Mis student version 2013

MIS Essentials
Dr Sharad L. Joshi
Professor
Vishwakarma Institute of Management,
Pune

Management Information Systems

What is MIS?
 Study of Information Systems focusing on their use
in Business and Management.
 Information is defined as Data converted into
a form which is meaningful and useful for the
end-user.
 MIS combines the theoretical work of computer
science, management science and operations
research with a practical orientation toward
developing system solutions to real life problems and
managing information technology resources.

What is an Information
System?
 An organized combination of…
 People
 Hardware and software
 Communication networks
 Data resources
 Policies and procedures
 This system…
 Stores, retrieves, transforms, and disseminates
information in an organization
1-4

Types of systems
 Transaction Processing Systems (Dealing with day-to-
day events and actions - Financial Transactions,
Student Attendance, Phonecalls, Train Reservation)
 Office Automation Systems (Word, Excel)
 Knowledge Work Systems(Tally, PowerPoint, CAD)
 Management Info. Systems (Based on TPS – Student
Absenteeism Report, Product-wise Sales, Slow
moving items report, Customer Outstandings Report )
 Decision Support Systems (Production Scheduling,
Data Mining supported analytics)
 Executive Support Systems (Dashboards)

What Should Business Professionals Know about
Information Technology?
1-6

Fundamental Roles of
Information Systems in Business
1-7

Range of Information Systems
1-8

Operations Support Systems
 What do they do?
 Efficiently process business transactions
 Control industrial processes
 Support communications and
collaboration
 Update corporate databases
1-9

Types of Operations Support
Systems
 Transaction Processing Systems
 Record and process business transactions
 Examples: sales processing, inventory systems,
accounting systems
 Process Control Systems
 Monitor and control physical processes
 Example: using sensors to monitor chemical processes in
a petroleum refinery
 Enterprise Collaboration Systems
 Enhance team and workgroup communication
 Examples: email, video conferencing
1-10

Management Support Systems
 What do they do?
 Provide information and support for
effective decision making by managers
 Management information systems
 Decision support systems
 Executive information systems
1-11

Types of Management Support
Systems
 Management Information Systems (MIS)
 Reports and displays
 Example: daily sales analysis reports
 Decision Support Systems (DSS)
 Interactive and ad hoc support
 Example: a what-if analysis to determine where to
spend advertising budget
 Executive Information Systems (EIS)
 Critical information for executives and managers
 Example: easy access to actions of competitors
1-12

Other Information Systems
 Strategic Information Systems
 Help get a strategic advantage over competitor
 Examples: shipment tracking, e-commerce
Web systems
 Functional Business Systems
 Focus on operational and managerial
applications of basic business functions
 Examples: accounting, finance, or marketing
1-13

M.I.S. Model – applicable for all types of
Systems
Information
Herbert Simon Model
of Decision Making
Data
Monitoring/Feedback
Information is Data converted into a form which is meaningful and
useful for the end-user.
Processing Logic
Computers
Human Beings
Database
Intelligence Design Choice
Decision Implementation
Performance

Salient Features of Modern
MIS
 Use of Web based GUI’s for acquiring and displaying
data
 Increasingly faster SQL processors and search
engines to access / explore data
 Use of graphics and animation in GUI’s
 Use of multi-layer architecture to serve large number
of users
 Component based software engineering
 Wide range of software products / packages
 Use of advanced mining/ analytical tools

Contemporary Approaches to
MIS
1. Technical Approach – Mathematical and Normative,
emphasizing Computer Science, Management Science
and Operations Research.
2. Behavioral Approach – Based more on psychology,
sociology, political science and organizational behavior.
3. Socio-Technical Approach – Combines Technical as
well as behavioral perspectives so as to optimize
performance of Information Systems. This approach has
wider acceptance among practitioners.

Range of Careers in Information Technology
1-17

 Technology is no longer an afterthought in business strategy,
but the cause and driver
 IT can change the way businesses compete
 A strategic information system is any information system
that uses IT to help an organization…
 Gain a competitive advantage
 Reduce a competitive disadvantage
 Or meet other strategic enterprise objectives
Strategic IT
2-18

INFORMATION AS A STRATEGIC
RESOURCE
Information Technology, as a strategic resource, will help in gaining
competitive advantage in any of the following ways.
 Developing new products and services ( ATM’s in Banks)
 Developing systems to focus on market niches ( e Learning based
language teaching)
 Linking with Customers and Suppliers ( thru Extranet)
 Inter–organizational Systems (Using Collaborative tools)
 Systems to lower costs (Wastage Control Systems)
 Leveraging Technology to add value in a value chain (Any of
Inbound Logistics, Operations, Outbound Logistics, Marketing, Sales
and Service)

Michael Porter on Competitive
Advantage
 Sustainable competitive advantage is achieved
through either or combination of Cost Leadership,
Differentiation and Focus.
 Specific activities through which a company can
create competitive advantage are Inbound Logistics,
Operations, Outbound Logistics, Marketing & Sales
and Service
 Information , used strategically, should assist in
achieving superior performance in any of the areas
stated above, creating competitive advantage.

