UNIT - 1 - Information Management
UNIT - 1 - Information Management
INFORMATION MANAGEMENT 1
INFORMATION MANAGEMENT
UNIT I INTRODUCTION
Data, Information, Intelligence, Information Technology, Information System, evolution, types based
on functions and hierarchy, System development methodologies, Functional Information Systems,
DSS, EIS, KMS, GIS, International Information System.
Case tools - System flow chart, Decision table, Data flow Diagram (DFD), Entity Relationship (ER),
Object Oriented Analysis and Design (OOAD), UML diagram.
TEXTBOOKS
1. Robert Schultheis and Mary Summer, Management Information Systems – The Managers
View, Tata McGraw Hill, 2008.
2. Kenneth C. Laudon and Jane Price Laudon, Management Information Systems – Managing the
digital firm, PHI Learning / Pearson Education, PHI, Asia, 2012.
INFORMATION MANAGEMENT 2
REFERENCES
1. Rahul de, MIS in Business, Government and Society, Wiley India Pvt Ltd, 2012
3. Haag, Cummings and Mc Cubbrey, Management Information Systems for the Information Age,
McGraw Hill, 2005. 9th edition, 2013.
5. Raymond McLeod and Jr. George P. Schell, Management Information Systems, Pearson
Education, 2007.
7. Raplh Stair and George Reynolds, Information Systems, Cengage Learning, 10th Edition,2012.
8. Corey Schou and Dan Shoemaker, Information Assurance for the Enterprise – A Roadmap to
Information Security, Tata McGraw Hill, 2007.
9. Frederick Gallegor, Sandra Senft, Daniel P. Manson and Carol Gonzales, Information
Technology Control and Audit, Auerbach Publications, 4th Edition, 2013.
INFORMATION MANAGEMENT 3
UNIT - 1
Data
Data is defined as facts or figures, or information that's stored in or used by a computer. An example
of data is information collected for a research paper. the quantities, characters, or symbols on which
operations are performed by a computer, which may be stored and transmitted in the form of electrical
signals and recorded on magnetic, optical, or mechanical recording media.
Information
Information is a stimulus that has meaning in some context for its receiver. When information is
entered into and stored in a computer, it is generally referred to as data. After processing (such as
formatting and printing), output data can again be perceived as information.
Information (shortened as info or info.) is that which informs, i.e. that from which data can be derived.
At its most fundamental, information is any propagation of cause and effect within a system.
Information is conveyed either as the content of a message or through direct or indirect observation of
something. That which is perceived can be construed as a message in its own right, and in that sense,
information is always conveyed as the content of a message. Information can be encoded into various
forms for transmission and interpretation. For example, information may be encoded into signs, and
transmitted via signals.
These are difficult times for all organizations of all sizes and in all sectors. On the one hand, customers
have ever-increasing expectations in terms of the speed and quality of service they expect and, on the
other resources are continually under pressure.
This document sets out how effective information and records management can help any organization
to move forward in this challenging environment through,
Intelligence
Intelligence has been defined in many different ways such as in terms of one's capacity for logic,
abstract thought, understanding, self-awareness, communication, learning, emotional knowledge,
memory, planning, creativity and problem solving.
INFORMATION MANAGEMENT 4
Knowledge
Importance:
Learning Better
Setting Goals As You Learn
Learn Complex Things Faster
Knowledge Helps You Solve Problems
Understanding Yourself
Need
Importance
INFORMATION MANAGEMENT 5
distance education
access to the source of information
Multiple communication channels-e-mail, chat, forum, blogs, etc.
access to open courseware
better accesses to children with disabilities
reduces time on many routine tasks
Information system
An information system (IS) is a system composed of people and computers that processes or
interprets information. The term is also sometimes used in more restricted senses to refer to only the
software used to run a computerized database or to refer to only a computer system.
Importance
Despite decades of using various non-paper storage media, the amount of paper in our offices continues
to escalate. An effective records information system addresses both creation control (limits the
generation of records or copies not required to operate the business) and records retention (a system for
destroying useless records or retiring inactive records), thus stabilizing the growth of records in all
formats.
