INFORMATION MANAGEMENTUNIT I Data, Information, Intelligence, Information Technology, Information System, evolution, typesbased on functions and hierarchy, System development methodologies, Functional InformationSystems, DSS, EIS, KMS, GIS, International Information System.

Data:

Data is a collection of facts usually as the results of experiences,observation,experiments or process.Data is a plural of Datum.

Data may be in the form of image, figure, word.

Datum:

Datum is a single fact( word, image and figure)

Information :

When data is organized it becomes information. Information is derived from data and its useful in solving problems.

Eg: input -> Data->processed->output->information.

Knowledge :

When correct conclusion are derived the information it beings in intelligent and accounts to addition of knowledge.

Knowledge is knowing what works and how it works. Knowledge is gain frim experience.

Information System:

Information System can be any organized combination of people, hardware, software, communication networks and data resources that stores, retrives, transformation and dissemination information in an organization.

Need for Information System:

To support business process. In will support decision making. To support top management to get competitive advantage.

Information Technology:

Information Technology is the study development, design, the implementation support or management of computer based information system, particularly software application and computer hardware.

It deals with the use of computer and computer software to convert, store, product, process transmit and securely retrieve information.

COMPONENTS OF INFORMATION SYSTEM/FRAME WORK:

People (it resources includes end user and information system) Software (it includes of program and procedure ) Hardware ( it consists of machine and media) Communication network (it resources consists of communnicatin media and network

support) Data resources (it includes data and knowledge bases)

Data is transformed by information processing activity into a variety of information products for end users.

Information processing consists of the system activities of input, processing, output, storage & control.

processing data into

information

control fo system

performance

output of information production

storage of data resouces

input of data resources

Data resources (data base &knowledge )

Network resources (communication media & the

network support )

Hardware resources (machine & the media )

People resources (end user &specialist )

Software resources (program & procedures)

CLASSIFICATION OF INFORMATION SYSTEM BASED ON FUNCTION & HIERARCHY:

ACCOUNTING INFORMATION SYSTEM FINANCE INFORMATION SYSTEM MARKETING INFORMATION SYSTEM HUMAN RESOUCES INFORMATION SYSTEM PRODUCTION& OPERATION INFORMATION SYSTEM

TRANSACTION PROCESSING SYSTEM (TPS) MANAGEMENT INFORMATION SYSTEM(MIS) DECISION SUPPORT SYSTEM(DSS) EXECUTIVE INFORMATION SYSTEM(EIS)

INFORMATION ARCHITECTURE

BASED ON HIERARCHY BASED ON FUNCTION USERS

EIS TOP LEVEL EXECUTIVES

DSS SENIOR LEVEL MANAGERS

MIS MIDDLE LEVEL MANAGER

TPS

LOWER LEVEL WORKERS

BASED ON FUNCTION (DIFFERENT FUNTIONAL AREA MANAGEMENT)

BASED ON HIERARCHY (LEVEL OF USERS OF INFORMATION SYSTEM)

HR ISMARKETING IS

ACCOUNTING IS

FINANCE IS

PRODUCTION

IS

PRODUCTION & OPERATION MANAGEMENT

STRATEGY

FUNCTIONAL INFORMATION SYSTEM:

1. Every business has different function carry out such functional area has its own tactical decision & its own model.

2. Information system will support the tactical decision making with access to data, evaluation of models & presentation of results.

BUSINESS BUSINESSBUSINESSBUSINESS

FUNCTION FUNCTIONFUNCTIONFUNCTIONFUNCTION

Accounting Information System

Accounting information system is a system of records that the business keeps to maintain its accounting system.

Type of Accounting Information System:

General ledger system: It used to produce financial statements (profit&loss,balance sheet, cash flow, fund flow)

Order processing: It used to capture & process customer order.

Accounts payable system :It used to maintain data related to amount due to creditors(suppliers)

Accounts receivable system:It used to maintain data related amount due from debtors(customer)

Payroll system:Employee salary , wages..

Inventory control system:Changes made in inventory (rawmaterials, work in progress, finished goods)

PRODUCTION OPERATION ACCOUTING FINANCE HUMAN RESOURCE

MARKETING

PRODUCTION OPERATION INFORMATION SYSTEM

BUSINESS FUNCTION ACCOUTING IS FINANCE IS HUMAN RESOURCE IS

MARKETING IS

FINANCIAL INFORMATION SYSTEM

Information system that supports financial managers in financing a business & allocation & control of financial resources.

