information system and computers

INFORMATION SYSTEM AND
COMPUTERS

INTRODUCTION
In today’s world of ever increasing complexities of business,
technology and
management, every business organization wants to grow and keep
the firm in good
strategic position. This is possible only if the firm has adequate,
quick and reliable
information about the contemporary business environment.
Information technology and
information system is one such tool to provide information required
by the business
organization and its stake holders so that managers can initiate
decisions which help
growth of the organization. The globalization context makes the
product and market as
global.

An information system has a set of interrelated components that collect (or retrieve),
process, store, and distribute information to support decision making and control in an
organization. An information system has an organized combination of People, Hardware
and Software, Communication networks, Data resources and Policies and procedures.
INFORMATION SYSTEM;
 Data ; data means Raw facts about a
particular thing  Information;
Data has been put into
meaningful and useful context is called
information

Types of information
 2.2 Different types of information
 a. Environmental information
 i. Government policies
 ii. Economic trends
 iii. Technological environment
 iv. Factors of production
 b. Competitive information
 i. Industry demand
 ii. Firm demand
 iii. Competition
 iv. Past performance
 v. Present activity
 vi. Future plans
 c. Internal information
 i. Sales forecast
 ii. Financial plan
 iii. Supply factors
 iv. Policies

system
 A system is composed with
set of interrelated
components which has a
clearly
 defined boundary and
working together to achieve
a common set of objectives
by
 accepting inputs and
producing outputs in an
organized transformation
process. The
 simple system is shown in
figure 1.1.

information system and computers

INFORMATION
TECHNOLOGY
Hardware
Software
Databases
Networks
Other related
components
are used to build
INFORMATION
SYSTEMS
Payroll
System
Inventor
y System
Marketin
g System
Customer
Service
System
IT v/s IS

Interdependence between
organization & information
system

Computer-based
Information System
An Information System is an
organized combination of people,
hardware, software,
communication networks and the
data resources that collects,
transforms and disseminates
information in a organization.

OBJECTIVES
 1) provide information
 2) to reduce risk
 3) internal research
 4) identifying the problems
 5) to provide information regarding sales & other marketing
activities

NEEDS
1) Competition
2) Long term survive
3) Customer satisfaction
4) Market stability
5) To adopt technology

role
 1. Support Business Process and Operations.
 2. Support Business Decisions.
 3. Support strategies {systematic plan of
action} for competitive advantages
 Cost reduction and productivity
 Performance based management

importance
 Minimizing risk in DM
 Helps in preparation of corporate reports
 Helps for long term survive
 Helps in formulation of pricing policies
 Helps in customer satisfaction

Introduction:
Firm/Organization (functions)
Operational
level
management
Middle level
management
Senior level
Management

Subjective:
Information systems(software programs &
applications) at different level
management
In fig.

Chart Diagram
S
O
F
T
W
A
R
E
P
R
O
G
A
M
E
S
TPS
MIS
DSS
ESS
PCS
GDSS

Explanation:
 Transaction processing system-TPS:
Applications Used by Operational level
managers.
Ex: payroll of an employee of firm
•Employee no
•Employee name
•Address
•Pay-rate
•Medicare
•ICPS
Time card

Explanation:
 Management information system-MIS:
Designed for middle level managers.
Ex: Sales report of the company
 Increase in sales
 Decision support systems-DSS:
Used by shipping agency

Explanation:
 Executive support system-ESS:
Name it self suggest used by the senior most
level managers of the firm in the forms of
graphs, pie-charts, for the comparison
company’s growth, changes etc.,
 Chief Executive Officers(CEO’s)

Ex: Graphs and charts
Sales
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr

0
1
2
3
4
5
6
Category 1 Category 2 Category 3 Category 4
Series 1
Series 2
Series 3

0
10
20
30
40
50
60
70
0
50
100
150
200
1/5/2002 1/6/2002 1/7/2002 1/8/2002 1/9/2002
Volume
High
Low
Close

