UNIT 1

INFORMATION SYSTEM
1) INTRODUCTION TO INFORMATION SYSTEM THE MANAGEMENT,
STRUCTURE AND ACTIVITIES-

"Introduction to Information Systems" typically covers the foundational concepts of

information systems (IS) in a business context. This would involve exploring the
management, structure, and activities related to IS. Here's a breakdown:

1. Management of Information Systems:

• Role of IS in Management:
o Support decision-making, coordination, control, analysis, and visualization in
an organization.
• IS Management Challenges:
o Aligning IS with business goals, ensuring data security, managing change, and
handling technological updates.
• Strategic Importance:
o Using IS for competitive advantage, enhancing productivity, and enabling
innovation.
• Governance and Ethics:
o Policies for managing IS resources, ensuring data privacy, and ethical
considerations in IS management.

2. Structure of Information Systems:

• Components of IS:
o Hardware: Physical devices like computers, servers, and networking
equipment.
o Software: Applications and operating systems that process data.
o Data: Information processed by the system, including databases.
o Networks: Connectivity infrastructure like the internet and intranets.
o People: Users and IS professionals who interact with the system.
o Processes: Procedures and rules governing the use of IS.
• Types of Information Systems:
o Transaction Processing Systems (TPS): Handle day-to-day operations.
o Management Information Systems (MIS): Provide middle managers with
reports on organizational performance.
o Decision Support Systems (DSS): Assist in decision-making with analytical
models.
o Executive Information Systems (EIS): Provide top executives with data for
strategic decisions.
o Enterprise Systems: Integrated software platforms that manage all of an
organization's data and processes.
• IS Architecture:
o Centralized vs. Decentralized systems.
o Client-server models.
 o Cloud-based infrastructure.

3. Activities in Information Systems:

• Data Collection and Storage:

o Methods for gathering, validating, and storing data.
• Processing and Analysis:
o Transforming raw data into meaningful information using various tools and
techniques.
• Information Distribution:
o Disseminating processed information to relevant stakeholders through reports,
dashboards, and other communication tools.
• Security and Risk Management:
o Protecting data integrity, ensuring confidentiality, and managing risks
associated with IS.
• Maintenance and Support:
o Ongoing activities to ensure system uptime, update software, and support
users.
• Innovation and Development:
o Developing new IS capabilities to meet evolving business needs, including
software development and process automation.

2) INFORMATION NEEDS AND SOURCES.

Understanding information needs and sources is essential in various contexts, including

academic research, business decision-making, and day-to-day problem-solving. Here's an
overview:

1. Information Needs:

• Definition:
o Information needs refer to the specific requirements for data or knowledge that
an individual or organization seeks to fulfill a particular purpose or solve a
problem.
• Types of Information Needs:
o Personal Information Needs:
▪ Information for personal decision-making, such as health, finance, or
lifestyle choices.
o Professional Information Needs:
▪ Data required to perform job functions effectively, including industry
trends, technical knowledge, and company data.
o Academic Information Needs:
▪ Scholarly resources required for research, including theories,
methodologies, and empirical data.
o Business Information Needs:
▪ Information needed to make informed business decisions, including
market research, financial data, and competitive analysis.
• Characteristics of Information Needs:
o Specificity:
 ▪ The degree of detail required (broad or narrow scope).
o Timeliness:
▪ The relevance of the information concerning time (current vs.
historical data).
o Relevance:
▪ The applicability of the information to the specific need or context.
o Accuracy:
▪ The correctness and reliability of the information.
o Accessibility:
▪ The ease with which the information can be obtained.
• Determining Information Needs:
o Problem Identification:
▪ Clearly define the issue or question that requires information.
o Audience Analysis:
▪ Understand who needs the information and their specific requirements.
o Purpose Definition:
▪ Determine the goal of gathering information (e.g., decision-making,
learning, problem-solving).

2. Information Sources:

• Primary Sources:
o Definition:
▪ Original, uninterpreted data or firsthand evidence.
o Examples:
▪ Research articles, interviews, surveys, official documents, patents, and
eyewitness accounts.
o Use Cases:
▪ Academic research, original investigations, creating new knowledge.
• Secondary Sources:
o Definition:
▪ Interpretations, analyses, or summaries of primary sources.
o Examples:
▪ Review articles, textbooks, news reports, literature reviews, and
commentaries.
o Use Cases:
▪ Gaining an overview of a topic, understanding the context, or
supporting primary research with established knowledge.
• Tertiary Sources:
o Definition:
▪ Aggregated and distilled information from primary and secondary
sources.
o Examples:
▪ Encyclopedias, databases, handbooks, and directories.
o Use Cases:
▪ Quick reference, general education, or initial exploration of a topic.
• Digital and Online Sources:
o Definition:
▪ Information accessible through electronic means, including the internet
and digital libraries.
 o Examples:
▪ Websites, online databases, e-books, social media, and digital archives.
o Use Cases:
▪ Fast access to information, real-time updates, and wide dissemination
of content.
• Informal Sources:
o Definition:
▪ Unofficial or casual sources of information, often based on personal
experience or observation.
o Examples:
▪ Conversations, blogs, forums, and social networks.
o Use Cases:
▪ Gaining insights from personal perspectives, community opinions, or
niche topics.

