NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Management Information System

Management Information System (MIS) is an information system that collects, evaluates,
analyzes, and processes an organization's data to produce meaningful and useful
information based on which the management can take right decisions to ensure future
growth of the organization. This tutorial covers the concepts related to information and
provides a detailed coverage on MIS and other major enterprise-level systems. You will also
learn how these systems help in the decision-making process, which is critical to any
business enterprise.

MIS - Basic Information Concepts

Management: Management is art of getting things done through with the people in an
organization or formally organized groups. The basic functions of management in an
organization are: Planning, controlling, staffing, organizing, and directing.

Information: Information is considered as valuable component of an organization.

Information is data that is processed and is presented in a form which assists decision
making. Information is "Knowledge communicated or received, concerning a particular fact
or circumstance". Information cannot be predicted and resolves uncertainty."
Information can be defined as meaningfully interpreted data. If we give you a number 1-
212-290-4700, it does not make any sense on its own. It is just a raw data. However if we
say Tel: +1-212-290-4700, it starts making sense. It becomes a telephone number. If I gather
some more data and record it meaningfully like −
Address: 350 Fifth Avenue, 34th floor
New York, NY 10118-3299 USA
Tel: +1-212-290-4700
Fax: +1-212-736-1300
It becomes a very useful information - the address of New York office of Human Rights
Watch, a non-profit, non-governmental human rights organization. So, from a system
analyst's point of view, information is a sequence of symbols that can be construed to a
useful message.

System: A system is defined as a set of elements which are work together to achieve a
common objective. The elements are interrelated and interdependent. Thus every system is
said to be composed of subsystems. A system has one or multiple inputs, these inputs are
processed through a transformation process to convert these input(s) to output.
Subsystem: a subsystem is simply a system within a system. This means that
systems exist on more than one level that is, Systems can be composed of
subsystems or elemental parts. For example, the system of the firm includes
subsystems of the bank may be such departments as savings, demand deposit
(checking accounts), and installment loan.

1
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Systems
Basic Elements of System
A basic configuration of system consists of following elements; Input element,
Transformation process, and Output element. Additionally, some systems have feedback
loop, control mechanism, environment, boundaries, and objectives.
Input resources are transformed into output resources. The resources flow from the input
element, through the transformation element, and to the output element. A control
mechanism monitors the transformation process to ensure that the system meets its
objectives. The control mechanism is connected to the resource flow by means of a
feedback loop, which obtains information from the system output and makes it available to
the control mechanism. The control mechanism compares the feedback signals to the
objectives and directs signals to the input element when it is necessary to change the
system operation.

1. Input:involves capturing and assembling elements that are used for feeding the data to
beprocessed. Example are raw materials, clerical data about business and people.

2. Processing: involves the actual transformation and conversion ofdata into meaningful
information. Examples are mathematical calculations, and a manufacturing process.

2
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

3. Output: involves the elements that communicate the results of processing to the
outside world or ultimate destination for the benefit of the users. Examples of these
include management information, finished products, and human services.

4. Feedback: is defined as data about the performance of a system. Control in a dynamic

system is achieved by feedback. Feedback measures output against a standard in some
form of cybernetic procedure that includes communication and control. Output
information is fed back to the system or to management for deliberation. After the
output is compared against performance standards, changes can result in the input or
processing and consequently, the output. Feedback may be positive or negative For
example, data about exams performance is feedback to an exam officer.

5. Control: involves monitoring and evaluating feedback to determine whether a system is

moving towards the achievement of goals.The control element guides the system. It is
the decision-making subsystem that controls the pattern of activities governing input,
processing, and output. The control function then makes necessary adjustments to a
system’s input and processing components to ensure that it produces the set objectives.
Control system or mechanism basic elements are as follows:
• Specification Planning: A standard specifying the expected performance must be
set.
• Collecting facts: A measurement of the actual performance to check for
accuracy, speed, and anticipated results.
• Comparison: This attempts to isolate the reason for any variation
• Corrective Action: Actions taken to rectify variations. This may be achieved
through feedback.

6. Objectives: It is the goal(s) a system is to achieve.

7. Environment:The environment is the space/settings within which a system or

organization operates that influences the performance of the system. It is the source of
external elements that impinge on the system. In fact, it often determines how a system
must function. For example, the organization’s environment, consisting of vendors,
competitors, and others, may provide constraints and, consequently, influence the
actual performance of the business.

8. Boundaries and interface: A system should be defined by its boundaries – the limits that
identify its components, processes and interrelationship when it interfaces with another
system. For example, a teller system in a commercial bank is restricted to the deposits,
withdrawals and related activities of customers checking and savings accounts. It may
exclude mortgage foreclosures, trust activities, and the like.

3
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Types of Systems
Regardless of its category, a system is either closed or open. It is important to note that a
system exists and functions in an environment containing other systems.
1. Open System
A system that interacts with other systems by exchanging input and output components
with its environmental elements such as customers, suppliers, competitors, the labour
force, government and global community is called open system. A firm and most systems
that occur naturally in business are examples of open system. It has to adapt to its changing
environments where necessary in order to ensure its continued existence. Also, a business
system must be capable of reorganization in order to cope with the changing market
situations. An information system must also be able to adapt to changing demands for
information.

2. Closed System
A system whose function and behaviour not affected by its environment is a closed system.
That is, it is self-contained and the input/output elements do not interface with
environmental elements outside it. Example includes chemical reactions in a controlled
laboratory.

Categories of Systems
1. Probabilistic System
Probabilistic system is also called stochastic system is the one whose outcome cannot be
predicted with precision. That is, not certain what outputs will be achieved from specific
input because these systems are subjected to random influences from the internal and
external environment? Therefore, it cannot be predicted precisely. Examples include the
business system, economic system and particularly agricultural system.

2. Deterministic System
A deterministic system also called mechanistic system is one whose behavioural patterns
can be predicted if its present state and operation characteristics are known. Such a system
operates according to a predetermined set of rules. A good example of a deterministic
system is a computer program. The computer programmer knows in advance the output his
program will produce, if the program is error free.

3. Cybernetic System
The scientific approach to the study of the way information is moved and controlled in a
specified system is known as cybernetics. A cybernetic System is one that automatically
adapts to its environments. A system with feedback and control components is sometimes
called a cybernetic system, that is, a self-monitoring, self-regulating system.

4
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Characteristics of a System
There are essentially four (4) characteristics that support the General System Concept.
These include the following attributes:
a) Synergy: All systems are made up of subsystems and for a meaningful Management
Information System, the subsystems must act as one body where the whole is the greater
than sum of all the subsystemseach component functions with other components of the
system.
b) Hierarchy:It implies organization (structure and order).The system when viewed as a
whole, is made up of subsystems in which control flows in an ordered sequence from the
top to the bottom.
c) Interdependency:it implies that units/parts are dependent on each other.All the
units/parts of a system constitute an unbreakable whole so that no part can be altered
without affecting the other parts.
d) Sub-optimality:The parts of a system work together within the system even though each
part performs a unique function. This is a situation in which the sub-systems become selfish
and self-centered and pursuing their own objectives independently.
e)Central Objective: Objective may be real or stated. All the components work together to
achieve that particular objective.

5
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Information

Information Vs Data
Data can be described as unprocessed facts and figures. Plain collected data as raw facts
cannot help in decision-making. However, data is the raw material that is organized,
structured, and interpreted to create useful information systems.
Information is interpreted data; created from organized, structured, and processed data in
a particular context.
According to Davis and Olson −
"Information is a data that has been processed into a form that is meaningful to recipient
and is of real or perceived value in the current or the prospective action or decision of
recipient."

Information Hierarchy
The Information Hierarchy is as follows:
• Data: The raw material of information.
• Information: Data organized and presented.
• Knowledge:Information read, heard, or seen, and understood.
• Wisdom:Experienced and integrated knowledge and understanding.
• Business Intelligence: Information Management pertaining to an organization's
policy or decision-making, particularly when tied to strategic or operational
objectives.

