Management

Information Systems
Managerial Perspectives

Fourth Edition

D P GOYAL
Professor, Information Systems
&
Dean – Executive Graduation Programmes
Management Development Institute
Gurgaon, India

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Management Information Systems: Managerial Perspectives

ISBN: 978-93259-7860-7

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 To
My Respected Parents
 Contents

Foreword xv
Preface to the Fourth Edition xvii
Preface to the First Edition xix

Part – I: Conceptual Foundations

1. Management Information Systems: An Overview 3
1.1 Introduction 3
1.2 Need for Management Information Systems 3
1.3 Management Information Systems: A Concept 7
1.4  MIS: A Definition 14
1.5 Management Information System and Information Technology 18
1.6 Nature and Scope of MIS 18
1.7 MIS Characteristics 19
1.8 Structure of MIS 21
1.9 Types of MIS 25
1.10 Role of MIS in Global Business 48
1.11 Challenges of Managing Information Systems 50
Summary 51
Exercises 52
Review Questions 55
Assignments 56
Further Readings 56
Case Study – 1: MIS at Hotel Galleria International 58
Case Study – 2: MIS at Orient Crafts 60
Case Study – 3: MIS Failure at Runa Labs Pvt. Ltd. 62
Case study – 4: MIS at Kalsi Agro International 66
vi Management Information Systems

2. Information, Systems and Organization Concepts 67

2.1 Introduction 67
2.2 Information: A Definition 67
2.3 Types of Information 68
2.4 Information Quality 68
2.5 Dimensions of Information 71
2.6 System: A Definition 72
2.7 Kinds of Systems 73
2.8 System-related Concepts 75
2.9 Elements of a System 78
2.10 Information System 80
2.11 Organization: A Concept 81
2.12 Impact of Information Systems on Organization 82
Summary 84
Exercises 85
Review Questions 87
Assignments 87
Further Readings 87

3. Information Systems and Competitive Advantage 89
3.1 Introduction 89
3.2 Changing Role of IS 90
3.3 Competitive Advantage 91
3.4 Strategies for Dealing with Competitive Forces 93
3.5 Porter’s Value Chain Model 95
3.6 Strategic Information Systems (SIS) 96
Summary 99
Exercises 100
Review Questions 101
Assignments 102
Further Readings 102
Case Study – 1: MIS at Johan & Johan 103
Case Study – 2: Information System at GreenBus 106
Contents vii

Part – II: Information Technologies

4. IT Infrastructure and Emerging Technology 109
4.1 Introduction 109
4.2 A Computer System 109
4.3 Computer Categories 111
4.4 Computer Evolution 114
4.5 IT Infrastructure 117
4.6 IT Infrastructure Components 118
4.7 Emerging Technology 142
Summary 146
Exercises 147
Review Questions 151
Assignments 151
Further Readings 151

5. Data Resource Management 153

5.1 Introduction 153
5.2 Database Concepts 154
5.3 Files: The Traditional Approach 155
­5.4 The Database Management Approach: The Modern Approach 156
5.5 Database Management System 160
5.6 Data Models 161
5.7 Data Warehousing and Data Mining 176
5.8 Application of DBMS using MS-Access 178
Summary 194
Exercises 194
Review Questions 196
Assignments 198
Further Readings 199
Lab Exercise – 1: Database Management 200
Lab Exercise – 2: Database Management 202
viii Management Information Systems

6. Telecommunications and Computer Networks 205

6.1 Introduction 205
6.2 Telecommunications 205
6.3 Types of Signals 206
6.4 Communication Channels 207
6.5 Characteristics of Communication Channels 209
6.6 Communication Hardware 211
6.7 Communication Networks 214
6.8 Computer Networks in India 218
6.9 Internet 219
6.10 Applications of Communication 226
Summary 228
Exercises 228
Review Questions 231
Assignments 231
Further Readings 232
Case Study: Networking at a Technology Institute 233

Part – III: Business Applications of IS

7. e-Commerce, e-Business and e-Governance 239
7.1 Introduction 239
7.2 e-Commerce 239
7.3 e-Commerce Sales Life Cycle 242
7.4 e-Commerce Infrastructure 244
7.5 e-Commerce Applications 246
7.6 e-Commerce Payment Systems 247
7.7 Management Challenges and Opportunities 248
7.8 e-Business 250
7.9 e-Governance 250
Summary 253
Exercises 254
Contents ix

