Management
Information
System
By:- Ms Garima Singhal
Unit- 01
Management Information Systems - Need, Purpose and
Objectives, Contemporary Approaches to
MIS, Information as a strategic resource, Use of information
for competitive advantage, MIS as an instrument for
organizational change. Information Technology –
Characteristics and emerging
trends, IT Capabilities and their organizational impact, IT
enabled services. Transaction Processing
System: Characteristics and its importance
Management Information System
Management: Information:
Management can be defined as the procedure of The word information is derived from the
planning and regulating the operations of an Latin word 'informare which means "give
organization, Framing of policies, their execution form to°. Information is data that has been
and staffing of employees are its key tasks. The processed and retrieved in such a way that it
management procedure can be analyzed with is meaningful to the person who receives it.
the help of the manager's actions. These are as
follows:
1) Planning
2) Organizing
3) Staffing
4) Directing
5) Coordination
6) Controlling
System:
A group of elements is called a system… These
elements are called sub-systems. All sub-systems
are grouped together to serve a common purpose.
Management information systems (MIS) provide information in the form of reports and
displays to managers and many business professionals. For example, sales managers may use
their networked computers and Web browsers to receive instantaneous displays about the
sales results of their products and access their corporate intranet for daily sales analysis
reports that evaluate sales made by each salesperson.
Following are some definitions of MIS:
According to G.B. Davis, "A definition of
management information system, as the term is
generally understood, is an integrated, user-
machine system for providing information to
support operations, management, and decision-
making functions in an organization. The system
utilizes computer hardware and software, manual
procedures, models for analysis, planning, control
and decision-making and a database“
According to Kenneth Hamlett, "Information system
refers to the practice of integrating computer
systems, hardware and software used to meet an
organization's strategic goals".
Categories of Management Information Systems
A management information system is a broad term that incorporates many specialized systems. The major types
of systems include the following:
•Executive Information System (EIS): Senior management uses an EIS to make decisions that affect the entire
organization. Executives need high-level data with the ability to drill down as necessary.
•Marketing Information System (MkIS): Marketing teams use MkIS to report on the effectiveness of past and
current campaigns and use the lessons learned to plan future campaigns.
•Business Intelligence System (BIS): Operations use a BIS to make business decisions based on the
collection, integration, and analysis of the collected data and information. This system is similar to EIS, but both
lower-level managers and executives use it.
•Customer Relationship Management System (CRM): A CRM system stores key information about customers,
including previous sales, contact information, and sales opportunities. Marketing, customer service, sales, and
business development teams often use CRM.
•Sales Force Automation System (SFA): A specialized component of a CRM system that automates many
tasks that a sales team performs. It can include contact management, lead tracking and generation, and order
management.
•Transaction Processing System (TPS): An MIS that completes a sale and manages related details. On a basic
level, a TPS could be a point of sale (POS) system or a system that allows travellers to search for a hotel and
include room options, such as price range, the type and number of beds, or a swimming pool, and then select and
book it. Employees can use the data created to report on usage trends and track sales over time.
Characteristics of MIS
MIS is designed from the
MIS as a whole improves the top to bottom but does
efficiency of an organization. It MIS is centrally
not necessarily start from
helps in efficient document synchronized so that all its
management needs or
preparation, provides a high components such as data
the overall business
level of services to individuals processing, office
goals.
and external organizations, automation, intelligence
helps in the early detection of and decision support Management Oriented:
warnings about internal and systems, are developed
external problems, and also in and managed in a planned
identifying opportunities. It and coordinated manner.
A MIS must be one that assists in the overall Coordinated System:
can be easily modified to management of the
changing circumstances. It organization and improves the
must be capable of manager's ability to deal with
expansion, accommodate unexpected problems
growth or new types of Enhances Productivity:
processing activities, and
contract as and when it’s
required.
Flexible:
Management directed
Sub system concept
Feedback system
Need of MIS
To implement MIS, organizations should
have clarity about the need for information at
The Need of MIS is due
different levels of management.
to following reasons
1 Efficiently storing and managing data of all business functional
areas.
2 Fast and accurate delivery of information, as and when needed. While Processing
gathered data and developing information from it.
3 Information availability for production and inventory. While Providing information about the current economic
status of the company. And Faster implementation of results available from a reliable data source.
