MIS Full Notes For MBA, BBA, BCA (Commerce)

Management Information System Chapter I Organization
Chapter I
Organization
Introduction & Meaning of Organization
Organization generally knows like an institution, business entity (excluding sole proprietorship busi-
ness). A organized group of people with a particular purpose, such as a business or government department
known as Organization.
Each & Every business in which group of people are included is an part of Organization, where all peo-
ple comes together & take efforts to achieve the common goal which is Making Profit or complete any particu-
lar task.
OR
The institution or business in which planning, coordination, implementation & controlling of work
is done by group of people with the help of proper administration is called as organization.
Characteristics / Features of Organization

The main characteristics or Features of organization are as follows:
Hire & Promote employees based on Qualifications

Adherence to principle of efficiency( Maximum Output)
Outlining the Objectives: Born with the enterprise are its long-life objectives of profitable manu-
facturing and selling its products. Other objectives must be established by the administration from time
to time to aid and support this main objective.
Assigning the Duties: When activities have been grouped according to similarities and common
purposes, they should be organized by a particular department. Within the department, the functional du-
ties should be allotted to particular individuals.
Defining and Granting the Authority: The authority and responsibility should be well defined
and should correspond to each other. A close relationship between authority and responsibility should be
established.
Creating Authority Relationship: After assigning the duties and delegations of authority, the es-
tablishment of relationship is done. It involves deciding who will act under whom, who will be his sub-
ordinates, what will be his span of control and what will be his status in the organization. Besides these
formal relationships, some informal organizations should also be developed.
New Satara College of BCA Pandharpur 1 Prof. Kirpekar R.R.

Role /Functions of Managers

Manager is a person who manages the overall activities in the organization. Managers just don't go out
and perform their responsibilities is not true. Good managers are tried to implement the five basic functions:
planning, organizing, staffing, leading, and controlling.
Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example,
that the organization's goal is to improve company sales. The manager first needs to decide which steps
are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and
sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can
follow it to accomplish the goal of improving company sales.
Organizing: After a plan is in place, a manager needs to organize her team and materials according to
her plan. Assigning work and granting authority are two important elements of organizing.
Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting,
selecting, training, and developing employees. A manager in a large organization often works with the
company's human resources department to accomplish this goal.
Leading: A manager needs to do more than just plan, organize, and staff her team to achieve a goal.
She must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires
the manager to coach, assist, and problem solve with employees.
Controlling: After the other elements are in place, a manager's job is not finished. He needs to con-
tinuously check results against goals and take any corrective actions necessary to make sure that his ar-
ea's plans remain on track.
Required skills for Managers in Organization

Leadership ability to influence others to perform tasks
Selfobjectivity ability to evaluate yourself realistically
Analytic thinking ability to interpret and explain patterns in information
Behavioral flexibility ability to modify personal behavior to react objectively rather than subjec-
tively to accomplish organizational goals.
Oral communication ability to express ideas clearly in words
Written communication ability to express ideas clearly in writing
Personal impact ability to create a good impression and instill confidence
Resistance to stress ability to perform under stressful conditions
Tolerance for uncertainty ability to perform in ambiguous situations.

Decision Making
In organization for continuing business managers having a right to take decisions & implement the work
according it.
Decision means choice made between alternative courses of action in a situation
of uncertainty.
Managers are constantly called upon to make decisions in order to solve problems. Decision
making and problem solving are ongoing processes of evaluating situations or problems, considering
alternatives, making choices, and following them up with the necessary actions. Sometimes the decisionmaking
process is extremely short, and mental reflection is essentially instantaneous. In other situations, the process can
drag on for weeks or even months. The entire decisionmaking process is dependent upon the right information
being available to the right people at the right times.
Decision making is a daily activity for any human being. There is no exception about that. When it
comes to business organizations, decision making is a habit and a process as well. Effective and successful de-
cisions make profit to the company and unsuccessful ones make losses. Therefore, corporate decision making
process is the most critical process in any organization.
In the decision making process, manager choose one course of action from a few possible alternatives.
In the process of decision making, manager may use many tools, techniques and perceptions.
OR
Decision making is a process of choosing among alternative courses of action for the purpose of at-
taining/ achieving Common goal/ goals.
OR
Decision making is process of identifying problems and opportunities and resolving them.
Sometime manager may make our own private decisions or may prefer a collective decision. Usually,
decision making is hard. Majority of corporate decisions involve some level of dissatisfaction or conflict with
another party. Manager takes a decision with following some steps / process which is also called as Decision
making Process/ Decision making life cycle.

Steps of Decision Making Process:

Following are the important steps of the decision making process. Each step may be supported by
different tools and techniques.
Step 1: Identification of the purpose of the decision.
Step 2: Information gathering.
Step 3: Principles for judging the alternatives.
Step 4: Brainstorm and analyze the different choices.
Step 5: Evaluation of alternatives.
Step 6: Select the best alternative.
Step 7: Execute the decision.
Step 8: Evaluate the results.
Identify & Define the Problem
Revise
Information Collection
/Gathering
Develop Alternative Solutions

Revise
Brainstorm & analyze the al-

ternatives/different choices
Evaluation of Alternatives
Select Alternatives
Revise
Implement Decision
Revise
Evaluation & Control

Step 1: Identification of the purpose of the decision:

In this step, the problem is thoroughly analyzed. There are a couple of questions when it comes to identifying
the purpose of the decision.
What exactly is the problem?
Why the problem should be solved?
Who are the affected parties of the problem?
Does the problem have a deadline or a specific time-line?
Step 2: Information gathering:

A problem of an organization will have many stakeholders. In addition, there can be dozens of factors
involved and affected by the problem.
In the process of solving the problem, you will have to gather as much as information related to the
factors and stakeholders involved in the problem. For the process of information gathering, tools such as 'Check
Sheets' can be effectively used.
Step 3: Principles for judging the alternatives:

In this step, the baseline criteria for judging the alternatives should be set up. When it comes to defining
the criteria, organizational goals as well as the corporate culture should be taken into consideration.
As an example, profit is one of the main concerns in every decision making process. Companies usually do not
make decisions that reduce profits, unless it is an exceptional case. Likewise, baseline principles should be
identified related to the problem in hand.
Step 4: Brainstorm and analyze the different choices:

For this step, brainstorming to list down all the ideas is the best option. Before the idea generation step,
it is vital to understand the causes of the problem and prioritization of causes.
For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-Effect
diagram helps manager to identify all possible causes of the problem and Pareto chart helps you to prioritize and
identify the causes with highest effect.
Then, you can move on generating all possible solutions (alternatives) for the problem in hand.

Step 5: Evaluation of alternatives:

Manager use judgment principles and decision-making criteria to evaluate each alternative. In this step,
experience and effectiveness of the judgment principles come into play. Manager need to compare each
alternative for their positives and negatives for result.
Step 6: Select the best alternative:

Once manager complete steps from Step 1 to Step 5, this step is easy. In addition, the selection of the
best alternative is an informed decision since manager have already followed a methodology to derive and
select the best alternative.
Step 7: Execute the decision:

Convert decision into a plan or a sequence of activities. Execute/implement plan by manager or with the
help of subordinates.
Step 8: Evaluate the results:

Evaluate the outcome of decision then must check that nothing goes wrong & check whether there is
anything should learn and then correct in future decision making. This is one of the best practices that will
improve decision-making skills.
TYPES OF DECISIONS:
1) PROGRAMMED DECISIONS:
A routine or repetitive decision that can be handled by established business rules or procedures.
These types of decisions are often called for at certain points in a standard process, and are decided based
on recognized and easily identifiable factors. Programmed decisions typically do not require
much consideration or discussion, and can generally be automated to ensure consistency and save time for
decision-makers.
2) NON PROGRAMMED DECISIONS:

Non programmed decisions are typically one shot decisions that are usually less structured
than programmed decision. The managers is always involved in this type of decision. Decisions that must be
custom made to solve unique and nonrecurring problems.
E.g. Non programmed decisions include deciding whether to acquire another organization.

Management Information System Chapter II Information System
Chapter II
Information System
Introduction of Data:-
"Data" comes from a singular Latin word, datum, which originally meant
"something given." Its early usage dates back to the 1600s. Over time "data" has become
the plural of datum.
Data is raw, unorganized facts that need to be processed. Data can be something simple
and seemingly random and useless until it is organized.
Meaning of Data:-
Data are simply facts or figures bits of information, but not information itself. When
data are processed, interpreted, organized, structured or presented so as to make them
meaningful or useful, they are called information. Information provides context for data.
OR
Data is unprocessed facts and figures. Plain collected data, as raw facts cannot help in
decision making. However, data is the raw material that is organized, structured and interpreted
to create useful information systems.
Data is defined as 'groups of nonrandom symbols in the form of text, images, voice
representing quantities, action and objects
For example: - A list of dates data is meaningless without the information
that makes the dates relevant (dates of holiday).
Data" and "information" are intricately tied together, whether one is recognizing them as
two separate words or using them interchangeably, as is common today. Whether they are used
interchangeably depends somewhat on the usage of "data"
Introduction of Information:-
Information is a meaningful data (facts) Societies mainly depend on the information &
it support to achieve desired objectives like Planning, organizing, decision making, & other.
"Information" is an older word that dates back to the 1300s and has Old French and
Middle English origins. It has always referred to "the act of informing, usually in regard
to education, instruction, or other knowledge communication.

Meaning of Information:-
When data is processed, organized, structured or presented in a given context so as to
make it useful, it is called information.
OR
Information is interpreted data; created from organized, structured and processed data in
a particular context.
OR
Information is a data that has been processed into a form that is meaningful to
recipient and is of real or perceived value in the current or the prospective action or decision of
recipient
E.g. The average score of a class or of the entire school is information that can be
derived from the given data.
Information can be classified in a number of ways; this tutorial will give two of the most
important ways to classify information:
Classification by Characteristic:-
Based on Anthony's classification of Management, information used in business for
decision making is generally categorized into three types:

Strategic Information:-
Strategic information is concerned with long term policy decisions that defines the
objectives of a business and checks how well these objectives are met.
E.g. Acquiring a new plant, a new product, diversification of business etc.
Tactical Information:-
Tactical information is concerned with the information needed for exercising control
over business resources & used for medium /short term planning by the Middle Management
like budgeting, Quality control, service level, inventory level, productivity level etc.
Operational Information-:
Operational information is concerned with plant/business level information and is used to
ensure proper conduction of specific operational tasks as planned/intended. Various operator
specific, machine specific and shift specific jobs for quality control checks comes under this
category.
Classification by Application:-
In terms of applications, information can be categorized as:
Planning Information-
It covers the whole organization & having a longer span & looks for & analyses
trends/patterns. & it is used for working futuristic trends/forecasts.
These are information needed for establishing standard norms and specifications in
an organization. This information is used in strategic, tactical and operation planning of any
activity.
E.g. Time standards, Design standards.
Control Information:-
It concerns with small specific part of the organization. & It has a shorter time
span. It looks for specific details for functional activity & used for assessing actual performance
vis--vis budgeted.
This information is needed for establishing control over all business activities
through feedback mechanism. This information is used for controlling attainment, nature and
utilization important processes in a system. When such information reflects a deviation from the
established standards, the system should induce a decision or an action leading to control.
Knowledge Information:-
Knowledge is defined as "information about information". Knowledge
information is acquired through experience and learning and collected from archival data and
research studies.

Organizational Information:-
Organizational information deals with an organization's environment, culture in
the light of its objectives. Karl Weick's Organizational Information Theory emphasizes that an
organization reduce uncertainty by collecting, managing and using these information prudently.
This information is used by everybody in the organization; examples of such
information are employee and payroll information.
Functional/ Operational Information:-
This is operation specific information. For example, daily schedules in a
manufacturing plant that refers to the detailed assignment of jobs to machines or machines to
operators. In a service oriented business, it would be the duty roster of various personnel. This
information is mostly internal to the organization.
Database Information:-
Database information construes large quantities of information that has multiple
use and application. Such information is stored, retrieved and managed to create databases. For
example, material specification or supplier information is stored for multiple users.
Classification by Management Hierarchy:-

Top Level Information :-
Refer the strategic Information point from Classification by
Characteristics
Middle Level Information:-
Refer the Tactical Information point from Classification by

Characteristics
Supervisory Level Information

Refer the Operational Information point from Classification by
Characteristics

Quality of Information
Information is a vital resource for success of any organization. Future of an organization
lies in using and disseminating information wisely. Good quality information placed in right
context in right time tells us about opportunities and problems well in advance.
What is good quality information? Quality is a value that would vary according to the users and
uses of the information.
Essential Characteristics/ Features/ Attributes for Information Quality:

Intrinsic: Accuracy, Objectivity, Believability, Reputation
Contextual: Relevancy, Value-Added, Timeliness, Completeness, Amount of information
Representational: Interpretability, Format, Coherence, Compatibility. Form The level of
detail, tabular versus graphic display, and quantitative versus qualitative form are selected
in accordance with the situation Internal and External Information
Accessibility: Accessibility, Access security
Reliability - It should be verifiable and dependable.
Timely - It must be current and it must reach the users well in time, so that important
decisions can be made in time. It means Timely Available when needed and not outdated
when made available
Relevant -It should be current and valid information and it should reduce uncertainties. &
it has direct bearing on/relating to the situation
Accurate - It should be free of errors and mistakes, true and not deceptive. it Offers
quantitative information with a degree of exactness appropriate to the underlying data
Sufficient - It should be enough and adequate and sufficient in quantity, so that decisions
can be made on the basis of it.
Unambiguous - It should be expressed in clear terms. In other words in should be
comprehensive.

