Dr. Ashish Kr.

Gautam
Institute of Management Studies (IMS)
Banaras Hindu University (BHU)
[email protected]
 MANAGEMENT INFORMATION SYSTEM

Management Information Systems

Definition: It refers to the processing of information through computers and other
intelligent devices to manage and support managerial decisions within an
organization.
Management Information System (MIS) is a study of people, technology,
organizations, and the relationships among them in a broader sense. However, in
precise terms MIS is a software system that focuses on the management of
information technology to provide efficiency and effectiveness or strategy
decision making. The term is often used in the academic study of businesses and
has connections with other areas, such as information systems, information
technology, informatics, e-commerce and computer science.
According to Schwartz, ‘MIS is a system of people, equipment, procedure,
documents and communication that collects, validates, operates on transformers,
stores, retrieves and present data for use in planning, budgeting, accounting,
controlling and other management process’.
According to Jerome Kanter, ‘MIS is a system that aids management in making,
carrying out and controlling decisions’.
According to Davis and Olson, ’MIS is an integrated user machine system
designed for providing information to support operational control, management
control and decision making functions in an organisation. The information
systems make use of resources such as hardware, software, man, procedures as
well as suppliers’.

Basic Concepts: Management Information System, commonly referred to as

MIS is a phrase consisting of three words: management, information and systems.
Looking at these three words, it‘s easy to define Management Information
Systems as systems that provide information to management.
Management : We can define management in many ways like, "Manage Man
Tactfully" or Management is an art of getting things done by others. However,
for the purpose of Management Information System, management comprises the
process and activity that a manager does in the operation of their organization,
i.e., to plan, organize, direct and control operations.
Management has been viewed as be function, a process, a profession and a class
of people. It refers to the kind of task and activities that are perform by managers.
The specific nature of the activities is determined by such managerial functions
as planning, organising, directing, leadership and controlling.
1. Planning: It is the process of deciding in advance the courses of action to
be followed and when and how to undertake these. Its objectives in the best
possible manner and for anticipating future opportunities and problems
2. Organising: It is formal grouping of people and activities to facilitate
achievement of the farm’s objectives. It is need for assigning
responsibilities, jobs and hierarchy among personnel.
3. Controlling: It is the checking the progress of plans and correcting any
deviations that may occur along the way.
4. Directing: It is the process of activating the plans, structure and group
efforts desired direction. It is needed for implementation of plans by
providing desired leadership motivation and proper communication.
The management can be group into 3 hierarchical levels –
i. Top Management: - It is establishes the policies, plans, objectives and
budget framework under which various departments will operate of the
organisation.
ii. Middle Management: - It has the responsibility of implementing the
policies and overall plans of the top management.
iii. Junior Management:-It has the responsibility of implementing day to day
operations and decisions of the middle management to produce goods and
services to meet the revenue, profit and other goals
Information: Information simply means processed data or in the layman
language, data which can be converted into meaningful and useful form for a
specific user.
Information is the result or product of processing data. Information can be defined
as the data which is organised and presented at a time and place so that the
decision-maker may take necessary act.
Information consists of data that has been retrieved, processed or otherwise used,
for informative or inferential purposes, arguments or as a basis for forecasting.

For example, some supporting documents, ledgers and so on, which comprise
source material for profit and loss statements may be used by the decision maker
for profit planning and control.

Concept of Data and information :

By data we mean the facts or figures representing an object, place or the events
occurring in the organization. It is not enough to have data (such as statistics on
the economy). Data themselves are fairly useless, but when these data are
interpreted and processed to determine its true meaning, they become useful.
Characteristics of Data :
• They are facts obtained by reading, observation, counting, measuring and
weighing etc. which are then recorded
• Data are derived from external and internal sources (activities with firm).
• Data may be produced as an automatic by-product of some routine but essential
operation such as the production of an invoice or alternative a special counting or
measuring procedure must be introduced and the result recorded.
• The source of data need be given considerable attention because if the sources
of the data flawed, any resulting information will be worthless.
Data Processing : Data or processing systems perform the essential role of
collecting and processing the daily transactions of the organizations. Data
processing is necessary to ensure that the day-to-day activities of the organization
are processed, recorded and acted upon. Files are maintained which provide both
the current data for transaction, for example the amount invoiced and cash
received during the month for statement preparation, and which also serve as a
basis for operational and tactical control and for answering enquiries.
By information, we mean that the data have been shaped into a meaningful form,
which may be useful for human beings. So, when data are processed, interpreted,
organized, structured or presented so as to make them meaningful or useful, they
are called information.
Information provides context for data. Information is created from organized
structured and processed data in a particular context, "information can be
recorded as signs, or transmitted as signals. Information is any kind of event that
affects the state of a dynamic system that can interpret the information.
Conceptually, information is the message (utterance or expression) being
conveyed. Therefore, in a general sense, information is 'knowledge
communicated or received concerning a particular fact or circumstance".

Characteristics of Good Information: Good information is that which is

used and which create value. Experience and research shows that good
information has numerous qualities which are :
1. Relevance : Information must be relevant to the problem being considered.
Too often reports, messages, tabulations etc. contain irrelevant parts which most
prevent the user of the information to get the actual meaning of what the sender
wants.
2. Accuracy : Information should be sufficiently accurate for it to be relied upon
by the manager and for the purpose for which it is intended.
3. Completeness : Ideally, all the information required for a decision should be
available. However, in practice, this is not often obtainable. What is required is
that the information is complete in respect of the key elements of the problem.
This suggests that there should be interaction between information provides and
users to ensure that the key factors are identified.
4. Confidence in the Source : For information to have value it must be used. For
it to be used managers must have confidence in the source. Confidence is
enhanced: Data Processes Output a. The source has been reliable in the past b.
There is good communication between the information producer and the
manager.
5. Communication to the Right Person : All persons have a defined sphere of
activity and responsibility and should receive information to help them carry out
their designated tasks. In practice this is not always as easy as it sounds. It is quite
common for information to be supplied to the wrong level in the organization. a
superior may not pass it on the person who needs it whilst subordinates may hold
onto information in an attempt to make themselves seem indispensable.

Functions of Information:
(a) Reduction of Uncertainty: Uncertainty exist where there is less than perfect
knowledge. Rarely, if ever is there perfect knowledge but relevant information
help to reduce the unknown.
(b) An aid to Monitoring and Control: By providing information about
performance and the extent of deviations from planned level of performance,
management are better able to control operation.
(c) As a Means of Communication: Managers need to know about
developments, plans, forecasts, impending changes and so on.
(d) As a Memory Supplement : By having historical information about
performance, transactions, results of past actions and decisions available for
reference, personal memories are supplemented.
(e) As Aid to Simplification : By reducing uncertainty and enhancing
understanding, problems and situations are simplified and become more
manageable

MIS - Classification of Information

Information can be classified in a two ways:
1. Classification by Characteristic :-Based on Robert Anthony’s (1965)
classification of Management, information used in business for decision-making
is generally categorized into three types:
i. Strategic Information: Strategic information is concerned with long
term policy. Decisions that defines the objectives of a business and checks
 how well these objectives are met. For example, acquiring a new plant, a
new product, diversification of business etc.
ii. Tactical Information: Tactical information is concerned with the
information needed for exercising control over business resources, like
budgeting, quality control, service level, inventory level, productivity level
etc.
iii. Operational Information: Operational information is concerned with
plant/business level information and is used to ensure proper conduction
of specific operational tasks as planned/intended. Various operator
specific, machine specific and shift specific jobs for quality control checks
comes under this category.

2. Classification by Application
i. Planning Information: These are the information needed for establishing
standard norms and specifications in an organization. This information is
used in strategic, tactical, and operation planning of any activity.
Examples of such information are time standards, design standards.
ii. Control Information: This information is needed for establishing control
over all business activities through feedback mechanism. This
information is used for controlling attainment, nature and utilization of
important processes in a system.
iii. Knowledge Information: Knowledge is defined as "information about
information". Knowledge information is acquired through experience and
learning, and collected from archival data and research studies.
iv. Organizational Information: Organizational information deals with an
organization’s environment, culture in the light of its objectives. Karl
Weick's Organizational Information Theory emphasizes that an
organization reduces its equivocality or uncertainty by collecting,
managing and using these information prudently. This information is used
by everybody in the organization; examples of such information are
employee and payroll information.
v. Functional/Operational Information: This is operation-specific
information where the organization assists to perform its functions of day-
day transactions. This information is mostly internal to the organization.
vi. Database Information: It is a collection of related data that is stored,
retrieved, and managed to name databases. For example, inventory data,
sales data, supplier information etc.

System : The system can be explained in a following ways:

• System can be defined as a set of elements joined together for a common
objective.
• A group of interrelated or interacting elements forming a unified whole e.g.,
business organization as systems.
• A group of interrelated components working together towards a common goal
by accepting input and producing output in an organized transformation process

Concept of a System
A System is a group of interrelated components working together toward a
common goal by accepting inputs and producing outputs in an organized
transformation process.
System Concepts : The concepts of a system are Technology, Application,
Development and Management.
a. Technology : Computer networks are systems of information processing
components that are a variety of hardware, software and telecommunication
technology.
b. Application : That electronic business and commerce application involves
interconnected business information system
c. Development : That developing way to use IT in business includes designing
the basic component of information system.
d. Management : Managing IT emphasize the quality, strategic business value
and security of an organization in information system.

