MIS-Uint-Ist, IInd & IIIrd.pptx

Jagran Institute Of Management
MBA:FIRST YEAR-2nd Semester-
Session-2021-22
(KMBN208)-MANAGEMENT INFORMATION
SYSTEMS
Subject Start Date:11th-April-2022
NameofFaculty:
VishnuKr.Shukla
(Assistant Professor)
Dept.ofMCA

MANAGEMENT INFORMATION SYSTEMS
Course Objective –
1. To help the students understand the importance of
information management in business and management.
2. To provide understanding about different types of
information systems in business.
3. To apply the theory and concepts in practical with help of
software.
4. To understand various security and ethical issues with
Information Systems.
5. To provide hands on learning of applications on
Spreadsheet and database software.

UNIT -1 (6 Hours)-
Management Information Systems - Need,
Purpose and Objectives, Contemporary
Approaches to MIS, Information as a strategic
resource, Use of information for competitive
advantage, MIS as an instrument for the
organizational change.
Information Technology – Characteristics and
emerging trends, IT Capabilities and their
organizational impact, IT enabled services.
Transaction Processing System: Characteristics
and its importance.

UNIT -II (6 Hours)-
Information, Management and Decision Making -
Attributes of information and its relevance to
Decision Making, Types of information. Models
of Decision Making - Classical, Administrative
and Herbert Simon's Models.
Management Support Systems: Decision Support
Systems, Group Decision Support Systems, and
Executive Information Systems.

UNIT -III (8 Hours)
Managing Data Resources- The need for data
management, Challenges of data management, Data
independence, Data redundancy, Data consistency,
Data administration.
Database Management System – Concepts and types
of DBMS, Fields, Records, Table, View, Reports and
Queries. Data warehouse and Data mining –
Characteristics and uses of Data warehouse,
Techniques of Data Mining,
Business Intelligence Database Management System
(Lab): Creation of Table, View and Reports. Basics of
SQL and running queries.

Suggested Readings
1. Management Information System – James ‘O’ Brian.
2. Management Information Systems, Laudon and Laudon, 7th
Edition, Pearson Education Asia .
3. Management Information Systems, Jawadekar, Tata McGraw Hill .
4. Analysis and Design of Information Systems, Rajaraman, Prentice
Hall .
5. Database Management Systems: A Business-Oriented Approach
Using ORACLE, MySQL and MS Access, by Sotirios Zygiari .
6. Computer Applications in Business (CBCS) by Dr. Sushil Kumar
Sharma & Ms. Mansi Bansal (Taxmann) .
7. Excel 2019 All-In-One: Master the new features of Excel 2019 /
Office 365, Lokesh Lalwani (BPB.)

CO1 Be able to understand the importance of
information management in business and
management
Knowledge( K2)
/ Remembering
( K1)
CO2 To understand and formulate different types of
information systems in business
Knowledge ( K2)
CO3 Be able to apply the theory and concepts in
practical with help of software
Applying ( K 4)
CO4 To apply various security and ethical issues with
Information Systems
Applying ( K 4)
CO5 To synthesize applications on Spread sheet and
database software
Synthesizing (
K6)/ Evaluating (
K7)

Before starting subject-
Overview of Computers:
Block diagram and its description, digital computer & types with
specification.
Computer Hardware: Input device/Output devices.
Storage Devices/ Introduction to Memory.
Computer Software:
System Software & Application Software.
Number Systems.
Introduction to programming language:
Different levels of PL: High Level language, Assembly language,
Machine language.
Language Translator :-Introduction to Compiler, Interpreter,
Debugger, Linker, Loader, Assembler.

INTRODUCTION TO
MANAGEMENT INFORMATION SYSTEM:-
MIS is the use of information technology, people,
and business processes to record, store and
process data to produce information that decision
makers can use to make day to day decisions.
Or Management Information Systems (MIS), referred
to as Information, Management and Systems, is the
discipline covering the application of people,
technologies, and procedures collectively called
information systems, to solving business problems.
“'MIS' is a planned system of collecting, storing and
disseminatingप्रसारdata in the form of information
needed to carry out the functions of management.”

According to Philip kolter-
A management information
system consist of people, equipment
and procedures together, sort, analyze,
evaluate and distribute the needed
timely and accurate information and
marketing decision makers.
MIS is also knows as Information Systems/
Information and Decision Systems/ Computer-
Based Information Systems.

Definitions of MIS:
1. MIS is defined as a systemwhichprovides information support
for decision-makingin theorganization.
2. MIS is defined as an integrated system of manand machine for
providinginformationto theoperations,management&
decision-makingfunctionin theorganization.
3. MIS is definedas a system basedon thedatabaseof the
organizationfor thepurposeof providing informationto people
in organization.
4. MIS is defined as a Computer-basedInformationSystem.

Another Meaning of MIS
Academically, the term is commonly used to refer to
the group of information management methods tied to
the automation or support of human decision making.
e.g. Decision Support Systems, Expert Systems, and
Executive Information Systems.

According to Subhalakshmi Joshi:- Management
information system, or MIS, broadly refers to a
computer based system that provides managers with
the tools to organize, evaluate and efficiently manage
departments within an organization.

COMPONENTS OF MIS:-
1. Management: Word “management” identifies a
special group of people whose job is to direct
the effort and activities of other people toward
common objective.
“Management is the process of coordinating
work activities so that they are completed
efficiently and effectively with and through other
people”.
Another concept of MANAGEMENT is the
effective utilization of human and material
resources to achieve the enterprise objective.

The basic functions performed by a
manager in an organization are:
It is a process consisting of the five basic functions:
Planning,
Controlling,
Staffing,
Organizing, and
Directing.

*MANAGEMENT INFORMATION SYSTEMS
*2. INFORMATION:-
* Information is data that has been
manipulated to be useful to someone.
Information must have value. Information
tells people something they don’t already
know or confirms something that they
suspect.
*Information is considered as valuable
component of an organization.
*So, in MIS, means the processed data that
helps the management in planning,
controlling and operations.

What is Data: Data is raw,
unorganized facts that need to be
processed. Data can be something
simple and seemingly random and
useless until it is organized.
What is Information: When data is
processed, organized, structured or
presented in a given context so as to
make it useful, it is called
information.

• Data are the facts or details from which
information is derived. Individual pieces of data
are rarely useful alone. For data to become
information, data needs to be put into context.
Data is a single unit. A group of data which
carries new and meaningful data is called
Information.

• Some more differences between data and information:
• Data is used as input for the computer system. Information is the
output of data.
• Data is unprocessed facts figures. Information is processed data.
• Data doesn’t depend on Information. Information depends on data.
• Data is not specific. Information is specific.

Data are the facts or details from which information is derived.
Individual pieces of data are rarely useful alone.
Data is a single unit. A group of data which carries new and
meaning is called Information.
Data doesn’t carry a meaning. Information must carry a
logical meaning. Data is the raw material. Information is
the product.
It is an entity piece of information that is fact.
Information = Instruction + Data
DATA-------→PROCESSING------ →INFORMATION
Data involves facts and figures-Information on the
other hand is like a finished product.

SYSTEM:- A system is defined as a set of
elements which are joined together to achieve
a common objective. The elements are
interrelated and interdependent.
Or
A system is a group of interrelated
components working together toward a
common goal (according to a plan to achieve a
specific objective) by accepting inputs and
producing output in an organized
transformation process.

Manual Information Systems VS Computerized Information
Systems (MIS)
Data is the bloodstream of any business entity. Everyone in an
organization needs information to make decisions. An
information system is an organized way of recording, storing
data, and retrieving information.
In this section, we will look at manual information systems vs.
computerized information systems.
Manual Information System
A manual information system does not use any
computerized devices. The recording, storing and
retrieving of data is done manually by the people,
who are responsible for the information system.

The following are the major components of a manual
information system
People –people are the recipients of information
system
Business Procedures –these are measures put in place
that define the rules for processing data, storing it,
analyzing it and producing information
Data –these are the recorded day to day transactions
Filing system – this is an organized way of storing
information
Reports –the reports are generated after manually
analyzing the data from the filing system and
compiling it.