Complete - It should meet all the needs in current context. Complete Includes all the user
needs to know about the situation where the information will be used
Unbiased - It should be impartial, free from any bias. In other words it should have
integrity.
Explicit - It should not need any further explanation.
Comparable - It should be of uniform collection, analysis, content, and format.
Reproducible - It could be used by documented methods on the same data set to achieve a
consistent result.
Information Need & Objective

Information processing beyond doubt is the dominant industry of the present century.
Following are the needs and objectives of information processing:
Increasing impact of information processing for organizational decision making.
Dependency of services sector including banking, financial organization, health care,

entertainment, tourism and travel, education and numerous others on information.
Changing employment scene world over, shifting base from manual agricultural to
machine-based manufacturing and other industry related jobs.
Information revolution and the overall development scenario.
Growth of IT industry and its strategic importance.
Strong growth of information services fuelled by increasing competition and reduced

product life cycle.
Need for sustainable development and quality life.
Improvement in communication and transportation brought in by use of information

processing.
Use of information processing in reduction of energy consumption, reduction in pollution

and a better ecological balance in future.

Use of information processing in land record managements, legal delivery system,

educational institutions, natural resource planning, customer relation management and so on.
In a nutshell/Short:
Information is needed to survive in the modern competitive world.
Information is needed to create strong information systems and keep these systems up to
date.
Implications of Information in Business/ place of information systems in the

organization
Information processing has transformed our society in numerous ways. From a business
perspective, there have been huge shift towards increasingly automated business processes and
communication.
Access to information and capability of information processing has helped in achieving

greater efficiency in accounting and other business processes.
A complete business information system, accomplish the following functionalities:
Collection and storage of data
Transform these data into business information useful for decision making
Provide controls to safeguard data
Automate and streamline reporting
The following list summarizes the five main uses of information by businesses
and other organizations:

Planning - at the planning stage information is the most important ingredient in decision
making. Information at planning stage includes that of business resources, assets, liabilities,
plants and machineries, properties, suppliers, customers, competitors, market and market
dynamics, fiscal policy changes of the Government, emerging technologies etc.
Recording - business processing these days involve recording information about each
transaction or event. This is information collected, stored and updated regularly at the
operational level.


Controlling - a business need to set up an information filter, so that only filtered data is
presented to the middle and top management. This ensures efficiency at the operational level
and effectiveness at the tactical and strategic level.
Measuring - a business measures its performance metrics by collecting and analyzing
sales data, cost of manufacturing and profit earned.
Decision-making - MIS is primarily concerned with managerial decision making, theory
of organizational behavior and underlying human behavior in organizational context. Decision-
making information includes the socioeconomic impact of competition, globalization,
democratization and effects of all these factors on organizational structure.
Following factors arising as outcome of information processing helps in speed

up of business events and achieves greater efficiency:
Directly and immediate linkage to the system
Faster communication of an order
Electronic transfer of funds for faster payment
Electronically solicited pricing (helps in determining the best price)
Introduction of System
A set of detailed methods, procedures and routines created to carry out a
specific activity, perform a duty, or solve a problem.
An organized, purposeful structure that consists of interrelated and
interdependent elements (components, entities, factors, members, parts etc.). These elements
continually influence one another (directly or indirectly) to maintain their activity and the
existence of the system, in order to achieve the goal of the system
Concept & characteristics of Information System

Information System is classified into
Formal System
Computer Based Information System
Formal Systems
Fixed definitions of data and procedures for collecting, storing, processing,
disseminating, and using these data can be computer-based or manual
Computer-based Information Systems Use computer hardware and software to
process and disseminate information OR

IS (Information System) is process (handle) the data & Convert it into useful
information through H/W, S/W, telecommunication, DB (Database)
IS or computer systems related to process data and provide required information.
E. g. ATMs, airline reservation systems, course reservation systems
Inform
ation systems use data stored in computer databases to provide needed information. A database
is an organized collection of interrelated data reflecting a major aspect of a firm's activities.
1. Information systems capture data from the organization (internal data) and its environment
(external data).
2. They store the database items over an extensive period of time.
3. When specific information is needed, the appropriate data items are manipulated as
necessary, and the user receives the resulting information.
4. Depending on the type of information system, the information output may take the form a
query response, decision outcome, expert-system advice, transaction document, or a report.
Formal information systems rely on procedures (established and accepted by

organizational practice) for collecting, storing, manipulating, and accessing data in order to
obtain information. Formal systems do not have to be computerized, but today they usually are.
Informal information systems also exist within an organization (interpersonal

networking, water cooler gossip, etc.).
Components of Information Systems

Information systems consist of the following general components:
1. Hardware
2. Software
3. Databases
4. Human resources
5. Procedures

Hardware
Multiple computer systems: microcomputers, minicomputers, mainframes, together with

their peripherals. Computer system components are: a central processor(s), memory hierarchy,
input and output devices.
Computer processor:
The central processor carries out the instructions of a program, translated into a simple
form.
Memories:
It included in a computer system form a hierarchy. They range from the fast electronic
units, such as the main memory, to the slower secondary storage devices such as magnetic
disks.
Software
Computer software falls into two classes: Systems software and

Applications software.
Systems Software: Manage the resources of the computer system and simplifies
programming. An operating system is the principal system software. It manages all the
resources of a computer system and provides an interface through which the system's user can
deploy these resources.
Application Software: Are programs that directly assist end users in doing their work.
They are purchased as ready-to-use packages. Applications software directly assists end users in
doing their work.
Databases

Databases are organized collections of interrelated data used by applications software.

Databases are managed by systems software known as database management systems (DBMS)
and shared by multiple applications.
Human Resources
Professional information systems personnel include development and maintenance

managers, systems analysts, programmers, and operators, often with highly specialized skills.
End users are the people who use information systems or their information outputs, that
is, the majority of people in today's organizations. The hallmark of the present stage in
organizational computing is the involvement of end users in the development of information
systems. End-user computing, or control of their information systems by end users and the
development of systems by end users, has become an important contributor to information
systems in organizations.
Procedures
Procedures are the policies and methods to be followed in using, operating, and
maintaining an information system. Specifications for the use, operation, and maintenance of
information systems, collected in help facilities, user manuals, operator manuals, and similar
documents, frequently delivered in an electronic form.
Characteristics of Information System
In running business, using information systems to facilitate works is crucial to improve

productivity. Employees have to access, manage, input, and manipulate data in a system to track
and handle all business progress like inventory, cash flow, invoicing, sales, and many more.
Thus, IT division in a business corporate has important role and responsibility to create reliable
and powerful applications to let other divisions run the system very well. Following are the
main characteristics of a good information system:

Accessible: - Accessibility is the main requirement of information system because all

authorized users have to access the system first to do their works. The system must be
designed accessibly so the employees can do the jobs through desktop/gadget, software, and
internet network easily.
Accurate: - Of course, information system must be accurate in calculating and showing
the information because a business may even get loss if there is any inaccurate data or
calculation. Wrong data or information in an information system will impact the result and
even make worse because managers surely tend to make wrong decision.
Simple:- Using information system is intended to simplify business works. Thus, it must
be designed and created simply to allow all authorized users access the system to manipulate
data easily because theyll get confused to do their works if they use a complex system.
Flexible: - Its essential to have a flexible information system that can be used by all
divisions in a company to see valuable and important information. For example, people in
production division need to see outgoing products in sales database so they can keep
producing timely and estimate the products amount to be produced.
Secure: - Only authorized users are able to input and manipulate data so there must be
username and password required for them to access the information. Information system that
has good security will keep all data including customers data, cash flow, etc.
Role & Importance of Information System:-
All companies use information to set strategies and accomplish business

objectives
Every business, program or system must address well-defined objectives, which will add
value, either directly to the bottom line or toward the achievement of the organization's goals
and objectives. Good management information objectives usually fall into one of three
categories:
Service (effective and efficient),

Profit (or cost-avoidance, and
Social (moral, ethical and legal) responsibility.

A good management information system will only reap the benefits if the companies
gain insight to better align strategies and identify critical relationships and gaps along four key
company dimensions people, process, culture and infrastructure.
The following are the most important reasons to have a good management
information system:
1. Operational excellence
2. New products, services, and business models
3. Customer and supplier intimacy
4. Improved decision making
5. Competitive advantage
6. Survival
The emergence of a global economy, transformation of industrial economies,
transformation of the business enterprise, and the emergence of digital firm make information
systems essential in business today. Information system is a foundation for conducting business
today. In many businesses, survival and the ability to achieve strategic business goals is difficult
without extensive use of information technology. There are six reasons or objectives why
businesses use information system:
1. Operational excellence. Business improve the efficiency of their operations in order to

achieve higher profitability. Information systems are important tools available to managers for
achieving higher levels of efficiency and productivity in business operations. A good example
is Wal-Mart that uses a Retail Link system , which digitally links its suppliers to every one of
Wal-Mart's stores. as soon as a customer purchase an item , the supplier is monitoring the item
knows to ship a replacement to the shelf.
2. New products, services, and business models. Information system is a major tool for firms
to create new products and services, and also an entirely new business models. A business
model describes how a company produces, delivers, and sells a product or service to create
wealth.

Example: Apple inc. transformed an old business model based on its iPod technology platform
that included iPod, the iTunes music service, and the iphone.
3. Customer/supplier intimacy. When a business serves its customers well, the customers
generally respond by returning and purchasing more. This raises revenue and profits. The more
a business engages its suppliers, the better the suppliers can provide vital inputs. These lower
costs. Example: The Mandarin Oriental in Manhattan and other high-end hotels exemplify the
use of information systems and technology to achieve customer intimacy. They use computers
to keep track of guests' preferences, such as their preferred room temperature, check-in time,
television programs.
4. Improved decision making. Many managers operate in an information bank, never having
the right information at the right time to make an informed decision. These poor outcomes raise
costs and lose customers. Information system made it possible for the managers to use real time
data from the marketplace when making decision. Example: Verizon Corporation uses a Web-
based digital dashboard to provide managers with precise real -time information on customer
complains, network performance.. Using this information managers can immediately allocate
repair resources to affected areas, inform customers of repair efforts and restore service fast.
5. Competitive advantage. When firms achieve one or more of these business objectives(
operational excellence, new products, services, and business models, customer/supplier
intimacy, and improved decision making) chances are they have already achieved a competitive
advantage. Doing things better than your competitors, charging less for superior products, and
responding to customers and suppliers in real time all add up to higher sales, and higher profits.
Example: Toyota Production System focuses on organizing work to eliminate waste, making
continues improvements, TPS is based on what customers have actually ordered.
6. Day to day survival. Business firms invest in information system and technology because
they are necessities of doing business. These necessities are driven by industry level changes.
Example: Citibank introduced the first automatic teller machine to attract customers through
higher service levels, and its competitors rushed to provide ATM's to their customers to keep up

with Citibank. Providing ATMs services to retail banking customers is simply a requirement of
being in and surviving in the retail banking business. Firm turn to information system and
technology to provide the capability to respond to these.
Difference between computer literacy and information system literacy

Information literacy is the ability to understand how information is organized and identify
the information that is needed and used in business intelligence. Computer literacy is the ability
to use the computer. This is an understanding of how to use productivity software on the
computer such as word processing, excel, and powerpoint presentations. It is also having
knowledge on how to use the internet, collaboration tools, and technology.