Purpose and Objectives of MIS
Data Capturing Processing of Data
Store the Information Retrieval of Information Dissemination of Information
Nature of MIS
Report-Orientation: Action-Orientation:
The sole purpose Or idea of MIS has changed greatly in The working of MIS further altered due to
today's time with the changing requirement of the user. A the changed need of information.
user is interested in the exact information rather than dealing Information gathered should lead to some
with voluminous data. Different individuals can extract action, decision, investigation or research.
different reports from the same data depending on their
individual requirements. MIS, currently, is an individual-
oriented concept. Database Orientation:
Like our environment, every system is dynamic and
Exception-Orientation: so is MIS. MIS was thus developed to handle
After making MIS action-oriented, it was recognized requirement-based exception reporting either by
that there was a need for some specific or selective individual groups or even by the organization. In order
approach to action or analysis of data. So, MIS was to fulfil this requirement, a common database was
modified to cater to the exceptional situations of prepared to be used by various groups. Thus, the
business instead of routine matters. idea of MIS based on databases has proved to be an
effective tool.*
End-user Orientation:
Academic Discipline Orientation:
After the above four changes were implemented to the concept
The principles of various academic fields are used for designing
of MIS, the concept of end-user computing, using multiple
MIS and in preparation for its different modules. The main
databases, came forward. This brought the nature of
element of MIS is information gathering for analysis. This
decentralization of MIS and made the end user independent
analysis depends on many academic disciplines like theories
from computer professionals or experts. This became possible,
and principles and also concepts from management,
as now the user was equipped with MIS able to extract
organization behaviour, computer science, psychology and
information from the common database and use it specifically
human behaviors.
for various reports.
Role of MIS in Business
MIS is very useful in business and it plays the following roles:
(1) MIS is used to minimize risk in the decision-making process.
(2) It is used to process the available data and subsequently generate information from it.
(3) Information produced by MIS is used for efficient decision-making for different business aspects.
(4) Managers utilize information produced by MIS in various functional areas of business.
(5) Data and information provided by MIS are used for research and analysis.
(6) It is used to obtain information about the financial status of a business organization.
(7) It is used to generate corporate business reports.
(8) The human resource manager can obtain information regarding human resource requirements, salary
and wages of the workforce, performance appraisal of personnel, training of the workforce, promotion,
absenteeism, etc. This information can be further utilised by human resource policymakers.
(9) Data about production provided by MIS is utilised by management in decision making like capacity
utilisation, break-even analysis, rejections rate per batch, breakdown frequency, etc.
(10)MIS also produces information for decision-making in the sales department about product pricing,
promotional campaigns, segmentation, demand for the specific product, sales in the specific region etc.
This information can be utilized for the prompt and efficient functioning of the sales force of the company.
Functions of MIS
Collect Data:
01 The main function of an MIS is to identify the information
required in decision-making and organize it into a
database. The information is extracted from the vast data
available to organizations such as personnel records,
Database: customer information, information about competitors, sales
02
data, accounting data, etc.
Database refers to the collection of data stored at a
convenient location with easy access for information
processing by various individuals or groups.
Store and Process Data
03 The second main task of MIS is to store and process
the data in a convenient manner for managerial use.
Present Information to Managers
After data collection, storage and processing, MIS
provides the data to the managers for managerial
use. 04
Contemporary Approach to MIS
Technical MIS are mathematical or systematic models that help to study MIS and the hardware associated with it.
Computer Science plays a major role in the technical approach and enables MIS to compute, store, and retrieve
large volumes of data. Management Science helps in taking decisions and specifying management practices.
Technical Operations Research aims at optimizing management resources.
Approach
Behavioral problems in an organization cannot be handled by mathematical models or using a technical
approach. In the behavioral approach, Sociology plays a major role to specify how MIS impacts groups,
organizations and society as a whole. Psychology specifies how each stakeholder responds to information
systems and cognitive models of human reasoning. Political Science deals with a political scenario in the
Behavioral Approach country or the organization.
A production system required people who can work on equipment. Thus, an organization is not a technical
or social system, but a combination of both. This approach explains the interactions between machines
and people at the workplace and specifies their tasks and the organizational structure.
Socio-Technical Approach
Components of MIS
Hardware:
Software: The different input and output devices are used for
feeding the data and displaying the information as and
There are certain programs and applications which when required, these devices are called hardware.