Recordkeeping requires administrative dollars for filing equipment, space in offices, and staffing to
maintain an organized filing system (or to search for lost records when there is no organized system).It
costs considerably less per linear foot of records to store inactive records in a Data Records Center
versus in the office and there is an opportunity to effect some cost savings in space and equipment, and
an opportunity to utilize staff more productively - just by implementing a records management
program.
Time spent searching for missing or misfiled records are non-productive. A good records management
program (e.g. a document system) can help any organization upgrade its recordkeeping systems so that
information retrieval is enhanced, with corresponding improvements in office efficiency and
productivity. A well designed and operated filing system with an effective index can facilitate retrieval
and deliver information to users as quickly as they need it.
Moreover, a well managed information system acting as a corporate asset enables organizations to
objectively evaluate their use of information and accurately lay out a roadmap for improvements that
optimize business returns.
INFORMATION MANAGEMENT 6
4. To assimilate new records management technologies
A good records management program provides an organization with the capability to assimilate new
technologies and take advantage of their many benefits. Investments in new computer systems
whether this is financial, business or otherwise, don't solve filing problems unless current manual
recordkeeping or bookkeeping systems are analyzed (and occasionally, overhauled) before automation
is applied.
In terms of recordkeeping requirements, China is a heavily regulated country. These laws can create
major compliance problems for businesses and government agencies since they can be difficult to
locate, interpret and apply. The only way an organization can be reasonably sure that it is in full
compliance with laws and regulations is by operating a good management information system which
takes responsibility for regulatory compliance, while working closely with the local authorities. Failure
to comply with laws and regulations could result in severe fines, penalties or other legal consequences.
Business organizations implement management information systems and programs in order to reduce
the risks associated with litigation and potential penalties. This can be equally true in Government
agencies. For example, a consistently applied records management program can reduce the liabilities
associated with document disposal by providing for their systematic, routine disposal in the normal
course of business.
Every organization, public or private, needs a comprehensive program for protecting its vital records
and information from catastrophe or disaster, because every organization is vulnerable to loss.
Operated as part of a good management information system, vital records programs preserve the
integrity and confidentiality of the most important records and safeguard the vital information assets
according to a "Plan" to protect the records. This is especially the case for financial information
whereby ERP (Enterprise Resource Planning) systems are being deployed in large companies.
In today's business environment, the manager that has the relevant data first often wins, either by
making the decision ahead of the competition, or by making a better, more informed decision. A good
management information system can help ensure that managers and executives have the information
they need when they need it.
INFORMATION MANAGEMENT 7
By implementing an enterprise-wide file organization, including indexing and retrieval capability,
managers can obtain and assemble pertinent information quickly for current decisions and future
business planning purposes. Likewise, implementing a good ERP system to take account of all the
business‘ processes both financial and operational will give an organization more advantages than one
who was operating a manual based system.
An organization's files, records and financial data contain its institutional memory, an irreplaceable
asset that is often overlooked. Every business day, you create the records, which could become
background data for future management decisions and planning.
A business office with files, documents and financial data askew, stacked on top of file cabinets and in
boxes everywhere, creates a poor working environment. The perceptions of customers and the public,
and "image" and "morale" of the staff, though hard to quantify in cost-benefit terms, may be among
the best reasons to establish a good management information system.
Evolution
The first business application of computers (in the mid- 1950s) performed repetitive, high-volume,
transaction-computing tasks.
Transaction processing systems (TPSs): The computers (crunched numbers) summarizing and
organizing transactions and data in the accounting, finance, and human resources areas. Such systems
are generally called transaction processing systems (TPSs).
Management Information Systems (MISs): these systems access, organize, summarize and display
information for supporting routine decision making in the functional areas. Office Automation
Systems (OASs): such as word processing systems were developed to support office and clerical
workers.
Decision Support Systems: were developed to provide computer based support for complex, non
routine decision. „ End- user computing: The use or development of information systems by the
principal users of the systems‘ outputs, such as analysts, managers, and other professionals.