Advantages and Dis-advantages of a manual
information system
Advantages:
The following are the advantages of manual information
systems
Cost effective – it is cheaper compared to a computerized
system because there is no need to purchase expensive
equipment such as servers, workstations, printers, etc.
Flexible –evolving business requirements can easily be
implemented into the business procedures and implemented
immediately
Disadvantages:
The following are some of the disadvantages of a manual
information system.
Time consuming –all data entries need to be verified before
filing, this is a time consuming task when done by humans.
Retrieving data from the filing system also takes a
considerable amount of time

Prone to error – the accuracy of the data when verified and
validated by human beings is more prone to errors compared to
verification and validation done by computerized systems.
Lack of security – the security of manual systems is
implemented by restricting access to the file room. Experience
shows unauthorized people can easily gain access to the filing
room
Duplication of data –most departments in an organization need
to have access to the same data. In a manual system, it is
common to duplicate this data to make it easy to accessible to
all authorized users. The challenge comes in when the same
data needs to be updated
Data inconsistency – due to the duplication of data, it is very
common to update data in one file and not update the other
files. This leads to data inconsistency
Lack of backups – if the file get lost or mishandled, the chances
of recovering the data are almost zero.

Computerized information system
Computerized systems were developed to address the challenges of manual
information systems. The major difference between a manual and
computerized information system is a computerized system uses a
combination of software and hardware to record, store, analyze and
retrieve information.
Advantages and Disadvantages of a computerized information system (MIS)
The following are some of the disadvantages of a computerized information
system.
Advantages:
The following are the advantages of computerized information systems
Fast data processing and information retrieval – this is one of the biggest
advantages of a computerized information system. It processes data and
retrieves information at a faster rate. This leads to improved
client/customer service
Improved data accuracy – easy to implement data validation and verification
checks in a computerized system compared to a manual system.
Improved security – in addition to restricting access to the database server,
the computerized information system can implement other security controls
such as user’s authentication, biometric authentication systems, access
rights control, etc.

Reduced data duplication – database systems are designed in such a way
that minimized duplication of data. This means updating data in one
department automatically makes it available to the other departments
Improved backup systems – with modern day technology, backups can be
stored in the cloud which makes it easy to recover the data if something
happened to the hardware and software used to store the data
Easy access to information – most business executives need to travel and
still be able to make a decision based on the information. The web
and Mobile technologies make accessing data from anywhere possible.
Disadvantages:
It is expensive to set up and configure – the organization has to buy
hardware and the required software to run the information system. In
addition to that, business procedures will need to be revised, and the staff
will need to be trained on how to use the computerized information system.
Heavy reliance on technology – if something happens to the hardware or
software that makes it stop functioning, then the information cannot be
accessed until the required hardware or software has been replaced.
Risk of fraud – if proper controls and checks are not in place, an intruder can
post unauthorized transactions such as an invoice for goods that were never
delivered, etc.

*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.
*Ex. Human body is a system composed of various
parts, which are working together towards a
common objective , that is to live

*

SWOT:
Strengths, Weaknesses, Opportunities, and Threats analysis
*What is SWOT:
*SWOT Analysis is a simple but useful framework for analysing your
organization's strengths, weaknesses, opportunities, and threats. It
helps you to build on what you do well, to address what you're
lacking, to minimize risks, and to take the greatest possible
advantage of chances for success.
*What is Six Sigma:
*Six Sigma is a method that provides organizations tools to improve the capability of
their business processes. This increase in performance and decrease in process
variation helps lead to defect reduction and improvement in profits, employee
morale, and quality of products or services.
*Six Sigma is a methodology and set of tools that help us measure
what we do and then improve what we do.

What is CMMI:
Capability Maturity Model Integration (CMMI) is a process level improvement
training and appraisal program. CMMI defines the following
maturity levels for processes: Initial, Managed, Defined, Quantitatively
Managed, and Optimizing.
*The Capability Maturity Model Integration, or CMMI, is a process model that
provides a clear definition of what an organization should do to promote
behaviours that lead to improved performance. With five “Maturity Levels”
or three “Capability Levels,” the CMMI defines the most important elements
that are required to build great products, or deliver great services, and
wraps them all up in a comprehensive model.
*The CMMI helps us understand the answer to the question “how do we
know?”
*How do we know what we are good at?
*How do we know if we’re improving?
*How do we know if the process we use is working well?
*How do we know if our requirements change process is useful?
*How do we know if our products are as good as they can be?
*The CMMI also helps us identify and achieve measurable business goals,
build better products, keep customers happier, and ensure that we are
working as efficiently as possible.

TYPES OF MIS :-
There are various types of MIS-
1. Transaction Processing System (TPS):- -designed to
process routine transactions efficiently and
accurately. Managers often use these systems to
deal with such tasks as payroll, customer billing and
payments to suppliers. Or
MIS produce fixed ,regularly scheduled reports
based on data extracted and summarized from the
firms underlying transaction processing systems to
middle and operational level managers to identify
and inform structured and semi structured decision
problems.

2. Decision support system (DSS):- This are
computer applications used by middle
management to compile information from a
wide range of sources to support problem
solving and decision making.
3. Executive Support System (ESS):- Executive
Support System (ESS) is software used by
companies which has information related to
business, which enables the top management
to take better decisions in favor of the
company.

4. Knowledge Management Systems ("KMS")-to help businesses
create and share information. These are typically used in a
business where employees create new knowledge and
expertise - which can then be shared by other people in the
organization to create further commercial opportunities.
5. Customer Relationship Management (CRM):- This are MIS
designed specifically for managing the marketing aspects of
the business .
6. Office Automation Systems (“OAS”)-that try to improve the
productivity of employees who need to process data and
information. Wide range of software systems that exist to
improve the productivity of employees working in an office
(e.g. Microsoft Office XP) or systems that allow employees to
work from home or whilst on the move.

Why MIS ?
• Manager makes decisions all the time.
• There is an overload of information.
• All information is not useful.
• Anything which helps manager improve his decision-
making will obviously lead to better result.
• MIS is a system, where data is the input, which is
processed to provide output in the form of
information reports, summaries, etc .
Which aid the manager’s decision-making process.

How is a Management Information System Useful in
Companies?
Planning and Control : MIS improves the quality of plants by
providing relevant information for decision – making. MIS
serves as a link between managerial planning and control. It
improves the ability of management to evaluate and improve
performance.
MIS Minimizes Information Overload : MIS change the larger
amount of data into summarized form and therefore, avoids
the confusion which may arise when managers are flooded with
detailed facts.
MIS Encourages Decentralization : Decentralization of authority
is possibly when there is a system for monitoring operations at
lower levels. MIS is successfully used for measuring
performance and making necessary change in the
organizational plans and procedures.

Costs : Invest in a consultant to help define your core
requirements that include information for strategic
planning and project management. To be useful and
successful, a management information system should
focus on company products and services, customers,
operating costs, marketing opportunities and the
company's exposure to risk.
• MIS brings Coordination : MIS facilities integration of
specialized activities by keeping each department
aware of the problem and requirements of other
departments. It connects all decision centers in the
organization . MIS assembles, process , stores ,
retrieves , evaluates and disseminates the information
.

Impact of the Management Information System
* • With a good MIS support, the management of
marketing , finance, production and personnel
becomes more efficient.
*• The MIS begins with the definition of a data entity
and its attributes, respectively, designed for
information generation in the organization.
*• The MIS calls for a systemization of the business
operations for an effective system design.
*• This leads to streamlining of the operations which
complicate the system design.

*• MIS improves the administration of the
business by bringing a discipline in its
operations as everybody is required to follow
and use systems & procedures.
*• This process brings a high degree of
professionalism in the business operations.
*• Since the goals and objectives of the MIS are
the products of business goals & objectives, it
helps indirectly to pull the entire organization
in one direction towards the corporate goals
and objectives by providing the relevant
information to the people in the organization.

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. Data Capturing : MIS capture data from various internal and external
sources of organization. Data capturing may be manual or through computer
terminals.
2. Processing of Data : The captured data is processed to convert into
required information. Processing of data is done by such activities as
calculating, sorting, classifying, and summarizing.
Processing data means −
*making calculations with the data
*sorting data
*classifying data and
*summarizing data

3. Storage of Information : 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.
4. Retrieval of Information : MIS retrieves information
from its stores as and when required by various users.
5. Dissemination of Information : Information, which is
a finished product of MIS, is disseminated to the users
in the organization. It is periodic or online through
computer terminal.

NEED FOR 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 accounting information system
and the reports generated thereon are used to provide accurate,
timely and relevant information needed for effective decision
making by managers.
MIS Need for Information Systems
*Managers make decisions. Decision-making generally takes a four-
fold path −
*Understanding the need for decision or the opportunity,
*Preparing alternative course of actions,
*Evaluating all alternative course of actions,
*Deciding the right path for implementation.

Here ,discussed about some points regarding needs of
MIS-
Decision makers need information to make
effective decisions-
Management Information Systems (MIS) make this
possible.
MIS systems facilitate communication within and
outside the organization –
Employees within the organization are able to easily
access the required information for the day to day
operations.
Facilitates such as Short Message Service (SMS) & Email
make it possible to communicate with customers and
suppliers from within the MIS system that an organization
is using.

