Management Information System

UNIT 1
Meaning and basic concept of Information Technology
What is information technology?
Information technology (IT) is the use of any computers, storage, networking and other physical
devices, infrastructure and processes to create, process, store, secure and exchange all forms of
electronic data. Typically, IT is used in the context of business operations, as opposed to
technology used for personal or entertainment purposes. The commercial use of IT encompasses
both computer technology and telecommunications.

What does information technology encompass?

The IT department ensures that the organization's systems, networks, data and applications all
connect and function properly. The IT team handles three major areas:

1. deploys and maintains business applications, services and infrastructure (servers, networks,
storage);
2. monitors, optimizes and troubleshoots the performance of applications, services and
infrastructure; and
3. Oversees the security and governance of applications, services and infrastructure.

The Important Business Objectives of Information Technology

1. Operational Excellence: A business that runs efficiently and productively is a business
that is more able to minimize overhead costs and maximizes its resources. The less efficient
your operations are, the less productive your employees will be. Information Technology will
allow you to streamline work processes and improve communication within the company,
thereby helping your employees save time and making your operations much more efficient.
2. New Products, Services, and Business Models: Information Technology can help your
company discover better business models and identify new types of products and services to
offer your customers. If you don’t adopt new IT solutions, your products and services are
likely to grow stale. Consumers demand constant innovation, especially as technology
continues to evolve to match their ever-changing needs and desires.
3. Customer and Supplier Intimacy: The use of Information Technology makes it easier to
engage with customers and suppliers, which, in turn, allows you to be more effective in
building long-term relationships with both. This can be done by positioning yourself to
support both customers and suppliers in a more organized and efficient way; for example, you
can improve the ease of which you can be reached by having representatives available by
phone, email, live website chat, and via social media. Additionally, business-to-business
 (B2B) integrations can streamline transactions and create“stickiness” for important
customers and suppliers.

5. Improved Decision Making: Crafting an IT budget is an important and difficult task in any
company. But without a technology roadmap, it is often more difficult to predict what IT systems
a business needs to optimally fulfill its goals. Without a strategy in place, executives are
typically unable to know how to strategically use the requisite IT solutions to fulfill the
overarching business vision. Thus, having a technology roadmap can help a business to
effectively budget for the future.

5. Competitive Advantage: Often a company will lack an overall, executive-level agreement

on how to leverage IT systems for the furthering of the organization’s goals. A technology
roadmap identifies where the business wants to be in the future, and how technology can help the
enterprise get there, thereby helping a company to plan the use of IT systems to achieve both
short-term and long-term goals.

6. Survival: A decade ago, you could argue that Information Technology was a luxury reserved
for bigger businesses with bigger budgets. However, that has all changed due to the fact that
everyone has access to newer, more advanced technology — including your customers. This
means that in order to stay relevant within your industry and to keep up with your competitors,
you need to implement IT to simply survive.

Meaning and basic concept of Information System

An information system (IS) is a formal, sociotechnical, organizational system designed to

collect, process, store, and distribute information. From a sociotechnical perspective, information
systems are composed by four components: task, people, structure (or roles), and
technology. Information systems can be defined as an integration of components for collection,
storage and processing of data of which the data is used to provide information, contribute to
knowledge as well as digital products that facilitate decision making.
A computer information system is a system that is composed of people and computers that
processes or interprets information. The term is also sometimes used to simply refer to
a computer system with software installed.
"Information systems" is also an academic field study about systems with a specific reference
to information and the complementary networks of computer hardware and software that people
and organizations use to collect, filter, process, create and also distribute data. An emphasis is
placed on an information system having a definitive boundary, users, processors, storage, inputs,
outputs and the aforementioned communication networks.
The six components that must come together in order to produce an
information system is:

1. Hardware: The term hardware refers to machinery and equipment. In a modern

information system, this category includes the computer itself and all of its support
equipment. The support equipment includes input and output devices, storage devices
and communications devices. In pre-computer information systems, the hardware might
include ledger books and ink.
2. Software: The term software refers to computer programs and the manuals (if any) that
support them. Computer programs are machine-readable instructions that direct the
circuitry within the hardware parts of the system to function in ways that produce useful
information from data. Programs are generally stored on some input/output medium,
often a disk or tape. The "software" for pre-computer information systems included how
the hardware was prepared for use (e.g., column headings in the ledger book) and
instructions for using them (the guidebook for a card catalog).
3. Data: Data are facts that are used by systems to produce useful information. In modern
information systems, data are generally stored in machine-readable form on disk or tape
until the computer needs them. In pre-computer information systems, the data are
generally stored in human-readable form.
4. Procedures: Procedures are the policies that govern the operation of an information
system. "Procedures are to people what software is to hardware" is a common analogy
that is used to illustrate the role of procedures in a system.
5. People: Every system needs people if it is to be useful. Often the most overlooked
element of the system is the people, probably the component that most influence the
success or failure of information systems. This includes "not only the users, but those
who operate and service the computers, those who maintain the data, and those who
support the network of computers.
6. Internet: is a combination of data and people . (Although this component isn't necessary
to function).
Data is the bridge between hardware and people. This means that the data we collect is only data
until we involve people. At that point, data is now information.