Components of a System : There are three basic components of a system;-

(a) Input : Input involves capturing and assembling elements that enter to the
system to be processed. Some of the inputs are raw materials, energy, data etc.
(b) Processing : It involves transformation process that converts input to output.
(c) Output : It involves transforming element that has been produced by a
transformation process to their ultimate destination.
Types of System :
(a) Dynamic System : When the interrelated component of the system interacts
with each other and this controlled by management then it is known as Dynamic
System.
(b) Cybernative System : Dynamic System implementing the concept of
feedback and control is known as Cyber native System.
(c) Open System : A system got interacts with other system in its environment
by exchanging input and output with its environment
(d) Adoptive System : A System having the ability to change itself and its
environment in order to survive is called an Adoptive System

Information System
➢ An information system can be any organized combination of people,
hardware, software, communication software and data resource that
collect, store, and process the data into meaningful information for
organizational use.
 ➢ An information system can be defined as a formal, sociotechnical,
organizational system of interrelated components that collect (or
retrieve), process, store and distribute information to support decision
making, coordination and control in an organization
➢ Information systems (IS) are formal, organizational and sociotechnical
systems which are devised to collect, process and distribute information.
An information ‘valuable’ only when supplied ‘timely’ and ‘accurately’ to
a management. This insatiable need for information in a business
organization has given rise to the discipline of management information
system, which deals with the methodical study of a seemingly disparate set
of subjects that includes management systems, information systems,
information theory and information technology.

Information Systems Over the Years

Information systems have undergone a remarkable transformation in the last 40
years of their existence. Initially, information systems were designed to perform
a specific task. The objective was to perform a task as quickly as possible with
the minimum number of errors. The concept of using information systems for
taking decisions had not been realized before. Organizations used information
systems for data processing only. Be it salary processing or bill processing,
information systems previously were focused only on the efficiency of the
operation. The people who worked on these systems had a certain knowledge
about the system and the user interface of the systems were very basic (character
user interface). The output was in the form of salary slips, etc. Processing the data
in the most efficient way was the prime focus of such systems. Most of these
systems used file-based data storage systems on which a program would work,
i.e., the program would be able to access the data and organize it but the data
would be stored in a file. The problem with this type of a system was that it led
to the replication of data and loss of consistency.
Over the years, information systems have changed. Now the focus is more on
helping the management by providing information useful for decision-making.
Data processing systems have become obsolete. The focus is on delivering the
right information to the right people at the right time. Information systems have
become faster, more accurate and user friendly for easy applicability. People who
work on information systems nowadays, do not possess much knowledge about
the systems per se. They are general users. The systems have become so friendly
that they do not require any specialization in information systems. Newer
concepts have emerged in information systems to help organizations get better
value for their money. Concepts like client–server architecture, networking,
distributed computing, centralized database, graphical user interface, the Internet,
etc., have completely transformed information systems. Gone are the bulky
mainframe systems requiring loads of money to run. Now more money is required
to procure the software than the hardware.
Somogyi (1987) placed the development of information systems in a three era
model. According to him, the initial era of information systems dealt primarily
with the Electronic Data Processing (EDP). These systems worked as isolated
islands of data processing without any linkage with any other process. Their main
focus was on automating routine repetitive work like payroll preparation, etc., by
batch processing of data files. The format of data processing was very inflexible
and technology was at the forefront. The data processing tasks were tailored to
suit technological requirements. This required specialized personnel who
understood the complexities of technology; the general management personnel
were unable to use it. Ease of use was definitely not a key feature of such systems.
With the advent of personal computers and networking, it became easier to
provide information to the management for better decision-making. This was the
era of management information systems in which large databases, which housed
all transaction level data began to be processed for obtaining significant
information for managers. In this era, the business context of information came
to the forefront and technology began to be used more as an enabler rather than
as an end in itself. The systems began to become user-friendly, so that general
management personnel could use it without much difficulty or training. In the
modern era, the focus has shifted further to provide strategic value to
organizations, so that competitive advantage could be gained through the
intervention of information systems. Information systems are now closely
integrated with the business strategy to get better value. Technology in such
systems is used as an enabler and the business strategy takes the centre stage.

Subsystems of an Information System- Information system is a special type of

system, which allows storage, retrieval and processing of data in a secure
environment. Logically, the major subsystems of information system are as
follows:
• Data Repository: This is a subsystem, which is at the core of any
information system. Mostly this is a relational database management
system, which has preformatted and structured tables for the storage of
data. These structures are arranged in a way that helps in faster storage and
retrieval of data with adequate security.
 • User Interface: This subsystem handles the interaction of the system with
the user and hence, it has to manage issues related to the display of data on
an output medium. This can be either graphical or based on character
depending on the level of ease offered to the user.
• Network: This subsystem ensures communication between the different
entities of an information system. It is crucial for the functioning of an
information system.
• Computer Hardware: One needs an IT infrastructure to use information
systems in an effective manner. Almost all the components of an
information system are housed in some kind of computer hardware to
enable it to perform the tasks better. For example, an algorithm to find the
lowest of three numbers can also be calculated manually; but under a
computerized system, it will be much faster and efficient.
• System Software: Some basic software are required for the efficient
functioning of information systems. These system software do not directly
aid in the functionality of information systems but work as enablers. For
example, operating systems, etc.
• Input/Output: Sometimes, this is clubbed with the User Interface (UI) to
suggest that I/O functions are handled by UI alone. However, in some
systems, I/ O may be user-independent; for instance, when an alert is
activated, the input for the alert comes from some other system input rather
than a user.
• Business Rule (Process): This is a set of rules, which governs how a
system should function to imitate the real business process.
• Algorithm/Program/Application Software: This is the actual invisible
component, which integrates all the components. The logic (business rule)
is defined in the program (embedded in it), which enables the functioning
of the information system for some specific purpose. All the above
components work in concert to establish a functional information system.

Components of Information System -A system consists of two types of

components, abstract system components and physical system components.
Abstract system components perform the operations such as collecting input data,
processing the data and generating information from that data. Physical system
components consist of various elements such as hardware, software and human
resources. There are a few more components of an information system, such as:
Data: Input that the system takes to produce information.
Hardware: A computer and its peripheral equipment such as input, output and
storage devices.
Software: Application programs or a set of instructions that process the input
data using computers, generate information and store information for future use.
Network: A collection of computer systems connected to each other for
communication to share the information.
Manpower: Information system professionals and users who perform various
organizational operations such as analysis of information, designing and
construction of the information system, and maintenance of the information
system. The workforce could comprise IT experts, managers and workers.
Graphical User Interface (GUI): This is an interface for the users of an
information system to work with information on the computer system. A user can
operate, process and retrieve information from the computer storage using GUI

Disadvantages Of Information System -Following disadvantages are likely to

be there from information systems:
1. ‘Deskilling’ of workers:-Introduction of new technologies, especially for
automation, sometimes render obsolete the existing skill of some workers. Many
industries such as the automobile, steel, insurance industries, banks, have gone
through periods of massive layoffs because of intense automation efforts.
Therefore, while computerisation can increase operational efficiency and
improve profits, sometimes it is also the root cause of workforce reduction.
2. Information overload: Generation of excessive amounts of information can
overwhelm managers who must digit it and used it to make decisions. At times,
this improvement also has its downside.
3. Employee mistrust: Employees sometimes fear that computers eventually
replace them. They may view information system with scepticism; unless they
are assured that their jobs are not in danger.
4. Increased competitive pressure: There is increased pressure on small and
medium-scale industries, failing which they are steadily being pushed out of the
marketplace by larger companies.
5. Disenchantment with IS: Many organisations are unable to value the
information systems and technologies to their organisations vis-à-vis the return
on investment. In coming years, the MIS will experience close scrutiny of its
abilities to the delivery on its promises.
6. Security breaches: when organisation introduce new and sophisticated
technologies, they most also find new ways to protected these assets from theft,
pilferage, and security breaches. Therefore computers and information system
actually increase the operating costs of an organisation.

Categories of Information systems

1. Transaction Processing System (TPS)
2. Decision Support System (DSS)
3. Executive Support System ESS
4. Office Automation Systems (OASs)
5. Management Information System (MIS)

1. Transaction Processing System (TPS)

Definitions
➢ Transaction processing systems are used to record day to day business
transactions of the organization. They are used by users at the operational
management level.
➢ It handle routine information items, more often than not manipulating data
in some constructive way as it enters or leaves the firm's databases. An
order entry program is an example of a TPS. Reasons for TP are recording,
classification, sorting, calculation, summarization, storage and exhibit of
results.
➢ The system designed for processing day to day transaction in an
organisation is called TPS. This system deals with collecting and
processing a large volume of data which mainly helps junior level
management in discharging their responsibilities
The main objective of a transaction processing system is to answer routine
questions such as;
How printers were sold today?
How much inventory do we have at hand?
What is the outstanding due for John Doe?
 By recording the day to day business transactions, TPS system provides answers
to the abovequestions in a timely manner.
• The decisions made by operational managers are routine and highly structured.
• The information produced from the transaction processing system is very
detailed.
For example, banks that give out loans require that the company that a person
works for should have a memorandum of understanding (MoU) with the bank. If
a person whose employer has a MoU with the bank applies for a loan, all that the
operational staff has to do is verify the submitted documents. If they meet the
requirements, then the loan application documents are processed. If they do not
meet the requirements, then the client is advised to see tacticalmanagement staff
to see the possibility ofsigning a MoU.
Examples of transaction processing systems include
•Point of Sale Systems – records daily sales
•Payroll systems – processing employees salary, loans management, etc.
•Stock Control systems – keeping track of inventory levels
•Airline booking systems – flights booking management.