Management Information System Chapter III Major Enterprise IS
Chapter III
Major Enterprise Information Systems/Applications
Enterprise Resource Planning

Introduction:-
Information Technology is revolutionizing the way
in which we live and work. It is changing all aspects of our life and
lifestyle. The amount of calculation power that is available to mankind is
increasing at an exponential rate. Computers and communication are becoming
integral part of our lives.
To survive, thrive and beat the competition in todays
world, one has to manage the future. Managing the future means managing
the information. IT has many roles to play in the organization. All organizations
have certain objectives and goals to achieve. For any organization to succeed,
all business units or departments should work towards these common
goal. But each department or business function in the organization will have its
own goals and procedures. The departmental objectives can sometimes be
conflicting. For example the finance department might want to cut down
the advertising budget, whereas t h e m a r k e t i n g d e p a r t m e n t m i g h t
w a n t m o r e m o n e y . S i m i l a r l y p r o d u c t i o n - p l a n n i n g department
might want to reduce the inventory level, but the production people
might want to reduce the inventory level, but the production people might want to
have more stocks. To success of an organization rests in resolving the conflicts
between the various business functions and making them do what is good for the
organization as a whole. For this, information is critical. Everybody should know
what is happening in other parts of the organization. It is not enough that each
department manages its activities efficiently, it should also help other
departments manage their functions efficiently. For these to happen, the
organization should cease to function of islands of information, each working in

isolation. Each and every employee should know what his/her counter-parts are
doing, h o w h i s / h e r a c t i o n s a n d d e c i s i o n s w i l l a f f e c t t h e o t h e r
depart ments. This kind of information sharing was difficult in
t h e e a r l y d a y s . N o w w i t h t h e a d v a n c e m e n t i n Information
Technology this is possible.
IT has a crucial role to play, both at the organizational
level and at the departmental level. At the organizational level, IT should
assist in specifying objectives and strategies of the organization. IT should aid in
developing and supporting systems and procedures to achieve them. At the
departmental level, IT must ensure a smooth flow of information
across departments, and should guide organizations to adopt the most
viable business practices. At this level, IT ensures seamless
flow of information across the different departments and develops and
maintains an enterprise-wide database. This database will eliminate the need of the
isolated data islands that existed in each department and make the organizations
data accessible across the departmental boundaries. The enterprise-wide data
sharing has many benefits like automation of the procedures,
availability of high quality information for better decision making, faster
response time and so on.
The system has work around the core activities of the organization, and
should facilitate seamless flow of information across departmental barriers. Such
as systems can optimally plan and manage all the resources of the organization and
hence, they can be called as Enterprise Resources Planning (ERP) systems.
An Enterprise is a group of people with a common goal, which has
certain resources at its disposal to achieve that goal. The group has some key
functions to perform in order to achieve its goal.
Resources included are money, manpower, material, and all the other
things that are required to run the enterprise.

Planning is done to ensure that nothing goes

wrong. Planning is putting necessary functions in place and more
importantly, putting them together.
Therefore Enterprise Resources Planning or ERP is a method of
effective planning of all the resources in an organization.
Meaning of ERP:-
ERP means Enterprise Resource Planning, a business management
system that integrates all facets of the business, including planning, manufacturing,
sales, and marketing. As the ERP methodology has become more popular, software
applications have emerged to help business managers implement ERP in business
activities such as inventory control, order tracking, customer service, finance and
human resources.
Enterprise resource planning's true ambition is to integrate all departments
and functions across a company onto a single computer system that can serve all
those different departments' particular needs. Thus ERP attempts to integrate all
departments and functions across a company onto a single computer system that
can serve all those different departments' particular needs.
ERP concepts are shown with figure as follows:-

Enterprise Resource Planning (ERP)

Enterprise Resource planning is a core software used by companies to coordinate
information in every area of the business. Which help to manage company wide
business processes using a common database and shared management reported
tools.
In each & every company different Departments are existed. In
companies departments are separated through its functions. In most of the
companies include some major & common functional departments.& each
functional department having an area of work.
Need for Enterprise Resource Planning - Why ERP?
Separate systems were being maintained during 1960/70 for traditional
business functions like Sales & Marketing, Finance, Human Resources,
Manufacturing, and Supply Chain Management. These systems were often
incongruent, hosted in different databases and required batch updates. It was
difficult to manage business processes across business functions e.g. procurement
to pay and sales to cash functions. ERP system grew to replace the islands of
information by integrating these traditional business functions. & following points
also explain the need of ERP
Business integration and automated data update
Linkage between all core business processes and easy flow of integration
Flexibility in business operations and more agility to the company
Better analysis and planning capabilities
Critical decision making
Competitive advantage
Use of latest technologies

Salient Features of ERP are,

1. Accommodating variety: The ERP software solution provides both multi
lingual and multi-currency capabilities. Also multi mode manufacturing and multi-
facility provide the capability required to compete and succeed globally.
2. Integrated Management Information:
(i) Todays business managers use ERP for Flexible reporting tools to extract the
information as and when needed without depending on an information system
department (MIS department).
(ii) Electronic data interchange (EDI) to electronically accept customer
information like purchase orders, schedule amendments, or cash payment and
electronically send order acknowledgement and invoices to customers.
(iii) Imaging to provide the ability to display drawings or specification, ability to-
store original sale orders, purchase orders, and quotations, and contracts.
(iv) Data base creation: Starting with time and attendance reporting, monitoring
and control of machines and post-sales statistics.
Scope of ERP
Finance: Financial accounting, Managerial accounting, treasury management,
asset management, budget control, costing and enterprise control
Logistics: Production planning, material management, plant maintenance, project
management, activities and events management etc.
Human resource: Personnel management, training and development etc.
Supply Chain: Inventory control, purchase and order control, supplier scheduling,
planning etc.
Work flow: Integrate the entire organization with the flexible assignment of tasks
and responsibility to locations, position, jobs etc.

Advantages of ERP:-
The successful implementation of an ERP system will have many advantages,
as indicated below:
Business integration and Improved Data Accuracy: ERP system is composed of

various modules/ sub modules where a module represents a particular business
component. If data is entered in one module such as receiving, it automatically
updates other related modules such as accounts payable and inventory. This
updating occurs at real time i.e. at the time a transaction occurs. Since, data needs
to be entered only once at the origin of transaction, the need of multiple entries of
the same data is eliminated. Likelihood of duplicate/ erroneous data is, therefore,
minimized. The centralized structure of the data base also enable better
administration and security provisions, which minimizes loss of sensitive data.
Planning and MIS: The various decision support tools like planning engines and
simulations functions, form integral part of an ERP system which helps in proper
utilization of resources like materials, human resources and tools. Constrained
based planning help in drawing appropriate production schedules, thereby
improving operation of plant and equipment. As a part of MIS, an ERP system,
contains many inbuilt standard reports and also a report writer which produce ad
hoc reports, as and when needed.
Improved Efficiency and Productivity: In addition to provision of improved
planning, ERP system provides a tremendous boost to the efficiency of day to day
and routine transactions such as order fulfillment, on time shipment, vendor
performance, quality management, invoice reconciliation, sales realization, and
cash management. Cycle time is reduced for sales to cash and procurement to pay
sequences.
Establishment of Standardized Procedures: ERP system is based on processes
of international best practices, which are adopted by the organizations during
implementation. Department silos are purged and maverick practices are done

away with. Because of top down view available to management, chances of theft,
fraud and obsolescence are minimized.
Flexibility and technology: Due to globalized environment, where production
units, distribution centers and corporate offices reside in different countries,
organizations need multi currency, multi language and multi accounting modes, in
an integrated manner. These provisions are available in most of the ERP systems,
particularly in products offered by tier 1 and tier 2 vendors. ERP vendors are also
quick to adopt latest technologies, from mainframe to client server to internet.
Unlike a bespoke system, Upgrading to latest technology for a running ERP system
is uncomplicated, involving mostly adoption of service packs and patches.
Other benefits of ERP system are:-
Direct Benefits
1. Reduce the cost of production and services
2. Lead time reduction
3. Faster production
4. Automated ordering and payment
5. Inventory reduction
Indirect Benefits:-
1. Improve customer response
2. Support strategic planning
3. Uniform and standard reporting accorting to global standards.
4. Save time and efforts in data entry.
5. Can reach more vendors, producing more competitive bids.
6. Access to accurate data
7. Faster access to data for timely decisions

Disadvantage of ERP:
Expense and time in implementation
Difficulty in integration with other system
Risk of implementation failure
Difficulty in implementation change
Risk in using one vendor
Customer Relationship Management (CRM)

CRM is an enterprise application module that manages a company's
interactions with current and future customers by organizing and coordinating sales
and marketing, providing better customer services along with technical support.
Meaning / Definition of CRM
Customer relationship management (CRM) is a system for managing a
company's interactions with current and future customers. It involves using
technology to organize, automate and synchronize sales, marketing,
customer service, and technical support.
According to Atul Parvatiyar and Jagdish N. Sheth
Customer Relationship Management is a comprehensive strategy and
process of acquiring, retaining, and partnering with selective customers to create
superior value for the company and the customer. It involves the integration of
marketing, sales, customer service, and the supply-chain functions of the
organization to achieve greater efficiencies and effectiveness in delivering
customer value.
The purpose of CRM
The focus of CRM is on creating value for the customer and the company
over the longer term
When customers value the customer service that they receive from suppliers,
they are less likely to look to alternative suppliers for their needs

CRM enables organizations to gain competitive advantage over

competitors that supply similar products or services.
& CRM is important because Todays businesses compete with multi-
product offerings created and delivered by networks, alliances and partnerships of
many kinds. Both retaining customers and building relationships with other value-
adding allies is critical to corporate performance
The adoption of C.R.M. is being fuelled by a recognition that long-term

relationships with customers are one of the most important assets of an
organization
Need of CRM:
To keep track of all present and future customers
To identify and target the best customers
To let the customers know about the existing new products and services
To provide real-time and personalized services based on the needs, wants

and habits of the existing customers
To provide superior service and consistent customer experience
To implement a feed-back system
Features of CRM
Customer Relationship Management is a strategy which is customized by an

organization to manage and administrate its customers and vendors in an efficient
manner for achieving excellence in business. It is primarily entangled with
following features:
1. Customers Needs- An organization can never assume what actually a

customer needs. Hence it is extremely important to interview a customer
about all the likes and dislikes so that the actual needs can be ascertained

and prioritized. Without modulating the actual needs it is arduous to serve

the customer effectively and maintain a long-term deal.
2. Customers Response- Customer response is the reaction by the
organization to the queries and activities of the customer. Dealing with these
queries intelligently is very important as small misunderstandings could
convey unalike perceptions. Success totally depends on the understanding
and interpreting these queries and then working out to provide the best
solution. During this situation if the supplier wins to satisfy the customer by
properly answering to his queries, he succeeds in explicating a professional
and emotional relationship with him.
3. Customer Satisfaction- Customer satisfaction is the measure of how the
needs and responses are collaborated and delivered to excel customer
expectation. In todays competitive business marketplace, customer
satisfaction is an important performance exponent and basic differentiator of
business strategies. Hence, the more is customer satisfaction; more is the
business and the bonding with customer.
4. Customer Loyalty- Customer loyalty is the tendency of the customer to
remain in business with a particular supplier and buy the products regularly.
This is usually seen when a customer is very much satisfied by the supplier
and re-visits the organization for business deals, or when he is tended
towards re-buying a particular product or brand over times by that supplier.
To continue the customer loyalty the most important aspect an organization
should focus on is customer satisfaction. Hence, customer loyalty is an
influencing aspect of CRM and is always crucial for business success.
5. Customer Retention- Customer retention is a strategic process to keep or
retain the existing customers and not letting them to diverge or defect to
other suppliers or organization for business. Usually a loyal customer is
tended towards sticking to a particular brand or product as far as his basic
needs continue to be properly fulfilled. He does not opt for taking a risk in

going for a new product. More is the possibility to retain customers the more
is the probability of net growth of business.
6. Customer Complaints- Always there exists a challenge for suppliers to deal
with complaints raised by customers. Normally raising a complaint indicates
the act of dissatisfaction of the customer. There can be several reasons for a
customer to launch a complaint. A genuine reason can also exist due to
which the customer is dissatisfied but sometimes complaints are launched
due to some sort of misunderstanding in analyzing and interpreting the
conditions of the deal provided by the supplier regarding any product or
service. Handling these complaints to ultimate satisfaction of the customer is
substantial for any organization and hence it is essential for them to have
predefined set of process in CRM to deal with these complaints and
efficiently resolve it in no time.
7. Customer Service- In an organization Customer Service is the process of
delivering information and services regarding all the products and brands.
Customer satisfaction depends on quality of service provided to him by the
supplier. The organization has not only to elaborate and clarify the details of
the services to be provided to the customer but also to abide with the
conditions as well. If the quality and trend of service go beyond customers
expectation, the organization is supposed to have a good business with
customers.
Scope of CRM

Advantages of CRM
Provide better customer service increased customer revenues
Discover new customers
Cross sell and up-sell products more effectively
Help sales staff close deals faster
Make call centers more efficient
Simplify marketing and sales processes
Disadvantages of CRM
Some time record loss is major problem
Overhead costs
Giving training to employees is issue in small organizations

Decision Support System (DSS)

Introduction:-
In the 1970s a number of business organization began developing
Information Systems, which are significantly different from the information
systems then in use.
The new systems were interactive and were designed to help specific end
users utilize data and models to discuss & divide not solve- semi-structured and
unstructured problems these systems were called the Decision Support System the
end 1980s was extended to groups and entire organizations.
The Decision Support Systems were interactive information system, that rely
on an integrated set of user-friendly hardware & software tools to produce and
present information that is targeted to support management in the decision-making
process.
OR
Decision support systems are interactive software-based systems intended to
help managers in decision making by accessing large volume of information
generated from various related information systems involved in organizational
business processes, like, office automation system, transaction processing system
etc. It was extended to groups and entire organizations by the end of 1980s.
The Decision support systems assist management decision-making by
combining data, sophisticated analytical models and user-friendly software into a
single powerful system that can support semi-structured or unstructured decision
making. The DSS is under user control, from early inception to final
implementation and daily use. Decision support systems helps to close the
information gap to enable manager to improve quality of their decision.

