Unit 2: Planning for Information

System
Ashima Wadhwa
 Identification of Applications where MIS can be used

• Enterprise Resource Planning

• Customer Relationship Management
• Decision Support System
• Knowledge Management System
• Content Management System
• Business Intelligence System
• Supply Chain Management
• System Development Life Cycle
• Security & Ethical Issues
 Enterprise Resource Planning

• ERP is an integrated, real-time, cross-functional enterprise application, an

enterprise-wide transaction framework that supports all the internal business
processes of a company.
• It supports all core business processes such as sales order processing, inventory
management and control, production and distribution planning, and finance.
• Scope of ERP
• Finance − Financial accounting, Managerial accounting, treasury management,
asset management, budget control, costing, and enterprise control.
• Logistics − Production planning, material management, plant maintenance,
project management, events management, etc.
• Human resource − Personnel management, training and development, etc.
• Supply Chain − Inventory control, purchase and order control, supplier
scheduling, planning, etc.
• Work flow − Integrate the entire organization with the flexible assignment of
tasks and responsibility to locations, position, jobs, etc.
 Customer Relationship Management

• CRM is an enterprise application module that manages a company's

interactions with current and future customers by organizing and
coordinating, sales and marketing, and providing better customer
services along with technical support.
• Why CRM?
• To keep track of all present and future customers.
• To identify and target the best customers.
• To let the customers know about the existing as well as the new
products and services.
• To provide real-time and personalized services based on the needs
and habits of the existing customers.
• To provide superior service and consistent customer experience.
• To implement a feedback system.
 Decision Support System

• Decision support systems (DSS) are interactive software-based

systems intended to help managers in decision-making by
accessing large volumes of information generated from various
related information systems involved in organizational business
processes, such as office automation system, transaction
processing system, etc.
• DSS uses the summary information, exceptions, patterns, and
trends using the analytical models. A decision support system
helps in decision-making but does not necessarily give a decision
itself. The decision makers compile useful information from raw
data, documents, personal knowledge, and/or business models to
identify and solve problems and make decisions.
 Knowledge Management System

• 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.
• A knowledge management system comprises a range of practices used in an organization to
identify, create, represent, distribute, and enable adoption to insight and experience. Such
insights and experience comprise knowledge, either embodied in individual or embedded in
organizational processes and practices.
• Purpose of KMS
• Improved performance
• Competitive advantage
• Innovation
• Sharing of knowledge
• Integration
• Continuous improvement by −
– Driving strategy
– Starting new lines of business
– Solving problems faster
– Developing professional skills
– Recruit and retain talent
 Content Management System

• A Content Management System (CMS) allows publishing, editing, and modifying

content as well as its maintenance by combining rules, processes and/or workflows,
from a central interface, in a collaborative environment.
• A CMS may serve as a central repository for content, which could be, textual data,
documents, movies, pictures, phone numbers, and/or scientific data.
• Functions of Content Management
• Creating content
• Storing content
• Indexing content
• Searching content
• Retrieving content
• Publishing content
• Archiving content
• Revising content
• Managing content end-to-end
 Business Intelligence System

• The term 'Business Intelligence' has evolved from the decision support
systems and gained strength with the technology and applications like data
warehouses, Executive Information Systems and Online Analytical
Processing (OLAP).
• Business Intelligence System is basically a system used for finding patterns
from existing data from operations.
Benefits of BIS
• Improved Management Processes.
• Planning, controlling, measuring and/or applying changes that results in
increased revenues and reduced costs.
• Improved business operations.
• Fraud detection, order processing, purchasing that results in increased
revenues and reduced costs.
• Intelligent prediction of future.
 Supply Chain Management

