Management Information System (MIS)

Curriculum Units
1. 2. 3. 4. 5.

Introduction IT Infrastructure Enterprise IS IS Security Development of IS

Text Books
Management Information Systems by

James A OBrien (TMH) Management Information Systems: Managing the Digital Firm by Laudon & Laudon (Pearson) Management Information Systems: For the information age by Haag, Cummings, Philips (TMH)

What is System?
Definition:

Group of interrelated & interdependent components which are linked together according to a plan to achieve the specific objectives Examples: Physical Systems, Biological Systems, Technological System etc.

What is Information?
Definition:

Processed data used for decision making process Examples: Examination Score Results, Research Thesis, Computer Generated Summary Reports etc.

What is Management?
Definition:

Getting things done by others

Examples:

management functions as well as business functions.

What is IS?
Definition:

Organized combination of people, hardware, software, communication networks, data resources & policies/procedures that stores, retrieves, transforms & disseminates information in an organization Examples: Computers, ATMs, Kiosks, GPS, GPRS etc.

IS: Major areas (Conceptual framework)

Foundation Concepts
Information Technologies Business Applications

Development Processes
Management Challenges

IS: Roles
Support to business processes &

operations Support to decision making by managers & employees Support to strategies for competitive advantage

IS: Trends
EDP (1950-60)
MIS (1960-70) DSS (1970-80)

ECS, EIS, ES, SIS, KMS (1980-90)

E-business & E-commerce (1990-2000) ERP & AI (2000-2010)

The role of e-business

Use of internet technologies to work & empower business processes, e-commerce, and enterprise collaboration within a company and with its customers, suppliers, and other business stakeholders

Types of IS
1. OSS 1.1 TPS/DPS 1.2 PCS 1.3 ECS 2. MSS 2.1 MIS 2.2 DSS 2.3 EIS 3. Specialized IS 3.1 ES, KMS, SIS, FBS

Managerial Challenges of IT
1. Success & failure with IT
2. Developing IS Solutions 3. Challenges & ethics of IT 4. Challenges of IT careers

Additional Elements
Feedback
Control

A system with feedback & control functions is known as cybernetic system

System characteristics
System-subsystem
Environment Interface / boundary

Open / close system

Adaptive system

IS Resources
People resources
Hardware resources Software resources

Data resources
Network resources

IS: Activities
Input
Processing Output

Storage
Control

Strategic Use of IT
Cost leadership strategy
Differentiation strategy Innovation strategy

Growth strategy
Alliance strategy

Other strategies
1. Lock in customers & suppliers 2. Create switching costs

3. Raise barriers to entry

4. Leverage investment in IT

Competitive Forces
Rivalry of competitors
Threats of new entrants Threats of substitutes

Bargaining power of customers

Bargaining power of suppliers

Customer Focused Business

Keep customer loyal
Anticipate future needs Respond to customer concerns

Provide high quality products

Products tailored to individual e-CRM

e-SCM

Value Chain
Primary activities

Inbound logistic Operation Outbound logistic Marketing/Sales Customer service Administration HRM Technology development Procurement of resources

Support activities

BPR
It is a fundamental rethinking & radical redesign of business processes to achieve dramatic improvements in the COST, QUALITY, SPEED & SERVICES
Examples:

ERP, ecommerce, web enabled applications, cross functional & multidisciplinary process teams, case managers

Agile Company
Characteristics:

Technology savvy Global coverage Individualization Mass customization Short lived products Niche marketing Broad product range Fierce act

Agile Company: strategies

Pricing based on value of a product

rather than cost of a product

Cooperation with customers, suppliers,

other companies as well as competitors

Flexible organizational structure Leverage the impact of people

Creating a Virtual Company

Definition: Organization that uses IT to link people, organizations, assets & ideas

VC: Strategies
Share in infrastructure & risk with alliance

partners Link complementary core-competencies Reduce concept-to-cash time Increase facilities & market coverage Gain access to new markets & share customer loyalty Migrate from selling products to selling solutions

Knowledge-creating company
Making personal knowledge available to others continuously at all levels of the organization
Types of Knowledge: 1. Explicit 2. Tacit

Computer Types
Microcomputer systems

PC (Client/Computer terminal), NC, Tech. Workstations, PDA Network Servers, Web servers

Midrange systems

Mainframe systems

Super computers, Enterprise systems

Input Peripherals
Keyboard/Multimedia Keyboard
Mouse/Wireless Mouse Track pad (touch pad) Touch Screen

Scanner (Flat, OMR, MICR, OCR)

Light pen Web (digital) camera Magnetic stripes Joy sticks Biometric devices

Output Peripherals
VDU (CRT,LCD)
Printers (Dot Matrix, Inkjet, LASER) Plotters

Headphone
Speaker

Memory
Primary

RAM, ROM

Secondary

Floppy HD CD, DVD Pen drive RAID

Important Terminologies
Online/Offline
GUI IPS/Hz/flops

Cache Memory
CPU Register (S/M/L/VL)SI

Direct / Sequential access

Software
Definition: Set of Programs
Types:

Application software System software

Application software
General-purpose

Productivity packages Custom COTS Open source eSCM eCRM Financial & Accounting system HRM System KMS

Function specific

S/W (Productivity) Packages

Collection of general purpose application soft wares which are used for WORD PROCESSING, SPREAD SHEET CALCULATIONS, GRAPHICAL PRESENTATIONS, DATABASE MANAGEMENT and PERSORNAL INFORMATION MANAGEMENT

S/W Suites
Set of most widely used software integrated packages or
Bundle of Packages

Software suites/Packages
Example: MS-Office Package

MS-Word (word processor) MS-Excel (spread sheet) MS-PowerPoint (Presentation) MS-Access (Database) MS-Outlook (PIM) Lotus SmartSuite Corel WordPerfect Office Sun Star Office

Other Examples:

Web browser
App. s/w to support navigation through

the point-and-click hyperlinked resources of the WWW Examples:

MS-Explorer Netscape Navigator Firefox Opera Hot Java Safari

Continue
Terminologies:

URL WWW Extension IP Address Web site, Email (CC, BCC, Attach., IM), Weblog Hypertext & hyperlink HTML, DHTML, XML, Java, JSP/ASP, .NET, JavaScript, VBScript

PIM: Outlook Express

Facilities:

Electronic calendar List of appointments / meetings Time table for a project Display of key facts & financial data about customers, clients & sales etc. Ability to access internet & email services

Groupware
App. s/w that helps workgroups and

teams collaborate to accomplish group assignments Facilities: email, discussion groups, scheduling, task management, video conferencing etc. Examples:

Lotus Notes Novell Group wise Microsoft Exchange

Important Terms
ASP (Application Service Providers)

Example: salesforce.com

Software Licensing

System software
Programs that manage and support a computer system and its information processing activities

System Software: types

System Management Programs

Programs that manage the H/W, S/W, N/W & Data resources of computer systems Examples:
OS Network

Management Programs Database Management Systems

Continue
System Development Programs

Programs that help users develop information system programs and prepare user programs for computer processing Examples:
Language

Translators (Assembler, Compiler, Interpreter) CASE Tools

OS: Functions
User interface
Resource Management Task Management

File Management

Network Business Process

The internet, the web, and intranets and extranets are networking business processes and employees together and connecting them to their customers, suppliers, and other business stakeholders

Internet: popular uses

Surf E-mail

Discuss (e.g. chat rooms)

Publish (e.g. weblog) Buy & Sell (e.g. ecommerce) Download (e.g. files, s/w, report, article,

picture, music, video etc.) Compute Other (phone calls, video conference, radio, TV, video games etc.)

Internet: business values

Generate net revenue sources
Reduce costs of doing business Attract new customers

Increase customer loyalty & retention

Develop new markets and channels Develop new web based products

Intranet
It is a network inside an organization that uses internet technologies to provide an Internet-like environment within the enterprise for information sharing, communications, collaboration, and the support of business processes

Intranet: business values

Communications and collaboration

Email, voice mail, pages, faxes, discussion groups, chat rooms, audio & video conferencing Intranet website, company newsletters, technical drawings, product catalogs Order processing, inventory control, sales management, task management Network administration, database management, directory management

Web publishing

Business operations and management

Intranet portal management

Extranet
Network links that use internet technologies to interconnect the intranet of a business WITH the intranets of its customers, suppliers, business partners Extranet enable CUSTOMERS, SUPPLIERS, CONSULTANTS, SUBCONTRACTORS, BUSINESS PARTNERS/CLIENTS to access SELECTED intranet website pages and company databases

Internet abuses
General e-mail abuses (spamming, phising, spoofing,

viruses/worms) Unauthorized usage & access (sharing of passwords) Copyright Infringement (pirated software) Newsgroup postings (non work related topics) Transmission of confidential data (trade secret) Pornography (sexually explicit sites) Hacking (black hat, gray hat, white hat) Non work related download/upload Leisure use (shopping, e-cards, gambling, chatting, game playing, auctioning etc.) Usage of External ISP (to avoid detection) Moonlighting (side job)

Computer Cyber Crime

Hacking & cracking
Cyber theft Unauthorized use at work

Software privacy
Theft of Intellectual property Viruses/Worms/Trojan Horse

Ad ware & Spy ware ( sniffer )

Individual privacy

Other challenges
Employment challenges (job reduction)
Computer monitoring (violation of right to

privacy) Challenges in working conditions (worker to work like a machine) Challenges to individuality (inflexible & uncaring organizations with computer based operations)

Health Issues
Health problems: job stress, damage

fingers/wrist/arms/neck muscles, eyestrain, back pain, indigestion etc. Ergonomics (human factors engineering)

The tools (computer, hardware, software) The work environment (lighting, furniture, climate) The task (training, shift work, rest break)

Security Management
Cryptography (encryption & decryption) Digital signature Firewall Email content monitoring software Antivirus software Multilevel password system Back up files

Biometric security
Disaster recovery management

SDLC
Investigation
Analysis Design

Development
Implementation Maintenance

Investigation
Determine how to address business

opportunities and priorities

Conduct a feasibility study to

determine whether a new or improved business system is a feasible solution

Develop a project management plan and

obtain management approval

Feasibility Studies
Operational Feasibility

How well the proposed system supports the business priorities of the organization How well the proposed system will solve the identified problem How well the proposed system will fit with the existing organization structure

