Subject: Business Information
Systems
Module Number: 1
Module Name: Introduction to Information
Technology & MIS
Sub-Module Name: Management Information Systems 1
Introduction to Information
Technology
Syllabus for Module 1
• Different Computer System configurations
• Transaction Processing Systems
• Network distributed system
• Decision of information technology for MIS
• Concept under MIS
• Method and tools of decision making
• Principles of rationality, Utility, Risk and its application in decision making
• Herbert Simon Model
• Law of Requisite Variety Management of Risk and Decision making
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Introduction to Information
Technology
AIM:
The main goals is to demonstrate the role and importance of information system in an
organization that elaborate the decision making strategy and implement the MIS for
the purpose of managing the organization in a better way.
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Introduction to Information
Technology
Objectives:
1. To provide an understanding of the organizational function responsible for managing, using,
transporting, and processing information in the organization
2. To emphasize the most important function of MIS -- to solve business problems in
direct support of users in all functional areas and at all organizational levels
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Introduction to Information
Technology
Table of Content:
Topics Page No.
Different Computer System configurations 6
Transaction Processing Systems 9
Network distributed system 11
Decision of information technology for MIS 12
Concept under MIS 13
Method and tools of decision making. 15
Principles of rationality, Utility, Risk and its application in decision making. 16
Herbert Simon Model 17
Law of Requisite Variety Management of Risk and Decision making. 18
Summary 20
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Introduction to Information
Technology
Different Computer System configurations
In communications or computer systems, a configuration of a system refers to the arrangement
of each of its functional units, according to their nature, number and chief characteristics.
Often, configuration pertains to the choice of hardware, software, firmware, and documentation.
Along with its architecture, the configuration of a computer system affects both its function and
performance.
Computing Terminology
•Data - Data is anything in a form suitable for use with a computer.
•Information - Refer to processed data.
•Program - Computer instructions.
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Introduction to Information
Technology
Different Computer System configurations
Three Basics Kind of Computer
•Analogue Computer
•Digital Computer
•Hybrid Computer
Analogue Computer - Analog computers are used to process analog data. Analog data is of
continuous nature and which is not discrete or separate. Such type of data includes temperature,
pressure, speed weight, voltage, depth etc. These quantities are continuous and having an
infinite variety of values.
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Introduction to Information
Technology
Different Computer System configurations
• Digital Computer - A Digital Computer works with digits to represent numerals, letters or
other special symbols. Digital Computers operate on inputs which are ON/OFF type and its
output is also in the form of ON/OFF signal. Normally, an ON is represented by a 1 and an
OFF is represented by a 0. A digital computer can be used to process numeric as well as non-
numeric data.
• Hybrid Computer - A hybrid is a combination of digital and analog computers. It combines
the best features of both types of computers, i-e. It has the speed of analog computer and the
memory and accuracy of digital computer. Hybrid computers are used mainly in specialized
applications where both kinds of data need to be processed. Therefore, they help the user, to
process both continuous and discrete data.
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Introduction to Information
Technology
Transaction Processing Systems
A Transaction Processing System is a set of information
which processes the data transaction in database system
that monitors transaction programs. It allows for a time
delay between when an item is being sold to when it is
actually sold. Operations in a transaction processing
system are interactions between a user and a computer
system where there is the perception of an immediate
response from the system to the user’s requests. A
commonly encountered example of transaction Figure 1.1. A transaction-based information flow.
[scincedirect]
processing is the use of an automated teller machine
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(ATM), as shown in Figure 1.1.
Introduction to Information
Technology
Transaction Processing Systems
Transaction Processing Systems Architecture
There are three interrelated ways to decompose a TP
system: by functional components, by hardware
subsystems, and by operating system. The
decomposition by functional components is shown in
Figure 1.2. It consists of front-end programs, request
controllers, transaction servers, and database systems.
This was called a three-tier architecture, consisting of the
front-end program as the first tier, the database system as
the third tier, and everything in between as the middle Figure 1.2. Multitier TP Application Architecture
[scincedirect]
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tier processes.