Group Decision support system
DSS CAN BE USEFUL IN THE INFORMATION SYSTEM
NOT ONLY BY GIVING INDIVIDUAL DECISION MAKER.
THE MEANS OF LEARNING MORE ABOUT DECISION
PROBLEMS BUT ALSO IN COMMUNICATING IDEAS TO
OTHER
EXCHANGE OF IDEAS WITH IN A GROUP ORGANIZING
COLLECTIVE THOUGHT THOUGHT IN TO COLORABLE
CONSENSUS

AN EXPERT SYSTEM IS SOFTWARE THAT CONTAINS A
KNOWLEDGE BASE OF FACTS AND RELATIONSHIPS AND HAS
THE ABILITY TO MAKE INTERFACE BASED ON THAT
KNOWLEDGE BASE

Advantages of expert system
 It improves quality by providing consistent advice and by making
reduction in the error rate.
 Expert system also has educational benefits of gives training
experience and explanation facilities
 Maintain control over the organization
 Make better decision by considering more alternative
 It evaluate results.

Disadvantages of expert
system
 The designing and construction of expert system
require engineer so if very costly
 Expressing facts and relations is frequently limited
Most experts have no independent means of checking
whether those conclusion are reasonable or not
 It is costly to develop and maintain
 It can’t apply to unstructured or semi structured
problem.

intelligence
EVERY ORGANIZATION DEPENDS ON THE KNOWLEDGE AND
SKILL OF IT’S BUSINESS.
ALL HUMAN BEING HAVE INTELLIGENCE WHICH THEY USE
FOR PROBLEM SOLVING INTELLIGENCE WHAM SUPPORTED BY
KNOWLEDGE AND REASONING ABILITIES BECOME A ARTIFICIAL
INTELLIGENCE.

Areas of Artificial intelligence
 Expert system: It is knowledge based system here
expert(computer) uses knowledge and applies human
 Natural language: It concerned with the development
of human language computer faces and with the
translation of human language
 Vision system: technology required for computer
system
 Pattern recognition system: It attempts to identify
pattern in visual auditory
 Robotics: it is concerned with the development of
industrial robots like fitting, welding

Information system in levels
of management
 Top level management
 Middle level management
 Lower level management
Task location function level strategic planning
management. Top management control office planning
and Middle operational control factory field execution
supervisory

Management is getting things done trough other
Strategic planning:
* Deciding objectives of organization
* Formulating policies to govern
* Procurement and plan to use resource
Management control:
* Measure performance
* Decide on control action
* Formulate New decision rules.
Operational control:
* It makes use of pre-established procedure and
decision rules

MEANING
MIS is a system of people
equipment, procedures, documents and
communication that collect validates
operates, transforms', stores, retrieves, and
presents data for use in management
process .
37

DEFINITION
MIS is a structured to provide the
information need, when needed ,and
where needed”. It represents the internal
communication network of the business
providing necessary intelligence to plan
execute and control.
-F.B CORNISH
38

CHARACTERISTICS
1.MIS IS AN INTEGRATIVE SYSTEM:
It provide information meaningful and timely,
complete. And relevant information.
2.MIS IS FLEXIBLE:
MIS must be designed to be easily modified
because of environment changes.
3.MIS TRANSFORMERS THE DATE INTO
INFORMATION:
MIS transformers the data into information
Example; cost data for a particular organization may
be summarized. On a full cost variable cost, standard
cost.
39

OBJECTIVES OF MIS
.It provide information for planning organizing
and controlling purpose.
.It provide information quickly and when
required.
.It reduce the risk and uncertainities.
.It also provide information about production
and investory
.Information about sales, production, price
market condition
.Information regarding financial health.
40

EXECUTIVE INFORMATION
SYSTEM (EIS)
An EIS is a set of computer based tools
with features such as color, graphics, touch
screen voice activated commands natural
language interface that help manager to
quickly retrieve summarize of data.
It delivery and display of information
rather than the analysis. It provide selected
and summarized information for senior
executives in long range planning and
strategic desicion.
41

CHARACTERISTICS OF EIS
1.Intelligent support system designed to provide
middle and top managers with information
necessary to make decision
2.EIS use internal and external data to solve
problems
ANOTHER CHARACTERISTICS
.What if” analysis
.Goal seeking
.Risk analysis
.Graphical analysis.
42