Review Questions 256

Assignments 256
Further Readings 256

8. Enterprise Systems 257

8.1 Introduction 257
8.2 Enterprise Systems 257
8.3 Enterprise Resource Planning (ERP) System 258
8.4 Customer Relationship Management (CRM) System 268
8.5 Supply Chain Management (SCM) System 273
Summary 276
Exercises 277
Review Questions 280
Assignment 280
Further Readings 280

9. Decision Support Systems 281

9.1 Introduction 281
9.2 Decision-Making: A Concept 282
9.3 Simon’s Model of Decision-Making 282
9.4 Types of Decisions 285
9.5 Methods for Decision-Making 287
9.6 Decision Support Techniques 295
9.7 Decision-Making and Role of MIS 296
9.8 Decision Support Systems (DSSs) 297
9.9 Business Intelligence 300
9.10 Knowledge Management Systems 304
Summary 308
Exercises 310
Review Questions 313
Assignments 313
x Management Information Systems

Further Readings 313

Case Study: Knowledge Management Systems at 315
            Abhi & Subhi Consultancy

Part – IV: Management of IS

10. Information System Planning 319
10.1 Introduction 319
10.2 Information System Planning 319
10.3 Creating an IS Plan (CRISP) 325
10.4 Resource Allocation 332
10.5 Project Planning 333
10.6 Organization Structure and Location of MIS Department 333
Summary 334
Exercises 335
Review Questions 337
Assignments 337
Further Readings 337
Case Study – 1: Planning of Information Systems at Soren & Company 338
Case Study – 2: Health Portal at Apollo Hospitals 339
Case Study – 3: IS Planning at Lafra Supply Chain Solutions:
            A Khyati Jhunjhunwala & Company Report 341

11. IS Choices and System Acquisition 351
11.1 Introduction 351
11.2 IS Choices 352
11.3 Acquisition of Hardware and Software 358
Summary 362
Exercises 363
Review Questions 365
Assignments 365
Further Readings 365
Contents xi

12. IS Development and Project Management 367

12.1 Introduction 367
12.2 System Development Life Cycle 367
12.3 System Development Models 373
12.4 Project Management 378
Summary 382
Exercises 383
Review Questions 385
Assignments 385
Further Readings 386
Case Study: MIS at Manik Manufacturing 387

13. Information Requirements Analysis & Systems Design 389

13.1 Introduction 389
13.2 Systems Analysis 390
13.3 Requirements Determination 390
13.4 Strategies for Requirements Determination 392
13.5 Structured Analysis Tools 394
13.6 System Design 400
Summary 413
Exercises 414
Review Questions 417
Assignments 417
Further Readings 418
Case Study: Information Requirements Analysis & Design at 419
          XYZ Bank

14. IS Implementation and Change Management 442

14.1 Introduction 442
14.2 Implementation Process 442
14.3 Organizational Change 448
14.4 Change Management 450
14.5 Organizational Learning 450
xii Management Information Systems

Summary 452
Exercises 452
Review Questions 454
Assignments 454
Further Readings 454

15. Evaluation and Maintenance of IS 456

15.1 Introduction 456
15.2 Evaluation Approaches 456
15.3 Evaluation Classes 458
15.4 Product-based MIS Evaluation 459
15.5 Cost/benefit-based Evaluation 460
15.6 Models Used in Evaluation 463
15.7 Process-based Evaluation 464
15.8 System Maintenance 465
Summary 466
Exercises 466
Review Questions 469
Assignments 469
Further Readings 469
Case Study: Effectiveness of MIS 470

Part – V: Security, Ethical and Social Issues

16. IS Security and Control 475
16.1 Introduction 475
16.2 IS Security Threats 475
16.3 Protecting Information System 478
16.4 IS Security Technology 480
16.5 The Disaster Recovery Plan 483
16.6 IS Security Level 484
Summary 484
Exercises 486
Review Questions 489
Contents xiii

Assignments 489
Further Readings 489

17. Ethical and Social Issues of ISs 491

17.1 Introduction 491
17.2 Ethical Issues 491
17.3 Social Issues 494
Summary 497
Exercises 498
Review Questions 500
Assignments 500
Further Readings 500
Case Study: IT Monitoring at HSCMT College 502

Answers of Objetive Type Questions 503

Glossary 508
Index 515
 Management Information Systems:
Managerial Perspectives

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