Business Need Information Technology?-
The fundamental reasons for the use of information
technology in business are:
Support of business operations
Support of managerial decision making
Support of strategic competitive advantage.
Emergence of the Global Economy
Transformation of the Business Enterprise
Competitive Business Environment
Record keeping – Management information systems
record all business transactions of an organization and
provide a reference point for the transactions.

PURPOSE OF MIS:-
The purpose of MIS is reporting and is to provide the necessary
information to the managers and supervisors at various levels to help
them to discharge their functions of organising, planning, control
and decision making.
The primary purpose of a management information system, or MIS,
is to assist managers in making strategic, tactical and operational
decisions in an efficient and productive manner. It provides
managers with essential information that is gathered from a
variety of sources, pooled into a single database and compiled in
a readable format.
Management Information Systems are primarily concerned with the
delivery of information (both internal and external) to organizational
members from the shop floor workers to the management.

In other terms, The purpose of MIS is to help the smooth running of
the business by providing information on the firms data (such as
accounting figures) employees from different levels will then
evaluate this information so that decisions can be made to ensure
that the business remains competitive and successful.
A management information system consists of a set of systems and
processes that distributes information to managers. This tool is
used to make reports and comprehensive overviews that help
managers conduct performance reviews and make a wide range of
decisions, such as an in-depth analysis of operational concerns.
It provides internal reports that are presented in an easily
understandable format. Information collected by a MIS are either
financial or operational depending on the needs of management.

A MIS is generally capable of collecting any type of information
required by managers. It views financial data, such as daily expenses
and revenues, and attributes these data to respective departments.
Personnel are able to manage outgoing shipments and incoming
deliveries from any location connected to the MIS.
MIS have been created to support the whole range of business's
administration and regulatory activities and can be seen in all parts
of the world and in all types of industries both public and private
sector.
*In the US, for example, the National Drivers Register has MIS
facilities to report on driver license details, such as all those within a
given state whose license has been revoked or suspended.

Advantage Or Benefits 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 utilized by manager to
achieve organization goal..
• Data can easily be accessed and analyzed without time consuming
manipulation and processing.
• Decisions can be made more quickly and with confidence that the
data are both time-relevant and accurate.
• Integrated information can be also kept in categories that are
meaningful to profitable operation.

Significant cost benefits, time savings, productivity gains and
process re-engineering opportunities are associated with the
use of data warehouse for information processing.
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.

*Limitations Or Disadvantage of MIS:-
Even though MIS has many benefits but it also has its limitations.
*Limitations of MIS are discussed below:
*While MIS may solve some critical problems but it is not a solution
to all problems of an organization.
*It cannot meet the special demands of each person.
MIS if designed in an improper manner does not serve the
management and hence is of little relevance.
*The MIS is not good if the basic data is obsolete and outdated.
Mostly information provided by the MIS is in quantities form.
*Hence, it ignores the qualitative information like the attitude of an
employee.

Challenges of MIS:-
*There are three major challenges of MIS. These are briefly discussed below:
*High Cost
*Training of Employee
*Maintenance Cost
1. 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.
2. 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.
3. 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.

Information is Strategic Resources.
Because Information helps in taking Strategic, Tactical and operational
Decisions. It is one of critical and importance resource. It helps us
understand Cost, Quality, price, technology, productivity and product.

MIS as an instrument for the organizational
change:-
MIS can deliver facts, data and trends to businesses with lightning
speed. Having this information allows companies to react quickly to
market changes, regardless of the type (positive or negative) of
volatility.
MIS acts’ as an agent or a catalyst to bring about organizational change
that is needed to cope up with the changing business environment and
the effect of external forces. MIS has shifted from back office to front
office. The role of the MIS in an organization can be compared to the
role of heart in the body.
Example : The information is the blood and MIS is the heart. In the
body, the heart plays the role of supplying pure blood to all the
elements of the body including the brain.
The heart works faster and supplies more blood when needed.
It regulates and controls the incoming impure blood, processes it and
sends it to the destination in the quantity needed. It fulfills the needs
of blood supply to human body in normal course and also in crisis.
The MIS plays exactly the same role in the organization.

The system ensures that an appropriate data is collected from
the various sources, processed, and sent further to all the
needy destinations.
The system is expected to fulfill the information needs of
an individual, a group of individuals, the management : the
managers and the top management.
The MIS satisfies the diverse needs through a variety of
systems such as Query Systems, Analysis Systems, Modeling
Systems and Decision Support Systems.
The MIS helps in Strategic Planning, Management Control,
Operational Control and Transaction Processing.
The MIS helps the clerical personnel in the transaction
processing and answers their queries on the data pertaining
to the transaction, the status of a particular record and
references on a variety of documents.

The MIS helps the junior management personnel by providing
the operational data for planning, scheduling and
Controlling and helps them further in decision making at
the operations level to correct an out of control situation.
The MIS helps the middle management in short-term
planning, target setting and controlling the business
functions.
It is supported by the use of the management tools of
planning and control.
The MIS helps the top management in goal setting, strategic
planning and evolving the business plans and their
implementation.
The MIS plays the role of information generation,
communication, problem identification and helps in the
process of decision making.
The MIS, therefore, plays a vital role in the management,
administration and operations of an organization.

External Changes:-
1. MIS has made world smaller.
2. Worldwide reorganization environment and attempt to control the
calamity.
3. Health conscious among the group leading less sufferings.
4. Change in the work lifestyle for better result.
5. Creating Knowledge is an asset.
Internal Change:-
MIS will change the Business Process.
2. MIS will change the old standards and set new standards.
3. MIS key for Continuous improvement Process.
4. MIS will reduce the hierarchy and hence less operation cost.
5. MIS focus on “Shared information.
6. MIS will accelerate restructure work flow for both line and staff
functions.
7. MIS will bring change in Authority and power by merit and not by age
or number of years of experience.
8. MIS brings cultural change.
9. MIS measures the results and performance.
10. MIS brings Continuous addition to Organizational knowledge base.

Contemporary Approaches to information
systems:-
Although information systems are a collection of electrical
and mechanical devices, they require the organization, and
the people that work within the organization for them to be
successful.
Or
Information systems are sociotechnical systems. Although
they are composed of machines, devices, and "hard" physical
technology, they require substantial social, organizational,
and intellectual investments to make them work properly.
Since problems with information systems—and their solutions—
are rarely all technical or behavioral, a multidisciplinary
approach is needed.

When an information system is being developed, much importance should be
given to the structure of the organization, culture of the organization, etc.
But along with these, especial attention should also be given to the
technical side of MIS. The various contemporary approaches to MIS
development can be summarized as:
The Behavioral Approach
a) Based on the impact of the behavior and also on the response of the
people in the organization.
b) Motivational Feasibility forms a very important and demanding part of
such an approach towards MIS development.
• Deals with behavioral issues that arise in the development, and long
term maintenance of the information system.
• Different disciplines, such as psychologists, sociologists, Economists,
study information systems, and the impacts they have in the
organizational environment.
Behavioral changes can occur within the organization during, and after
information system development. The key to this approach is to find
the solution to the behavior, which is not a technical issue

The Technical Approach: The technical approach uses
mathematical models to test the capabilities of
information systems.
These disciplines include:
• Computer Science - concerned with methods of
computability, computation, and data storage and
access.
• Management Science - emphasized the
development of models for decision making, and
management practices.
Operations Research - focuses on mathematical
techniques for optimizing selected parameters of
organizations.(inventory control, transaction
costs).

Information System:-
Before discussion of information system you should
know the-
What is Digital Convergence: It is an approach by which all
types of media and communication will be digitized allowing
them to be used through a single worldwide network.
What is Information Technology: Hardware and software that
perform data processing tasks, such as capturing, transmitting,
storing, retrieving, manipulating or displaying data.
What is IT Architecture: A conceptual design for the
implementation of information technology in an organization,
including its hardware, software, and network technology
platforms, data resources, application portfolio, and IS
organization.

Introduction to Information System:
A collection of elements(devices) that capture data and convert it in
information and disseminate to the decision-makers in an organization.
In other words, An information system is an organized combination of people,
hardware, software, communications network, and data resources that
collects, transforms, and disseminates in an organization.
An information system contents information about an organization and its
surrounding environment. Three basic activities – input, processing, and
output produce the information organization needs.
Feedback is output returned to appropriate
people or activities in the organization to
evaluate and refine the input environment
factors such as customers, suppliers,
competitors, stock holders and regulatory
agencies interact with the organization and
its information.