TYPES OF FINANCIAL INFORMATION SYSTEM

Cash management:Cash position of a firm (cash receipts, cash payments)

Investment management:Position of securities & other investments

Capital budgeting:Related to capital expenditure, selection of projects.

Financial planning:Relates to forecasting the financial performance & forecasting financial needs.

PRODUCTION & OPERATION INFORMATION SYSTEM (MANUFACTURING INFORMATION SYSTEM)

Manufacturing information system is a complete set of tools for managing the flow of production in the enterprise.

This information system is designed to provide tools for both it operations personnel who would deliver services to anyone in the planet.

TYPES OF MANUFACTURING INFORMATION SYSTEM

Automation system:Relates to the automation involved in production

Logistics system:Relating to delivery of products at the right time.

Material resource planning system (MRP):Related to resource required for production material required for the planned production is forecasted.

Manufacturing resource planning (MRP II ):Relates to all the resource required ( machine, material, men, money)

Agile manufacturing environment:Related to the dynamic environment which may impact the production & operation.Required changes in plants must be adopted.

Enterprise resource planning:

Enterprise resource planning integrates the entire operation in the enterprise & provides quick access & update information.

MARKETING INFORMATION SYSTEM:

Marketing information system provides information technology support to marketing managers regarding the various components of the marketing function.

TYPES OF MARKETING INFORMATION SYSTEM:

Interactive marketing system:Provides information related to the various marketing mix companents. (products, price, place, promotion, positioning)

Allow to take decision based on series of question asked & reply given by the decision maker.

Sales force automation:Sales force is being offered with notebook computer & web browsers & sales record data. It helps them to capture & analyze data such automotive systems help to manage current customer & potential customer.

Customer relation management:1. Managing customer relation the CRIS2. CRM aims to provide organization & its employees all details about customer.3. It also provides customer about all details regarding organization.

Organization Customer

Marketing research :To identify & solve marketing related problem.

Advertising :1. Help to deciding on advertisement media advertisement budget.2. To find relationship between advertisement & sales.

Product management:To manage all products & service including new & old models released.Product wise sales analysis .Region wise analysis.

HUMAN RESOURCE INFORMATION SYSTEM:

Human resource information system deals with the flow of information about the people working in the organization and also future personal needs.

SUBSYSTEM:

Manpower planning: To identify the manpower requirements. Recruitment & selection: To identify sources to recruit manpower & process to select them. HR Development: To develop the employees, identify training needs, help them in career

planning. Compensation &Benefits : Used for wages & salary administration , fixatin of benefits &

allowance. Industrial relations: To handle employee grievances. Establishment of personal records: To maintain records related to going, performance,

disciplinary action etc….

HIERARCHIAL INFORMATION SYSTEM:

The information system is used by different level of employees for different purposes.

The information system support the decision making needs of the top management the senior level managers, middle level the managers & lower level workers.

THE DIFFERENT HIERARCHIAL INFORMATION SYSTEM:

INFORMATION SYSTEM BASED ON HIERARCHY:

Transaction processing system (TPS):

It is a earliest form. Tps record & process data resulting from business transactions such as sales,

purchases, inventory changes etc… Tps will be usefull for lower level workets. It is usefull for day today operation.

Eg: Accounting data, sales order processing…

Management information system (MIS):

TPS

MIS

DSS

EIS

When information systems are designed to provide accurate timely and relavant information needed for effective decision making by middle level managers is call MIS.

MIS is designed to analyse data just not to maintain data.Decision support system (DSS):

DSS is an interactive computer based system which help the decision makers to use data & models to solve unstructured problem.

It is helpful to senior level managers & business professionals during decision making process.

DSS uses: Analytical models Specialized database A decision makers own insight &judgement. Interactive computer based modelling bases.

Executive information system (EIS):

EIS is type of computer based information system to support to top level executives starting the critical success factors of an organization.

EIS help to top level executives to make strategic decisions such as expansion, joint ventures etc…

Critical success factors include the book value of a firm market value of the firm earnings for shares key marketing initiatires etc….

NATURE OF FOCUS FOCUS TPS FOCUS IS ON DATA MIS FOCUS IS ON INFORMATION DSS FOCUS S ON DECISION SUPPORT EIS FOCUS IS ON STRATEGIC DECISION SUPPORT

EVOLUTION OF INFORMATION SYSTEM:

ABB IS FOCUSTPS Transaction processing system DataOAS Office automation system CommunicationMIS Management information system Information supportDSS Decision support system Decision supportEIS/ESS

Executive information system/ Executive support system

Decision support for top executive

KS/ES Knowledge system/Expert system Consultation knowledge sharingAI Artificial intelligence Thinking system

In 1950’s & 1960’s the management are potential of computers to process large amount of data speedily and accurately.