01
transform data into machine-readable language. Keyboard, scanners, and mouse are the input
These are referred to as software. ERP and CRM devices. Monitor, printer, network devices, etc. are
are types of software which are used for information examples of output devices. Thus, hardware is the
processing. ERP software package acts as a monitor physical part of MIS which helps in organisational data
for all functions of an organization which combines maintenance.
all data and processes. This integration is achieved
02
by using multiple components of software and
hardware. The main advantage of this is the use of
the single unified database.
Procedures:
Personnel:
Personnel refer to the people who use MIS to
03 A set of rules or guidelines that are established by
the organization for use in a computer-based
information system is referred to as procedures and
it varies from organization to organization and even
from one department to another.
04
achieve organisational business goals. They may be
experts, managers or users. The two activities which
are influenced by MIS are planning and may be
experts, managers or users. decision-making.
Structure of MIS
Organisational Functions
Management’s Activity
MIS supports management activity. The The Structure of MIS can also be based
structure of the Information System can on the different organizational functions
divide according to the hierarchy of that use Information.
management planning & control
activities.
Sales and Marketing
Subsystems
Strategic Planning
Production Systems
Management Control & Tactical
Planning
Logistics Systems
Operational Planning and
Control
Personnel System
Transaction Processing
Finance & Accounting
Subsystem
Advantages of MIS 2IBCEM
The Main
advantages of
60% MIS are: 40%
Increased Efficiency Better Data Management
One of the primary advantages of MIS is MIS systems can help
that it can help organizations become organizations better manage
more efficient. their data
Improved Decision-Making Competitive Advantage
MIS systems provide organizations with MIS systems can provide organizations with a competitive
real-time data and analytics, which can advantage. By using data and analytics to make informed
help managers make more informed decisions, organizations can become more efficient, more
decisions. responsive to customer needs, and better able to compete in the
marketplace.
Enhanced Communication
MIS systems can improve communication Minimises Information Overload
within an organization.
Disadvantages of MIS CD2TPS
The Main
disadvantages
60% of MIS are: 40%
Costly Implementation Dependence on Technology
There may be expenses related to purchasing MIS systems are dependent on technology, which means
software, hardware, and training employees to use the that if the system goes down, employees may not be able
system. This can be a significant investment for some to perform their job duties. This can lead to lost productivity
organizations. and revenue for the organization.
Technical Issues Potential for Human Error
MIS systems can experience technical issues, such as Finally, MIS systems can be prone to human error. If employees
system crashes or data loss. enter incorrect data or fail to update the system in a timely
manner, it can lead to inaccurate data and decision-making.
Security Risks
MIS systems can also pose security risks. If the system Takes into Account Only Qualitative Factors
contains sensitive data, such as customer information or
financial records, it could be targeted by cybercriminals.
Factors Influencing MIS
1 .Failure and success of the task
2.Failure and success of the implementation of te task
Success Factors
1} Integration of MIS into managerial functions of the business is most important to ensure the focus of MIS on major
aspects of the business.
2} For efficient data processing and analysis, an appropriate information processing technology must be adopted.
Failure Factor
1) When MIS is used just as a data processing unit instead of an information processing and decision-making system.
2) When MIS is not designed to provide the information as required by managers instead it provides general
information called by function.
IRaMN Technology of MIS
04
Rule
CIO Level Consulting provisioning/updating, Network
Staffing Support
Configuration backup Integration
Expertise/ Strategic Planning
Specialization and Guidance
01 02 03
Network integration means
IT Remote Managed connecting different
resources of the business
Consulting Management Security together using a network
so that workflow and
productivity can be
improved with cost
reduction also. the network
should be reliable, flexible,
Senior Level Network Consulting and secure according to
Projects Hardware
changing business needs.
Server/Device updates/replacement
Strategic IT Network integration
Consulting Services Maintenance streamlines the workflow,
Firmware updates
improves customer
service, increases
productivity and reduces
operational costs.
Information is a resource for an organization as well as an individual. However, all
information is not useful. Only some can be considered as resources depending on
management decisions. This management comprises a group of people who are
placed at various levels in an organization with a specific task and goal
accomplishment. The level determines the nature and complexity of the job. The
concepts of information are applicable to all organizations. The people organization
model is based on functions, products, projects and communication matrix and the
unique information needs of each one of them. Depending on the type and level of an
organization, it becomes imperative to understand the use, nature and value of
information, the media and the reporting structure. The different methods of data
collection and their sources have various difficulties. These must be acknowledged
by MIS as they will have an impact on the quality of input data. Therefore, to monitor
the quality of the input data various checks and controls must be introduced. The
nature, type and quality of information depend on the people, business and
Information infrastructure of an organization.
as a
Strategic
Resources
KEY STRATEGIES IMPLEMENTED AS A STRATEGIC RESOURCE
One of the key
The development of elements in strategic By increasing
unique product is information is the investing in
enabled by investments creation of switching information
system technology. It technology, a firm
costs in the inter-
helps to expand becomes capable in
relationships b/w a building strategic IT
business to new sectors firm and its capabilities which help
of existing market. customers. it take advantage of
strategic opportunities.