What is System?
A system is a group of interacting or interrelated elements that act according to a set of rules to
form a unified whole. A system, surrounded and influenced by its environment, is described by
its boundaries, structure and purpose and expressed in its functioning. Systems are the subjects of
study of systems theory and other systems sciences.
 Meaning and basic concept of Management Information System
A management information system (MIS) is a computer system consisting of hardware and
software that serves as the backbone of an organization’s operations. An MIS gathers data from
multiple online systems, analyzes the information, and reports data to aid in management
decision-making.

Components of Management Information System

1. Management
Management can be defined as the procedure of planning and regulating the operation of an
organisation . Framing of policies, its execution and stopping of employees are its key task. The
management procedure can be analysed with the help of managers actions.
These are as follows :
 Planning
 Staffing
 Organising
 Directing
 Coordination
 Controlling

2. Information:
The word information is derived from latin word 'informer' which means 'give form to'
information is data that has been processed and retrieved in such a way to that it is meaningful to
person who received it.

3. System:
A group of elements is called system these elements are called subsystem. All subsystem are
grouped together to serve a common purpose.

Features of Management Information System

1) Integrative system: An MIS is logically integrated system comprising of subsystem, where
activities of each are interrelated . this integration is possible by the auto rotation of data among
the sub system.
2) Sub- system concept: Alto system is considered a single entity, but a big system is divided
into sub system. so that one such system can be implemented at a time , for better effectiveness.
3) Provides relevant information to management: MIS should provide only relevant
information to managers. At times , determining relevant information becomes very difficult,
especially when and analyses of problems is done differently by different managers, according to
 the varying circumstances.thus, MIS provides relevant information and helps in reducing
confusion and solving problems.
4) Flexible: A MIS must be one that can be easily modified to changing circumstances. It must
be capable of expansion, accommodate growth or new type of processing activity and
contraction as and when required.
5) Enhances productivity: MIS oh whole improves the efficiency of an organisation. It helps in
efficient document preparation, provides high level of services to individuals and external
organisation, help in early detection of warning about internal and external problems ,and also in
identifying opportunities. It assists in the overall management of organisation and improves the
managers ability to deal with unexpected problems.
6) Co-ordinate system: MIS is centrally synchronized so that all its components such as data
processing, office automation , intelligence and decision support system, are developed and
managed in a planned and coordinated manner.
7) Feedback System: MIS provides feedback about its own efficiency and effectiveness. The
system itself provides statistics about by 'whom and 'how much' the system has been used.
8) Management Oriented : MIS is design from top to bottom corner but not necessarily start
from the management needs of the overall business goals. this means that the system may be
developed keeping in mind the needs of the middle /operation management as well as the top
management to stop .this ensures a good MIS.
9) Management Directed : It is imperative that management should dynamically direct and
development of system because Management Information System is management oriented.
Management should decided that information is required and hence help in designing MIS.
10) Common Database : Since MIS is an integrative system, it has the opportunity to avoid
duplication and redundancy in data collection, storage and sharing. One master file should be
maintained , which can then use be different function areas from their respective report
preparation and analysis.
Need of Management Information System
An organisation must have a very clear version about requirements such as type of information
required, type of data available , type of stakeholders etc, at different levels of Management.
An Organisation established and MIS for the following reasons:

 Efficiently storing and managing data of all business functional areas.

 Fast and accurate delivery of information, as and when needed.
 Processing of gathered data and developing information from it.
 Information availability for production and inventory.
 Providing information about current economic status of company.
 Faster implementation of results available from reliable data sources.
 Smooth flow of data within various levels of organisation.
 Make availability of information required for planning organizing and monitoring business
process.

Purpose and Objectives of Management Information System

1) Data Capturing: MIS gathers information from various internal and external either manually
or electronically with the use of computer terminals.

2) Processing of Data: The collected data goes through a number of process like calculation ,
sorting, classification and summary for its conversion information.

3) Storage of information: The processed or the unprocessed data stored in the MIS for
future use by saving it as an organization record. The data may also be used immediately.

4) Retrieval Of Information:As per the request of different uses, retrieval of information is

done by MIS from its stores.

5) Dissemination of information: Information is the final product of MIS which is equally

accessible by all users in the organisation. It may be periodic or online with the use of computer
terminal.

Role of Information Technology in MIS

Information technology (IT) has become a vital and integral part of every business plan. From
multi-national corporations who maintain mainframe systems and databases to small
businesses that own a single computer, IT plays a role. The reasons for the omnipresent use of
computer technology in business can best be determined by looking at how it is being used
across the business world.

1. Communication between Employees, Suppliers and Customers

For many companies, email is the principal means of communication between employees,
suppliers and customers. Email was one of the early drivers of the Internet, providing a simple
and inexpensive means to communicate. Over the years, a number of other communications
tools have also evolved, allowing staff to communicate using live chat systems, online meeting
tools and video-conferencing systems. Voice over internet protocol (VOIP) telephones and
smart-phones offer even more high-tech ways for employees to communicate.