Intelligent Support System (ISSs): Include expert systems which provide the stored knowledge of
experts to non experts, and a new type of intelligent system with machine- learning capabilities that can
learn from historical cases. „ Knowledge Management Systems: Support the creating, gathering,
organizing, integrating and disseminating of organizational knowledge.
INFORMATION MANAGEMENT 8
Data Warehousing: A data warehouse is a database designed to support DSS, ESS and other
analytical and end-user activities. „ Mobile Computing: Information systems that support employees
who are working with customers or business partners outside the physical boundaries of their company;
can bedone over wire or wireless networks.
Organizational Hierarchy
Organizational Levels
Information Systems
Operational-level systems
Support operational managers by monitoring the day-to-day‘s elementary activities and
transactions of the organization. e.g. TPS.
Knowledge-level systems
Support knowledge and data workers in designing products, distributing information,
and coping with paperwork in an organization. e.g. KWS, OAS
Management-level systems
Support the monitoring, controlling, decision-making, and administrative activities of
middle managers. e.g. MIS, DSS
Strategic-level systems
Support long-range planning activities of senior management. e.g. ESS
INFORMATION MANAGEMENT 9
Transaction Processing Systems (TPS)
Computerized system that performs and records the daily routine transactions necessary to conduct the
business; these systems serve the operational level of the organization
• TYPE: Operational-level
• INPUTS: transactions, events
• PROCESSING: updating
• OUTPUTS: detailed reports
• USERS: operations personnel, supervisors
• DECISION-MAKING: highly structured
Computer system, such as word processing, electronic mail system, and scheduling system, that is
designed to increase the productivity of data workers in the office.
• TYPE: Knowledge-level
• INPUTS: documents, schedules
• PROCESSING: document management, scheduling, communication
• OUTPUTS: documents; schedules
• USERS: clerical workers
Information system that aids knowledge workers in the creation and integration of new knowledge in
the organization.
• TYPE: Knowledge-level
• INPUTS: design specifications
• PROCESSING: modelling
• OUTPUTS: designs, graphics
• USERS: technical staff; professionals
INFORMATION MANAGEMENT 10
Decision Support Systems (DSS)
Information system at the management level of an organization that combines data and sophisticated
analytical models or data analysis tools to support semi-structured and unstructured decision making.
• TYPE: Management-level
• INPUTS: low volume data
• PROCESSING: simulations, analysis
• OUTPUTS: decision analysis
• USERS: professionals, staff managers
• DECISION-MAKING: semi-structured
Information system at the management level of an organization that serves the functions of planning,
controlling, and decision making by providing routine summary and exception reports.
• TYPE: Management-level
• INPUTS: high volume data
• PROCESSING: simple models
• OUTPUTS: summary reports
• USERS: middle managers
• DECISION-MAKING: structured to semi-structured
Information system at the strategic level of an organization that address unstructured decision making
through advanced graphics and communications.
INFORMATION MANAGEMENT 11
Classification of IS by Organizational Structure
Introduction
A system development methodology refers to the framework that is used to structure, plan, and control
the process of developing an information system. A wide variety of such frameworks have evolved
over the years, each with its own recognized strengths and weaknesses. One system development
methodology is not necessarily suitable for use by all projects. Each of the available methodologies is
best suited to specific kinds of projects, based on various technical, organizational, project and team
considerations. CMS has considered each of the major prescribed methodologies in context with CMS‘
business, applications, organization, and technical environments. As a result, CMS requires the use of
any of the following linear and iterative methodologies for CMS systems development, as appropriate.
Basic Principles:
1. Project is divided into sequential phases, with some overlap and splashback acceptable
between phases.
2. Emphasis is on planning, time schedules, target dates, budgets and implementation of an entire
system at one time.
3. Tight control is maintained over the life of the project through the use of extensive written
documentation, as well as through formal reviews and approval/signoff by the user and
information technology management occurring at the end of most phases before beginning the
next phase.
