INFORMATION SYSTEM

YEAR/PART: IV/II

1 KESHAV RAJ JOSHI

(M.Sc., CCNA, RHCE, CEH)

Keshav Raj Joshi

 SYLLABUS
2  Chapter 1: Information system (3 hours)
1. Classification and evolution of IS [IT vs. IS]
2. IS in functional area
3. Information system architecture
4. Qualities of information systems
5. Managing Information System resources
6. Balanced scorecard – case studies

 Chapter 2: Control, Audit and Security of Information system (5 hours)

1. Control of information system
2. Audit of information system
3. Security of information system
4. Consumer layered security strategy
5. Enterprise layered security strategy
6.KeshavExtended
Raj Joshi validation and SSL certificate
 7. Remote access authentication
3 8. Content control and policy based encryption
9. Example of security in e-Commerce transaction

 Chapter 3: Enterprise Management Systems (4 hours)

1. Enterprise management Systems (EMS)
2. Enterprise Software: ERP/SCM/CRM
3. Information Management and Technology of Enterprise Software
4. Role of IS and IT in Enterprise Management
5. Enterprise engineering, Electronic organism, Loose integration vs full
integration, Process alignment, Frame work to manage integrated
change, future trends

 Chapter 4: Decision support and Intelligent systems (7 hours)

1. DSS, operations research models
2.KeshavGroup
Raj Joshi decision support systems
 3. Enterprise and executive decision support systems
4 4. Knowledge Management, Knowledge based Expert system
5. Al Neural Networks, virtual reality, Intelligent Agents
6. Data mining, Data ware housing, OLAP, OLTP
7. Anomaly and fraud detection

 Chapter 5: Planning for IS (3 hours)

1. Strategic information system
2. Tactical information system
3. Operational information system

 Chapter 6: Implementation of information systems (7 hours)

1. Change Management
2. Critical Success Factors
3. Next generation Balanced scorecard
Keshav Raj Joshi
  Chapter 7: Web based information system and navigation
1. The structure of the web
5
2. Link Analysis
3. Searching the web
4. Navigating the web
5. Web uses mining
6. Collaborative filtering
7. Recommender systems
8. Collective intelligence

 Chapter 8: Scalable and Emerging information System techniques (8 hours)

1. Techniques for voluminous data
2. Cloud computing technologies and their types
3. MapReduce and Hadoop systems
4. Data management in the cloud
5. Information retrieval in the cloud
6. Link analysis in cloud setup
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7. Case studies of voluminous data environment

  Practicals:
6  The practical exercise shall include following three types of projects
on designing of information system
 E-commerce based information system for online transaction
processing
 web uses mining or collaborative filtering based processing system
 Scalable and emerging information system
 Balanced scorecard, Strategy Map
 References:
 Leonard Jessup and Joseph valacich, “Information Systems Today.”
Prentice hall
 J.Kanter, “Managing With Information System”, PHI
 M Levene, “ An Introduction to Search Engines and Web
Navigation” Pearson Education
 Jimmy Lin and Chris Dyer, “Data-Intensive Text Processing with Map
Reduce”, Morgan and Claypool.
Keshav Raj Joshi
 Evaluation and Marking Scheme
7
Chapters Hours Mark Distribution

1 4 8

2 8 14

3 4 8

4 7 12

5 3 5

6 3 5

7 8 14

8 8 14

Total 45 80

Keshav Raj Joshi

 CHAPTER 1
8
Information System (IS)
 A combination of hardware, software, infrastructure and
trained personnel organized to facilitate planning, control,
coordination, and decision making in an organization.
 Made up of 5 components:
 Hardware: Physical components of the technology
 Software: set of instructions that tells the hardware what to do
 Data: Collection of facts. E.g. your street address details and
your phone number are all pieces of data
 People: All people (Staffs) involved in IS
 Process: series of steps undertaken to achieve a desired
outcome or goal
Keshav Raj Joshi
 Data Vs Information
9
DATA INFORMATION
Data are simply facts or figures that need When data is processed, organized,
to be processed structured or processed in a given
context so as to make it useful is called
information

e.g the number of visitor to a website by country is an example of data, finding out
traffic (increasing/decreasing) from some country is meaningful information.