OFFICE AUTOMATIC SYSTEMS
(OAS)
Use of mechanical, electrical and electronic
devices to entrance, communication in the workplace
and increase efficiency and productivity of knowledge
workers and clerical work.
It includes-
1.Word processing :
To create written documents such as letters,
memo’s and reports that are directed to the manager.
2.E-mail :
It allows user to send, store and receive messger.
3.Voice mail :
It perform storing, accessing, retrieving and
43

4.Audio conferencing :
Geographically dispersed, conference
call which allows more than two people to
participate in a telephone conversation.
5.Video conferencing :
It engage in face to face
communication.
6.Facsimile transaction :
It know also Fax transfers of written or
pictorial information by the use of special
equipment that can read and document
image one and communication channel to
make a copy at other and.
44

7.Video text :
It use of computer for displaying a stored
narrative and graphic material on a CRT screen.
8.Imaging :
optical character recognition to convert paper or
micro film record to a digital format to store in a second
storage device.
9.Mulimedia :
It helps create process store and display
information in broad variety of format.
That store retrieve and process different types of data
such as text graphics images video audio
45

Office workers
1.MANAGERS : Finance, R&D,Market,Production
2.STAFF PROFESSIONALS :
Support the activities of manager in analsing and
planning.
3.LINE PROFESSIONALS :
Sales person and purchasing agent interact with
customer & supplier.
4.SECRETERIES:
Workers in office they perform task as typing
filing answering phone.
46

DECISION SUPPORT SYSTEM
(DSS)
A DSS is that system which helps the
management in taking the decisions.
CHARACTERISTCS OF DSS
1.It organize information intended for use in
decision making.
2.To help support decisions that are
formulated, complex problems remain
resistant to complete computerization .
3.DSS may be constructed to support one
time decision.
47

DEFINITION
 The collection, storage and processing of financial and accounting
data that is used by decision makers. The reports can be used
internally by management or externally by other interested parties
including investors, creditors and tax authorities.

MARKETING INFORMATION SYSTEM
(MIS)

DEFINITION
According to Philip Kotler Marketing
information system is a planned system
of collecting, processing, storing and
disseminating data in the form of
information needed to carry out the
functions of management.

MEANING OF HRIS
A HRIS, which is also known as a human
resource information system or human
resource management system (HRMS), is
basically an intersection of human
resources and information technology
through HR software. This allows HR
activities and processes to occur
electronically.

HRIS USERS
.HR professionals (Such as HR manager, HR
rep,etc)
.Support staff
.Lower level employees
.Middle level employees
.Upper level employees
.Executives and directors

HRIS SOFTWARES
. Abra suite
. ABS(Atlas Business Solutions)
. CORT:HRIS
. HRSOFT
. Human Resource Microsystems
. ORACLE -HRMS
. PEOPLESOFT
. SAP HR
. VANTAGE :HRA

HRIS CHALLENGES
1. Lack of management commitment
2. Failure to involve/consult significant
groups
3. Lack of communication
4. Failure to keep project team intact
5. Failure to include key people
6. No or poorly done needs analysis
7. Bad timing (time of year and duration)

ERP- Definition:
ERP is a process of managing all resources and their use in
the entire enterprise in a coordinated manner.
What is ERP
 Enterprise resource planning.
 Support business through optimizing, maintaining
and tracking business functions.

ERP System: Definition
ERP is set of integrated business applications, or modules which
carry out common business functions such as general ledger,
accounting or order management.
It is used by every department in an organization and by most
employee
I shown you a list of resources used by various department of a company

 The sales department can check prices of products and
their inventory levels, enter sales orders from customers,
make deliveries, issue invoices to customers and receive
payments.
 The production department uses it to check inventory
balances of products, create production orders, manage
production schedules, record the receipt of finished or in-
progress orders.
 The marketing department can plan demand and make
sales forecasts for the next sales period. The finance
department uses it to manage accounts payables,
accounts receivables, enter payments made by customers
and payments made to suppliers, generate the balance
sheet and profit and loss statements at the end of an
accounting period.

 The human relations department tracks all employees in a
company, their title, date of joining, department, and
salary. Every new employee is added to the system as soon
as they join the company. If they quit or are fired, this is
also reflected in the system, but their information is still
retained for historical records.