INFORMATION MANAGEMENT 12
Strengths:
1. Ideal for supporting less experienced project teams and project managers, or project teams
whose composition fluctuates.
2. The orderly sequence of development steps and strict controls for ensuring the adequacy of
documentation and design reviews helps ensure the quality, reliability, and maintainability of
the developed software.
3. Progress of system development is measurable.
4. Conserves resources.
Weaknesses:
1. Inflexible, slow, costly and cumbersome due to significant structure and tight controls.
2. Project progresses forward, with only slight movement backward.
3. Little room for use of iteration, which can reduce manageability if used.
4. Depends upon early identification and specification of requirements, yet users may not be able
to clearly define what they need early in the project.
5. Requirements inconsistencies, missing system components, and unexpected development
needs are often discovered during design and coding.
6. Problems are often not discovered until system testing.
7. System performance cannot be tested until the system is almost fully coded, and under-
capacity may be difficult to correct.
8. Difficult to respond to changes. Changes that occur later in the life cycle are more costly and
are thus discouraged.
9. Produces excessive documentation and keeping it updated as the project progresses is time-
consuming.
10. Written specifications are often difficult for users to read and thoroughly appreciate.
11. Promotes the gap between users and developers with clear division of responsibility.
INFORMATION MANAGEMENT 13
Situations where least appropriate:
1. Large projects where the requirements are not well understood or are changing for any reasons
such as external changes, changing expectations, budget changes or rapidly changing
technology.
2. Web Information Systems (WIS) primarily due to the pressure of implementing a WIS project
quickly; the continual evolution of the project requirements; the need for experienced, flexible
team members drawn from multiple disciplines; and the inability to make assumptions
regarding the users‘knowledge level.
3. Real-time systems.
4. Event-driven systems.
5. Leading-edge applications.
Supports a functional area by increasing its internal effectiveness and efficiency. Typically found for:
Finance (FIN): provide internal and external professional access to stock, investment and
capital spending information.
Accounting (ACC): similar to financial MIS more related to invoicing, payroll, receivables.
Marketing (MKT): pricing, distribution, promotional, and information by customer and
salesperson.
Operations (OPS): regular reports on production, yield, quality, inventory levels. These
systems typically deal with manufacturing, sourcing, and supply chain management.
Human Resources Management (HR): employees, benefits, hiring‘s, etc.
A summary of capabilities of a FIS are organized by functional area in the following chart:
• From the pyramid Each vertical section represents a functional area of the organization, and
thus a vertical view can be compared to a functional view of the organization
• Information systems can be designed to support the functional areas or traditional departments
such as, accounting, finance, marketing, human resources, and manufacturing, of an
organization
• Such systems are classified as functional information systems‘. Functional information systems
typically follow the organizational structure
• Functional information systems are typically focused on increasing the efficiency of a particular
department or a functional area.
• One disadvantage of functional systems is that although they may support a particular
functional area effectively, they may be incompatible to each other (NO interaction between
internal systems).
• Such systems, rather than aiding organizational performance will act as inhibitors to an
organization's development and change.
INFORMATION MANAGEMENT 14
• Organizations have realized that in order to be agile and efficient they need to focus on
organizational processes
• A process may involve more than one functional area.
• Some Information Systems are cross-functional
• Example: A TPS can affect several different business areas: Accounting, Human Resources,
Production, etc.
• Some Information Systems concentrate on one particular business area (Accounting for
example)
• These systems are:
• Marketing Systems
• Manufacturing Systems
• Human Resource Systems
• Accounting Systems
• Financial Management Systems
DSS
A Decision Support System (DSS) is a computer-based information system that supports business or
organizational decision-making activities.
DSSs serve the management, operations, and planning levels of an organization (usually mid and
higher management) and help to make decisions, which may be rapidly changing and not easily
specified in advance (Unstructured and Semi-Structured decision problems). Decision support systems
can be either fully computerized, human or a combination of both.
Decision support systems generally involve non-programmed decisions. Therefore; there will be no
exact report, content or format for these systems. Reports are generated on the fly.