2. Decision Support System (DSS)

Definitions
Decision support systems are used by senior management to make non-routine
decisions. Decision support systems use input from internal systems
(transaction processing systems and management information systems) and
external systems. The main objective of decision support systems is to provide
solutions to problems that are unique and change frequently.
Decision Support Systems : Decision Support systems are methodical models
used to progress managerial or professional decision making by bringing
significant data to a manager's notice. In many cases, these systems use the
identical data as management information systems, but DSS purify the data to
make it more functional to managers. It support with exceptional and
nonrecurring decisions, which are moderately unstructured. Mainly what
factors to reflect on and what information are needed.
 Decision support systems answer questions such as;
i. What would be the impact of employees' performance if we double the
production lot at the factory?
ii. What would happen to our sales if a new competitor entered the market?
Decision support systems use sophisticated mathematical models, and
statistical techniques (probability, predictive modeling, etc.) to provide
solutions, and they are very interactive. Examples of decision support systems
include
• Financial planning systems – it enables managers to evaluate alternative
ways of achieving goals. The objective is to find the optimal way of achieving
the goal. For example, the net profit for a business is calculated using the
formula Total Sales less (Cost of Goods + Expenses). A financial planning
system will enable senior executives to ask what if questions and adjust the
values for total sales, the cost of goods, etc. to see the effect of the decision
and on the net profit and find the most optimal way.
• Bank loan management systems – it is used to verify the credit of the loan
applicant and predict the likelihood of the loan being recovered.

3. Office Automation Systems : Office automation systems endow with

electronic mail, word processing, electronic filing, scheduling,
calendaring, and other kinds of support to office workers. First introduced
with personal computers, these "groupware" applications became essential
with the extensive use of personal digital assistants. It combines word
processing, telecommunications and data processing to computerize office
information, draws on stored data as a result of data processing and
comprise handling of correspondence, reports and documents
There are four types of office automation Systems: • Document management
systems • Communication systems • Teleconferencing systems • Office support
systems
4. Executive Support System ESS- ESS is used primarily for structured
management and strategic planning applications

5. Management Information System (MIS)- MIS is all about collecting

and processing of raw data into useful information and its dissemination to
the users at various levels of management in the required format. It
produces information, which impacts managements to understand the
business situation of the organization and take decisions accordingly. In
fact a full MIS consists of all the systems that the institution uses too
generate the information that guide management's decisions and actions.
However, it is tough identifying the needs of different types of strategic,
tactical and operational information required at top level, middle level and
low level management, collect data from the users, processing them to
generate information and disseminate to all the levels of the management.
In this unit we will discuss some issues in collecting, processing and
creating information by a Management Information System.
Characteristics of MIS :
1. Systems Approach : The information system follows a systems approach.
Systems approach means taking a comprehensive view or a complete look at the
interlocking sub-systems that operate within an organization.
2. Management Oriented : Management oriented characteristic of MIS implies
that the management actively directs the system development efforts. For
planning of MIS, top-down approach should be followed. Top down approach
suggests that the system development starts from the determination of
management's needs and overall business objective. To ensure that the
implementation of systems polices meet the specification of the system,
continued review and participation of the manager is necessary.
3. Need Based : MIS design should be as per the information needs of managers
at different levels.
4. Exception Based : MIS should be developed on the exception based also,
which means that in an abnormal situation, there should be immediate reporting
about the exceptional situation to the decision -makers at the required level.
5. Future Oriented : MIS should not merely provide past of historical
information; rather it should provide information, on the basis of future
projections on the actions to be initiated.
6. Integrated : Integration is significant because of its ability to produce more
meaningful information. Integration means taking a comprehensive view or
looking at the complete picture of the interlocking subsystems that operate within
the company.
7. Common Data Flow : Common data flow includes avoiding duplication,
combining similar functions and simplifying operations wherever possible. The
development of common data flow is an economically sound and logical concept,
but it must be viewed from a practical angle.
8. Long Term Planning : MIS is developed over relatively long periods. A
heavy element of planning should be involved.
9. Sub System Concept : The MIS should be viewed as a single entity, but it
must be broken down into digestible sub-systems which are more meaningful.
10. Central Database : In the MIS there should be common data base for whole
system Functions of a Management Information System :
The management information system is an integrated, computerized and machine
user system providing the required information to support the operation and
decision making. The main functions of a management system are the following.
1. Data Capturing : MIS captures data from various internal and external
sources of an organization. Data capturing may be manual or through
computer terminals. End users, typically record data about transactions on
some physical medium such as paper form or enter it directly into a
computer system.
2. Processing of Data : The captured data is processed to convert it into the
required management information. Processing of data is done by such
activities as calculating, comparing, sorting, classifying and summarizing.
3. Storage of Information : MIS stores processed or unprocessed data for
future use. If any information is not immediately required, it is saved as an
organizational record. In this activity, data and information are retained in
an organized manner for later use. Stored data is commonly organized into
fields, records, files and databases.
4. Retrieval of Information : MIS retrieves information from its stores as
and when required by various users. As per the requirements of the
management users, the retrieved information is either disseminated as such
or it is processed again to meet the exact demands.
5. Dissemination of MI : Management information, which is a finished
product of MIS, is disseminated to the users in the organization. It could
be periodic, through reports or on-line through computer terminals.

Structure of MIS
1. Hardware: Hardware refers to the physical data processing equipment
and peripheral devices, For example, CPU, monitor, keyboard, printer,
drives, tapes, communication devices, etc.
2. Software: Software is a broad term given to the instructions or programs
that direct the operating of the hardware. Software could be of two types,
i.e. system software and application software.
3. Database: The database consists of all data utilized by application
software. Data is stored in files.
4. Procedures: Formal operating procedures, which are required to operate
a system, such as manuals, are also regarded as physical elements.
 5. Operating Personnel: Personnel like Computer Operators, Computer
Programmers, System Analysts, System Managers, etc., are the operating
people of the information systems.
6. Input and Output: Various physical inputs and outputs from the
information system, existing in forms like printout, reports etc
7. Medium and Messages: It includes various communication media or
channels and actual content (information, data, reports etc.) being
transmitted through these communication mediums

MIS Growth
➢ Richard Nolan (1974) has discussed a framework for IS planning,
popularly known as Nolan stage model.
➢ The basic premise of the model is that any organization will move through
stages of maturity with respect to the use and management of IS.
➢ While progressing, an organization must go through each stage of growth
before it can move to the next stage.
Stage 1 Initiation
Stage 2 Contagion
Stage 3 Control
Stage 4 Integration
Sage 5 Data Administration
Stage 6 Maturity

Stage 1 Initiation
i. In this stage, the technology is placed in the organization. A few
applications in the organization are computerized.
ii. This stage depicts that computer system is used for transaction-processing
which is basically the bottom line of the organization hierarchy.
iii. At TPS level typically, a high volume of data processing is done in terms
of accounting the business transactions, billing and payroll, etc.
iv. The primary focus is cost reduction and only specialized applications are
run with a specialized staff.
v. The organization tries to get operational efficiency and thereby limited
value from the information systems.
vi. Users are mostly unaware of the technology and there are only a small
number of users
vii. This stage is characterized by minimum planning.
viii. Management in not very keen on monitoring the information system.

Stage 2 Contagion
i. This is the second stage which also known as expansion stage. This stage
is characterized as unplanned and uncontrolled growth.
ii. It involves a rapid proliferation of the computer resource all over the
organisation, sometimes based on the actual organisational needs and
sometimes just to add some equipment to feel important in the
organisation.
iii. Users are superficially enthusiastic without sincere involvement..
iv. This is the phase when most of the organisational units feel that they should
have an access to the computer hardware, develop software and have the
trained manpower working in their units.
v. Due to the non-planned proliferation, the MIS function grows
disproportionately and, there is, absolutely no control on the MIS budgets
resulting in confusion in the organisation.

Stage 3 Control
i. Because of the unplanned growth, a need arose to manage the
information system.
ii. The management gets conscious of the fact that the benefits being derived
are not in proportion to the actual expenditure on the MIS activity, and
the organisation starts exercising controls and some restraint in
sanctioning the budgets.
iii. The management takes serious interest in planning the function, and it
results in a better control on the activity.
iv. The MIS budgets get checked with the result that
v. The users also get aware of the fact that information technology should be
used to some meaning rather than just having some infrastructure under
them.
vi. Formalized planning and control of MIS function are established.
vii. The growth of projects is controlled by imposing changes on user
department for information system development and the use of computer
services.
viii. Users are involved with some accountability imposed on them.

Stage 4 Integration
i. After the management has been able to provide the control guidelines to
the MIS function, the organisation starts thinking in terms of integrated
applications to avoid the duplication of efforts and systems, as well as,
providing better levels of integrity to the systems and data.
ii. This is the stage when the organization transitions from a data processing
outlook to more holistic information-based decision-making approach
iii. Data-based systems are used, and the applications are designed as
subsystems of the organisational system.
iv. Capable database management systems are used to manage the data, and
the data communication facilities are used to transfer data from one
location to another.
v. At this stage there is tremendous demand for IT applications. As a result,
there is a hike in expenditure and problem of redundancy of data occurs..
Sage 5 Data Administration
i. This is the phase where the organization begins to appreciate the value of
information and makes efforts to centralize the data management to take
advantage of information based decision-making.
ii. This stage has come into existence to overcome and control the problem
of data redundancy.
iii. At this moment it is realized that data is an important resource of the
organization. So it should be duly planned and managed.
iv. This stage is characterized by the development of an integrated database
serving whole organization’s information need. It also develops an IT
application to successfully access these databases.
v. Users become more accountable for the integrity and appropriate use of
the data and information resources.