Information/Data Collection Techniques

The specific methods analysts use for collecting data about requirements are called fact-
finding techniques. More than one of these techniques are usually employed to help
ensure an accurate and comprehensive investigation. The most popular data collection
techniques include:
1. Surveys/Questionnaires: Questionnaires allow analysts to collect data about various
aspects of a system from a large number of people using standardized question formats
can yield more reliable data than other fact finding techniques, and the wide distribution
ensures greater anonymity for respondents, which can lead to more honest responses.
However, this method does not allow analysts to observe the expressions or reactions or
respondents. Questionnaires can either be:
Open-ended questionnaires are usedto learn about feeling, opinions, and general
experiences or to explore a process or problem.

6
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Closed questionnaires control the frame of reference by presenting respondents with

specific responses from which to choose. This format is appropriate for electing factual
information.

2. Interviews: it involves collecting the answers to a set of pre-conceived questions

through personal interviews/interrogation. They are used to collect information from
individuals or from groups. The respondents are generally current users of the existing
system or potential users of the proposed system. In some instances, the respondents
may be managers or employees who provide data for the proposed system or who will
be affected by it. Interviews provide analysts with opportunities for gathering
information form respondents who have been chosen for their knowledge of the system
under study. This method is frequently the best source of qualitative information.
Interviews can be either structured or unstructured:
Unstructured Interviewsuse a question and answer format, are appropriate when
analysts want to acquire general information about a system. This format encourages
respondents to share their feelings, ideas, and beliefs.
Structured Interviews use standardized questions in either an open response or closed
response format. The former allows respondents to answer in their own words; the
latter uses a set of prescribed answers.

3. Tests or Observation: An experimental test is conducted on the subject and the data is
collected e.g. Focused groups, observation. It allows analysts to gain information they
cannot obtain by any other fact finding method. Through focus groups or observation,
analysts can obtain first-hand information about how activities are carried out.

4. Secondary data sources or archival data:Data is collected through old records,

magazines, company website etc. Many kinds of records and reports can provide
analysts with valuable information about organizations and operations. Analysts
examine information that has been recorded about the system and user.

Classification of Information

7
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

1. Classification by Characteristics
i. Action vs Non-Action Information: The information which induces action is called
action information. ‘No stock’ report calling a purchase action is an action
information. The information which communicates only the status is non-action
Information. The stock balance is non-action information.

ii. Recurring vs Non-Recurring Information: The information generated at regular

intervals is recurring information. The monthly sales reports, the stock statement,
the trial balance, etc are recurring information. The financial analysis or the report
on the market research study is non-recurring information.

iii. Internalvs External information: The information generated through the internal
sources of the organization is termed as Internal Information, while the information
generated through the govt. reports, the industry survey etc., termed as External
Information, as the sources of the data are outside the organization.

2. Classification by Management
Based on Anthony's classification of Management, information used in business for
decision-making is generally categorized into three types −
i. Strategic Information (Top Level) − Strategic information is concerned with long
term policy decisions that defines the objectives of a business and checks how well
these objectives are met. This is used by senior managers/Board of Directors to plan
the objectives of their organization, and to assess whether the objectives are being

8
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

met in practice. For example, acquiring a new plant, a new product, diversification
of business etc.
Characteristics of Strategic Information
• Derived from both internal and external sources
• Summarized report
• Relevant to the long term
• Deals with the whole organisation
• It is both quantitative and qualitative (eg overall profitability, future market
prospects, total cash needs capital equipment needs).

ii. Tactical Information (Middle Level) − Tactical information is concerned with the
information needed for exercising control over business resources& activities of an
organization. Examples include budgeting, quality control, service level, inventory
level, productivity level, determining monthly sales plan etc.
Characteristics of Tactical Information
• It is relevant to short and medium term
• Describes or analyses activities or departments
• It is prepared routinely and regularly
• It is based on quantitative measures (cash flow forecasts, budgetary control
or variance analysis reports, short-term purchasing requirement).

iii. Operational Information (Supervisory Level) − Operational information is

concerned with daily operations and is used to ensure proper conduction of specific
operational tasks as planned/intended. This is used at the lower level management
for daily or hourly running of their section. Examples include prices of items,
customers’ credit rating, stock availability various operator specific, machine specific
and shift specific jobs for quality control checks etc.
Characteristics of Operational Information
• Derived almost entirely from internal sources
• Highly detailed
• Relates to the immediate term
• Is task-specific
• Prepared constantly or very frequently
• Largely quantitative

3. Classification by Application
In terms of applications, information can be categorized as −
i. Planning Information: These are the information needed for establishing standard
norms and specifications in an organization. This information is used in strategic,

9
NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

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.
When such information reflects a deviation from the established standards, the
system should induce a decision or an action leading to control.
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. For
example, daily schedules in a manufacturing plant that refers to the detailed
assignment of jobs to machines or machines to operators. In a service oriented
business, it would be the duty roster of various personnel. This information is mostly
internal to the organization.
vi. Database Information: Database information construes large quantities of
information that has multiple usage and application. Such information is stored,
retrieved and managed to create databases. For example, material specification or
supplier information is stored for multiple users.

Quality of Information
Information is a vital resource for the success of any organization. Future of an organization
lies in using and disseminating information wisely. Good quality information placed in right
context in right time tells us about opportunities and problems well in advance.
Good quality information − Quality is a value that would vary according to the users and
uses of the information.
According to Wang and Strong, following are the essentials of Information Quality −
• Intrinsic: Accuracy, Objectivity, Believability, Reputation
• Contextual: Relevancy, Value-Added, Timeliness, Completeness, Amount of
information
• Representational: Interpretability, Format, Consistency, Compatibility
• Accessibility: Accessibility, Access security

10
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Characteristics of Quality Information

• Reliability: It should be verifiable and dependable.
• Timely: It must be current and it must reach the users well in time, so that important
decisions can be made in time.
• Relevant: It should be current and legal information and it should reduce
uncertainties/doubts. The MIS should serve reports to managers which is useful and
the information helps them to make decisions.
• Accurate: It should be free of errors and mistakes, true, and not deceptive.
• Sufficient/Adequacy: It should be adequate in quantity, so that decisions can be made
on its basis.
• Unambiguous: It should be expressed in clear terms. In other words, in should be
comprehensive.
• Complete: It must be comprehensive and should meet all the needs in the current
context.Incomplete information may result in wrong decisions and thus may prove
costly to the organization.
• Unbiased: It should be impartial, free from any partiality. In other words, it should
have integrity.The partiality creeps in, if the data is collected with a preconceived
view, a prejudice, and a pre-determined objective or a certain motive.
• Comparable: It should be of uniform collection, analysis, content, and format.
• Authentic:Information should be gotten from a right and reliable source.
• Consistency:The information is termed as inconsistent if it is derived form a data
which does not have a consistent pattern of period. Somewhere, the information
must relate to a consistent base or a pattern.
• Age:If the information is old, it is not useful today. The currency of the information
makes all the difference to the users. If the information is old then it does not meet
any characteristics of the information viz., the update of knowledge, the element of
surprise and the reduction of uncertainty, and the representation.

Data Processing Activities (Producing Information from Data)

Data processing consists of gathering the raw data input, evaluating and bringing order to it
and placing it in proper perspective so that useful information will be produced. All data
processing whether done by hand or by the latest computer system, consists of three basic
activities: capturing the input data, manipulating the data, and managing the output results.

1. Capturing the Input Data

i. Capturing: Data must be originated in some form and verified for accuracy prior to
further processing. They may initially be recorded on paper source documents and then
converted into a machine usable form for processing, or they may be captured directly
in a paperless machine-readable form.

11
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

ii. Verifying: Refers to the checking or validating of data to ensure that it was captured and
recorded correctly. Examples are; a person reviewing another's work, the use of check
digits in coding structures e.t.c.

2. Manipulating the Data.

One or more of the following operations may then have to be performed on the gathered
data:

i. Classifying: It places data element into specific categories which provide meaning for
the user e.g Sales data can be classified as inventory type, size, customer, sales-woman,
warehouse shipped from.

ii. Arranging (sorting): Places data element in a specified or predetermined sequence,

e.gan inventory file can be arranged by product code, activity level, Naira value or by ant
other attribute coded in the file and deemed desirable by a user.

iii. Summarising: Combines or aggregates data element, e.g reducing data in the logical
sense, as in the example where personnel manager wants a list of names of employees
assigned to a department in a form.

iv. Calculating: Entails the arithmetic and/or logical manipulation of data e.g computation
to derive employees pay, customer's bill, students’ grade point averages. Sophisticated
calculations include linear programming, fore-casting e.t.c.