How to gain competitive
advantage?
I.T. changes the context, creating new opportunities and new threats.
Competitive advantage, depends on how well, and how effectively an
organization adapts to forces of change.
 Explore possibility of re-engineering existing business using IT (like
banks and newspapers)
 Use information to locate niches, new market segments - geographical,
demographical, social etc – use Data Mining
 Change structure – e.g. Decentralized to Centralized ( e.g. BOLT in
case of shares) or vice versa
 Use IT to add value – Better service, less mistakes and earn better
prices
 Increase efficiency, reduce costs, compete on lower price
 Enter new markets otherwise inaccessible ( thru eServices) e.g. Call
Center
 Standardize, Improve control, expand business the way MNC’s do

I.T. and organizational change
 I.T. changes the organizations, by reducing levels in
hierarchy, restructuring flow of work, changing
products/ processes, making decisions data-centric
(rather than judgmental) and making knowledge
more important than seniority.
 However, as observed by Levitt, computers alone
cannot change the organization. For that to happen,
People (thru training) , Tasks (i.e. what to do -
withdrawal of money), Processes (how to do - using
ATM Card and Password) and Technology (CBS,
ATM) have all to change simultaneously.

INFORMATION, MANAGEMENT AND
DECISION MAKING

MODELS OF DECISION MAKING
 Rational (Decision based on reason and logic)
 Bureaucratic ( Decision made in a defined framework
of rules and regulations)
 Political (Decision based on relative equations of
power of leading players)
 Default (Decision occurring by chance and random
interactions between interested parties; there is no
clear direction)

Examples of decisions under
different model(s)
 The cases of known criminals drag on in law courts
(since legal formalities have to be followed) -
Bureaucratic.
 Finance Ministry announces deficit this year will be
restricted to 4.8% - Rational
 Minimum number of gas cylinders have been raised
from 6 to 9 under public pressure - Political
 Decision on independent Telangana state is
indefinitely delayed. - Default

Bureaucratic Model
 Bureaucracy is system of administration distinguished
by (1) clear hierarchy of authority (2) rigid division
of labour, (3) written and inflexible rules, regulation
and procedures and (4) impersonal relationships
 Bureaucratic Model of decision making is based on
decisions made in the framework of bureaucracy.

Classical (Rational) Model of
Decision Making
 Classical or Economic Model is a Normative
Model (i.e. one stating the norm), based on
the following Assumptions.
 All alternatives for decision making are
known.
 The decision maker seeks to maximize profit
or utility, where profit motive is not relevant.
 The decision maker is completely sensitive to
difference between utilities, where relevant.

Administrative Model of Decision Making
(Can be also called satisficing or principle
of bounded rationality)
 Administrative Model is a Descriptive Model based on
the assumptions, that the Decision Maker -
 Does not know all alternatives for decision making.
 Makes a limited search to discover a few satisfactory
alternatives.
 Makes a Decision which satisfies his or her
aspirational level.
This model is also called satisficing – a combination of
satisfy and suffice or satisfy and sacrifice.

Herbert Simon Model of
Decision Making
 Intelligence phase involves scanning social, competitive and
organizational environment and understanding/ identifying the
problem
 Design phase involves generating alternatives to solve the
problem and evaluating each of the alternatives qualitatively
and quantitatively.
 Choice phase involves ranking the alternatives based on a
variety of criteria and choosing the most suitable among them.
 Implementation involves putting the decision into action,
feedback on its outcomes and necessary corrective action
Consider purchase/ leasing of a house as a decision to
understand the phases stated.