2. Inventory Management Systems

When it comes to managing inventory, organizations need to maintain enough stock to meet
demand without investing in more than they require. Inventory management systems track the
quantity of each item a company maintains, triggering an order of additional stock when the
quantities fall below a pre-determined amount. These systems are best used when the inventory
management system is connected to the point-of-sale (POS) system. The POS system ensures
that each time an item is sold, one of that item is removed from the inventory count, creating a
closed information loop between all departments.

3. Data Management Systems

The days of large file rooms, rows of filing cabinets and the mailing of documents is fading
fast. Today, most companies store digital versions of documents on servers and storage
devices. These documents become instantly available to everyone in the company, regardless
of their geographical location. Companies are able to store and maintain a tremendous amount
of historical data economically, and employees benefit from immediate access to the
documents they need.

4. Management Information Systems

Storing data is only a benefit if that data can be used effectively. Progressive companies use
that data as part of their strategic planning process as well as the tactical execution of that
strategy. Management Information Systems (MIS) enable companies to track sales data,
expenses and productivity levels. The information can be used to track profitability over time,
maximize return on investment and identify areas of improvement.Managers can track sales on
a daily basis, allowing them to immediately react to lower-than-expected numbers by boosting
employee productivity or reducing the cost of an item.

5. Customer Relationship Management

Companies are using IT to improve the way they design and manage customer relationships.
Customer Relationship Management (CRM) systems capture every interaction a company has
with a customer, so that a more enriching experience is possible. If a customer calls a call
center with an issue, the customer support representative will be able to see what the customer
has purchased, view shipping information, call up the training manual for that item and
effectively respond to the issue.

MIS as an instrument for organizational change.

External change:

1. MIS has made world smaller

2. World wide reorganization environment and attempt to control the calamity .

3. Health conscious among the group leading less feeling.

4. Ceating knowledge is an asset.

Internal change:

1. MIS will change the business process.

2. MIS will change the old standards and set new standards.

3. MIS key for continue improvement process.

4. MIS focus on shared information.

5. MIS brings cultural change.

6. MIS measures the result and performance.

 UNIT 2

Decision making and information

Meaning and definition of Decision making

A decision is an act of selection or choice of one action from several alternatives.

Decision-making can be defined as the process of selecting a right and effective course of action
from two or more alternatives for the purpose of achieving a desired result. Decision-making is
the essence of management.

George Terry defines decision-making “as the selection of one behavior alternative from two
or more possible alternatives.”

Models of Decision Making: Rational, Administrative and Retrospective

Decision Making Models.
1. The Rational/Classical Model:
The rational model is the first attempt to know the decision-making-process. It is considered by
some as the classical approach to understand the decision-making process.

Features of Classical Model:

1. Problems are clear.

2. Objectives are clear.

3. People agree on criteria and weights.

4. All alternatives are known.

5. All consequences can be anticipated.

6. Decision makes are rational.

i. They are not biased in recognizing problems.

ii. They are capable of processing ail relevant information

iii. They anticipate present and future consequences of decisions.

iv. They search for all alternatives that maximize the desired results.

2. Bounded Rationality Model or Administrative Man Model:

Decision-making involve the achievement of a goal. Rationality demands that the decision-
maker should properly understand the alternative courses of action for reaching the goals.

He should also have full information and the ability to analyze properly various alternative
courses of action in the light of goals sought. There should also be a desire to select the best
solutions by selecting the alternative which will satisfy the goal achievement.

Herbert A. Simon defines rationality in terms of objective and intelligent action. It is

characterised by behavioural nexus between ends and means. If appropriate means are chosen to
reach desired ends the decision is rational.Bounded Rationality model is based on the concept
developed by Herbert Simon. This model does not assume individual rationality in the decision
process.Instead, it assumes that people, while they may seek the best solution, normally settle for
much less, because the decisions they confront typically demand greater information, time,
processing capabilities than they possess. They settle for “bounded rationality or limited
rationality in decisions. This model is based on certain basic concepts.

a. Sequential Attention to alternative solution:

Normally it is the tendency for people to examine possible solution one at a time instead of
identifying all possible solutions and stop searching once an acceptable (though not necessarily
the best) solution is found.

b. Heuristic:
These are the assumptions that guide the search for alternatives into areas that have a high
probability for yielding success.
c. Satisfying:
Herbert Simon called this “satisficing” that is picking a course of action that is satisfactory or
“good enough” under the circumstances. It is the tendency for decision makers to accept the first
alternative that meets their minimally acceptable requirements rather than pushing them further
for an alternative that produces the best results. Satisfying is preferred for decisions of small
significance when time is the major constraint or where most of the alternatives are essentially
similar.

Herbert Simon’s Model

Herbert Simon Model on Decision Making

Herbert Simon, the Nobel Prize winning researcher, showed that humans went through three
essential stages in the act of problem solving. He called these the Intelligence, Design, and
Choice stages.

