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Information system
An information system is a combination of software, hardware, and
telecommunication networks to collect useful data, especially in an organisation.
Many businesses use information technology to complete and manage their
operations, interact with their consumers, and stay ahead of their competition.

What Are The Types Of Information Systems?

 Knowledge Work System. ...
 Management Information System. ...
 Decision Support System. ...
 Office Automation System. ...
 Transaction Processing System. ...
 Executive Support System.

How do Information Systems Influence Modern Business?

In today’s continuously changing and fast moving world, customers’
requirements and preferences are always evolving. The only businesses that
can hope to remain competitive and continue to function at the performance
levels that match their customers’ expectations are those that embrace
innovation. In the recent past, any business success has been pegged on the
information technology quality that the business has employed and the
capability to correctly use such information.
Information systems (IS) importance has increased dramatically, and most
businesses have been prompted to introduce it to keep their competitive edge.
Today, nobody can envisage a business without an effective digital
information system. Introduction of an information system to a business can
bring numerous benefits and assist in the external and internal processes that
a business encounters daily, and decision-making for the future.
Main 4 Types of Information Systems Used In Organisations
 Low level workers – Transaction Processing Systems.
 Middle Managers – Management Information Systems.
 Senior Managers – Decision Support Systems.
 Executives – Executive Information Systems.

Components of information systems

An information system is essentially made up of five components hardware,
software, database, network and people. These five components integrate to
perform input, process, output, feedback and control.
1. Hardware consists of input/output device, processor, operating system and
media devices.
2. Software consists of various programs and procedures.
3. Database consists of data organized in the required structure.
4. Network consists of hubs, communication media and network devices.
5. People consist of device operators, network administrators and system
specialist.
Information processing consists of input; data process, data storage, output and
control.
During input stage data instructions are fed to the systems which during process
stage are worked upon by software programs and other queries.
During output stage, data is presented in structured format and reports.
Classification of Information System
In any given organization information system can be classified based on the usage
of the information. Therefore, an information system in an organization can be
divided into operations support system and management support system.
 Operations support system

In an organization, data input is done by the end user which is processed to

generate information products i.e. reports, which are utilized by internal and
or external users. Such a system is called operation support system.
The purpose of the operation support system is to facilitate business
transaction, control production, support internal as well as external
communication and update organization central database.
The operation support system is further divided into a transaction-
processing system, processing control system and enterprise collaboration
system.
 Transaction Processing System (TPS)
In manufacturing organization, there are several types of transaction across
department.
Typical organizational departments are Sales, Account, Finance, Plant,
Engineering, Human Resource and Marketing. Across which following
transaction may occur sales order, sales return, cash receipts, credit sales;
 credit slips, material accounting, inventory management, depreciation
accounting, etc.
These transactions can be categorized into batch transaction processing,
single transaction processing and real time transaction processing.
 Process Control System
In a manufacturing organization, certain decisions are made by a computer
system without any manual intervention. In this type of system, critical
information is fed to the system on a real-time basis thereby enabling
process control. This kind of systems is referred as process control systems.
 Enterprise Collaboration System
In recent times, there is more stress on team effort or collaboration across
different functional teams. A system which enables collaborative effort by
improving communication and sharing of data is referred to as an enterprise
collaboration system.
 Management Support System
Managers require precise information in a specific format to undertake an
organizational decision. A system which facilitates an efficient decision
making process for managers is called management support system.
Management support systems are essentially categorized as management
information system, decision support system, expert system and accounting
information system.
Management information system provides information to manager facilitating the
routine decision-making process. Decision support system provides information
to manager facilitating specific issue related solution.
Unit II
Introduction to Organization system
TPS,MIS,EIS,DSS & ES
TPS (Transaction Processing system)
A transaction processing system or TPS refers to an information processing
system used for business transactions that involve the retrieval, collection, and
modification of transaction data. It offers an execution environment that ensures
data availability, security, and integrity.

Different Types of Transaction Processing System?

1) Batch Processing: As the name suggests, the processing of transactions
takes place over batches. These batches can be customized as per
organization requirements.