The Benefits of Management Information Systems :

The management information system helps by two major ways in problem
solving: An information source is provided in organization area and helps the
identification of the problem. The benefit of management information system
with this aim is to state the problem possibility for the managers
Current business era is an era where information flow is very vital role than the
flow of goods. As great as any of a businessman and monopolize the flow of
goods, it does not mean anything if he does not have accurate, current, easily
accessible and controllable in the mastering its distribution. Therefore it is one of
the company assets of modern business is highly valuable information system that
has a high response rate and focus on its users from all aspects. Information
systems are built well and correctly, among others, can increase productivity,
reduce the stock of material production, eliminating activities that do not have the
benefit (value added), improve service and customer satisfaction, coordinating
every part in the enterprise and improve the quality of management policies.
While in general the benefits of management information systems can be
categorized as tangible benefits and intangible benefits.
Tangible Benefits : An information system is built and maintained properly will
provide tangible benefits could be seen that in fact achieved its movement
through the income and expenses incurred by the company. Indicators of success
/ benefits that have an impact on revenue enhancement is the increased sales in
existing markets and expansion into new markets. A good information system
can be used not only for the storage of electronic data alone but must be able to
support the analysis required by management. So with the support of good
information system can be obtained then the information is accurate, reliable,
current and easily accessible on the condition of the company's sales. With the
report presented by the rapid and can be accessed at any time that the decisions
taken can be faster and precise on the existing market dynamics. In terms of cost
reduction can be done on reducing the amount of factual analysis of the human
resources involved in the business, reducing operational costs such as supplies
and overhead, the reduction of goods / material in warehouse stock, reduction of
maintenance costs and providing equipment that is not too expensive. Some
examples of reduction of the number of human resources are in the process of
recording financial transactions. If previously in the accounting process should
be managed by five people with the implementation of the good accounting
information system is done by one person enough. This is due to the Accounting
Information System which is integrated so any bookkeeping process can be
processed directly from each of the relevant sections without having to go through
the process of refilling the data. Stacking material supply problems during the
production is often burden of the company assets, with the implementation of
supply chain management module in information systems developed greatly help
solve the problem.
With the support of supply chain management then the stacking stocks of material
production can be reduced to a minimum. Where, the company simply ordered to
suppliers only when the inventory reaches the minimum limit.
Intangible Benefits : Often the intangible benefits of system information
management are the critical point in the course of business of a company's wheel.
Because it is intangible, the following aspects are often overlooked or not
detected.
1. Increased Customer Satisfaction : Good management information system
will speed up the process so that, the time required to serve a customer can be
faster.
2. Improved Quantity and Quality of Information : Information is an
important component of business today. Who controls the information would act
more responsive to changes and trends in the future. Application of good
information system will certainly generate reports compilation of data that is
managed by qualified and comprehensive database. This can be achieved for each
of the reporting process is executed automatically by computer machines.
3. Improved Quality and Quantity management Decisions : It is inevitable
that any decision-making relies heavily on information that supports the policy to
be taken. It can only be realized if information systems can provide information
that is relevant, accurate, current and can be retrieved at any time.
4. Improved Quality and Responsiveness Number of the Competitors'
Condition : Aspects of business intelligence is very important since a long time
with a variety of formats and needs. To reach the point of rapid and appropriate
response on the dynamics of the competition will require information systems
that can collect, analyze and compile the information needed by decision makers
in the company.
5. Improved Operational Efficiency and Flexibility : All business owners
would want these. The more efficient and flexibly an operational then this
indicate the low cost to run it. This can be achieved due to cut the bureaucracy in
the company after the implementation of good information systems.
6. Improved Quality of Internal and External Communications : A good
information system must be supported by electronic data communication network
systems that are reliable as well. With the application of good information
systems, each party both inside and outside the company can exchange
information more effectively and efficiently.
7. Improved Quality of Planning : Planning is an essential process for
businesses. However, any plan that will be made then of course needed the
support of adequate information into practice. If not then the plan may be
disoriented and did not reach its target because of mistake information into its
base.
8. Improved Quality Control and Supervision : With the information system
is built and maintained properly then any activity within the business environment
can be constantly monitored. Monitoring is certainly an impact on improving
control over every procedure and activities occurring within the company.
Limitations of MIS
Even though MIS has many benefits it has its limitations. MIS is sometimes
considered a solution for every bane within an organization. While MIS may
solve some critical problems but it is not a solution to all problems of an
organization. It cannot meet the special demands of each person. Mostly, the
management information system doesn't provide exact information and the
concept of decision support system was created in response to such need. The
limitations of MIS may be stated as, The MIS is as good as its design- MIS if
designed in an improper manner does not serve the management and hence is of
little relevance. The MIS is as good as its users-if the users do not know how to
leverage the information available from MIS then MIS is of little use. The MIS
is no good if the basic data is obsolete and outdated (for example, MIS will only
facilitate garbage with information and in about garbage-out- process)
The Challenges of Management Information Systems :
If all the existing barriers are divided into humanistic, organizational and
environmental factors, the major drawbacks and the reasons of failure and using
MIS in public organizations are as following :
Humanistic Factors :
• The lack of information of the managers and users as they don't know exactly
what they want and what their information needs are.
• The lack of understanding of the needs of the users by designers (the lack of
correct definition of the needs and their analysis)
• The lack of information of the managers and users about the collaboration
method with the designer team
• The lack of participation of the managers and users in system design
• The lack of understanding of the managers of software and information systems.
• The lack of information of most of the analysts and programmers (designers)
with new system work environment.
The lack of acceptance of the system executers and resistance against the change.
• The lack of accuracy in the data collected
Organizational Factors :
• The lack of good conditions for participation and collaboration of the managers,
users and system directors
• The lack of consistency and complexity of the existing manual systems.
• The lack of existing systems and methods analysis before the system design
• The lack of evaluation of the existing power
• Bad condition of educating the specialized forces
• The lack of human resources with management and computer fields and other
required specializations (the problems of absorbing human resources)
• Inadequate education of the users
• Inadequate and incomplete documentation
• Unsuitable implementation of the system
Environmental Factors :
• The lack of suitable consultants for designing the system and software
• The lack of procedures and methodology and stages of creating the system
• The lack of evaluation of environmental aspects in management information
systems
• The lack of suitable use of mass media to develop the culture of using computer
and information systems.
• The lack of holding suitable MA training courses in the universities and the lack
of suitable education of human resources in this regard.
• The lack of ratification of the suitable rules in Islamic council parliament and
government board and the considerable problem in this regard.
• The lack of serious consideration and adequate investment in this regard.

MIS Security & Ethical Issues :

Security of an Information System : Information system security refers to the way
the system is defended against unauthorized access, use, disclosure, disruption,
modification, perusal, inspection, recording or destruction.
There are two major aspects of information system security :
• Security of the information technology used - securing the system from
malicious cyber-attacks that tend to break into the system and to access critical
private information or gain control of the internal systems.
• Security of data - ensuring the integrity of data when critical issues, arise such
as natural disasters, computer/server malfunction, physical theft etc. Generally an
off-site backup of data is kept for such problems. Guaranteeing effective
information security has the following key aspects :
• Preventing the unauthorized individuals or systems from accessing the
information.
• Maintaining and assuring the accuracy and consistency of data over its entire
life-cycle.
• Ensuring that the computing systems, the security controls used to protect it and
the communication channels used to access it, functioning correctly all the time,
thus making information available in all situations.
• Ensuring that the data, transactions, communications or documents are genuine.
• Ensuring the integrity of a transaction by validating that both parties involved
are genuine, by incorporating authentication features such as "digital signatures".
• Ensuring that once a transaction takes place, none of the parties can deny it,
either having received a transaction, or having sent a transaction. This is called
'non-repudiation'.
• Safeguarding data and communications stored and shared in network systems.

Information Systems and Ethics :

Information systems bring about immense social changes, threatening the
existing distributions of power, money, rights, and obligations. It also raises new
kinds of crimes, like cyber-crimes.
Following organizations promote ethical issues :
• The Association of Information Technology Professionals (AITP)
• The Association of Computing Machinery (ACM)
• The Institute of Electrical and Electronics Engineers (IEEE)
• Computer Professionals for Social Responsibility (CPSR)
The ACM Code of Ethics and Professional Conduct :
• Strive to achieve the highest quality, effectiveness, and dignity in both the
process and products of professional work.
Acquire and maintain professional competence.
• Know and respect existing laws pertaining to professional work.
• Accept and provide appropriate professional review.
• Give comprehensive and thorough evaluations of computer systems and their
impacts, including analysis and possible risks.
• Honour contracts, agreements, and assigned responsibilities.
• Improve public understanding of computing and its consequences.
• Access computing and communication resources only when authorized to do
so.
The IEEE Code of Ethics and Professional Conduct
IEEE code of ethics demands that every professional vouch to commit themselves
to the highest ethical and professional conduct and agree :
• To accept responsibility in making decisions consistent with the safety, health
and welfare of the public, and to disclose promptly factors that might endanger
the public or the environment;
• To avoid real or perceived conflicts of interest whenever possible, and to
disclose them to affected parties when they do exist;
• To be honest and realistic in stating claims or estimates based on available data;
• To reject bribery in all its forms;
• To improve the understanding of technology, it's appropriate application, and
potential consequences;
• To maintain and improve our technical competence and to undertake
technological tasks for others only if qualified by training or experience, or after
full disclosure of pertinent limitations;
• To seek, accept, and offer honest criticism of technical work, to acknowledge
and correct errors, and to credit properly the contributions of others;
• To treat fairly all persons regardless of such factors as race, religion, gender,
disability, age, or national origin;
• To avoid injuring others, their property, reputation, or employment by false or
malicious action;
• To assist colleagues and co-workers in their professional development and to
support them in following this code of ethics.

