Business Information System information.

•No tailor made package Operating Personnel: People are

(Module I) Types of communication devices •Lack of flexibility needed for the operation of all
Data •Telephone •Costly affair information systems. The personnel in
Data are raw facts or observation •Telegraph •Ignoring non-quantitative factors MIS include computer operators,
typically about a physical •Telex •Greater chance for failure programmers, system analyst and
phenomenon. Any raw facts used for •E-mail •Frequent changes to top managers.
processing is called data. •Television management
Information •Audio conferencing •Hording of information b. Processing function
The processed data are called •Video conferencing Basic structural concept of MIS An information system can also be
information. Information will have •Document imaging 1.Public information system described in terms of processing
logical connection and it is •Mobile phones It is a part of an organization and all function. The important processing
meaningful. •Voice mail the relevant persons have knowledge functions are
Difference between data and Applications of ICT about the information system and a.Process transactions
information 1.ICT in business everyone has access. b.Maintain master files.
Data Information 2.ICT in financial services 2.Private information system c.Produce reports.
Raw facts and Processed data 3.ICT in entertainment It is maintained by privately where d.Process enquiries.
figures 4.ICT in public service certain piece of information are not e.Process interactive support
unprocessed 5.ITC in education available to others and there is a applications.
Data is Information will discrimination in file accessing. c. Output for users
sometimes have some Role of ICT in business 3.Formal information system Output is considered to be a major
unrelated logical •Global reach There is a certain well prescribed factor of an information system. It can
to one another. connection. •Productivity rules and procedures to be followed be classified as
•Commercial advantage processing and data dissemination. a.Transaction documents
It may or may It is always •Monitoring 4.Informal information system Documents produced by transaction
not be meaningful •E-commerce There is no rules and procedures for processing system are called
meaningful •Teleconference data processing and sharing. transaction documents.
It cannot directly Always used in •Communication 5.Formal public information system •Action documents- These document
used for decision •Inventory management Management information system initiate an action or transaction on the
decision making. making process. •Image scanning with its specified rules and part of the recipient. Eg: Purchase
•Customer relationship management procedures is a part of formal public order.
Management Information System system •Information documents- These
Unorganized Organized
(MIS) 6.Informal public information system documents relates, confirm or prove
structure. structure.
According to Gerome Kanter, “A Strict rules and procedures may not to their recipients that transaction
No value. Have value.
system that aids management in be found in this information system. have occurred. Eg: sales receipts,
making, carrying out and controlling 7.Formal private information system sales order confirmation.
decisions.” Besides these formal and informal •Investigational documents- Reports
Characteristics/ features of MIS system, there are also formal and of exceptions, errors or other
1.Management oriented informal private system in an conditions may be require
Characteristics of information
2.Management directed organization. investigation.
1.Accuracy
3.Integrated concept 8.Private informal information system b.Preplanned reports
2.Completeness
4.Common data base Many individuals may maintain their These have a regular format and
3.Timeliness
5.Avoid redundancy in database own private information system for content. These reports are produced
4.Relevance
6.Heavy planning discharging their duties more at regular intervals. Eg; Inventory
5.Reliability
7.Subsystem concept effectively. balance and sales analysis.
8.Common data flow Multiple approaches to the MIS c.Preplanned enquiry response.
Types of information
9.Flexibility and ease of use structure Enquiries are handled on line which
1.Strategic information
Basic concepts of MIS 1.MIS structure based on operating means the enquiry is made and the
This information used by the top level
•User-machine system elements. response is received immediately via
management. It is used for long term
•Integrated system 2.MIS structure based on decision terminal.
purpose. This information is useful to
•Need for database making. d.Ad hoc reports.
the broad objectives and policies of
•Utilization of models 3.MIS structure based on These reports are produced at
organizations.
Basic components of MIS management activity. irregular intervals and the information
2.Tactical information
1.Data gathering 4.MIS structure based on content and its format has not been
This information is used by middle
2.Data entry organizational functions. preplanned.
level management for effective
3.Data transformation 1.MIS structure based on operating
utilization of resources of the firm.
4.Information utilization elements. e.User machine dialogue.
3.Operational information
Elements of MIS The structure of management It is essentially a way in which a user
This information is used by lower level
•Management information system can be viewed in can interact with a model to arrive at
management. This type of
•Information terms of its operating elements. The an analysis or solution.
information used for short term
•System various elements necessary for the 2.MIS structure based on decision
purpose.