2) Real-time Processing: Under real-time processing, every single

transaction is processed with immediate effect. There is no time delay in
the real-time processing system.

What Are the Benefits of Using a Transaction Processing System?

Transaction processing systems have notable advantages, which include:
Ability to Process Large Amounts of Data
Transaction processing systems are commonly used by organizations that handle
online transactions. The systems allow them to process thousands of purchases
by coordinating banking and personal details as well as process and ship orders
to the correct buyers. They make it easier for both the seller and the buyer to
manage purchases.
Capability to Handle Hardware and Security Issues
A TPS utilizes both software and hardware to manage thousands of business and
user data. It is, however, prone to security breaches, since most threat actors
always attempt to steal confidential information. A reliable transaction processing
system often has robust computer security that can prevent data breaches and
protect consumer information.
Types of Transaction Processing Systems?
There are at least four types of transansaction processing systems and they differ
in terms of primary function and application.
 Sales and Marketing Systems
A sales and marketing transaction processing system handles customer service,
sales management, promotion tracking, pricing changes, and dealer
communications. Examples include sales order information, sales commission,
and sales support systems.
Manufacturing and Production Systems
Manufacturing and production transaction processing systems manage
scheduling, purchasing, shipping or receiving, and operations processes.
Examples include machine control, purchase order, and quality control systems.
Finance and Accounting Systems
A finance and accounting transaction processing system tackles general ledger-,
billing-, and cost accounting-related operations. Examples include general ledger,
payroll, accounts receivable and payable, and funds management systems.
Human Resources (HR) Systems
HR transaction processing systems ease the management of personnel records,
benefits, compensations, labor relations, and training. Examples include
employee records, employee benefits, and employee skills inventory systems.

MIS (Management Information system)

Management Information Systems (MIS) is the study of people, technology,
organizations, and the relationships among them. MIS professionals help firms
realize maximum benefit from investment in personnel, equipment, and business
processes. MIS is a people-oriented field with an emphasis on service through
technology.
5 main types of management information systems?
 Transaction Processing Systems (TPS)
 Decision Support Systems (DSS)
 Executive Information Systems (EIS)
 Knowledge Management Systems (KMS)
 Enterprise Resource Planning (ERP)
Examples of management information systems in an organisation are process
control, office automation, enterprise resource planning, finance systems and
 management reporting. Next up, we'll take a closer look at industry-specific
management information systems for health, tourism and education.
4 steps of MIS
There are mainly four stages in the implementation of MIS in an organization,
such as: installing the new system, cutting off the old system, phasing in the new
system, and ensuring parallel operation of the existing and current systems.

EIS (Executive Information system)

An executive information system (EIS) is a decision support system (DSS) used
to assist senior executives in the decision-making process. It does this by
providing easy access to important data needed to achieve strategic goals in an
organization. An EIS normally features graphical displays on an easy-to-use
interface.
Examples of Intelligent Information
 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.

Characteristics of Executive Information System (EIS)

 Drill-Down Capabilities
 Designed with Management's Critical Success Factors In Mind
 Status Access, Trend Analysis and Exception Reporting
 Personalized Analysis
 Navigation of Information.

4 Things Executive Information Systems Must Have

 Visibility into Accurate Real-time Data.
 Consistent Performance Indicators.
 Unified and Automated Work Management and Reporting Efforts.
 User-friendly Executive Views.
 Cloud-Driven Accessibility.
 Importance of ESS in decision making
ESS help senior executives monitor firm performance, spot problems, identify
opportunities, and forecast trends. These systems can filter out extraneous details
for high-level overviews, or they can drill down to provide senior managers with
detailed transaction data if required.

Decision Support System

A decision support system (DSS) is a computer program application used to
improve a company's decision-making capabilities. It analyses large amounts of
data and presents an organization with the best possible options available.

Components of a decision support system

 Statistical models. These models are used to establish relationships between
events and factors related to that event. ...
 Sensitivity analysis models. These models are used for “what-if” analysis.
 Optimization analysis models. ...
 Forecasting models. ...
 Backward analysis sensitivity models.