Role of Information Systems in
phases of Herbert Simon Model
 Intelligence ( Obtaining Information,
identifying problems, based on exception
reporting)
 Design ( Locating alternatives, Analyzing
them using DSS and analytical tools)
 Choice ( None)
 Implementation ( Disseminating information
to facilitate implementation)

MIS and Herbert Simon Model for Recovery of
Loans (A case study)
 Recovery of Loans has been a problem which Apex Bank is
required to address. The bank’s portfolio of Retail Loans in
Western Zone is made up of about 70000 accounts.
 The bank has immediate plans to focus on recovery of those
Auto Loans which have an outstanding figure of > 5 lakhs each,
and which are disbursed from Mumbai, Pune, Nagpur and
Aurangabad.
 After obtaining the list, the Bank would discuss best method to
recover the loans with its legal department and work out a
method for loan recovery. This will be implemented thru 30
different branches over a period of 6 months. If successful, the
bank has plans to extend the method to other categories of
loans as well.
 Model the situation stated thru the MIS Model. Write a sample
entry for an outstanding loan in Excel Format. Show a sample
report for Aurangabad.

M.I.S. Model for Decision Implementation.
Information
Herbert Simon Model
of Decision Making
Data
Monitoring/Feedback
The three bullet points in the case represent, respectively, Data,
Information and Decision Making.
Processing Logic
Computers
Human Beings
Database
Intelligence Design Choice
Decision Implementation
Performance

MIS Report Formats Apex Bank
 Excel Format for Outstanding Loan
 Format for MIS Report, Aurangabad Area
Acct
No
Name Loan
Type
Area Bran
ch
Amount DueDate
67543 SK Developers Ind Nag 0317 5657000 23/07/12
12125 Suresh Shinde Auto Aur 0621 550000 11/12/12
Area Aurangabad Type Auto
AcctNo Name Amount DueDate Branch
34521 SK Agarwal 750000 12/11/12 0619
12125 Suresh Shinde 550000 11/12/12 0621

Attributes of Information
 Timely
Availability
 Currency
(Being
Current)
 Proper
Frequency
 Relevance
 Completeness
 Consistency
 Accuracy
 Reliability
 Verifiability
 Clarity
 Comprehensibilty
 Brevity
 Cost
Effectiveness

Types of Information
 Strategic Level – Unstructured, External, Used for
Long Term Planning (Emerging Technologies,
Competition, Socio Political Changes)
 Tactical Level – Semi Structured, Largely Internal,
Used for Medium/ Short Term Planning (Customer
Perception, Competitors’ Actions, Pricing)
 Operational Level – Structured, Internal, used for
Short Term Planning (Specific Activity, Specific
Products, Small Group Coordination)
Information can also be typed (classified) as planning
information and control information.

 Exercises in developing
Management Information Systems
from basic data source

Student Mark sheet
Institute 0317 Vishwakarma Institute of
Management
PRN 1517202 Name Akhilesh Kumar
Code Description Int. Ext. Total
101 O.B and PPM 18 38 56
102 Management Accounting 19 21 40
103 Managerial Economics 23 45 68
104 S.Q.M. 19 37 56
105 Legal Aspects of Business 21 35 56
106 Basics of Marketing 22 40 62
107 Information Technology 43 43
108 Managerial Communication 42 42
Total 423
Pass/Fail/ATKT ATKT

Reports (Information)emerging from
student mark sheet (Data)
1. Institute wise pass-fail, total numbers and percentage
2. Institute wise List of Toppers, Name, Marks, Percentage
3. Institute wise subject wise pass-fail, numbers and percentage
4. Subject wise Institute wise pass-fail, numbers and percentage;
also overall average. Highlight Institutes below the average.
5. Subject wise Institute wise pass-fail, numbers and percentage
for external marks only
6. Institute wise First, Second, Pass Class Numbers and %
7. Comparison of University’s percentages with percentages in
items 1,3,5 and 6 above.

Invoice Format for Drug Wholesaler
Deepak Agency, Wholesalers
Date &
Time
15/12/2012 17:34:44 Invoice No 5687
Customer
Name
Rahul Medicals
Address 77, Chintamani Nagar, Bibwewadi,
Pune 411037
Sr No Description Qty Rate Value
1 Crocin 50 10.50 525.00
2 Novamox 20 54.00 1080.00
3 Colgate, 200 gms 10 38.00 380.00
4 Good Night Mats 10 53.00 530.00
5
Total 2515.00

Data Formats for Excel
 Excel Format for Invoice
 Excel Format for Product
Inv No Date Time Cust
No
Area Tot Value
5687 15/12/2013 17:34:44 R035 411037 2515.00
Inv No Sr No Prod Code Qty Rate Value
5687 1 C005 50 10.50 525.00
5687 2 N002 20 54.00 1080.00
5687 3 C008 10 38.00 380.00
5687 4 G032 10 53.00 530.00

