IMFORMATION

• Information is derived from data. Data is

nothing but a random, unorganized
collection of indications or measurements
of certain qualities or attribute relating to
entity, recorded either in alphabetical,
numerical, alphanumerical, voice,
image,text or any other form.
 Meaning
• Information System (IS) is basically an
integrated system which transforms the data
(input) into report (output) for facilitating
decision making through processing and
using various components of the information
system Viz Hardware, Software, Database,
procedures and personnel.
Evolution of Informaton System
AI
KS/ES
ESS

DSS

MIS

OAS

TPS
 Evolution of IS…

• TPS-Transaction Processing System

• OAS-Office Automation System
• MIS- Management Information System
• DSS-Decision Support System
• ESS-Executive Support System
• KS/ES – Knowledge / Expert System
• AI- Artificial Intelligence
 Concepts of IS
• DATA DATA DATA

Skill/ External
Judgment/ Experience Environment
intuition
Processing Logic
Intelligence Design Choice
Computers

Human Beings
Decision Implementation

Data base
Performance

Monitoring / Feedback
 Functions / Changes in IS
TPS-Transaction Processing System
Information Inputs
• Transaction , Events
Processing
• Sorting; listing ,Merging ,Updating
Information Output
Detailed , Reports, Lists, Summaries
 Office Automation
• Information Inputs
Documents , Schedules
• Processing
Document management
,Scheduling ,Communication
• Information Output
Document ,Schedules , Mail
 Management information System
• Information Inputs
Summary Transaction data, High
Volume Data, Simple Models
• Processing
Routine report, Simple Models, Low
level Analysis
• Information Output
Summary and Exception Reports
 Knowledge Expert
• Information Inputs
Design Specification, Knowledge
base
• Processing
Modeling ,Simulation
• Information Output
Model , Graphic
 Decision Support System
• Information Inputs
Low-volume Data , Analytic Models
• Processing
Interactive, Simulation , Analysis
• Information Output
Special reports, Decision Analysis,
Responses to queries
 Executive Support System
• Information Inputs
Aggregate Data, External ,
Internal
• Processing
Graphics, Simulation, Interactive
• Information Output
Projections , Response to Queries
Oraganizatioanl IS / Functional Sub-system ….

• Marketing
• Manufacturing
• Logistics
• Personnel
• Finance & Accounting
• Information Processing
• Top Management
 Activities Sub-System

• Transaction Processing
• Operational Control
• Management Control
• Strategic Planning
 Info Proc
Personnel
Production

Logistics

R&D
F&A
Strategic MKT
Planning

Mgt Control

Opt Control

Trans Control

Database management System

DATA BASE
MIS Multi-disciplinary subject

Mgt Accounting
Mgt Science &
Theory

Computer Science
MIS
Behavioral Science

Operation
Research
Organization Theory
 Marketing Information
System
• Sales Forecasting
• Sales Planning
• Customer Analysis
• Sales Analysis
Manufacturing Information System

• Production Planning
• Production Scheduling
• Cost control analysis
Human Resources Information
System

• Planning Personnel requirements

• Analyzing Performance
• Salary Administration
 Accounting & Finance
Information System

• Financial Analysis
• Cost Analysis
• Capital Requirements Planning
• Income Measurement
 Transaction Processing
System