Decision making can also be considered as a type of problem solving. In the first stage, that of
intelligence, they collect information about the issue from the environment and the surrounding
context.
Information Meaning and Definition

“Information is an assemblage of data in a comprehensible form capable of communication.

This may range from content in any format – written or printed on paper, stored in electronic
databases, collected on the Internet etc. -to the personal knowledge of the staff of an
organization.” – Harrods Librarian’s Glossary and Reference Book.

“The data are potential information but when data are actually used they are called Information.”
– Davis & Johnson.
Types of Information.
1. Conceptual information: Information which is based on ideas, concepts, theories, hypothesis
etc, and might be used in future or not. It does not always mean the actual meaning. Such
information does not have scientific foundation.

 e.g. Charles Darwin’s Theory of Evaluation.

2. Empirical Information: The word empirical information denotes information acquired by

means of observation or experimentation. This information have scientific foundation.

 e.g. H2+O2=H2O (Water)

3. Procedural Information: The methodology which enables the investigators to operate more
effectively. Procedural information relates to means by which the data of investigation are
obtained, manipulated, and tested.

 e.g. police officer > Inform to public > Reason of investigation > To find out actual
criminal.

4. Stimulatory Information: Information which creates stimulation among the people are called
to be the stimulatory information.

 e.g. Victory day celebration.

5. Policy Information: This type of information focuses on the decision making process. It can
be obtained from description, picture, diagram etc.

 e.g. Law and Justice.

6. Descriptive information: Information which deals with providing direction is called directive
information.

 e.g. Mode of operation in any organization.

Attribute of Information and relevance to Decision Making

1) Timeliness

Timeliness means that information must reach the recipients within the prescribed time frame.
Timely information can ensure correct executive action at an early stage. The characteristic of
timeliness, to be effective, should also include current information.

2) Accuracy

Accuracy is another key-attribute of management information. It means that information is free

from mistakes and errors, is clear and accurately reflects the meaning of data on which it is
based. It conveys an accurate picture to the recipient, who may require a presentation in
graphical form rather than tabular form.

3) Relevance

Relevance is yet another key attribute of management information. Information is said to be

relevant if it answers specifically for the recipient what, why, where, who and why? In other
words, the MIS should serve reports to managers, which are useful, and the information helps
them make decisions.

4) Adequacy

Adequacy means information must be sufficient in quantity. MIS must provide reports
containing information, which is required in deciding processes of decision-making.

5) Completeness

The information, which is provided to a manager, must be complete and should meet all his
needs. Incomplete information may result in wrong decisions and thus may prove costly to the
organization.

6) Explicitness

A report is said to be of good quality if it does not require further analysis by the recipient for
decision-making. Thus the reports should be such that a manager does not waste any time on the
processing of the report, rather he should be able to extract the required information directly.

7) Exception based.
Top managers need only exception reports regarding the performance of the organization.
Exception reporting principle states that only those items of information, which will be of
particular interest to a manager, are reported. This approach results in saving precious time of
the top management and enables the managers to devote more time in pursuit of alternatives for
the growth of the organization.

Unit 3
 System Analysis and Design
Meaning and definition
A system is a way of working, organizing, or doing something which follows a fixed plan or set
of rules. You can use system to refer to an organization or institution that is organized in this
way. A system is a way of working, organizing, or doing something which follows a fixed plan
or set of rules. You can use system to refer to an organization or institution that is organized in
this way.

What is the Importance of Systems

1. A goods system reduces delay and avoids delays.

2. Systems, based on methods employed, assist in speedy dispatch of work.

3. A system involves internal check.

4. Saving in labor and overheads is brought about.

5. Delay, errors and unsatisfactory results are eliminated.

6. Improvements are constantly made.

7. A good system makes easier to train staff.

8. A uniform procedure is followed for each similar transaction.

9. Responsibility is more easily fixed for unsatisfactory performance.

10. A good system assists in the prevention of fraud and better control over work.
Elements of a System

System Analysis Meaning and Definition

Systems analysis is the process by which an individual (s) studies a system such that an
information system can be analyzed, modeled, and a logical alternative can be chosen. Systems
analysis projects are initiated for three reasons: problems, opportunities, and directives.

Objective of System Analysis are:

 First of all, It helps to design systems where subsystems may have conflicting objectives.
 Also, System analysis helps to achieve inter compatibility and unity of the sub systems
 It helps in understanding of complex structures.
 Above all, System analysis gives an advantage of understanding and comparing the
subsystems functions with complete system.
 Unit 4

Information System Applications

MIS Application in Business

MIS application in business falls into several different categories that provide information on
all forms of functioning within an organization. Executives and departments within an
organization could obtain any of the following forms of data:

 Business Intelligence System: In BI, all levels of management and executives can print data
and graphs showing information or trends relating to growth, costs, strategic control,
efficiency, risk and performance.

 Executive Information System: An EI system provides the same information as a BI system,

but with greater attention to detail and more confidential information, designed to help top-
level executives make choices that impact the entire organization.

 Marketing Information System: MI systems provide data about past marketing campaigns so
that marketing executives can determine what works, what does not work and what they need
to change in order to achieve the desired results.

