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3BBA6 Management Information Systems (Eng.) (2)

The document outlines the structure and content of a Management Information System (MIS) course, detailing its various units covering fundamentals, system development, design, and applications in business. It emphasizes the importance of MIS in decision-making and organizational management, highlighting its role in analyzing and improving information systems. Additionally, the document includes references for further reading and contributors involved in the course development.

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0% found this document useful (0 votes)
46 views319 pages

3BBA6 Management Information Systems (Eng.) (2)

The document outlines the structure and content of a Management Information System (MIS) course, detailing its various units covering fundamentals, system development, design, and applications in business. It emphasizes the importance of MIS in decision-making and organizational management, highlighting its role in analyzing and improving information systems. Additionally, the document includes references for further reading and contributors involved in the course development.

Uploaded by

sumbulzohra92
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Management

Information
System

3BBA6
3BBA6
Management Information System

Credit - 4
Subject Expert Team

Dr. Vivek Bajpai, Dr. Rajeev H. Peters,


Dr. C.V. Raman University, Kota, Dr. C.V. Raman University, Kota,
Bilaspur, Chhattisgarh Bilaspur, Chhattisgarh

Dr. Niket Shukla, Dr. Satish Sahu,


Dr. C.V. Raman University, Kota, Dr. C.V. Raman University, Kota,
Bilaspur, Chhattisgarh Bilaspur, Chhattisgarh

Dr. Archana Agrawal, Dr. Vikas Kumar Tiwari,


Dr. C.V. Raman University, Kota, Dr. C.V. Raman University, Kota,
Bilaspur, Chhattisgarh Bilaspur, Chhattisgarh

Course Editor:

• Dr. Milind Limaye, Associate Professor


Rabindranath Tagore University, Bhopal, Madhya Pradesh

Unit Written By:

1. Dr. Archana Agrawal


Associate Professor, Dr. C. V. Raman University

2. Dr. Vaibhav Sharma


3. Associate Professor, Dr. C. V. Raman University

4. Dr. Pritendra Malakar


Assistant Professor, Dr. C. V. Raman University

Warning: All rights reserved, No part of this publication may be reproduced or transmitted or
utilized or stored in any form or by any means now known or hereinafter invented, electronic,
digital or mechanical, including photocopying, scanning, recording or by any information
storage or retrieval system, without prior written permission from the publisher. Published by:
Dr. C.V. Raman University Kargi Road, Kota, Bilaspur, (C. G.)

Published by: Dr. C.V. Raman University Kargi Road, Kota, Bilaspur, (C. G.), Ph. +07753-
253801,07753-253872 E-mail: inf [email protected] Website: www.cvru.ac.in.
TABlE IF CINTENTS
BLOCK I
UNIT-1 Fundamentals of Information Systems --------------------------- 5-34

UNIT- Z Management Information System------------------------------- 35-52

UNIT- 3 Information Systems Concepts ---------------------------------- 53-64

UNIT -4 System Approach to Problem Solving -------------------------- 65-74

UNIT - 5 Information ____________________,_________., ________ 75-96

BLOCK II

UNIT-6 System Development Life Cyde --------------------------------- 97-106

UNIT -7 Planning--------------------------------------------------------- 107-122

UNIT - 8 Control ---------------------------------------------------------- 123-130

UNIT - 9 � System Pla'nning and Initial Investigation ------------------ 131-146

UNIT-10 Sb'uctured Analysis and Feasibility Study------------------- 147-168

BLOCK - Ill

UNIT-11 System Design-------------------------------------------------- 169-178

UNIT - 12 Input, Output And Form Desig n ------------------------------ 179-190

UNIT-13 FIie Organisation And Database Design --------------------- 191-204

UNIT-14 Implementation And Software Maintenance --------------- 205-212

UNIT- 15 Hardware/Software Selection and


the Computer Contract---------------------------------------- 213-226

BLOCK - IV

UNIT-16 Syste m Security And Disaster Recovery Planning---------- 227-240

UNIT-17 Business Applications of Information Technology --------- 241-272

UNIT-18 Information System for Business Operations --------------- 273-284

UNIT -19 Advance Concepts in Information Systems ----------------- 285-312


Fundamentals of

UNIT Fundamentals of Information Systems

1 Information Sy�tems NOTES

The Chapter Covers :

1.1 Introduction
1.2 Data, Infonnation and Knowledge
1.3 Concept of System
1.4 Characteristics of A System
1.5 Elements of A System
1.6 System EnvironmentandBmmdary
1.7 types of a system
1.8 Components of Information System
1.9 Information System.Activities
1.10 Evolution of an Information System
1.11 Impacts oflnformation System
1.12 Level of management decision-making
1.13 Information system in business
1.14 References & suggestive reading
1.1 INTRODUCTION
This chapter provides the basics of information systems, a requirement for everyone
working in various types of organizations today. As tomorrow's managers, entre­
preneurs, or business specialists, business students need to know how to use and
manage information technology in today's networked enterprises and global mar­
kets. In this dynamic environment, they will rely on interconnected networks of
information systems for end user collaboration, including communications and com­
puting among end user work groups and teams, and enterprisewide computing,
including communicationsand information processing for business operations, mana­
gerial decision making, and strategi� advantage. Information technology is an ex­
tremely important and �ingly complex component of business and professional
organizations. Decisions related to information technology and the related informa­
tion systems can be a major factor influencing an organization's survival.

5
Management 5. Explain difference between Open and Closed system.
Information system
6. What do you mean by information system.
7. Explain various types of information system.
NOTES 8. Explain methods of Data Processing.
9. Write short notes on following:
(i) Expert System
(n) Management Information System
(m) Decision support System
(Iv) Open Source Software
10. Explain components of information system.
11. Explain activities and resources of information system.
12. Explain impacts of information system in business.
13. Explain levels of management decision making.
14. Explain evolution of information system.

1.14 References & suggestive reading

Laudon, K. C., & Laudon, J. P. (2022). Management information


systems: Managing the digital firm (17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information


systems (11th ed.). McGraw-Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information


systems (7th ed.). McGraw-Hill Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success


in the digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information


systems (9th ed.). Cengage Learning.