• Processing of Order
• Shipment
• Receipts
 Information Processing
system

• Information System Planning

• Cost effective Analysis
 Management Information
System (MIS)
Meaning
MIS is the system, which makes
available the right information to the right
person, at the right place, at right time, in
right form and the right cost.
 DEFINITION
• MIS is an “integrated user-machine system
for providing information to support
operations, management and decision
making function in an organization. The
system utilizes computer hardware and
software, manual procedures model for
analysis, planning control and decision
making and data base”- Davis and Olson
 Definition
• MIS is “a combination of human and
computer based resources which result in
collection storage, retrieval,
communication and use of data for the
purpose of efficient management of
operations and for business planning” -
Kelly
 MIS should take care these
points:
• Confirmation of the validity of data and transaction.
• Complex processing of data and multidimensional
analysis.
• Quick search and retrieval.
• Mass Storage.
• Communication of the information system to the user
on time.
• Fulfilling the changing needs of the system
 Role of MIS
• MIS has become necessary due to the
increased Business and Management
Complexities. These complexities demand not
only quantitative but qualitative decision making
all manager as we know have to take decision
under condition of risk, certainty or uncertainty.
A good manager/decision maker is one who
minimizes, if altogether the element of risk and
uncertainty in decision making
 Impact of MIS
• MIS creates an information based work
culture in an organization.
• With a good MIS support the management of
marketing, finance, production and personnel
become more sufficient.
• A disciplined information reporting system
creates a structured database and a
knowledge based for all the people in the
organization.
• The information is available in such a form
that it can be used straight or by blending
and analysis, saving the manager’s valuable
time
 Impact…
• MIS creates another impact in the organization
by making it convenient to understand the
business better.
• MIS are the product of business goal and
objective ,it help indirectly to pull the entire
organization in one direction towards the
corporate goal and objective by providing the
relevant information to the people of the
organization.
• The use of computers help manager to use the
tools and techniques, which are impossible to
use manually.
 Characteristics Of MIS

• MIS was envisioned as a single, highly

integrated system, bringing together
data processing for all organizational
function. MIS consists of Functional
Sub-system and Activities Sub-system
 Information Process
• Capturing
• Verifying
• Classifying
• Arranging/Sorting
• Summarizing
• Calculating
• Retrieving
• Reproducing
• Dissemination/Communication
 Types of Information

• Strategic Level
• Tactical Level
• Operational level
 Attributes of Information
• Timely availability
• Accuracy
• Reliability
• Periodicity /Frequency
• Verifiability
• Pertinent /Relevant
• Completeness
• Comprehensibility
• Clarity
• Consistency
• Brevity
• Cost Effectiveness
 Information Competitive
advantage
• “Competitive advantage is about changing
the balance of power between a firm and
its competitor in the firm’s favor”
• “Competitive advantage could be usually
embodied in either a product or a service
that has most added value to customer
and that is unavailable from the
competition”
• “As an internal system that deliver benefits
to a firm, not enjoyed by its competition”
 Competitive Environment
• Information , Information Technology
and resultant Information Revolution –
These terms , Incidentally , would be
used Interchangeability in our present
discussions are changing the rules of
the game and creating new paradigm
shift, giving companies new way to
out-perform their rivals, This in turn ,
facilitates the organizations gaining
competitive advantage
Contemporary Approaches IS
• Technical Approach

• Behavioral Approach

• Socio-Technical Approach
Information is a Strategic Resource

‘Information is scarce ,has significant

cost and has alternative use-
bestowing competitive edge on the
organization which possesses it.”
 Porter and Miller Postulates
According to Porter and Miller .Information tech
is affecting competition in three vital ways
1. Changes in Industry Structure
2. Spawning of New Business
3. New Ways of Doing the Things
– Functional Uses
– Strategic Uses
 DECISION SUPPORT
SYSTEM
Introduction
The Decision Support System are
interactive information system, that rely
on an integrated set of user-friendly
hardware and software tools to produce
and present information that is targeted to
support the management in the decision
making
Introduction….
• MIS is considered useful for structured
decision, Decision Support System is
considered to be more useful for
decision at the tactical/strategic
level ,where decision makers are often
confronted with complex decisions
which are beyond their human abilities
to synthesize properly the factors
involved.
 COMPONENTS Of DSS
• The Database

• A Model Base
a, Behavioral Model
b, Management Science Model
c, Operations Research model

• DSS Software System

 Components …
• The Data Base
The DSS database is a collection of
current or historical data from a number
of applications or group. It is organized
in such a manner that it provides easy
access for a range of application.
 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