MIS and Information Resource Management

➢ Information Resource Management (IRM) is a holistic and strategic
approach to manage information resources as valuable assets that
contribute to organizational success, innovation, and competitive
advantage.
➢ It involves the systematic planning, acquisition, development, utilization,
maintenance, and disposal of information assets, including data,
information, knowledge, technology, and human resources.
➢ The primary aim of IRM is to maximize the value and utility of
information resources while minimizing risks and costs associated with
their management.
➢ By adopting IRM principles and practices, organizations can optimize the
use of their information resources, enhance decision-making
capabilities, and adapt to changing business environments effectively.
Basis MIS IRM
Aim It primarily focuses on the It aims to strategically
use of information management of all types of
systems and technologies information resources (e.g., data,
to facilitate managerial information, knowledge,
decision-making and technology, and human resources)
operational processes within an organization to maximize
within an organization. value and minimize risk.
Scope It deals with the design, It involves the planning,
development, acquisition, development,
implementation, and utilization, maintenance, and
maintenance of disposal of information assets in
information systems, alignment with organizational
databases, and software goals, priorities, and policies.
applications tailored to
the needs of managers and
decision-makers.
Function MIS functions involve IRM include strategic planning,
collecting, processing, information governance, data
storing, and management, technology
disseminating assessment, knowledge
 information to support management, and workforce
managerial decision- development initiatives.
making at various levels
of an organization.
Usage It serves the needs of IRM serves the broader interests of
managers and decision- the organization as a whole by
makers by providing ensuring that information resources
them with timely, are managed effectively to achieve
accurate, and relevant business objectives, enhance
information to support organizational performance, and
planning, organizing, create value for stakeholders.
controlling, and decision-
making in their areas of
responsibility.
Role MIS is concerned with the IRM takes a long-term and
immediate and strategic perspective, focusing on
operational aspects of the strategic planning, governance,
managing information and optimization of information
systems and technologies resources to align with the
to support day-to-day organization's long-term goals and
decision-making and objectives.
operational processes
within the organization.

MIS professional
Also known as an MIS analyst, MIS manager, or MIS specialist, is an individual
who specializes in the planning, development, implementation, and management
of information systems and technologies to support organizational objectives and
decision-making processes.
Eligibility
1. Educational Background: A bachelor's degree in MIS, CS, IT. Some
positions may require a master's degree or professional certifications.
2. Technical Skills: Proficiency in programming languages, database
management systems, networking technologies, and other IT tools
3. Analytical Skills: Problem-solving skills to analyze complex business
problems, evaluate technology solutions, and design effective IS.
4. Communication Skills: Excellent written and verbal communication
 5. Project Management Skills: Knowledge of project management
principles and methodologies to manage IT projects
6. Business Awareness: Understanding of business processes, industry
trends, and organizational dynamics to align IT solutions with business
needs and priorities.
7. Certifications: Relevant certifications such as Certified Information
Systems Auditor (CISA), Certified Information Systems Security
Professional (CISSP), Project Management Professional (PMP) etc.
Responsibilities
1. System Analysis and Design
2. Software Development and Implementation
3. Database Management.
4. System Integration.
5. User Support and Training.
6. Security and Compliance.
7. Performance Monitoring and Optimization.
8. Strategic Planning.
9. Project Management.

Decision Support Systems (DSS)

Components of DSS
A DSS is composed of three main components (see Figure), namely DSS
database, DSS software system and user interface

1. DSS Database: It contains data from various sources, including internal data
from the organization, the data generated by different applications, and the
external data mined from the World Wide Web, etc. The DSS database can be a
small database or a standalone system or a huge data warehouse supporting the
information requirements of an organization. To avoid the interference of DSS
with the working of operational systems, the DSS database usually contains a
copy of the production database.
2. DSS Software System: It consists of various mathematical and analytical
models that are used to analyse the complex data, thereby producing the required
information. A model predicts the output on the basis of different inputs or
different conditions, or finds out the combination of conditions and input that is
required to produce the desired output. A DSS may comprise different models
where each model performs a specific function. The selection of models that must
be included in a DSS mainly depends on user requirements and the purposes of
the DSS. Note that the DSS software contains the predefined models (or routines)
using which new models can be built to support specific types of decisions. Some
of the commonly used mathematical and statistical models are as follows:
• Statistical Models: They contain a wide range of statistical functions, such
as mean, median, mode, deviations, etc. These models are used to establish
relationships between the occurrences of an event and various factors
related to that event. It can, for example, relate sale of product to
differences in area, income, season, or other factors. In addition to
statistical functions, they contain software that can analyse series of data
to project future outcomes.
• Sensitivity Analysis Models: These are used to provide answers to what-
if situations occurring frequently in an organization. During the analysis,
the value of only one variable is changed repeatedly and the resulting
changes on other variables are observed. The sale of a product, for
example, is affected by different factors such as price, expenses on
advertisements, number of sales staff, productions, etc. Using a sensitivity
model, price of the product can be changed (increased or decreased)
repeatedly to ascertain the sensitivity of different factors and their effect
on sales volume. Excel spreadsheets and Lotus 1-2-3 are often used for
making such analysis.
• Optimization Analysis Models: They are used to find the optimum value
for a target variable under given circumstances. They are widely used for
making decisions related to optimum utilization of resources in an
organization. During optimization analysis, the values for one or more
variables are changed repeatedly keeping in mind the specified constraints,
until the best values for the target variables are found. They can, for
example, determine the highest level of production that can be achieved by
varying job assignments to workers, keeping in mind that some workers
are skilled and their job assignment cannot be changed. Linear
 Programming techniques and Solver tool in Microsoft Excel are mostly
used for making such analysis.
• Forecasting Models: They use various forecasting tools and techniques,
including the regression models, time series analysis, and market research
methods, etc., to make statements about the future or to predict something
in advance. They provide They provide information that helps in analysing
the business conditions and making future plans. Note that these systems
are widely used for forecasting sales.
• Backward Sensitivity Analysis Models: Also known as goal seeking
analysis, the technique followed in these models is just opposite to the
technique applied in sensitivity analysis models. In place of changing the
value of a variable repeatedly to see how it affects other variables, goal
seeking analysis sets a target value (a goal) for a variable and then
repeatedly changes other variables until the target value is achieved. To
increase the production level by 40 per cent using the backward sensitivity
analysis, for example, first, the target value for the production level can be
set and then the required changes to be made in other factors, such as the
amount of raw material, machinery and tools, number of production staff,
etc., to achieve the target production level can be ascertained.

3. DSS User Interface: It is an interactive graphical interface which makes the

interaction easier between the DSS and its users. It displays the results (output)
of the analysis in various forms, such as text, table, charts, or graphics. The user
can select the appropriate option to view the output according to his requirement.
A manager, for example, would like to view comparative sales data in the tabular
form, whereas an architect creating a design plan would be more interested in
viewing the result of analysis in a information that helps in analysing the business
conditions and making future plans. Note that these systems are widely used for
forecasting sales. o Backward Sensitivity Analysis Models: Also known as goal
seeking analysis, the technique followed in these models is just opposite to the
technique applied in sensitivity analysis models. In place of changing the value
of a variable repeatedly to see how it affects other variables, goal seeking analysis
sets a target value (a goal) for a variable and then repeatedly changes other
variables until the target value is achieved. To increase the production level by
40 per cent using the backward sensitivity analysis, for example, first, the target
value for the production level can be set and then the required changes to be made
in other factors, such as the amount of raw material, machinery and tools, number
of production staff, etc., to achieve the target production level can be ascertained.
DSS User Interface: It is an interactive graphical interface which makes the
interaction easier between the DSS and its users. It displays the results (output)
of the analysis in various forms, such as text, table, charts, or graphics. The user
can select the appropriate option to view the output according to his requirement.
A manager, for example, would like to view comparative sales data in the tabular
form, whereas an architect creating a design plan would be more interested in
viewing the result of analysis in a graphical format. The present day DSS built
using the Web-based interfaces provides its users some special capabilities like
better interactivity, facility for customization and personalization, and more ease
of use.

FUNCTIONS OF A DSS-
There can be six function of a DSS facilitating managerial decision making. They
are:
1. Model building
2. What-if analysis
3. Goal seeking
4. Risk analysis
5. Graphical analysis
6. Sensitivity analysis

1. Model building  It allows decision makers to identify the most

appropriate model for solving the problem at hand. It takes in to account
input variables, interrelationships among the variables, problem
 assumptions and constraints. For example, a marketing manager of
Videocon is charged with the responsibility of developing a sales
forecasting model for colour TV sets. A model builder uses a structured
framework to identify variables like demand, cost and profit, analyse the
relationships among these variables identify the assumptions, if any (e.g.,
assume the prices of raw materials will increase by 5% over the forecasting
period), and identify the constraints, viz., the production capacity of the
plant. All this information’s are then integrated by a system into a decision
making model, which can be updated and modified whenever required.

2. ‘What-if’ analysis -It is the process of assessing the impact of changes to

model variables, the values of the variables, or the interrelationships among
variables.  This helps managers to be proactive, rather than reactive, in
their decision making.  This analysis is critical for semi-structured and
unstructured problems because the data necessary to make such decisions
are often either not available or incomplete. Hence, managers normally use
their intuition and judgement in predicting the long-term implication of
their decisions.  Managers can prepare themselves to face a dynamic
business environment by developing a group of scenarios (best-case
scenario, worst-case scenario and realistic scenario). Spreadsheet
packages, such as Excel and Lotus 1-2-3, have’ what-if’ applications.

3. Goal seeking - It is the process of determining the input values required to

achieve a certain goal. For example, house buyers determine the monthly
payment they can afford (say, Rs.700) and calculate the number of such
payment required to pay the desired house.

4. Risk analysis - It is a function of DSS that allows managers to assess the

risks associated with various alternatives.  Decision can be classified as
low-risk and high-risk environments

5. Graphical analysis - It helps managers to quickly digest large volumes of

data and visualise the impact of various courses of action.  First, the Lotus
system enabled uses to easily display and print information in a graphic
form. S L Jarvenpaa G W Dickson (1988) studied the relative advantages
and disadvantages of tabular and graphic output.

6. Sensitivity analysis- It is a technique used to determine how different

values of an independent factor affect a specific dependent factors under a
 given set of assumptions. This type of analysis is used to predict the
outcome of a decision if a situation turns out to be different compared to
the key predictions.