MIS Reports emerging from
Invoice
1. Product wise sale for a given period (Quantity, Value)
2. Customer wise sale for a given period
3. Top 10/20 Customers
4. Top 10/20 Products
5. Customer wise Product wise sale for major customers, for a
given period
6. Selling pattern Date/ Daywise
7. Area wise sale (by Pin Code)
8. Area wise top products
9. Area wise top customers
10. Sale by time slots during the day in a given period

RDBMS example related to Railway Reservation Form
Form No : 3415678 Date of the Journey: 18/03/2012
Train No : 2567 Train Name: Jhelum Express
From : Pune To: Agra
Seats / Berths : Berths No: 3 Class: 2AC
Sr Passenger Sex Age Compt Seat/
No Name No Berth No
1 B R Rao M 57 S2 34
2 Surekha Rao F 54 S2 35
3 Sunil Rao M 30 S2 36

Reports resulting from Data
contained in Reservation Form
 No of passengers travelling on various trains
 Region wise
 Month wise
 Top 10 destinations in India
 Age Distribution of passengers
 Percentage of Senior Citizens
 No of trains reaching given destinations
 Trains having low occupancy

IT Capabilities and their Organizational Impact
Capability Organizational Impact
Transactional Organization can handle I.T. applications involving transaction
processing – Banking, Insurance, Share Trading
Geographical Organization can operate over a wider geographical area, multi
state, multi nation
Automational Organization can undertake applications involving automation on
shop-floor, in office. It can handle complexity better.
Analytical Organization can draw analytical inferences e.g. Data Mining
Informational Organization can effectively implement MIS; benefit therefrom
Operational Organization can make efficient use of computer technology,
accomplish more tasks than others
Knowledge Mgt Organization can convert information into knowledge and use it
Tracking Organization may have better control over flow of information,
more secure operations
Connectivity Organization can connect end users efficiently, hence can offer
good CRM, use Intranet and Extranet effectively

Telecommunications-Based Services
6-46

Telecommunications Network Components-I
 Terminals
 Any input/output device that uses networks
to transmit or receive data
 Telecommunications processors
 Devices that support data transmission, reception
 Telecommunications channels
 Media over which data are transmitted, received
 Computers
 All sizes and types
6-47

Telecommunications Network Components-II
 Telecommunications control software
 Controls telecommunications activities
 Manages the functions of telecommunications networks
 Includes network management programs of
all kinds,
 Telecommunications monitors (mainframes)
 Network operating systems (network servers)
 Web browsers (microcomputers)
6-48

Types of Communications
Networks
 Primary types of communications
networks
 Wide Area
 Local Area
 Virtual Private
 Client/Server
 Peer-to-peer
6-50

Network Topologies
 Topology
 The structure of a network
 Star Network
 Ties end user computers to a central computer
 Ring Network
 Ties local computer processors together in a
ring on a relatively equal basis
 Bus Network
 Local processors share the same
communications channel
6-51

Star Topology
 Advantages
 More secure
 Failure of one cable does not affect the
network
 Easy to add nodes
 Disadvantages
 Requires a central computer
 Requires more cable, expensive

Ring Toplogy
 Advantages
 Data flows in one direction, hence enables
high speed
 No dependence on a Central Computer
 Disadvantages
 Failure of one node affects the other
connected nodes
 Difficult to add nodes

Bus Topology
 Advantages
 Easy to add and remove nodes
 Requires shorter cable, less expensive
 Disadvantages
 Failure in central line affects the entire network
 All data flows thru the same route; higher data
volumes slows down network.
Bus and Ring topologies work with a ‘token’ – the
sending node sends the token, receiving node
recognizes and accepts.

What is I.T.E.S. ?
 Information Technology Enabled Service
(ITES) is defined as business processes and
services offered from a remote location using
information technology through
telecommunication network.
 Business Process Outsourcing and Call
Centers are two commonly known examples.