 Transaction Processing System: TPS handles sales transactions and makes it possible for
customers to sort search results by size, color or price. This system can also track trends related
to sales and search results.

 Customer Relationship Management System: Keeping up with customers is key to overall

success, and CRMS helps companies know when and how to follow up with customers in order
to encourage an ongoing sales relationship with them.

 Sales Force Automation System: Gone are the days when sales teams must do everything
manually. SFA systems automate much of what must be done for orders and to obtain
customer information.

 Human Resource Management System: HRM systems track how much employees are paid,
when and how they are performing. Companies can use this information to help improve
performance or the bottom line.

 Knowledge Management System: Customers with questions want answers right away and
knowledge management systems allow them to access frequently asked questions or
troubleshoot on their own timetable.
 Financial Accounting System: Financial accounting systems help to track accounts receivable
and accounts payable, in order to best manage the cash flow of a company.

 Supply Chain Management System: SCM systems record and manage the supply of
finances, goods and data from the point of origin domestically or abroad, all the way to its
destination in the hands of a customer.

DSS –GDSS – DSS Applications in e-enterprise

A. Decision Support Systems:

A decision support system, or DSS, is a computer-based information system that organizes,

collects and analyzes business data that can be used in decision-making activities for the
management, operation and planning in an organization or business. The typical types of
information that are gathered by a DSS include sales figures, projected revenue and inventory
data that has been organized into relational databases, which is a collection of data with
predefined relationships, for analysis and comparative sales figures between specific, selected
time periods. A good DSS helps decision-makers with compiling various types of data gathered
from several different sources, including documents, raw data, management, business models
and personal knowledge from employees. DSS applications can be used in a vast array of
diverse fields, such as credit loan verification, medical diagnosis, business management, and
evaluating bids on engineering, agricultural or rail projects.

Types of decision support systems

While there is a DSS application for nearly every decision-making process, most of these tools
fall into one of five categories.
1. Document-driven DSSs:

These give a user access to databases based on a web search or keywords used in a query. Search
engines are one of the most common tools used in these systems. They use searches to find data
in documents like profiles, ratings and financial spreadsheets. These systems are typically found
online and in electronic files.

2. Data-driven DSSs:

These use quality data to determine a course of action based on a systematic process. They
strategically break down questions and goals into pieces based on data.
For example, a business owner wanting to purchase additional equipment for operations could
use one of these systems by looking at any data that supports this decision. Revenue, how
frequently current equipment is used and the efficiency of current operations would be some
factors the owner could consider. By using a data-driven DSS, the owner would analyze ways to
collect data to assess these factors and use the findings to make a decision on purchasing
additional equipment.

4. Knowledge-driven DSSs:

These are more generic types of DSSs. They are mainly used among managers to find
recommendations or suggestions for detailed problem-solving. These computer-based systems
use artificial intelligence and human intellect to look at how issues of a problem are connected.
They can also use data-mining methods to make predictions for tests or studies and look at
patterns to use for marketing plans.

5. Model-driven DSSs:

Making choices and analyzing decisions are at the center of this category. These systems use
models in areas like finances, simulations and statistics to consider possible options in making a
decision. Managers and staff can use these tools to understand the potential effects of a certain
decision.

These systems use databases, but they are typically smaller than ones used in data-driven DSSs.
Simple processes use one model to look at basic decisions.

Combining two or more models often makes a process more complicated but can also help with
weighing options for complex decisions.

6. Communication-driven DSSs:

These systems are often made for teams within businesses. They allow people to work together,
communicate easily and share information to support the process of making a decision. Software
and technology, like video calls, instant messaging, and other network and online platforms,
allow teams to consider choices and select options while meeting virtually and receiving quick
responses from team members.

B.Group Decision Support System (GDSS)

A group decision support system (GDSS) is an interactive computer-based system that facilitates
a number of decision-makers (working together in a group) in finding solutions to problems that
are unstructured in nature. They are designed in such a way that they take input from multiple
users interacting simultaneously with the systems to arrive at a decision as a group. The tools and
techniques provided by the group decision support system improve the quality and effectiveness
of the group meetings. Groupware and web-based tools for electronic meetings and
videoconferencing also support some of the group decision making processes, but their main
function is to make communication possible between the decision-makers.

Components of Group Decision Support System (GDSS)

A group decision support system (GDSS) is composed of 3 main components, namely

hardware, software tools, and people.

 Hardware: It includes electronic hardware like the computer, equipment used for
networking, electronic display boards and audiovisual equipment. It also includes the
conference facility, including the physical set up – the room, the tables, and the chairs –
laid out in such a manner that they can support group discussion and teamwork.
 Software Tools: It includes various tools and techniques, such as electronic
questionnaires, electronic brainstorming tools, idea organizers, tools for setting priority,
policy formation tool, etc. The use of these software tools in a group meeting helps the
group decision-makers to plan, organize ideas, gather information, establish priorities,
take decisions and document the meeting proceedings. As a result, meetings become
more productive.
 People: It compromises the members participating in the meeting, a trained facilitator
who helps with the proceedings of the meeting, and an expert staff to support the
hardware and software. The GDSS components together provide a favorable environment
for carrying out group meetings.