While MIS is considered useful for structured decisions, Decision support

systems is considered to be more useful for decisions at the Strategic levels, where
decision makers are often confronted with complex decisions which are beyond
their human abilities to synthesize properly the factors involved.
The decision makers compile useful information from raw data, documents,
personal knowledge, and/or business models to identify and solve problems and
make decisions. Decision support systems generally involve non-programmed
decisions.Therefore,there will be no exact report, content or format for these
systems reports are generated on the fly.
Components of a DSS
The DSS has three basic components
1. The Database
2. A Model Base &
3. DSS Software System
1) The Database:-
The DSS database is a collection of current or historical data from a number

of application groups. It is organized in such a manner that it provides easy access
for a range of applications. Adequate precaution is taken to ensure the data
integrity while controlling the processing that keeps the data current. DSS do not
create or update data, but rather use live organizational data so that the decisions
could be taken based upon actual conditions. It would also be imperative to
remember that most DSS dont have direct access to organizational data but
usually use data that have been extracted from relevant databases-both internal &
external and stored specifically for the DSS.
2) The Model Base

A Model is an abstract representation that illustrates the components or
relationships of a phenomenon. A model can be physical model, a mathematical

model or a verbal model. DSS can mane use of different types of models. The
models could be broadly classified into three types as follows
Decision
Support System
Behavioural Management Operations

Model Science Model Research Model
a) Behavioural Model:-
The focus of behvioural Model of DSS is on
studying/understanding the behavior and trends among the business variables. The
decision maker can then make decisions giving due regard to such behavioural
relationships. The trend analysis, forecasting and the statistical analysis models
belong to this category. The trend analysis indicates how different variables behave
in trend setting in past & future. A regression model shows relation between one or
more variables. These types of models are largely used in process control,
marketing, psychology, agricultural, sciences, manufacturing.
b) Management Science Model:-

These models are developed on the principles of business
management, accounting and econometrics. In management areas the
improved methods of management control are available which can be

used for the management decisions. Some of the management systems

can be converted into the decision support system models.
E. g. Cost Accounting System, Budgetary System, Production Planning &
Control, Manpower Planning & forecasting etc.
c) Operations Research Model:-
The Operations Research Model are mathematical model. These
models represent a real life problems situation in terms of the variables,
constants and parameters expressed in algebraic equations.
E.g. Linear Programming, Mathematical Programming Techniques, ABC
Analysis etc.
Characteristics of a DSS
1. Support for decision makers in semi structured and unstructured problems.
2. Support for managers at various managerial levels, ranging from top
executive to line managers.
3. Data access
4. Support for individuals and groups. Less structured problems often requires
the involvement of several individuals from different departments and
organization level.
5. Support for interdependent or sequential decisions.
6. Support for intelligence, design, choice, and implementation.
7. Support for variety of decision processes and styles
8. DSSs are adaptive over time.
Benefits of DSS
Improves efficiency and speed of decision making activities
Increases the control, competitiveness and capability of futuristic decision

making of the organization
Facilitates interpersonal communication

Encourages learning or training

Since it is mostly used in non-programmed decisions, it reveals new
approaches and sets up new evidences for an unusual decision
Helps automate managerial processes
Difference between MIS & DSS
Sr. MIS DSS
No.
1 Structured Decision Semi-structured & Unstructured
Decisions
2 Reports based on routine flow of Focused on specific decisions or
data classes of decisions.
3 MIS are regular and recurring The need of DSS can be irregular
4 MIS places emphasis on efficiency DSS provides strategic information
of decision
5 Structured information flows Emphasizes change, flexibility, quick
responses.
6 Presentation in form of reports Presentation in form of graphics
7 Traditional systems development Develop through prototyping iterative
process.
Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classify DSS in
following:
Text Oriented DSS: It contains textually represented information that could
have a bearing on decision.It allows documents to be electronically created, revise
and viewed as needed
Database Oriented DSS: Database plays a major role here; it contains
organized and highly structured data.

Spreadsheet Oriented DSS: it contains information in spread sheets that

allows create, view, modify procedural knowledge and also instruct the system to
execute self-contained instructions.The most popular tool is Excel and Lotus 1-2-3.
Solver Oriented DSS: it is based on a solver, which is an algorithm or
procedure written for performing certain calculations and particular program type.
Rules Oriented DSS: It follows certain procedures adopted as rules.
Rules Oriented DSS: Procedures are adopted in rules oriented DSS. Export
system is the example.
Compound DSS: It is built by using two or more of the five structures
explained above
Types of DSS
Following are some typical DSSs:
Status Inquiry System: helps in taking operational management level or
middle level management decisions, for example daily schedules of jobs to
machines or machines to operators.
Data Analysis System: needs comparative analysis and makes use of
formula or an algorithm,for example cash flow analysis,inventory analysis etc.
Information Analysis System: In this system data is analyzed and the
information report is generated.For example,sales analysis,accounts receivable
systems,market analysis etc.
Accounting System:keep tracks of accounting and finance related
information,for example,final account,accounts receivables,accounts payables etc.
that keep track of the major aspects of the business.
Model Based System: Simulation models or optimization models used for
decision- making used infrequently and creates general guidelines for operation or
management.

Knowledge Management System (KMS)

All the systems which discussing here comes under knowledge management
category. A knowledge management system is not radically different from all these
information systems, but it just extends the already existing systems by
assimilating more information.
Data is raw facts, information is processed and/or interpreted data and
knowledge is personalized information.
What is knowledge?
Personalized information
State of knowing and understanding
An object to be stored and manipulated
A process of applying expertise
A condition of access to information
Potential to influence action
Sources of Knowledge of an Organization
Intranet
Data warehouses and knowledge repositories
Decision support tools
Groupware for supporting collaboration
Networks of knowledge workers
Internal expertise
The Internet (URLs)
CRM database
ERP database
E-mails , Instant messaging , Voice mail , faxes
Suppliers systems ,Customers systems

Definition of KMS
Knowledge Management comprises a range of practices used in an
organization to identify, create represent distribute and enable adoption to insight
and experience. such insights and experience comprise knowledge, either
embodied in individual or embedded in organizational processes and practices.
OR
Knowledge management (KM) is the process of capturing, developing,

sharing, and effectively using organizational knowledge. It refers to a multi-
disciplined approach to achieving organizational objectives by making the best use
of knowledge
OR
A method for the improvement of business process performance. A
knowledge management system is most often used in business in applications such
as information systems, business administration, computer science, public
policy and general management. Common company departments for knowledge
management systems include human resources, business strategy and information
technology.
Knowledge management efforts typically focus on organizational

objectives such as improved performance, competitive advantage, innovation, the
sharing of lessons learned, integration and continuous improvement of the
organization. KM efforts overlap with organizational learning and may be
distinguished from that by a greater focus on the management of knowledge as a
strategic asset and a focus on encouraging the sharing of knowledge. It is an
enabler of organizational learning.

Purpose/Objective of a KMS
The purpose of the Knowledge Management process is to share perspectives,
ideas, experience and information; to ensure that these are available in the right
place at the right time to enable informed decisions; and to improve efficiency by
reducing the need to rediscover knowledge.
The objectives/Purpose of Knowledge Management are to:

Improve the quality of management decision-making by ensuring that
reliable and secure knowledge, information and data is available through the
service lifecycle.
Enable the service provider to be more efficient and improve quality of
service, increase satisfaction and reduce the cost of service by reducing the
need to rediscover knowledge .
Ensure that staff have a clear and common understanding of the value that
their services provide to customers and the ways in which benefits are
realized from the use of those services .
Maintain a Service Knowledge Management System (SKMS) that
provides controlled access to knowledge, information and data that is
appropriate for each audience .
Gather, analyze, store, share, use and maintain knowledge, information
and data throughout the service provider organization
Activities in Knowledge Management

Start with the business problem and the business value to be delivered first.
Identify what kind of strategy to pursue to deliver this value and address the
KM problem
Think about the system required from a people and process point of view.
Finally, think about what kind of technical infrastructure are required to
support the people and processes.
Implement system and processes with appropriate change management and

literative staged release.
Level of Knowledge Management

Executive Support System (ESS)

Executive support systems are intended to be used by the senior managers
directly to provide support to non-programmed decisions in strategic
management.or it is also called as Executive Information System(EIS) EIS/ESS is
a relatively new decision-failitating technology. EIS/ESS has emerged in response
to the emerging dynamic situation where the Top Executives are bombared with
the huge amount of data, efficiently leading to Information overload with the
resultant understandable confusion and dilemma.
Meaning/Definition of EIS/ESS
EIS/ESS is in a way, socialized DSS that includes all hardware, software,
data procedures and people used to assists senior/top level executives within the
organization. The primary goad of EIS/ESS is to obtain data from a variety of
sources, integrate and aggregate that data and display the resluting information in
an easy to use comprehensible format.
Meaning/Definition of EIS
An EIS is a computer-based syste that serves the information needs of Top
Executives. It provides rapid access to timely information and direct access to
Management Reports. It is very user-friendly and is supported by graphics,
providing Exception Reporting and Drill down capabilities & it can also be easily
connected with online information services and electronic mail
OR
An EIS is a computer based information system that combines the
decision-makers imagination and judgment with the computers ability to store,
retrieve, manipulate, compute and report internal and external informations.
Meaning/Definition of ESS

An ESS is a Comprehensive executive support system that goes beyond the

EIS to include communications, office automation, analysis support & intelligence.
These information are often external, unstructured and even uncertain. Exact
scope and context of such information is often not known beforehand. This
information is intelligence based:
Market intelligence
Investment intelligence
Technology intelligence
Examples of Intelligent Information

Following are some examples of intelligent information, which is often
source of an ESS:
External databases
Technology reports like patent records etc.

Technical reports from consultants
Market reports
Confidential information about competitors
Speculative information like market conditions

Government policies
Financial reports and information
Why EIS/ESS:-
EIS/ESS emerged , indeed the emergence became imperative, due to various
factors both internal & external, obtaining in the corporate operating environment
world-wide.
According to Watson and others EIS/ESS has become imperative(vital/
authorities command) due to certain internal & External factors as follows:-
Internal Factors
Need for Rapid status updated on various business activities.