LOCK IN RAISING
IMPROVING CUSTOMERS BARRIERS
BUSINESS AND TO ENTRY
PROCESS PROMOTING CREATING
SUPPLIERS LEVERAGE
BUSINESS SWITCHING INVESTMENT
INNOVATION COSTS IN
INFORMATION
The complexity of the
Information helps in It helps to lock in existing technology of TECHNOLOGY
improving the a big company acts as
customers and
business processes a deterrent towards
suppliers in a
of an org. companies willing to
valuable new enter the industry or
Improve product
relationship. the ones already
quality and customer
existing in the same
service. industry.
Use of Information for Competitive
Advantage
You can simply impress your audience and add a unique
zing and appeal to your Business using Information
Technology.
CEO’s attitude towards Use Information
Information Technology. Technology to View
Business Problems from
Another Perspective.
Use Information Use Information
Technology to bridge the Technology in Creative
gap between Designing.
Businesspeople and
Technical People.
MIS as an Instrument for The Organizational Change
Organisational change is the modification in the structure, processes,
or products of an organization, this change impacts the manner in
which work is done and also has significant impacts on the people
working in an organization. An organizational change can be brought
about in the:
1) The structure of the organization
2) The operations and workforce of an organization
3) The working hours and practices of an organization.
There are several causes of the failure of IT implementation in an organization. These may include
inwardly focused cultures, low levels of trust, lack of teamwork, policies, bureaucracy, lack of
leadership etc. The root causes for the failure of IT implementation are often not associated with
high costs, poor software or user requirements not being met. A proper change management
framework and method are essentially required to address these root causes and overcome them.
Reasons for Change:-
Business
Technological People
Environment
Push Resistance
Pull
1) Globalization
2) Knowledge and information
3) Transformation of Business
Enterprise
4) Organizational Relationship
Actors In Change
1. Top Manager who
3. Individual Users to orders MIS and Its
Work on MIS Implementation
2. Technical Experts who
develop MIS
Information Technology
According to the Information
Technology Association of America
Information
Information technology (IT) is the study, System
design, development, implementation, support
or management of computer-based
information systems, particularly software
applications and computer hardware.'
IT manages the utilization of Information
computers and software to Technology
exchange, collect, protect,
develop, communicate, and
safely retrieve information
from various resources. Work System
Firm
Components of IT
People Network
Software
Hardware
Data
Advantages of IT
The Main
advantages of
60% IT are: 40%
Globalisation Bridging/Filling Culture Gap
Communication All Time avaliability
Cost Effectiveness
Creation of New Jobs
Disadvantages of IT
The Main
disadvantages
60% of IT are: 40%
Unemployment Dependence on Technology
Technical Issues Lack of Job Security
Privacy and Security Risks
Dominant Culture
Application of IT
Science and Engineering Governance
For example:- BioTehchnology For Example:- E-Governance
Business and Commerce Medicine
For example:- Cash Registers to MIS MRI can be used to a series of pictures of the human body
to diagnose problems in the body.
Business and Industry Entertainment
1) Customer Relations For Example:- Youtube / Instagram/ Socal Media Apps
2) Business Operations
3) Industrial Productivity
4) Business Mobility
Education Corporate
1) Access to a variety of learning resources Process Mining Operated Devices
2) Any-time Learning
3) Collaborative Learning
Impact of IT on Business
Information Technology has
impacts on different aspects
of a business, like the
competitiveness and the
85% Accounting
85% dynamic capability of an
organization.
The conventional way of using IT in an
organization is to determine the business
70% Finance
requirements and then develop the required
I system. The awareness of IT capabilities
influences the process design. When the
product development team uses computer-
aided design, the structure of the product
65% Human Re-
sources
development process can be affected. The
role of IT in process design must be
determined early in the design process.