Function of DSS
Decision support system (DSS) is a specific class of MIS system that helps the
manager at all stages of decision-making like problem identification, selection of
relevant data, picking up the right approach and examining alternatives.

Three phases of DSS

The phases are: Intelligence, Design, Choice, Implementation and Monitoring.
The choice of DSS design is decided on the basis of nature of the system and its
applications.

Characteristics of DSS
Organize information intended for use in decision making. Allows decision
maker to interact with it in a natural manner. Supports decisions involving
complex problems that are formulated as semi structured. Supports the decision
process that leads to a solution.

Two major DSS types

There are two basic types of DSS: data-driven DSS and model-driven DSS. The
earliest DSS were model-driven DSS, which were primarily standalone systems
that used some type of model to perform "what-if" and other kinds of analyses.

What is the life cycle of DSS?

The systems development life cycle (SDLC) approach is based on a series of
formal steps, including the following seven steps: 1) Confirm user requirements;
2) Systems analysis; 3) System design; 4) Programming; 5) Testing; 6)
Implementation; and 7) Use and Evaluation.

Expert system is a computer program that uses artificial intelligence (AI)

technologies to simulate the judgment and behaviour of a human or an
organization that has expertise and experience in a particular field. Expert
systems are usually intended to complement, not replace, human experts.
Components
An expert system has five basic components: knowledge base, inference engine,
explanation component, user interface, and acquisition component.
Components of Expert System
An expert system mainly consists of three components:
o User Interface
o Inference Engine
o Knowledge Base

Unit III
Information Systems Development
The process (activity) whereby a work activity or a larger organizational setting
is facilitated by introducing a new socio-technical information system or
modifying or expanding an existing one. ISD includes sub-activities of analysis,
design, development, implementation, and evaluation.
 Information system development consists of six important stages, it is system
survey, needs analysis, design, implementation, testing, change and maintenance.
5 systems development methods?
Systems development is often divided into five phases: preliminary investigation,
systems analysis, system design, system acquisition, and system implementation.

7 stages of system development life cycle?

The new seven phases of SDLC include planning, analysis, design,
development, testing, implementation, and maintenance.

SDLC provides a well-structured flow of phases that help an organization to

quickly produce high-quality software which is well-tested and ready for
production use. The SDLC involves six phases as explained in the introduction.
Popular SDLC models include the waterfall model, spiral model, and Agile
model.
In Course
Waterfall, Prototyping, RAD, JAD, Agile, SCRUM

Waterfall
The Waterfall methodology — also known as the Waterfall model — is a
sequential development process that flows like a waterfall through all phases of
a project (analysis, design, development, and testing, for example), with each
phase completely wrapping up before the next phase begins.
Waterfall methodology
 Analysis.
 Design.
 Implementation.
 Testing.
 Maintenance

Prototyping
Prototyping is an experimental process where design teams implement ideas into
tangible forms from paper to digital. Teams build prototypes of varying degrees
of fidelity to capture design concepts and test on users. With prototypes, you can
refine and validate your designs so your brand can release the right products.
3 types of prototyping?
There are several methods of industrial design prototyping: iterative, parallel,
competitive, and rapid. These different methods of prototyping produce varying
models of proof-of-concept during the product development process

Importance
Prototyping is the process of designing an optimal experience for target users. It
includes various stages that help designers, product owners or business analysts
to determine key concerns, including user needs, navigation, information
architecture, usability, accessibility, UI, or visual design.

What is a RAD model?

Definition: The Rapid Application Development (or RAD) model is based on
prototyping and iterative model with no (or less) specific planning. In general,
RAD approach to software development means putting lesser emphasis on
planning tasks and more emphasis on development and coming up with a
prototype.

RAD model uses

RAD should be used when there is a need to create a system that can be
modularized in 2-3 months of time. It should be used if there's high availability
of designers for modeling and the budget is high enough to afford their cost along
with the cost of automated code generating tools.

Phases
Stage 1: Business Modelling. Stage 2: Data Modelling. Stage 3: Process
Modelling. Stage 4: Application Generation.