DSS Applications and the Digital Firm- Some of the main application areas of
the decision support systems are as follows:
Supply Chain Management (SCM): The various decisions in a supply chain
involve finding the best alternatives that are most efficient and costeffective for
moving the goods through the supply chain. An SCM system helps managers with
various supply chain decisions, such as assessing the optional inventory stocking
levels, creating the production schedules and making transportation plans by
using data about stock, supplier performance, production schedules, and costs.
The primary objective is to reduce overall costs while increasing the speed and
accuracy of filling customer orders. The decisions in SCM are supported by both
model-based and data-based DSS.
Customer Relationship Management (CRM): DSS supporting customer
relationship management focuses on meeting the customer centric requirements.
They bring together customer information from different systems into a huge data
warehouse and then use some analytical tools to divide the information into small
parts for one-to-one marketing and predictive analysis. Predictive analysis uses
the data mining technique, past data, and assumption about future conditions to
forecast results of events, such as the probability a customer will buy a particular
product or respond to an offer. It tracks the different methods that a company uses
to interact with its customers and then analyses these interactions to optimize
customer satisfaction and customer retention. It uses various CRM analysis tools
to identify a profitable customer, to reduce customer attrition rate, and to divide
customers into smaller groups that could benefit from more targeted marketing.
Price Optimization: DSS meant for optimizing the price mainly helps managers
in predicting the customer behaviour to changes in price. A manager, for example,
can determine the price that will boost the sale of a product while yielding the
maximum profit. In addition, a manager can also use DSS along with the sales
history to analyse and decide the right time and the right price for selling the
product in order to have maximum profit. The DSS used for pricing decisions are
mostly model driven and deploy mathematical models for analysing the data.
Asset Utilization: DSS facilitates better management of costs and revenues by
providing information, such as overtime costs and utilization rates. Moreover, it
also helps managers in increasing the profit margins by making best utilization of
the available assets. For this, data driven DSS is used for getting the required
information.
Geographic Information System (GIS): It is a special category of DSS that uses
data visualization technology (use of charts, graphs, tables, maps, digital images,
three-dimensional images and animations to provide information) to help
managers in analysing and displaying data more efficiently for planning and
decision-making. Moreover, by using data visualization technology, a user can
view patterns and relationships in large amount of data that would otherwise be
difficult to recognize if the data would be presented as text. These systems support
decisions that require knowledge about the geographic distribution of various
resources. Manufacturing units, for example, can identify the best locations for
setting up new plants, banks can identify the best locations for installing new
branches or Automatic Teller Machine (ATM) terminals and governments can
calculate emergency response times to a natural disaster.

Types of Decision Support Systems (DSS)

1. Model-driven DSS- A model-driven DSS was based on simple
quantitative models. It used limited data and emphasized manipulation of
financial models. A model-drive DSS was used in production planning,
scheduling and management. It provided the most elementary functionality
to manufacturing concerns.
2. Data-driven DSS- Data-driven DSS emphasized the access and
manipulation of data tailored to specific tasks using general tools. While it
also provided elementary functionality to businesses, it relied heavily on
time-series data. It was able to support decision making in a range of
situations.
3. Communication-driven DSS- As the name suggests, communication-
driven DSS uses communication and network technologies to facilitate
decision making. The major difference between this and the previous
classes of DSS was that it supported collaboration and communication. It
made use of a variety of tools including computer-based bulletin boards,
audio and video conferencing.
4. Document-driven DSS- A document-driven DSS uses large document
databases that stores documents, images, sounds, videos and hypertext
docs. It has a primary search engine tool associated for searching the data
when required. The information stored can be facts and figures, historical
 data, minutes of meetings, catalogs, business correspondences, product
specifications, etc.
5. Knowledge-driven DSS- Knowledge-based DSS are human-computer
systems that come with a problem-solving expertise. These combine
artificial intelligence with human cognitive capacities and can suggest
actions to users. The notable point is that these systems have expertise in a
particular domain.
6. Web-based DSS-Web-based DSS is considered most sophisticated
decision support system that extends its capabilities by making use of
worldwide web and internet. The evolution continues with advancement in
internet technology.
Based on Focus Area (Hasan et al., 2017)
Data focus
File Drawer System:
Data Analysis Systems:
Data Base Oriented
Information Analysis System:
Data Driven
Compound orientation

Model focus
Accounting Model:
Representation Model
Optimization Model
Spreadsheet oriented DSS
Solver Model:
Model driven DSS

Knowledge focus
Suggestion System
Rule Oriented DSS
Knowledge Oriented DSS

Classification of DSS
➢ File Drawer System: This is a system which provides information useful
for making a specific decision. It works like a file drawer where different
types of information are stored under different names or categories.
➢ Data Analysis Systems: These decision systems are based on comparative
analysis and makes use of a formula. The cash flow analysis, inventory
analysis and personnel inventor systems are examples of the analysis
systems.
➢ Information Analysis : In this system the data is analysed and the
information reports are generated. The decision makers use these reports
for assessment of the situation for decision-making. The sales analysis,
accounts receivables system, market research analysis are examples of
such systems
 ➢ Accounting and Financial Support System: These systems are not
necessarily required for decision making but they are desirable to keep
track of the major financial aspects of the business.
➢ Optimization Model: This DSS is based on stimulated models, majorly
providing guidelines for operations management. The focus is on
providing optimal solutions to any task or problem for example- job
scheduling, product mix and material mix decisions.
➢ Representation or Solver Model: This type of system performs or
represents decision making in a particular domain or for a specific
problem. It calculates and compares the outcomes of different decision
paths. The decision maker can conduct a ‘what if’ analysis and make an
informed decision basis on the outcomes generated.
➢ Solver Model: It is performing certain computations for solving a
particular type of problem. The solver could be economic order quantity
procedure for calculating an optimal ordering quantity.
➢ Suggestion System: There are used for operational purposes. They give
suggestion to the management for best decision making for a particular
situation by assisting in collecting and structuring data.
➢ Database Oriented : Database plays a major role here; it contains
organized and highly structured data.
➢ Spreadsheet Oriented : It contains information in spread sheets that
allows create, view, modify procedural knowledge and also instructs the
system to execute self- contained instructions. The most popular tool is
Excel and Lotus 1- 2-3.
➢ Rules Oriented : Procedures are adopted in rules oriented DSS. Export
system is the example.
➢ Compound DSS: It is built by using two or more of the five structures
explained above.

MIS AND DECISION SUPPORT SYSTEM

A Decision Support System (DSS) is an interactive computer-based system that
serves decision-making needs of managers. It provides managers with the
information that enables them to make both semistructured and unstructured
decisions. DSS employs various analytical models to perform low level analysis
of data and produce information. A manager can apply his knowledge to the
system generated information and get a more clear view of the problem, making
it easy for him to find an appropriate solution to the problem. The use of DSS
usually increases the manager’s ability to make correct and balanced decisions.
A DSS system possesses an interactive interface which makes it easier to use and
provides real time responses to user queries. The use of various DSS tools helps
in each stage of the decision-making process that includes viewing a complex
problem, designing a model to analyse the problem, developing alternatives to
get a solution, and choosing a solution from the available alternatives. While the
use of DSS often increases with the level of management, they are used at all
levels and most often the users are also the non-managerial staff.
MIS and DSS
MIS fulfils the information needs of an organization to a large extent, but they
are not sufficient for meeting all the needs of information and decision-making.
In some situations, where the nature of decision is complex, the decision-makers
would require additional information, analysis and an appropriate DSS model to
support decision-making. Some of the major differences in the information and
decision support capabilities of MIS and DSS are as follows:
MIS deals with mostly structured problems, whereas DSS provides information
that helps in analysing and finding solutions to semistructured and unstructured
problems.
MIS provides information on business performance that helps managers to
control and administer the day-to-day business activities. On the other hand, DSS
provides information and various decision support techniques that help managers
to analyse specific problems or opportunities.
MIS produces reports based on routine flow of data and the formats of these
reports are predefined. In addition to regular reports, it may produce exception
reports which help managers to analyse and control the cause and effect of the
exception and take appropriate action. On the other hand, DSS is interactive and
provides quick responses to user queries. To obtain a sales analysis report, for
example, containing figures related to performance of sales based on the sales
region, salesperson, etc., a sales manager need MIS. However, to know the effects
of changes in different factors like expenses on promotion of a product, and
compensation to salesperson on the performance of sales, sales managers can
interactively use DSS.
MIS produces information by extracting and manipulating the business data,
whereas DSS produces information by performing analytical modelling of the
business data
Database Management Systems (DBMS)
Database management systems (DBMS) A database management system
(DBMS) is a collection of programs that enables you to store, modify, and extract
information from a database. There are many different types of DBMSs, ranging
from small systems that run on personal computers to huge systems that run on
mainframes.
The DBMS acts as an interface between the application program and the data in
the database. The following are examples of database applications:
• Computerized library systems
• Automated teller machines
• Flight reservation systems
• Computerized parts inventory systems

Components of DBMS- DBMS have several components, each performing very

significant tasks in the database management system environment. Below is a list
of components within the database and its environment. There are six major
components of database system:

I. Data: Data is defined as collection of fact in raw. It is not in directly useful

and some processing to become useful.

II. Hardware: Hardware is a term used for physical components of the

computer system (such as CPU, VDU etc.). Depending upon size of the
database, suitable hardware is selected.

III. Software: This is the set of programs used to control and manage the
overall database. This includes the DBMS software itself, the Operating
System, the network software being used to share the data among users,
and the application programs used to access data in the DBMS.
IV. Procedures: Procedures refer to general instructions to use a database
management system. This includes procedures to setup and install a
DBMS, to login and logout of DBMS software, to manage databases, to
take backups, generating reports etc.

V. Database Access Language: Database Access Language is a simple

language designed to write commands to access, insert, update and delete
data stored in any database.

VI. User- The people who control and manage the databases and perform
different types of operations on the database in the DBMS.