When you store your photos online instead of on your home
computer, or use webmail or a social networking site, you are
using a “cloud computing” service. If you are an organization,
and you want to use, for example, an online invoicing service
instead of updating the in-house one you have been using
for many years, that online invoicing service is a “cloud
computing” service.
Meaning – Cloud Computing
Cloud computing refers to the delivery of computing
resources over the Internet. Instead of keeping data on your
own hard drive or updating applications for your needs, you
use a service over the Internet, at another location, to store
your information or use its applications. Doing so may give
rise to certain privacy implications.

Cloud computing is the delivery of computing services over
the Internet. Cloud services allow individuals and businesses
to use software and hardware that are managed by third
parties at remote locations.
Examples of cloud services include online file storage, social
networking sites, webmail, and online business applications.
The cloud computing model allows access to information
and computer resources from anywhere that a network
connection is available. Cloud computing provides a shared
pool of resources, including data storage space, networks,
computer processing power, and specialized corporate and
user applications.
Cloud Computing Definition

MANUFACTURING INFORMATION
SYSTEMS:
Manufacturing is a system that
supports the manufacturing
functions
Purchasing,Receiving,Quality,
Control, Inventory Management,
Material Requirements Planning,
Capacity Planning,Production
Scheduling & Plant Design.
81

THE MAIN SOURCES OF MANUFACTURING
INFORMATION
Production Data
Inventory Data
Vendor Data
Personnel Data
Union Data
Labour Data
External Environment
Data
Engineering
Specifications
Internal Marketing
Data
DATA BANK
External
Environment
Facility
Design
product
s
Other
Areas
Of Firm
Quality
Control
Production
Design
82

VENDOR
DATA
INVENTORY
DATA
PRODUCTION
DATA
83

PRODUCTION DATA:
By using terminals around the production floor,
Data on Production processes can be Quickly gathered and
processed. These data are used for Billing & in almost Every
Aspect of Production Control.
INVENTORY DATA:
Here, The Inventory data Include Inventories of
Raw Materials, Goods-in-Process, and Finished Goods.
VENDOR DATA:
Vendor Data Show Sources and Prices for Raw
Materials.
84

PERSONNEL DATA:
Personnel Data show various Statistics on current
Manufacturing Personnel in the course of Production, People
Switch Assignments, So personnel Skills must be Reviewed to
find the Right Person for the Right job.
UNION DATA:
Many types of Labour today are unionised
productions shops usually have strict Regulations Regarding
Such items as pay Scales, Hiring and Firing , Promotion and
Working Conditions.
EXTERNAL ENVIRONMENT DATA :
To Manufacturing Managers, the Most Pressing
Information need in the Area Of External Environment Data is
the Outlook for Raw Material Prices and Labour Availability.
86

DATA FLOW REPRESENTATION OF
MANUFACTURING INFORMATION
ENGINEERING
SPECIFACATION
INTERNAL
MARKETING
DATA
87

Engineering Specifications:
Engineering Specification contain such facts
as Sizes of Screens: Wheather a Certain Drill Bit is Suitable
for Wood, Metal or Masonry How to Build a Sub-Assembly
of a Certain Type.
Internal Marketing Data:
Marketing Ends Where Manufacturing
beigins, So Marketing Output is Manufacturing Input.
Marketing Data are also useful to Production
Personnel as part of the Engineering Design Process.
88

Manufacturing Goods and Services is the
Main Function of a Business.
The Main Objective was Reducing
Manufacturing Costs and Cutting Down
Cycle Times.
Manufacturing Information System also
Uses Databases and Networks.
89

Production is the process of making New Products from Raw
Materials.
Generally, the Production Process Consists of many Inter
Related Activities.
There are Two basic Types of Production Methods:
Job Shop & Process.
Most Production.
However, Production Integrates all the Resources Required to
make a Product:
Personnel.
Machines & Equipments.
Plant Capacity.
Pricing.
Distribution & Cost accounting.
90

SDLC, Software development life cycle is a process used
by software industry to design, develop and test high
quality software. The SDLC aims to produce a high
quality software that meets or exceeds customer
expectations, reaches completion within times and cost
estimates.