Features of Group Decision Support System (GDSS)

 Ease of Use: It consists of an interactive interface that makes working with GDSS simple
and easy.
 Better Decision Making: It provides the conference room setting and various software
tools that facilitate users at different locations to make decisions as a group resulting in
better decisions.
 Emphasis on Semi-structured and Unstructured Decisions: It provides important
information that assists middle and higher-level management in making semi-structured
and unstructured decisions.
 Specific and General Support: The facilitator controls the different phases of the group
decision support system meeting (idea generation, discussion, voting and vote counting,
etc.) what is displayed on the central screen and the type of ranking and voting that takes
place, etc. In addition, the facilitator also provides general support to the group and helps
them to use the system.
 Supports all Phases of the Decision Making: It can support all the four phases of
decision making, viz intelligence, design, choice, and implementation.
 Supports Positive Group Behavior: In a group meeting, as participants can share their
ideas more openly without the fear of being criticized, they display more positive group
behavior towards the subject matter of the meeting.
 Knowledge Management System
A knowledge management system is any kind of IT system that stores and retrieves knowledge
to improve understanding, collaboration, and process alignment. Knowledge management
systems can exist within organizations or teams, but they can also be used to center your
knowledge base for your users or customers.

This latter definition is what we’ll talk about in this guide — how to build a knowledge
management system, or a knowledge base, to improve the customer experience and help
customers achieve success using your products or services.

The meaning of knowledge management system, while broad in use, can be narrowed to the
following purpose: to help people utilize knowledge to better achieve tasks. When you look at
it like this, you can reframe it as a more proactive form of customer success. You can answer
customers’ questions in real time, as they’re struggling with their challenges, instead of
constantly answering the same questions in your support ticketing system.

There are many types of knowledge management systems, but they all share some common
characteristics. These include:

 FAQ content

 Forum or community feature

 How-to articles and tutorials

 Education, academies, and training programs

 Certificates

 Case studies

 Webinars

Advantages of knowledge management

Some of the common benefits of knowledge management include:

 improved organisational agility

 better and faster decision making
 quicker problem-solving
  increased rate of innovation
 supported employee growth and development
 sharing of specialist expertise
 better communication
 improved business processes

Challenges of knowledge management

The key to any successful knowledge management system is knowing its limitations. Some of
the common challenges include:

 finding ways to efficiently capture and record business knowledge

 making information and resources easier to find
 motivating people to share, reuse and apply knowledge consistently
 aligning knowledge management with the overall goals and business strategy
 choosing and implementing knowledge management technology
 integrating knowledge management into existing processes and information systems

Importance of KMS

1. Improve the decision-making process

By obtaining access to the knowledge of the entire organization, employees can
advance the quality and speed of decision-making. When making decisions, enterprise
collaboration tools facilitate the access to opinions and experiences of different people
with diverse viewpoints and judgements, which may contribute new and fresh
perspectives to the choices made.
2. Increase customer satisfaction
Knowledge sharing and cross-collaboration help to increase the value presented to
customers. The organization can give faster answers or shorten the time it takes to
improve a product or service.
3. Promote innovation and cultural change
Knowledge Management enables and encourages the sharing of ideas, collaboration
and access to the latest information. It also allows individuals to stimulate innovation
and the cultural changes needed to evolve the organization and meet changing business
needs.
4. Speed up access to knowledge and information
Knowledge Management simplifies the operation of finding the information you need,
or the people who hold it. It increases effectiveness and productivity and allows you to
work better, reducing the tendency to reinvent the wheel.
5. Avoid redundant effort
No one likes spending their time doing something over and over again. However,
people do so all the time for many reasons. Avoiding effort duplication can save you a
lot of time and money; it keeps employees motivated, and streamlines work too. So, by
not spending time reinventing the wheel, you can have more time on your hands to
invent something new.
6. Accelerate customer delivery
One vital differentiator among competitors is the speed of execution. Assuming that
everything else is equal, companies that deliver sooner than others will win. By sharing
knowledge and innovation internally, you can significantly reduce time to provide a
proposal, product, or service to a customer. Which translates into increased win rates,
add-on business, and new customers.
7. Stimulate growth and innovation
It is becoming more challenging for businesses to increase their revenues as industries
mature and competition increases. Creating new knowledge through effective
knowledge sharing, collaboration, and information delivery can help stimulate
innovation. If you achieve this and many of the other benefits enabled by knowledge
management, you should be able to see growth.

What is Knowledge Based Expert System (KBES)?

One of the principal members of the Al group is Knowledge-Based Expert System (KBES). With
the advancement of computing facilities and other resources, the focus has shifted to more
demanding tasks (which require intelligence).