The activities involved were called electronic processing. Edp is the form of record keeping. It indicates the use of computers which are manufactured using electronic equipment's such as transistors.

TPS(Trasaction processing system):

TPS is the earliest form of information system.

TPS record & process data resulting from business transaction such as sales, purchases, inventory changes etc..

Useful for lower level workers for day to day operation.

MIS (Management information system):

In 1960’s there was a shift from data to information. It led to the development of management information system.

Predefined management reports were available for managers for decision making purposes. MIS is helpful for middle level managers to take structure decision.

DSS (Decision support system):

In 1970’s the concept of DSS was born .DSS was useful for senior level managers to take a decision.

AI

TPS

OAS

MIS

DSS

EIS/ESS

KS/ES

1950’S

21ST CENTURYT

It also helped in interactive computing.

EIS/ESS(Executive information system/Executive support system):

In 1960’s the personal computing revolution started what if analysis came into picture with the help of key critical factors decision had to be taken.

This gave rise to EIS/ESS.EIS is a type of computer based information delivery & communication system to support top level executives in decisions related to critical factors.

ES/KS (Eexpert system/knowledge system):

In 1990’s expert system was developed ES is an interactive dialog based system, combining DSS philosophy & expert system, knowledge base system was introduced.

Definition of knowledge:

Knowledge is a blend of experiences, values, information in context and insight that form bases for building new experience.

Knowledge system applies the knowledge to meet organization knowledge priorities.

Mid 1990’s saw the development of ERP.

Definition of ERP:

ERP is an organization specific strategic information system. That integrate all facts of a firm including.

Manufacturing Planning Order tracking Inventory control Finance management Human resources management Sales Resources management Customer relation.

AI(Artificial intelligence):

AI is a science & Technology were the goal is to develope computers that can think & see & hear, talk etc..

A major thrust is to develop computer functions normally associated with human intelligences (eg) reasoning intelligence, learning, problem solving.

Characteristics of information:

Timeliness: Information must reach at the right time.

Appropriate: Only relevant information must be given based on users needs.

Complete:Entire data needed.

Accurate : Information must be correct.

Frequency : Frequency is linked to calendar.

Understandable : Presentation of information in the eight format so that user can understand use tables, graph, etc…

Current : Latest information must also be added & updated.

Economical : Cost of gathering the information must not very costly.

Concise : Information must be brief and specific.

Relevant : Only relevant information must be shared.

DSS ( Decision support system ):

It is an interactive computer based system which helps decision maker to utilize data nad model to solve unstructured problem. (scott Morton)

Classification of DSS:

Classification Type of operation ExampleFile drawer system Access to data item Stock queriesData analysis system Adhoc analysis of data Bad payersAnalysis information system Adhocanalysis of data base &

small modelsInternal sales

Accounting model Estimate future results Balance sheet projections

Representation model Estimate results where risk is involved

Risk for new profit

Optimization model Calculating optimized results subject to constraints

Production planning

What it analysis To find out what happens to other variable

Audit authorization(how much credit to give)

Activities/Analytical modelling in DSS:

Activities Description Examples what it analysis To find out what happens to

other variables when one variable is changed by a small percentage

What happen to sales if advertising is minimized by 10%

Goal oriented analysis (or) Goal seeking analysis

To determine the input value for achieving the goal

What should be advertisement if sales needed is 10lakhs

Model building It helps to identify the appropriate model required

Developing the sales forecasting model

Optimization/Risk analysis To identify risk associated with the alternatives

What is the best advertisement budget

Graphical analysis Visual representation Graph showing advertisement and sales.

Schematic view of DSS:

Computer based system

Intranets internet & extranets

Data management

Model management

External model

Knowledge base subsystem

Organization knowledge base

User inter face

User

Data Management system:

It cosists of DSS data base, software, data directory & query facility.

Model Management System:

It contains all models that provide system analytical capability.

User interface:

User communication with & commands the DSS using this subsystem.

Knowledge base management system:

It provides the intelligence to the decision maker view

Advantages of DSS:

It improves problem solving. It improves personal efficiency. It facilitates communication. It promotes learning & training. It increases organization control.