Advantages of a DBMS
• Data independence: Application programs should be as independent as
possible from details of data representation and storage. The DBMS can
provide an abstract view of the data to insulate application code from such
details.
• Efficient data access: A DBMS utilizes a variety of sophisticated
techniques to store and retrieve data efficiently. This feature is especially
important if the data is stored on external storage devices.
• Data integrity and security: If data is always accessed through the
DBMS, the DBMS can enforce integrity constraints on the data. For
example, before inserting salary information for an employee, the DBMS
can check that the department budget is not exceeded. Also, the DBMS can
 enforce access controls that govern what data is visible to different classes
of users.
• Data administration: When several users share the data, centralizing the
administration of data can offer significant improvements. Experienced
professionals who understand the nature of the data being managed, and
how different groups of users use it, can be responsible for organizing the
data representation to minimize redundancy and for fine-tuning the storage
of the data to make retrieval efficient.
• Concurrent access and crash recovery: A DBMS schedules concurrent
accesses to the data in such a manner that users can think of the data as
being accessed by only one user at a time. Further, the DBMS protects
users from the effects of system failures.
• Reduced application development time: Clearly, the DBMS supports
many important functions that are common to many applications accessing
data stored in the DBMS. This, in conjunction with the high-level interface
to the data, facilitates quick development of applications. Such applications
are also likely to be more robust than applications developed from scratch
because many important tasks are handled by the DBMS instead of being
implemented by the application.
• Controlling Data Redundancy: Data is recorded in only one place in the
database and it is not duplicated.
• Data consistency: Data items appears only once, and the updated value is
immediately available to all users

Disadvantage
• DBMS required high initial cost
• DBMS is extremely complex software
• Technical staff requirement
• Database failure

Database Models -A database model is the method of organising data and

represents the logical relationships among data elements in the database. Popular
database models are hierarchical models, network models and relational models.

Hierarchical Model
• The hierarchical data model organizes data in a tree structure. There is a
hierarchy of parent and child data segments.
• This structure implies that a record can have repeating information,
generally in the child data segments.
 • Data in a series of records, which have a set of field values attached to it.
• It collects all the instances of a specific record together as a record type.
These record types are the equivalent of tables in the relational model, and
with the individual records being the equivalent of rows.
• To create links between these record types, the hierarchical model uses
Parent Child Relationships.
• These are a 1: N mapping between record types. This is done by using trees.
For example, an organization might store information about an employee,
such as name, employee number, department, salary.

• The organization might also store information about an employee's

children, such as name and date of birth. The employee and children data
forms a hierarchy, where the employee data represents the parent segment
and the children data represents the child segment.
• If an employee has three children, then there would be three child segments
associated with one employee segment. In a hierarchical database the
parent-child relationship is one to many. This restricts a child segment to
having only one parent segment.

Advantages: ➢ Hierarchical model is simple to construct and operate on. ➢

Corresponds to a number of natural hierarchical organized domains – e.g.,
assemblies in manufacturing, personal organization in companies. ➢ Language
is simple; uses constructs like GET, GET UNIQUE, GET NEXT, GET NEXT
WITHIN PARENT etc., Disadvantages: ➢ Navigational and procedural nature
of processing. ➢ Database is visualized as a linear arrangement of records. ➢
Little scope for “query optimization”. ➢ One-to-many relationships.
Network Model
• The popularity of the network data model coincided with the popularity of
the hierarchical data model. Some data were more naturally modelled with
more than one parent per child.
• So, the network model permitted the modelling of many-to-many
relationships in data.
• In 1971, the Conference on Data Systems Languages (CODASYL)
formally defined the network model.
• The basic data modelling construct in the network model is the set
construct.
• A set consists of an owner record type, a set name, and a member record
type.
• A member record type can have that role in more than one set; hence the
multiparent concept is supported.

• An owner record type can also be a member or owner in another set.

• The data model is a simple network, and link and intersection record types
(called junction records by IDMS) may exist, as well as sets between them.
• Thus, the complete network of relationships is represented by several pair
wise sets; in each set some (one) record type is owner (at the tail of the
network arrow) and one or more record types are members (at the head of
the relationship arrow).
• Usually, a set defines a 1: M relationship, although 1:1 is permitted.
Advantages: ➢ Network model is able to model complex relationships and
represents semantics of add/delete on the relationships. ➢ Can handle most
situations for modeling using record types and relationship types. ➢ Language is
navigational; uses constructs like FIND, FIND member, FIND owner, FIND
NEXT within set, GET etc. Programmers can do optimal navigation through the
database. Disadvantages: ➢ Navigational and procedural nature of processing.
➢ Database contains a complex array of pointers that are expensive and difficult
to update when inserting and deleting. ➢ Little scope for automated “query
optimization”

Relational Model
• A database based on the relational model developed by E.F. Codd. A
relational database allows the definition of data structures, storage and
retrieval operations and integrity constraints.
• In such a database the data and relations between them are organised in
tables.
• A table is a collection of records and each record in a table contains the
same fields.
• Properties of Relational Tables:
i. Values Are Atomic.
ii. Each Row is Unique.
iii. Column Values Are of the Same Kind.
iv. The Sequence of Columns is Insignificant.
v. The Sequence of Rows is Insignificant
vi. Each Column Has a Unique Name
• Certain fields may be designated as keys, which mean that searches for
specific values of that field will use indexing to speed them up.
• Where fields in two different tables take values from the same set, a join
operation can be performed to select related records in the two tables by
matching values in those fields. But not always, the fields will have the
same name in both tables.
 • For example, an "orders" table might contain (customer-ID, product-code)
pairs and a "products" table might contain (product-code, price) pairs so to
calculate a given customer's bill you would sum the prices of all products
ordered by that customer by joining on the product-code fields of the two
tables. This can be extended to joining multiple tables on multiple fields.
Because these relationships are only specified at retrieval time, relational
databases are classed as dynamic database management system. The
RELATIONAL database model is based on the Relational Algebra

Types of Database Management Systems

There are several types of databases. Here is a list of seven common types of
Databases.
1. Hierarchical databases
2. Network databases
3. Relational databases
4. Object-oriented databases
5. Graph databases
6. ER model databases
7. Document databases
8. NoSQL databases

Hierarchical Databases
Data is stored in a parent-children relationship node in a hierarchical database
management system (hierarchical DBMS) Model. In a hierarchical database,
besides actual data, records also contain information about their groups of
parent/child relationships

In a hierarchical database model, data is organized into a tree-like structure. The

data is stored in the form of a collection of fields where each field contains only
one value. The records are linked to each other via links into a parent-children
relationship. In a hierarchical database model, each child record has only one
parent. A parent can have multiple children. To retrieve a field's data, we need to
traverse through each tree until the record is found. Hierarchical databases are
used to build high-performance and availability applications, usually in the
banking and telecommunications industries. IBM developed the hierarchical
database system structure in the early 1960s. At the same time, the hierarchical
structure is simple but inflexible due to the parent-child one-to-many relationship.

The IBM Information Management System (IMS) and Windows Registry are
famous examples of hierarchical databases.

Advantages of Hierarchical Database

A hierarchical database can be accessed and updated rapidly. As shown in the

figure above, its model structure is like a tree, and the relationships between
records are defined in advance. This feature is a double-edged sword.

Disadvantages of a Hierarchical Database

This type of database structure means that each child in the tree may have only
one parent. Relationships or linkages between children are not permitted, even if
they make sense from a logical standpoint. Adding a new field or record requires
that the entire database be redefined. Hierarchical databases are like this in their
design.

Network Databases
Network database management systems (Network DBMSs) use a network
structure to create a relationship between entities. Network databases are mainly
used on large digital computers. Network databases are hierarchical, but unlike
hierarchical databases, where one node can have a single parent only, a network
node can have a relationship with multiple entities. A network database looks
more like a cobweb or interconnected network of records. In network databases,
children are called members, and parents are called occupiers. The difference
between each child or member is that it can have more than one parent.

The approval of the network

data model is similar to a hierarchical data model. Data in a network database is
organized in many-to-many relationships.
Charles Bachman invented the network database structure. Some popular
network databases are the Integrated Data Store (IDS), IDMS (Integrated
Database Management System), Raima Database Manager, TurboIMAGE, and
Univac DMS-1100.
Relational Databases

In a relational database management system (RDBMS), the relationship between

data is relational and stored in tabular form of columns and rows. Each table
column represents an attribute, and each Row in a table represents a record. Each
field in a table represents a data value.

Structured Query Language (SQL) is used to query RDBMS, including inserting,

updating, deleting, and searching records. Relational databases work on each
table with a key field that uniquely indicates each Row. These key fields can be
used to connect one table of data to another.
Relational databases are the most popular and widely used databases. Some
popular DDBMS are Oracle, SQL Server, MySQL, SQLite, and IBM DB2.
Advantages of Relational databases
1. Relational databases can be used with little or no training.
2. Database entries can be modified without specifying the entire body.
Properties of Relational Tables
In a relational database, we have to follow the properties given below.

• Values are Atomic.

• Each Row is alone.
• Column Values are the same thing.
• Columns are undistinguished.
• The sequence of Rows is Insignificant.
• Each Column has a common name.

Object-Oriented Model Database

In this Model, we have to discuss the functionality of object-oriented
Programming. It takes more than the storage of programming language objects. It
provides full-featured database programming capabilities while containing native
language compatibility. It adds database functionality to object programming
languages.

The Object-Oriented Programming approach is analogical to the application and

database development in a constant data model and language environment.
Applications require less code, use more natural data modeling, and code bases
are easier to maintain. Object developers can write complete database
applications with a decent amount of additional effort.
Object-oriented database derivation is the integrity of object-oriented
programming language and consistent systems. The power of object-oriented
databases comes from the cyclical treatment of both consistent data, as found in
databases, and transient data, as found in executing programs.

Object-oriented databases use small, recyclable separated from software called

objects. The objects themselves are stored in the object-oriented database.
Each object contains two elements.
1. A piece of data (e.g., sound, video, text, or graphics).
2. Instructions, or software programs called methods, for what to do with
the data.