Behavioral model Mgt Science Model Operations research Model

 A model base …
• Behavioral Model
The focus of behavioral models of DSS is
on studying /understanding the behavioral /
trends amongst the variable ,Decision
could then be arrived at with due regards to
such behavioral relationship
Eg: Trend Analysis, Forecasting, Co-
relation, Regression
A model base …
• Management Science Model
These models are developed based upon
Principles of Management ,Management
Accounting and Econometrics among
others.
Eg: Budgetary System, Cost Accounting,
Capital Budgeting. Inventory
management ..
A model base …
• Operations research Model
Operations research is basically
application of mathematical formulae for
arriving at optimum solutions. As such
Operations Research Models are
mathematical models.
Eg: Linear programming, ABC analysis,
Mathematical Programming Techniques,
Material Requirement Planning ..
 The DSS System Software
• The DSS Software System permits easy
interaction between the users of the system
and the DSS database and models base .The
DSS software system manages the creation,
storage and retrieval of model in the model
base and integrates them with the data in the
DSS database. The DSS Software System
also provides a graphic, easy to use ,flexible
user interface that supports the dialogue
between the user and DSS.
 Core Capabilities Of DSS
• Representations

• Operations

• Memory Aids

• Control Aids
 Factors Influencing Success and
Failure in DSS
• User Training /Involvement
• User Experience
• Length of Use (Familiarity)
• Top Management Support
• Orientation towards Top Management
• Novelty of Application
• Return on Investment
 STRUCTURE OF DSS
• The Database and Its Management

• The Model base and Its Management

• The Hardware

• The User System Interface

 Desirable characteristics of DSS
• Should aid the decision maker in decision
• Should be able to address semi/un-
structured decision making situation
• Should support decision maker particularly at
tactical/strategic level
• Should enable users to use DSS without
assistance form MIS/Technical professionals
• Should have capability to interface with
corporate database
• Should be flexible to accommodate verity of
management styles etc…
 DSS Approach
• Raw data and status access
• General Analysis capabilities
• Casual model ie forecasting ,diagnosis
• Solutions Suggestions, Evaluation
• Solution Selection
Fundamental DSS Program Structure
Model
base

Model
Mgt

Dialogue
Mgt

USER
Data
Mgt

DSS Enterprise External

Database Data Data source
Components of DSS Programs
• Dialogue Management

• Model Management

• DataBase Management
 Model base
Model base Mgt
Command Model
processor Execution
Database
Interface

User Dialogue Request

Interface Control Translator

Query/Database
Commend interpreter

Local DSS Data

DBMS
Mgt Dictionary
Interface
Enterprise Data services

USER Data
Eternal
Data
 Type of DSS
• Status Inquiry System
• Data Analysis System
• Information Analysis System
• Accounting System
• Model Based System
Group Decision Support System
“GDSS is an interactive computer-based
system that facilitates the solution of
unstructured problem by a set of
decision-makers working together as a
group”
 Components of GDSS
• Hardware

• Software

• People and Procedure

 EXPERT SYSTEM
• The Expert System technology basically
derives from the research discipline of
Artificial Intelligence , a branch of
computer science concerned with the
design and implementation of
Programmes which are capable of
emulating human cognitive skills such
as problem-solving ,visual perception
and language understanding
 Expert System
• Definition
“An Expert System is computer
programme that represents and
reasons with knowledge of some
subject specialist with a view to solving
problems or giving advice” According
to Peter Jackson
Expert system
• Definition
“ Is a series of computer programmes
that attempt to mimic human thought ,
behavior in a specific area that has
successfully been solved by human
expert”
 Components of Expert System

Interface
Description of engine
New course
User
USER Interface

Advice and Knowledge

explanation base

Knowledge Acquisition
Base Facility

Experts
 Capabilities of Expert System
• Capturing of Expertise
• Codifying the Expertise
• Duplicating and Transferring the
Expertise
• Saving the Human Expert’s time
• Saving on maintenance and updating of
the knowledge base
 Characteristics of Expert System
• Ability to explain their reasoning or
suggested decisions
• Ability to display “Intelligent” behavior
• Ability to draw conclusion from complex
relationship
• Ability to provide “Portable knowledge”
• Difficulty to maintain
• Ability to deal with certainty
• Limited to relatively narrow problems etc..
 Expert system application
• Aerospace Technology (NASA)
• Banking and Finance
• Education
• Food Industry
• Personnel Management
• Security Analysis
• Tax Planning
• Quality control and Monitoring
• Etc…
When will go in for expert system?
• Will the system help reduce risk
significantly?
• Will the system provide a high pay-off?
• Will the system performance be more
consistent than human expert?
• Will the system enable the expertise to be
made available multiple location?
• Is the expertise really rare or expensive?
• Will the system enable developing the
solution faster than human experts/
 ARTIFICIAL INTELLIGENCE
Meaning
Artificial Intelligence (AI) is basically a
technology which helps /facilitates the
application of computers to areas that
require knowledge , perception , reasoning
,understanding and cognitive abilities
which distinguish to the human behavior
from machines like computers.
 AI
Definition
“Ai is a branch of computer science that is
concerned with the automation of
intelligent behavior “