Economic Feasibility
Cost saving
Increased revenue Decreased investment requirements

Increased profit
Cost / Benefit analysis

Technical Feasibility
Hardware, software and network

capability, reliability and availability

Human Factors Feasibility

Employee, customer, supplier

acceptance Management support Determining the right people for the various new or revised roles

Legal / Political Feasibility

Patent, copyright and licensing
Government restrictions Affected stakeholders and reporting

authority

System Analysis
Organizational analysis Knowing organization & its culture, structure, people, business activities, environment and current information system Present system analysis

hardware, software, data sources, network, people, input, process, output, control
Logical analysis

what the current system does?

Functional requirement analysis

User interface, processing, storage, and control

System Design
Use interface design (screen, form,

report and dialog design) Data design (data element structure) Process design (program and procedure)

Example: Web site Design

Remember the customer Aesthetics Contents Navigation Search ability Compatibility Registration Forms Links

Implementation
Acquisition of hardware, software and

services Software development Data conversion End use training Conversion

Conversion
Direct

a.k.a. Slam dunk or cold turkey strategy Parallel

Pilot

Phased

Maintenance
Corrective (detection & correction of

errors) Adaptive (modifying or adding new functions) Perfective (improve the performance) Preventive (to reduce the chances of a system failure)

Global IT Management
Dimension of Global E-Business

Technology Management

Cultural, Political & Geo-economics factors Business/IT strategies Business application portfolios Internet based technology platforms Data resource management System development

Global IT: business drivers

Global customers
Global products Global operations

Global resources
Global collaboration

eCommerce: the scope

Market research Market stimulation Terms negotiation Order processing Order selection/priority Order billing/payment Order scheduling/fulfillment Customer service & support

eCommerce: categories/models
B2B (Verisign.com)
B2C & C2B (amazon.com) C2C (eBay.com)

B2E & E2B (intranet site)

B2G & G2B (e-Governance

rmc.gov.in) P2P (mutual sharing)

eCommerce: essential processes

Access control & security
Profiling & personalizing Search management

Content & catalog management

Workflow management Event notification

Collaboration & trading

eCommerce: CSF
Selection & Value
Performance & Service Look & Feel

Advertising & Incentives

Personal attention Community relationships

Security & Reliability

eBusiness Systems
Functional Mainframe Legacy Systems
Integrated Cross Functional Client-

Server Applications

Enterprise Application Architecture

ERP,

TPSs (CRM, SCM, PRM, KM) ware

Enterprise Application Integration (EAI)

Middle

TPS: processing cycle

Data Entry
Transaction Processing

Batch Real Time (OLTP)

Database Maintenance Document & Report Generation

Inquiry Processing

SQL

Enterprise Collaboration Systems (ECS)

Electronic Communication Tools

e-Mail, IM, Voice Mail, Faxing, Web Publishing Video/Voice conferencing, Discussion Forums, Chat Systems Calendaring & Scheduling, Workflow Systems, Knowledge Management

Electronic Conferencing Tools

Collaborative Work Management Tools

Marketing Information Systems (MIS)

Interactive Marketing
Sales Force Automation Market Research & Forecasting

Advertising & Promotion

Product Management Targeted Marketing

Manufacturing Systems (MS)

Manufacturing Resource Planning

Systems

Production forecasting, Material requirement planning, Production cost control, Capacity planning Robotics control, Machine control, Process control, Shop Floor scheduling CAD, CAE, CAM

Manufacturing Execution Systems

Engineering Systems

Human Resource Systems (HRS)

Staffing

HR planning, Labor cost analysis & budgeting, Turnover analysis, Recruiting, Workforce planning & scheduling
Performance appraisal planning, Career matching, Skill assessment

Training & Development

Compensation Administration

Contract costing, salary forecasting, benefits administration, Payroll control

Accounting Systems (AS)

Order processing
Inventory control Accounts receivable

Accounts payable
Payroll General ledger

Financial Management Systems (FMS)

Working Capital Management
Capital Budgeting Fund Forecasting & Collection

Investment Management
Risk/Return Analysis

ERP: components
Production planning
Integrated logistics Accounting & Finance

Human resources
Sales, Distribution, Order management

ERP: benefits
Quality & efficiency
Decreased costs Decision support

Enterprise agility

ERP: costs
Reengineering 43%
Hardware 12% Software 15%

Data conversion 15%

Training & change management 15%

BI: components
DSS
Online analytical processing KMS

MIS
Data Mining

MIS: reports
Periodic scheduled
Exception Demand

Puch

OLAP: processes
Consolidation
Drill-down Slicing & Dicing

OLAP: examples
Marketing & sales analysis
Database marketing Budgeting

Financial reporting
Profitability analysis Quality analysis

DSS: activities
What-if analysis
Sensitivity analysis Goal-seeking analysis

Optimization analysis

KMS: cycle
Create
Capture Refine

Store
Manage Disseminate