Attributes of a DSS
INFORMATION MANAGEMENT 15
Characteristics of a DSS
Benefits of DSS
Components of a DSS
Database Management System (DBMS): To solve a problem the necessary data may come from
internal or external database. In an organization, internal data are generated by a system such as
TPS and MIS. External data come from a variety of sources such as newspapers, online data
services, databases (financial, marketing, human resources).
Model Management system: It stores and accesses models that managers use to make decisions.
Such models are used for designing manufacturing facility, analyzing the financial health of an
organization. Forecasting demand of a product or service etc.
Support Tools: Support tools like online help; pull down menus, user interfaces, graphical
analysis, error correction mechanism, facilitates the user interactions with the system.
INFORMATION MANAGEMENT 16
Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classify DSS in following:
Text Oriented DSS: It contains textually represented information that could have a bearing on
decision. It allows documents to be electronically created, revise and viewed as needed
Database Oriented DSS: Database plays a major role here; it contains organized and highly
structured data.
Spreadsheet Oriented DSS: it contains information in spread sheets that allows create, view,
modify procedural knowledge and also instruct the system to execute self-contained
instructions. The most popular tool is Excel and Lotus 1-2-3.
Solver Oriented DSS: it is based on a solver, which is an algorithm or procedure written for
performing certain calculations and particular program type.
Rules Oriented DSS: It follows certain procedures adopted as rules.
Rules Oriented DSS: Procedures are adopted in rules oriented DSS. Export system is the
example.
Compound DSS: It is built by using two or more of the five structures explained above
Types of DSS
Status Inquiry System: helps in taking operational management level or middle level
management decisions, for example daily schedules of jobs to machines or machines to
operators.
Data Analysis System: needs comparative analysis and makes use of formula or an algorithm,
for example cash flow analysis, inventory analysis etc.
Information Analysis System: In this system data is analyzed and the information report is
generated. For example, sales analysis, accounts receivable systems, market analysis etc.
Accounting System: keep tracks of accounting and finance related information, for example,
final account, accounts receivables, accounts payables etc. that keep track of the major aspects
of the business.
Model Based System: simulation models or optimization models used for decision- making
used infrequently and creates general guidelines for operation or management.
INFORMATION MANAGEMENT 17
EIS
Executive support systems are intended to be used by the senior managers directly to provide support
to non-programmed decisions in strategic management.
These information are often external, unstructured and even uncertain. Exact scope and context of
such information is often not known beforehand.
Market intelligence
Investment intelligence
Technology intelligence
Following are some examples of intelligent information, which is often source of an ESS:
External databases
Technology reports like patent records etc.
Technical reports from consultants
Market reports
Confidential information about competitors
Speculative information like market conditions
Government policies
Financial reports and information
Advantages of ESS
INFORMATION MANAGEMENT 18
Reduce time for finding information
Early identification of company performance
Detail examination of critical success factor
Better understanding
Time management
Increased communication capacity and quality
Disadvantage of ESS
KMS
All the systems we are discussing here come under knowledge management category. A knowledge
management system is not radically different from all these information systems, but it just extends
the already existing systems by assimilating more information.
As we have seen data is raw facts, information is processed and/or interpreted data and knowledge is
personalized information.
What is knowledge?
personalized information
state of knowing and understanding
an object to be stored and manipulated
a process of applying expertise
a condition of access to information
potential to influence action
INFORMATION MANAGEMENT 19
Sources of Knowledge of an Organization
Intranet
Data warehouses and knowledge repositories
Decision support tools
Groupware for supporting collaboration
Networks of knowledge workers
Internal expertise
Purpose of a KMS
Improved performance
Competitive advantage
Innovation
Sharing of knowledge
Integration
Continuous improvement by:
o Driving strategy
o Starting new lines of business
o Solving problems faster
o Developing professional skills
o Recruit and retain talent
Start with the business problem and the business value to be delivered first.
Identify what kind of strategy to pursue to deliver this value and address the KM problem
Think about the system required from a people and process point of view.