Haag, S., & Cummings, M. (2023). Management information systems


for the information age (11th ed.). McGraw-Hill Education.
UNIT
Management

Management Information System

2 Information System NOTES

The Chapter Covers :

2.1 Introduction
2.2 Management Information System (MIS)
2.3 Fields oflnfonnation System
2.4 Elements Of MIS
2.5 Objectives OfMIS
2.6 Characteristics of mis
2.7 Impact Of MIS
2.8 Designing An MIS
2.9 Placement Of Mis
2.10 ViewsOfMIS
2.11 Pitfalls In Designning an MIS
2.12 Components ofManagementlnformation System
2.13 Outputs of a Management Information System
2.14 Management Information Systems for Competitive Advantage
2.15 MIS Function in an organisation
2.16 Role of MIS in Management
2.17 References & suggestive reading

2.1 INTRODUCTION
Management Information Systems (MIS) is a generaJ name for the academic dis-
Cipline covering the application of people, technologies. and procedures - collec-
ti·vely called the information system- to solve business problems. MIS are distinct
from regular infonnation systems in that they are used to analyze other information
systems applied in operational activities in the organisation. Academically, the term
lS commonly used to refer to the group of information management methods tied to
th e automation or support of human decision making, e.g. Decision Support Sys-
t ems, Expert systems, and Executive information systems. This chapter delivers
inflormation on MIS in details. An Information System is an organized combination
0f people, hardware, software, communications networks, and data resources that
35
Collects transforms and disseminates information in an orgaruzatJ.· on. Peop le have
Management • Management Control Level
Information system • Operational Control Level
• Transaction Processing Level
NOTES 6. MIS cannot replace managerial judgements in decision making. It is merely an
effective tool for the managers in decision making and problem solving.
The quality of output of MIS is directly proportional to the quality of input and
processes.
MIS is less effective in organiz.ations where infonnation is not being shared with
others.
7. It deals with transaction processing such as answering the questions, status of
a particular record and variety of documents.
It gives operational data for planning, scheduling and control.
It helps in decision making and to correct an out of control situation.

EXERCISE
I. Explain concept of management infonnation system.
2. Explain fields of information system.
3. How can you divide MIS? Explain
4. Explain objectives and characteristics of MIS.
5. Write down steps taken to design an MIS.
6. Explain views of MIS.
7. Write notes on following:
(i) Components of MIS
(n) Output of MIS
8. Explain advantages and disadvantages of MIS.
9. Writ e down pitfalls in designing MIS.
I0. Explain role of MIS in management.

References & suggestive reading

Laudon, K. C., & Laudon, J. P. (2022). Management information systems:


Managing the digital firm (17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems


(11th ed.). McGraw-Hill Education.
t

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th
ed.). McGraw-Hill Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the


digital age. Wiley.
y

52 Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th


ed.). Cengage Learning.

Haag, S., & Cummings, M. (2023). Management information systems for the
information age (11th ed.). McGraw-Hill Education.
UNIT Information Systems
Information
Systems Concepts

3 Concepts NOTES

The Chapter Covers :

3.1 MIS versus Data Processing


3.2 MIS & Decision Support System
3.3 MIS & Information Resources Management
3.4 End-user computing
3.5 Uses of Management Information System in Finance
3.6 Uses of Management Information System in Marketing
3.7 Functions of MKIS
3.8 Components of an MKIS
3.9 Uses of Management Information System in Manufacturing
3 .10 Information system for Human Resource
3.11 References & suggestive reading

Management Information System (MIS) is a subset of the overall internal con­


trols of a business covering the application of people, docmnents, technologies, and
procedures by management accmmtants to solving business problems such as cost­
ing a product, service or a business-wide strategy. Management Information Sys­
tems are distinct from regular information systems in that they are used to analyze
other information systems applied in operational activities in the
organization. Academically, the term is commonly used to refer to the group of
information management methods tied to the automation or support of human de­
cision making, e.g. Decision Support Systems, Expert systems, and Executive infor­
mation systems.
This is an emerging science which sets its the main task of it is to strengthen the
information management of enterprises by taking advantage of modern computer
and network communication technology to the largest extent, and set up the correct
data based on the research of human resource, financial resource, equipments,
technology, etc. owned by enterprises, and provide timely various of processed and
53
Management
Information system
2. At stand for Data base Engineering Methodology (DBEM) use is to design and
develop and corporate data base, both logically and physically.

NOTES
3. In computing, End User Computing (EUC) refers to systems in which non-pro­
grammers can create working applications. EUC is a group of approaches to
computing that aim at better integrating end users into the computing environ­
ment.

4. They are information systems with capacity to maintain large data bases enabling
organizations to store, organize and access financial information easily. These
systems are primarily used for accounting operations and generation of financial
reports. Increasingly they are also used to support budgetary, planning and
decision making processes.

5. The Human Resource Information System (HRIS) is a software or online so­


lution for the data entry, data tracking, and data information needs of the Human
Resources, payroll. management, and accounting functions within a business.

EXERCISE
1. Explain difference between Management information system and data pro-
cessing.
2. Explain relation between DSS and Management information system.
3. How can you relate MIS with Information resource management?
4. Explain end user computing.
5. Write notes on foUowing:
(i) Use of MIS in Finance
(n) Use of MIS in marketing
(m) Use of MIS in manufacturing
(iv) Information system for human resource

3.11 References & suggestive reading


Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing
the digital firm (17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems (11th ed.).
McGraw-Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th ed.).
McGraw-Hill Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital
age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.).
Cengage Learning.

Haag, S., & Cummings, M. (2023). Management information systems for the
64 information age (11th ed.). McGraw-Hill Education.
System Approach to

4 System Approach to Problem Solving

Problem Solving NOTES

The Chapter Covers :

4.1 Definition of problem


4.2 Terminology or.Problem Solving
4.3 Thinkingpattems
4.4 System approach to problem Solving
4.5 References & suggestive reading

Problem Solving is very important Problem-solving is a mental process that


involves discovering, analyzing and solving problems. The ultimate goal of
problem-solving is to overcome obstacles and find a solution that best resolves
the issue.
The way in which people solve problems best depends largely on the unique
situ­ation. In some cases, people are better off learning everything they can
about the issue and then using factual knowledge to come up with a solution. In
other cases, creativity and insight are the best options. Problem solving is a
natural part of life. In any business or industry, the ability of an employee to solve
problems can mean the difference between success and failure. Lacking the
ability to solve problems effectively can be a source of anxiety and stress for any
individual. Problem solving is not an exact science, although there are guidelines
that a person can follow to become a successful problem-solver.
Flexibility and open-mindedness is an essential·part of being able to solve
problems, whether it is in your personal life or on-the-job. Possessing
advantageous problem solving skills requires a person to understand the
problem, create a plan to solve