Using an enabling IT service has been 55% Sales
possible by brainstorming about redesign
objectives and existing processes. The use
of IT enables effective management of tasks
in organisations. 40% Marketing
Multiple Levels in IT-based Capabilities of Organization
Lower Level
This level defines IT capabilities in
terms of the functional abilities of
specific technology components or
features. This level is also known as
technology functionality level. Middle Level
M
id
l
dl IT application systems level is the level
ve
e
Le
Le between the technology functionality
er
ve level and IT strategic capability level,
w
l The application system is the
Lo
component of different technologies in
this level.
t
en
To
There are different
p
em
-L
g
e
a
v
classifications of IT-based
an
el
Top-Level
M
capabilities on the basis of the At this level, IT capabilities are defined in terms of the strategic
values and the purpose of this level is to analyze the capability of
aggregation level of IT IT resources to support the business goals. Therefore, this level is
resources. These include: called IT strategic capability level.
IT Enabled Services
The usage of IT in various fields (i.e., banking and finance,
telecommunications, insurance etc.).
ITES is an abbreviated form of Information Technology Enabled
Service. Its application areas are finance, HR, administration,
healthcare, telecommunication, manufacturing, etc.
1. Information Technology Enabled Services (ITES) are web-
enabled services, remote services, or teleworking services.
ITES helps global companies meet their business goals and
provide a valuable service with the aid of information
technology. ITES covers the entire gamut of operations that
exploit information technology to improve an organization’s
efficiency.
ITES
Below Listed are the impor-
tant IT Enabled Services
ITES, or Information Technology Enabled Services, refers to
outsourcing processes in which the provider
utilizes telecommunication technologies and the Internet to
provide those services, mainly for companies in non-
information technology (IT) fields.
Call Centre/ BPO/ Helpdesk/Customer Support
Telemarketing Centres
Data GIS Mapping for Transport
Warehouse/Transcription tracking/Electronic
Centers Distribution
Modern PowerPoint
IT ENABLES SERVICE
(the usages of IT in various field in the form of outsouring )
• Call center
• BPO
• CRM
• ERP
• Big DATA
• AI
• Cloud computing
• Rational Database model Service
ERP VALUE ADDITION
Traditional Service ---- IT enables -------service delivery
A call Centre is a centralized department that handles Call centres' located either
within an organization or outsourced to another company that specializes in handling
Call Center
calls. The three most common types of call centres are inbound, outbound and
blended call centres.
Call center teams and structure
Many different roles make up call center teams, including agents, team leaders and IT personnel.
Call center agents. Agents are the
key point of contact between an organizatio Quality assurance team.
n and its customers Quality assurance (QA) is a
, as agents talk directly with customers and practice that ensures products or
handle their calls. Depending on the type of services meet specific
call center, agents may handle either requirements, and QA teams put
incoming or outgoing calls. this into practice. These teams
Call center agents typically have customer s can monitor and evaluate agent
ervice skills phone calls in call centers to
, are knowledgeable about the organization ensure the call quality and CX are
and are creative problem-solvers. up to the center's standards. In
Team leaders. Many call centres some cases, call center directors
split agents into smaller groups run the QA checks.
for easier management. Team
leaders help call centre agents
IT personnel. IT professionals
deescalate conversations, solve i
ssues or answer questions are critical to call centers --
from customers or the agents especially those with remote
operations. And while IT
personnel aren't exclusive to call
Call center directors. While team leaders centers, they ensure agents'
run smaller teams, call center directors run technology and tools are up to
operations and ensure everything runs date to keep the call center
smoothly. Directors, or managers, set the running smoothly
metrics and expectations for agent perform
ance
to ensure they meet the standards for
customer expectations and keep the center
running smoothly.
Business Process Outsourcing
Many businesses, from small startups to large companies,
opt to outsource processes, as new and innovative services
are increasingly available in today's ever-changing, highly
competitive business climate.
Broadly speaking, companies adopt BPO practices in the two
main areas of back-office and front-office operations. Back
office BPO refers to a company contracting its core business
support operations such as accounting, payment processing,
IT services, human resources, regulatory compliance, and
quality assurance to outside professionals who ensure the
business runs smoothly.
By contrast, front-office BPO tasks commonly include
customer-related services such as tech support, sales, and
marketing.