3. Choosing the Right Sources:

• Relevance:
o Ensure the source directly addresses the information need.
• Credibility:
o Evaluate the trustworthiness of the source, considering the author's expertise
and the publication's reputation.
• Currency:
o Check that the information is up-to-date, especially for time-sensitive topics.
• Depth:
o Consider the level of detail provided by the source and whether it meets the
complexity of the need.
• Accessibility:
o Ensure the source is readily available, whether online, in a library, or through
other means.

3) TYPES OF MANAGEMENT DECISIONS AND INFORMATION NEED.

Management decisions are critical in guiding an organization's actions and strategies. These
decisions are often categorized based on the level at which they are made and the nature of
the issues they address. Each type of management decision requires specific types of
information to be effective. Here's an overview:

1. Types of Management Decisions:

• Strategic Decisions:
o Definition:
▪ High-level decisions that set the overall direction for the organization,
usually made by top management (e.g., CEOs, board of directors).
o Characteristics:
▪ Long-term impact, broad scope, high risk, and uncertainty.
o Examples:
▪ Expanding into new markets, mergers and acquisitions, launching new
product lines, or major capital investments.
 o Information Needs:
▪ External Information:
▪ Market trends, competitor analysis, economic forecasts,
regulatory changes, and technological advancements.
▪ Internal Information:
▪ Organizational capabilities, financial performance, resource
availability, and strategic goals.
• Tactical Decisions:
o Definition:
▪ Mid-level decisions that translate strategic goals into specific actions,
typically made by middle management (e.g., department heads,
regional managers).
o Characteristics:
▪ Medium-term focus, more specific scope, and moderate risk.
o Examples:
▪ Developing marketing campaigns, resource allocation for projects,
pricing strategies, or improving operational efficiency.
o Information Needs:
▪ External Information:
▪ Customer preferences, supplier capabilities, market
segmentation data, and industry benchmarks.
▪ Internal Information:
▪ Budget constraints, departmental performance metrics, staff
capabilities, and project timelines.
• Operational Decisions:
o Definition:
▪ Day-to-day decisions that manage routine activities and ensure smooth
operations, usually made by lower-level management (e.g.,
supervisors, team leaders).
o Characteristics:
▪ Short-term focus, narrow scope, low risk, and repetitive nature.
o Examples:
▪ Scheduling work shifts, managing inventory, responding to customer
inquiries, or addressing employee issues.
o Information Needs:
▪ External Information:
▪ Supplier delivery schedules, customer feedback, and local
regulations.
▪ Internal Information:
▪ Daily sales data, employee attendance, inventory levels, and
equipment status.

2. Information Needs for Different Types of Decisions:

• Timeliness:
o Strategic decisions require information that is often forward-looking, such as
forecasts and long-term trends.
o Tactical decisions benefit from up-to-date data, like recent sales figures or
current customer preferences.
 o Operational decisions rely on real-time or near-real-time information, such as
daily performance reports or immediate resource availability.
• Relevance:
o Information must be directly applicable to the decision at hand. For example,
strategic decisions require broader, high-level data, while operational
decisions need detailed, specific information.
• Accuracy and Reliability:
o The precision of information is crucial at all levels, but the tolerance for error
may vary. Strategic decisions can sometimes afford a degree of uncertainty,
while operational decisions often require highly accurate information.
• Depth and Detail:
o Strategic decisions may rely on summarized, high-level reports, while
operational decisions might require granular details, such as individual
transaction records or specific employee performance data.
• Source of Information:
o Internal Sources:
▪ Include financial records, performance reports, employee feedback,
and internal databases. These are essential for all types of decisions but
are particularly crucial for tactical and operational decisions.
o External Sources:
▪ Include market research, industry reports, competitor analysis, and
customer feedback. These are vital for strategic and some tactical
decisions.
• Frequency:
o Strategic decisions might need quarterly or annual information, tactical
decisions may require monthly or weekly data, and operational decisions
typically need daily or even hourly updates.

3. Examples of Decision-Making Scenarios:

• Strategic:
o A company deciding to enter a new international market would need extensive
external information, including market potential, legal regulations, and
cultural factors, as well as internal information like financial capacity and
readiness for expansion.
• Tactical:
o A marketing manager planning a new advertising campaign would need
detailed customer segmentation data, previous campaign performance, budget
allocations, and timelines.
• Operational:
o A production supervisor adjusting daily work schedules due to a sudden
increase in orders would require real-time inventory levels, employee
availability, and machine performance data.