65
Management Answer of the Check Your Progress
Information system
1. A problem is an obstacle, difficulty or challenge, or any situation that invites
resolution; the resolution of which is recognized as a solution or contribution
toward a known purpose or goal. A problem implies a desired outcome coupled
NOTES with an apparent deficiency, doubt or inconsistency that prevents the outcome
from taking place.
2. Problem solving is a systematic approach to define �e problem and create a
vast number ofpossible solutions without judging these solutions.
3. Tore are seven basic terms such as Pwpose, Situation, Problem, Cuse, Solvable
cause, Issue and Solution.
4. In order to create a value through thinking we need to judge whether what we
think is right or wrong. Four judging patterns are:
• strategic thinking • emotional thinking
• realistic thinking • empirical thinking.
5. In realistic thinking we assume two criteria.
• Start from what we can do • Fix the essential problem first
6. When we should be creative we do not have to consider convergence ofideas.
In contrast, when we should summarize ideas we must focus on convergence.
lfwe do convergence and divergence simultaneously, Problem Solving becomes
inefficient
7. When we.are confused with Problem Solving then thinking based on a time
order is very convenient. We can think based on a time order from the past to
the future and make a complex situation clear.

EXERCISE
1. What do you understand by problem.
2. Explain terminology ofproblem solving.
3. Explain different types of thinking patterns.
4. Explain thinking patterns for efficient thinking
5. Explain different approaches to problem solving.

4.5 References & suggestive reading


Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing
the digital firm (17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems (11th ed.).
McGraw-Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th ed.).
McGraw-Hill Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age.
Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.).
Cengage Learning.
74
Haag, S., & Cummings, M. (2023). Management information systems for the
information age (11th ed.). McGraw-Hill Education.
Information

5 Information
NOTES

The Chapter Covers :

5 .1 Introduction
5.2 What is Information
5.3 Nature ofinfonnation
5.4 Need oflnformation
5.5 Information and Comrmmication
5.6 Information Process
5. 7 Quality oflnfunnation
5.8 Sources oflnfonnation
5.9 Infonnation Gathering Tedmique
s.10 Levels ofManagement
5.11 Levels oflnfonnation
5.12 Management and Need for Infonnation Syst·
5.13 Marketing Managerrent
5.14 Material Management
s.1s Finance Management
5.16 Human Resource Management
5.17 References & suggestive reading

5.1 INTRODUCTION
Since the drawn of the civilization, information has been one of the major require­
ments of the human being. One gathers many types of information related to the
current system during system development. While gathering information we decide
which sort of information we have to collect it means whether the information is
relevant for the system or not. After this what are sources of information? And how
those sources can be brought to maxinrum use? The principal sources of informa­
tion are- authorities, personneL input and output processes for while many sorts of
fonnats such as - interview, questionnaire etc. are framed. We also supervise system
site for information gathering. All of these aspects will be discussed in this chapter.

5.2 WHAT IS INFORMATION


The meaningful conclusion derived out when data is processed is called information 75
or in other words the meaningful rearrangement of data after processing is called
4. Quality ofinfonnation :-
.
Management
Information system • Accurate •
.
Tirreliness Current
• Relevant • Complete Specific
NOTES • Understandable • Comprehensive • Unbiased
• Comparable
5. Primary sources of information allow the learner to access original and uned1tec:
inforrnation. A primary source requires the kamer to interact with the source and
extract infonnation. Secondary sources are edited primary sources, second-hand
versions. They represent someone else's thinking.
6. These arc the following:-
• Already available documents, samples of documents form and database.
• Research and Site Inspection • Observation of workingenvironment
• Questiomiaires • Interv�ws
7. Interview is such a data collection technique through which the analyst collects in­
formation from tht: people face to face.
8. The levels of management can b� classified in three broad categories:-
(i) Top level I Administrative level (ii) Middle level/ Executol)'
(ii:J.) Low level/ Supervisory/ Operative/ First-line managers

EXERCISE

1. What is information? Why infonnation 1s needed?


2. Explain information process.
3. What do you mean by quality of infonnation?
4. Explain sources of infonnation.
5. \Vrite different types of infomiation gatbermg techniques.
6. Write down processes that are appropriate for designing a questionnaire.
7. Elaborate levels of management.
8. Write down functions oflow level managem�nt.
9. Write down a note on levels of information.
10. What type of infomJation is needed in diffe1ent areas of management?

96
5.17 References & suggestive reading
Wager, K. A., Lee, F. W., & Glaser, J. P. (2022). Health care information systems: A practical approach for
health care management (5th ed.). Jossey-Bass.

Valacich, J. S., & George, J. F. (2020). Modern information systems for managers (13th ed.). Pearson.

Turban, E., Volonino, L., & Wood, G. R. (2019). Information technology for management: Advancing
sustainable, profitable business growth (11th ed.). Wiley.

Oz, E. (2021). Management information systems (10th ed.). Cengage Learning.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.). Cengage Learning.
System Development

UNIT System Development


Life Cycle

Life Cycle
6 NOTES

The Chapter Covers :

6.1 Introduction

6.2 System Development Lire Cycle

6.3 The problems of a System Mean

6.4 Different Phases of System Development Life Cycle

6.5 Considerations for Candidate Systerm

6.6 Political Consideration

6. 7 Prototyping

6.8 References & suggestive reading

6.1 INTRODUCTION
In the last chapters we have discussed the definition of system, its types, its elements
etc. We have also come to know how important a system is in the development of
a trade organisation and how the trade activities are affected without it. In this
chapter, we'll study about its development cycle.
6.2 SYSTEM DEVELOPMENT LIFE CYCLE
System development cycle or system development life cycle is an orderly and well­
arranged approach for solving the problems ofa system.
6.3 THE PROBLEMS OF A SYSTEM MEAN
• The conditions which are either real or anticipated and which need to be
rectified.
• There are chances available to improve the condition without complaints.
• The directives to change the conditions despite no complaints from anyone
97
about the present/current conditions.
Management For system testing, we for many days input our favourite data into it and obtain
Information system output.
3. At the time of construction of a project, there are three factors which are
attached to it.
NOTES
• Technical factor
• Behavioural factor
• Economical factor
4. Prototyping is the most important technology which is used for rapid completion
of the development of information systems based on large computers. As the
word prototyping suggests it is the original model on the basis ofwhich the final
design of some other system is created. Thus the objective of prototyping is
preparing the working model of the system, implementing it on full scale.