Object-oriented database management systems (OODBMs) were created in the

early 1980s. Some OODBMs were designed to work with OOP languages such
as Delphi, Ruby, C++, Java, and Python. Some popular OODBMs are
TORNADO, Gemstone, ObjectStore, GBase, VBase, InterSystems Cache,
Versant Object Database, ODABA, ZODB, and Poet. JADE, and Informix.

Disadvantages of Object-oriented databases

1. Object-oriented databases are more expensive to develop.
2. Most organizations are unwilling to abandon and convert from those
databases.
Advantages of Object-oriented databases

The benefits of object-oriented databases are compelling. The ability to mix and
match reusable objects provides incredible multimedia capability.
Graph Databases
Graph Databases are NoSQL databases and use a graph structure for semantic
queries. The data is stored as nodes, edges, and properties. In a graph database, a
Node represents an entity or instance, such as a customer, person, or car. A node
is equivalent to a record in a relational database system. An Edge in a graph
database represents a relationship that connects nodes. Properties are additional
information added to the nodes.

Neo4j, Azure Cosmos DB, SAP HANA, Sparks, Oracle Spatial and Graph,
OrientDB, ArrangoDB, and MarkLogic are famous graph databases. The graph
database structure is also supported by some RDBMS, including Oracle and SQL
Server 2017 and later versions.
ER Model Databases
An ER Model typically implemented as a database. In a simple relational database
implementation, each table Row represents one instance of an entity type, and
each field in a table represents an attribute type. In a relational database, a
relationship between entities is implemented by storing the primary key of one
entity as a pointer or "foreign key" in the table of another entity.

Peter Chen developed the entity-relationship Model in 1976.

Document Databases

Document databases (Document DB) are also NoSQL databases that store data
as documents. Each document represents the data, its relationship with other data
elements, and its attributes of data. Document database store data in a key-value
form. Document DB has become popular recently due to its document storage
and NoSQL properties. NoSQL data storage provides a faster mechanism to store
and search documents.

Popular NoSQL databases are Hadoop/HBase, Cassandra, Hypertable, MapR,

Hortonworks, Cloudera, Amazon SimpleDB, Apache Flink, IBM Informix,
Elastic, MongoDB, and Azure DocumentDB.

NoSQL Databases

NoSQL databases do not use SQL as their primary data access language. A graph
database, network database, object database, and document databases are
common NoSQL databases. Here is an article on Introduction to NoSQL
Databases. This article answers the question, what is a NoSQL database?

NoSQL database does not have predefined schemas, which makes NoSQL
databases a perfect candidate for rapidly changing development environments.
NoSQL allows developers to make changes on the fly without affecting
applications.

NoSQL databases can be categorized into the following five major categories:
Column, Document, Graph, Key-value, and Object.

Here is a list of 10 popular NoSQL databases.

1. Cosmos DB
2. ArangoDB
3. Couchbase Server
4. CouchDB
5. Amazon DocumentDB
6. MongoDB, CouchBase
7. Elasticsearch
8. Informix
9. SAP HANA
10.Neo4j

Common applications of DBMS

1. Railway reservation system
2. Library management system
3. Banking
4. Universities and colleges
5. Credit card transactions
6. Social media sites
7. Finance
8. Military
9. Online shopping
10.Manufacturing
11.Airline reservation system

Developing MIS Systems

• There are six different types of information system development

methodology:-
1. System Development Life Cycle (SDLC).
2. Prototyping.
 3. Rapid action development.
4. End-user development.
5. Software packages.
6. Outsourcing

System Development Life Cycle (SDLC)

SDLC- It consists of 5 phases:-
1. Problem definition.
2. System analysis
3. System design & programming
4. System testing & implementation
5. System maintenance

1. Problem definition- It is the process of defining the current problem,

determining why a new system is needed and identifying the objectives of the
new system.
i. The first question identifies the existing system and elaborates on how
these problems can be eliminated by developing a new system.
ii. The second question identifies the primary goals of the system and
establish system boundary is which are necessary to prevent the project
from becoming a too large & complex to be successfully completed.
2. System Analysis - In this phase the detail problem analysis is undertaken to
better understand the nature, scope, requirement, and feasibility of the new
system. Main activities in this phases are:-
i. Understanding the problem -Fully understand the existing problems &
the strength & weakness of the system. It include identifying the overall
implications and benefits of the new system for the entire organisation.
ii. Feasibility study- Technical ,Operational, & Economic

Technical Feasibility- Technical feasibility assesses the current resources (such

as hardware and software) and technology, which are required to accomplish the
user requirements in the software within the allocated time and budget. For this,
the software development team ascertains whether the current resources and
technology can be upgraded or added in the software to accomplish specified user
requirements. The following are the purposes of technical feasibility:
To analyse the technical skills and capabilities of the system development team.
To determine whether the existing hardware can be used for the proposed system.
 To ascertain that the technology chosen for system development has large
number of users so that they can be consulted when problems arise or
improvements are required.
Operational Feasibility -Operational feasibility assesses whether the new
system performs all the intended operations. The following are the purposes of
operational feasibility:
To determine whether the problems anticipated are of high priority or not.
To determine whether the solution suggested by the system development team is
acceptable or not.
To analyse whether users will adapt to a new software or not.
To determine whether the organization is satisfied by the alternative solutions
proposed by the system development team or not.
Economic Feasibility Economic feasibility determines whether the required
system is capable of generating financial gains for an organization or not. It
involves the cost incurred on the software development team, estimated cost of
hardware and software, cost of performing feasibility study, and so on. For this,
it is essential to consider the expenses made on purchases (such as hardware
purchase) and the activities required to carry out software development. In
addition, it is necessary to consider the benefits that can be achieved by
developing the software. A system is said to be economically feasible if it focuses
on the following issues:
Cost incurred on system development to produces long-term gains for an
organization.
Cost required to conduct full system investigation.
Cost of hardware, software, development team and training.
Once the feasibility study is performed, a written proposal called the feasibility
reportis made. It includes the recommendation that states whether the system
development should continue or not. This report may also include information
about changes in the software scope, budget, schedule and suggestions of any
requirements in the system.

iii. System requirements - In this phase system specification are identified by

asking ,Who needs the system and for what purposes? , What are the needs
of the system?, How or in what type of format should the output be
 delivered? , Who are the users? , What are the maintenance requirements
of the system?

3.System Design The objective of system design is to devise a solution for the
problem identified during system analysis. While the system analysis phase deals
entirely with the problem domain, system design is the first phase of transforming
the problem into a solution. It consists of the following three activities.
Interface Design: It focuses on designing the interface to provide
communication between the end users and the system.
Data Design: It focuses on identifying the data used by the proposed system,
defining specific data types and storage mechanisms, and ensuring data integrity
by using business rules and other run time enforcement mechanisms.
Process Design: It focuses on designing the processing and control procedures,
i.e., the procedures to process the data and produce the output.

4. System Testing & Implementation -It involves thoroughly probing the

system to ensure that its performance matches system requirements and meets the
expectations of end-users.
A. Testing -The testing is performed to ensure the quality of the developed
system. In this phase, the errors that may prevent the system from producing
output according to user’s requirement are identified and removed. Before the
actual testing begins, a document known as test plan that specifies the objective,
scope, method and purpose of the testing is made. This document acts as a
guideline to the tester while performing various testing activities. The developed
system would be tested using the four levels of testing, namely unit testing,
integration testing, system testing and acceptance testing.
Unit Testing: It tests the individual units (that is, the modules or the programs)
of the system for their correctness. The errors found in the units are removed and
the units are validated for further use.
Integration Testing: At this level, all the units validated during unit testing are
combined together to form a subsystem. The subsystem is then tested to ensure
that all the modules in the system continue to work in accordance with user
requirement even after integration.
System Testing: It involves testing the system as a whole. The subsystem (i.e.,
the software) is integrated with other elements, such as hardware, people and
database to form a computer based information system. This system is then
checked for errors using the system testing activities, including recovery testing,
security testing, stress testing and performance testing. This stage of testing
determines whether the developed system works according to the way it was
envisioned.
Acceptance Testing: It involves testing the system with respect to user needs,
requirements and business processes. This is done to determine whether or not
the system satisfies the acceptance criteria. It enables the users to test the system
themselves and analyse whether it is meeting their requirements or not. On the
basis of the results of the tests, the user accepts or rejects the system.
Once all the tests are conducted, a test report is made that summarizes the
outcome of the testing in terms of items tested, summary of results and the
effectiveness of the testing.
B. Implementation - A good system prevails when it is implemented without
affecting the routine operations of the organisation. This requires careful planning
& coordination. In case the system is new implementation is quite
straightforward.
If the system is replacing an existing one (this is called conversion)
implementation becomes critical. To accomplish the conversion, different
strategies can be used, which are as follows:
i. Parallel Conversion- The old system is used in parallel with the new
system for some time.
ii. Direct Cutover Conversion- The old system is replaced with the new
system
iii. Phased Conversion- Instead of implementing the entire system at once, the
system is broken into different modules and these modules are employed
one at a time
iv. Phased Conversion- The new system can be deployed in one department
only

5.- System Maintenance - Maintenance can be defined as the process of

changing the hardware, software, documentation or procedures for correcting
errors, meeting new requirements or improving efficiency of the system. The
main objective of maintenance is to ensure that the system is able to accommodate
changes after the system has been delivered and deployed. The following are the
purposes served by the maintenance activity.
i. Providing Continuity of Service: Software maintenance process focuses
on fixing errors, recovering from failures, such as hardware failures or
incompatibility of hardware with software.
ii. Supporting Mandatory Upgrades: Software maintenance supports
upgradations, if required, in a software system. Upgradations may be
required due to changes in government regulations or standards.
iii. Improving Software to Support user requirements: With time, user’s
requirements may be changed. Software maintenance provides a
framework using which all the requested changes can be accommodated.
iv. Facilitating Future Maintenance Work: Software maintenance also
facilitates future maintenance work, which may include restructuring of the
software code and database used in the software