3. Managing the output results.

Once data have been captured and manipulated, one or more of the following operations
may be needed:

i. Storing: Places data onto some storage media such as magnetic tape, disk e.t.c where it
can be retrieved when needed.

ii. Retrieving: Entails searching out and gaining access to specific data elements from the
medium where it is stored.

iii. Communicating: Transferring data from one location or operation to another for use or
for further processing is data communication- a process that continues until
information, in a usable form, reaches the final user.

iv. Reproducing: Duplicates data from one medium to another or into another position in
the same medium e.g. a file of data stored on a magnetic disk may be reproduced onto

12
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

another magnetic disk or onto a magnetic tape for further processing or for security
reasons.

Methods of Data Processing

1. Manual Method: Involves operations performed by a clerk assisted, if defined, by
specific aids such as a pocket calculator or adding machine etc. This method of
processing is only suitable in cases where there is no emphasis on the specific period of
time the work must be completed. The processing is simple and in most cases, the
employment of more hands will solve the problem of time constraint. Example is the
updating of handwritten ledger records.

2. Mechanical Method: Involves operations that are performed by machine consisting of a

keyboard but which are actuated by depressing appropriate keys by an operator.
Example is the posting of lodgements and withdrawals on the personal customer's
ledger using an accounting machine.

3. Electronic Method: Is more or less like the mechanical method except that in this case
the machine being used is electronic and may have optional peripheral devices that are
attached to it. It can be used for many accounting procedures including payroll, stock
schedules and ledger updating. These days, computers are being used. Data for input are
entered through keyboard, card reader, optical character/mark reader, tape reader etc,
while processed data are printed or displayed or stored on auxiliary storage. Its
processing speed is high and can therefore handle quite a large amount of data. Very
suitable for processing tasks that are repetitive in nature.

Advantages of Manual System

1. Initial cost of setting up is cheaper.
2. Major training is not needed.
3. Economical for small business.

Advantages of Computerised System

1. Speedy operation.
2. Automatic operation.
3. Accurate information.
4. Varied management information
5. Random enquiries on stored data can be easily performed.
6. High productivity and improved service.

13
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Management
Management is an integral part of any organization. The survival of any organization is
dependent largely on the quality of management or administration services available.
Management can be simply defined as the organization and mobilization of all human and
material resources in a particular system for the achievement of identified objectives in the
system. The two key words are ‘human’ and ‘materials’. It is the business of management
that both human and material resources within a system should be organized and mobilized
so that the objectives of the system can be achieved to the fullest. Then administration or
management therefore influences the results to be achieved, the direction to be pursued
and the priorities to be recognised. Duker (1994) sees management as denoting a function
as well as the people who discharge it. He further regards management as:
• Taking place within a structured organizational setting and with prescribed roles.
• Directed towards the attainment of aims and objectives.
• Achieved through efforts of other people; and
• Using systems and procedure.

Management Functions
Theseprinciple functions of management should be considered to have a successful
administration and can be applied to organization, be it industry, education or government.
These functions include the following:

1. Planning: This is the first step in any administrative function. It involves making
arrangements for thefuture in order to achieve the system’s objectives. It deals on how
to use time, personnel, money and equipment in future. The future may beginwith days,
weeks, month or year. Plans are made after or goals and objectives are set .Planning
isusually regarded as a search for the best method of achieving these goals.

2. Organising: The manager decides what jobs would have to be filled and the duties and
responsibilities attached to each one. Effective organization implies that the right people
are assigned to the correct jobs at the appropriate time. Activities should be assigned to
individuals on the basis of their ascertained qualification, experience and interests. On
the part of the manager, a lot of wisdom, maturity and objectivity are required.

3. Directing: Directing involves giving orders to staff on how to go about their jobs. It is not
once for all activity but an on-going one. Officers have to be continually monitored and
put on the right path.

4. Co-ordinating: This relates to bringing together the activities of different units to ensure
that the differentactivities are met, to achieve the set objectives. Coordination occurs
when the organisation’snumerous activities are planned, organized, directed and
controlled.

14
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

5. Controlling: It is the measuring and correcting the activities are contributing to the
achievement of planned goals. Some authors have pointed out that appraisal, evaluating
and supervision are the administrators’ tools for controlling, directing and leading.

6. Staffing: The staff are an assembly of available people in the organization with the
appropriate skills in order to achieve a system’s goals. The manager’s skill lies in being
able to motivate them, managing conflicts and ensuring good communication amongst
the staff.

Manager
A manager is a person assigned to plan, organize, co-ordinate, directs, controls,and leadsa
team or an organization towards achieving its objectives. A manager applies specialized
knowledge, skills, tools, and technique in order to meet these systems’ objectives. He/she
heads up a team and has the authority and responsibility for meeting objectives by applying
management functions.

Characteristics of a Manager
There are several technical and interpersonal skills that are required to perform this job
well. Here are some examples of skills that managers should possess:
1. Leadership
2. Negotiation tactics
3. Problem solving
4. Interpersonal communication
5. Written communication
6. Public speaking
7. Task delegation
8. Fair and just
9. Flexible and adaptable
10. Preferences for initiative and leadership
11. Confidence, persuasiveness, and verbal fluency
12. Effective communicator
13. Active listener and can capitalize on information
14. Must ask questions and clarify anything he is unsure of
15. Good behaviour and interpersonal skills
16. Know how to build trust , promote team spirit, reward cooperation

15
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Information System
An Information System: is a system that gathers data, processes and disseminates
information with the sole purpose of providing information to its users. The main object of
an information system is to provide information to its users. Information systems vary
according to the type of users who use the system.

Components/Resources of an Information System

An information system depends on the resources of people, hardware, software, data and
networks to perform input, processing, output, storage and control activities that convert
data resources into information.
IS consists of 5 major resources:
1. People
People are required for the operation of all information systems and are the essential
ingredient for the successful operation of all information systems. This people resource
includes:
• End users are also called users or clients are people who use an information system
or the information it produces. They can be customers, salespersons, engineers etc
• IS SPECIALISTS are people who develop and operate information system. They
include system analysis, software developers, system operators and other
managerial, technical and clerical IS personnel.

2. Hardware
It includes all physical devices and materials used in information processing. Examples of
hardware in computer based information system are:
• Computer system which consists of central processing units containing
microprocessors and a variety of interconnected peripheral devices. Example:
handheld, laptop, midrange computer systems and large mainframe computer
systems.
• Computer peripherals which are devices such as a keyboard or electronic mouse for
input of data and commands a video screen or printer for output of information and
magnetic or optical disks for storage of data resources.

3. Software resources:
It includes all set of information processing instructions. It includes not only the set of
operating instructions called programs. Examples are
• System software such as an operating system program which controls and supports
the operations of computer system.
• Application software which are programs that direct processing for a particular use
of computers by end users. Example sales analysis program, a payroll program and a
word processing system.

16
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

4. Data resources:
Data resources is the raw material of information systems and are typically organised,
stored and accessed by a variety of data resources management technologies into:
• Database that hold processed and organised data.
• Knowledge bases the hold knowledge in variety of forms such as facts, rules, and
case.

5. Network resources:
Telecommunications technologies and networks like the internet, intranets and extranets.
The concept of network resources emphasizes that communications technologies and
networks are a fundamentals resource component of all information systems. Network
resources include:
• Communications media is includes twisted pairs wire, coaxial and fiber optic cables
and microwave, cellular and satellite wireless technologies.
• Network infrastructure this generic category emphasizes that many hardware,
software and data technologies are needed to support the operation and use of a
communication networks.

6. Business Procedures:
Business processes are series of steps performed by a group of stakeholders to complete a
task. Different business units are required to meet a set of objectives and complete projects
that contribute to the progress of the organization. For example, Human Resources is in
charge of hiring qualified individuals that match specific roles in the
organization. Procedures put in place on how to record, store and analyze data.

Information Systems Manager

A manager is a person assigned to lead a team or an organization towards achieving its
objectives. A manager applies specialized knowledge, skills, tools, and technique in order to
meet these systems’ objectives. He/she heads up a team and has the authority and
responsibility for meeting objectives by applying management functions.
Information systems managers lead teams of IT professionals to maintain an organization's
computer systems and technology needs. An information systems manager is an IT
professional who oversees the IT department within an organization. They work closely with
their team to troubleshoot IT problems, administer computer system updates as well as
install hardware and software for different departments.