EXERCISE
1. Explain the meaning of term system development life cycle.
2. What do understand with the problems of the system?
3. Write down phases of the System Development Life Cycle.
4. Write down points that are included in report.
5. Explain the concept of system analysis.
6. Explain prototyping.
7. Write down advantages and disadvantages of prototyping.

6.8 References & suggestive reading


Wager, K. A., Lee, F. W., & Glaser, J. P. (2022). Health care
information systems: A practical approach for health care
management (5th ed.). Jossey-Bass.

Valacich, J. S., & George, J. F. (2020). Modern information systems


for managers (13th ed.). Pearson.

Turban, E., Volonino, L., & Wood, G. R. (2019). Information


technology for management: Advancing sustainable, profitable
business growth (11th ed.). Wiley.

Oz, E. (2021). Management information systems (10th ed.).


Cengage Learning.

Huber, G. P., & McDaniel, R. R. (2019). Information systems:


Success in the digital age. Wiley.

106 Stair, R., & Reynolds, G. (2019). Fundamentals of information


systems (9th ed.). Cengage Learning.
Planning

7 Planning
NOTES

The Chapter Covers :

7 .1 Introduction
7.2 Meaning and Definition orPlanning
7.3 Nature/Features ofPlanning
7.4 Objective orPlanning
7 .s Importance ofPlanning
7.6 Levels ofPlanning
7.7 Planning Process
7.8 Six P's ofPlanning
7.9 Types ofPlans
7.10 Typesofplanning
7.11 Advantages ofPlanning
7.12 Limitations ofP]rummg
7.13 References & suggestive reading

7.1 INTRODUCTION
Planning is a preparatory step in any task of the organization. It is a systematic
activity which determines when, how and who is going to perform a specific job.
Planning is a detailed programme regarding future courses of action. It is rightly said
"Well plan is haH done". Therefore planning takes into consideration in available
& prospective human and physical resources of the organization so as to get effec­
tive co-ordination, contribution & perfect adjustment. It is the basic management
function which includes formulation of one or more detailed plans to achieve opti­
mwn balance of needs or demands with the available resources.
Planning involves selecting enterprise's objectives and departments' goals,
programmes, detennining ways of reaching them. Planning is deciding m advance
what is to be done in future, how it is to be done when and by whom it is to be
done. Planning involves selecting of a course of action from all available alternatives
for accomplishing the desired goals of the enterprise. 107
Management 6. There are three types of plans, there are :­
Information system
(a) Standing or repeated use plans.
(b) Single use or operating plans
NOTES
(C) Contingency plans.
7. Fonnal planning exists in the fonnal hierarchy ofthe organization. This type ofplan­
ning is done at a large scale and is based on the pre-defined policies and the rules
ofthe organiz.ation.
EXERCISE
I. Explain meaning and definition of planning.
2. Write down features of planning.
3. Explain objectives of planning.
4. Write a note on importance of planning.
5. Explain levels of planning.
6. Write a note on planning process.
7. Define six P's of planning.
8. Write down different types of plans.
9. Explain types of planning.
I 0. Write down advantages of planning.

7.8 References & suggestive reading


Wager, K. A., Lee, F. W., & Glaser, J. P. (2022). Health care information systems: A practical approach for health
care management (5th ed.). Jossey-Bass.

Valacich, J. S., & George, J. F. (2020). Modern information systems for managers (13th ed.). Pearson.

Turban, E., Volonino, L., & Wood, G. R. (2019). Information technology for management: Advancing sustainable,
profitable business growth (11th ed.). Wiley.
y
Oz, E. (2021). Management information systems (10th ed.). Cengage Learning.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.). Cengage Learning.

122
UNIT Control

8 Control
NOTES

The Chapter Covers :

8.1 Meaning & Definitions of Controlling

8.2 Control Process

8.3 Nature of Control /Characteristics of Control

8.4 Importance of Controlling

8.5 Limitation ofControlling

8.6 Principles ofEffective Control Systems

8. 7 Necessity of Control

8.8 Objective of Control

8.9 Elements of Control

8.10 Types of Controls

8.11 Qualties ofEffective Control System

8.12 References & suggestive reading

INTRODUCTION
Controlling is a fundamental managerial function. It is the process ofcomparing actual
performance with established standards, for the purpose oftaking action to correct the
deviations if any. It is the process by which managers ensure that resources are obtained
and used effectively and efficiently in the accomplishment ofthe organization's objective.
The basic pwpose of a well designed control system is to ensure that results are achieved
according to plan. Controlling is a continuous process ofmeasuring actual results ofop­
eration of an organi7ation, and compares it to the standards and takes corrective actions
ifnecessary.
8.1 MEANING & DEFINITIONS OF CONTROLLING
Controlling is the proces.s through which managers ensure that actual activities conform
to the planned activities. Some ofthe definitions ofcontrolling are as follows:
According to George � Terry, "Controlling is determining what is being accom­
plished, that is, evaluating the performance and, ifnecessary, applying corrective mea­ 123
sw-es so that the perfom1ance takes place according to plans."
Management
Information system

8.12 References & suggestive reading


NOTES
Wager, K. A., Lee, F. W., & Glaser, J. P. (2022). Health care information systems:
A practical approach for health care management (5th ed.). Jossey-Bass.

Valacich, J. S., & George, J. F. (2020). Modern information systems for managers
(13th ed.). Pearson.

Turban, E., Volonino, L., & Wood, G. R. (2019). Information technology for
management: Advancing sustainable, profitable business growth (11th ed.).
Wiley.

Oz, E. (2021). Management information systems (10th ed.). Cengage Learning.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the


digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.).
Cengage Learning.

130
5� l'lannins and
UNIT System Planning and Initial lnYeStigation

9 Initial Investigation NOTl:S

The Chapter Covers :

9 .1 Introduction
9.2 Symemplanning
9.3 Whysystemplamiog?
9 .4 Strategic MIS plaooiog
9.5 Managerial and operational Mis planning
9 .6 Strategies fur delm:ni.o.iog inforu:wtioo requirements
9. 7 Getting infunnation from the exis1ing wfurmation system
9.8 programing
9 .9 Initial instigation
9.10 Information!serviceableness
9 .11 Activities initial investigation
9.12 . B aground analysis
9.13 Fact-Fiodingtechnique5
9.14 Collectivization
9.15 (despondence and questionnaires
9.16 Pe:lli Cblll.interview
9 .17 Observation
9.18 Research
9.19 References & suggestive reading

9.1 INTRODUCTION
Before we acoomplish a task, we prepare a success plan about it No matter
whecher' the task is related to building comtruction, busiDr.ss relatoo, maniage re­
lated or c:oncemcd with a journey, we prepare a plan from its beginning to end.
likewise, the dr:velopmem of a system swts with a efficacious plan. In this chapter,
we'll stud)> about the initial investigation taking place for it with different functions
andstq,a.
9.2 · SYSTEM PLANNING
InfoII!lation, fur ever, have been importmt fur a company « institution. Today the
advaooement of infotmation t.echnology bM made its opa:ation and CODtrol easier.
The success of yours or your company d'"i""ffi on yow infurmation management.
Computer has become a part and parcel of info.r::mation technology, as a result 131
companies hlM focussed 1bcir attention on it.
9.19 References & suggestive reading

Wager, K. A., Lee, F. W., & Glaser, J. P. (2022). Health care information systems: A practical approach
for health care management (5th ed.). Jossey-Bass.

