BA4106 – INFORMATION MANAGEMENT

UNIT I
INTRODUCTION

Topics:
Data, Information, Information System, evolution, types based on functions and hierarchy, Enterprise
and functional information systems.
_________________________________________________________________________________
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.
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.

Knowledge:
 Knowledge is a familiarity, awareness or understanding of someone or
something, such as facts, information, descriptions, or skills, which is acquired
through experience or education by perceiving, discovering, or learning.
Knowledge can refer to a theoretical or practical understanding of a subject.

Importance:
o Learning Better
o Setting Goals As You Learn
o Learn Complex Things Faster
o Knowledge Helps You Solve Problems
o Understanding Yourself

Information Technology (IT):

Information technology (IT) is the application of computers and
telecommunications equipment to store, retrieve, transmit and manipulate data,
often in the context of a business or other enterprise.

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 of IS:

1. To control the creation and growth of records:

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.
2. To reduce operating costs:
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).
3. To improve efficiency and productivity:
Time spent searching for missing or misfiled records are non-productive. A
good records management program (e.g. a document system)
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.
5. To ensure regulatory compliance:
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.

6. To minimize litigation risks

 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.
7. To safeguard vital information:
Every organization, public or private, needs a comprehensive program
for protecting its vital record and information from catastrophe or disaster,
because every organization is vulnerable to loss.
8. To support better management decision making:
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
9. To preserve the corporate memory:
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.
10. To foster professionalism in running the business:
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.

Evolution
The first business application of computers (in the mid- 1950s) performed
repetitive, high-volume, transaction-computing tasks. The computers crunched
number 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 (DSS): 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 (KMS): Support the creating, gathering,

organizing, integrating and disseminating of organizational knowledge.

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 be
done over wire or wireless networks.
Types of Information Systems:

 Operational-level systems
 Knowledge-level systems
 Management-level systems
 Strategic-level 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
 Executive Support Systems (ESS)
 Management Information Systems (MIS)
 Decision Support Systems (DSS)
 Knowledge Work Systems (KWS)
 Office Automation Systems (OAS)
 Transaction Processing Systems (TPS)

Executive Support Systems (ESS):

Information system at the strategic level of an organization that address
unstructured decision making through advanced graphics and communications.

TYPE: Strategic level

• INPUTS: aggregate data; internal and external

• PROCESSING: interactive
• OUTPUTS: projections
• USERS: senior managers
• DECISION-MAKING: highly unstructured
EXAMPLE: 5 year operating plan

Classification of IS by Organizational Structure

 Departmental Information Systems
 Enterprise Information System
 Inter-organizational Systems
Classification of IS by Functional Area
 The accounting information system
 The finance information system
 The manufacturing (operations, production) information system
 The marketing information system
 The human resources information system

Management Information Systems (MIS):

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
EXAMPLE: annual budgeting

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

Knowledge Work Systems (KWS):

 Information system that aids knowledge workers in the creation and
integration of new knowledge in the organization.
• TYPE: Knowledge-level
• INPUTS: design specifications
• PROCESSING: modeling
• OUTPUTS: designs, graphics
• USERS: technical staff; professionals
EXAMPLE: Engineering workstations

Office Automation Systems (OAS):

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
EXAMPLE: document imaging system
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

EXAMPLE: payroll, accounts payable.

System development methodologies:

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.

Basic Principles:
1. Project is divided into sequential phases, with some overlap and splash
back 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.
Prototyping:

Basic Principles:
1. Not a standalone, complete development methodology, but rather an
approach to handling
selected portions of a larger, more traditional development methodology (i.e.,
Incremental, Spiral or Rapid Application Development (RAD).
2. Attempts to reduce inherent project risk by breaking a project into
smaller segments and
providing more ease-of-change during the development process.
3. User is involved throughout the process, which increases the likelihood
of user acceptance of the final implementation.
4. Small-scale mock-ups of the system are developed following an iterative
modification process until the prototype evolves to meet the users‘
requirements.
5. While most prototypes are developed with the expectation that they will
be discarded, it is
possible in some cases to evolve from prototype to working system.
Functional Information System (FIS):
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.

Decision Support System (DSS):

A Decision Support System (DSS) is a computer-based information system
that supports business or organizational decision-making activities.
Decision support systems generally involve non-programmed decisions.
Therefore; there will be no exact report, content or format for these systems.
Reports are generated on the fly.
Attributes of a DSS:
 Adaptability and flexibility
 High level of Interactivity
 Ease of use
 Efficiency and effectiveness
 Complete control by decision-makers.
 Ease of development
 Extendibility
 Support for modeling and analysis
 Support for data access
 Standalone, integrated and Web-based
Characteristics of a DSS
  Support for decision makers in semi structured and unstructured problems.
 Support for managers at various managerial levels, ranging from top
executive to line managers.
 Support for individuals and groups. Less structured problems often
requires the involvement of several individuals from different departments
and organization level.
 Support for interdependent or sequential decisions.
 Support for intelligence, design, choice, and implementation.
Benefits of DSS
 Improves efficiency and speed of decision making activities
 Increases the control, competitiveness and capability of futuristic decision
making of the organization
 Facilitates interpersonal communication
 Encourages learning or training
 Since it is mostly used in non-programmed decisions, it reveals new
approaches and sets up new evidences for an unusual decision
 Helps automate managerial processes