4) SYSTEM CLASSIFICATION ELEMENTS OF SYSTEM, INPUT, OUTPUT,

PROCESS AND FEEDBACK.
When studying systems, particularly in the context of information systems or general systems
theory, it's crucial to understand how systems are classified and the fundamental elements
that constitute them. Here's an overview:

1. System Classification:

Systems can be classified based on various criteria:

• Based on Interaction with Environment:

o Open Systems:
▪ Interact with their environment, exchanging matter, energy, or
information. Examples include biological organisms, organizations,
and ecosystems.
o Closed Systems:
▪ Have little to no interaction with their environment, operating
independently. These are more theoretical and rare in practice, with an
example being a sealed mechanical clock.
• Based on Complexity:
o Simple Systems:
▪ Have few components and straightforward relationships between them.
Example: A basic mechanical device.
o Complex Systems:
▪ Consist of many interconnected components with intricate interactions.
Example: The human body, a large corporation, or a global network.
• Based on Purpose:
o Natural Systems:
▪ Occur naturally without human intervention. Example: Solar systems,
ecosystems.
o Man-made (Artificial) Systems:
▪ Created by humans to achieve specific goals. Example: Information
systems, transportation networks.
• Based on Functionality:
o Deterministic Systems:
▪ Operate in a predictable manner with known inputs leading to specific
outputs. Example: A computer program with a set algorithm.
o Probabilistic Systems:
▪ Operate in an uncertain manner, where outcomes are based on
probability. Example: Stock markets, weather forecasting models.

2. Elements of a System:

A system consists of several fundamental elements:

• Input:
o Definition:
▪ The resources, data, or signals that are fed into the system to be
processed.
o Examples:
▪ In a computer system: raw data entered through a keyboard.
▪ In an ecosystem: sunlight and nutrients for plants.
• Process (Transformation):
o Definition:
▪ The mechanism or set of actions the system performs to convert inputs
into outputs.
o Examples:
▪ In a computer system: data processing by the CPU.
▪ In an ecosystem: photosynthesis in plants converting sunlight into
energy.
• Output:
o Definition:
▪ The final product, result, or outcome generated by the system after
processing the inputs.
o Examples:
▪ In a computer system: processed data displayed on the screen.
▪ In an ecosystem: oxygen and glucose produced by plants.
• Feedback:
o Definition:
▪ Information about the output that is fed back into the system to
influence future inputs or processes, often used for self-regulation or
control.
o Types:
▪ Positive Feedback: Reinforces or amplifies the output. Example: In
business, increased sales lead to more advertising, which further
increases sales.
▪ Negative Feedback: Counteracts changes to maintain equilibrium.
Example: A thermostat regulating temperature.
o Examples:
▪ In a computer system: error messages guiding the user to correct
mistakes.
▪ In an ecosystem: population control where a predator population grows
when prey is abundant, then decreases as prey becomes scarce.
• Control:
o Definition:
▪ Mechanisms or rules that govern the operation of the system, ensuring
it functions as intended.
o Examples:
▪ In a manufacturing system: quality control checks.
▪ In an organization: management policies and procedures.
• Environment:
o Definition:
▪ The external context or surroundings in which the system operates and
interacts.
o Examples:
▪ In a business system: market conditions, regulatory environment.
▪ In a natural system: climate, geographical features.
• Boundary:
o Definition:
▪ The limits that define the scope of the system and distinguish it from
its environment.
o Examples:
 ▪ In a computer system: the physical casing of the computer.
▪ In an organization: company policies that define internal processes
versus external relations.

3. Interactions Between System Elements:

• Input → Process → Output:

o This is the fundamental flow within any system, where inputs are transformed
through processes to produce outputs.
o Example: In a manufacturing system, raw materials (input) are processed
through machinery (process) to produce finished goods (output).
• Feedback Loop:
o Outputs are evaluated, and feedback is provided to adjust future inputs or
processes, ensuring the system remains aligned with its goals.
o Example: In an organizational system, customer feedback (output) is analyzed
to improve product development (process) for future iterations.

4. Examples of Systems in Different Contexts:

• Information System:
o Input: Data entered by users.
o Process: Data processing, storage, and retrieval by software.
o Output: Processed information, reports, or visualizations.
o Feedback: User feedback or error logs that help refine the system.
• Biological System (e.g., Human Body):
o Input: Food, water, oxygen.
o Process: Digestion, respiration, circulation.
o Output: Energy, waste products.
o Feedback: Hormonal regulation, nervous system responses to maintain
homeostasis.
• Mechanical System (e.g., Car Engine):
o Input: Fuel, air.
o Process: Combustion.
o Output: Mechanical energy, exhaust gases.
o Feedback: Engine control unit (ECU) adjusts fuel injection based on
performance.

Understanding these elements and their interactions helps in analyzing, designing, and
managing systems across various disciplines.

UNIT 2

1) TRANSACTION PROCESSING INFORMATION SYSTEM, OFFICE

AUTOMATION SYSTEM (OAS) - KNOWLEDGE WORKERS SYSTEM(KWS);
MIS; INFORMATION SYSTEM FOR MANAGERS, INTELLIGENCE
INFORMATION SYSTEM –DECISION SUPPORT SYSTEM-EXECUTIVE
INFORMATION SYSTEMS
Understanding different types of information systems is crucial for effectively managing an
organization’s resources, operations, and decision-making processes. Here’s a detailed
overview of various information systems:

1. Transaction Processing System (TPS):

• Definition:
o A Transaction Processing System (TPS) is designed to handle a large volume
of routine, day-to-day business transactions. It records, processes, and stores
data resulting from these transactions.
• Purpose:
o Automate repetitive tasks, ensure accurate data collection, and support the
operational level of the organization.
• Examples:
o Point-of-Sale (POS) Systems: Used in retail stores to record sales
transactions.
o Payroll Systems: Handle employee salary calculations and payments.
o Order Processing Systems: Manage customer orders, from receipt to
delivery.
• Key Features:
o High reliability, consistency, and real-time processing capability.
o Ensures data integrity and provides a foundation for other types of information
systems.