Disadvantage of DSS:

Limited storage capacity. Limited information sharing. Translation problem exist when using other external model. Conflict in decision making scenario. Slow Difficult in understanding to know the interdependency.

EIS (Executive information system):

EIS is a computer based information delivery & communication system designed to support the needs of top executives.

Goal of EIS:

To give information regarding CSF ( Critical success factors) of the organization top executives.

Feature of EIS:

Drill down capability:Drill down capability allow executives to look for details on any specific information. Each level will have submenu {eg:oversales, export vs Domestic sales, state wise sales, district wise sales, area wise sales, salesman sales}

CSF (critical success factor): EIS is designed with CSF requirements of top executives.

Status access: Trend Analysis & Exception reporting

To get access to To examine data over To report on key variances. latest data on any over time. Variable.

Personalized analysis:Reports on personalized formats.

Navigation of information;EIS allows navigation is forward tracking backward tracking, skipping of screen such feature Quick Access.

Present Graphical, Tabular & Test information:For better visualization.

COMPONENTS OF EIS:

SOFTWARE:Text based software, database, graphic base & model base.

HARDWARE:Input device, output device, storage device.

INTERFACE:Scheduled reports, menu driven reports, question & answer.

TELECOMMUNICATION:To communicate electronically to all.

CAPABAILITIES OF EIS:

Support for designing Organisation Vision: To provide a plan for next 5 to 10years. Support for strategic planning: To determine long term objective & scanning. Support for strategic Organising& staffing: To bring together Physical, financial and human

resources.To keep organization structure manned.

Support for strategic control: To manage & control the entire operation. Support for management: To handle emergency situations.

ADVANTAGES OF EIS:

Ease of use at the top level. Ability to analys trends. Enhanced personal thinking & decision making. Improve information efficiency.

DISADVANTAGES OF EIS:

Function are limited. Costly to implement. Hard to quantify benefits. Executives may be overloaded with information.

KNOWLEDGE MANAGEMENT SYSTEM (KMS):

For the structured decision. KMS is a practice that address the need for information for making effective decision.

If the information is structure decision the can be translated into knowledge by applying a set of predefined rates.

FEATURE OF KMS:

Purpose : A good way of information sharing. Context : Information must be organized knowledge can be created and applied. Process: It is used to support knowledge intensive processes. Participants : Every use must play the role actively in knowledge network. Instruments : KMS supports capture, creation & sharing of codifiable aspects of experience

COMPONENTS OF KMS:

Business process management: It can be used for different business process such as HR, finance production etc.

Content Management:All the intellectual content of KMS.

Web content management: It is content related to building a website.

Knowledge application management: It is software that helps to create knowledge.

TYPES OF KMS:

Enterprise wide kms: General purpose integrated information.

Knowledge work system:Specialized workstation.Eg: CAD, 3D Visualisation, Virtual reality.

Intelligent techniques:Tools for designing.EG: expert system, case based reasoning.

ADVANTAGES OF KMS:

Self learning. Knowledge sharing. Elimination redancy.

DISADVANTAGES OF KMS:

Confidentiality is lost. Wrong information system. Over reliance on the KBS so creativity is lost.

GEOGRAPHICAL INFORMATION SYSTEM (GIS): It is a special category of DSS use visualization techniques. It analysis may be in the form of spatial or aspatial data. It may help delivery manage to find shortest route. Real estate develop to locate vast lands geodata base is a database with extention for

storing, indexing, querying, manipulating into with spatial data.

GIS CAPABILITIES:

Organization & information. Visualization with colours& shadows. Queries about spatial &Aspatial data. Combination of existing maps to create new maps. Prediction of information / for future purposes. Notations used are points & lines. Analysis spatial data & measurements.

INTERNATIONAL INFORMATION SYSTEM (IIS):

It is distribution information system, which support similar business activities, highly diverse environment found across the country boundaries.

DIMENSION OF IIS:

Corporate Global environment: Strategy for operation abroad

Global environment:Environment at different countries.

Structure of the organization:What will be the structure?What functions will be carried out in different countries.

Management & Business:How to develop & design business procedure.

Technology platform:Which technology shall be adopted.

TYPES OF IIS:

Transnational information system Global information system

Technology platform

Mktg& business

Structure of oranisation

Corp.Global environment

Global environment

Collaborative information system

DIFFICULTIES INVOLVED IN IIS:

Technology related difficulties. Cultural diversity. Political challenges. Different standards. Language difference. Difference regulation & tariff.