily concerned with the
communication of information to and from persons both
inside and outside the firm.
 Functions of Office Automation system

• Generate documents/presentation
• Send email
• Scheduling meetings and conferences
• Production of information
• Storing and retrieving documents (archive
server)
• Controlling performance in organisation
 Need for office automation

• Labour and time saving

• Accuracy
• Less chances of committing fraud
• Uniformity
• Control on information
 COMPONENTS OF OFFICE AUTOMATION

• Electronic Mail
• Voice mail,
• Audio conferencing
• Video conferencing
• Facsimile transmission (FAX)
• Desktop publishing
 TELECONFERENCING

• Teleconferencing means meeting through a

telecommunications medium. It is a generic term
for linking people between two or more locations
by electronics.
• Use a telecommunications channel
• Link people at multiple locations
• Interactive to provide two-way communications
• Dynamic, to require users' active participation
 
 Types of Teleconferences

• Audio Teleconference (conference calling)

• Audio graphic
• Video Teleconference
• Computer Teleconference (web),
• business television (BTV), and
• distance education
Uses of Teleconferences
• Education
• Business/corporate communication
• Governance
• Media courses/services
 Strengths of teleconferencing
• Accessibity to geographical dispersed group
• Communication at local/regional/national level
• Quality teaching using multiple teaching
resources
• Real time interaction from remote target
• Use of various teaching methods enhances
leaning
• Cost effective
 TELECOMMUTING
• A working arrangement or work style where an
employee regularly does his or her work off-site,
or outside of the principal office.
• Telecommuters typically work from home one or
more days a week and communicate with the
office using telephones and over the Internet. 
• Telecommuting is a type of flexible work
arrangement, which can include other non-
traditional setups like flexible schedules.
 IMPORTANCE OF OFFICE AUTOMATION
(O.A.)
• its ability to improve efficiency; reduce wasted
resources associated with rejects or errors;
increase consistency, quality, and customer
satisfaction; and maximize profit.
• Office automation helps in optimizing or
automating existing office procedures. The
backbone of office automation is LAN.
VARIOUS TYPES OF INFORMATION SYSTEM

The computer portion of the information processor

contains each of the following computer-based application
areas:
(i)Transaction processing Systems or Accounting
Information System, Electronic Data Processing System.
(ii.) Information Reporting Systems
(iii.) Decision Support Systems.
(iv) Office Automation System or office information systems
or virtual office.
(v) Executive information systems
(vi) Artificial Intelligence or Expert Systems
 Transaction processing system(TPS)
• A transaction is a business event: a sale, a purchase, a
payment, the hiring of a new employee, and the like.
• These transactions can be recorded on paper and
later entered into a computer system; directly
recorded through terminals of a transaction
processing system (TPS), such as a point-of-sale (POS)
machine; or captured online when someone transacts
through the Web.
• A TPS is any system that records transactions.
• They serve the operational level of business
organization hierarchy.
 Characteristics of TPS
• TPS are large and complex in terms of the number of
system interfaces with the various users and databases
and usually developed by MIS experts.
• TPS’s control collection of specific data in specific formats
and in accordance with rules, policies, and goals of
organisation- standard format
• They accumulate information from internal operations of
the business.
• They are general in nature—applied across organisations.
• They are continuously evolving.
 The goals of TPS is to improve transaction
handling by:
• Speeding it up
• Using fewer people
• Improving efficiency and accuracy
• Integrating with other organisational information
systems
• Providing information that was not available previously
Examples—Airline reservation systems, ATMs, order
processing systems, registration systems, payroll
systems and point of sale systems.
 Information Reporting Systems (IRS)
• An information system that provides predefined
types of information to management for
relatively structured types of decisions.
• The main output of the IRS has been hard-copy
reports, it equally produces display output on
screens either in continuous scrolled form.
• IRS are summary and exception reports used for
both management planning and management
control functions.
 Characteristics of MRS
• They are large and complex in terms of the number of system
interfaces with the various users and databases.
• MRS are built for situations in which information requirements
are reasonably well known and are expected to remain relatively
stable. This limits the informational flexibility of MRS but ensures
that a stable informational environment exists.
• They do not directly support the decision-making process in a
search for alternative solutions to problems. Information gained
through MRS is used in the decision-making process.
• They are oriented towards reporting on the past and the present,
rather than projecting the future. Can be manipulated to do
predictive reporting.
• MRS have limited analytical capabilities. They are not built
around elaborate models, but rather rely on summarisation and
extraction from the databases according to the given criteria.
 Decision Support Systems
• A decision support system is a form of
information system that provides tools that help
managers make decisions with both internal and
information in the manner that best suits the
decision they are currently trying to make.
• The DSS provides the manager with computing
and communications capabilities to develop his
or her own decision models and information
banks.
 PROPERTIES OF DSS:

• They get information both from internal and external sources of

information.
• They are flexible to changing needs;
• They are easy to use even with little or no assistance from IT
Professionals.
• Decision support system use sophisticated data analysis and
modeling tools.
• DSS provides support for problems and decisions that are semi
structured, unique or rigidly changing and not easily specified
in advance.
• They provide quick responses to various queries made by
managers.
 The three phases of decision making

Intelligence
• Collect data from inside the organization.
• Collect data from outside the organization.
• Collect information on possible ways to solve the problem.
Design
• Organize the data; select a model to process the data.
• Produce reasonable, potential courses of action.
Choice
• Select a course of action.
 The Data Management Module

• A DSS’s data management module is a

database or data warehouse that provides the
data for the intelligence phase of decision
making.
• A data management module accesses the data
and provides a means for the DSS to select
data according to certain criteria: type of
stock, range of years, and so on.
 Executive information systems(EIS) or
Executive Support Systems (ESS)
• It is a special kind of decision support system that is designed
to meet the special needs of executives. It is a system that
provides information to the executive on the overall
performance of the firm.
• ESS has menu-driven user-friendly interfaces, interactive
graphics to help visualisation of the situation and
communication capabilities that link the senior executives to
the external databases he requires.
• Top executives need ESS because they are busy and want
information quickly and in an easy to read form. They want to
have direct access to information and want their computer set-
up to directly communicate with others. They want structured
forms for viewing and want summaries rather than details
 Difference between DSSs and ESs
• DSSs use data from databases.
• ES uses a knowledge base, which is a collection of facts and
the relationships among them.
• ES does not use a model module but an inference engine.
• The inference engine is software that combines data that is
input by the user with the data relationships stored in the
knowledge base.
• The result is a diagnosis or suggestion for the best course of
action.
• In most ESs, the knowledge base is built as a series of IF-THEN
rules.
 Artificial Intelligence or Expert Systems.
• An expert system (ES) is developed to emulate the knowledge of an
expert to solve problems and make decisions in a relatively narrow
domain. A domain is a specific area of knowledge.
• The purpose of ESs is to replicate the unstructured and undocumented
knowledge of the few (the experts), and put it at the disposal of the many
other people who need the knowledge, often novices or professionals in
the same domain but with far less expertise.
• Advanced programs might include neural networks (computer programs
that emulate the way the human brain works) which can learn from new
situations and formulate new rules in their knowledge bases to address
events not originally considered in their development.
• Expert systems and neural networks are two techniques researched and
implemented in a field called artificial intelligence (AI). The field is so
called because it focuses on methods and technologies to emulate how
humans learn and solve problems.
  
ELEMENTS REQUIRED FOR ANY INFORMATION SYSTEM

• Input
• Output
• Processor
• Control
• Feedback
• Boundary and interface
• Environment
 Project management:
• is a methodical approach to planning and
guiding project processes from start to finish
• is the application of processes, methods,
knowledge, skills and experience to achieve
the project objectives.
• is the application of processes, methods,
knowledge, skills and experience to achieve
the project objectives.
• A project can be defined as a temporary
sequence of unique, complex and connected
activities having one goal or purpose and that
must be completed by specific time, within
budget and according to specification.
• It is a planned undertaking that has a
beginning and an end and that produces a
predetermined result or product.
• Every project is constrained by its scope, time
goals and cost goals.
Projects have the following characteristics:

• Unique purpose – a project is undertaken to fulfil a specific

objective
• Temporary – projects exist for a limited duration of time;
often not perpetual
• Require resources – such as money, manpower and machine
resources
• Should have a primary sponsor – usually an organisation, a
department or individual
• Involves uncertainty – a great deal of the project
implementation is unknown the need for planning and
management.
STAGES OF PROJECT MANAGEMENT PROCESSES

• initiation,/ Concept
• planning,/ Development
• Implementation / executing,
• controlling, and
• closing.
 Knowledge areas a project managers must
develop

• Scope management
• Time management
• Cost management
• Quality management
• Human resources management
• Communications management
• Risk management
• Procurement management and
• Integration management
 A project is successful when:
• The resulting information system is acceptable
to the customer.
• May need to specifically mention the
importance of functionality of the delivered
system
• The system is delivered on time
• The system is delivered within budget
 Causes of project failures
• Failure to establish top-management commitment to the project
• Lack of organisation’s commitment to the system development
methodology
• Taking shortcuts through or around the system development methodology
• Poor expectations management
• Premature commitment to a fixed budget and schedule
• Poor estimating techniques
• Over-optimism
• Inadequate people management skills
• Failure to adapt to business changes
• Insufficient resources
• Failure to manage the plan
 The core components of project
management are
• defining the reason why a project is necessary;
• capturing project requirements, specifying quality of the deliverables,
estimating resources and timescales;
• preparing a business case to justify the investment;
• securing corporate agreement and funding;
• developing and implementing a management plan for the project;
• leading and motivating the project delivery team;
• managing the risks, issues and changes on the project;
• monitoring progress against plan;
• managing the project budget;
• maintaining communications with stakeholders and the project
organization;
• provider management;
• Closing the project in a controlled fashion when appropriate