ITES include the following.
 Back office operations
 Call Centers
 Content Development / Animation
 Data Processing
 Engineering and Design
 Geographic Information System Services
 Human Resource Services
 Insurance Claim Processing

ITES also includes the
following
 Legal Databases
 Medical Transcription
 Payroll
 Remote Maintenance
 Revenue Accounting
 Support Centers
 Web site services

Geographical Information
Systems
 Geographic Information System (GIS) is a system designed to
capture, store, manipulate, analyze, manage, and present all
types of geographical data.
 GIS is the merging of cartography, statistical analysis, and
database technology.
 GIS involves digitization of elements (points, lines and polygons
– shapes and areas) that form geographical i.e. spatial, images.
These form geographical database which is manipulated using
statistical and cartographic techniques.
 Some of the important uses of GIS are Information Analysis,
Automobile Navigation, Location of units of operation (office,
restaurant, hospital etc), Map Making (Cartography), Urban and
Regional panning, Transportation and Logistics.

Some uses of GIS
1.Emergency Services – Combating Fire and Floods
2. Environmental modeling and monitoring (e.g.
monitoring forest cover)
3. Business – Site Location, Delivery Systems (e.g.
planning logistics)
4. Industry – Transportation, Communication, Mining,
Pipelines, Healthcare
5. Government – Local, State, National level planning,
Military Operations

Example of GIS,
indicating influence
of political parties
in Pune Municipal
Corporation
Elections. The
geographical
objects and the
data is linked thru
computer software.
The geographical
form of
presentation
provides new and
different insights

What are Relational Data Base
Management Systems (RDBMS)?
 RDBMS is a system of inter-related tables, which are used to
store the data. The tables are connected to each other thru
common fields. The data stored in the tables is accessed thru
SQL (Structured Query Language).
 DML (Data Manipulation Language), Data Definition Language
(DDL) and Control Statements are components of SQL.
 A RDBMS a table, titled Train Table along with sample entries
and a SQL query follows. Train Table is ‘related’ to Reservation
Form Table, which also contains Train No.
 Despite simple table design, RDBMS is capable of handling
millions of records, fast and accurately.

INVOICE_HEADER
INVNO Number 5
INVDATE Date
INVTIME Number 4
CUSTNO Char 4
AREA Number 6
TOTAMT Number 8,2
INVOICE_DETAIL
INVNO Number 5
SRNO Number 2
PRODCODE Char 4
QTY Number 3
RATE Number 8,2
VALUE Number 8,2
CUSTMAST
CUSTNO Char 4
CUSTNAME Char 30
ADDRESS1 Char 25
ADDRESS2 Char 25
ADDRESS3 Char 25
CITY Char 20
PINCODE Number 6
PRODMAST
PRODCODE Char 4
PRODNAME Char 20
RDBMS TABLE FORMATS FOR INVOICE

Using RDBMS for obtaining information
from Data, SQL Example - 1
 Purpose – Get customer list from Chichwad area
 Query
select custno, custname, pincode
from custmast
where pincode = ‘411019’
 Expected Report
custno custname pincode
B024 Baba Medicals 411019
D014 Deven Drug House 411019
R012 Rahul Medico 411019

Using RDBMS for obtaining information from
Data, SQL Example - 2
 Purpose – Find total sale in November 2012
 Query
select sum (totamt)
from invoice_header
where invdate between ’1/11/12’ and
’1/30/12’ (i.e. inclusive)
 Result
178956.78

Using RDBMS for obtaining information from
Data, SQL Example - 3
 Purpose – Get Product-wise sale for all
invoices
 Query
select prodcode, prodname, sum(qty), sum(value)
from invoice_detail, prodmast
where invoice_detail.prodcode = prodmast.prodcode
group by prodcode
order by prodcode;
(Answer in the following slide)

Example 3 - Expected Report
Prodcode Prodname Qty Value
B005 Broncodil 97 3890
C023 Crocin 5135 23675
N005 Novamox 235 12675
Total 3567450

DBMS Table Formats for Reservation System
Train_Table
Trainno Number 4
TrainName Char 30
Fromstn Char 25
Tostn Char 25
Starttime Number 4
Passenger_Table
Formno Number 9
Srno Number 1
Name Char 30
Sex Char 1
Age Number 3
Compt Char 5
SBNo Number 3
Form_Table
Formno Number 9
Date Date
Trainno Number 4
Fromstn Char 20
Tostn Char 20
Class Char 5
S_B Char 1
No_Passenger Number 1

Train_Table Sample
Entries
TrainNo TrainName Fromstn Tostn StartTime
2567Jhelum Express Pune Delhi 1730
2568Krishna Express Hyderabad Bhubaneshwar 1940
2569Udyan Express Bangalore Chennai 730
3456Deccan Queen Pune Mumbai 715