Introduction to Information
Technology
Network distributed system
• A distributed system, also known as distributed computing, is a system with multiple components
located on different machines that communicate and coordinate actions in order to appear as a single
coherent system to the end-user.
• Distributed networking, used in distributed computing, is the network system over which computer
programming, software, and its data are spread out across more than one computer, but communicate
complex messages through their nodes (computers), and are dependent upon each other.
• Networking and distributed systems provide the infrastructure for computation, communication and
storage involving a heterogeneous and potentially large number of people, hardware devices, and
software processes. Issues of concern include performance, security, scalability, functionality, and
manageability
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Introduction to Information
Technology
Decision of information technology for MIS
Management information system is one of the major computer based information systems.
Management information is an important input at every level in the organization for decision
making, planning, organizing, implementing, and monitoring and controlling. In the context of
different levels of decision making, information can be described as: ⋅
•Source
•Data
•Inferences and predictions drawn from data
•Value and choices (evaluation of inferences with regard to the objectives and then choosing a
course of action)
•Action which involves course of action.
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Introduction to Information
Technology
Concept under MIS
The MIS is an idea which is associated with man, machine, marketing and methods for
collecting information’s from the internal and external source and processing this information
for the purpose of facilitating the process of decision-making of the business.
MANAGEMENT: Management has been define in process or activities that describe what
managers do in the operation for their organization plan, organize, initiate and control
operations. They plan by setting strategies and goals and selecting the best course of action to
achieve the goals. They organize the necessary tasks for the operational plan, set these tasks up
into homogenous groups and assign authority delegation; they control the performance standards
and avoiding deviation from standard.
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Introduction to Information
Technology
Concept under MIS
INFORMATION: Data must be distinguished from information and the distinction is clear and
important for present purpose. that are not currently being used in a decision-making process
and usually are taken froData are facts and figures m the historical records that are recorded and
filled without immediate intent to retrieve for decision-making.
SYSTEM: The system can be described as a set of elements joined together for a common
objective. A subsystem is a part of a larger system with which one is concerned. All systems for
our purpose the organization is the system and the parts (divisions, departments, functions, unit
etc) are the subsystem.
The system concept of MIS is, therefore one of optimizing the output of the organization by
connecting the operating subsystems through the medium of information exchange.
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Introduction to Information
Technology
Method and tools of decision making
Types of Decision Support Systems
While there are many ways to categorize computer systems, a practical one is to compare them
in terms of what the user does with them:
•Retrieves isolated data items.
•Uses as a mechanism for ad hoc analysis of data files.
•Obtains prespecified aggregations of data in the form of standard reports.
•Estimates the consequences of proposed decisions.
•Proposes decisions.
•Makes decisions.
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Introduction to Information
Technology
Principles of rationality, Utility, Risk and its application in decision making
The rational decision-making approach follows five basic steps:
1.Define goals- Rational decision making defines the problem we want to solve and the goal we
want to achieve.
2.Identify alternatives- Once we define the goal, the next step is to identify alternatives for
achieving the goal.
3.Calculate the consequences- We then asses the alternatives by measuring the costs and
benefits of the each one.
4.Decide- Once the analysis is finished, the decision maker chooses the alternative with the most
Favorable balance of benefits to costs.
5.Begin again- Systems analysis is not once-and-done process. Every solution generates the nest
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set of problems, and we always seek to learn from the past.
Introduction to Information
Technology
Herbert Simon Model
Herbert Simon, the Nobel Prize winning researcher, showed that
humans went through three essential stages in the act of
problem solving. He called these the Intelligence, Design, and
Choice stages. Decision making can also be considered as a
type of problem solving. In the first stage, that of intelligence,
they collect information about the issue from the environment
and the surrounding context. DSS are designed to support
mainly the choice stage of the decision-making process.
Managers can enter the relevant data into the system, select or
Firgure 1.3. Herbert-Simon Model [mytypings]
priorities their criteria and let the system decide on the final
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solution.