Valacich, J. S., & George, J. F. (2020). Modern information systems for managers (13th ed.). Pearson.

Turban, E., Volonino, L., & Wood, G. R. (2019). Information technology for management: Advancing
sustainable, profitable business growth (11th ed.). Wiley.

Oz, E. (2021). Management information systems (10th ed.). Cengage Learning.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.). Cengage Learning.
Structured Analysis

UNIT Structured Analysis and and Feasibility Study

Feasibility Study
10 NOTES

The Chapter Coven. :

10.1 lntroductioo
10.2 What is SttucturedAnalysis?
10.3 Why Structured Analysis 'l
10.4 Charla
10.5 DalaFlow Diagram
10.6 Guidelines for Drawing Dara Flow Diagrams
10.7 Logical and Physical Data Flow Diagraim
10.8 Dala Dictionary
10.9 Data Dictionary Definition and F.mries
10.10 DeciaionTrees
10 .11 Structured English
10.12 Why FesstoilifyStudy?
10.13 StepS Io Feasibility Study
10 .14 Preparing Detailed Description ofCanrlidetes
10.1s I· ·- . M -1l System Chm:acteristics
10.16 Determining Performance and Cost for Each Candid.ate
10.17 Weighing the Svstem. Performam:eaod Cost Cbaracteri.stics
10.18 References & suggestive reading

10,1 INTRODUCTION
In the last chapter you be.ve read about system development life cycle, the defini­
tio� of a system analyst and his ability, the strategies to be applied in system
analysis and dt.sign and diffi:rent fact.finding techniques.
!n this chapter, you will .read. about different tools of structured a.oalyais, for ex­
ample, the cbarti.ng techniques, data flow diagram. dala dictiooal:y, decision tables
ew.
In the last chapters, we came to know about 1he initial i.nve8tigaliQn. Upto lhe phaso
ofinitial invesligation we have known about the basic thiDga ofsyBCem. for iDst!lnce,
up to this phase we detemli.ne the minimum rc,quirements of the user and get
acquaint,,,:! with the main prohlml. Upto this step, the anal}'3t is able to prepare the
147
project directive after the investigali.on ofthe purposes afsy&lml � the
Management 4. A logical data from diagram mainly focuses on the business the way it is operated It
Information ·system is not concerned with how the system will beoonstructed.
5. Data dictionary is a central store which defines all the data structures inside a system,
such as data element, data flow and data store and describes them.
NOTES
6. Pseudo code enables the programmer to concentrate on 1he algorithm, without wor­
rying about the peculiarities ofthe programming language.
7. How beneficial and practical the proposed system is for business'instinrtion, can, ac­
cording to most ofthe analysts, be tested in four ways. These tests are the following:
¢ OperationalFeasibility ¢ TechnicalFeambility
c:> Schedule Feasibility <> Economic Feasibility
8. In this phase the analyst is capable ofcalculating the cost and benefit ofthe system
accurately.

EXERCISE
1. What is Structured Analysis?
2. Why Structured Analysis is needed?
3. Write down problems related to system specifications.
4. Explain different types ofcharts.
5. Define data flow diagram,
6. Write down guidelines for drawing data flow diagram.
7. Explain logical and physical data flow diagram.
8. Define data dictionary.
9. Explain decision trees.
10. Explain structured English
11. Why feasibility study is required?
12. Write down steps offeasibility study.

10.18 References & suggestive reading


Wager, K. A., Lee, F. W., & Glaser, J. P. (2022). Health care information systems:
A practical approach for health care management (5th ed.). Jossey-Bass.

Valacich, J. S., & George, J. F. (2020). Modern information systems for managers
(13th ed.). Pearson.

Turban, E., Volonino, L., & Wood, G. R. (2019). Information technology for
management: Advancing sustainable, profitable business growth (11th ed.).
Wiley.

Oz, E. (2021). Management information systems (10th ed.). Cengage Learning.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the


digital age. Wiley.
168
Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.).
Cengage Learning.
UNIT
System Design
System Design

11 NOTES

The Chapter Covers :

11.1 Introduction
11.2 Design Process
11.3 Phases of Design
11.4 Methodologies ofDesigning
11.5 Structured Design
11.6 Functional Decomposition
11.7 Module Coupling and Cohesion
11.8 Prototyping
11.9 Infonnation Engineering
11.10 JointApplicationDevelopment
11.11 RapidApplicationDevelopment
11.12 Object Oriented Design
11.13 DevelopmcntActivities
11.14 Audit Considerations
11.15 Processing Controls and Data Validation
11.16 Audit Trial and Documentation control
11.17 References & suggestive reading

11.1 INTRODUCTION
System design is an important phase of system development life cycle. In this phase
the extensive design of the system, selected during the study, is completed. Besides,
the user oriented performance specification transforms into technical design speci­
fication. In this study, the topics related to this will be discussed.
11.2 DESIGN PROCESS
This step of system design plays an important part in system development life cycle.
In this phase, the type of system imagined during the study, is implemented.
In this phase, the performance specifications transform into design specifications. It
means, in this phase the analyst sees to it that now the performance of the system
determined in the phase of analysis be completed. During this phase, the analyst
performs the following processes -
169
• Prepares a time-table of design activities.
Management
Information system

11.17 References & suggestive reading


NOTES
Wager, K. A., Lee, F. W., & Glaser, J. P. (2022). Health care information systems:
A practical approach for health care management (5th ed.). Jossey-Bass.

Valacich, J. S., & George, J. F. (2020). Modern information systems for managers
(13th ed.). Pearson.