Need for more accurate information
Need for improved communication
Need for timely information
Need for access to corporate database
Need for access to operational data
Need for ability to identify historical trends
External Factors
Rapidly changing business environment
Need to more Pro-active
Need to access external database
Increased and intensifying global competition
EIS/ESS is developed to support decision-making actions/proesses at the Top

Executive/Management Level. EIS/ESS is used by the Top Executives as they
require specialized support when/while making strategic decisions. EIS/ESS is
required and used at fairly senior level including members of the Board of
Directors and executives with the titles of CEO, COO(Chief Operations/Operating
Officer), CFO(Chief Finance Officer) etc.
Features/ Characteristics of EIS/ESS
The EIS/ESS have an broad characteristics & therefore for the sake of
convenience it could be divided into three categories:-
a) Informational Characteristics
b) User-Interface/Orientation Characteristics
c) Managerial/ Executive Characteristics.
a) Informational Characteristics:-
Produce Correct Information.
Produce Relevant Information

Produce Validated information

Flexibility and ease of use
Provides timely information with short response time & quick retrieval
b) User-Interface/Orientation Characteristics
Facilitates access from many places
Provides secure, reliable and confidential access and access procedure.
Contains sophisticated Self-help , user friendly interfaces including
Graphic User Interface(GUI)
Is customized tailor-made to suit the management style of individual
executives.
c) Managerial/ Executive Characteristics:-
Supports the need/access for/to the External Data/Database

Provides support for Strategic Management (Strategic Planning/
Organising/Control/Staffing etc)
Provides supoort for defining overall Vision, Mission and Strategy as it has a
Strategic/futuristics orientation
Can Help with the situation that have a high degree of risk/uncertainty
Is Linked with value-added business processes.
Has capabilities like Dril Down, Exception Reporting and Critical
Success Factors identification.
Has a high Result/performance Orientation.
Advantages/Benefits of EIS/ ESS:

Easy for upper level executive to use
Ability to analyze trends
Augmentation of managers' leadership capabilities
Enhance personal thinking and decision making

Contribution to strategic control flexibility

Enhance organizational competitiveness in the market place
Instruments of change
Increased executive time horizons.
Better reporting system

Improved mental model of business executive
Help improve consensus building and communication
Improve office automation
Reduce time for finding information

Early identification of company performance
Detail examination of critical success factor
Better understanding
Time management
Increased communication capacity and quality
Disadvantage of ESS
Functions are limited
Hard to quantify benefits
Executive may encounter information overload
System may become slow
Difficult to keep current data
May lead to less reliable and insecure data
Excessive cost for small company

Business Intelligence System (BIS)

The term 'Business Intelligence' has evolved from the decision support systems and
gained strength with the technology and applications like data warehouses,
Executive Information Systems and Online Analytical Processing (OLAP).
Business Intelligence System is basically a system used for finding patterns from
existing data from operations.
Characteristics of BIS
It is created by procuring data and information for use in decision-making
It is a combination of skills, processes, technologies, applications and
practices
It contains background data along with the reporting tools
It is a combination of a set of concepts and methods strengthened by fact-
based support systems
It is an extension of Executive Support System or Executive Information
System
It collects, integrates, stores, analyzes, and provides access to business
information
It is an environment in which business users get reliable, secure,
consistent, comprehensible, easily manipulated and timely information
It provides business insights that lead to better, faster, more relevant
decisions
Benefits of BIS
Improved Management Processes
Planning, controlling, measuring and/or applying changes that results in
increased revenues and reduced costs
Improved business operations

Fraud detection, order processing, purchasing that results in increased

revenues and reduced costs
Intelligent prediction of future
Approaches of BIS:
For most companies it is not possible to implement a proactive business
intelligence system at one go. The following techniques and methodologies could
be taken as approaches to BIS:
Improving reporting and analytical capabilities
Using scorecards and dashboards
Enterprise Reporting
On-line Analytical Processing (OLAP) Analysis
Advanced and Predictive Analysis
Alerts and Proactive Notification
Automated generation of reports with user subscriptions and "alerts" to
problems and/or opportunities
Capabilities of BIS
Data Storage and Management:
Data ware house
Ad hoc analysis
Data quality
Data mining
Information Delivery
Dashboard
Collaboration /search
Managed reporting
Visualization
Scorecard
Query, Reporting and Analysis

Ad hoc Analysis
Production reporting
OLAP analysis
Supply Chain Management (SCM)

Definition and Meaning of SCM
Supply chain management is the systemic, strategic coordination of the
traditional business functions and tactics across these business functions - both
within a particular company and across businesses within the supply chain- all
coordinated to improve the long-term performance of the individual companies and
the supply chain as a whole.
In a traditional manufacturing environment, supply chain management meant

managing movement and storage of raw materials, work-in-progress inventory, and
finished goods from point of origin to point of consumption.
It involves managing the network of interconnected smaller business units,
networks of channels that take part in producing a merchandise of a service
package required by the end users or customers.
With businesses crossing the barriers of local markets and reaching out to a global
scenario, SCM is now defined as:
Design, planning, execution, control, and monitoring of supply chain
activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with demand
and measuring performance globally.
SCM consists of:
operations management
logistics
procurement

information technology
integrated business operations
Objective of SCM
To decrease inventory cost by more accurately predicting demand and

scheduling production to match it.
To reduce overall production cost by streamlining production and by

improving information flow.
To improve customer satisfaction.
Feature of SCM

Scope of SCM
SCM Processes
Customer Relationship Management
Customer Service Management
Demand Management
Customer Order Fulfillment
Manufacturing Flow Management
Procurement Management
Product Development and Commercialization

Returns Management
Advantages of SCM
SCM have multi-dimensional advantages:
To the suppliers:
Help in giving clear-cut instruction
Online data transfer reduce paper work
Inventory Economy:
Low cost of handling inventory
Low cost of stock outage by deciding optimum size of

replenishment orders
Achieve excellent logistical performance such as just in time
Distribution Point:
Satisfied distributor and whole seller ensure that the right products
reach the right place at right time
Clear business processes subject to fewer errors
Easy accounting of stock and cost of stock
Channel Management:
Reduce total number of transactions required to provide product

assortment
Organization is logically capable of performing customization

requirements

Financial management:
Low cost
Realistic analysis
Operational performance:
It involves delivery speed and consistency.
External customer:
Conformance of product and services to their requirements
Competitive prices
Quality and reliability
Delivery
After sales services
To employees and internal customers:
Teamwork and cooperation
Efficient structure and system
Quality work
Delivery

Management Information System
Chapter IV
Introduction of MIS
MIS is popularly known as the Management Information System.
MIS is considered as one such method of generating information which is used
by management of organization for decision Making, control of activities,
operations etc.
During the period 1940 to 1960 computers were commercially used
for census and payroll work. This involved large amount of data and its
processing. Since then the commercial application exceeded the scientific
applications for which the computer were mainly intended for.
MIS is an information System which helps in providing the
management of an organization with information which is used by management
for decision making.
MIS is all about using information for discharging among others the
management functions of initiating, planning, organizing, forecasting, staffing,
directing, coordinating and controlling.MIS is a tool for better management and
scientific decision-making. MIS helps in providing right information, in right
quantity, to right person/s (managers), at right time.
Management Information System is an implementation of the
organizational systems and procedures.
The three components in MIS gives a more complete and focused
definition, where System suggests integration and holistic view, Information
stands for processed data and Management is the ultimate user, the decision
makers.
Management information system can thus be analyzed as:
Management:
Management covers the planning, control, and administration of the
operations of a concern. The top management handles planning; the middle
management concentrates on controlling; and the lower management is
concerned with actual administration
OR
Management can be defines as a science of using resources rationally
(mobilization, allocation, combination, utilization of resources in judicious
manner using appropriate skills, approaches and techniques) and economically to
achieve the desired results or meet the targeted performance level
Information
Information, in MIS, means the processed data that helps the management
in planning, controlling and operations. Data means all the facts arising out of the
New Satara College of BCA, Pandharpur 1 Prof. Kirpekar R.R.

operations of the concern. Data is processed i.e. recorded, summarized, compared

and finally presented to the management in the form of MIS report.
Information is data that has been processed into a form that is meaningful
to the recipient and is of real or perceived value in current or progressive
decision
Davis and Olson
A data processing system processes data to generate information. The quality
of information determines the quality of action or decision.
The data information cycle can be expressed as
Idea
Intelligence
Data
Knowledge Information
Information has come to occupy very important position in the survival of

business
The source and destination for any information can be International,
National, Industry, Corporate, Department and Individual.
System
Data is processed into information with the help of a system. A system is
made up of inputs, processing, output and feedback or control.
OR
A system can be defined as a group of inter-related, often interacting
units that together perform a task in a synchronized manner to provide the
desired result
Solar system: The sun and the celestial bodies that revolve around it.
Capitalist Market System: Set of inter-related ideas and principles
A business is also a system where resources such as people, money,
material, machines etc., are transformed by various organization processes
into goods and services.
Thus MIS means a system for processing data in order to give proper
information to the management for performing its functions

Definition of MIS
Management Information System, 'MIS' is a planned system of collecting,
storing and disseminating data in the form of information needed to carry out the
functions of management.
OR
A management information system (MIS) provides information that
organizations require to manage themselves efficiently and effectively.
Management information systems are typically computer systems used for
managing. The six primary components of an MIS are:
1. Hardware
2. Software
3. Data (information for decision making),
5. Procedures (design, development and documentation), and
6. People (individuals, groups, or organizations).
OR
A computer based information system for providing management
with accurate timely information necessary for decision making. It is a planned &
integrated system for gathering relevant data, converting it in to right information
& supplying the same to the concern executives/manager.
OR
According to David J. Olson, A Management Information System is an
integrated user machine system for providing information to support the
operations, management, analysis and decision-making functions in an
organisation.
Needs of MIS:
Managers play a key role in any organization. They are responsible for
taking decisions appropriate to the need of the market. Information systems have
become the main tool used by managers in decision making. Managers perceive
information as the driving force to achieve success in any business. Hence there
is a need for MIS as:
Support of its business process and operations
Support of decision making by its employees and managers
Support of its strategies for competitive advantage-Gaining a
strategic advantage
The major roles of the business applications of a Management
Information
Objectives of MIS
Goals of an MIS are to implement the organizational structure
and dynamics of the enterprise for the purpose of managing the organization in a

better way and capturing the potential of the information system for competitive
advantage.
Following are the Basic objectives of an MIS:
Capturing Data: capturing contextual data, or operational information that will
contribute in decision making from various internal and external sources of
organization
Processing Data: the captured data is processed into information needed for
planning, organizing, coordinating, directing and controlling functionalities at
strategic, tactical and operational level. Processing data means:
Making calculations with the data
Sorting data
Classifying data and
Summarizing data
Information Storage: information or processed data need to be stored for future
use.
Information Retrieval: the system should be able to retrieve this information
from the storage as and when required by various users.
Information Propagation: information or the finished product of the MIS should
be circulated to its users periodically using the organizational network.
Nature & Scope of MIS:
Accounting is meant for monitoring, Controlling the organizational

performance and initiating course corrective action whenever/whenever required.
Accounting also provides specific information, cost etc. about various activities

which can be made use for analytical and decision making activities. Thus
Accounting is useful and is made use of in MIS.
Management Techniques and principles are inseparable part of decision
making. They explain the dynamics of decision making process, specify
management functions at various levels and thereby facilitate development of
MIS.
MIS has to be developed and implemented in an oraganizational context.

Organizatioal Theory/ Behavioural Science enable MIS professional to
understand organisations, their types, cultures and behaviour. These are valuable
inputs as the success of MIS would depend on how it adopts to the specific
orgnisational requirements. E. g. MIS perception in a proprietary firm, family
owned company, Government Corporation or A multi national enterprise is
certainly different. Hence MIS also draws heavily upon the Organisational
Behaviour/ Behavioural Sciences Theory.
Decision Making today involves extensive use of mathematical and

statistical techniques Model Building, creating scenarios, forecasting all these
activities involve mathematical /statistical techniques. These techniques,
embodies in Operational Research which is using statistics and mathematicas
for arriving at an optimal solution-are made use of in MIS.
MIS is today based on Computers. It is then no wonder that MIS makes
extensive use of computer science and technology for data storage, processing,
manipulation, retrieval etc. due to the speed and processing capabilities an
memory size of the computer.
As MIS cannot be developed without making use of the various theories,

principles, formulae, MIS is viewed as a Multi-disciplinary Subject
Features of MIS:
It should be based on a long-term planning.
It should provide a holistic view of the dynamics and structure of the
organization.
It should work as a complete and comprehensive system covering all
interconnecting sub-systems within the organization.
It should be planned in a top-down way, as the decision makers or the
management should actively take part and provide clear direction at the
development stage of the MIS.
It should be based on need of strategic, operational and tactical information
of managers of an organization.

It should also take care of exceptional situations by reporting such situations.