BPO
Process of
BPO
Components of BPO
The Organization or an individual
Clients
The Service Provider
Vendor
The outsourced processes or services are known as
the project
Projects
Functions of BPO
Web Development Application
Development
Telemarketing Customer Care Services Outbound/Inbound Services
Business Process Outsourcing Types: Supply Chain and Services
Back-Office BPO
Back-office business process outsourcing involves contracting services that are not
customer-facing. These services include IT, accounting, business process automation,
human resources, quality assurance, and more. Subtypes of BPO have emerged,
including IT-Enabled Services (ITES) BPO, such as IT analysts, Legal Process
Outsourcing (LPO), such as paralegals or advisors, and Knowledge Process
Outsourcing (KPO), such as outsourcing an individual who understands and can
implement/manage a specific program. By outsourcing these tasks, businesses can
focus on their core mission rather than engaging in time-consuming and expensive
internal training and onboarding.
Front-Office BPO
This term refers to customer-facing services, including tech support, customer service,
sales, and marketing. These services are frequently outsourced due to technical
knowledge requirements and can be accomplished off-premises. By outsourcing web
development, customer support lines, or any front office services, businesses can
benefit from specialized talent with unique knowledge and cut costs.
Business Process Outsourcing Types: Location of Vendor
Offshore BPO
Offshoring occurs when services are outsourced overseas. This is incentivized by available
resources, political stability, lower labour costs, various tax savings, and more. A common example
is companies outsourcing their customer service departments by contracting with call centre
vendors across the world. As a result, businesses can access qualified labour and services at a
lower rate, which helps reduce overhead costs, and potentially lower product or service prices for
the end user.
Nearshore BPO
Nearshore business process outsourcing is the act of contracting the services of vendors in
countries that are geographically closer. For businesses in the US, this could include Canada and
Mexico, as well as Central America. This form of outsourcing usually occurs when specialized skills
are available at a lower cost in a nearby nation, but certain factors, such as time zones or language
proficiencies, need to be taken into account. An example of this is when a Silicon Valley company
outsources IT and coding services to specialists in Canada, or when a Canadian company
outsources marketing services from a marketing firm in the U.S.
Onshore/Domestic BPO
Domestic outsourcing is exactly as it sounds: the act of outsourcing and receiving services within
the boundaries of a country. In other words, a vendor in one city, state, or province can be
contracted for services provided to a business in another city, state, or province. This can be
prompted by a number of factors, such as the availability of specialized skills in certain regions, or
local differences in rates and costs.
Advantage/Disadvantage of BPO
In India, Business Process Outsourcing (BPO) is the fastest-
growing segment of the ITES (Information Technology
Enabled Services) industry. Factors such as economy of
scale, business risk mitigation, cost advantage, utilization
improvement and superior competency have all led to the
growth of the Indian BPO industry. Business process
outsourcing in India, which started around the mid-90s, has
now grown by leaps and bounds.
India is now the world’s favoured market for BPO companies,
among other competitors, such as Australia, China, the
Philippines and Ireland. The BPO boom in India is credited to
cheap labour costs and India's huge talent pool of skilled,
English-speaking professionals. Research by the National
Association of Software Services and Companies
The BPO (NASSCOM) has revealed that quality orientation among
leading BPO companies, 24/7 services, India's unique
geographic location and the investor-friendly tax structure in
Industry in India have all made the BPO industry in India very popular.
India
Emerging Trends in
Information Technology
Artificial intelligence is the
Artificial intelli simulation of human
gence intelligence processes by
machines, especially
is poised as a tool of choice for computer systems. Specific
businesses and solution providers. applications of AI include
As is often seen with social media,
AI, combined with machine
expert systems,
learning, deep learning and neural natural language processing,
networks, can be a powerful speech recognition and
combination. Businesses can use
machine vision.
AI to achieve cost-saving benefits,
streamline business processes,
improve the customer experience,
enable more efficient
communications through chatbots,
increase customer satisfaction and
provide insight into purchasing
behaviour to inform decision-
making.
AI
Stuart Russell and Peter Norvig then proceeded to publish, Artificial Intelligence: A Modern Approach (link
resides outside IBM), becoming one of the leading textbooks in the study of AI. In it, they delve into four
potential goals or definitions of AI, which differentiates computer systems on the basis of rationality and
thinking vs. acting:
Human approach:
•Systems that think like humans
•Systems that act like humans
Ideal approach:
•Systems that think rationally
•Systems that act rationally
Alan Turing’s definition would have fallen under the category of “systems that act like humans.”