2. Office Automation System (OAS):

• Definition:
o An Office Automation System (OAS) helps in managing office information
and improving productivity by automating routine clerical tasks.
• Purpose:
o Facilitate communication, streamline document management, and support
routine office tasks.
• Examples:
o Word Processing Software: Microsoft Word, Google Docs.
o Email Systems: Microsoft Outlook, Gmail.
o Spreadsheets: Microsoft Excel, Google Sheets.
o Electronic Calendars: Outlook Calendar, Google Calendar.
• Key Features:
o Enhances collaboration, document sharing, and communication.
o Supports the day-to-day operations of office workers and managers.

3. Knowledge Work System (KWS):

• Definition:
o A Knowledge Work System (KWS) is designed to support knowledge workers
in creating and disseminating new knowledge within the organization.
• Purpose:
 o Facilitate the creation, modification, and sharing of knowledge, often in
specialized fields like engineering, research, or design.
• Examples:
o Computer-Aided Design (CAD) Systems: Used by engineers and architects.
o Scientific Research Systems: Tools for data analysis in research labs.
o Content Management Systems (CMS): Platforms for creating and managing
digital content.
• Key Features:
o High-level computing power, sophisticated software for specific tasks, and
advanced information storage and retrieval capabilities.
o Focuses on innovation, problem-solving, and knowledge dissemination.

4. Management Information System (MIS):

• Definition:
o A Management Information System (MIS) provides managers with the
information needed to make informed decisions by processing data from
various organizational sources.
• Purpose:
o Support decision-making, coordination, and control by providing regular
reports and summaries of business operations.
• Examples:
o Sales Reporting Systems: Track and report sales performance.
o Inventory Control Systems: Monitor stock levels and usage.
o Human Resource Management Systems (HRMS): Manage employee
records and payroll.
• Key Features:
o Regularly scheduled reports (e.g., daily, weekly, monthly).
o Aggregates data from TPS and other sources to produce meaningful insights.
o Supports middle management in tactical decision-making.

5. Information System for Managers:

• Definition:
o These systems are designed specifically to assist managers at various levels—
strategic, tactical, and operational—in making decisions and managing the
organization.
• Purpose:
o Provide relevant, timely, and accurate information to support decision-making
processes.
• Examples:
o Budgeting Systems: Help managers plan and monitor budgets.
o Performance Management Systems: Track key performance indicators
(KPIs) across departments.
o Strategic Planning Systems: Assist in long-term business planning.
• Key Features:
o Tailored reporting and analysis tools for different management levels.
o Integration with other business systems like MIS, TPS, and DSS.

6. Intelligent Information System:

 • Definition:
o Intelligent Information Systems use artificial intelligence (AI) and machine
learning techniques to simulate human decision-making processes.
• Purpose:
o Enhance decision-making by providing predictive analytics, pattern
recognition, and automated reasoning.
• Examples:
o Expert Systems: Mimic the decision-making abilities of a human expert in a
specific domain.
o Natural Language Processing (NLP) Systems: Understand and process
human language (e.g., chatbots, virtual assistants).
o Machine Learning Systems: Analyze data patterns to make predictions or
decisions.
• Key Features:
o Ability to learn from data and improve over time.
o Provides advanced decision support beyond traditional systems.

7. Decision Support System (DSS):

• Definition:
o A Decision Support System (DSS) assists managers in making decisions by
analyzing large volumes of data and providing interactive tools for exploring
different scenarios.
• Purpose:
o Support complex decision-making, often in situations where there is
uncertainty or multiple alternatives.
• Examples:
o Financial Planning Systems: Help in investment decision-making by
analyzing market trends and projecting future outcomes.
o Supply Chain Management Systems: Optimize logistics and inventory
decisions.
o What-If Analysis Tools: Allow managers to explore different business
scenarios and their potential impacts.
• Key Features:
o Interactive, user-friendly interfaces.
o Support for ad hoc queries and real-time analysis.
o Integration with other business systems and external data sources.

8. Executive Information System (EIS):

• Definition:
o An Executive Information System (EIS) is a specialized DSS designed for top
executives, providing a high-level overview of the organization’s performance
and key metrics.
• Purpose:
o Facilitate strategic decision-making by providing concise, relevant information
on key performance indicators (KPIs) and other critical data.
• Examples:
o Dashboard Systems: Provide a visual summary of company performance
metrics.
 o Balanced Scorecard Systems: Track performance across multiple
dimensions, such as financial, customer, internal processes, and
learning/growth.
o Strategic Alert Systems: Notify executives of critical events or trends.
• Key Features:
o Highly visual and easy-to-understand reports.
o Drill-down capabilities to explore details from high-level summaries.
o Real-time access to critical data for rapid decision-making.