Turban, E., Volonino, L., & Wood, G. R. (2019). Information technology for
management: Advancing sustainable, profitable business growth (11th ed.).
Wiley. .

Oz, E. (2021). Management information systems (10th ed.). Cengage Learning.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the


digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.).
Cengage Learning.

178
Input, Output

UNIT Input, Output And Form Design

And Form Design


12 NOTES

The Chapter Covers :

12.1 Introduction

12.2 Input Design

12.3 h;iput Design Considerations

12.4 Input Devices

12.5 Output Design

12.6 Fonn Design

12. 7 Types of Forms

12.8 Layout Considerations

12. 9 Print Forms in Reasonable Quantities

12.10 AutomatedFonnDesign

12.11 Forms Control

12.12 References & suggestive reading

12.1 INTRODUCTION
If the entered data is not true, the information cannot be true. To enter the data
properly and easily during the development of an information system, an analyst
considers input design one of the most important tasks. Likewise output design and
form too are designed.
This chapter will deal with the facts related to input and output design. In addition,
form design is also an important part of this chapter.
12.2 INPUT DESIGN
Input design is a process in which the user-oriented descriptions of the input, under
program-oriented specifications, are turned into computer based business system.
Wrongly input data is the most common cause of errors in data processing. The
weak input design specially where the operators enter data from source input, invite
179
wrong data to the system. Besides, the entered data is given less weightage. The
12.12 References & suggestive reading
Wager, K. A., Lee, F. W., & Glaser, J. P. (2022). Health care information systems: A practical approach for
health care management (5th ed.). Jossey-Bass.

Valacich, J. S., & George, J. F. (2020). Modern information systems for managers (13th ed.). Pearson.

Turban, E., Volonino, L., & Wood, G. R. (2019). Information technology for management: Advancing
sustainable, profitable business growth (11th ed.). Wiley.

Oz, E. (2021). Management information systems (10th ed.). Cengage Learning.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.). Cengage Learning.
File Organisation And
Database Design

UNIT File Organisation And


Database Deslign
13 NOTES

The Chapter Covers :

13.1 Introduction

13.2 Input Design

13.3 h;iput Design Considerations

13.4 Input Devices

13.5 Output Design

13.6 Fonn Design

13. 7 Types of Forms

13.8 Layout Considerations

13. 9 Print Forms in Reasonable Quantities

13.10 AutomatedFonnDesign

13.11 Forms Control

13.12 References & suggestive reading

13.1 INTRODUCTION
Till now, you have read about different steps of system analysis and design. In the
last chapters you have come to know how input/output can be designed in a better
way so that apart from data entry being easier the result can be clear and accurate.
In this chapter we'll discuss things related to information gathering such as file
organiution, database etc.
13.2 FILE STRUCTURE
The structure of a file is based on small units which from that unit in the ascending
order takes the form of a file. The description of these small units are as follows-
• Bit, Nibble And Byte- We know that the base of gathering information in a
computer is 0 or 1. This 0 or 1 is called bit which is an abbreviated form of
Binary Digit and a group of4 bits is called rubble and a group of 8 bib is called
byte. One letter of the text we put on the screen through input device, is called 191
byte. It means byte is supposed to be the smallest unit of a file.
Management 4. Data model is a framework or a mental image of the user's view.
Information system 5. There are three types of relationship amidst data which are the following:­
¢ One to One relationship

NOTES ¢ One to Many relationship

¢ Many to Many relationship

6. Hierarchical structure is also called tree structure. In such structures, there are
not more than one entities on one side. In other words, it prepares structure
based en 1: 1 (One !o one) and 1:M (One to Many) relationships.
7. Nonna)ization is a technique that simplifies the relations amidst data elements.
With the help of the normalization method the data collection in the record
structure is replaced with more simple records which due to being pre-informa­
tive and practical, are easily operational.
8. Attributes are stored in physical form as field or data elements. Each attribute
has its own unique value.
9. The Role ofDatabase Administration are:-
a) Managing Data Activities b) Managing Database Manangement System
c) Managing Data Structure.

EXERCISE
1. Define file structure.
2. Write down different methods of organizing file.
3. Explain database and dbms.
4. Differentiate between direct and sequential access storage.
5. Write down objectives of database.
6. Explain the concept of data structure.
7. Define types of relationship among data.
8. Explain types of data structure.
9. Write a note on entities and attributes.
10. Why nonnali111tion is necessary?
11. Write down role ofDBA.

References & suggestive reading


Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing the digital
firm (17th ed.). Pearson Education.
1

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems (11th ed.). McGraw-
·

Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th ed.). McGraw-Hill
Education.
204
UNIT Implementation And

Implementation And Software Maintenance

14
Software Maintenance NOTES

The Chapter Covers :

14.1 Introduction
14.2 What is System hnplementation?
14.3 What is System Conversion?
14.4 Types of Implementation
14.5 Conversion
14.6 Conversion Activities
14.7 User Traimng
14.8 Combating Resistance to Change
14.9 Post Implementation Review
14.1 Software Maintenance
14.11 Maintenance or Enhancement?
4.12 Primary Activities ofMaintenance Procedure
14.13 Reducing Maintenance Costs
14.14 References & Suggested reading

14.1 INTRODU CTION


Implementing a new system is an important aspect of system development life cycle.
In this stage the system is to be implemented which includes creating files as per the
system, installing bardware, installing terminals and making intranet, internet and
telecommunication etc. available. After it, the system having started functioning, the
solution to its future problems is also a part of life cycle. This chapter will deal with
some points of this s ort.
14.2 WHAT IS SYSTEM IMPLEMENTATION ?
Implementation is th e process of system development life cycle where the users
bring the developed system in working condition, it means the developed system
starts its work and a fter this it is handed over to the user.
14.3 WHAT IS SYSTEM CONVERSION ?
Conversion is that proc ess of completing all works which as a result hands the new 205
system over to the user.
Management Answer of the Check Your Progress
Information system
1. Implementation is the process ofsystem development life cycle where the users bring
the developed system in working condition, it means the developed system starts its
NOTES work and after this it is handed over to the user.
2. Implementationareofthreetypes :-
• Implementing the computer system by converting the manual system
• Implementing the new computer system by converting the old computer system
• Implementing the modified system by replacing the old computer system
3. Software maintenance is the name of the service after sale. The softwaresellers ac­
cept the responsibility ofsoftwaremaintenance after its implementation, it means the
upcoming problems ofit are to be solved by the developer groups themselves.