Responsibilities of anInformation Systems Manager

Information systems managers have a variety of job responsibilities as leaders and IT
professionals. The responsibilities of an IS manager may include the following:

17
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

1. Managing IT department budget and prioritizing funds based on primary department

goals
2. Hiring and training IT professionals, such as support specialists, network engineers, IT
analysts and technicians, to work as members of the IT department
3. Monitoring the productivity and performance levels of the IS in the organization.
4. Researching new business technologies and IT software to strengthen the organization's
computer systems
repair and installation requests among IT employees
5. Monitoring inventory of available hardware devices or computer accessories to assess
purchasing needs
6. Creating long-term schedules to determine when to update company computer systems
and cybersecurity measures
7. Maintaining efficient relationships with other department heads to determine their
technology needs
8. Creating surveys to gauge company employee IT needs and questions
9. Drafting informational documents to help company employees troubleshoot standard
computer problems and navigate new programs
10. Meeting with IT directors and other upper-management staff to propose ideas and relay
information to the IT department
11. Assisting IT employees with complex installations or repairs
12. Implementing new software programs and computer technologies that support
organizational goals and objectives

Characteristics of an Information Systems Manager

There are several technical and interpersonal skills that are required to perform this job
well. Here are some examples of skills that information systems managers should possess:
1. Leadership
It refers to an individual's ability to manage a group of people and guide them in their
activities. As an information systems manager, you’ll need to demonstrate excellent
leadership to uphold IT standards, encourage employee productivity and maintain a positive
working environment. However, you’ll also need to be able to provide a leadership role to
other departments when helping them assess their technology needs.
2. Negotiation tactics
As an information systems manager, you’ll need to be able to negotiate with technology
wholesalers to establish price points for computer hardware. Being able to negotiate is also
important when you want to advocate for new computer hardware or software that could
benefit the company.
3. Problem solving
Problem solving is the process by which individuals identify problems and develop solutions.
As an information systems manager, you have to problem solve in a variety of different

18
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

situations. This includes problem solving to fix budgeting concerns, enhance productivity or
troubleshoot computer system errors on the company level.
4. Interpersonal communication
It refers to an individual's ability to adjust the language they use depending on the person
they’re speaking with. Information systems managers need interpersonal communication
skills as they communicate with IT department employees, business partners, upper
management professionals and other company departments on a daily basis. They also have
to explain IT terminology and procedures to individuals with little-to-no IT experience.
5. Written communication
It is the ability to convey clear and concise thoughts in writing. In an information systems
management role, you may have to send out department memos and company-wide
reports to detail systems updates and recent issues. You may also have to write instruction
manuals to help non-IT personnel understand how to use computer systems properly.
6. Public speaking
Information systems managers host department meetings and give presentations to other
departments and upper-management personnel. For this reason, it's beneficial if you know
how to speak in front of an audience and hold their attention.
7. Task delegation
As an information systems manager, you focus on department operations on a broad level.
Therefore, it's important that you know how to delegate tasks among your employees, as it
allows you to monitor performance, budgeting and other essential department activities.
8. Systems management
Systems management refers to an individual's ability to use IT hardware and software to
help businesses achieve goals and objectives. Including this skill on your information
systems manager resume shows employers that you understand the connection between
technology and business.
9. Hardware and software installation
Being able to install hardware and software as an information systems manager ensures you
can train new employees. It also helps ensure that you can partake in complex hardware
and software installations when necessary. This skill shows employers that you can select
and install the right equipment to support their computer systems.
10. IT project management
In your leadership role as an information systems manager, you may have to lead IT projects
and other initiatives to improve your employer's computer systems. IT project management
skills highlight your ability to lead IT projects and oversee multiple tasks at once.

19
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Categories of Information Systems

Three main categories of information systems serve different organizational levels:

operational-level systems, management-level systems, and strategic-level systems.
1. Operational-level Systems
They support operational managers by keeping track of the elementary activities and
transactions of the organization, such as sales, receipts, cash deposits, payroll, credit
decisions, and the flow of materials in a factory. The principal purpose of systems at this
level is to answer routine questions and to track the flow of transactions through the
organization. How many products are in inventory? What happened to Mr. Williams’s
payment? To answer these kinds of questions, information generally must be easily
available, current, and accurate. Examples of operational-level systems include a system to
record bank deposits from automatic teller machines or one that tracks the number of
hours worked each day by employees on a factory floor.

2. Management-level Systems
They serve the monitoring, controlling, decision-making, and administrative activities of
middle managers. The principal question addressed by such systems is this: Are things
working well? Management-level systems typically provide periodic reports rather than
instant information on operations. An example is a relocation control system that reports on
the total moving, house-hunting, and home financing costs for employees in all company
divisions, noting wherever actual costs exceed budgets.

20
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Some management-level systems support non-routine decision making. They tend to focus
on less-structured decisions for which information requirements are not always clear. These
systems often answer “what-if” questions: What would be the impact on production
schedules if we were to double sales in the month of December? What would happen to our
return on investment if a factory schedule were delayed for six months? Answers to these
questions frequently require new data from outside the organization, as well as data from
inside that cannot be easily drawn from existing operational-level systems.

3. Strategic-level Systems
They help senior management tackle and address strategic issues and long-term trends,
both in the firm and in the external environment. Their principal concern is matching
changes in the external environment with existing organizational capability. What will
employment levels be in five years? What are the long-term industry cost trends, and where
does our firm fit in? What products should we be making in five years?

Information systems also serve the major business functions, such as sales and marketing,
manufacturing and production, finance and accounting, and human resources. A typical
organization has operational-, management-, and strategic-level systems for each functional
area. For example, the sales function generally has a sales system on the operational level to
record daily sales figures and to process orders. A management-level system tracks monthly
sales figures by sales territory and reports on territories where sales exceed or fall below
anticipated levels. A system to forecast sales trends over a five-year period serves the
strategic level. We first describe the specific categories of systems serving each
organizational level and their value to the organization.

21
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Types of Information System

This category of information system depends mainly on the computer for handling business
application. System analysis develops different types of information system to meet variety
of business needs. There is class of system known as collectively as computer based
information system. They are categorized in the following 6 classes:

1. Transaction Processing System (TPS)

It is also referred to as data processing systemthat processes transactions and produces
reports. It performs the essential role of collecting and processing the daily transactions of
the organization and represents the automation of the fundamental, routine processing
used to support business operations.They serve at operational (low level) levels of the
organization and does not provide any information to the user to his/her decision-making.
Examples of transactions include purchase payroll, reservation, invoices, payments,
shipping, registrations, orders and sales.

2. Management Information System (MIS)

22
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

MIS is an information system, which processes data and converts it into information. It is
defined as an integrated system of man and machine for providing the information to
support the operations, the management and the decision making function in an
organization.A management information system uses TPS for its data inputs. The
information generated by the information system may be used for control of operations,
strategic and long-range planning. Short-range planning, management control, and other
managerial problem solving. It encompasses processing in support of a wide range of
organizational functions & management processes. MIS is capable of providing analysis,
planning & decision making support. The functional areas of a business may be marketing,
production, human resource, finance and accounting.

3. Decision Support System (DSS)

A decision support system (DSS) is an information system application that assists decision-
making. It is an integrated set of computer tools allowing a decision maker to interact
directly with computer to retrieve information useful in making semi structured and
unstructured decisions.DSS tends to be used in planning, analyzing alternatives, and trial
and error search for solution. The elements of the decision support system include a
database, model base & software. The main application areas of DSS are Production, finance
and marketing.
DSS can be differentiated from MIS on the basis of processing the information. MIS
processes data to convert it into information. DSS processes information to support the
decision making process of a manager.

4. Executive Support System (ESS)

Executive Support System (ESS) is an extension of the management information system,
which is a special kind of DSS; An ESS is specially tailored for the use of chief executive of an
organization to support his decision-making. It includes various types of decision-making but
it is more specific and person oriented.