“AI is series of related technologies that

attempt to simulate and reproduce human
behavior ,including thinking ,speaking
,feeling ,reasoning”
 Pre-Requests of AI
• Understand what is “Common Sense”
• Understand “Facts” and relationships among
“Facts”
• Be able to manipulate “Qualitative” data
• Be able to deal with exceptions and
discontinuity
• Be able to interface with humans in “Free-
Format” fashion
• Be bale to deal with new situations based on
previous learning
 AI related technologies
• Expert Systems
• Fuzzy Logic
• Intelligent agents
• Natural Language Processing
• Neural Network
• Robotics
• Speech Recognition
• Vision Recognition System
• Learning System
 AI Onion Model
Natural language
processing

Modeling and
Heuristic Representation

vision
Computer
Search Of knowledge
planning
Solving
Problem

AI Common
Language sense
And tools Reasoning
and logic

Expert System
 AI Applications
• Manufacturing /production planning and
scheduling
• Project management
• Factory management
• Sales , distribution and field service
• Financial management
• Geology
• Criminology
• Portfolio management
 Precaution for AI
• Cost
• Personnel with required skills
• Corporate management attributes and
most importantly
• The demonstration of verity of commercial
AI success stories to be a role model for
other to follow.
 INFORMATION TECHNOLOGY
• Information technology is the
acquisition, processing, storage and
dissemination of vocal, pictorial, textual
and numeric information by a micro-
electronics-based combination of
computing and telecommunication
 Information Technology ….

• Information technology must be conceived of broadly

to encompass the information that business create
and use as well as a wide spectrum of increasingly
convergent and linked technologies that process the
information. In addition to computers, than, data
recognition equipment, communication technologies,
factory automation, and other hardware and services
are included
 Role /Capabilities of IT
• Transactional
• Geographical
• Automational
• Analytical
• Informational
• Sequential
• Knowledge
• Tracking
• Disintermediation
Computer system Combination

• Hardware : Physical devices

• Software : Instructions
• Data/Information : Data is facts
collected
Components of Computer
CPU

ALU

Input Output

CU

Primary Storage

Secondary Storage
 Characteristics of a Computer

• Automatic
• Speed
• Accuracy
• Diligence
• Versatility
• Reliability
• Storage
• No feeling/No emotion/No Intelligence
 Physical media to link devices
ALU

Primary
Storage
CU

DATA BUS
ADDRESS BUS
CONTROL BUS

• KB • Monitor • Magnetic tape

• Mouse • Printer • Magnetic Disk
• Touch Screen • Plotter • Optical disk
• Automation • Audio

Input Output Secondary Storage

 Generations of Computers
• First Generation (1946-1956)
• Second Generation (1957-1963)
• Third Generation (1964-1979)
• Fourth Generation (1980-onwards)
• Fifth Generation (new)
 Computer Categories

• Super Computer.
• Main Frame Computer.
• Mini Computer
• Micro Computer
 SOFTWARE
Computer software divided in to two;
• System Software;
# Operating system
# Language translators
# Utility program
# Communication software
• Application Software;
 Operating System
Application Software

System software

DOS
Win 95 Hardware
Win NT
Win XP
OS/2
Unix
Linux
 System Software…
• Language Translation;
The programming language like Cobol,
Fortran, C etc..

• Utility Programs ;
Utility Programs are pre-written programs, they help users
in system maintenance task and in performing tasks of
routine like sorting, listing etc..