JAD Model full form is Joint Application Development model. It aims to involve
and coordinate with client in design and development of an software

Agile modelling
Its a methodology for modelling and documenting software systems based on
best practices. It is a collection of values and principles, that can be applied on an
software development project.

Types
Agile methodology is a “step by step” dynamic focused on short-term visibility
but never losing the long-term product goal. There are 5 main Agile
 methodologies: Scrum, Kanban, Extreme Programming (XP), Lean Development
e Crystal.

SCRUM
What is scrum process model?
Scrum is an agile project management framework that helps teams structure and
manage their work through a set of values, principles, and practices.

Unit IV
Database Management
Data Modals
A data model is an abstract model that organizes elements of data and
standardizes how they relate to one another and to the properties of real-world
entities

Types of Data Modelling

 Hierarchical Data Model. Data Model.
 Entity-relationship (ER) Data Model.
 Object-oriented Data Model.
 Dimensional Data Model.

Advantages of Database Management System

 Reducing Data Redundancy. The file based data management systems contained
multiple files that were stored in many different locations in a system or even
across multiple systems. ...
 Sharing of Data. ...
 Data Integrity. ...
 Data Security. ...
 Privacy. ...
 Backup and Recovery. ...
 Data Consistency.
An Entity Relationship Diagram is a diagram that represents relationships among
entities in a database. It is commonly known as an ER Diagram. An ER Diagram

in DBMS plays a crucial role in designing the database.

There are two kinds of ER diagrams: conceptual and physical. Conceptual
diagram models can provide the foundation for logical data models or show
commonality relationships between ER models as a basis for data-model
integration.

This model is used to define the data elements and relationship for a specified
system. It develops a conceptual design for the database. It also develops a very
simple and easy to design view of data. In ER modelling, the database structure
is portrayed as a diagram called an entity-relationship diagram.

Uses ER Model
An entity-relationship diagram, or ER diagram, is essential for modelling the data
stored in a database. It is the basic design upon which a database is built. ER
diagrams specify what data we will store: the entities and their attributes. They
also show how entities relate to other entities.

A data flow model is diagrammatic representation of the flow and exchange of

information within a system. Data flow models are used to graphically represent
the flow of data in an information system by describing the processes involved in
transferring data from input to file storage and reports generation.

Types of Data Flow Diagrams: Logical vs Physical Data Models

There are two distinct types of data flow diagrams: the logical DFD and the
physical DFD

Logical
Physical Data Model

Entity
Entity. A single unique object in the real world that is being mastered. Examples
of an entity are a single person, single product, or single organization. Entity type.
A person, organization, object type, or concept about which information is stored.

What is a entity in database?

In a database management system (DBMS), an entity is a piece of data that is
stored in the database. An entity can be a person, place, thing, or even an event.
There are two types of entities in DBMS: strong and weak.

What is an entity in software?

An entity is any singular, identifiable and separate object. It refers to individuals,
organizations, and systems, bits of data or even distinct system components that
are considered significant in and of themselves.

Attributes
Attributes can be defined as characteristics of system entities. For example, CPU
Speed and Ram Size can be defined as computer attributes.

What is an attribute in a database?

In a database management system (DBMS), an attribute is a piece of data that
describes an entity. For example, in a customer database, the attributes might be
name, address, and phone number. In a product database, the attributes might be
name, price, and date of manufacture.

What is normalization in DBMS?

Normalization is the process of organizing data in a database. This includes
creating tables and establishing relationships between those tables according to
 rules designed both to protect the data and to make the database more flexible by
eliminating redundancy and inconsistent dependency

What is 1NF 2NF and 3NF in DBMS?

1NF, 2NF, and 3NF are the first three types of database normalization. They stand
for first normal form, second normal form, and third normal form, respectively.
There are also 4NF (fourth normal form) and 5NF (fifth normal form).

SQL stands for Structured Query Language. SQL lets you access and manipulate
databases. SQL became a standard of the American National Standards Institute
(ANSI) in 1986, and of the International Organization for Standardization (ISO)
in 1987.