UNIT 3

1) FUNCTIONAL MANAGEMENT INFORMATION SYSTEM: PRODUCTION /

OPERATIONS INFORMATION SYSTEM, MARKETING INFORMATION
SYSTEMS, ACCOUNTING INFORMATION SYSTEM, FINANCIAL
INFORMATION SYSTEM, HUMAN RESOURCE INFORMATION SYSTEM.

A Functional Management Information System (FMIS) refers to specialized information

systems designed to support specific functional areas within an organization. Each functional
area, such as production, marketing, accounting, finance, and human resources, has its own
tailored MIS that helps managers make informed decisions, streamline operations, and
improve overall efficiency.

1. Production/Operations Information System:

• Definition:
o A Production/Operations Information System (P/OMIS) focuses on managing
and optimizing the production processes and operations of an organization. It
helps in planning, controlling, and monitoring production activities to ensure
efficient use of resources and timely delivery of products.
• Purpose:
o Improve production efficiency, reduce waste, manage inventory, and ensure
that production schedules are met.
• Key Functions:
o Production Planning: Helps in forecasting demand, scheduling production,
and managing resources.
o Inventory Management: Tracks inventory levels, orders, and usage to
prevent overstocking or stockouts.
o Quality Control: Monitors product quality and compliance with standards.
o Supply Chain Management: Manages the flow of materials and information
across the supply chain.
• Examples:
o Manufacturing Resource Planning (MRP II): Integrates production
planning and control with inventory management and procurement.
o Computer-Aided Manufacturing (CAM): Automates manufacturing
processes using computer technology.

2. Marketing Information System (MkIS):

• Definition:
 o A Marketing Information System (MkIS) collects, analyzes, and distributes
marketing data to support decision-making processes in the marketing
function. It helps in understanding customer needs, monitoring market trends,
and planning marketing strategies.
• Purpose:
o Improve marketing effectiveness, target the right audience, enhance customer
satisfaction, and increase market share.
• Key Functions:
o Market Research: Gathers data on market trends, customer preferences, and
competitor activities.
o Sales Analysis: Tracks sales performance, identifies successful products, and
monitors sales channels.
o Customer Relationship Management (CRM): Manages customer
interactions, loyalty programs, and customer service.
o Promotion and Advertising: Plans and monitors the effectiveness of
marketing campaigns.
• Examples:
o CRM Systems: Salesforce, HubSpot.
o Market Analysis Tools: Google Analytics, Nielsen.

3. Accounting Information System (AIS):

• Definition:
o An Accounting Information System (AIS) is designed to collect, store, and
process financial and accounting data. It supports the accounting function by
ensuring accurate financial reporting and compliance with regulatory
requirements.
• Purpose:
o Facilitate accurate financial reporting, ensure regulatory compliance, and
provide financial insights for decision-making.
• Key Functions:
o General Ledger Management: Records all financial transactions and
summarizes them in the general ledger.
o Accounts Payable/Receivable: Manages the organization’s liabilities and
receivables, ensuring timely payments and collections.
o Payroll Processing: Calculates and processes employee salaries, taxes, and
benefits.
o Financial Reporting: Generates financial statements, such as balance sheets,
income statements, and cash flow statements.
• Examples:
o ERP Accounting Modules: SAP, Oracle Financials.
o Stand-Alone Accounting Software: QuickBooks, Xero.

4. Financial Information System (FIS):

• Definition:
o A Financial Information System (FIS) provides information necessary for
financial planning, analysis, and decision-making. It helps in managing the
organization’s financial resources and supports investment, funding, and risk
management activities.
 • Purpose:
o Optimize financial performance, manage risks, and ensure that the
organization meets its financial goals.
• Key Functions:
o Budgeting and Forecasting: Helps in preparing financial budgets and
predicting future financial performance.
o Investment Analysis: Assesses the profitability and risk of investment
opportunities.
o Cash Management: Monitors cash flows, liquidity, and working capital.
o Financial Risk Management: Identifies, analyzes, and mitigates financial
risks, such as currency fluctuations or interest rate changes.
• Examples:
o Treasury Management Systems (TMS): Kyriba, Reval.
o Financial Planning Software: Adaptive Insights, Anaplan.

5. Human Resource Information System (HRIS):

• Definition:
o A Human Resource Information System (HRIS) is designed to manage and
streamline various HR functions, including recruitment, payroll, performance
management, and employee data management.
• Purpose:
o Improve HR efficiency, enhance employee management, ensure compliance
with labor laws, and support strategic HR planning.
• Key Functions:
o Employee Data Management: Stores and manages employee records, such
as personal details, job history, and compensation.
o Recruitment and Onboarding: Manages job postings, applicant tracking,
and the onboarding process for new hires.
o Payroll and Benefits Administration: Automates payroll processing,
benefits management, and tax compliance.
o Performance Management: Tracks employee performance, manages
appraisals, and supports employee development programs.
• Examples:
o HRIS Software: Workday, SAP SuccessFactors, ADP.
o Talent Management Systems: Cornerstone OnDemand, BambooHR.

Integration of Functional Management Information Systems:

While each functional area has its specialized information system, organizations often
integrate these systems into a comprehensive Enterprise Resource Planning (ERP) system.
An ERP system centralizes data from various functional areas, allowing for better
coordination, data consistency, and real-time decision-making across the organization.