A typical Software Development Life
Cycle consists of the following stages:
1. Planning and Requirement analysis
2. Defining Requirements
3. Designing the product architecture
4. Building or Developing the product
5. Testing the product
6. Deployment in the market and maintenance

There are various software development life cycle
models defined and designed which are followed
during software development process. These models
are also referred as Software Development Process
Models”
Following are the most important and popular SDLC
models followed in the industry
Waterfall Model
Iterative Model
Spiral Model
V-Model
Big bang Model

Waterfall Model
Following is a Diagrammatic representation of
different phases of waterfall model

Requirement Gathering and analysis:
All possible requirements of the system to be developed
are captured in this phase and documented in a
requirement specification document.
System Design:
The requirement specification from fist phase are studied in
this phase and system design is prepared. System design
helps in specifying hardware system requirements and also
helps in defining overall system architecture.
Implementation:
With inputs from system design, the system is first
developed in small programs called units, which are
integrated in the next phase. Each unit is developed and
tested for its functionality which is referred to as unit
testing

Integration and testing:
All the units developed in the implementation phase are
integrated into a system after testing of each units. Post
integration the entire system is tested for any faults and
failures.
Deployment of system:
Once the functional and non functional testing is done,
the product is deployed in the customer environment or
released into the market.
Maintenance:
There are some issues which come up in the client
environment. To fix those issues patches are released.
Also to enhance the product some better versions are
released maintenance is done to deliver these changes in
t customer environment

Iterative Model
Following is the pictorial representation of Iterative
and incremental Model:

This model is most often used in the following
scenarios
Requirements of the complete system are clearly
defined and understood
Major requirements must be defined; however, some
functionalities or requested enhancements may
evolve with time.
There is a time to the market constraint.
.

A new technology is being used and is being learnt by the
development team while working on the project.
Resources with needed skill set are not available and are
planned to be used on contract basis for specific
iterations.
There are some high risk features and goals which may
change in the future.

Spiral Model
The spiral model has four phases. A software
project repeatedly passes through these
phases in iteration called spirals.Following is a diagrammatic representation of spiral model
listing the activities in cash phase:

Identification:
This phase starts with gathering the business requirements in
the baseline spiral. In the subsequent spirals as the product
matures, identification of system requirements, subsystem
requirements and unit requirement are all done in this phase
This is also includes understanding the system
requirements by continuous communication between the
customer and the system analyst. At the end of the spiral the
product is deployed in the identified.
Design:
Design phase starts with the conceptual design in the
baseline spiral and involves architectural design, logical
design of modules, physical product design and final design
in the subsequent spirals.

Construct or Build:
Construct phase refers to production of the actual software
product at every spiral. In the baseline spiral when the
product is just thought of and the design is being developed
a POC (proof of concept) is developed.
Then in the subsequent spirals with higher clarity on
requirements and design details a working model of the
software called build is produced with a version number.
Evaluation and Risk analysis:
Risk analysis includes identifying, estimating, and monitoring
technical feasibility and management risks, such as schedule
slippage and cost overrun. After testing the build.

The below figure illustrates the different phases in V-Model of
SDLC.
V- Model:

The V- Model is SDLC Model where execution of processes
happens in a sequential manner in V- shape. It is also
known as Verification and Validation model.
V- Model is an extension of the waterfall model and
is based on association of a testing phase for each
corresponding development stage. This means that for
every single phase in the development cycle there is a
directly associated testing phase. This is a highly disciplined
model and next phase start only after completion of the
previous phase.

Big Bang Model
The Big Bang model is SDLC model where there is no specific
process followed. The development just starts with the
required money and efforts as the input, and the output is
the software developed which may or may not be as per
customer requirement.
Big Bang Model is SDLC model where there is no formal
development followed and very little planning is required.
Even the customer is not sure about what exactly he wants
and the requirements are implemented on the fly without
much analysis.

ERP- Definition:
ERP is a process of managing all resources and their use in
the entire enterprise in a coordinated manner.
What is ERP
 Enterprise resource planning.
 Support business through optimizing, maintaining
and tracking business function.

GROUP MEMBERs:
KRISHNA MURTHY
BINDU
PAVITHRA
SATHYA
MALAVIKA
LAVANYA
HARINI.S

information system and computers

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