In its simplest form, artificial intelligence is a field, which combines computer science and robust datasets, to
enable problem-solving. It also encompasses sub-fields of machine learning and deep learning, which are
frequently mentioned in conjunction with artificial intelligence. These disciplines are comprised of AI algorithms
which seek to create expert systems which make predictions or classifications based on input data. Today, a
lot of hype still surrounds AI development, which is expected of any new emerging technology in the market.
As noted in Gartner’s hype cycle (link resides outside IBM), product innovations like self-driving cars and
personal assistants, follow “a typical progression of innovation, from overenthusiasm through a period of
disillusionment to an eventual understanding of the innovation’s relevance and role in a market or domain.” As
Lex Fridman notes here (01:08:05) (link resides outside IBM) in his MIT lecture in 2019, we are at the peak of
inflated expectations, approaching the trough of disillusionment.
Key Components of AI
Features of AI
Artificial intelligence Applications
There are numerous, real-world applications of AI systems today. Below are some of the most common examples:
•Speech recognition: It is also known as automatic speech recognition (ASR), computer speech recognition, or speech-to-
text, and it is a capability which uses natural language processing (NLP) to process human speech into a written format. Many
mobile devices incorporate speech recognition into their systems to conduct voice searches—e.g. Siri—or provide more
accessibility around texting.
•Customer service: Online virtual agents are replacing human agents along the customer journey. They answer frequently
asked questions (FAQs) around topics, like shipping, or provide personalized advice, cross-selling products or suggesting
sizes for users, changing the way we think about customer engagement across websites and social media platforms.
Examples include messaging bots on e-commerce sites with virtual agents, messaging apps, such as Slack and Facebook
Messenger, and tasks usually done by virtual assistants and voice assistants.
•Computer vision: This AI technology enables computers and systems to derive meaningful information from digital images,
videos and other visual inputs, and based on those inputs, it can take action. This ability to provide recommendations
distinguishes it from image recognition tasks. Powered by convolutional neural networks, computer vision has applications
within photo tagging in social media, radiology imaging in healthcare, and self-driving cars within the automotive industry.
•Recommendation engines: Using past consumption behaviour data, AI algorithms can help to discover data trends that can
be used to develop more effective cross-selling strategies. This is used to make relevant add-on recommendations to
customers during the checkout process for online retailers.
•Automated stock trading: Designed to optimize stock portfolios, AI-driven high-frequency trading platforms make thousands
or even millions of trades per day without human intervention.
Enterprise Resource Planning
The simplest way to define ERP is to think about all the
core business processes needed to run a company:
finance, HR, manufacturing, supply chain, services,
procurement, and others. At its most basic level, ERP
helps to efficiently manage all these processes in an
integrated system. It is often referred to as the system
of record of the organization.
Yet today’s ERP systems are anything but basic and
have little resemblance to the ERP of decades ago.
They are now delivered via the cloud and use the latest
technologies – such as artificial intelligence (AI) and
machine learning – to provide intelligent automation,
greater efficiency, and instant insight across the
business. Modern cloud ERP software also connects
internal operations with business partners and networks
around the world, giving companies the collaboration,
agility, and speed they need to be competitive today.
ERP(Enterprise resource planning)
a software system that helps you run your entire business,
supporting automation and processes in finance, human
resources, manufacturing, supply chain, services, procurement,
and more.
Characteristics of ERP
Benefits of
ERP
•Eliminates manual reports. ...
•Reduced operation costs. ...
•Better financial planning. ...
•Improved communication
and collaboration. ...
•Improved data security. ...
•Improved customer service.
Lower costs
Business owners get to cut IT and staff costs. A unified system works best in large enterprises because users only need to learn
how to use it once instead of learning multiple applications. Each employee only uses the features they need.
Absolute transparency
Management personnel can keep track of inventory, including future deliveries. This allows you to more effectively manage
budgets and adhere to the preferred economic strategy. The availability of data in one place improves communication between
departments and allows you to make data-driven decisions and explain their logic.
More planning and reporting opportunities
A single system is able to generate accurate reports and provide useful real-time analytics. For example, income and cash flow
plans and reports. Operations analytics facilitate essential decision-making.
Full personalization
Modular architecture better adapts to your specific business goals. Each component can exist as a standalone application or
integrate with other modules.
Efficiency boost
With ERP, the time, effort, and money invested in a business project can be all cut by eliminating routine and repetitive work. You
get more time to focus on the most important tasks directly related to your position in the company.