Purpose/Objectives of MIS operation of MIS is known as its making
Knowledge
1.To manage effectively operating elements. Operating The ultimate purpose of MIS is to
Knowledge plays a vital role in day to
2.To reduce cost elements of MIS consists of make decision at all levels of
day operation of running an
3.To produce reports a)Physical components. operations based on information flow.
organisation. Knowledge can referred
4.To provide statistics b)Processing functions. The habit of making decisions is based
to as acquiring and remembering a set
5.To provide information for decision c)Output for uses. on the problem solving process.
of facts or the use of information to
making a) Physical components: Decisions making involves the
solve problems.
6.To improve efficiency and Hardware, Software, Database, following 4 stages:
Features of knowledge:
productivity procedures and operating personnel •Intelligence phase: This stage
1.Knowledge is infinite.
7.To improve decision are the important physical consists of identifying and
2.Dynamic
8.Protection of crucial information component required for the understanding the problem occurring
3.Continuous and ever expanding.
Functions of MIS implementation of MIS in an in an organisation.
4.Becomes obsolete.
•Data capture and collection organisation. •Design phase: In this stage decision
5.Provisional, subject to criticism.
•Storage Hardware: All physical components of makers evaluate all possible causes of
6.Contradiction, change or
•Information processing computer system is called computer action.
modification.
•Distribution and dissemination of hardware. Important components •Choice phase: Under this stage,
Types of knowledge
information includes CPU, input output device, manager select most favourable cause
1.Explicit knowledge.
MIS and other academic discipline storage unit and communication of action from different alternatives.
It is the most basic form of knowledge
1.MIS and management accounting devices. •Implementation: In this stage,
that can be easily passed on to others.
2.MIS and management science Software: Software provides the decision is putting to effect.
When data is processed, organized,
3.MIS and management theory interface between users and Programmed decision
structured and interpreted, the result
4.MIS and information technology information system. It refers to the It is the one in which decision rules
is explicit knowledge.
instruction given to the hardware to are applied. These decisions are
2.Tactic knowledge
Advantages of MIS perform various operations. Software routine and repetitive. It is also called
Tactic knowledge is personal
•It facilitate planning can be divided in to two- system structured decision.
knowledge that may or may not be
•It minimize information overload software and applications. Characteristics / Features of
expressed by an individual.
•It encourage decentralization •System software- It comprises of programmed decisions
Information and Communication
•It brings coordination operating system, utility programs 1.These decisions are well defined.
Technology (ICT)
•It makes control easier and special purpose programs. 2.These decisions are repetitive and
ICT is defined as the combination of
•It helps in strategic planning •Application- These are developed to routine in nature.
informatics technology with other
•It increase efficiency of business accomplish a specific task. 3.Cost of taking decision is low.
related technologies, specifically
•It helps in comparison of business Database: It is a centrally controlled 4.Decision can be done with the help
communication technology.
performance collection of organized data. of computers.
Information Technology
Disadvantages of MIS Procedures: Procedures are the 5.Decision can be delegated to lower
It is the study or use of systems for
•Lack of quality of output operating instructions for the people level employees.
storing, retrieving and sending
•Not a Substitute for judgement who use an information system. 6.Predetermined decisions rules are
used. Key properties of TPS 4.Provide competitive advantage Limitations of expert system
Non-programmable decision •Atomicity 5.Helps in reducing cost 1.Not for solving general problems
These types of decisions are •Consistency 6.High satisfaction among decision 2.Costly
occasional and unique in nature. •Isolation makers 3.Most suitable to solve problem
There are no predefined procedures •Durability 7.Organisation control require knowledge and subject
available to solve the thinking

problem for each occurrence. It is also Transaction process cycle Limitations of DSS Management reporting system (MRS)
called unstructured decisions. 1.Data entry 1.Computational problems It is a part of management
Characteristics / features of non- 2.Transaction processing 2.Low speed information system that provides
programmable decisions 3.Files and database processing 3.Limited to individual us business information. This
1.These are occasional and unique in 4.Document and report generation Group decision support system information can be in the form of
nature. 5.Inquiry processing (GDSS) report or statements.