Meaning of Knowledge Based Expert System

As society and industry become more knowledge oriented, they rely on different experts for
solving problems and decision making. Here, KBES becomes a productive tool as it provides
collective knowledge of one or more experts. It acts as an expert on demand, anytime, anywhere
and also helps in saving money by getting cheaper expert knowledge and letting users' function
at a higher level with consistency.
KBES is a computer-based system which uses and produces knowledge from data, information
and knowledge. These systems have the ability to understand the information that is being
processed and can take a final decision based on it. This is different from the traditional
computer systems that do not have any idea about the data/information which they are
processing. A knowledge based expert system is software or computer based information system
which comprises knowledge as data that is processed by computer programs to draw inferences
from knowledge base.

Features of Knowledge Based Expert System

The key features of the knowledge-based expert system in MIS are as described below:

1) High-Level Expertise :
The high-level expertise provided to help in problem solving is one of the most valuable features
of an expert system. This expertise is analogous to the best thinking by top experts in the specific
field providing solutions which are creative, precise and efficient.

2) Predictive Modelling Power :

Predictive modelling power is another useful feature of an expert system. It acts as a model of
problem solving in the given domain and throws up answers for given problem situations and
also reflects the change in them (given new situations explaining the reason for change). This
helps the user to assess the potential effect of new facts or data and know about their relationship
to the results.

3) Institutional Memory :
Institutional memory refers to the body of knowledge which defines the ability of an expert
system. When people in important position leave an organisation, their expertise gets reserved as
institutional memory. This is significant and critical for vital military and government
institutions where personnel transfers are frequent.

4) Ability to Provide a Training Facility :

An expert system is also capable of providing training to important personnel. As expert systems
already have the knowledge and reasoning ability, they can train various employees when
required.

Components of Knowledge Based Expert System

A knowledge base, the Inference Engine (IE) (a search program) and user interface are included
in Knowledge Based Expert System (KBES) :

1) Inference Engine (IE):

IE is used to understand the knowledge present in the knowledge base.

2) Knowledge Base:
Knowledge base is the storehouse of different forms of knowledge.

3) User Interface:
An appropriate user interface must be present which should have the natural. Language
processing facility.
Enterprise Model System and E- Business

An enterprise model is a representation of the structure, activities, processes, information,

resources, people, behavior, goals, and constraints of a business, government, or other
enterprises.

E-Business Meaning

Electronic Business (E-Business) is the administration of conducting any business using internet,
extranet, web and intranet. This would include buying and selling of goods or services using
commercial transactions conducted electronically along with providing customer or technical
support with the help of the internet. E-business is similar to E-commerce but it is more than just
a simple act of buying and selling services or goods online. In fact, it is the method of utilizing
digital information and advanced communication technologies to streamline different business
processes – from the initial to implementation phase. E-business includes a lot of business
processes including online order processing, CRM (Customer Relationship Management), supply
chain management and many more. E-commerce is a part of e-business, so let me give you a
comprehensive detail about what is e-business.

Components of E-Business

1. E-Procurement

It is also known as supplier exchange in which business to business, business to government,

business to consumer, and sales of services are made with the help of the internet. Basically, e-
procurement is a way adopted by the companies to reduce the costs and efforts by sourcing
products or services electronically.

2. Online Stores

It is an electronic sourcing (website or application) for products or services, such as online

shopping stores. Online stores are also known as e-shop, internet shop, web-store, virtual store,
web-shop, m-commerce, and online storefront. The main purpose of these online stores is to save
precious time and money.

Anyone can buy products or services by making online payments using credit cards, cash on
delivery and other payment methods. The owners of online stores should host their eCommerce
website on the PCI compliant hosting because Payment Card Industry Security Standards
Council (PCI SSC) make it compulsory for those who are accepting the online payments.

3. Online Marketplace

It is an electronic commerce that connects the buyers and suppliers to the services or products
over the internet. Keep in mind, the operator of an online marketplace only presents the
inventory of other people and provides the transaction facility.

Moreover, the following are also known as e-business areas:

4. Online Communities

Online communities (also known as web communities or internet communities) are the groups of
people having the same interests or purposes who use the internet to communicate with each
other. It is used between the individuals and organizations to prepare transaction decisions.

5. Online Companies

It is electronic business cooperation that connects the individual companies and forms a virtual
business with a common transaction offer.
Order Fulfillment Process

1. Product inquiry
You are surfing the website of any well-reputed business brand manufacturing laptops, desktops,
or monitors, and able to view their all products.

2. Sales Quote
Laptop prices, screen size or usage are clearly mentioned on the website for the sales quotation
for customers.

3. Order Configuration
Once the customers select what he proposed to purchase, the number of products are easily
adjusted or canceled during this phase.

4. Order Booking
This phase includes the booking of products available on the website, such as desktops, laptops,
or necessary accessories.

5. Order Confirmation
This process ensures the details of the order such as prices and quantities are accurate.

6. Billing
Billing is the process that enables customers to pay for the products by Visa, cheque, ATM, or
other available payment methods.
7. Order Planning
Every customer has different options for delivery, so the order will be delivered accordingly.

8. Order Processing
Once the order is confirmed, the company ensures the right item in the right quantity, time,
place, price, and condition to the right customer.

9. Shipment
According to the customers’ requirements, the products will be delivered by means of an
express, Air-to-Sea initiative, and so on.