SQL is used to communicate with a database. According to ANSI (American

National Standards Institute), it is the standard language for relational database
management systems. SQL statements are used to perform tasks such as update
data on a database, or retrieve data from a database.

3 types of SQL?
Data Definition Language (DDL) Statements. Data Manipulation Language
(DML) Statements. Transaction Control Statements.

What is SQL in DBMS?

Structured query language (SQL) is a programming language for storing and
processing information in a relational database. A relational database stores
information in tabular form, with rows and columns representing different data
attributes and the various relationships between the data values.

SQL skills help data experts maintain, create and retrieve information from
relational databases, which separate data into columns and rows. It also allows
them to access, update, manipulate, insert and modify data efficiently.

How to use SQL in Excel?

How to Create an Excel Connection
1. Click on Get Data. Select “From Database”
2. Select From SQL Server database.
3. Enter the SQL Server Name. Optionally, you can enter the database name here if
you know it. Otherwise, you will be able to select the database in a future step.
Unit 6
Enterprise Applications
Process view of organising, problems of functional definition, operational
advantage of enterprise wide applications.

Enterprise applications are designed to integrate computer systems that run all
phases of an enterprise's operations to facilitate cooperation and coordination of
work across the enterprise.

What is enterprise application examples?

 Some examples of enterprise applications include enterprise Dynamics 365
(resource planning (ERP) system), WordPress (content management system),
Bamboo HR (Human resources management system)

There are four major enterprise applications:

 Enterprise systems.
 Supply chain management systems.
 Customer relationship management systems.
 Knowledge management systems.

What are the Challenges Involved in the Implementation of ERP in an

Organization?
 Determining the Processes that should be integrated.
 Resistance by the Organization's Teams to Change.
 Lack of Flexibility.
 Costs Involved in Maintenance.
 Issues Related to Data Migration.
 Poor Project Management.

5 Functional Areas That an ERP System can automate

 Finance, Accounting, Payables and Receivables. Virtually every organization
that invests in an ERP system does so in order to gain greater control over their
financial operation. ...
 Customer Service. ...
 Supply Chain Management. ...
 Order Processing. ...
 Human Resources. ...
 Project Management.

Benefits and Advantages of Enterprise Application Integration (EAI)

 Control and connection of your company. ...
 It simplifies business processes. ...
 Enterprise Application Integration reduces costs and investments. ...
 It encourages information exchange. ...
 It lowers time and efforts. ...
 Increase of advantages and opportunities.

Unit 7
Enterprise Resource Planning (ERP)
Overview – Finance & Accounting, Manufacturing, Sales & Distribution, HR

Enterprise resource planning (ERP) is a software system that helps you run your
entire business, supporting automation and processes in finance, human
resources, manufacturing, supply chain, services, procurement, and more.

For example, in the supply chain industry, an ERP system could automatically
run a financial analysis and predict future stock needs to keep inventory at a
healthy level. This process control ensures that the manufacturing department is
performing at optimal capacity and in-demand products are in stock
 Types Of ERP
 On-premise ERP system. On-premises ERP systems are installed at the
company's headquarters and typically include features such as warehouse
management, order processing, customer relationship management (CRM),
product tracking, and accounting. ...
 Cloud-based ERP system. ...
 Hybrid ERP.

What is enterprise resource planning in accounting?

Enterprise resource planning (ERP) refers to a type of software that organizations
use to manage day-to-day business activities such as accounting, procurement,
project management, risk management and compliance, and supply chain
operations.

ERP for accounting management includes time-saving features like inbuilt

workflows; they automate your accounting and streamline the process of data
entry. It also improves the management of cash, resolves problems with cash
flows, and simplifies complex accounts payable and accounts receivables
activities.

 Key Features
o 1. Profit Tracking
o 2. Ledger Management
o 3. Accounts Payable
o 4. Accounts Receivable
o 5. Fixed Asset Management
o 6. Risk Management
o 7. Reporting
o 8. Multi-Currency Management
o 9. Tax Management

ERP-Manufacturing
In an industry such as manufacturing, where efficiency is constantly sought yet
difficult to find, enterprise resource planning (ERP) can be a game-changer.
Manufacturing ERP is a centralized method of managing every aspect of facility
operations and processes, from production to payroll. ERP allows for
unprecedented visibility, coordination and management across the disparate
processes that make up a business — ultimately resulting in greater operational
efficiency.