Components of Information System :-
It is a combination of –
Input
Processor
Output
People
Hardware(physical devices) :
Software (information processing instructions)
Data
Network (communication channels)
Input In computing, an input device is a piece of equipment used to
provide data and control signals to an information
processing system such as a computer or information appliance.
Examples of input devices include keyboards, mouse, scanners,
cameras, joysticks, and microphones.

Processor :-A processor, or "microprocessor," is a small chip
that resides in computers and other electronic devices. Its
basic job is to receive input and provide the appropriate
output. While this may seem like a simple task,
modern processors can handle trillions of calculations per
second.
Output:-An output is data that
a computer sends. Computers only work with digital
information. Any input that a computer receives must be
digitised. Often data has to be converted back to an analogue
format when it's output, for example the sound from
a computer's speakers.
People :-The term “People" probably means the group of team
members (executives and other managers) who are primarily
responsible for making decisions in the organization.

Hardware(physical devices) :Computer hardware refers to the
physical devices such as servers, desktop computers, laptops,
portable devices, networking devices, storage devices and printers,
etc. Let's now look at each of these elements separately
Software (information processing instructions) :-The software runs
on top of the hardware. Software refers to computer programs that
perform specific tasks. The software is usually divided into two
major categories namely system and application software.
Data :-Computer data is information processed or stored by
a computer. This information may be in the form of text documents,
images, audio clips, software programs, or other types of data.

*Network (Telecommunication channels):-Networking devices are used to
link computers and other telecommunication devices together. The devices
used to create a network depend on the type of network work that you
want. For example, a wired Local Area Networks (LANs) will require a
network switch and RJ-45 cables.
*networking devices are used to interconnect computing resources so that
they can communicate with each other. Common networking devices
include networking hubs and switches, Wi-Fi routers, etc. Hubs and
switches are used to provide network connectivity via a physical cable, and
they are usually used to connect desktop computers. Wi-Fi routers are used
to provide wireless networking capabilities. Wi-Fi routers are usually used
to connect laptops and mobile devices to the corporate network.
*Telecommunication is the exchange of information over long distances.
Telecommunication uses transmitters and receivers to facilitate
communication. Signals can be sent via physical cables or the sent via a
wireless network.
*A telecommunication network refers to multiple transmitters and receivers
exchanging data. The internet is an example of a large telecommunication
network. Wide Area Networks (WANs), telephone communication networks,
etc. are all examples of telecommunication networks.

Types of information systems:- A business has several
information systems :
*(A) Formal Information System
*(B) Informal Information System
*(C) Computer Based Information System
(A) Formal Information System : It is based on
organizational chart represented by the organization.
(B) Informal Information System : It is an employee
based system designed to meet personal and
vocational needs and to help in the solution of work-
related problems. It also funnels information upward
through indirect channels. It works within the
framework of the business and its stated policies.

(C) Computer Based Information System (CBIS) : 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.
Types of Information system:-
They are categorized in the following 6 classes:
*i) Transaction Processing System (TPS)
*ii) Management Information System (MIS)
*iii)Decision Support System (DSS)
*iv)Executive Support System (ESS)
*v)Office Automation Systems (OASs), and
*vi)Business Expert Systems (BESs)

*These classification of Information Systems can be
done on the basis of business functions also.
This classification is done to achieve the maximum
efficiency in business functions.
*There are lot many considerations we have to
bother while we do business.
*The role played by the Internet and Information
Technologies to support electronic commerce,
enterprise communications and collaboration, and
Web-enabled business processes both within a
networked enterprise, and with its customers and
business partners will definitely require specialized
Information Systems for Business functions.

Figure shows the specific types of information systems
that correspond to each organizational level.

*The organization has executive support systems (ESS) at the strategic
level;
*management information systems (MIS) and decision-support systems
(DSS) at the management level;
*knowledge work systems (KWS) and office automation systems at the
knowledge level; and
*transaction processing systems (TPS) at the operational level.
*Systems at each level in turn are specialized to serve each of the
major functional areas.
*Thus, the typical systems found in organizations are designed to
assist workers or managers at each level and in the functions of sales
and marketing, manufacturing, finance, accounting, and human
resources.

Function of an Information System

*Organizations can be divided into strategic, management, knowledge
and operational levels and into five major functional areas- sales and
marketing, manufacturing, finance, accounting, and human resource.
Information system serves each of these levels and functions.

*1. TPS (Transaction Processing System): TPS are the basic business
systems that serve the operational level of the organization. A TPS is a
computerized system that performs and records the daily routine
transactions necessary to conduct business. Examples are sales order entry,
hotel reservation system, payroll, employee record mgmt., etc.
*Managers need TPS to monitor the status of internal operations and
firm’s relations with external environment. TPS are also measure
producers of information for the other type of system.
*TPS processes transaction and produces reports. It represents the
automation of the fundamental, routine processing used to support
business operations. It does not provide any information to the user
to his/her decision-making

*Transaction Processing Systems (TPS) are cross-functional information
systems that process data resulting from the occurrence of business
transactions.
*Transactions are events that occur as part of doing business, such as sales,
purchases, deposits, withdrawals, refunds, and payments. Transaction
processing activities are needed to capture and process data, or the
operations of a business would grind to a halt.
*Example: Let us look at a simple example of a business transaction.
McDonald’s, which sells a large number of hamburgers everyday, orders
raw materials from its suppliers.
*Each time the company places an order with a supplier, a transaction
occurs and a transaction system records relevant information, such as the
supplier’s name, address, and credit rating, the kind and quantity of items
purchased, and the invoice amount.

Types of Transactions
*There are mainly two types of transaction and these are:
* Internal transaction
* External transaction
*Internal Transactions: Those transactions, which are internal to the
company and are related with the internal working of any
organization.
*Example: Recruitment Policy, Promotion Policy, Production Policy,
etc.
*External Transactions: Those transactions, which are external to
the organization and are related with the external sources, are
regarded as External Transaction. For example sales, purchase, etc.
*When a department orders office supplies from the purchasing
department, an internal transaction occurs, when a customer places
an order for a product, an external transaction occurs.

Characteristics of Transaction Processing Systems
*Various characteristics of TPS are:
* A TPS records internal and external transactions for a company. It is
a repository of data that is frequently accessed by other systems.
* A TPS performs routine, repetitive tasks. It is mostly used by lower-
level managers to make operational decisions.
* Transactions can be recorded in batch mode or online. In batch
mode, the files are updated periodically; in online mode, each
transaction is recorded as it occurs.
* There are six steps in processing a transaction. They are data
entry, data validation, data processing and revalidation, storage,
output generation, and query support.

Features of TPS:-Various features of TPS are:
* A TPS supports different tasks by imposing a set of rules and guidelines
that specify how to record, process, and store a given transaction. There
are many uses of transaction processing systems in our everyday lives, such
as when we make a purchase at retail store, deposit or withdraw money at
a bank, or register for classes at a university. Almost all organizations,
regardless of the industry in which they operate, have a manual or
automated TPS.
* A TPS is the data lifeline for a company because it is the source of data
for other information systems, such as MIS and DSS (Decision Support
Systems). Hence, if the TPS shuts down, the consequences can be serious
for the organization.
* A TPS is also the main link between the organization and external entities,
such as customers suppliers, distributors, and regulatory agencies.
* TPS exist for the various functional areas in an organization, such as
finance, accounting, manufacturing, production, human resources,
marketing quality control, engineering, and research and development.
Until a few years ago, many companies viewed the TPS for each business
function as separate entity with little or no connection to other systems in
the company.

*2. Management Information System (MIS):- MIS is an information
system, which processes data and converts it into information. 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.
*MIS serve the management level of organization as stated above with
online access to the organization’s current performance and
historical records. Typically they are oriented almost exclusively to
internal, not environmental or external events. MIS depend on TPS
for their data. It summarize and report on the company’s basic
operations. MIS usually serve managers interest in weekly, monthly
and yearly results not day to day activities.

*It is the Information system at the management level of an organization
that serve the functions of planning, controlling and decision making by
providing routine summary and exception reports.
*3. DSS (Decision Support System) :-
*It is the information system at the organizations management level that
combines data and sophisticated analytical models or data analysis tools to
support semi-structured and unstructured decision making.
*DSS use internal information from TPS and MIS; they often bring in
information from external sources such as current stock prices or product
prices of competitors. DSS have more analytical power then other systems.
It is an interactive system in which user can change assumptions, ask new
questions and include new data.