• Supply chain management is the systemic, strategic coordination of the

traditional business functions and tactics across these business functions -
both within a particular company and across businesses within the supply
chain- all coordinated to improve the long-term performance of the
individual companies and the supply chain as a whole.
• SCM Processes
• Customer Relationship Management
• Customer Service Management
• Demand Management
• Customer Order Fulfillment
• Manufacturing Flow Management
• Procurement Management
• Product Development and Commercialization
• Returns Management
 System Development Life Cycle

• Like any other product development, system development

requires careful analysis and design before implementation.
System development generally has the following phases −
• Planning and Requirement Analysis
• Designing System Architecture
• Developing system processes
• Coding and testing each module
• Testing the System
• Deployment of the System
• System Evaluation and Maintenance
 Security & Ethical Issues
• Information system security refers to the way the system is
defended against unauthorized access, use, disclosure, disruption,
modification, perusal, inspection, recording or destruction.
• There are two major aspects of information system security −
• Security of the information technology used − securing the system
from malicious cyber-attacks that tend to break into the system
and to access critical private information or gain control of the
internal systems.
• Security of data − ensuring the integrity of data when critical
issues, arise such as natural disasters, computer/server
malfunction, physical theft etc. Generally an off-site backup of data
is kept for such problems.
 Risks in Information Systems
• Risk is inherently characterized by three
specific principles
(i) being partially unknown
(ii) being variable over a time period
(iii) being altered by human actions
 Types of Information System Risk
• General Risks
• Criminal IT threats
 General Risks

• These risks could impact your business:

• hardware and software failures—you may need IT expert assistance
or to purchase a new computer to continue business operations
• malware—malicious software designed to disrupt computer operation
• viruses—codes that can spread from 1 computer to another,
disrupting computer operations (e.g. sent through emails)
• spam, scams, and phishing—unsolicited contact that fool people into
giving personal details or buying fake goods
• human error—accidentally opening an email containing viruses,
incorrect data processing, or careless data disposal
• natural disasters—floods, storms, and bush fires may interrupt service
within the business or to external suppliers (e.g. NBN, electricity).
 Criminal IT threats

• Specific or targeted criminal threats to IT systems and data include:

• ransomware—software that prevents the user from accessing their
files or any part of the computer system until a ransom is paid
• hackers—people who illegally break into computer systems
• fraud—using a computer to alter data for illegal benefit
• password theft—stealing log-in credentials to impersonate you for
illegal gain
• denial-of-service—online attacks that prevent website access for
authorised users
• security breaches—physical break-ins as well as online intrusion
• staff dishonesty—theft of data or sensitive information, such as
customer details.
 Resource requirements for Information Systems

1. Hardware:
The system components which can physically touch – the system unit
(tower, desktop, laptop), internal devices and peripheral devices
(keyboards and monitors) – are called hardware and it is important to
remember that basic definition: The hardware are the parts of the
computer that are tangible and can be touched.
2. Software:
We know that, the hardware needs to know what to do, and that is the
role of software. The software may be divided into two types: first
system software and second application software. Primary piece of
system software is the operating system, such as Windows or iOS,
which manages the hardware’s operation. Application software is
perform for specific tasks, such as handling a spreadsheet, creating a
document, or designing a Web page.
 Resource requirements for Information Systems

• People:
The human element is the most important component of information system and the
people that are needed to run the system and the procedures they follow so that the
knowledge in the huge databases and data warehouses can be turned into learning that
can interpret what has happened in the past and guide future action.
• Data:
Data is one of the most important component which is generally store in form of
information in a database system and a database is a place where data is collected and
from which it can be retrieved by querying it using one or more specific criteria.All types
of data store in warehouse without knowing whatever form that an organization needs.
The databases and data warehouses have assumed even greater importance in
information systems with the emergence of “big data, ” a term for the truly massive
amounts of data that can be collected and analyzed.
• Network:
The network is defined as a system in which more than the system is connected through
a transmission media. It provides an interface to receive a piece of information or send
an information. It is also one of the best resources in the information system.
Hardware, Software and Capacity planning
• capacity management
• Capacity management is the broad term describing a variety
of IT monitoring, administration and planning actions that are
taken to ensure that a computing infrastructure has adequate
resources to handle current data processing requirements as
well as the capacity to accommodate future loads. The tools
used for capacity management range from spreadsheets with
manually compiled performance information to the "element
managers" often included with computing devices to
specialized software or hardware that provides extremely
detailed insights into how computing components are
functioning.
 Capacity management in IT