Better customer service
Keeping customer information in one system makes it easier for sales reps to optimize relationships with the target audience. You
are enabled to focus on retention and acquisition, analyze marketing efforts, and develop new strategies based on analytics and
reports.
High integrity and security of data
Business owners and management can control access to data. A single system ensures security without causing conflicts
between sources. Local software backs up sensitive information. If the data is stored in the cloud, it makes it harder to steal it.
Cloud Computing:-
One of the most talked about concepts in
information technology is cloud computing.
Cloud computing is defined as the utilization of
computing services, i.e. software as well as
hardware as a service over a network.
Typically, this network is the Internet.
Cloud computing offers 3 types of broad
services mainly Infrastructure as a Service
(IaaS), Platform as a Service (PaaS) and
Software as a Service (SaaS).
Some of the benefits of cloud computing is as
follows:
•Cloud computing reduces the IT infrastructure
cost of the company.
•Cloud computing promotes the concept of
virtualization, which enables servers and
storage devices to be utilized across
organizations.
•Cloud computing makes maintenance of
software and hardware easier as the
installation is not required on each end user’s
computer.
Features of Cloud Computing
1. Resources Pooling
It means that the Cloud provider pulled the computing resources to provide services to multiple customers with
the help of a multi-tenant model. There are different physical and virtual resources assigned and reassigned
which depends on the demand of the customer.
The customer generally has no control or information over the location of the provided resources but is able to
specify location at a higher level of abstraction
2. On-Demand Self-Service
It is one of the important and valuable features of Cloud Computing as the user can continuously monitor the
server uptime, capabilities, and allotted network storage. With this feature, the user can also monitor the
computing capabilities.
3. Easy Maintenance
The servers are easily maintained and the downtime is very low and even in some cases, there is no downtime.
Cloud Computing comes up with an update every time by gradually making it better.
The updates are more compatible with the devices and perform faster than older ones along with the bugs which
are fixed.
4. Large Network Access
The user can access the data of the cloud or upload the data to the cloud from anywhere just with the help of a
device and an internet connection. These capabilities are available all over the network and accessed with the
help of the internet.
5. Availability
The capabilities of the Cloud can be modified as per the use and can be extended a lot. It analyzes the storage
usage and allows the user to buy extra Cloud storage if needed for a very small amount.
6. Automatic System
Cloud computing automatically analyzes the data needed and supports a metering capability at some level of
services. We can monitor, control, and report the usage. It will provide transparency for the host as well as the
customer.
7. Economical
It is a one-time investment as the company (host) has to buy the storage and a small part of it can be
provided to the many companies which saves the host from monthly or yearly costs. Only the amount which is
spent is on the basic maintenance and a few more expenses which are very less.
8. Security
Cloud Security, is one of the best features of cloud computing. It creates a snapshot of the data stored so
that the data may not get lost even if one of the servers gets damaged.
The data is stored within the storage devices, which cannot be hacked and utilized by any other person. The
storage service is quick and reliable.
9. Pay as you go
In cloud computing, the user has to pay only for the service or the space they have utilized. There is no
hidden or extra charge which is to be paid. The service is economical and most of the time some space is
allotted for free.
10. Measured Service
Cloud Computing resources are used to monitor and the company uses it for recording. This resource
utilization is analyzed by supporting charge-per-use capabilities.
This means that the resource usage which can be either virtual server instances that are running in the cloud
are getting monitored measured and reported by the service provider. The model pay-as-you-go is variable
based on the actual consumption of the manufacturing organization.
Cloud
Computing
Service
Model
CLOUD COMPUTING MODEL
CLOUD COMPUTING SERVICE MODEL-
IaaS
PaaS
SaaS
MBaaS(mobile backend as a service )
IaaS(information as a service )
CLOUD COMPUTING DEPLOYMENT MODEL-
Public cloud
Hybrid cloud
Private cloud
Cloud Computing Deployment Models
BIG DATA
big data is data that contains greater variety, arriving in increasing volumes and with
more velocity. This is also known as the three Vs. Put simply, big data is larger, more
complex data sets, especially from new data sources.
Characteristics –
• Volume
• Variety
• Velocity
• Variability
Disadv ./limitation-
Cybersecurity Risks
Talent Gaps
Compliance Considerations
Traditional storage can cost lot of money to store big data. ➨Lots of big data is unstructured. ➨Big
data analysis violates principles of privacy. ➨It can be used for manipulation of customer records.
THANK YOU
Unit 01 Ends Here