UNIT 4

1) System Analysis And Design: The Work Of A System Analyst- SDLC-System Design – AGILE
Model – Waterfall Model – Spiral Model – Iterative And Incremental Model - RAD Model -
Requirement Analysis-Data Flow Diagram, Relationship Diagram, Design- Implementation-
 Evaluation And Maintenance Of MIS, Database System: Overview Of Database -
Components-Advantages And Disadvantages Of Database; Data Warehousing And Data
Mining; Business Intelligence; Artificial Intelligence; Expert System; Big Data; Cyber Safety
And Securitycryptography; RSA Model Of Encryption; Data Science - Block Chain
Technology; E-Commerce And E-Business Models; IOT - RFID.

Here’s a detailed overview of the various topics related to System Analysis and Design,
Database Systems, and emerging technologies:

1. System Analysis and Design:

System analysis and design focus on understanding and specifying the details of how an
information system should operate and be implemented to meet organizational needs.

a. The Work of a System Analyst:

• Definition:
o A system analyst is responsible for analyzing business problems, designing IT
solutions, and ensuring that the system meets the needs of the users.
• Key Responsibilities:
o Requirement Gathering: Understand business needs and requirements through
interviews, questionnaires, and observation.
o System Design: Create detailed design specifications for the system, including data
models, process flows, and interfaces.
o Coordination: Work with developers, testers, and stakeholders to ensure the system
is built according to specifications.
o Documentation: Produce documentation for the system, including design
documents, user manuals, and training materials.
o Testing and Validation: Ensure the system functions as intended by conducting and
overseeing testing.

b. Systems Development Life Cycle (SDLC):

• Definition:
o The SDLC is a structured approach to system development that divides the process
into distinct phases: planning, analysis, design, implementation, testing, deployment,
and maintenance.
• Phases:
1. Planning: Define the scope, objectives, and feasibility of the project.
2. Analysis: Gather detailed requirements and create functional specifications.
3. Design: Create system architecture, data models, and interface designs.
4. Implementation: Develop the system by writing code and integrating components.
5. Testing: Validate the system against requirements and fix defects.
6. Deployment: Roll out the system to users and provide training.
7. Maintenance: Monitor the system, fix issues, and update as needed.

c. System Design:

• Definition:
o System design is the process of defining the architecture, components, modules,
interfaces, and data to satisfy specified requirements.
 • Key Components:
o Logical Design: Focuses on data flow, inputs/outputs, and system architecture.
o Physical Design: Focuses on the actual hardware, software, network infrastructure,
and databases.

d. Software Development Models:

• AGILE Model:
o Definition: A flexible and iterative approach to software development that
emphasizes customer collaboration, responsiveness to change, and continuous
delivery.
o Key Characteristics:
▪ Iterative development, continuous feedback, and adaptive planning.
▪ Popular methodologies: Scrum, Kanban.
• Waterfall Model:
o Definition: A linear and sequential approach where each phase must be completed
before the next begins.
o Key Characteristics:
▪ Simple and easy to manage but lacks flexibility for changes.
• Spiral Model:
o Definition: Combines iterative development with systematic aspects of the waterfall
model. It involves repeated iterations (or spirals) through the phases of planning, risk
analysis, engineering, and evaluation.
o Key Characteristics:
▪ Focus on risk analysis and user feedback at each iteration.
• Iterative and Incremental Model:
o Definition: Development is done in small increments with each iteration refining the
system until the complete system is built.
o Key Characteristics:
▪ Allows partial implementation and testing before the complete system is
built.
• Rapid Application Development (RAD) Model:
o Definition: Focuses on quick development and iteration, often involving user
feedback and prototyping.
o Key Characteristics:
▪ High adaptability to changes, faster development cycles, but may lack
thorough documentation.

e. Requirement Analysis:

• Definition:
o The process of determining user expectations and requirements for a new or
modified product.
• Key Activities:
o Elicitation, specification, validation, and management of requirements.

f. Diagrams in System Design:

• Data Flow Diagram (DFD):

o Definition: Visual representation of how data flows through a system, including
inputs, outputs, storage, and processes.
 o Levels:
▪ Level 0 (Context Diagram), Level 1 (Detailed Diagram).
• Entity-Relationship Diagram (ERD):
o Definition: A graphical representation of entities and their relationships in a
database.
o Components: Entities, relationships, attributes.

g. Implementation, Evaluation, and Maintenance of MIS:

• Implementation: The process of installing, configuring, and deploying a system into an

operational environment.
• Evaluation: Assessing the system’s effectiveness, efficiency, and user satisfaction.
• Maintenance: Ongoing support and updates to ensure the system continues to meet
business needs.

2. Database System:

• Overview:
o A database system is designed to store, retrieve, and manage data in a structured
way.

a. Components:

• Database: The structured collection of data.

• DBMS (Database Management System): Software that manages and interacts with the
database.
• SQL (Structured Query Language): Language used to manage and query data in the
database.
• Users: Individuals who interact with the database.

b. Advantages:

• Data consistency, data sharing, improved data security, and efficient data management.

c. Disadvantages:

• Complexity, cost, potential for data loss or corruption, and performance issues with large
databases.