*A Decision Support System (DSS) is an interactive computer-based system,
which helps decision-makers utilize data and models to solve unstructured
problems.
*Decision support systems couple the intellectual resources of individuals
with the capabilities of the computer to improve the quality of decisions. It
is a computer-based support system for management decision-makers who
deal with semi-structured and unstructured problems.
*A decision support system is an information system whose primary purpose
is to provide knowledge workers with information on which to base
informed decisions.
*The decision support systems take the data and present it in various formats
to aid the individual or group in reaching a decision. The decision support
systems are generally used by the highest level of management as an aid for
the unstructured decisions they have to make.
*A decision support system provides facilities for verification of information
integrity, and for discovery of discrepancies in received information.
Statistical methods and rule-based systems provide some tools for the
analysis and pre-processing of data used for generation and evaluation of
alternative decisions.

*A decision support system is a computer-based system consisting of
three interacting components:
*1. A language system: A mechanism to provide communication
between the user and other components of the DSS,
*2. A knowledge system: The repository of problem domain
knowledge embodied is DSS either as data or procedures, and
*3. A problem processing system: The link between the other two
components, containing one or more of the general problem-
handling capabilities required for decision-making.
*So, a decision support system is:
*(a) An information system
*(b) Which is used by managers
*(c) In making decisions
*(d) And to support, not to replace people
*(e) Used when the decision is semi-structured or unstructured
*(f) Incorporate a database of some sort
*(g) It also incorporates models

*4. KWS (Knowledge Work System) and Office Systems: KWS and
office systems serve the information needs at the knowledge level of
organization. Knowledge work system aid knowledge workers
whereas office systems primarily aid data workers. Knowledge
workers are people who hold formal university degrees and who are
often members of recognized profession such as engineers, doctors,
lawyers, scientists, etc. Their jobs consist primarily of creating new
information and knowledge. Data workers typically have less formal
advanced educational degrees and tend to process rather than
create information. They consist primarily of secretaries, book-
keepers, filing clerks or managers whose jobs are principally to use
and manipulate information.
*

*5.ESS (Executive Support System) :
*It is the information system at the organizations strategic level
designed to address unstructured decision making through advanced
graphic and communication. ESS is designed to incorporate data
about external events such as new tan laws and competitors. They
filter, compares and track critical data, emphasizing the reduction of
time and effort required to obtain information useful to executive.
ESS employs the most advanced graphic software and can deliver
graphs and data from many sources immediately to a senior
executive’s office or to a board room.

*The Nature of Executive’s Work
*We now know the basics of ESS. Now before continuing further I want to
discuss the nature of an executives work. This means that which type of
work executives normally do or perform for which they require not a DSS
but ESS.
*This is highly required before building an ESS because without the
knowledge of executives work we cannot decide about the system which is
suitable for him.
*Basically manager’s role is divided into three categories:
* Interpersonal Role: Roles like figurehead, leader, and liaison
* Informational Roles: Roles of monitor, disseminator, spokesperson
* Decisional Roles: Entrepreneur, disturbance handler, resource alligator,
negotiator.
*Most of the ESS support all these roles for executive’s successful working.
*If we pay attention then we can see that for interpersonal roles and
informational roles with very few advances to DSS the executives can start
using ESS. But executives mainly require the ESS for decisional roles.

*We divide the work of executives in relation to the decision roles into 2
phases:- Phase 1 is the identification of problems or opportunities. Phase 2
is the decision of what to do about it.
*The figure below provides the flowchart that describes about the process of
information flow in decisional roles.
*Functional units like finance, production, accounting, and personnel, etc.
generate the internal information. The external information comes from the
sources such as online databases, newspaper, industry newsletters,
government reports, personal contacts, etc.
*We know that the combined information is very important because that is
the source needed for successful competition and survival. As the data is
large the information is needed to be scanned further.
*The collected information is then checked and verified for its correction
that is it is evaluated for the further use of the organization. Finally, the
evaluated information is sent for qualitative or quantitative analysis.
*Then the executive makes a decision whether an opportunity occurs or
*problem occurs. If there is a problem then information is given as an input
for the next step else it is again scanned for further evaluation.
*Finally the executives take the decision.

*Advantages of ESS:
*Advantages of ESS are:
* Simple for high-level executives to use Operations do not require
extensive computer experience.
* Provides timely delivery of company summary information.
* Provides better understanding of information.
* Filters data for better time management.
* Provides system for improvement in information tracking.
*Disadvantages of ESS
*Disadvantages of ESS are:
* Computer skills required to obtain results.
* Requires preparation and analysis time to get desired information.
* Detail oriented Provides detailed analysis of a situation.
* Difficult to quantify benefits of DSS, How do you quantify a better decision?
* Difficult to maintain database integrity.
* Provides only moderate support of external data and graphics capabilities.

*According to functions or behaviour IS can be
divided into following types:-
* Sales and Marketing System
* Manufacturing and Production Systems
* Finance and Accounting Systems
* Human Resources Systems
*1.Sales and Marketing System :
*The sale and marketing function is responsible for selling the
organization’s products or services. Marketing is concerned with
identifying the customers for the firm’s products or services,
determine what they need or want, planning and developing
products and services to meet their needs, and advertising and
promoting these products and services.

*Sales are concerned with contacting customers, selling the
products and services, taking orders and following up on sales.
Sales and marketing information systems support these
activities (example)

*2. Manufacturing and Production Systems :
*The manufacturing and production function is responsible for
actually producing the firm’s goods and services. Manufacturing and
production activities deal with the planning, development, and
maintenance of production facilities; the establishment of
production goals; the acquisition, storage, and availability of
production materials; and the scheduling of equipment, facilities,
materials, and labour required to fashion finished products.
Manufacturing and Production information systems support these
activities (example)

*3. Finance and Accounting Systems :-The finance function is
responsible for managing the firm’s financial assets, such as cash, stocks,
bonds, and other investments, in order to maximize the return on these
financial assets. The finance function is also in charge of managing the
capitalization of the firm. In order to determine whether the firm is getting
the best return on its investments, the finance function must obtain a
considerable amount of information from sources external to the firm.
*The accounting function is responsible for maintaining and managing the
firm’s financial records-receipts, depreciation, payroll to account for the
flow of funds in a firm. Finance and accounting share related problems such
as how to keep track of a firm’s financial assets and fund flows. Financial
and accounting information system keep of the firm’s financial assets and
fund flows.

*4. Human Resources Systems :-
*The human resource function is responsible for attracting,
developing, and maintaining the firm’s workforce. Human resources
information systems support activities such as identifying potential
employees, maintaining complete records on existing employees,
and creating programs to develop employees’ talents and skills.
*Strategic-level human resources system identify the employee
requirements (skills, educational level, types of positions, number of
positions, and cost) for meeting the firm’s long term business plans.

Contemporary Approach to Information System :- MIS combines the work of
computer science, management science, and operations research with a practical
orientation toward developing system solutions to real-world problems and managing IT
resources. There are several different approaches to Information Systems: technical,
behavioural, sociotechnical
* Technical Approach :-
* - It emphasis mathematically based models to study Information
System, as well as the physical technology and formal capabilities
of these systems.
* - The disciplines that contribute to technical approach are computer
science, management science and operation research.
* - Computer science is concerned with establishing theories of
computability, methods of computation and methods of efficient
data storage and access.
* - Management science emphasis the development of models for
decision making and management practices.
* - Operations research focuses on mathematical techniques for
optimizing selected parameters of organization such as
transportation, inventory control and transaction cost.
Computer science is concerned with establishing theories of computability, methods of
computation, and methods of efficient data storage and access. Management science
emphasizes the development of models for decision-making and management practices.
Operations research focuses on mathematical techniques for optimizing selected
parameters of organizations, such as transportation, inventory control, and transaction
costs.

OR-Technical Approach:-
The technical approach to information systems emphasizes mathematically based models to
study information systems, a well as the physical technology and formal capabilities of these
systems.
The disciplines that contribute to the technical approach are:
Computer science,
Management science
Operations research
Computer science is related with instituting speculations of computability, methods of
computation, and techniques of efficient data storage and access.
Management science highlights the expansion of models for decision-making and management
practices.
Operations research concentrates on mathematical techniques for optimizing chosen
parameters
of organizations like transportation, inventory control, and transaction costs.
From a technical approach, an information system is observed from a mathematical point of
view.
Mathematical models are used to study information systems and to elucidate how they
can be applied. By means of a technical perspective, management would like to establish
speculations of computability which can be utilized to recognize how to apply information
systems.