Obtaining Information from RDBMS
Tables - SQL Example -1
 Purpose – List trains between Pune and Delhi
 Query
select TrainNo, TrainName, Starttime
from Train_Table
where Fromstn = ‘Pune’ and Tostn = ‘Delhi’
 Result
TrainNo TrainName StartTime
2567 Jhelum Express 1730

Obtaining Information from RDBMS
Tables - SQL Example -2
 Purpose – Get passenger list for train 2423,
compt S7 and date = 23rd March 2012
 Query
select SBNo, Name, Sex, Age
from Form_Table, Passenger_Table
where Form_Table.FormNo =
Passenger_Table.FormNo and
TrainNo = 2423 and Date = ’03/23/
2012’ and Compt = ‘S7’

Data Warehouse
 Data Warehouse stores static data that has been
extracted from other databases in an organization
 DW is treated as central source of data that has been
cleaned, transformed, and cataloged
 Data is used for data mining, analytical processing,
analysis, research, decision support
 Data warehouses may be divided into data marts
 Data Marts are subsets of data that focus on specific
aspects of a company such as a department – e.g.
Marketing, or business process e.g. Quality Management
5-75

ETL-Extract Transform Load ODS – Operational Data Store Staging Area – Intermediate Area
Data Vault – Relevant Data from multiple sources ; cleaning is done in Data Marts

Use of multidimensional structure
for Storage and Analysis
 Variation of relational model
 Data elements are viewed as being in
cubes
 Popular for analytical databases that
support Online Analytical Processing
(OLAP)
5-77

Data Mining (currently called Business
Analytics / Business Intelligence)
 Data in data warehouses are analyzed to
reveal hidden patterns and trends
 Market-basket analysis to identify new
product bundles
 Find root cause of quality or manufacturing
problems
 Prevent customer attrition
 Acquire new customers
 Cross-sell to existing customers
 Profile customers with more accuracy
5-79

The Business Analytics (BA) Field: An Overview

Comparison between Data Warehousing, Data
Mining and Databases
 Data Warehouses are similar to Databases in that both maintain
and access tables – which may contain diverse data like
numbers, text, pictures, audio clips, video clips etc.
 Data Warehouse has better analysis capabilities (OLAP) while
Database has better transaction processing capabilities (OLTP).
DB is ‘write-optimized’ ; DW is ‘read-optimized’ . DW is better
for analytics. Note that DW and DM handle data in GB and TB.
 Data Mining is better designed for quantitative and statistical
analysis, whereas DW creates and uses simpler analyses, relying
on qualitative interpretation.
 All these DB, DW and DM have 5 capabilities – Store, Maintain,
Access, Analyze and Present the data.

System Development Life
Cycle – 5 Phases
1. System Investigation
2. System Analysis
3. System Design
4. System Implementation
5. System Maintenance
Each of the phase is explained in slides
that follow.

System Investigation
(Outcome: Feasibility Study)
 Determine how to address business
opportunities and priorities
 Conduct a feasibility study to determine
whether a new or improved business
system is a feasible solution
 Develop a project management plan
and obtain management approval

System Analysis (Outcome :
Functional Requirements)
 Analyze the information needs of
relevant stakeholders (employees,
customers, suppliers etc)
 Develop the functional requirements of
a system that can meet business
priorities and needs of relevant
stakeholders
 Develop logical model of current system
(e.g. a flow diagram)

System Design (Outcome :
System Specifications)
 Develop specifications for hardware,
software, people, network and data
resources and the information products
that will satisfy the functional
requirements of the proposed business
information systems
 Develop logical models of the new
system (e.g. flow diagram)

System Implementation
(Outcome : Operational System)
 Acquire or develop hardware and
software
 Test the system and train the people to
operate and use it
 Convert to the new business system
 Manage the effects of system change
on end users

System Maintenance
(Outcome : Improved System)
 Use a post implementation review
process to monitor, evaluate and
modify the system as needed

Prototyping
 Prototyping is the rapid development and
testing of working models with a view to
reduce time and effort in System
Development
 An interactive, iterative process used during
the design phase
 Makes development faster and easier,
especially when end user requirements are
hard to define
 Has enlarged the role of business
stakeholders 12-89

Prototyping Life Cycle
 Identify an end user’s business requirements
 Develop Business Systems Prototypes using
design and development tools
 Revise the prototypes (repeatedly) to better
meet end user’s requirement
 Use the accepted prototype to develop the
business system

System Development
Methodologies
 Process Centered Methodologies
 Data Centered Methodologies
 Object Oriented Methodologies
 Structured Design Methodologies (focusing on SDLC)
 Rapid Application Development Methodologies
 Phased Development Methodologies
 Prototyping based methodologies
 Agile development Methodologies
Note: Refer MIS by Jayant Oak, Para 5.4 for detailed
description.