3. Data Warehousing and Data Mining:

• Data Warehousing:
o Definition: A data warehouse is a centralized repository that stores large volumes of
data from multiple sources, structured for query and analysis.
o Purpose: Support decision-making by providing a comprehensive view of data across
the organization.
• Data Mining:
o Definition: The process of discovering patterns, correlations, and trends in large
datasets using statistical and machine learning techniques.
 o Purpose: Extract useful information for decision-making, forecasting, and trend
analysis.

4. Business Intelligence (BI):

• Definition:
o BI refers to technologies, applications, and practices for collecting, integrating,
analyzing, and presenting business data to support better decision-making.
• Key Components:
o Data warehouses, data mining, reporting tools, dashboards, and analytics.

5. Artificial Intelligence (AI) and Expert Systems:

• Artificial Intelligence (AI):

o Definition: The simulation of human intelligence processes by machines, especially
computer systems.
o Applications: Natural language processing, machine learning, robotics, and expert
systems.
• Expert System:
o Definition: A computer system that mimics the decision-making ability of a human
expert, using knowledge and inference rules.
o Example: Medical diagnosis systems.

6. Big Data:

• Definition:
o Big Data refers to extremely large datasets that may be analyzed computationally to
reveal patterns, trends, and associations.
• Characteristics:
o Volume, velocity, variety, veracity, and value.
• Applications: Real-time analytics, predictive modeling, and business optimization.

7. Cyber Safety and Security:

• Cryptography:
o Definition: The practice of securing information by converting it into a coded format.
• RSA Model of Encryption:
o Definition: A widely used public-key encryption system that secures data
transmission.

8. Data Science:

• Definition:
o An interdisciplinary field that uses scientific methods, algorithms, and systems to
extract knowledge and insights from structured and unstructured data.
• Applications: Predictive analytics, recommendation systems, fraud detection.

9. Blockchain Technology:

• Definition:
 o A decentralized digital ledger that records transactions across multiple computers so
that the records cannot be altered retroactively.
• Applications: Cryptocurrencies, supply chain management, digital contracts.

10. E-commerce and E-Business Models:

• E-commerce:
o Definition: The buying and selling of goods or services using the internet.
• E-Business Models:
o B2B (Business to Business): Transactions between businesses.
o B2C (Business to Consumer): Transactions between businesses and consumers.
o C2C (Consumer to Consumer): Transactions between consumers.

11. Internet of Things (IoT) and RFID:

• IoT (Internet of Things):

o Definition: The interconnection of everyday devices to the internet, allowing them to
send and receive data.
• Applications: Smart homes, industrial automation, health monitoring.
• RFID (Radio Frequency Identification):
o Definition: A technology that uses electromagnetic fields to automatically identify
and track tags attached to objects.
• Applications: Inventory management, asset tracking, contactless payments.

UNIT 5

1) Enterprise Resource Planning (ERP) System, Benefits of the ERP, ERP

how different from conventional packages, Need for ERP, ERP
components, Selection of ERP Package, ERP implementation, Customer
Relationship management. Organisation & Types, Decision Making,
Data & information, Characteristics & Classification of information, Cost
& value of information, various channels of information and MIS;
Information system audit and control – E-Governance. 12

Here’s a comprehensive overview of the topics related to Enterprise Resource Planning

(ERP) Systems, Customer Relationship Management (CRM), Decision Making, Information
Systems, and related areas:

1. Enterprise Resource Planning (ERP) System:

• Definition:
o An ERP system is an integrated software platform that manages an organization’s
core business processes, including finance, HR, manufacturing, supply chain,
services, procurement, and others, in a unified system.
• Purpose:
o Streamline processes, provide a centralized database, and improve data accuracy
and decision-making across the organization.
a. Benefits of ERP:

• Integrated Information:
o Provides a single source of truth by consolidating data from different departments
into a unified system.
• Improved Efficiency:
o Automates routine tasks, reducing manual input and errors.
• Better Decision-Making:
o Real-time data access allows for informed decision-making.
• Scalability:
o Can grow with the organization, adapting to changing needs.
• Compliance and Risk Management:
o Helps ensure compliance with industry regulations and reduces risk through
standardized processes.
• Cost Savings:
o Streamlined processes and reduced redundancy can lead to significant cost savings.

b. How ERP Differs from Conventional Packages:

• Integration:
o ERP systems integrate multiple business processes, whereas conventional software
packages usually handle only one specific area.
• Centralized Database:
o ERP systems use a centralized database for all modules, while conventional packages
may use separate databases, leading to data silos.
• Scalability and Flexibility:
o ERP systems are scalable and can be customized to fit an organization’s needs,
whereas conventional packages often have limited customization options.
• Process Orientation:
o ERP is process-oriented, supporting end-to-end business processes, while
conventional software is typically function-oriented.

c. Need for ERP:

• Business Process Integration:

o Organizations need to integrate various functions such as finance, sales, HR, and
production to ensure smooth operations and real-time data flow.
• Competitive Advantage:
o ERP systems provide tools for better decision-making, efficiency, and customer
service, which are essential for staying competitive.
• Regulatory Compliance:
o Ensures adherence to industry regulations and standards.
• Data-Driven Decision-Making:
o Provides real-time, accurate data to support strategic decisions.