2. Behavioural Approach :-
*- It is concern with behavioural issues that arise in the development and
long term maintenance of information system.
*- Issues such as strategic business integration design, implementation,
utilization and management cannot be explored usefully with the models
used in technical approach.
*- Other behavioural contribute system with an eye toward how group and
organizations shape the development of the system and also how systems
affect individuals groups and organizations.
*- Psychologist study information system with an interest in how human
decision makers perceive and use formal information.
*- Economist study information system with an interest in what impact
systems have on control and cost structures within the firm and within
markets.
*- Behavioural approach does not ignore technology. Indeed information
system technology is often the stimulus for a behavioral problem or issues.
*- Focus of behavioural approach is generally not on technical solutions.
Instead, it concentrates on attitudes, management and organizational
policy and behavioural.

3. Sociotechnical Approach:-
Information systems are sociotechnical systems. Although they are
composed of machines, devices, and "hard" physical technology, they
require substantial social, organizational, and intellectual investments
to make them work properly. Since problems with information
systems—and their solutions—are rarely all technical or behavioural, a
multidisciplinary approach is needed.
OR
In the sociotechnical view of systems, optimal organizational
performance is achieved by jointly optimizing both the social and
technical systems used in production.

*Information technology (IT)
*Information technology (IT) is the use of computers to store or
retrieve data and information. IT is typically used within the context
of business operations as opposed to personal or
entertainment technologies. IT is considered to be a subset
of information and communications technology (ICT).
*An information technology system (IT system) is generally
an information system, a communications system, or, more
specifically speaking, a computer system – including
all hardware, software, and peripheral equipment – operated by a
limited group of IT users.
*Information management technology refers to the processes,
systems, hardware, and software a company uses to conduct its day-
to-day operations. There are very few business processes that do not
depend or cannot benefit from information management
technology.

*Information technology is the study, design, development,
implementation, support or management of computer-based
information systems—particularly software applications and
computer hardware. IT workers help ensure that computers work
well for people.

*Emerging Trends in Information Technology:-
*According to Information Technology Association of
America, information technology is defined as “the study,
design, development, application, implementation,
support or management of computer-based information
systems.”
*Information technology has served as a big change agent
in different aspect of business and society. It has proven
game changer in resolving economic and social issues.
*There are several emerging digital trends impacting the
information technology sector as a whole. The IT industry
has been experiencing a consistent expansion and growth
in its capabilities. As the information technology sector
continues to expand, the available job opportunities,
organizational structure, and available technologies of the
IT industry has significantly changed.

Emerging IT technologies have already significantly
impacted major industries like entertainment,
business, education, law enforcement, and
marketing.
Advancement and application of information
technology are ever changing.
Some of the trends in the information technology
are as follows:
Cloud computing, The Internet of Things (IoT), Big
Dta, Cyber security, Automation, Artificial
Intelligence, & Machine Learning, Virtual relating,
Block chain & 3D printing etc.

*One of the most talked about concept in information technology is
the cloud computing. Clouding computing is defined as utilization of
computing services,
*Automation, artificial intelligence, and machine learning are one of
the most advanced emerging technologies impacting the information
technology sector as a whole. Automation is he simulation of human
intelligence tasks through machines and computer systems.
* AI-empowered systems possess the machine ability to think and
learn. When properly deployed, artificial intelligence can be utilized
to optimize tasks, streamline efficiency, and minimize errors. In the
business world, AI is commonly deployed to streamline customer
communications, process digital orders, deliver cognitive insight, and
resolve customer issues. Many experts have even predicted that AI is
the future of work. Automation, AI, and machine learning are one of
the largest growing digital trends impacting the IT industry.

*IT Capabilities and their organizational impact

The Impact of IT on Organizations
"Many of the impacts of Information Technology are
straightforward. But they are not necessarily obvious, nor
are they trivial"
(Jack Nilles, Centre for Future Research)
Information technology (IT) is dramatically changing the
business landscape. Although organization cultures and
business strategies shape the use of IT in organizations,
more often the influence is stronger the other way round.
IT significantly affects strategic options and creates
opportunities and issues that managers need to address in
many aspects of their business.

The some of the key impacts of technology and the implications for
management on:
Business strategy - collapsing time and distance, enabling electronic
commerce
Organization Culture - encouraging the free flow of information
Organization Structures - making networking and virtual corporations a
reality
Management Processes - providing support for complex decision making
processes
Work - dramatically changing the nature of professional, and now
managerial work
The workplace - allowing work from home and on the move, as
in telework.

IT enabled services Or-Information Technology Enabled
Services (ITeS):-
*ITES, Information Technology Enabled Service, is defined as
outsourcing of processes that can be enabled with information
technology and covers diverse areas like finance, HR, administration,
health care, telecommunication, manufacturing etc. Armed with
technology and manpower, these services are provided from e-enabled
locations. This radically reduces costs and improve service standards. In
short, this Internet service provider aims in providing B2B e-commerce
solutions.
*OR-
*IT enabled Services (ITeS), also called web enabled services or remote
services or Tele-working, covers the entire gamut of operations
which exploit information technology for improving efficiency of
an organization. These services provide a wide range of career options
that include opportunities in call Centre, medical transcription, medical
billing and coding, back office operations, revenue claims processing,
legal databases, content development, payrolls, logistics management,
GIS (Geographical Information System), HR services, web services etc

*Some of the most important areas where IT enabled services can be
deployed are:
*Some of the services offered include :
*• Medical Transcription
*• Document Processing
*• Data Entry and Processing
*• Data Warehousing
*• IT Help Desk Services
*• Application Development
*• Enterprise Resource Planning
*• Telecommunication Services
Telemarketing
* Helpdesk
* Customer Support Centres
* Data Ware House
* Transcription Centres
* GIS Mapping for Transport tracking
* Electronic Distribution.

*Types of information:-
Conceptual information
Here are some examples of conceptual information:

* 2. Procedural information
Here are two examples of procedural information:
Riding a bicycle:
Driving a car:
Tying a shoelace

* 4. Stimulatory information
Here are other examples of stimulatory information:

* 6. Directive information:-
Here are some examples of directive and descriptive information:

* 5. Empirical information
Here are several examples of empirical information, rooted in
science:

* 3. Policy information:-
Here are some examples of policy information:

* Other classifications of information
Factual information
Analytical information:
Subjective informa
Objective information

Attributes of Information:-
There are various types attributes of information -
Accuracy :
2. Relevance
What, Why, Where, When,
Who, and How
For example

Quality,
Form Utility
• Time Utility
• Place Utility
• Possession Utility

Decision Making Models:
The decision-making process though a logical one is a difficult task. All
decisions can be categorized into the following three basic models..
(1) The Rational/Classical Model of decision-making
(2) The Administrative or Bounded Rationality Model of Decision-
making
(3) The Retrospective Decision-Making (पूर्वव्यापी निर्वय लेिा) Model.
1. The Rational/Classical Model of decision-making:-
The rational model is the first attempt to know the decision-
making-process. It is considered by some as the classical
approach to understand the decision-making process.
A classical decision model is a prescriptive approach that guides
management on how it should make a decision. It rests on the
assumption that managers are logical and rational and that they
make decisions that are in the best interest of the organization.

What is Rational Decision-Making Process?
Identify Problem
Decision Criteria
Allocate Weights
Develop Alternatives
Analyze Alternatives
Select an Alternative
Implement the Decision
Evaluate the Effect

*Features of Classical Model:
*1. Problems are clear.
*2. Objectives are clear.
*3. People agree on criteria and weights.
*4. All alternatives are known.
*5. All consequences can be anticipated.
*6. Decision makes are rational.
i. They are not biased in recognizing problems.
ii. They are capable of processing ail relevant information
iii. They anticipate present and future consequences of decisions.
iv. They search for all alternatives that maximizes the desired results.
The classical model views the decision-making process:
i) Decision-makers have complete information about the decision situation
and possible alternatives,
ii) They can effectively eliminate uncertainty to achieve a decision
condition of certainty,
iii) They evaluate all aspects of the decision situation logically and
rationally.

However, these conditions rarely, if ever, actually exist. This model may be
represented in the following diagram:

*2.Bounded Rationality Model or Administrative Model of Decision-making:
Herbert A. Simon was of the first few scholars to recognize that
decisions are not always made with rationality and logic. Simon, a
winner of the Nobel Prize in Economics, instead of prescribing how
decisions should be made, describes how decisions often actually are
made.
Decision-making involve the achievement of a goal. Rationality
demands that the decision-maker should properly understand the
alternative courses of action for reaching the goals.
*He should also have full information and the ability to analyse
properly various alternative courses of action in the light of goals
sought. There should also be a desire to select the best solutions by
selecting the alternative which will satisfy the goal achievement.
*Herbert A. Simon defines rationality in terms of objective and
intelligent action. It is characterized by behavioral nexus between
ends and means. If appropriate means are chosen to reach desired
ends the decision is rational.
*Bounded Rationality model is based on the concept developed by
Herbert Simon. This model does not assume individual rationality in
the decision process.