5. Office Automation Systems (OAS)

Office automation refers to the application of computes and communication technology to
office functions. Office systems are applications designed to improve workflow and
communication among workers regardless of their physical locations. Office automation
systems are meant to improve the productivity of managers at various levels of
management of providing secretarial assistance and better communication facilities.
Office activities may be grouped under two classes, namely:
i) Activities performed by clerical personnel (clerks, secretaries, typist, etc.,). The activities
include typing, mailing, scheduling of meetings and conferences, calendar keeping, and
retrieving documents.
ii) Activities performed by the executives (managers, engineers or other professionals like
economist, researches etc.) the activities involved includes conferencing, production of
information (messages, memos, reports, etc.) and controlling performance.

23
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

6. Expert Systems (ES)

These systems are one of the main types of knowledge-based information systems. It is a
programmed decision-making information system that captures and reproduces the
knowledge and expertise of experts and then simulates the thinking or actions of that
expert to help users with less expertise. It is an extension of the decision support system.
These systems are implemented with Artificial Intelligence (AI); computer-based technology
that has the ability to behave like humans, learn languages and emulate human expertise
and decision-making., and are advanced information systems. A business expert system is a
knowledge based information system that uses its knowledge about a specific, complex
application area to act as an expert. The main components of an expert system are:
a. Knowledge Base
b. Interface Engine

24
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

MIS - Introduction
To the managers, Management Information System is an implementation of the
organizational systems and procedures. To a programmer it is nothing but file structures
and file processing. However, it involves much more complexity.
The three components of MIS provide a more complete and focused definition,
where System suggests integration and holistic view, Information stands for processed
data, and Management is the ultimate user, the decision makers; where the top
management handles planning; the middle management concentrates on controlling; and
the lower management is concerned with actual administration.

Definition
A Management Information System (MIS) is an information system that collects,
evaluates, analyzes, and processes an organization's data to produce meaningful and useful
information based on which the management can take right decisions to ensure future
growth of the organization.
A Management Information System (MIS) is a planned system of collecting, storing, and
disseminating data in the form of information needed to carry out the functions of
management.

The definition of MIS covers the features given below.

1. The MIS is defined as a system which provides information support for decision making in
the organization.
2. The MIS is defined as an integrated system of man and machine for providing the
information to support the operations, the management and the decision making function
in the organization.
3. The MIS is defined as a system based on the database of the organization evolved for the
purpose of providing information to the people in the organization.
4. The MIS is defined as a Computer based Information System.

Components of MIS
The diagram below shows the components of an MIS.
1. Hardware: Connects with the core processes and captures and stores all required
relevant data
2. Software: Processes the data, converts them into usable information and reports
3. People: At different levels of authorization to view and modify records or information to
represent sensible and interpretable information.
4. Data: Is required by the management to generate information and reports.
5. Business Procedures: Business processes are series of steps performed to complete a
task.

25
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

6. Information: It is the output of the processed data.

7. Database: It is a storage for keeping the information in an MIS
8. Network resources: Telecommunications technologies and networks like the internet,
intranets and extranets that help to disseminate information.
9. Reports: are the various information based on some criteria generated for the users.
10. Decision Making: Reports generated are used for making decisions by the users.

Objectives of MIS
The goals of an MIS are to implement the organizational structure and dynamics of the
enterprise for the purpose of managing the organization in a better way and capturing the
potential of the information system for competitive advantage.
Following are the basic objectives of an MIS −
1. Capturing Data − Capturing contextual data, or operational information that will
contribute in decision making from various internal and external sources of
organization. Data capturing may be manual or through computer terminals.
2. Processing Data − The captured data is processed into information needed for
planning, organizing, coordinating, directing and controlling functionalities at
strategic, tactical and operational level. Processing data means −
• making calculations with the data
• sorting data
• classifying data and
• summarizing data
3. Producing Information – an MIS produces information from the data captured and
processed. The information is presented in a meaningful way that makes sense to
the user.
4. Information Storage − MIS stores the processed or unprocessed data for future use.
If any information is not immediately required, it is saved as an organization record,
for later use.
5. Information Retrieval − MIS should be able to retrieve this information from the
storage as and when required by various users.

26
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

6. Information Dissemination − Information or the finished product of the MIS should

be circulated to its users periodically using the organizational network.
7. Decision Making – Decisions can be made with the information processed with MIS.
An MIS produces reports for Executives to make strategic decisions.

Functions of an MIS
1. Process transactions: e.g. making a purchase or a sale of a product.
2. Maintain master files: e.g. sales records, staff records and other records.
3. Produce reports& enquiries:for e.g. specific or ad-hoc reports, and make enquiries.
4. Provideaccess and support: e.g. provides access to selective information to different
levels of authoritydesigned for planning, analysis and decision making.
5. Improve decision making: MIS helps management by providing background information
on a variety of issues and helps to improve the decision-making quality of management.
In any organization, decisions are made on the basis of relevant information which can
be retrieved from the MIS. The fast and accurate information supplied by MIS is
leveraged by the managers to take quicker and better decisions thereby improving the
decision-making quality and adding to the bottom line of the company.
6. Improve efficiency: MIS helps managers to conduct their tasks with greater ease and
with better efficiency. This reflects in better productivity for the company.
7. Coordination among the department:MIS satisfy multiple need of an organization
across the different functional department. It helps provides managers with better
connectivity with the rest of the organization.
8. Finding out problems:As we know that MIS provides relevant information about every
aspect of activities. Hence, if any mistake is made by the management then MIS,
information will help in finding out the solution to that problem.
9. Comparison of business performance: An MIS store all past data and information in its
Database. That why the management information system is very useful to compare
business organization performance.
10. Strategies for an organization:Today each business is running in a competitive market.
An MIS supports the organization to evolve appropriate strategies for the business to
assent in a competitive environment.

Characteristics of MIS
Following are the characteristics of an MIS −
• It should be based on a long-term planning.
• It should provide a holistic view of the dynamics and the structure of the
organization.
• It should work as a complete and comprehensive system covering all
interconnecting sub-systems within the organization.

27
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

• It should be planned in a top-down way, as the decision makers or the management

should actively take part and provide clear direction at the development stage of
the MIS.
• It should be based on need of strategic, operational and tactical information of
managers of an organization.
• It should also take care of exceptional situations by reporting such situations.
• It should be able to make forecasts and estimates, and generate advanced
information, thus providing a competitive advantage. Decision makers can take
actions on the basis of such predictions.
• It should create linkage between all sub-systems within the organization, so that the
decision makers can take the right decision based on an integrated view.
• It should allow easy flow of information through various sub-systems, thus avoiding
redundancy and duplicity of data. It should simplify the operations with as much
practicability as possible.
• Although the MIS is an integrated, complete system, it should be made in such a
flexible way that it could be easily split into smaller sub-systems as and when
required.
• A central database is the backbone of a well-built MIS.

Advantage of MIS
A good management 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. There are
many advantages of MIS which are utilised by manager to achieve organization goal.The
following are some of the benefits of a good MIS.
• Increased customer satisfaction
• Improved quantity and quality of information
• Improved quality and quantity management decisions
• Improved responsiveness number of the competitor’s condition
• Improved operational efficiency and flexibility
• Improved quality of internal and external communications
• Improved quality of planning
• Improved quality control and supervision

Challenges of MIS
• High Cost: Development of new computerized based information system is a problem
for the organization due to the cost factor and it creates problems because with the
change of time there is need of up-to-date of the information system.
• Training of Employee:Employees should have the capacity of learning of the information
system with the changing competitive and business environment; otherwise it will be
difficult for the organization to stay in the market.

28
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

• Maintenance Cost:Sometimes a problem arises due to server crash and website crash.
Sometimes it leads to the loss of information. So, maintenance cost is needed to tackle
the above problem.

Strategic Business Objectives of MIS

MIS is an information system that provides information in the form of standardized reports
and displays for the managers. MIS is a broad class of information systems designed to
provide information needed for effective decision making. Data and information created
from an MIS and the reports generated thereon are used to provide accurate, timely and
relevant information needed for effective decision making by managers. The following are
the objectives of an MIS in Business.

1. Operational Excellence
This relates to achieving excellence in business in operations to achieve higher profitability.
For example, a consumer goods manufacturer may decide upon using a wide distribution
network to get maximum reach to the customers and exposure.
A manufacturing company may pursue a strategy of aggressive marketing and mass
production.