d. ERP Components:

• Core Components:
1. Financial Management: Manages financial accounting, reporting, and analysis.
2. Human Resource Management (HRM): Handles employee records, payroll,
recruitment, and training.
 3. Supply Chain Management (SCM): Manages the flow of goods, inventory, and
procurement.
4. Manufacturing and Production: Manages production planning, scheduling, and
quality control.
5. Customer Relationship Management (CRM): Manages customer data, sales, and
service.
6. Project Management: Tracks project progress, resources, and costs.
• Extended Components:
o Business Intelligence (BI): Tools for data analysis and reporting.
o E-commerce: Integration of online sales and operations.
o Advanced Planning and Scheduling (APS): Optimizes production schedules and
supply chain operations.

e. Selection of ERP Package:

• Criteria:
o Business Needs: Align the ERP’s capabilities with the specific needs of the
organization.
o Scalability: Ensure the ERP can grow with the organization.
o Customization and Flexibility: Ability to customize the ERP to fit unique business
processes.
o Vendor Reputation and Support: Consider the vendor’s track record, customer
support, and industry experience.
o Total Cost of Ownership (TCO): Evaluate the full cost, including licensing,
implementation, training, and maintenance.
• Process:
o Requirement Analysis: Identify specific requirements and goals.
o Vendor Shortlisting: Narrow down vendors based on criteria.
o Demo and Evaluation: Conduct product demos and evaluate usability.
o Final Selection: Choose the ERP system that best fits the organization’s needs.

f. ERP Implementation:

• Phases:
1. Planning: Define project scope, timelines, and resources.
2. Business Process Reengineering: Align current processes with the ERP system.
3. Data Migration: Transfer data from legacy systems to the ERP.
4. Configuration and Customization: Configure the ERP to meet business needs and
customize where necessary.
5. Testing: Test the ERP system for functionality, performance, and user acceptance.
6. Training: Provide end-user training to ensure smooth adoption.
7. Go-Live and Support: Deploy the ERP system and offer ongoing support.
• Challenges:
o Resistance to change, data migration issues, cost overruns, and insufficient training.

2. Customer Relationship Management (CRM):

• Definition:
o CRM is a strategy and software that companies use to manage interactions with
customers, streamline processes, and improve customer satisfaction.
a. Organization & Types:

• Types of CRM:
o Operational CRM: Manages customer interactions and streamlines sales, marketing,
and customer service.
o Analytical CRM: Analyzes customer data for better decision-making.
o Collaborative CRM: Facilitates communication and collaboration between the
company and its customers.

b. Benefits of CRM:

• Improved Customer Service:

o Provides a 360-degree view of the customer, enabling personalized service.
• Increased Sales:
o Automates sales processes, tracks leads, and helps close deals more efficiently.
• Enhanced Marketing:
o Helps segment customers and tailor marketing campaigns.
• Customer Retention:
o Tracks customer satisfaction and loyalty, enabling proactive retention strategies.

3. Decision Making, Data & Information:

• Decision Making:
o The process of selecting the best course of action among multiple alternatives.

a. Data & Information:

• Data: Raw facts and figures without context.

• Information: Processed data that is meaningful and useful for decision-making.

b. Characteristics & Classification of Information:

• Characteristics:
o Accuracy: Information must be correct and free of errors.
o Timeliness: Information should be available when needed.
o Relevance: Information should be pertinent to the decision-making process.
o Completeness: Information should provide a full picture.
o Consistency: Information should be uniform and consistent over time.
• Classification:
o Strategic Information: Long-term planning and decision-making.
o Tactical Information: Short-term planning and decision-making.
o Operational Information: Day-to-day operations.

c. Cost & Value of Information:

• Cost of Information:
o Includes the cost of collecting, storing, processing, and disseminating information.
• Value of Information:
o The benefit derived from using the information, often measured by its impact on
decision-making and organizational performance.
d. Various Channels of Information and MIS:

• Channels of Information:
o Internal reports, external data sources, and communication networks.
• Management Information System (MIS):
o A system designed to provide managers with information needed to make informed
decisions. It integrates data from various functions, processes it, and presents it in a
user-friendly format.

4. Information System Audit and Control:

• Definition:
o The process of evaluating and ensuring the effectiveness, security, and reliability of
an organization’s information systems.
• Key Areas:
o Access Controls: Ensuring only authorized users have access to the system.
o Data Integrity: Ensuring data is accurate and consistent.
o System Security: Protecting the system from internal and external threats.
o Compliance: Ensuring the system adheres to laws and regulations.

5. E-Governance:

• Definition:
o The use of information and communication technology (ICT) by government agencies
to provide services, engage citizens, and improve governance.
• Components:
o G2C (Government to Citizen): Services such as online tax filing, voting, and access to
public records.
o G2B (Government to Business): Services such as online business registrations,
licensing, and procurement.
o G2G (Government to Government): Information sharing and coordination between
different government agencies.
• Benefits:
o Transparency: Improves transparency in government operations.
o Efficiency: Streamlines processes, reducing time and cost.
o Accessibility: Provides citizens with easier access to government services.
o Engagement: Encourages citizen participation in governance