Data Data Input

Processing
Processing Feedback

Information
Output

Keshav Raj Joshi

Information System
 IS Vs IT
10

Payroll system
IT
Hardware
Inventory system
Software
Are used to build
Database IS
Marketing system
Network

Other related
Customer Service
components
system

IT can be considered as subset of IS

Keshav Raj Joshi
 Evolution of Information System
11
 Electronic Data Processing (1950-1960)
 During this period, the role of IS was mostly to perform activities like
transaction processing, recordkeeping and accounting. IS was
mainly used for electronic data processing (EDP). EDP is use of
computers in recording, classifying, manipulating, and summarizing
data. It helps workers.
 Management Information Systems (1960-1970)
 MIS process data into useful informative reports and provide
managers with the tools to organize evaluate and efficiently manage
departments within an organization. E.g. Cost trend, sales analysis
and production performance reporting systems. It helps middle
managers.
 Decision Support Systems (1970-1980)
 In this era, a major advancement was an introduction of the personal
computers (PC). It is developed to provide computer based support
for complex, non-routine decisions. It helps Senior managements. E.g
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product pricing and risk analysis systems.

  Executive Information Systems (1980-1990)
12
 This period gave rise to departmental computing due to many
organizations purchasing their own hardware and software to
suit their departmental needs. Instead of waiting for indirect
support of centralized corporate service department,
employees could use their own resources to support their job
requirements. This trend led to new challenges of data
incompatibility, integrity and connectivity across different
departments. Top executives then not using MIS and hence EIS
is developed.
 EIS offers decision making facilities to executives through
providing both internal and external information relevant to
meeting the strategic goals of the organization.
 Examples of the EIS are systems for easy access to actions of all
competitors, economic developments to support strategic
planning and analysis of business performance
Keshav Raj Joshi
  Knowledge management Systems (1990-2000)
13  During this era, the rapid growth of the intranets,
extranets, internet and other interconnected global
networks dramatically changed the capabilities of IS
in business, Moreover, there was a breakthrough in
the development and application of artificial
intelligence (AI) techniques to business information
systems. E.g. feedback database and helpdesk
systems.
 E-Business (2000 - Present)
 The Internet and related technologies and
applications changed the way businesses operate
and people work. Greater connectivity and higher
level of integration across application is done.
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 Classification of Information System
14
Information System

support of
Operations support system managerial Management support system
decision
Support of making
business
operations

Transaction Process Enterprise Management Decision Executive

processing Control Collaboration Information Support Information
system System System System System System

Classification of Information System

Keshav Raj Joshi

  Transaction Processing System:
15  They record and process data resulting from business transactions,
update operational databases and produce business documents.
 are designed to process routine transactions efficiently and
accurately .
 e.g. billing system to send invoice to customers, system to calculate
the weekly and monthly payroll and tax payments
 Process Control Systems:
 They monitor and control physical processes.
 In process control systems, decisions regarding the adjustment of
physical process are automatically made by computers.
 e.g. petroleum refiner uses electronic sensors linked to computers to
continually monitor chemical processes and make instant
adjustments that control the refinery process.

Keshav Raj Joshi

  Enterprise collaboration systems:
 They use a variety of information technologies to help people work
16 together.
 They help to communicate ideas, share resources and co-ordinate work
as a team.
 These information systems are used to enhance productivity and
creativity of teams in modern business.
 The team can efficiently communicate and co- ordinate their activities
via electronic mail, discussion forums, videoconferencing and multimedia
project
 Management Information systems:
 They provide managerial end users with information that supports day-to-
day decision making needs of managers and business professionals.
 MIS provide a variety of reports and displays to management.
 e.g sales managers may use their networked computers and web
browsers to get instant details about the sales of their products and
access their corporate intranet for daily sales reports that evaluate sales
made
Keshav Raj Joshi by each person.
  Decision Support Systems:

17  Computer systems that provide users with support to analyze complex

information and help to make decisions are called decision support systems
(DSSs).
 Decision Support systems are computer based information systems that
provide interactive information support to managers and business
professionals during decision making process.
 e.g. GIS uses geographic databases to construct and display maps and
other graphic displays that support decisions affecting geographic
distribution of people and other resources.
 E.g. Credit scoring system on banks
 Executive Information System:
 Is a kind of decision support system (DSS) used in organizations to help
executives in decision making. It does so by providing easy access to
important data needed in an organization to achieve strategic goals. It
usually has graphical displays on a user-friendly interface.
 E.g. top executives may use touch screen terminals to instantly view text and
graphics displays that highlight key areas of organizational and competitive
performance.
Keshav Raj Joshi
 IS in Functional Area
18
 Sales and Marketing systems:
 Is responsible for selling the organization‟s products or services.
 Marketing – concerned with identifying the customers for the
organization‟s product or service, determining what customer need or
want, planning and developing products and services to meet their
needs and advertising and promoting these products
 Sales- concerned with contacting customers, selling the products and
services, taking order, and following on sale.
 Manufacturing and production Systems:
 Is responsible for actually producing the firm‟s goods and services.
 Deals with planning, development and maintenance of production
facilities; establishment of production goal; storage and availability of
production materials; scheduling of equipment, facilities, materials and
labor requirement
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  Finance and Accounting System:
 Finance function is responsible for managing the firm‟s financial assets
19 such as cash stock and other investments to maximize the return on
these financial assets.
 To determine whether the firm is getting the best return on its
investments, the finance function must obtain a considerable amount
of information from sources external to the firm.
 Account function is responsible for maintaining and managing to
firm‟s financial records – receipts, depreciation, payroll, - for the flow of
fund in a firm
 Human Resources System:
 Responsible for attracting, developing and maintaining the firm‟s
workforce.
 Supports activities such as identifying potential employees,
maintaining complete records on existing employees, and creating
programs to develop employees‟ talents and skills.
 Manpower requirements for meeting the firm‟s plan (skill, education
level, position, number and talent)
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 Internet An Organization‟s
MIS
20
Financial
MIS
Business
transactions

Accounting
Transaction Databases MIS Exception reports
processing of
Demand reports
systems valid
transactions Key-indicator reports
Marketing
MIS Scheduled reports

Business
transactions
Databases Human
of
Resources Etc.
external
data MIS
Extranet
Etc.

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Functional Aspects
 Qualities of information systems
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 Understandable:
 information should already in a summarized form, it must be
understood by the receiver so that he/she will interpret it correctly
 must be able to decode any abbreviations, shorthand notations or
any other acronyms contained

 Relevant:
 should be pertinent and meaningful to the decision maker and
should be in his area of responsibility

 Complete:
 should contain all the facts that are necessary for the decision maker
 should be enough to satisfactorily solve the problem at hand
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 Qualities of information systems
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 Available:
 Information may be useless if it is not readily accessible in the desired
form, when it is needed
 Advances in technology have made high availability of information
 Reliable:
 information should be counted on to be trustworthy
 should be accurate, consistent with facts and verifiable
 Inadequate or incorrect information generally leads to decisions of
poor quality
 Concise:
 Too much information is a big burden on management and cannot
be processed in time
 information should be to the point and just enough – no more, no less
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 Qualities of information systems
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 Timely:
 Information must be delivered at the right time and the right place to
the right person
 Premature information can become obsolete or be forgotten by the
time it is actually needed
 some crucial decisions can be delayed because proper and
necessary information is not available in time, resulting in missed
opportunities
 the time gap between collection of data and the presentation of the
proper information to the decision maker must be reduced as much
as possible.

Keshav Raj Joshi

 Qualities of information systems
24
 Cost effective:
 The information is not desirable if the solution is more costly than the
problem
 cost of gathering data and processing it into information must be
weighed against the benefits derived from using such information

Keshav Raj Joshi

 Balanced Scorecard
25
 is a strategic planning and management system used to align
business activities to the vision and strategy of the organization by
monitoring performance against strategic goals
 The approach is to provide 'balance' to the financial perspective.

Why Use a Balanced Scorecard?

 Improve organizational performance by measuring what matters
 Increase focus on strategy and results
 Align organization strategy with workers on a day-to-day basis
 Improve communication of the organization‟s Vision and Strategy
 Prioritize Projects / Initiatives

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 4 Original Business Perspectives
26  The Balanced Scorecard model suggests that we view the organization
from 4 perspectives
 Then Develop metrics, collect data and analyze it relative to each of
these perspectives

Keshav Raj Joshi

 4 Original Business Perspectives
27
 Financial:
 What must we do to create sustainable economic value?
 Internal:
 To satisfy our stakeholders, what must be our levels of productivity,
efficiency, and quality?
 Innovations:
 Learning and growth
 To achieve our vision, how will we sustain our ability to change and
improve
 Customer:
 What do our customers require from us and how are we doing
according to those requirements?