Components of a DSS:
Following are the components of the Decision Support System:

Database Management System (DBMS): To solve a problem the necessary

data may come
from internal or external database. In an organization, internal data are
generated by a system
such as TPS and MIS. External data come from a variety of sources such as
newspapers, online
data services, databases (financial, marketing, human resources).

Model Management system: It stores and accesses models that managers

use to make
decisions. Such models are used for designing manufacturing facility, analyzing
the financial
health of an organization. Forecasting demand of a product or service etc.
Support Tools: Support tools like online help; pull down menus, user interfaces,
graphical
analysis, error correction mechanism, facilitates the user interactions with the
system

Classification of DSS:

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.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.

Executive support systems (ESS):

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.
This information is intelligence based:
 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
1.7.1 Advantages of ESS
1. Easy for upper level executive to use
2. Ability to analyze trends
3. Augmentation of managers' leadership capabilities
4. Enhance personal thinking and decision making
5. Contribution to strategic control flexibility

Disadvantage of ESS
1. Functions are limited
2. Hard to quantify benefits
3. Executive may encounter information overload
4. System may become slow
5. May lead to less reliable and insecure data
6. Excessive cost for small company

Knowledge Management System (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

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

Activities in Knowledge Management

 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.
Geographic Information System (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.
GIS techniques and technology:

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)

Data capture:

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.

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

GIS data mining:

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.
International information systems (IIS):

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.

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
• Particularism, making judgments and taking action based on narrow or
personal features,
rejects the concept of shared global culture
• Transborder 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.

SCM

Definition
Supply Chain Management (SCM) is the coordination and management of the flow of goods,
services, information, and finances from the initial raw material suppliers through to the end
consumer. It encompasses all the processes involved in producing and delivering a product or service,
including procurement, production, transportation, warehousing, and distribution.

The primary objective of SCM is to enhance efficiency, reduce costs, and improve customer
satisfaction by ensuring that products or services are delivered to the right place, at the right time, in
the right quantities, while maintaining quality and minimizing waste.

Features

1. Integration of Processes: SCM integrates various processes across different entities, from
suppliers to manufacturers to customers, ensuring smooth coordination and efficient
workflows.
2. Flow of Information and Products: Manages the movement of goods, services, and
information across the supply chain, facilitating real-time communication and decision-
making.
3. Inventory Management: Ensures optimal levels of inventory to meet demand without
overstocking or stockouts, balancing costs and service levels.
4. Supplier Relationship Management: Maintains strong, strategic relationships with suppliers
to ensure timely delivery of materials and negotiate favorable terms.
5. Demand Forecasting: Uses historical data and analytics to predict customer demand and plan
production and inventory accordingly.
6. Cost Efficiency: Focuses on reducing operational costs, such as transportation, warehousing,
and procurement, while maximizing value to the customer.
7. Technology Integration: Utilizes advanced technologies like ERP, AI, and blockchain to
improve visibility, tracking, and automation in the supply chain.
8. Sustainability: Emphasizes eco-friendly practices and responsible sourcing to minimize the
environmental impact and promote sustainability throughout the supply chain.
9. Risk Management: Identifies potential risks, such as supplier disruptions or natural disasters,
and develops strategies to mitigate them, ensuring supply chain resilience.
10. Customer Satisfaction: The ultimate goal is to deliver products and services efficiently and
reliably, improving customer experience and satisfaction.

Components

1. Planning: Involves forecasting demand, planning inventory, and coordinating production

schedules to meet customer needs efficiently.
2. Sourcing: Identifying and selecting suppliers, negotiating contracts, and ensuring a steady
supply of materials at the best possible cost.
3. Manufacturing: The process of transforming raw materials into finished goods through
efficient production processes, ensuring quality and meeting production deadlines.
4. Delivery and Logistics: Managing the transportation, warehousing, and distribution of
finished goods to ensure they reach customers on time and in good condition.
5. Returns (Reverse Logistics): Handling product returns, repairs, recycling, or disposal,
ensuring effective reverse flows in the supply chain.
6. Inventory Management: Monitoring and controlling inventory levels to maintain optimal
stock, reducing excess or shortages while balancing costs and service levels.
7. Information Flow: Sharing timely and accurate data among supply chain partners to facilitate
real-time decision-making, coordination, and transparency.
8. Financial Flow: Managing payment terms, credit lines, and financial transactions across the
supply chain to ensure smooth operations and cash flow.

Process

.ERP