2. New Products, Services, and Business Models

This is part of growth strategy of an organization. A new product or a new service
introduced, with a very fast growth potential provides a mean for steady growth business
turnover.
With the help of information technology, a company might even opt for an entirely new
business model, which will allow it to establish, consolidate and maintain a leadership in
the existing market as well as provide a competitive edge in the industry.
For example, a company selling low priced detergent may opt for producing higher range
detergents for washing machines, washing soaps, and bath soaps.
It involves market strategies also that includes planning for distribution, advertisement,
market research and other related aspects.

3. Customer and Supplier Intimacy

When a Business really knows their Customers and serves them well, 'the way they want to
be served', the Customers generally respond by returning and buying more from the firm.
It raises revenues and profits.
Likewise with Suppliers, the more a Business engages its Suppliers, the better the Suppliers
can provide vital information. This will lower the cost and bring huge improvements in the
supply-chain management.

4. Improved Decision Making

29
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

A very important pre-requisite of strategic planning is to provide the right information at

the right time to the right person, for making an informed decision.
Well planned Information Systems and technologies make it possible for the decision
makers to use real-time data from the marketplace when making informed decisions.

5. Competitive Advantage and Survival

The following list illustrates some of the strategic planning that provides competitive
advantage and survival −
• Planning for an overall growth for the company.
• Thorough market research to understand the market dynamics involving demand-
supply.
• Various policies that will dominate the course and movement of business.
• Expansion and diversification to conquer new markets.
• Choosing a perfect product strategy that involves either expanding a family of
products or an associated product.
• Strategies for choosing the market, distribution, pricing, advertising, packing, and
other market-oriented strategies.
• Strategies driven by industry-level changes or Government regulations.
• Strategies for change management.

MIS - System Development Life Cycle

Like any other product development, system development requires careful analysis and
design before implementation. System development generally has the following phases:
1. Planning and Requirement Analysis
The project planning part and requirement analysis part involves understanding the goals,
processes and the constraints of the system for which the information system is being
designed.
The planning involves the following sub-processes:
• Understandingand reviewing the project needs
• Creating the system development strategy
• Preparing the budget
• Selecting and allocating the resources
• Identifying the project development team
• Determining the optimum architecture of IS.

Requirement analysis has the following processes:

• Conducting preliminary investigation
• Performing detailed analysis activities
• Studying current system or stage of information system in the organization
• Determining user requirements

30
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

• Recommending a solution

2. Defining Requirements
The requirement analysis stage generally completes by creation of a 'Feasibility Report'.
This helps to justify why the system created. This report contains:
• A preamble
• A goal statement
• A description of the present system
• Proposed alternatives in details
The feasibility report and the proposed alternatives help in preparing the costs and
benefits study. Based on the costs and benefits, and considering all problems that may be
encountered due to human, organizational or technological bottlenecks, the best
alternative is chosen by the end-users of the system.

3. Developing the System Design&Architecture

System design specifies how the system will accomplish this objective. System design
consists of both logical design and physical design activity, which produces 'system
specification' satisfying system requirements developed in the system analysis stage.
In this stage, the following documents are prepared:
• Data collection and software methodology
• System design
• Detailed input specification
• Hardware/software plan
• Database design

4. Building or Developing the System

The most creative and challenging phase of the system life cycle is system design, which
refers to the technical specifications that will be applied in implementing the candidate
system. It also includes the construction of programmers and program testing. It has the
following stages:
• Acquiring hardware and software, if necessary
• Developing system processes
• Coding and testing each module
The final report prior to implementation phase includes procedural flowcharts, record
layout, report layout and plan for implementing the candidate system. Information on
personnel, money, hardware, facility and their estimated cost must also be available. At
this point projected cost must be close to actual cost of implementation.

31
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

5. Testing the System

System testing requires a test plan that consists of several key activities and steps for
programs, strings, system, and user acceptance testing. The system performance criteria
deals with turnaround time, backup, file protection and the human factors.
Testing process focuses on both −
• The internal logic of the system/software, ensuring that all statements have been
tested;
• The external functions, by conducting tests to find errors and ensuring that the
defined input will actually produce the required results.
In some cases, a 'parallel run' of the new system is performed, where both the current and
the proposed system are run in parallel for a specified time period and the current system
is used to validate the proposed system.

6. Deployment of the System

At this stage, system is put into production to be used by the end users. Sometime, we put
system into a Beta stage where users' feedback is received and based on the feedback, the
system is corrected or improved before a final release or official release of the system.

7. System Evaluation and Maintenance

Maintenance is necessary to eliminate the errors in the working system during its working
life and to tune the system to any variation in its working environment. Often small system
deficiencies are found, as system is brought into operation and changes are made to
remove them. System planner must always plan for resources availability to carry on these
maintenance functions.

Factors for Success and Failure

MIS development projects are high-risk, high-return projects. Following could be stated as
critical factors for success and failure in MIS development −
• It should cater to a specific, well-perceived business.
• The top management should be completely convinced, able and willing to such a
system. Ideally there should be a patron or a sponsor for the system in the top
management.
• All users including managers and other employees should be made an integral part of
the development, implementation, and use of the system.
• There should be an operational prototype of the system released as soon as possible, to
create interest among the users.
• There should be good support staff with necessary technical, business, and
interpersonal skills.

32
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

• The system should be simple, easy to understand without adding much complexity. It is
a best practice, not to add up an entity unless there is both a use and user for it.
• It should be easy to use and navigate with high response time.
• The implementation process should follow a definite goal and time.
• All the users including the top management should be given proper training, so that
they have a good knowledge of the content and function of the system, and can use it
fully for various managerial activities such as reporting, budgeting, controlling, planning,
monitoring, etc.
• It must produce useful outputs to be used by all managers.
• The system should be well integrated into the management processes of planning,
decision-making, and monitoring.

33
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

MIS - Database Management System (DBMS)

What is a Database?
A Database is a collection of information that's related to a particular subject or purpose,
such as tracking customer orders or maintaining a music collection. If your database isn't
stored on a computer, or only parts of it are, you may be tracking information from a variety
of sources that you have to coordinate and organize yourself.
In a database, however, you only have to update that information in one place — the
supplier's phone number is automatically updated wherever you use it in the database.
Indeed a database is a collection of logically related data files which is integrated and
organized so as to provide s single comprehensive file system. Database system design is
concerned with the problem of organizing the database, accessing data on it, using it,
updating it and providing output (reports or responses to file interrogations) to a variety of
users; e. g. a students’ file, Marks file, Payment’s file. The Marks’ file will comprise records
of marks scored by the students.

Elements of a Database
1. Database is a group of related files
2. File is a collection of logically related records; e.g students file, stock file.
3. Record is a collection of logically related data fields; e. g Data relating to students in
students file. In a database table records are usually in rows.
4. Field is a unit of data within a record that stores valuese.g student’s number, Name,
Age. In a database table fields are usually in columns.

34
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Database Management System (DBMS) refers to software that ‘builds, manages and
provides access to a database. Examples are Microsoft Access, FoxPro, Oracle, Firebase etc.

Managing a Database
Managing a Database primarily involves the following tasks:
1. Add new data to the database
2. Sort the database into some meaningful order
3. Search the database for types of information
4. Print data from our database onto formatted reports
5. Edit data on the database
6. Delete data from the database.

Advantages of Database
• Reduces the amount of data duplication which occurs using conventional file
structures.
• Provides fast and flexible access to information.
• Improves consistency of data stored.
• Provides both data and program independence.
• Encourages integration of functional areas in an organisation.
• Avoids duplicating input data to update multiple functionally independent files
holding the same data.
• Reduces processing for retrospective changes.

Disadvantages of Database
• Takes a long time to design and implement.
• Cost more than conventional systems.
• Require high calibre, experienced and specialised personnel.
• Require expense hardware and software.
• Recovery is more difficult in case of damage.

Life Cycle Stages of a Database:

1. Logical Design: Consider and define the components required from the system.
2. Database Creation: Setting tables, relationships, forms, query and reports.
3. Data Entry: Manual data inputs / import.
4. Data Maintenance: Integrity of the data / remove obsolete data.
5. Information Retrieval: If there is a need to restrict users of their available resources.