Introduction to Information
Technology
Law of Requisite Variety Management of Risk and Decision making
Variety grows exponentially with the size of organizations and major systems, creating vast amounts of
complexity with regards to its interactions. Some real-world systems have levels of variety which are
effectively infinite. It turns out there is a fundamental principle – the law of requisite variety– that governs
the capacity of a system to respond to changes in its environment.
Risk management decision tasks- Making a Risk Management Decision entails deciding which of a variety
of options are the most appropriate to manage the site. These options typically include:
•do nothing
•monitoring
•prevention
•remediation
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•decommissioning
Introduction to Information
Technology
Law of Requisite Variety Management of Risk and Decision making
Other factors that may affect a risk management decision will require consideration.
These may include:
•policies and objectives of the relevant regulatory agency
•community expectations
•perceived risk
•costs of remedial or other actions
•benefit of those actions.
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Introduction to Information
Technology
Summary
• The role of information in decision making cannot be overemphasized.
• Effective decision making demands accurate, timely and relevant information.
• MIS provides accurate and timely information necessary to facilitate the decision-making
process and enable the organizations planning, control, and operational functions to be
carried out effectively.
• MIS also plays the crucial role of providing a wide range of streamlined options from which
decision-makers are able to make their preferred choices.
• MIS as renowned concept, having good decision choices guarantees viable decisions in our
businesses.
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Introduction to Information
Technology
Self Assessment Question
1. Information systems that monitor the elementary activities and transactions of the
organizations are___________
a. Management level system
b. Operational level system
c. Knowledge level system
d. Strategic level system
Answer: a
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Introduction to Information
Technology
Self Assessment Question
2. _________is a set of information which processes the data transaction in database system
that monitors transaction programs.
a. Decision Support System (DSS)
b. Management Information System (MIS)
c. Executive Support System (ESS)
d. Transaction Processing System (TPS)
Answer: d
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Introduction to Information
Technology
Self Assessment Question
3. _____ is the back bone of any organization
a. Management
b. Employee
c. Information
d. Capital
Answer: c
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Introduction to Information
Technology
Self Assessment Question
4. ______can be described as a set of elements joined together for a common objective.
a. Data
b. System
c. Information
d. Knowledge
Answer: b
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Introduction to Information
Technology
Self Assessment Question
5. The information of MIS comes from the
a. Internal source
b. External source
c. Both internal and external source
d. None of the above
Answer: c
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Introduction to Information
Technology
Document Links
Topic URL Notes
Fundamentals of
Information https://www.radford.edu/mhtay/ITEC110/Fundamental_I CENEGADE Notes
Systems nfo_Sys/Lecture/ch01_5e.pdf
MIS https://www.tutorialspoint.com/management_informatio Tutorial point notes
n_system/management_information_system.htm
INFORMATION
SYSTEMS FOR
https://bus206.pressbooks.com/chapter/chapter-1/ Pressbooks Notes
BUSINESS AND
BEYOND
26
Introduction to Information
Technology
Video Link
Topic URL Notes
MIS - Introduction https://youtu.be/5JMkdGQCm4k NPTEL Notes
What is MIS
(Management of https://youtu.be/eRZN3vp_HR4 Cool Grad Notes
Information Systems)
Management Information
Systems https://youtu.be/-18Py3sX5sM Vidya Mitra Notes
27
Introduction to Information
Technology
E- Book Link
Ebook name Chapter Page No. Notes URL
https://
www.google.co.in/
Chapter 1: books/edition/
Management Organizatio Management_Information
Information System n, _System/
By Kenneth C. Managemen 2-41 Google Book Notes 4RAwDwAAQBAJ?
Laudon, Jane P. t, and the hl=en&gbpv=1&dq=infor
Laudon Network mation
Enterprise %20system&pg=PR6&pri
ntsec=frontcover&bsq=in
formation%20system
https://
www.google.co.in/
books/edition/
Chapter 1: Management_Information
Management Managemen _System/
Information System t 1-36 Google Book Notes PWRYwOJ8FmgC?
By Hitesh Gupta Information hl=en&gbpv=1&dq=infor
system mation 28
%20system&pg=PP4&pri