Object-Oriented Structure
 An object consists of
 Data values describing the attributes of an
entity
 Operations that can be performed on the data
 Encapsulation
 Combines data and operations
 Inheritance
 New objects can be created by replicating
some or all of the characteristics of parent
objects
5-92

Example of Object-Oriented Structure
Source: Adapted from Ivar Jacobsen, Maria Ericsson, and Ageneta Jacobsen, The Object Advantage: Business Process
Reengineering with Object Technology (New York: ACM Press, 1995), p. 65.
Copyright @ 1995, Association for Computing Machinery. By permission.
5-93

Unified Modeling Language (UML)
 Object Oriented Systems use Unified Modeling
Language to describe relationships and
interactions between objects.
 Object Oriented Programming uses a technique
called ‘event driven programming’. Use case
diagrams describe the events and responses.
For example, MouseClick is an event which calls
for a response.

Decision Support Systems(DSS), Business
Analytics and Business Intelligence
Decision Support Systems, in the past were
based on low volume of data, and utilized
special tools and models (like Linear
Programming, Operations Research) for
analysis. DSS has now been converted into
Business Intelligence. It uses vast amount of
data and analyses it thru sophisticated data
warehousing and data mining tools.
.

Business Analytics (DSS) for Godrej Household
Products – Sales Force Automation (SFA)
 SFA solution was implemented on ‘Tablet’ computing devices
with a view to capture transactions related to orders, collection
and return of goods electronically and transmit them to the
billing system and returns databases.
 The tablet computer also displays information about sales
history, schemes, promotions and achievement Vs. target of
salesmen. It can even suggest an order to the salesman for a
particular outlet, based on its past record and current purchase.
 IBM XPD Desktop, located at the office, integrates data received
thru tablet application with backend billing.
 The SFA solution utilizes IBM Business Analytics software.

DSS Vs MIS
Management Information
Systems
Decision Support
Systems
Decision
support
provided
Providing information about
the performance of the
organization
Providing information
and techniques to
analyze specific
problems
Information
form and
frequency
Periodic, exception,
demand, and push reports
and responses
Interactive inquiries and
responses
Information
format
Prespecified, fixed format Ad hoc, flexible, and
adaptable format
Information
processing
methodology
Information produced by
extraction and manipulation
of business data
Information produced by
analytical modeling of
business data
10-98

Components of DSS
 Model management software (MMS)
 Coordinates the use of models in the DSS
 Model base
 Provides decision makers with access to a
variety of models
 Dialogue manager
 Allows decision makers to easily access and
manipulate the DSS

Database Model base
External database
access
Access to the
internet, networks,
and other computer
systems
Dialogue manager
DBMS MMS
External
databases

Model Base
 Model Base
 Provides decision makers with
access to a variety of models
and assists them in decision
making
 Models
 Financial models
 Statistical analysis models
 Graphical models
 Project management models

Group Decision Support
System
 Group Decision Support System (GDSS)
 Contains most of the elements of DSS plus
software to provide effective support in
group decision-making settings

Databases
Model base GDSS processor GDSS software
Dialogue
manager
External database
access
Users
Access to the internet
and corporate intranet,
networks, and other
computer system
External
databases

Characteristics of a GDSS -I
 Special design
 Ease of use
 Flexibility
 Decision-making support
 Delphi approach (decision makers are
geographically dispersed)
 Brainstorming
 Group consensus
 Nominal group technique

Characteristics of a GDSS - II
 Anonymous input
 Reduction of negative group behaviour
 Parallel communication
 Automated record keeping
 Cost, control, complexity factors

Executive Support System
 Characteristics
 A specialized DSS that
includes all the hardware,
software, data, procedures,
and people used to assist
senior-level executives
within the organization
Board of directors
President
Function area
vice presidents
Function area
managers

Characteristics of ESS
 Tailored to individual executives
 Easy to use
 Drill down capabilities
 Support the need for external data
 Help with situations with high degree of
uncertainty
 Futures orientation (predictions, forecasting)
 Linked with value-added business processes

Capabilities of ESS
 Support for
 defining overall vision
 strategic planning
 strategic organizing and staffing
 strategic control
 crisis management

E (Executive/ Enterprise/
Everybody’s) Information System
 E.I.S. started as ‘Executive Information System’,
meant for senior executives but is currently used also
at other levels where people need to take decisions
based on latest and most relevant information. It
uses data analysis tools and presentation techniques
such as ‘Executive Dashboards’ . Dashboards present
information related to Key Result Areas (KRA) or Key
Performance Indicators (KPI) in a single screen.
Capability to drill down from aggregate data to
components is an essential pre-requisite of EIS.
 Examples of dashboards follow.