*Instead, it assumes that people, while they may seek
the best solution, normally settle for much less,
because the decisions they confront typically demand
greater information, time, processing capabilities
than they possess. They settle for “bounded
rationality or limited rationality in decisions.
*The Administrative model holds that managers:
(i) Have incomplete and imperfect information,
(ii) Are constrained by bounded rationality, and
(iii) Tend to satisfies when making decisions.
As a matter of fact, the classical and administrative
models paint quite different pictures of decision
making. The classical model is prescriptive: it explains
how managers can at least attempt to be more
rational and logical in their approach to decisions.

The administrative model can be used by
managers to develop a better understanding of
their inherent biases and limitation.

*3. Retrospective decision model (implicit favourite model):
*This decision-making model focuses on how decision-makers
attempt to rationalize their choices after they have been made
and try to justify their decisions. This model has been
developed by Per Soelberg. He made an observation regarding
the job choice processes of graduating business students and
noted that, in many cases, the students identified implicit
favorites (i.e. the alternative they wanted) very early in the
recruiting and choice process. However, students continued
their search for additional alternatives and quickly selected
the best alternative.
*The total process is designed to justify, through the guise of
scientific rigor, a decision that has already been made
intuitively. By this means, the individual becomes convinced
that he or she is acting rationally and taking a logical,
reasoned decision on an important topic.

MIS-KMBN-208-
UNIT-III-
Introduction
to
Database Management
System

MIS-KMBN-208-UNIT-III-Introduction to Database
Management System
01 Introduction to Database
Management System
11 Challenges of data
management
02 Types of DBMS 12 Data independence
03 Fields, Records, Table,
View, Reports and
Queries
13 Data redundancy
04 Data warehouse 14 Data consistency
05 Characteristics of Data
warehouse
15 Data administration.
06 Uses of Data warehouse 16 Database Management System
(Lab):
07 Data mining -
Characteristics &
uses of Data warehouse
1 Basics of SQL and running
queries
08 Techniques of Data
Mining
2 Creation of Table,

Introduction to Database
Management System:
Before Study the Database
What is Database Management Systems
(DBMS)?:-
*Database Management Systems (DBMS) refer to the
technology solution used to optimize and manage the
storage and retrieval of data from databases. DBMS offers
a systematic approach to manage databases via an
interface for users as well as workloads accessing the
databases via software or apps.
*OR-
*Database Management System (DBMS) is a collection of
programs that enable its users to access databases,
manipulate data, report, and represent data. It also helps to
control access to the database. Database Management
Systems are not a new concept and, as such, had been first
implemented in the 1960s.

Function of DBMS:
1.Defining database schema: it must give facility for
defining the database structure also specifies access
rights to authorized users.
2.2. Manipulation of the database: The DBMS must
have functions like insertion of record into database
updating of data, deletion of data, retrieval of data
3.3. Sharing of database: The DBMS must share data
items for multiple users by maintaining consistency
of data.
4.4. Protection of database: It must protect the
database against unauthorized users.
5.5. Database recovery: If for any reason the system
fails DBMS must facilitate data base recovery.

*Components of DBMS:-
*In order to facilitate these functions, DBMS has the following key
components:
*Software. DBMS is primarily a software system that can be
considered as a management console or an interface to interact with
and manage databases. The interfacing also spreads across real-
world physical systems that contribute data to the backend
databases. The OS, networking software, and the hardware
infrastructure is involved in creating, accessing, managing, and
processing the databases.
*Data. DBMS contains operational data, access to database records
and metadata as a resource to perform the necessary functionality.
The data may include files with such as index files, administrative
information, and data dictionaries used to represent data flows,
ownership, structure, and relationships to other records or objects.
*Procedures. While not a part of the DBMS software, procedures can
be considered as instructions on using DBMS. The documented
guidelines assist users in designing, modifying, managing, and
processing databases.

Database languages
Query processor.

*Runtime database manager. A centralized management component
of DBMS that handles functionality associated with runtime data,
which is commonly used for context-based database access. This
component checks for user authorization to request the query;
processes the approved queries; devises an optimal strategy for
query execution; supports concurrency so that multiple users can
simultaneously work on same databases; and ensures integrity of
data recorded into the databases.
*Database manager. Unlike the runtime database manager that
handles queries and data at runtime, the database manager performs
DBMS functionality associated with the data within databases.
Database manager allows a set of commands to perform different
DBMS operations that include creating, deleting, backup, restoring,
cloning, and other database maintenance tasks. The database
manager may also be used to update the database with patches from
vendors.

Benefits of DBMS:-
*DBMS was designed to solve the fundamental problems associated
with storing, managing, accessing, securing, and auditing data in
traditional file systems.
*Traditional database applications were developed on top of the
databases, which led to challenges such as data redundancy,
isolation, integrity constraints, and difficulty managing data access.
A layer of abstraction was required between users or apps and the
databases at a physical and logical level.
*Introducing DBMS software to manage databases results in the
following benefits:
*Data security. DBMS allows organizations to enforce policies that
enable compliance and security. The databases are available for
appropriate users according to organizational policies. The DBMS
system is also responsible to maintain optimum performance of
querying operations while ensuring the validity, security and
consistency of data items updated to a database.

*Data sharing. Fast and efficient collaboration between users.
*Data access and auditing. Controlled access to databases. Logging
associated access activities allows organizations to audit for security
and compliance.
*Data integration. Instead of operating island of database resources, a
single interface is used to manage databases with logical and physical
relationships.
*Abstraction and independence. Organizations can change the
physical schema of database systems without necessitating changes
to the logical schema that govern database relationships. As a result,
organizations can upgrade storage and scale the infrastructure
without impacting database operations. Similarly, changes to the
logical schema can be applied without altering the apps and services
that access the databases.
*Uniform management and administration. A single console
interface to perform basic administrative tasks makes the job easier
for database administrator and IT users.

What is a Database? :-Before we learn about a database, let us understand
What is Data?:-
Data is any sort of information which is stored in computer
memory.
Or-Data is raw unprocessed facts and figures that have no
context or purposeful meaning and information is
processed data that has meaning and is presented in a
context.
Or-Data, in the context of databases, refers to all the single
items that are stored in a database, either individually or as a
set. Data in a database is primarily stored in database tables,
which are organized into columns that dictate the data types
stored therein. So, if the “Customers” table has a column titled
“Telephone Number,” whose data type is defined as “Number,”
then only numerals can be stored in that column.

OR-In simple words, Data is collection data can be
facts related to any object in consideration. For
example, your name, age, height, weight, etc. are
some data related to you. A picture, image, file,
pdf, etc. can also be considered data.
OR-Data is a raw and unorganized fact that is required
to be processed to make it meaningful. Data can be
simple at the same time unorganized unless it is
organized. Generally, data comprises facts,
observations, perceptions, numbers, characters,
symbols, images, etc.

What is Database:
Database is a collection of inter-related data which helps in
efficient retrieval, insertion and deletion of data from
database and organizes the data in the form of tables, views,
schemas, reports etc.
For Example, university database organizes the data about
students, faculty, and admin staff etc. which helps in efficient
retrieval, insertion and deletion of data from it.
A database is a systematic collection of data. They support
electronic storage and manipulation of data. Databases make
data management easy.
Example: An online telephone directory uses a database to store
data of people, phone numbers, and other contact details.
Your electricity service provider uses a database to manage
billing, client-related issues, handle fault data, etc.

BASIC TERMINOLOGY IN DATABASE MANAGEMENT SYSTEM:-
Basic Concepts:
Data is organized in a data storage hierarchy of increasingly complex
levels: bits, bytes (characters), fields, records, files, and databases.
A character is a letter, number, or special character. A field consists
of one or more characters (bytes).
A record is a collection of related fields. A file is a collection of
related records. A database is, as mentioned, an organized collection
of integrated files. Important to data organization is the key field, a
field used to uniquely identify a record so that it can be easily
retrieved and processed.
RDBMS:-
A Relational Database management System(RDBMS) is a database
management system based on relational model introduced by E.F
Codd. In relational model, data is represented in terms of
tuples(rows).

RDBMS is used to manage Relational database. Relational database is a
collection of organized set of tables from which data can be
accessed easily. Relational Database is most commonly used
database. It consists of number of tables and each table has its own
primary key.
Table :
In Relational database, a table is a collection of data elements
organized in terms of rows and columns. A table is also considered as
convenient representation of relations. But a table can have
duplicate tuples while a true relation cannot have duplicate tuples.
In a relational database, a tuple is one record (one row). Table is the
most simplest form of data storage. Below is an example of
Employee table.