10. Delivery
The products will be delivered within a given time slot at the right address.

11. Settlement
It is the method to settle all the remaining charges, like delivery costs or extra products’ care
expenditure.

12. Returns
Most of the companies offer the returns option with their particular terms and conditions. So, any
customer who has received the products with any technical or physical problems of products,
they can easily return their products within a specified period.

What is E-Commerce and it’s Types?

It is the short form of “Electronic Commerce” that is used for buying and selling products or
services over the internet. E-commerce has the following types:

1. Business to Business (B2B)

As the name represents, it is the name of electronic transactions of different services or products
between two companies or businesses. Payment processing companies and customer relationship
management (CRM) platforms are included in the B2B model.

2. Business to Consumer (B2C)

B2C is the most common form of e-commerce business because it is the relationship between a
seller and final customers. Business to Consumer has developed greatly with the development of
the internet and the latest technologies. Anyone can find various kinds of online stores on the
internet and buy products or services without visiting the market.
3. Consumer to Consumer (C2C)

In C2C, electronic transactions are made between the customer and another customer. It became
possible with the help of third-parties such as eBay as a marketplace for online action.
4. Consumer to Business (C2B)Any particular company cannot provide anything and they also
need different products/services to execute their business processes. So, it is a kind of business
model in which the customers or users create a service/product that is used by the company. For
example, any freelance designer is creating a logo and any business can use his services as they
need.

5. Business to Administration (B2A)Consumer to Administration includes all transactions

between the consumer/customer and the government. For example, taxes, education, etc.

E-Communication
Electronic communication can be defined as, the communication which uses electronic media to
transmit the information or message using computers, e-mail, telephone, video calling, FAX
machine, etc. This type of communication can be developed by sharing data like images,
graphics, sound, pictures, maps, software, and many things.
Because of this e-communication, there is a lot of changes have occurred in work areas, society,
etc. Thus, people can simply access global communication with no physical movement. Please
refer to this link to know about – Electronic Communication Protocols.

Types of Electronic Communication

1. E-Mail
E-Mail or electronic mail is the most used type of electronic communication. By using this
communication, one can send a message to another person through a mail immediately. For that,
we need to create an account to send an e-mail, media files, photos, documents, etc. This type of
communication has replaced many conventional types of communication due to many benefits.

2. Blogging
At present, blogging is the most preferable communication method. This is a type of online
journaling, which can be updated daily, or many times a day. It covers all the information or a
particular topic. By using such blogs, one can share, follow, or even post comments. This kind of
communication is extremely suitable. This is the reason why people utilize blogs very often.
Additionally, by using the internet, people can access, read & follow it worldwide.

3. Video Chat
This type of communication can be done by adding web cameras for video calling application.
By using this application, one can communicate with others and also they can observe with
whom they are speaking. The webcam can be connected to the computer externally and also we
need to use applications like Skype, Hangouts, etc. There are many benefits to using video
chatting. We can contact anybody immediately. We can communicate with more than one person
at a time by using the feature like business conference feature. Also, we can share PPTs, data
sheets online.

4. Social Networking
Social media is one kind of communication between people, which is used with their general
advantage otherwise for relationships. In this, mostly Facebook, as well as LinkedIn, give places
for people to work together, sometimes in real-time. There is a Micro-blogging service namely
Twitter, which allows the short message of more than 140 characters to be transmitted to a huge
audience.

5. Telex
This is a significant device for current electronic communication. This system uses a teleprinter
to communicate from one position to another using a machine. It includes mainly two parts like
keyboard transmitter as well as a receiver.

6. Fax
The Fax machine is a kind of communications and use of this is increasing gradually to transmit
materials which are visual like illustrations, diagrams, picture, etc. Here, this machine can be
connected using a telephonic.

The transmitted document can be fed throughout the machine, after that it is scanned
electronically & signals are broadcasted to the end of receiver wherever an equal document copy
is replicated on a plain paper sheet using the receiving machine.

Business Process Reengineering

Business process re-engineering is the radical redesign of business processes to achieve dramatic
improvements in critical aspects like quality, output, cost, service, and speed. Business process
reengineering (BPR) aims at cutting down enterprise costs and process redundancies on a very huge
scale.

Five steps of business process reengineering (BPR)

1. Map the current state of your business processes

Gather data from all resources–both software tools and stakeholders. Understand how the process is
performing currently.
2. Analyze them and find any process gaps or disconnects

Identify all the errors and delays that hold up a free flow of the process. Make sure if all details are
available in the respective steps for the stakeholders to make quick decisions.

3. Look for improvement opportunities and validate them

Check if all the steps are absolutely necessary. If a step is there to solely inform the person, remove
the step, and add an automated email trigger.

4. Design a cutting-edge future-state process map

Create a new process that solves all the problems you have identified. Don’t be afraid to design a
totally new process that is sure to work well. Designate KPIs for every step of the process.

5. Implement future state changes and be mindful of dependencies

Inform every stakeholder of the new process. Only proceed after everyone is on board and educated
about how the new process works. Constantly monitor the KPIs.