35
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Types of Database Models

1. Hierarchical database: a data model in which the data is organised into a tree-like
structure. The data is stored as records which are connected to one another through
links.
2. Relational Database: A relational database is a powerful tool which can help you store
and manage large amounts of information. Information is presented in tables with rows
and columns. A table is referred to as a relation in the sense that it is a collection of
objects of the same type (rows). Databases enable you to organize and reorganize
information, quickly and flexibly retrieve information, and print quite a variety of
reports.

The four main elements of a relational database include

· TABLES for storing data
· FORMS for entering and viewing data on the screen
· QUERIES for extracting specific information from the data (asking questions)
· REPORTS for printing query results

3. Object-Oriented Database: information is represented in the form of objects as used in

object-oriented programming.

Relationships
You need a relationship between the tables and those relationships need to be defined.
Once you get the relationships built, you can create queries, and forms and reports from
several tables at once. It is said that a "relationship works by matching data in key fields,
usually a field with the same name in both tables. In most cases, these matching fields are
the primary key from one table, which provides a unique identifier for each record, and a
foreign key in the other table".

Types of Relationships
1. One to Many Relationship
A one-to-many relationship is the most common type of relationship. In a one-to many
relationship, a record in Table A can have many matching records in Table B, but a record in
Table B has only one matching record in Table A. For example, one publisher can publish
many journals, but it's highly unlikely that a journal would have more than one publisher.

2. One to One Relationship

In a one-to-one relationship, each record in one table can have only one matching record in
a second table, and each record in the second table can have only one matching record in
the first table. This type of relationship is fairly uncommon, because most information
related in this way would be in one table.

36
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

3. Many to Many Relationship

In a many-to-many relationship, a record in one table (table 1) can have many matching
records in a second table (table 2), and a record in table 2 can have many matching records
in table 1. This type of relationship is only possible by defining a third table (called a junction
table) whose primary key consists of two fields – the foreign keys from both Tables 1 and 2.
A many-to-many relationship is really two one-to-many relationships with a third table.

SQL (Structured Query Language)

SQL (Structured Query Language) is a special-purpose programming language designed for
managing data held in a relational database management system. The most common
operation in SQL is the query which makes use of the declarative SELECT statement.
Queries are used to describe desired data, leaving the database management system
(DBMS) to carry out planning, optimising, and performing the physical operations necessary
to produce that result as it chooses.

37
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

MIS - Managerial Decision-Making

Concept of Decision-Making
Decision-making is a rational process that results in the selection of a course of action
among several alternative scenarios.
Decision-making is a daily activity for any human being. There is no exception about that.
When it comes to business organizations, decision-making is a habit and a process as well.
Effective and successful decisions result in profits, while unsuccessful ones cause losses.
Therefore, corporate decision-making is the most critical process in any organization.
In a decision-making process, we choose one course of action from a few possible
alternatives. In the process of decision-making, we may use many tools, techniques, and
perceptions.
In addition, we may make our own private decisions or may prefer a collective decision.
Usually, decision-making is hard. Majority of corporate decisions involve some level of
dissatisfaction or conflict with another party.
Let's have a look at the decision-making process in detail.

Decision-Making Process
Following are the important steps of the decision-making process. Each step may be
supported by different tools and techniques.

Step 1 − Identification of the Purpose of the Decision

In this step, the problem is thoroughly analyzed. There are a couple of questions one
should ask when it comes to identifying the purpose of the decision.
• What exactly is the problem?
• Why the problem should be solved?
• Who are the affected parties of the problem?
• Does the problem have a deadline or a specific time-line?

Step 2 − Information Gathering

A problem of an organization will have many stakeholders. In addition, there can be dozens
of factors involved and affected by the problem.
In the process of solving the problem, you will have to gather as much as information
related to the factors and stakeholders involved in the problem. For the process of
information gathering, tools such as 'Check Sheets' can be effectively used.

Step 3 − Principles for Judging the Alternatives

In this step, the baseline criteria for judging the alternatives should be set up. When it
comes to defining the criteria, organizational goals as well as the corporate culture should
be taken into consideration.

38
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

As an example, profit is one of the main concerns in every decision making process.
Companies usually do not make decisions that reduce profits, unless it is an exceptional
case. Likewise, baseline principles should be identified related to the problem in hand.

Step 4 − Brainstorm and Analyze the Choices

For this step, brainstorming to list down all the ideas is the best option. Before the idea
generation step, it is vital to understand the causes of the problem and prioritization of
causes.
For this, you can make use of Cause-and-Effect diagrams and Pareto Chart tool. Cause-and-
Effect diagram helps you to identify all possible causes of the problem and Pareto chart
helps you to prioritize and identify the causes with the highest effect.
Then, you can move on generating all possible solutions (alternatives) for the problem in
hand.

Step 5 − Evaluation of Alternatives

Use your judgment principles and decision-making criteria to evaluate each alternative. In
this step, experience and effectiveness of the judgment principles come into play. You need
to compare each alternative for their positives and negatives.

Step 6 − Select the Best Alternative

Once you go through from Step 1 to Step 5, this step is easy. In addition, the selection of
the best alternative is an informed decision since you have already followed a methodology
to derive and select the best alternative.

Step 7 − Execute the decision

Convert your decision into a plan or a sequence of activities. Execute your plan by yourself
or with the help of subordinates.

Step 8 − Evaluate the Results

Evaluate the outcome of your decision. See whether there is anything you should learn and
then correct in future decision making. This is one of the best practices that will improve
your decision-making skills.

Categories of Decision-Making Models

There are two basic models in decision-making −
• Rational models
• Normative model
The Rational Models are based on intellectual judgments and help in selecting the most
logical and sensible alternative. Examples of such models include - decision matrix analysis,
Pugh matrix, SWOT analysis, Pareto analysis and decision trees, selection matrix, etc.
A rational decision making model takes the following steps −

39
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

• Identifying the problem,

• Identifying the important criteria for the process and the result,
• Considering all possible solutions,
• Calculating the consequences of all solutions and comparing the probability of
satisfying the criteria,
• Selecting the best option.
The Normative Model of decision-making considers constraints that may arise in making
decisions, such as time, complexity, uncertainty, and inadequacy of resources.
According to this model, decision-making is characterized by −
• Limited information processing - A person can manage only a limited amount of
information.
• Judgmental heuristics - A person may use shortcuts to simplify the decision making
process.
• Satisfying - A person may choose a solution that is just "good enough".

Types of Decision-Making Model

1. Dynamic Decision-Making
Dynamic decision-making (DDM) is synergetic decision-making involving interdependent
systems, in an environment that changes over time either due to the previous actions of
the decision-maker or due to events that are outside of the control of the decision-maker.
These decision-makings are more complex and real-time.
Dynamic decision-making involves observing how people used their experience to control
the system's dynamics and noting down the best decisions taken thereon.

2. Sensitivity Analysis
Sensitivity analysis is a technique used for distributing the uncertainty in the output of a
mathematical model or a system to different sources of uncertainty in its inputs.
From business decision perspective, the sensitivity analysis helps an analyst to identify cost
drivers as well as other quantities to make an informed decision. If a particular quantity has
no bearing on a decision or prediction, then the conditions relating to quantity could be
eliminated, thus simplifying the decision making process.
Sensitivity analysis also helps in some other situations, like −
• Resource optimization
• Future data collections
• Identifying critical assumptions
• To optimize the tolerance of manufactured parts

3. Simulation Techniques
Simulation is a technique that imitates the operation of a real-world process or system over
time. Simulation techniques can be used to assist management decision making, where
analytical methods are either not available or cannot be applied.

40
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Some of the typical business problem areas where simulation techniques are used are −
• Inventory control
• Queuing problem
• Production planning

4. Heuristic Programming
Heuristic programming refers to a branch of artificial intelligence. It consists of programs
that are self-learning in nature.
However, these programs are not optimal in nature, as they are experience-based
techniques for problem solving.
Most basic heuristic programs would be based on pure 'trial-error' methods.
Heuristics take a 'guess' approach to problem solving, yielding a 'good enough' answer,
rather than finding a 'best possible' solution.