Keshav Raj Joshi

 Balance scorecard measurements
28

Perspective Generic Measurements

Return of capital employed, economic value added, sales
Financial growth, cash flow

Customer satisfaction, retention, acquision, profitability,

Customer market share
measure of how well the company identifies the customer's
future needs.
Operation- measure of quality and costs
Post sales service - measures for warranty, repair and
Internal treatment of defects and returns
Includes measurement for:
People - employee retention, training, skills, morale
Learning and Systems - Measures of availability of critical real time
growth
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information needed for front line employees.
 Key Implementation Success Factors:
29

 Obtaining executive sponsorship and commitment

 Involving a broad base of leaders, managers and employees in
scorecard development
 Choose the right Scorecard Champion
 Beginning interactive (two-way) communication first
 Viewing the scorecard as a long-term journey rather than a short-term
project
 Getting outside help if needed

Keshav Raj Joshi

 Framework For Information Systems Architecture
30
 What is an Information Systems Architecture?
 An information systems architecture provides a unifying
framework into which various people with different
perspectives can organize and view the fundamental
building blocks of information systems
 Stakeholders have different views of the system and each has
something “at stake” in determining the success of the system.
 Stakeholders can be broadly classified into four groups:
System Owners
System Users
System Designers
System Builders

Keshav Raj Joshi

 Framework For Information Systems Architecture
31
• System owners pay for the system to be built and maintained. They
own the system, set priorities for the system, and determine policies for
its use. In some cases, system owners may also be system users.
• System users are the people who actually use the system to perform
or support the work to be completed. In today‟s team-oriented
business world, system users frequently work side-by-side with system
designers.
• System designers are the technical specialists who design the system
to meet the users requirements. In many cases, system designers may
also be system builders.
• Systems builders are the technical specialists who construct, test, and
deliver the system into operation.

Keshav Raj Joshi

 Framework For Information Systems Architecture
INFORMATION SYSTEMS FRAMEWORK

32
INFORMATION SYSTEM FOCUSES

SYSTEM INFORMATION SYSTEM SCOPE

OWNERS
(purpose and vision; goals and objectives; costs and benefits)

S
Y
S SYSTEM INFORMATION SYSTEM REQUIREMENTS
USERS
T (WHAT the system "is" and "must do" independent of technology)
E
M

A
N
A
L
Y SYSTEM INFORMATION SYSTEM DESIGN
S DESIGNERS
T
(HOW the system will be implemented using technology)
S

SYSTEM INFORMATION SYSTEM COMPONENTS

BUILDERS
(the actual, technical implementation of the system)

Software Interface Networking

Data Technology Technology Technology
Technology

Keshav Raj Joshi

 Framework For Information Systems Architecture

33  System Owners
 Usually come from the ranks of management
 usually responsible for budgeting the money and time to develop, operate, and
maintain the information system
 For medium-to-large information systems, the owners are usually middle or
executive managers
 For smaller systems, the owners may be middle managers or supervisors
 For personal information systems, the owner and user are the same person
 They are concerned with the „value‟ returned by the system. Value is measured
in different ways.
• What is the purpose of the system?
• What is the vision of the system – goals and objectives?
• How much will the system cost to build?
• How much will the system cost to operate?
• Will those costs be offset by measurable benefits?
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• What about intangible benefits?

 Framework For Information Systems Architecture
 System Users
34
 Remote and Mobile Users: employees of the business
May be geographically separated from the business
An example is the sales and service representatives
 External Users
 System Designers
 System designers translate users' business requirements and constraints
into technical solutions.
 Design the computer files, databases, inputs, outputs, screens, networks,
and programs that will meet the system users' requirements.
 System Builders
 They construct the information system components based upon the
design specifications from the system designers.
 The applications programmer is the example of a system builder
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 In many cases, the system designer and builder may be the same.
 Framework For Information Systems Architecture
 System Analyst
35
For the system owners and users, the analyst typically constructs and
validates their views
For the system designers and builders, the analyst (at the very least)
ensures that the technical views are consistent and compatible with
the business views

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 Managing Information System resources
36

 Hardware: Physical components of the technology

 Software: set of instructions that tells the hardware what to do
 System software - operating system program
 Application software - e.g payroll program
 Data: Collection of facts. E.g. your street address details and your phone
number are all pieces of data
 People: All people (Staffs) involved in IS
 Process: series of steps undertaken to achieve a desired outcome or
goal
 Telecommunications: are used to connect, or network, computer
systems and portable and wearable devices and to transmit
information.

Keshav Raj Joshi

 Benefits Managing Information System resources
37
 Creating a context for IS resource decision-making
 Aligning IS and business goals
 obtaining IT capital investment approvals

Steps for managing IS resources

 Assessment of current information resources
 establishment of information system vision
 establishment of an IT architecture for that vision
 formulation of an IS strategic plan to evolve an organization's
information resources form their current status toward the
desired vision and IT architecture
 Formulation of short-term operational IS plans based on the IS
strategic plan
Keshav Raj Joshi
 38

THANK YOU
ANY QUESTIONS??

Keshav Raj Joshi

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