EXERCISE
1. What is system implementation?
2. What is system conversion?
3. Write down various types of implementation.
4. Explain the concept of conversion.
5. Define conversion activities.
6. Write a note on user training.
7. Explain the concept of post implementation review.
8. Define software maintenance.
9. How to reduce maintenance cost.

References & suggestive reading


Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing the
digital firm (17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems (11th ed.).
McGraw-Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th ed.).
McGraw-Hill Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age.
Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.).
Cengage Learning.

Haag, S., & Cummings, M. (2023). Management information systems for the
information age (11th ed.). McGraw-Hill Education.

212
UNIT HardwarP/Software

15 Hardware/Software Selection Selection and the


C.omputerContrad
and the Computer Contract NOTES

15.1 Introduction
15.2 Supplier and Types
15.3 Software Industry
15.4 Protedun: for HatdwQl'e/Soft\varc Selection
15.5 Major Phases of Selection
15.6 RoleofCoosnltant
15.7 Selection ofVendors
15.8 Post Installation Review
15.9 Software Selection
5.1 Criteria for Software Selection
15.11 Ownership
5.12 Fimmcial Consideration in Selection
15.13 Computer Contract
15.14 Art ofNegotiation
15.15 Respoosrniliti ndRemedi
15.16 Hardware&. Software
15.17 Delivery and."' M-tance
15.18 Wammties
15.19 Finance
15.20 Guanmtee fo Reliability
15.21 References & suggestive reading

15.1 INTRODUCTION
Several � of specific hardware and software are requ:i:red in system develop-
meot. The system aruilyst sele1--ts Ch.ese hardware a.ad sot\ware as per the require-
mentoftbe aystem. The wrong selection of hardwme and software affects lhe
funclion.al capacity of1he sysrem. Understanding i1li significance, the system analyst
should be at home in 8UCh selectioo. In the oroe;- oflhis eelc:dioll, the s)'lJlleln analyst
comes across includes many issuas of software am! hardware vendors wbicb
include many lbinp 81ICh as the bargaining ofproducts, contnlet etc. This chapter
throws light on these vcry th.ipgs.
213
Management
Information system
References & suggestive reading
Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing the
NOTES digital firm (17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems (11th ed.).
McGraw-Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th ed.). McGraw-
Hill Education. d
Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age.
Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.). Cengage
Learning.

Haag, S., & Cummings, M. (2023). Management information systems for the information
age (11th ed.). McGraw-Hill Education.

226
UNIT System Security And

16 System Security And Disaster Recovery


Planning

Disaster Recovery Planning NOTES

The Chapter Covers :

16.1 Introduction
16.2 Syst.em Security
16.3 System Security is an Important Concern
16.4 Threats to System Security
16.5 Personal Computer and System Integrity
16.6 RiskAnalysis
16.7 Contro!Measures
16.8 Recovery/Restart Requirements
16.9 System Failures and Recovery
16.1 o Disaster/Recovery Planning
16.11 Plans
16.12Team
16.13 PlanningTask
16.14Ethics in System Development
16.15 Ethics Cooes and Standards ofBehaviour
16.16 Information Systems Misuse - Threats & Countermeasures
16.17 References & suggestive reading

16.1 INTRODUCTION
The success of each system is measured by the basis of its internal and external
security. Since, for any company, its data and information are very important, the
loss due to disorder in the system and the wrong use of information because of
unauthorised access is an important issue for an institution and even the integrity of
the system is based on these things.
The system analyst uses many tactics to prevent the data from damage or loss which
include back up facility, the facility ofdata recovery in the case of system crash and
using password and encryption for preventing the unauthorised and illegal access to
information. This chapter will deal with system security and recovery planning.
16.2 SYSTEM SECURITY
Now-a-days, the newspapers, t.v., magazines all are full of the information regarding
the illegal access to the computer, viral attack, the cheating done using the computer, 227
and other events.
Management 2. These measures, generally, are divided into four parts, which are as follows :
Information system • Identification
• Access control
• Audit controls
NOTES
• Systemintegrity.
3. Backup can prove very important in recovery procedure. Ifthe database is physically
damaged, rollback is not possible.For it the first acceptable backup copy is re­
quired.
4. Defination the phases are:
• Requirement
• Disign
• Testing & implementation
• Manual.

EXERCISE
1. What is system security?
2. System security is an important concern. explain
3. Write down various threats to system security.
4. Explain the concept of personal computer and system integrity.
5. Define risk analysis.
6. Write a note on control measures.
7. Explain the concept of system failure and recovery.
8. Write down ethics in system development.

16.17 References & suggestive reading

Laudon, K. C., & Laudon, J. P. (2022). Management information systems:


Managing the digital firm (17th ed.). Pearson
· sy.iEducation.
t
O'Brien, J. A., & Marakas, G. M. (2020). Management information systems
(11th ed.). McGraw-Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th
ed.). McGraw-Hill Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the


digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th


ed.). Cengage Learning.

Haag, S., & Cummings, M. (2023). Management information systems for the
information age (11th ed.). McGraw-Hill Education.
240
UNIT Business Applications

17 Business Applications of
of Information
Technology

Information Technology NOTES

The Chapter Covers :

17.1 Introduction
17.2 What is IntemetActually ?
17.3 Growth oflnternet
17.4 Owner of Internet
17.5 Internet Service Provider
17.6 Anatonw oflnternet
17.7 Arpanet and Internet history of the World Wide Web
17.8 Internet Tools
17.9 Basic Internet Terminologies
17.10 Net Etiquette
17.11 Electronic Commerce
17.12 Technical and Organiz.ationalAspects
17.13 Components ofE-Commerce
17.14 Internet and E-Commerce
17.15 Constraints to E-Commerce
17.16 ITACT2000
17.17 Intranet
17.18 Extranet & Enterprise Solutions
17.19 References & suggestive reading

11.1 INTRODUCTION
Invention of computer in 20th centwy is a small step while invention of Internet can
be said a giant leap for the information technology. Computers are greatly used in
a big range of fields; thanks to the contribution of Internet It is simply defined as
a network of networks, interconnecting thousands of networks and hundreds of
millions of users across the world irrespective of geographical bowidaries together
for the sake of information , business, entertainment and a lot and lot more. This
chapter has mainly been dedicated to the incredible and basic facts of Internet.
WHAT IS INTERNET ACTUALLY ?
Internet can be easily defined as a network of networks. However it can be de­ 241
scnbed as different point of views as follows -
Management
Information system

·
17.19 References & suggestive reading
NOTES
{
Laudon, K. C., & Laudon, J. P. (2022). Management information systems:
Managing the digital firm (17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems


(11th ed.). McGraw-Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th
ed.). McGraw-Hill Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in


the digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th


ed.). Cengage Learning.