ERP affect the manufacturing industry.

 Reduce Costs

A robust ERP software helps manufacturing organizations to reduce the overall

operational cost as manual, time – consuming processes are replaced by
automated, streamlined processes with real time business information.

Benefits of ERP in manufacturing

ERP brings sanity to production, sales, procurement, and inventory plans. It helps
you generate forecasts and sales reports based on historical transactions. This
avoids problems by minimizing out-of-stock or excess inventory situations.

Most common ERP system used in manufacturing

Oracle ERP Cloud is a popular ERP solution amongst manufacturers, particularly
in process industries. ERP Cloud offers integrated functionality across large
enterprises including supply chain, production, HCM, financials and more.

key functions of ERP

ERP provides the ability to automate repeatable business tasks, such as payroll,
order processing, invoicing, reporting and more. Automation minimizes the time
spent on manual data entry, reduces errors and lets employees focus on more
value-added tasks

What are the 6 main benefits of ERP?

Here are the benefits of ERP systems:
 Eliminates manual reports. ...
 Reduced operation costs. ...
 Improved communication and collaboration. ...
 Better financial planning. ...
 Improved data security. ...
 Improved customer service.

Which industries are using ERP?

Which industries uses ERP systems?
 Manufacturing.
 Distribution.
 Professional Services.
 Construction.
 Industrial Services.
 Service Business.
 Healthcare.
 Automotive Parts

What are the three largest companies providing ERP software?

The big three: SAP, Oracle NetSuite & Microsoft Dynamics 365 Business
Central.

HR
ERP used in HRM.
A modern ERP system can aid an organization with most HR tasks—from basic
workforce and payroll management to using analytics tools to track employee
performance, assist staff training and development, and support recruitment
functions.

There are three main types of ERP systems that function with different
deployment model options. The most common types of ERP systems
include cloud ERP, on premise ERP, and hybrid ERP.

ERP important for employees?

ERP training enables staff to complete tasks more quickly, resulting in an overall
increase in productivity. Time savings – Employees who have received online or
classroom-based QAD ERP training will better understand how to interact with
the system to accomplish their tasks.

Types

Enterprise Resource Planning software can be divided into four different

categories. Box ERPs, Large Scale ERPs, Intermediate and Flexible ERPs, and
Industry Specific ERPs. This categorization helps in understanding the landscape
of the current ERP systems market.

Sales & Distribution

Role of ERP in sales and distribution

ERP software automates sales order processing and the generation of shipping
orders. It can eliminate delays while providing full control, from setting rules and
credit limits to managing multiple warehouses and drop shipments.

Enterprise Resource Planning (ERP) systems are business management platforms

that businesses, manufacturers, and distributors use to collect, store, manage, and
communicate data across all functions of the enterprise.
Enterprise Resource Planning (ERP) is software used by organizations to
integrate multiple business functions into one system. It includes various
activities, such as accounting, human resources, project management, sales,
inventory and order management, and compliance.

Advantages of ERP. Higher management performance. Better accuracy and

availability of information. Improved coordination. Precise planning. Enhanced
reports. ...
Disadvantages of ERP. Large cost of licensing and development. High costs to
deploy and maintain. Requires training and practice. Requires tweaking. ...
Outcome.

1. Advantages of ERP
1. Higher management performance
2. Better accuracy and availability of information
3. Improved coordination
4. Precise planning
5. Enhanced reports
6. Scalability and flexibility
7. Cost-effectiveness
8. Easier access to management systems
9. Improved customer service
10. Better competitiveness on the market
2. Disadvantages of ERP
1. Large cost of licensing and development
2. High costs to deploy and maintain
3. Requires training and practice
4. Requires tweaking
5. It takes time to realize its full potential
Unit 8
CRM Applications
IS Security, IS vulnerability & computer/cybercrime, protecting information
systems