• Communication Software ;
Enable transfer of data/program from one computer to
the another in network environment where multiple
computer are interconnected
 NETWORK
• Computer Networking is the process of
providing connectivity between/among
two or more computer/computer system
to enable users to communicate with
each other, share hardware/software
resources and not get constricted by the
stand-alone system.
 Network Topologies

Network can be classified according to the geographical scope or area

Covered by services provided and also by share or topology, mainly into

• Bus Topologies
• Star Topologies
• Ring Topologies
 Bus Topologies

Computer 1

Back bone

Computer 2 Computer 3 Computer 4

Star Topologies
Computer 1

Computer 2 HUB /Switch Computer 3

Computer4
 Ring Topologies
Comp 1
Comp 8 Comp 2

Comp 7
Comp 3

Comp 4
Comp 6

Comp 5
 Type of Network

• Local Area Network (LAN)

• Metropolitan Area Network (MAN)
• Wide Area Network (WAN)
• Value Added Network (VAN)
Electronic Data Interchange
(EDI)
As per American National Standards
Institute “Electronic Data Interchange (EDI)
is the transmission, in a standard syntax, of
unambiguous information of business or
strategic significance between computer of
independent oraganisation. The users of
EDI do not have change their internal data
bases. However ,users must translate this
information to or from their own computer
system formats , but this translation software
has to be prepared only once.”
Advantage of EDI
• Issue and receive order faster
• Make sales more easily
• Get paid sooner
• Minimize the capital tied up in
inventory
• Reduce letters and memos
• Decrease enquiries make bulk update
 How EDI works

Your Application EDI Translator Trading partner

 Centralized and Decentralized
Distributed Execution
• centralized, or centralised system, is one
in which most communications are routed
through one or more major central hubs.
Such a system allows certain functions to be
concentrated in the system's hubs, freeing up
resources in the peripheral units. Another
benefit of centralization is the ease of
maintaining accurately updated lists of data
that can be easily accessed from all points.
Centralization….

• Centralization's weaknesses are centered

around the system's heavy reliance on a
few central components; if the system's
hubs are put out of operation, either
accidentally or through hostile action, the
system and its peripheral components are
severely affected
 Decentralization
• Decentralization or Decentralisation the
process of dispersing decision-making
governance closer to the people and/or
citizen. It includes the dispersal of
administration or governance in sectors or
areas like engineering,
management science, political science,
political economy, sociology and economics.
Decentralization is also possible in the
dispersal of population and employment
 Distributed
• Distributed computing is a field of
computer science that studies distributed
systems. A distributed system consists
of multiple autonomous computers that
communicate through a computer network.
The computers interact with each other in
order to achieve a common goal. A
computer program that runs in a
distributed system is called a distributed
program, and distributed programming
is the process of writing such programs.
 Supply Chain Management (SCM)
A supply chain involves all activities
associated with moving goods from the raw
materials stage to the finished product and
end user.
SCM is defined “ as the integration of
business processes from end user through
original suppliers that provide products,
services and information that add values for
costumers.”
 SCM Objectives
• Reduces cost per units for customer

• Minimize order to delivery cycle time

• Reduce waste and duplication

• Ensure superior delivery

 IT system Supply chain
management
• Timely product development and new
product introduction
• Reduction in own inventory as well as
channel intermediary’s inventory
• Reproduction in communications and
customer support costs
• Ability to improve traditional products and
customer relationship through
customization
 Impact of SCM in companies
• Channel Relationship
• Flow of Information
• Business processes
• Inventory
• Production
• Distribution
• Product design
• International Operations
 IS Security Challenges
• Unauthorized reading of data (Theft of
information)

• Unauthorized modification of data

• Unauthorized destruction of data

Why break IT system security ?
• Revenge

• Money

• A shot at /of notoriety

• The challenges of doing “IT”

 IS Security Threats
• The External Threats
Internet connection
Remote Dial -in Capabilities
The Internal Threats
Password
User termination
Users information
Access Reviews etc…
How to avoid Internet threats

Firewall
Internet
Office
Network
 Avoiding online risk
• Firewall

• Encryption
Hardware encryption
Software encryption

• Message Authentication

• Site Blocking