Haag, S., & Cummings, M. (2023). Management information systems for


the information age (11th ed.). McGraw-Hill Education.

272
UNIT Information System I

18 Information System for Business Operatio

Business Operations NOTES

The Chapter Covers :

18.1 E-Business

18.2 Components offence-BusinessModel

18.3 E-Business Trends

18.4 Information system for strategic advantage

18.5 Information System for Managerial Decision Support

18.6 Management Information systems

18. 7 Decision Support System (DSS)

18.8 Other Information systems

18.9 References & suggestive reading

All businesses should have both long-range and short-nmge planning of operational
systems to ensure that the possibilities of computer usefulness will be seized in a
reasonable time. Such planning will project analysis and costing, system
development life cycle considerations, and specific technology planning, liUCh as for
computers, databases, and communications. There must be computer capacity plan­
ning, technology forecasting, and personnel performance planning. h is more likely
that those in the organization with entrepreneurial vision will conceive of strategic
plans when such basic operational capabilities are in place and are well managed.
Most information systems are looked on as support activities to the business. They
mechanize operations for better efficiency, control, and effectiveness, but they do
not, in themselves, increase corporate profitabiliy. They are simply used to provide
management with sufficient dependable information to keep the business n1nning
smoothly, and they are used for analysis to plan new directions. Strategic informa­
tion systems, on the other hand, become an integral and necessary part of the
business, and directly influence market share, earnings, and all other aspects of
marlcetplace profitability. They may even bring in new products, new mmkets, and
new ways of doing business. They directly affect the competitive stance of the
273
organization, giving it an advantage against the compet:itonl.
,nagernent • Optimization Analysis ➔ the goal is to find the optimum value for one or
orrnation system more target variables, given certain constraints
Decision making process are playing important role in the Global Business Environ­
ment. Decision Support System supports not only for the decision making but also
NOTES communication among individuals. Further technology development and growing
inforatization lead to new systems, systems that support business decision making.
18.8 Other Information systems
Late 80's of the 20th century with raised information and environment complexity
management urged for new systems to support management. One of them is Execu­
tive lnformat:lon system that was product of need to develop further DSS. EIS goal
is to provide strategic information to top management about critical performance
indicators as information that show fulfillment of strategic company goals. While in
old information systems, information processing and analysis were made within
group for data processing.

Answer of the Check Your Progress


I. Electronic Business, or ''£-Business", may be defined broadly as any business pro­
cess that relies on an automated information system. Today, this is mostly done with
Web-based technologies.
2. • A shared digital business infrastructure,
• A sophisticated model for operations,
• An e-business management model,
• Policy, regulatory and social systems.

EXERCISE
I. How can you use information system in business?
2. Explain e-business.
3. Write down three primary process in e-business.
4. Write down components of E-business model.
5. Write a note on information system for strategic advantage.
6. Explain information system for managerial decision support.

18.9 References & suggestive reading


Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing the digital firm
(17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems (11th ed.). McGraw-Hill
Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th ed.). McGraw-Hill
Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age. Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.). Cengage Learning.

Haag, S., & Cummings, M. (2023). Management information systems for the information age (11th
!84 ed.). McGraw-Hill Education.
UNIT Advance Concept:

19 Advance Concepts in Information Syste

Information Systems NOTES

The Chapter Covers :

19.1 Entetprise Resource Planning


19.2 Components ofERP
19.3 Supply Chain Management
19.4 E-Supply Chain Management
19.5 Major Trends inE-SCM
19.6 Architecture ofE-Supply Cbain
19.7 E-SCM Process Integration
19.8 Customer Relationship Management Concepts
19.9 Electronic Customer Relationship Management
19.10 E-CRM Goals
19.11 E-CRM Business Models
19.12 Technologies for e--CRM
19.13 HowTechnology c an help inCRM
19.14 E-CRMSolutions
19 .15 Contact Management Software
19.16 Advantages ofE-CRM
19.17 E-CRMCapabilities
19.18 Implementing anE-CRMSystem
19.19 References & suggestive reading

19.1 ENTERPRISE RESOURCE PLANNING


ERP i.e. Enterprise resource planning is a business management system that inte­
grates all facets of the business, including planning, manufacturing, sales, and mar­
keting. ERP relates to the integrated software infrastructure that supports the
entire comp any business process.ERP refers to a view of a company and all its parts
as connected whole, rather than small silos of activity. As the ERP methodology has
become more popular, software applications have emerged to help business man­
agers implementERP in business activities such as inventory contro4 order tracking,
customer service, finance and human resources.
It is a comp any-wide computer software system used to manage and coordinate all
the resourr:es,information, and.functions of a business from shared data stores. 285
Management help ofnew technologies like internet, intranet, communications technologies etc..
Information system Key eSupply chainactivities include purchasing, materials management, distribution,
customer service, and inventory forecasting.

NOTES
4. SCM has three key processes :
• Planning
• Execution
• Perfonnance measurement
5. CRM can be defined as the strategies, processes, people and technologies used by
companies to successfully attract and retain customers for maximum corporate
growth and profit

EXERCISE
1. Explain Enterprise resource planning.
2. Write down components ofERP.
3. Write down advantages ofERP.
4. Write down disadvantages ofERP.
5. Explain supply chain management
6. Write down Components of Modem E-SCM.
7. Explain major trends in E-SCM
8. Write an example of SCM.
9. Explain Architecture ofE-Supply Chain Models
10. Explain CRM
11. Write down technologies ofE-CRM.
12. How Technology can help in CRM.
13. Write down advantages ofE-CRM.
14. Write down an example ofE-CRM.

References & suggestive reading


Laudon, K. C., & Laudon, J. P. (2022). Management information systems: Managing the
digital firm (17th ed.). Pearson Education.

O'Brien, J. A., & Marakas, G. M. (2020). Management information systems (11th ed.).
McGraw-Hill Education.

Baltzan, P., & Phillips, A. (2021). Business driven information systems (7th ed.).
McGraw-Hill Education.

Huber, G. P., & McDaniel, R. R. (2019). Information systems: Success in the digital age.
Wiley.

Stair, R., & Reynolds, G. (2019). Fundamentals of information systems (9th ed.).
Cengage Learning.
312 Haag, S., & Cummings, M. (2023). Management information systems for the
information age (11th ed.). McGraw-Hill Education.

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