It should be able to make forecasts and estimates, and generate advanced
information, thus providing a competitive advantage. Decision makers can
take actions on the basis of such predictions.
It should create linkage between all sub-systems within the organization, so
that the decision makers can take the right decision based on integrated view.
It should allow easy flow of information through various sub-systems, thus
avoiding redundancy and duplicity of data. It should simplify the operations with
as much practicability as possible.
Although the MIS is an integrated, complete system, it should be made in
such a flexible way that it could be easily split into smaller sub-systems as and
when required.
A central database is the backbone of a well-built MIS.
Characteristics of Good MIS

Management information systems (MIS) is an organized approach to
gathering information from company operations and making a strategic
management decision. Developing quality characteristics for gathering
information is essential to making solid management decisions.
1. Relevance
Information should be relevant to the strategic decision that
company management is currently reviewing. Because companies may review
several business opportunities at one time, avoiding information not relating to
the decision is essential.
2. Accurate
MIS information should be accurate and avoid any inclusions of
estimates or probable costs. Making decisions based on estimates can lead to cost
overruns or lower profits from future operations.
3. Timely
Many management decisions are based on information from a
certain time period, such as quarterly or annual periods. Information outside of
the requested time frame may skew information and lead to an improperly
informed decision.
4. Exhaustive
MIS information gathering should resemble an upside-down
triangle. The early stages of information gathering should be exhaustive,
including all types of company information. As management narrows its
decision-making process, the information is refined to include only the most
relevant pieces.

5. Cost-Effective
The MIS needs to be a cost-effective and efficient system for gathering
information. Most of these systems are developed internally, creating costs that
cannot be passed to clients.
Characteristics of Computerized MIS

Following are the characteristics of a well-designed computerized MIS:
It should be able to process data accurately and with high speed, using
various techniques like operations research, simulation, heuristics etc.
It should be able to collect, organize, manipulate and update large amount
of raw data of both related and unrelated nature, coming from various internal
and external sources at different periods of time.
It should provide real time information on ongoing events without any
delay.
It should support various output formats and follow latest rules and
regulations in practice.
It should provide organized and relevant information for all levels of
management: strategic, operational and tactical.
It should aim at extreme flexibility in data storage and retrieval.
ADVANTAGES OF MIS
MIS is a process of collection and storing of the data useful for
the organization. The following points can summarize the importance of MIS :-
1. It facilitates Planning : MIS improves the quality of plans by providing
relevant information for sound decision making. Due to increase in the
size and complexity of organizations, managers take help of information
systems to know about the status of operations.
2. In minimizes Information overload : MIS change the larger amount of
data in to summarized form and there by avoids the confusion which may
arise when managers are flooded with detailed facts.
3. MIS encourages De-centralization : Decentralization of authority is
possibly when there is a system for monitoring operations at lower levels.
MIS is successfully used for measuring performance and making necessary
change in the organizational plans and procedures.
4. It brings Co-ordination : MIS facilities integration of specialized
activities by keeping each department aware of the problem and
requirements of other departments. It connects all decision centers in the
organization.

5. It makes control easier : MIS serves as a link between managerial

planning and control. It improves the ability of management to evaluate
and improve performance. The used computers has increased the data
processing and storage capabilities and reduced the cost.
6. MIS assembles, process , stores , Retrieves , evaluates and Disseminates
the information.
7. It helps in minimizing risk in decision making.
8. It helps the executives to avail the information regarding the functional
areas quickly.
9. It processes the data and derives information out of them & helps in
preparing corporate report.
DISADVANTAGES OF MIS
MIS enhances the overall throughput of the organization. But it has certain
limitations :
The qualities of the outputs of MIS are basically governed by the qualities
of inputs and processes.
It may not have requisite flexibility to quickly update itself with the
changing needs of time, especially in a fast changing and complex
environment.
MIS effectiveness decreases due to frequent changes in top management,
organizational structure and operational team.
It can not replace managerial judgment in making decisions in different
functional areas.
Functions of MIS
The prime objective to set up MIS in an organization is to use the
management information by its managers for decision-making. Thus, MIS needs
to perform the following functions to meet its objective:
Capturing data : MIS performs usage of data whether manual or through

computer terminals by using several internal and external springs of an
association . The data related to transactions that take place in the
organization is stored in some physical medium such as a paper form or
entering it directly into a computer system by the end users.
Processing data : Processing data includes converting the captured data
into the required management information . To process the data, you need

to perform various activities such as calculating, comparing, sorting,

classifying and summarising the data. These data processing activities
organise, mathematical, operations research and other business models.
Information storage : MIS saves the less frequently used information as
an organisational record and thus stores the processed or unprocessed data
for future use. While performing this storage activity , data and
information are reserved and organised in the form of fields, records , files
and databases for future use.
Information retrieval : Information retrieval includes retrieving the stored
information as per the requirements of the management users . In such
cases, the retrieved information is used or is processed again to meet the
exact management information demands.
Disseminating management information: Disseminating management
information, which is a finished product of MIS is divided and distributed
to the users in an organization. This information could be periodic, through
reports or online through computer terminals.
MIS Development Process

In MIS, the information is recognized as major resource like capital and
time. If this resource has to be managed well, it calls upon the management to
plan for it and control it, so that the information becomes a vital resource for the
system.
The management information system needs good planning.

This system should deal with the management information not with data
processing alone.
It should provide support for the management planning, decision making
and action.
It should provide support to the changing needs of business management.
Major challenges in MIS implementation are:
Quantity, content and context of information - how much information and
exactly what should it describe

Nature of analysis and presentation - comprehensibility of information

Availability of information - frequency, contemporariness, on-demand or
routine, periodic or occasional, one-time info or repetitive in nature and so on
Accuracy of information
Reliability of information
Security and Authentication of the system.
Planning for MIS
MIS design and development process has to address the following issues
successfully:
There should be effective communication between the developers and

users of the system
There should be synchronization in understanding of management,

processes and IT among the users as well as the developers
Understanding of the information needs of managers from different

functional areas and combining these needs into a single integrated system

Creating a unified MIS covering the entire organization will lead to a more
economical, faster and more integrated system, however it will increase in design
complexity manifold.
The MIS has to be interacting with the complex environment comprising

all other sub-systems in the overall information system of the organization. So it
is extremely necessary to understand and define the requirements of MIS in the
context of the organization
It should keep pace with changes in environment, changing demands of the

customers and growing competition
It should utilize fast developing in IT capabilities in the best possible way
Cost and time of installing such advanced IT-based systems is high, so

there should not be a need for frequent and major modifications
It should take care of not only the users i.e., the managers but also other
stakeholders like employees, customers and suppliers

Once the organizational planning stage is over, the designer of the system
should take the following strategic decisions for the achievement of MIS goals
and objectives:
Development Strategy: Ex. an online, batch, a real time.
System Development Strategy: Designer selects an approach to system

development like operational verses functional, accounting verses analysis.

Resources for the Development: Designer has to select resources.
Resources can be in-house verses external, customized or use of package.
Manpower Composition: The staff should have the staffs of an analyst, and
programmer.
Information system planning essentially involves:
Identification of the stage of information system in the organization
Identification of the application of organizational IS.
Evolution of each of this application based on established evolution
criteria.
Establishing a priority ranking for these application
Determining the optimum architecture of IS for serving the top priority
applications.
Information System Requirements

The following diagram illustrates a brief sketch of the process of
information requirement analysis:

The following three methodologies can be adopted to determine the requirements

in developing a management information system for any organization:
Business Systems Planning (BSP) - this methodology is developed by

IBM.
It identifies the IS priorities of the organization and focuses on the

way data is maintained in the system.
It uses data architecture supporting multiple applications.
It defines data classes using different matrices to establish

relationships among the organization, its processes and data
requirements
Critical Success Factor (CSF) - this methodology is developed by John
Rockart of MIT.
It identifies the key business goals and strategies of each manager as
well as that of the business
Next it looks for the critical success factors underlying these goals
measure of CSF effectiveness becomes an input for defining
information system requirements
End/Means (E/M) analysis - this methodology is developed by Wetherbe
and Davis at the University of Minnesota.
It determines the effectiveness criteria for outputs and efficiency
criteria for the processes generating the outputs

At first it identifies the outputs or services provided by the business

processes
Then it describes the factors that make these outputs effective for the
user
Finally it selects the information needed to evaluate the effectiveness
of outputs
Information System Analysis & Design
System analysis and design follows the typical System/Software Design
Life Cycle (SDLC) generally passes through the following phases:
Problem Definition
Feasibility Study
Systems Analysis
System Design
Detailed System Design
Implementation
Maintenance
In the analysis phase, the following techniques are commonly used:
Data flow diagrams (DFD)
Logic Modeling
Data Modeling
Rapid Application Development (RAD)
Object Oriented Analysis (OOA)
Technology for Information Systems
The technology requirement for an information system can be categorized as:
Devices
Data center systems - it is the environment that provides processing, storage,
networking, management and the distribution of data within an enterprise
Enterprise software - these are software system like ERP, SCM, Human Resource
Management etc. that fulfills the needs and objectives of the organizations

IT services - it refers to the implementation and management of quality IT services

by IT service providers through people, process and information technology. It often
includes various process improvement frameworks and methodologies like TQM,
Telecom services and so on
System Test Planning & Execution
The system should be fully tested for errors before being fully operational.
The test plan should include for each test:
Purpose
Definition
test inputs
detailed specification of test procedure
details of expected outputs
Each sub-system and all components of each sub-system should be tested using
the various test procedures and data to ensure that each component is working as
it is intended.
The testing must include the users of the system to identify errors as well as get
the feedback.
System Operation
Before the system is in operation, the following issues should be taken care of:
Data security, backup and recovery
Systems control
Testing of the system to ensure that it works bug-free in all expected
business situations
The hardware and software used should be able to deliver the expected
processing
The system capacity and expected response time should be maintained
The system should be well documented including
A user guide for inexperienced users
A user reference or operations manual for advanced users

A system reference manual describing system structures and

architecture
Once the system is fully operational, it should be maintained throughout its

working life to resolve any glitches or difficulties faced in operation and minor
modifications might be made to overcome such situations.
Factors for Success and Failure

MIS development projects are high-risk, high-return projects. Following could be
stated as critical factors for success and failure in MIS development:
It should cater to a specific, well-perceived business
The top management should be completely convinced, able and willing to

such a system. Ideally there should a patron or sponsor for the system in the top
management.
All users including managers and other employees should be made an

integral part of development, implementation and use of the system
There should be an operational prototype of the system released as soon as

possible, to create interest among the users.
There should be good support staff with necessary technical, business, and
interpersonal skills
The system should be simple, easy to understand without adding much

complexity. It is best practice, not to add up an entity unless there is both a use
and user for it.
It should be easy to use and navigate with high response time.
The implementation process should follow a definite goal and time
There should be proper training of all users including the top management,
so that they have a good knowledge of the content and function of the system and
can use it fully for various managerial activities like reporting, budgeting,
controlling, planning, monitoring etc.
It should and must produce useful outputs to be used by all managers.
The system should be well integrated into the management processes of

planning, decision-making, and monitoring.