2.These are not repetitive. Methods for processing transactions GDSS is an interactive computer Characteristics/ features of MRS
3.No predefined procedures. •Batch processing based system to facilitate a number of •Developed by professionals
4.These decisions cannot be Batch processing transactions are decision makers in finding solutions to •Large and complex
delegated. collected and accumulated over a problems that are unstructured in •No alternative solution
5.Cost of taking decision is high. period of time and processed nature. •Limited analytical capabilities
3.MIS structure based on periodically. Features of GDSS •Focus on past and present reporting
management activity •Online processing •High level of interaction Types of reports
MIS provides useful information to Transactions are entered on line, •Criticism free idea generation •Scheduled report
different levels of management for validated and processed immediately •Availability of information It is a report, which is produced at
discharging their functions more and results are available immedietly. •Stored information scheduled intervals. The format is
effectively and efficiently. •Data processing •Decision on priorities fixed in advance.
a.Strategic management: The first Data is processed immedietly and Components of GDSS •Exception reports
decision area of management is provide immediate output to users 1.Decision makers It is a type of report, which is
strategic planning level or top level 2.Database and model base produced only when exceptional
management. It consists of board of Decision support system (DSS) 3.Groupware situations.
directors and other chief executives. A decision support system can be Techniques of group decision making •Demand/ Adhoc report
They make the organizational goal, defined as a system that provides 1.Brain storming It is a type of report, which contain
objectives, strategies, policies etc. information for making semi It is a method of generating ideas and special information and non-routine
b.Tactical management: Management structured and unstructured sharing knowledge to solve a information.
control level or middle level decisions. particular commercial or technical Advantages of MRS
management decisions involve Characteristics/ capabilities of DSS problem. •Fast and effective report generation
financial or personal consideration. 1.Facilitates decision making 2.Nominal group techniques •Improve performance and
They develop medium range plans 2.Support decision makers at any It is a structured method for group productivity
and defining objectives of their level brain storming that encourages •Improved management decision
departments. 3.Meant for higher level management contributions from everyone and making
c.Operational management: 4.Computers as well as judgement facilitate quick agreement on the •Competitive advantage
Operational management or lower 5.Interaction relative importance of problems.
level management deals with routine 6.Task oriented 3.Delphi method Artificial intelligence
activities. They make short term plans 7.Repeated use It is a structured communication It is the ability of a digital computer or
to carry day to day activities more 8.Identifiable method, developed as a systematic, computer controlled robot to perform
effectively and efficiently. 9.Quick response interactive forecasting method relies tasks commonly associated with
4.MIS structure based on 10.Technology on a panel of experts. intelligence being.
organizational functions Components of DSS Benefits of GDSS
MIS is typically an integrated •Database 1.Greater participation
combination of functional information •Module base 2.Open and free atmosphere (Module III)
system that is designed to meet •DSS software 3.No criticism
information requirement of the •People resources 4.Pooling of knowledge Database
functional sub divisions of an Functions of DSS 5.Personal development Data base is collection of data,
organisation. 1.Quick response 6.Information to non-participant integrated and organized into a single
2.Monitor and control function Limitations of GDSS comprehensive file system.
Functional sub systems: 3.User interface 1.Time consuming activity Necessity of a database
•Production Types of DSS 2.Costly •Reduced data redundancy
•Marketing •Model-driven DSS 3.No responsibility •Reduced programming efforts
•Human resource This type of DSS utalises model to 4.Individual domination •Faster response time
•Finance and accounting perform different kinds of analysis. Executive information system (EIS) •Data independence
•Logistics Here decision are based on models. It is a type of management •The ability to change
•Information processing. •Data-driven DSS information system that facilitate and •Cost reductions
Data redundancy It emphasis on collected data that is supports senior executive information •Information protection
It occurs when the same piece of data then manipulated to fit decision and decision making needs. •Multi user support
is stored in two or more separate makers need. Features of EIS Limitations of database
places and it is a common occurrence •Communication-driven DSS •It is meant for top level management •Concurrency problem
in businesses In this decisions enabled by •Pervasive in nature •Ownership problem
communicating and sharing •Emphasis on external data •More resource required
(Module II) information between groups and •Information in summary form •Security problem
Types of MIS people through web, client server etc. Database management system
1.Transaction processing system (TPS) •Web based DSS Components of EIS (DBMS)
2.Decision support system (DSS) The term simply describes any DSS 1.Hardware The software which is used to manage
3.Group decision support system that is operated through the interface 2.Software data base is called data base
4.Executive information system (EIS) of a web browser. 3.Models and graphics management system. Examples;
5.Expert system (ES) •Personal DSS Benefits of EIS MySQL. Oracle etc.