1. Data and Data Item:-Data are simply collection of facts and
figures. Data are values or set of values. A data item refers to
a single unit of values. Data items that are divided into sub
items are group items; those that are not are called
elementary items.
For example, A student’s name may be divided into three-
sub items – [first name, middle name and last name]
but the ID of a student would normally be treated as a single
item.

In the above example ( ID, Age, Gender, First, Middle,
Last, Street, Area ) are elementary data items,
whereas (Name, Address ) are group data items.
Data Type:-
Data type is a classification identifying one of various
types of data, such as floating-point, integer, or
Boolean, that determines the possible values for that
type; the operations that can be done on values of
that type; and the way values of that type can be
stored.

*Record :
*A single entry in a table is called a Record or Row. A Record in a table
represents set of related data. For example, the above Employee
table has 4 records.
*Collection of related data items is known as record. The elements of
records are usually called fields or members. Records are
distinguished from arrays by the fact that their number of fields is
typically fixed, each field has a name, and that each field may have
a different type.
*Following is an example of single record.
1 Adam 34 13000
Field :-
*A table consists of several records(row), each record can be broken
into several smaller entities known as Fields. The above Employee
table consist of four fields, ID, Name, Age and Salary.
*File:-
*File is a collection of records of the entities in a given entity set.
*For example, file containing records of students of a particular class.

* Entity:-An entity is something that has certain attributes
or properties which may be assigned some values. The
values themselves may be either numeric or non-numeric.
Example:
Entity Set:-
*An entity set is a group of or set of similar entities. For example,
employees of an organization, students of a class etc. Each attribute
of an entity set has a range of values, the set of all possible values
that could be assigned to the particular attribute.
*The term “information” is sometimes used for data with given
attributes, of, in other words meaningful or processed data.

Field:-
*A field is a single elementary unit of information representing an
attribute of an entity, a record is the collection of field values of a
given entity and a file is the collection of records of the entities in a
given entity set.
Key:-
*A key is one or more field(s) in a record that take(s) unique values
and can be used to distinguish one record from the others.
Column :-
*In Relational table, a column is a set of value of a particular type.
The term Attribute is also used to represent a column. For example, in
Employee table, Name is a column that represent names of
employee.
*Name
*Adam
*Alex

Types of Databases
*Here are some popular types of databases.
*1. Distributed databases:
*A distributed database is a type of database that has contributions
from the common database and information captured by local
computers. In this type of database system, the data is not in one
place and is distributed at various organizations.
*2. Relational databases:
*This type of database defines database relationships in the form of
tables. It is also called Relational DBMS, which is the most popular
DBMS type in the market. Database example of the RDBMS system
include MySQL, Oracle, and Microsoft SQL Server database.
*3. Centralized database:
*It is a centralized location, and users from different backgrounds can
access this data. This type of computers databases store application
procedures that help users access the data even from a remote
location.

*4. Open-source databases:
*This kind of database stored information related to operations. It
is mainly used in the field of marketing, employee relations,
customer service, of databases.
*5. Cloud databases:
*A cloud database is a database which is optimized or built for
such a virtualized environment. There are so many advantages of
a cloud database, some of which can pay for storage capacity and
bandwidth. It also offers scalability on-demand, along with high
availability.
*6. Data warehouses:
*Data Warehouse is to facilitate a single version of truth for a
company for decision making and forecasting. A Data warehouse is
an information system that contains historical and commutative
data from single or multiple sources. Data Warehouse concept
simplifies the reporting and analysis process of the organization.

*7. NoSQL databases:
*NoSQL database is used for large sets of distributed data. There are a
few big data performance problems that are effectively handled by
relational databases. This type of computers database is very
efficient in analyzing large-size unstructured data.
*8. Graph databases:
*A graph-oriented database uses graph theory to store, map, and
query relationships. These kinds of computers databases are mostly
used for analyzing interconnections. For example, an organization
can use a graph database to mine data about customers from social
media.
*9. OLTP databases:
*OLTP another database type which able to perform fast query
processing and maintaining data integrity in multi-access
environments.

*10. Personal database:
*A personal database is used to store data stored on personal
computers that are smaller and easily manageable. The data is
mostly used by the same department of the company and is accessed
by a small group of people.
*11. Multimodal database:
*The multimodal database is a type of data processing platform that
supports multiple data models that define how the certain
knowledge and information in a database should be organized and
arranged.
*12. Document/JSON database:
*In a document-oriented database, the data is kept in document
collections, usually using the XML, JSON, BSON formats. One record
can store as much data as you want, in any data type (or types) you
prefer.
*13. Network DBMS:
*This type of DBMS supports many-to-many relations. It usually results
in complex database structures. RDM Server is an example of
database management system that implements the network model.

Introduction to Data Warehousing:
Definition, Concept, and Techniques
In computing, a data warehouse, also known as an enterprise
data warehouse, is a system used for reporting and data
analysis and is considered a core component of business
intelligence. DWs are central repositories of integrated data
from one or more disparate source
OR
Data Warehousing may be defined as a collection of
corporate information and data derived from operational
systems and external data sources. A data warehouse is
designed with the purpose of inducing business decisions by
allowing data consolidation, analysis, and reporting at
different aggregate levels.

*Data warehouse system is also known by the following name:
*Decision Support System (DSS)
*Executive Information System
*Management Information System
*Business Intelligence Solution
*Analytic Application
*Data Warehouse

*A Data Warehouse works as a central repository where
information arrives from one or more data sources.
*Data flows into a data warehouse from the transactional
system and other relational databases.
*Data may be:
*Structured
*Semi-structured
*Unstructured data
The data is processed, transformed, and ingested so that
users can access the processed data in the Data Warehouse
through Business Intelligence tools, SQL clients, and
spreadsheets.
A data warehouse merges information coming from different
sources into one comprehensive database.

* Data Warehousing Types:-
*The three main types of Data Warehouses are:
1. Enterprise Data Warehouse
2. Operational Data Store
3. Data Mart
*1. Enterprise Data Warehouse (EDW):
Enterprise Data Warehouse (EDW) is a centralized warehouse. It provides
decision support service across the enterprise. It offers a unified approach
for organizing and representing data. It also provide the ability to classify
data according to the subject and give access according to those divisions.
*2. Operational Data Store:
Operational Data Store, which is also called ODS, are nothing but data store
required when neither Data warehouse nor OLTP systems support
organizations reporting needs. In ODS, Data warehouse is refreshed in real
time. Hence, it is widely preferred for routine activities like storing records
of the Employees.
*3. Data Mart:
A data mart is a subset of the data warehouse. It specially designed for a
particular line of business, such as sales, finance, sales or finance. In an
independent data mart, data can collect directly from sources.

*Key Characteristics of a Data Warehouse:-
*The key characteristics of a data warehouse are as follows:
*Data is structured for simplicity of access and high-speed
query performance.
*End users are time-sensitive and desire speed-of-thought
response times.
*Large amounts of historical data are used.
*Queries often retrieve large amounts of data, perhaps many
thousands of rows.
*Both predefined and ad hoc queries are common.
*The data load involves multiple sources and
transformations.
*In general, fast query performance with high data
throughput is the key to a successful data warehouse.

Characteristics of Data warehouse:-
Data warehouse can be controlled when the user
has a shared way of explaining the trends that are
introduced as specific subject.
Below are major characteristics of data warehouse:
1. Subject-oriented
2. Integrated
3. Time-Variant
4. Non-Volatile

1. Subject-oriented –
A data warehouse is always a subject oriented as it delivers information
about a theme instead of organization’s current operations. It can be
achieved on specific theme. That means the data warehousing process is
proposed to handle with a specific theme which is more defined. These
themes can be sales, distributions, marketing etc.
A data warehouse never put emphasis only current operations. Instead, it
focuses on demonstrating and analysis of data to make various decision. It
also delivers an easy and precise demonstration around particular theme
by eliminating data which is not required to make the decisions.
2. Integrated –
It is somewhere same as subject orientation which is made in a reliable
format. Integration means founding a shared entity to scale the all similar
data from the different databases. The data also required to be resided
into various data warehouse in shared and generally granted manner.
A data warehouse is built by integrating data from various sources of data
such that a mainframe and a relational database. In addition, it must
have reliable naming conventions, format and codes. Integration of data
warehouse benefits in effective analysis of data. Reliability in naming
conventions, column scaling, encoding structure etc. should be
confirmed. Integration of data warehouse handles various subject related
warehouse.

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