Chapter 5
System Vulnerability
System Vulnerability and Abuse
Security: Policies, procedures and technical measures to prevent
unauthorized access, alteration, theft, or physical damage
Controls: Methods, policies, and organizational procedures ensure
safety of organizations assets; accuracy and reliability of accounting
records; and operational adherence to management standards
Vulnerability through technical, organizational and environmental factors,
poor management decisions, communication layers
Accessibility of networks
Hardware problems (breakdowns, configuration errors, damage from
improper use or crime)
Software problems (programming errors, installation errors,
unauthorized changes)
Disasters (fires, floods.)
Use of networks/computers outside of firms control
Loss and theft of portable devices
Internet vulnerabilities
Network open to anyone, Size: abuses can have wide impact
Use of fixed Internet addresses creates fixed targets hackers
Unencrypted VOIP(Voice Over Internet Protocol) (no use of VPN-Virtual
Private Network)
E-Mail, P2P(Network Peer to Peer), IM: Interception, Attachments with
malicious software, Transmitting trade secrets

Wireless security challenges

Radio frequency bands easy to scan
SSIDs (service set identifiers): Identify access points, Broadcast multiple
times
War driving: Eavesdroppers drive by buildings and try to detect
SSID and gain access to network and resources, set up rogue access
points
WEP (Wired Equivalent Privacy) WPA2 (WiFi Protected Access)
o Security standard for 802.11; use is optional
o Uses shared password for both users and access point
Malware (malicious software)
Viruses: Rogue software program that attaches itself to other software
programs or data files in order to be executed, deliver payload, spread
through humans
Worms: Independent computer programs that copy themselves
from one computer to other computers over a network
Trojan horses: Software program that appears to be benign but
then does something other than expected, does not replicate
Computers, mobile devices, web 2.0 applications
SQL injection attacks: Hackers submit data to Web forms that
exploits sites unprotected software and sends rogue SQL query to
database
Spyware: Small programs install themselves surreptitiously on
computers to monitor user Web surfing activity and serve up
advertising
Key loggers: Record every keystroke on computer to steal serial
numbers, passwords, launch Internet attacks
Hackers and computer crime

Hackers vs. crackers (criminal intent): unauthorized access, weakness
in security protections
System intrusion + System damage
Cybervandalism: Intentional disruption, defacement, destruction of
Web site or corporate information system
Spoofing
o Misrepresenting oneself by using fake E-mail addresses or
masquerading as someone else

o Redirecting Web link to address different from intended one,

with site masquerading as intended destination
Sniffer
o Eavesdropping program that monitors information
traveling over network
o Enables hackers to steal proprietary information such as e--mail,
company files, etc.
o
Denial--of--service attacks (DoS): Flooding server with thousands of
false requests to crash the network.
Distributed denial--of--service attacks (DDoS): Use of numerous
computers to launch a DoS
Botnets: Networks of zombie PCs infiltrated by bot malware
Computer crime: any violations of criminal law that involve a

knowledge of computer technology for their perpetration,
investigation, or prosecution
o Computer may be target of crime, e.g.: Breaching
confidentiality of protected data, Accessing a computer
system without authority
o Computer may be instrument of crime, e.g.: Theft of trade secrets,
Using E mail for threats or harassment
Identity theft: Theft of personal Information (social security id, drivers
license or credit card numbers) to impersonate someone else
Phishing: Setting up fake Web sites or sending e--mail messages that
look like legitimate businesses to ask users for confidential personal
data.
Evil twins: Wireless networks that pretend to offer
trustworthy Wi--Fi connections to the Internet (e.g log credit
card numbers)
Pharming: Redirects users to a bogus Web page, even when
individual types correct Web page address into his or her browser
(possible when they gain access to the Internet Address Information
stored by internet service providers to speed up web browsing and the
ISP companies have flawed software in their servers, hack into and
change addresses)

Click fraud: Occurs when individual or computer program fraudulently
clicks on online ad without any intention of learning more about the
advertiser or making a purchase
Global threats: Cyber terrorism and Cyber warfare, targeting software
that runs electrical power grids, air traffic control systems, networks of
major banks
Internal threats: employees

Security threats often originate inside an organization leaking Inside
knowledge
Sloppy security procedures, User lack of knowledge
Social engineering: Tricking employees into revealing their
passwords by pretending to be legitimate members of the company
in need of information
End users entering faulty data, not following instructions
IS specialists: errors in design, development, maintenance
Software vulnerability
Commercial software contains flaws that create security vulnerabilities
Hidden bugs (program code defects), Zero defects cannot be
achieved because complete testing is not possible with large
programs
Flaws can open networks to intruders, impede performance
Patches: Vendors release small pieces of software to repair flaws
(patch management by users), However exploits often created faster
than patches be released and implemented
Business Value of Security and Control

Failed computer systems can lead to significant or total loss of business
function
Confidential personal and financial data, Trade secrets, new products,
strategies
A security breach may cut into firms market value almost immediately
Inadequate security and controls also bring forth issues of liability
Strong security: high ROI, employees productivity, lower operational
costs

Legal and regulatory requirements for electronic records management and
privacy protection
Protection data from abuse, exposure, unauthorized access
HIPAA: Medical security and privacy rules and procedures
Gramm--Leach--Bliley Act: Requires financial institutions to ensure the
security and confidentiality of customer data
Sarbanes--Oxley Act: Imposes responsibility on companies and their
management to safeguard the accuracy and integrity of financial
information that is used internally and released externally
Electronic evidence
Evidence for white collar crimes often in digital form Data on
computers, e--mail, instant messages, e--commerce transactions
Proper control of data can save time and money when responding
to legal discovery request
Computer forensics:
Scientific collection, examination, authentication, preservation, and
analysis of data from computer storage media for use as evidence in
court of law
Includes recovery of ambient and hidden data, plan needed
Establishing a Framework for Security and Control
Where company at risk, what controls must be in place, security
policy, plans for keeping business running if IS not operational
Information systems controls

Manual and automated controls
General and application controls
General controls
Govern design, security, and use of computer programs and security of
data files in general throughout organizations IT infrastructure.
Apply to all computerized applications
Combination of hardware, software, and manual procedures to create
overall control environment
Types of general controls: Software controls, Hardware controls,
Computer operations controls, Data security controls,
Implementation controls, Administrative controls

Application controls
Specific controls unique to each computerized application, such as
payroll or order processing
Include both automated and manual procedures
Ensure that only authorized data are completely and accurately
processed by that application
Input controls: authorization, conversion, editing, error handling
Processing controls: updating
Output controls
Risk assessment
Determines level of risk to firm if specific activity or process is not
properly controlled
Determine value of info assets, points of vulnerability, likely
frequency of the problem, potential for damage
Concentration on the control points with greatest vulnerability and
potential for loss
Security policy
Ranks information risks, identifies acceptable security goals, and
identifies mechanisms for achieving these goals, most important
assets
Acceptable use policy (AUP): Defines acceptable uses of firms
information resources and computing equipment, unacceptable,
consequences
Authorization policies: Determine differing levels of user access to
information assets
Identity management
Business processes and tools to identify valid users of system and control
access: Identifies and authorizes different categories of users, Specifies
which portion of system users can access, Authenticating users and
protects identities
Identity management systems: Captures access rules for different levels of
users
Disaster recovery planning: Devises plans for restoration of disrupted
services Business continuity planning: Focuses on restoring business
operations after disaster

MIS audit
Examines firms overall security environment as well as controls
governing individual information systems, data quality
Reviews technologies, procedures, documentation, training, and personnel
Simulate disaster to test response of technology, IS staff, other employees
Lists and ranks all control weaknesses and estimates probability
of their occurrence, Assesses financial and organizational impact
of each threat
Technologies and Tools for Protecting Information Resources

Identity management software
Automates keeping track of all users and privileges
Authenticates users, protecting identities, controlling access
Authentication: Password systems, Tokens, Smart cards, Biometric
Firewall: Combination of hardware and software that prevents unauthorized
users from accessing private networks
Static packet filtering: examines selected fields in headers of individual
packets
Stateful inspections: track info over multiple packets, part of
approved conversation, legitimate connection

Network address translation (NAT): conceals IP addresses of
internal host computers
Application proxy filtering: examines app content of packets
Intrusion detection systems:

Monitor hot spots on corporate networks to detect and deter intruders
Examines events as they are happening to discover attacks in progress
Raises alarm or shuts down sensitive network part Antivirus and
antispyware software:
Checks computers for presence of malware and can often eliminate it as
well
Require continual updating
Unified threat management (UTM) systems: firewalls, VPNs, IDS, web
content filtering, anti spam software

Securing wireless networks

WEP security can provide some security by Assigning unique name to
networks SSID and not broadcasting SSID, Using it with VPN
technology
Wi--Fi Alliance finalized WAP2 specification, replacing WEP with
stronger standards: Continually changing keys, Encrypted
authentication system with central server
Encryption
Transforming text or data into cipher text that cannot be read by
unintended recipients, encryption key
Secure Sockets Layer (SSL) and successor Transport Layer
Security (TLS) between 2 computers
Secure Hypertext Transfer Protocol (S--HTTP) limited to individual
messages
Symmetric key encryption: Sender and receiver use single, shared key
Public key encryption: Uses two, mathematically related keys: Public
key and private key, Sender encrypts message with recipients public
key, Recipient decrypts with private key
Digital certificate:
Data file used to establish the identity of users and electronic
assets for protection of online transactions
Uses a trusted third party, certification authority (CA), to validate
a users identity
CA verifies users identity, stores information in CA server, which
generates encrypted digital certificate containing owner ID
information and copy of owners public key
Public key infrastructure (PKI)

Use of public key cryptography working with certificate authority
Widely used in e--commerce
Ensuring system availability: Online transaction processing requires 100%

availability, no downtime
Fault--tolerant computer systems: Contain redundant hardware,
software, and power supply components that create an environment that
provides continuous, uninterrupted service

High--availability computing
o Helps recover quickly from crash, Minimizes not eliminates
downtime
o Backup servers, multiple server distribution, high capacity
storage, god disaster recovery and business continuity plans
Recovery--oriented computing: Designing systems that recover quickly
with capabilities to help operators pinpoint and correct of faults in multi-
-component systems
Controlling network traffic: Deep packet inspection (DPI) Video
and music blocking, using prioritizing
Security outsourcing: Managed security service providers (MSSPs)
Security in the cloud

Responsibility for security resides with company owning the data
Firms must ensure providers provides adequate protection
Service level agreements (SLAs) including controls
Securing mobile platforms

Security policies should include and cover any special requirements for
mobile devices
Tools to authorize all devices in use, maintain inventory records, updates,
lock
Ensuring software quality (software metrics and testing)

Software metrics: Objective assessments of system in form of
quantified measurements, identify problems as they occur
Carefully designed, formal, objective, used consistently
Examples: Number of transactions, Online response time, Payroll checks
printed per hour, Known bugs per hundred lines of code
Early and regular testing to uncover errors
Walkthrough: Review of specification or design document by small
group of qualified people
Debugging: Process by which errors are eliminated

Introduction
MIS is a practical stream. The aim of MIS is to provide information for decision
making. Data has to be captured, collected, collated and processed into information. This
formation has to be channeled to the right user at the night time and in the right way.
The MIS designer has to study the organization as a system, with all its sub-systems. The
information sub-system, in particular, has to be studied and a new, generally computerized
sub-system has to be designed, developed and implemented. The study of the existing system
and the design of a new system demands a thorough knowledge of business processes and
business as a whole. The MIS Designer needs to know how goods are manufactured, what data
is generated at each point, how this data is captured and transmitted id how the final reports are
produced. Man management skills to play an important role in ting able to understand how the
existing system operates. The MIS designer has to be able to speak the language of the user,
and this demands an understanding of the particular area of operation of the user. Thus, the
MIS Designer should be able to understand the language of a top Floor Supervisor as well as
Marketing personnel, Materials personnel and personnel in her functional area.
At the same time, the MIS designer needs to have a proper understanding of the
different formation needs of different organizations. With information Technology becoming a
highly specialized field, more and more organizations are turning to Information Technology
consultants and experts to design the MIS for the organization. In such cases, it is quite
probable it the MIS designer may become a specialist in the design, development and
implementation.
MIS in different organizations. It is quite possible that he will be called in as an
external entity to implement the MIS and then go on to another organization to repeat the
implementation process there, much the same way as Chartered Accountants and Lawyers can
be several different clients and not belong to any one client. Thus, he will be called upon to
design MIS different types of organizations at different times. Therefore, the MIS designer will
need to be an understanding of MIS operates differently in different sectors, such as the
manufacturing and service sectors, as well as in different functional areas such as production,
marketing, personnel, etc.
MIS used in different sectors as well as in different functional areas & MIS to be
able to understand the different approaches required, the different information needs, etc. from
the followings
Application of MIS in Manufacturing :-
The manufacturing sector is concerned with the production and marketing of
physical goods. The organization purchases raw materials, processes them into finished
products and markets these products in the market place. The data that is generated relates to

the procurement , of physical raw material, the storage and movement of this raw material
through the manufacturing process, the testing and checking of the finished goods, the
packaging and subsequent sale of the finished goods. The data relates to quantities, prices,
process materials, packaging material, etc. In other words, to a large extent the data in the
manufacturing sector relates to physical goods. Of course, there are intangible entities involved
too, such as market perception, expenses of the personnel, etc. However, by and large the data
refers to physical entities.
1. Productions
The Production Management function of the organization is concerned with
the production It interacts with functions such as Production Planning and Control,
Maintenance, Quality Control, etc. It receives inputs from inventory Control. It receives
feedback from Quality Control and Marketing.
The functional goods Production Management are fuller utilization of
manufacturing capacity and resources, reduction in rejection rates, maximizing uptime of the
plant & machinery and adherence to production schedules. Thus, the MIS will seek to aid
management in achieving these goals.
The data will be input into the MIS through following documents:
1. Production Programme
2. Production Schedule
3. Process Planning Sheet,
4. Job Card / Job Register
5. Quality rating sheet / form
6. Finished Goods Advice
7. Breakdown Advice
8. Material Requisition Form, etc.
The MIS system will be expected to give information on the following:

1. Quantity produced for a given period of time
2. Material requirement and usage
3. Rejection rates at various control points and at final stage
4. Breakdown reports on machinery
5. Labour utilization
6. Consumption of power, fuel, consumables, etc.
7. Utilization of various items of machinery
8. Hours worked or overtime shift run, etc.
At various points, management may query the MIS about information such as:
l. Status of a particular job and adherence to production schedule

2. Load status on different machines

3. Material status, stock situation, material flow
4. Results of new processes, etc.
The above information helps management make different decisions related
to production, such as Make-Or-Buy decisions, Sub-contracting decisions, horizontal
integration feasibility, etc., which will be based on the capacity utilization, marginal cost, load
on machinery, breakdown pattern, etc.
The negative feedback mechanism of the MIS will have to highlight items like:
1. Incidence of excessive rejection
2. Abnormal levels of WTP (Work-in-Progress) inventory
3. Excessive breakdown of machinery
4. Deviations from norms in production rate and / or quality
5. Underutilization of facilities
6. Excessive delays and failure to meet delivery deadlines, etc.
The various reports generated by the MIS will be for the purpose of evolving norms
and standards and informing management of the adherence to these norms and standards.
2. Marketing:-
Marketing management is concerned with satisfying the needs of the customer.
The MIS will have to aid in identifying the needs of customers evolving, product concepts,
designing the product, positioning the product, pricing, promotion, etc. Market research,
consumer surveys, advertising, sales promotion campaigns, dealer networks, etc. form the
major tasks in marketing management.
Studying the data input into the MIS system in marketing management, we
realize that the following documents form an important part of the input process:
Purchase Orders from customers
Order Acceptance Advices A
Delivery Advices from the godown
I Delivery Notes to customers
I Invoice / Credit Note /Debit Note, etc.
In addition, marketing management needs other data that is not produced
through transactions. The data- is generated through self-initiated actions such as market
surveys. Customer satisfaction polls, etc., as well as through external sources such as
trade journals, marketing publications, industry association journals and magazines, etc. The
MIS will have to refer to such data inputs as well, since they form an important of the
decision making success and in forecasting trends, customer demand, new product ideas, etc.
The MIS will be expected to give regular reports on the smooth functioning of the

\marketing function, including dealer development reports, customer base,

market share, complaints, etc. In addition, the management may query the system on the
following:-
Pending Orders
Customer Complaints and Suggestions
Purchase Trends
Buying Patterns
Sales Performance on different bases such as Area-wise, Product- wise, Salesman-wise,
Season-wise, etc.
Finished Stock Levels, etc.
The reports will have to help management make decisions on day-to-day
functioning as well strategic and tactical decisions such as pricing policy, packaging, product
positioning, etc. day-to-day decisions can be made with the help of decision support systems
using models and decision rules. However, for strategic and tactical decisions, other models
such as break-even analysis models, risk analysis models, forecasting models, network models,
etc. may be needed. In addition, the negative feedback mechanism of the MIS will have to give
details as to sale versus, targets, cost versus budgeted cost, consumer complaints, etc,
3. R & D (Research & Development)
Many times it is thought that the Research and Development activities of an
organization is not be regulated. While it is true that R&D does not behave the way production
or marketing does, it nevertheless has a role to perform in the organization. R & D has become
an important part of business, for it offers a way to stay ahead of the competition through
(innovation. Thus, it has a definite goal and must be properly monitored for it to be able to
achieve this goal.
Inputs to the R and D department are not transaction based. Most of the time, top
management may provide a direction. Sometimes, a specific ask is allocated to the department,
such as crash safety guards, fuel efficiency pollution control, etc. Sometimes, the government
lay step in and demand that an industry follow certain norms in environment protector), such
as the Euro I and II norms in automobiles. Most countries also have safety norms that the
manufacturer must provide, such as seat belts, impact buffers, etc. In such cases the R & D
department will have to work towards a specific goal within a specific time frame. Even if
there is no specific government directive, organizations have found that the marketplace
demands constant improvement. Safety features, fuel efficiency, pollution control, etc. have
become saleable points in the marketing strategy. Therefore R&D occupies an important place
in the marketing strategy of many companies.
Thus, there has to be a mechanism by which management can keep their finger on

the pulse of the R & D department. Input is usually given to the R & D department through
inter- office memos and meetings. On its own, the R & D department will take inputs from
other research journals, technology reports and breakthroughs, the work of scientists in certain
fields, etc.
Output will be given to management in the form of current research projects,
project start date, current status, prototypes, computer simulation models, etc. Management
may, in turn, query R&D about the status of projects that it feels are worthwhile to focus on,
the results of specific instructions on reduction of pollution, increase in fuel efficiency, safety
features,
Application of MIS in the Service Industry

The Service Industry is responsible for the provision of services to people. It
deals in intangibles, such as hospitality, health care, financial services / products (loans, etc.)
and other services that are difficult to quantify and measure. Service providers are also called
People, intensive Organizations, because services demand a high level of interaction with the
customer. Thus, a hotel does not merely provide a place for the customer to stay. Subject to
interactions such as the politeness of the doorman, the helpfulness of the registration clerk, the
efficiency of the bellboy, etc. all go towards the rating of the hotel in the customer's mind.
Physical comforts do play an important part, but all the physical comforts will be wasted if the
customer carries away a negative impression because of a rude clerk.
Therefore, service organizations need number of systems to keep in touch with
customer expectations. Some service industry experts recommend that service providers should
go beyond customer expectations and aim for customer delight. Thus it is important for
service providers to be able to predict levels of customer satisfaction and customer delight. A
great deal of customer feedback is necessary and the MIS has to devise ways of tracking
customer buying behaviour, customer requests, etc. Tom Peters, in The Service Edge",
defines five principles of a distinctive service:
l. Listen, Understand and Respond to the Customer
2. Define a Superior Service and establish a Service Strategy
3. Set Standards and Measures of performance
4. Select, Train and Empower employees to work for the customer
5. Recognize and Reward accomplishments
Thus, the above principles not only emphasis the service aspect to the customer,
but also point out that it is the employee that services the customer and therefore a great deal of
emphasis must be placed on empowering the employee to do so and recognizing and rewarding
the employee when he does provide superior service.

MIS Applications in Hotels

Hotels may have started out as a place to stay when one is away from home, but
the concept has undergone rapid and drastic change. There has been a transition from
convenience to comfort, comfort to enjoyment and enjoyment to delight or total service. Hotels
today are specifically designed to cater to the needs of different kinds of travelers, whether
individuals, or businessmen, or company executives, or families on holiday or tourist groups.
Some hotels manage to cater to all these segments. Some define themselves by particular
segments to which they cater. Whatever the hotel may choose to do, it will have to keep the
following information needs in mind:
1. Need to track Customer Profile
The hotel will need to maintain a database of its customers and specifically
track the Following information:
1. Type of Customer
2. Nature or Purpose of the visit
3. Duration of stay '
4. Service demanded
5. Socio-economic class of the customer
6. Religion, culture and language of the customer
The customer profile thus generated will help to determine the facilities the
hotel provides, such as swimming pool, gymnasium, shopping Centre, transportation, etc.
2. Occupancy Levels and Occupancy Pattern

The hotel will need to monitor occupancy levels at different times and
seasonal variations in occupancy. It will then be able to offer incentives like off-season
discounts, package holidays, premium suites, etc., based on occupancy preferences and
patterns. The MIS should be capable of providing such information to the management of the
hotel.
3. Customer Expectation Levels

The hotel will have to develop a sophisticated system to determine the
expectation levels of customers. The hotel's reputation, the customer's previous experiences,
etc. all go towards creating an expectation in the mind of the customer. The hotel should be
able to match this expectation, if not surpass it. Human nature is such that expectations rise
with every satisfaction. In other words, if a hotel surpasses a visitor's expectation, the
surpassed level becomes his expectation in the future. Therefore, if the hotel finds that it is
beginning to get a regular clientele, it must think of ways to surpass the customer's
expectations every time.

The MIS plays an important role in capturing, storing, retrieving and

communicating bits of data at various levels. All this data must be properly processed to be
able to give the management a clear idea of customer expectations, levels of satisfaction,
employee behaviour, etc.
MIS in Hospitals
Hospitals are another important constituent of the Service Sector. Hospitals are
healthcare providers and today have outgrown the traditional sterile image they once had.
Today, hospitals are run on the lines of business organizations and have a clearly stated
mission of providing healthcare to people. Hospitals no longer have patients but customers.
Customers are a wider definition and include referring doctors, specialists, medical consultants
and paramedical personnel.
In order to best serve their customers, hospitals need to track information about
the following:
1. Patient Database
This database is important to be enable the hospital to service queries about
past patients, healthcare provided, etc. to patients, their relatives and to doctors
2. Medical Server Database
This database contains records of medical service providers including regular
staff, specialists, consulting physicians, etc. It also contains data on institutions allied to the
medical sector such as blood banks, ambulance services, laboratories, etc. that can be called
upon in regular course or in emergencies.
3. Resource Planning and Control
This is an online query service that would provide information on the level and
availability of resources at different times and the customer scheduling capability of the
hospital. Such a system would also provide information on the utilization of services and the
spare capacity that can be made available to other healthcare providers.
4. Medical Case History Database
Such a database would be very helpful to medical researchers, students,
consultants and specialists who need to access various case histories. Many a time, the case
history of patients may help to judge the efficiency of certain drugs and the likely reaction of
patients with similar case histories to certain forms of treatment. -
In addition to the above, the hospital would need other MIS subsystems such as
back office operations, manpower planning, payroll billing and recovery inventory control, etc.

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Management Information System Chapter I Organization

Characteristics / Features of Organization

Hire & Promote employees based on Qualifications

New Satara College of BCA Pandharpur 1 Prof. Kirpekar R.R.

Role /Functions of Managers

Required skills for Managers in Organization

New Satara College of BCA Pandharpur 2 Prof. Kirpekar R.R.

New Satara College of BCA Pandharpur 3 Prof. Kirpekar R.R.

Steps of Decision Making Process:

Identify & Define the Problem

Develop Alternative Solutions

Brainstorm & analyze the al-

New Satara College of BCA Pandharpur 4 Prof. Kirpekar R.R.

Step 1: Identification of the purpose of the decision:

Step 2: Information gathering:

Step 3: Principles for judging the alternatives:

Step 4: Brainstorm and analyze the different choices:

New Satara College of BCA Pandharpur 5 Prof. Kirpekar R.R.

Step 5: Evaluation of alternatives:

Step 6: Select the best alternative:

Step 7: Execute the decision:

Step 8: Evaluate the results:

2) NON PROGRAMMED DECISIONS:

New Satara College of BCA Pandharpur 6 Prof. Kirpekar R.R.

New Satara College of BCA Pandharpur 1 Prof. Kirpekar R.R.

New Satara College of BCA Pandharpur 2 Prof. Kirpekar R.R.

New Satara College of BCA Pandharpur 3 Prof. Kirpekar R.R.

Classification by Management Hierarchy:-

Middle Level Information:-

Refer the Tactical Information point from Classification by

Supervisory Level Information

New Satara College of BCA Pandharpur 4 Prof. Kirpekar R.R.

Essential Characteristics/ Features/ Attributes for Information Quality:

New Satara College of BCA Pandharpur 5 Prof. Kirpekar R.R.

Information Need & Objective

Following are the needs and objectives of information processing:

Increasing impact of information processing for organizational decision making.

Dependency of services sector including banking, financial organization, health care,

Information revolution and the overall development scenario.

Growth of IT industry and its strategic importance.

Strong growth of information services fuelled by increasing competition and reduced

Need for sustainable development and quality life.

Improvement in communication and transportation brought in by use of information

Use of information processing in reduction of energy consumption, reduction in pollution

New Satara College of BCA Pandharpur 6 Prof. Kirpekar R.R.

Use of information processing in land record managements, legal delivery system,

Implications of Information in Business/ place of information systems in the

Access to information and capability of information processing has helped in achieving

A complete business information system, accomplish the following functionalities:

Collection and storage of data

Provide controls to safeguard data

Automate and streamline reporting

New Satara College of BCA Pandharpur 7 Prof. Kirpekar R.R.

Following factors arising as outcome of information processing helps in speed

Directly and immediate linkage to the system

Faster communication of an order

Electronic transfer of funds for faster payment

Electronically solicited pricing (helps in determining the best price)

Concept & characteristics of Information System

New Satara College of BCA Pandharpur 8 Prof. Kirpekar R.R.

2. They store the database items over an extensive period of time.

Formal information systems rely on procedures (established and accepted by

Informal information systems also exist within an organization (interpersonal