6.Management reporting system It is designed for individual in order to 1.Flexibility Characteristics of DBMS
(MRS) carry out daily work. 2.Reduce information overload •Data stored into tables
Transaction processing system (TPS) •Intelligent DSS 3.Ability to analyze and compare •Less redundancy
It is the type of information system, It helps the user to select right model 4.Monitoring performance •Consistency
that collect store modify and retrieve based on the type of problem being 5.Improve the performance •Multi users and concurrent access
daily transaction of an organization. analyzed. Expert system •Multiple views
Features of TPS •Desktop DSS An expert system is a computer •Definition and description of data
•Rapid response It can stored in small computer program that is designed to solve •Security
•Reliability system even in personal computer. complex problems and to provide •Query language
•Inflexibility •Knowledge-driven DSS decision making ability like a human •Data persistence
•Controlled access This type of DSS are personal expert. Advantages of DBMS
•Distribution of information to other computer system with special rules Components of expert system 1.Data independence
system used to solve problems. •Hardware resources 2.No redundant data
•Historical data •Document-driven DSS •Software resources 3.Efficient data access
•Link with external environment In this type uses documents in a •Knowledge base 4.Data integrity
•Provide information to other variety of data types. In this type of •People resource 5.Data security
functional systems DSS large volume of data are analyzed Advantages of expert system 6.Data administration
•Meet the requirement of operational for decision making. 1.Availability 7.Concurrent access and crash
level of firm Benefits of DSS 2.Cheaper recovery
Components of TPS 1.Help in solving time 3.Permanence 8.Reduced application development
1.Input 2.Improve efficiency 4.Knowledge based resource time
2.Storage 3.Boost up interpersonal 5.Fast response 9.Improved decision making
3.Output communication 6.Use in risky environment Disadvantages of DBMS
1.Not suitable for simple application Disadvantages of network database The number of raws in the relation is •Global management
2.Complexity model called cardinality •Improved customer service
3.Qualified personnel •System complexity Degree •Reduced set up time
4.Costly •Absence of structural independence The number of attributes in a relation •Higher quality
5.Lower efficiency is called degree. •Timely debt collection

Components of DBMS 3.Relational database model Keys Disadvantages of ERP system

•The database files A relational database model is a It is an attribute which is used to •Costly
•The users model that stores and provides access identify data in database •Time consuming
•A host language interface system to data points that are related to one Benefits of RDBMS •Difficult to measure the result
•The application programs another. •Data entry, updates and deletion will •Problem customization
•Natural language interface system Advantages of relational model be effective. •Difficult to learn
•Data dictionary •Structural independence •Easy reporting •Migration of data
•Online access and update terminals •Conceptual simplicity •Data retrieval •Dependence on vendor
•The output system or report •Easy to design •Database follows a well formulated •Difficult to achieve decentralization
generator •Easy to maintain and use model •Need greater care in evaluation
Data definition language (DDL) Disadvantages of relational model •Changes in database schema are ERP software
It is used to define the structure of •Hardware overheads easy to make •SAP
database. It is classified into two •Easy of design can lead to bad design •Oracle application
logical and physical. 4.Object oriented database model Keys in RDBMS •People soft
Logical structure It is a type of database model, it is Primary key •Baan ERP
The logical structure of database is used to store variety of data type A primary key is the column or •One world
called schema. It refers to way the including graphics, photographic, columns that contain values that Modules of ERP
user view the data. audio, video and text in multimedia uniquely identify each row in a table. •Production planning module
Physical structure format. Foreign key •Purchasing module
It refers to the way data is physically Advantages of object oriented model A foreign key is a column or set of •Sales module
stored. •Improved performance columns in a table whose values •Manufacturing module
Functions of DDL •Improved reliability correspond to the values of the •Inventory control module
•Description of schema or sub •Flexibility primary key in another table. •Finance and accounting module
schema •Inheritance Candidate key •HR module
•Description of data type and name •Capable of handling large variety of A candidate key is a specific type of Steps/ phases in implementing ERP
•Description of the keys data field in a relational database that can 1.Project planning phase
•Provide physical and data •Applicability to advanced database identify each unique record 2.Pre-evaluation screening
independence applications Disadvantages of object independently of any other data. 3.Package evaluation
Data manipulation language (DML) oriented model Alternate key 4.Gap analysis
It is a language used to manipulate •Lack of theoretical foundation Alternate key or secondary key is the 5.Business process reengineering
data in the database. It enable user to •Lack of standard key that has not been selected to be 6.Installation and configuration
manipulate data, add new data, •Lack of experience the primary key but are candidate 7.Project team screening
delete data and modifying data. •Competition keys. It is considered a candidate key 8.System testing
Importance/Functions of DML •Lack of support for security for the primary key. 9.Go live and support
•To manipulate data such as adding. 5.Object relational model Super key 10.End user training
Deleting, modifying etc. It is a combination of object oriented A set of attributes that can uniquely 11.Post implementation
•Provide support for several high database model and relational identify a tuple is known as super key. ERP implementation methodologies
level language. database model. It is said to be the •The big band
•Provides relationship between middleman between relational and (Module IV) Big bang is the most ambitious and
records. object oriented database. Enterprise Resource Planning (ERP) difficult of approach to ERP
•It permits the users and application Advantages of object relational model ERP refers to a type of software that implementation. According to this
of program to process data on a •Extensibility organizations use to manage day to system companies abandon their old
symbolic logical base. •Encapsulation day business activities such as system at once and install a single ERP
Disadvantages of object relational accounting. Procurement. Project system across the entire company.