5. Group Decision-Making
In group decision-making, various individuals in a group take part in collaborative decision-
making.
Group Decision Support System (GDSS) is a decision support system that provides support
in decision making by a group of people. It facilitates the free flow and exchange of ideas
and information among the group members. Decisions are made with a higher degree of
consensus and agreement resulting in a dramatically higher likelihood of implementation.
Following are the available types of computer based GDSSs −
• Decision Network − This type helps the participants to communicate with each
other through a network or through a central database. Application software may
use commonly shared models to provide support.
• Decision Room − Participants are located at one place, i.e. the decision room
Thepurpose of this is to enhance participant's interactions and decision-making
within a fixed period of time using a facilitator.
• Teleconferencing − Groups are composed of members or sub groups that are
geographically dispersed; teleconferencing provides interactive connection
between two or more decision rooms. This interaction will involve transmission of
computerized and audio visual information.

41
NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

MIS - Decision Support System

Decision Support Systems (DSS) are interactive software-based systems intended to help
managers in decision-making by accessing large volumes of information generated from
various related information systems involved in organizational business processes, such as
office automation system, transaction processing system, etc.
DSS uses the summary information, exceptions, patterns, and trends using the analytical
models. A decision support system helps in decision-making but does not necessarily give a
decision itself. The decision makers compile useful information from raw data, documents,
personal knowledge, and/or business models to identify and solve problems and make
decisions.

Programmed and Non-programmed Decisions

There are two types of decisions - programmed and non-programmed decisions.
Programmed decisions are basically automated processes, general routine work, where −
• These decisions have been taken several times.
• These decisions follow some guidelines or rules.
For example, selecting a reorder level for inventories, is a programmed decision.

Non-programmed decisions occur in unusual and non-addressed situations, so −

• It would be a new decision.
• There will not be any rules to follow.
• These decisions are made based on the available information.
• These decisions are based on the manger's discretion, instinct, perception and
judgment.
For example, investing in a new technology is a non-programmed decision.
Decision support systems generally involve non-programmed decisions. Therefore, there
will be no exact report, content, or format for these systems. Reports are generated on the
fly.

Attributes of a DSS
• Adaptability and flexibility
• High level of Interactivity
• Ease of use
• Efficiency and effectiveness
• Complete control by decision-makers
• Ease of development
• Extendibility
• Support for modeling and analysis
• Support for data access
• Standalone, integrated, and Web-based

42
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

Characteristics of a DSS
• Support for decision-makers in semi-structured and unstructured problems.
• Support for managers at various managerial levels, ranging from top executive to
line managers.
• Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization
level.
• Support for interdependent or sequential decisions.
• Support for intelligence, design, choice, and implementation.
• Support for variety of decision processes and styles.
• DSSs are adaptive over time.

Benefits of DSS
• Improves efficiency and speed of decision-making activities.
• Increases the control, competitiveness and capability of futuristic decision-making of
the organization.
• Facilitates interpersonal communication.
• Encourages learning or training.
• Since it is mostly used in non-programmed decisions, it reveals new approaches and
sets up new evidences for an unusual decision.
• Helps automate managerial processes.

Components of a DSS
Following are the components of the Decision Support System −
• Database Management System (DBMS) − To solve a problem the necessary data
may come from internal or external database. In an organization, internal data are
generated by a system such as TPS and MIS. External data come from a variety of
sources such as newspapers, online data services, databases (financial, marketing,
human resources).
• Model Management System − It stores and accesses models that managers use to
make decisions. Such models are used for designing manufacturing facility,
analyzing the financial health of an organization, forecasting demand of a product
or service, etc.
Support Tools − Support tools like online help; pulls down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with
the system.

Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows −

43
NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

• Text Oriented DSS − It contains textually represented information that could have a
bearing on decision. It allows documents to be electronically created, revised and
viewed as needed.
• Database Oriented DSS − Database plays a major role here; it contains organized
and highly structured data.
• Spreadsheet Oriented DSS − 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.
• Solver Oriented DSS − It is based on a solver, which is an algorithm or procedure
written for performing certain calculations and particular program type.
• Rules Oriented DSS − It follows certain procedures adopted as rules.
• Rules Oriented DSS − 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.

Types of DSS
Following are some typical DSSs −
• Status Inquiry System − It helps in taking operational, management level, or middle
level management decisions, for example daily schedules of jobs to machines or
machines to operators.
• Data Analysis System − It needs comparative analysis and makes use of formula or
an algorithm, for example cash flow analysis, inventory analysis etc.
• Information Analysis System − In this system data is analyzed and the information
report is generated. For example, sales analysis, accounts receivable systems,
market analysis etc.
• Accounting System − It keeps track of accounting and finance related information,
for example, final account, accounts receivables, accounts payables, etc. that keep
track of the major aspects of the business.
• Model Based System − Simulation models or optimization models used for decision-
making are used infrequently and creates general guidelines for operation or
management.

44
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

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.

Why systems are vulnerable?

A system can be vulnerable, because:
• Accessibility of networks
• Hardware problems (breakdowns, configuration errors, damage from improper use
or crime)
• Software problems (programming errors, installation errors, unauthorized changes)
• Disasters
• Use of networks/computers outside of firm’s control
• Loss and theft of portable devices

What is Internet vulnerabilities?

Internet weaknesses
a. Network open to anyone

45
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

b. Size of Internet means abuses can have wide impact

c. Use of fixed Internet addresses with cable or DSL modems creates fixed targets hackers
d. Unencrypted VOIP
e. E-mail, P2P, IM
i. Interception
ii. Attachments with malicious software
iii. Transmitting trade secrets

What is Malware?
Malware is a malicious software that has an adverse on a system
a. Viruses: Rogue software program that attaches itself to other software programs or data
files in order to be executed

b. Worms: Independent computer programs that copy themselves from one computer to
other computers over a network.

c. Trojan horses: Software program that appears to be benign but then does something
other than expected.

d. SQL injection attacks: Hackers submit data to Web forms that exploits site’s
unprotected software and sends rogue SQL query to database.

e. Spyware: Small programs install themselves surreptitiously on computers to monitor

user Web surfing activity and serve up advertising.

f. Key loggers: Record every keystroke on computer to steal serial numbers, passwords,
launch Internet attacks.

Hackers and Computer Crime

Activities include: System intrusion, System damage, Cyber-vandalism (Intentional
disruption, defacement, destruction of Web site or corporate information system)
a. Spoofing:
- Misrepresenting oneself by using fake e-mail addresses or masquerading as
someone else.
- Redirecting Web link to address different from intended one, with site
masquerading as intended destination

b. Sniffer
- Eavesdropping program that monitors information traveling over network
- Enables hackers to steal proprietary information such as e-mail, company files,
etc.

46
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

c. Denial-of-service attacks (DoS)

- Flooding server with thousands of false requests to crash the network.

d. Distributed denial-of-service attacks (DDoS)

- – Use of numerous computers to launch a DoS

e. Botnets
- Collection of internet-connected devices infected by a common type of malware
that allow hackers to control them without the knowledge of the owner. They
are used to perform DDoS
- Networks of “zombie” PCs infiltrated by bot malware
- Worldwide, 6 - 24 million computers serve as zombie PCs in thousands of botnets

f. Identity theft
- Theft of personal Information (social security id, driver’s license or credit card
numbers) to impersonate someone else

g. Phishing
- Setting up fake Web sites or sending e-mail messages that look like legitimate
businesses to ask users for confidential personal data.

h. Evil twins
- Wireless networks that pretend to offer trustworthy Wi-Fi connections to the
Internet

i. Pharming
- Redirects users to a bogus Web page, even when individual types correct
Webpage address into his or her browser

j. Click fraud
- Occurs when individual or computer program fraudulently clicks on online ad
without any intention of learning more about the advertiser or making a
purchase

What is Internal threats: employees?

Internal threats: employees
a. Security threats often originate inside an organization
b. Inside knowledge
c. Sloppy security procedures
- User lack of knowledge

47
 NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

d. Social engineering:
- Tricking employees into revealing their passwords by pretending to be legitimate
members of the company in need of information

What is Software vulnerability?

Software vulnerability
a. Commercial software contains flaws that create security vulnerabilities
- Hidden bugs (program code defects): Zero defects cannot be achieved because
complete testing is not possible with large programs
- Flaws can open networks to intruders
b. Patches
- Vendors release small pieces of software to repair flaws
- However exploits often created faster than patches be released and
implemented

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.
• Honor 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 −

48
NDII COMPUTER SCIENCE MANAGEMENT INFORMATION SYSTEMS (COM224)

• 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, its 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.

49