Artificial Intelligence (AI)
 AI is a field of science and technology based
on
 Computer science
 Biology
 Psychology
 Linguistics
 Mathematics
 Engineering
 The goal is to develop computers that can
simulate the ability to think
 And see, hear, walk, talk, and feel as well
10-112

Domains of Artificial Intelligence
10-113

Expert Systems and Artificial
Intelligence
 Expert Systems try to incorporate experts’ knowledge
into computer software so as to assist decision
making by non-experts (e.g. medical diagnosis, Tax
planning). The Expert Systems have ‘knowledge Data
Base’ and ‘inference engine’ (i.e. logic) which is used
to draw inferences.
 Artificial Intelligence ventures into areas which has
always required human intelligence. Language
Translation and Handwriting Recognition are two
examples. AI uses algorithms similar to human
reasoning, so as to assist, if not to take decisions.

Management Issues in MIS (1) –
Information Security and Control
 External Threats
 Thru Internet and Thru Remote Access
 Problems – Hacking, Identity Theft, data loss
 Firewalls offer a partial solution
 Internal Threats
 Password theft, Misuse of authorization, malware (viruses),
physical theft of Hardware and Software
 Anti Virus Solutions, Access Reviews, Frequent Change of
passwords, back-ups and Business Process Continuity planning,
physical controls, maintaining a log of all system activities (audit
trails) are the techniques used to combat the threat.
Periodic Information Security Audit is advisable for both.

Security Policy Fundamentals
1. Security Policy Document
2. Organizational Security
3. Asset Classification and Control
4. People Issues
5. Physical and Environmental Issues
6. System and Infrastructure Management
7. Access Control
8. System Development and Maintenance
9. Business Continuity Management
10. Legal and Contractual Compliance

Management Issues in MIS (2) – Software
Quality Assurance
 Software quality assurance covers attributes such as reliability,
efficiency and promised performance .
 In order to assure quality of software, 3 aspects need to be
attended to.
1. Creating a quality profile – Specifying qualitative and
quantitative aspects of software ( such as number of problems
reported, number of updates supplied)
2. Process control thru Requirements, Design, Coding and Testing
Checklists , software engineering, Documentation etc.
3. Obtaining third party certification from agencies such as ISO
about conformance to quality procedures.

Software Quality Assurance
Defined
 Conformance to explicitly stated
functional and performance
requirements, explicitly documented
development standards, and implicit
characteristics that are expected of all
professionally developed software.

Software Quality Assurance -
Overview
 What is Software Quality assurance(SQA)?
 Quality Concepts.
 Software Quality Assurance Activities.
 Software Reviews and their importance
 Statistical SQA.
 Software Reliability
 Software Testing

Components of SQA
 Software engineering technology
 Formal technical reviews that are applied
throughout the software process
 A multi-tiered testing strategy
 Control of software documentation and
changes to it
 A procedure to assure compliance with
software development standards
 Measurement and reporting techniques

SQA Group Activities
 Participate in the development of the projects as
per software process description
 Review software engineering activities to verify
compliance with the defined software process.
 Audit designated software work products to verify
compliance with those defined as part of the
software process.
 Ensure that deviations in software work and work
products are documented and handled according
to a document procedure
 Record any non-compliance and reports to senior
management.

Management Issues in MIS (3) – Ethical
Dimensions, Intellectual Property Rights, Global
Information Systems
 Ethical Aspects are mainly related to misuse of computer
technology for personal benefit, intentional manipulation of
data, indulging in cybercrime, violating data privacy, even
insensitive automation.
 Intellectual Property Rights concern software and hardware
piracy, violation of patents, breach of trade marks, breach of
confidence relating to information held in trust.
 Managing Global Information Systems involve dealing with
cultural, political and economic challenges posed by different
countries, developing appropriate business and IT Strategies for
the global marketplace and developing a portfolio of
applications to support them.

Mis student version 2013

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