Database administrator (DBA) model management and supply chain •Modular implementation
DBA is a person who is responsible for •Complexity management. This has been the most commonly
defining, updating and controlling •Increased cost Material requirement planning used methodology of ERP
access the database. It simply refers 6.Deductive/ Inferential database (MRP) implementation. As per this method,
to a person who manage the data. model MRP is a production planning, one ERP module is implemented at a
Functions of DBA A deductive database is a database scheduling and inventory control time.
1.Communicate with users system that can make deductions system used to manage •Slam dunk
2.Granting of authorization of data based on rules and facts stored in the manufacturing processes It is used for smaller companies
access database. expect to grow into ERP. This method
3.Routine maintenance 7.Logical database model Features of ERP of implementation ERP is
4.Establishing standard and A logical database model establishes •Flexibility implemented in one or a few critical
procedures the structure of data elements and •Modular and open processes which involves a few
5.Ensuring database security and the relationship among them. It is •Comprehensive business unit.
integrity independent of the physical database. •Extensibility Issues/ challenges in the
6.Backup and recovery Relational database management •Customization capabilities implementation of ERP
Types/ Structure/ Model/ system (RDBMS) •Customer relation management 1.Rapid implementation
Architecture of DBMS Relational database management •Resource management 2.Complexity in operation
1.Hierarchical database model system is a type of database •Simulation of reality 3.Overrun budgets
A hierarchical database model is a management system that stores data Need for ERP in business 4.Lack of training
data model in which the data are in a row based table structure which 1.Business integration 5.Lack of proper requirement analysis
organized into a tree like structure. connects related data elements. 2.Flexibility 6.Lack of support from senior
The data are stored as records which 3.Better decision making management
are connected to one other through Features of RDBMS 4.Use latest technology 7.Compatibility issues
link. •Provide data to be stored in tables 5.Standardize and speed up 8.Cost burden
Advantages of hierarchical model •Persist data in the form of rows and manufacturing process 9.Inadequate investment in
•Simplicity columns 6.Standardized HR information infrastructure
•Data security •Provide multi user accessibility 7.Reduced manpower cost 10.Human related issues
•Data integrity •Sharing common columns into two 8.Reduced inventory and inventory 11.Poor project management
•Efficiency or more tables cost
Disadvantages of hierarchical model Terminologies of RDBMS 9.Reduce material cost (Module V)
•Implementation complexity Relation 10.Improve sales and customer Business process re-engineering
•Database management problem It means table. Relational database service (BPR)
•Lack of structural independence have several interrelated tables each 11.Efficient financial management BPR is the analysis and redesigning of
2.Network database model table called relation. Benefits of ERP core business processes to achieve
A network data base model is a Domain •Single software the substantial improvement in its
database model that allows multiple Each column of a relational table is •Single reporting performance, productivity and
records to be linked to the same defined on a domain. A domain is a •Smooth workflow quality.
owner files. set of values. •Complete visibility Need and objectives of BPR
Advantages of Network Model Attributes •E-commerce •Changing nature of business
•Conceptual simplicity Columns of the table are called •Extension operations
•Capability to handle more attributes. It is also called database •Easy tracking •Cost and cycle time reduction
relationship types field. •Different modules •Promotes quality
•Easy to access Tuple •Flexibility •Impatient and demanding customers
•Data independence Row of the table are called tuple. •Centralized storage •Increased efficiency
•Data integrity Cardinality •More secure •Better results and products
Process of BPR
1.Create business vision and define
goal
2.Develop the process team
3.Identification of business process
4.Selection of business process
5.Understanding of selected business
process
6.Re-design the selected business
process
7.Design and build a prototype of the
process
8.Implementation of re-designed
business process
Advantages of BPR
•Drastic changes
•Quality improvement
•Quick response
•Change in the corporate culture
•Focus on customer
•Greater competitiveness
•Cost reduction
•Abandon conventional approaches
to problem solving
Issues and problems of BPR
•Lack of proper knowledge of
reengineering
•Lack of training
•Lack of support from employees
•Lack of adequate resources
•Lack of employee awareness
•Unsatisfactory appraisal system
•Delay due to detailed process
analysis
•Delay in achieving results
•Improper monitoring
•Inability to measure improvement