Finally, think about what kind of technical infrastructure are required to support the people and
processes.
Implement system and processes with appropriate change management and iterative staged
release.
INFORMATION MANAGEMENT 20
GIS
A geographic information system (GIS) is a computer system designed to capture, store, manipulate,
analyze, manage, and present all types of spatial or geographical data.
Modern GIS technologies use digital information, for which various digitized data creation methods are
used. The most common method of data creation is digitization, where a hard copy map or survey plan
is transferred into a digital medium through the use of a CAD program, and geo-referencing
capabilities. With the wide availability of ortho-rectified imagery (both from satellite and aerial
sources), heads-up digitizing is becoming the main avenue through which geographic data is extracted.
Heads-up digitizing involves the tracing of geographic data directly on top of the aerial imagery instead
of by the traditional method of tracing the geographic form on a separate digitizing tablet (heads-down
digitizing).
Data representation
GIS data represents real objects (such as roads, land use, elevation, trees, waterways, etc.) with digital
data determining the mix. Real objects can be divided into two abstractions: discrete objects (e.g., a
house) and continuous fields (such as rainfall amount, or elevations). Traditionally, there are two
broad methods used to store data in a GIS for both kinds of abstractions mapping references: raster
images and vector. Points, lines, and polygons are the stuff of mapped location attribute references. A
new hybrid method of storing data is that of identifying point clouds, which combine three-
dimensional points with RGB information at each point, returning a "3D color image". GIS thematic
maps then are becoming more and more realistically visually descriptive of what they set out to show
or determine.
Data capture
Example of hardware for mapping (GPS and laser rangefinder) and data collection (rugged
computer). The current trend for geographical information system (GIS) is that accurate mapping and
data analysis are completed while in the field. Depicted hardware (field-map technology) is used
mainly for forest inventories, monitoring and mapping.
Data capture entering information into the system consumes much of the time of GIS practitioners.
There are a variety of methods used to enter data into a GIS where it is stored in a digital format.
Existing data printed on paper or PET film maps can be digitized or scanned to produce digital data. A
digitizer produces vector data as an operator traces points, lines, and polygon boundaries from a map.
Scanning a map results in raster data that could be further processed to produce vector data.
INFORMATION MANAGEMENT 21
A GIS was used to register and combine the two images to render the three-dimensional perspective
view looking down the San Andreas Fault, using the Thematic Mapper image pixels, but shaded using
the elevation of the landforms. The GIS display depends on the viewing point of the observer and time
of day of the display, to properly render the shadows created by the sun's rays at that latitude,
longitude, and time of day.
GIS or spatial data mining is the application of data mining methods to spatial data. Data mining,
which is the partially automated search for hidden patterns in large databases, offers great potential
benefits for applied GIS-based decision making. Typical applications including environmental
monitoring. A characteristic of such applications is that spatial correlation between data measurements
requires the use of specialized algorithms for more efficient data analysis.
International information systems (IIS) technology is a field where academic research is sparse. These
contrasts starkly with a growing concern of practitioners who have come to regard IIS as a double
threat: they are often vitally critical for the globally oriented firm, but at the same time they are
perceived as difficult and risky. The areas of importance for practitioners are less well researched than
others. A theory building methodology is discussed and recommended for an initial research project.
• Global business drivers are general cultural factors and specific business factors
• Global culture, created by TV and other global media (e.g., movies) permit cultures to develop
Common expectations about right and wrong, desirable and undesirable, heroic and cowardly
• A global knowledge base--strengthened by educational advances in Latin America, China,
southern Asia, and eastern Europe--also affects growth
• Particularly making judgments and taking action based on narrow or personal features,
rejects the concept of shared global culture
• Transforms data flow is the movement of information across international boundaries in any
form
• National laws and traditions create disparate accounting practices in various countries,
impacting how profits and losses are analyzed.
INFORMATION MANAGEMENT 22
INFORMATION MANAGEMENT
PART – A
INFORMATION MANAGEMENT 23
PART – B
INFORMATION MANAGEMENT 24