• The methodologies and processes used for IT capacity

management may vary, but however it is
accomplished, at minimum, it requires the ability to
monitor IT resources closely enough to be able to
gather and measure basic performance metrics. With
that data in hand, IT managers and administrators can
set baselines for operations to meet a company's
processing needs. The baselines -- or benchmarks --
represent average performance over a specific period
of time and can be used to detect deviations from
those established levels.
 Components of capacity management

• Performance -- or throughput -- is a key metric in capacity management as it may point

to processing bottlenecks that affect overall application processing performance. The
central processor unit (CPU) in servers and other connected devices, such as routers,
storage and controllers, should be monitored to ensure that their processing capabilities
are not frequently "pinning" at or near 100%. An overtaxed processor would be a
candidate for upgrading.
• Memory is also a factor in capacity management. Servers and other devices use their
installed memory to run applications and process data -- if too little memory is installed,
processing will slow down. It's relatively easy to determine if a server has adequate
memory resources, but it's also important to monitor other devices in the environment
to ensure that insufficient memory doesn't turn them into processing bottlenecks.
• Physical space is what is most commonly associated with capacity management, with
the focus generally on storage space for applications and data. Storage systems that are
near capacity will have longer response times, as it takes longer to locate specific data
when drives -- hard disk or solid-state -- are full or nearly full. As with processor and
memory measurements, it's important to monitor space usage in devices other than
servers and end-user PCs that may have installed storage that's used for caching data.
 Benefits of capacity management

• Capacity management provides many benefits to an IT organization and

is a factor in overall management of a computing infrastructure.
• In addition to ensuring that systems are performing at adequate levels
to achieve a company's goals, capacity management can often realize
cost savings by avoiding over-provisioning of hardware and software
resources. It can also help save money and time by identifying
extraneous activities like backing up unused data or maintaining idle
servers.
• Good capacity management can also result in more-effective purchasing
to accommodate future growth by being able to more accurately
anticipate needs and, thus, make purchases when prices may be lower.
• By constantly monitoring equipment and processing, problems that
might have hind
 Make or Buy decisions

• A make-or-buy decision is an act of choosing between

manufacturing a product in-house or purchasing it from an
external supplier.
• Also referred to as an outsourcing decision, a make-or-buy
decision compares the costs and benefits associated with
producing a necessary good or service internally to the costs
and benefits involved in hiring an outside supplier for the
resources in question.
• To compare costs accurately, a company must consider all
aspects regarding the acquisition and storage of the items
versus creating the items in-house, which may require the
purchase of new equipment, as well as storage costs.
 Factors Considered for Make or Buy Decision

• Cost concerns (when it is expensive to outsource)

• Desire to enhance the manufacturing focus
• Intellectual property concerns
• Quality concerns
• Unreliable suppliers
• The need for direct quality control over the product
• Emotional reasons (for example, pride)
• Absence/shortage of competent suppliers
• Insignificant volume for a prospective supplier
• Reduction of shipping and transportation costs
• For maintaining a backup source
• Environmental reasons
• Political reasons
 Outsourcing methods
• Professional outsourcing
• IT outsourcing
• Manufacturing outsourcing
• Project outsourcing
• Process outsourcing
• Operational outsourcing
• Professional Outsourcing
• Professional outsourcing includes accounting, legal, purchasing,
information technology (IT), and IT or administrative support amongst
other specialized services. This is one of the most popular types of
outsourcing as there is potential for high cost savings. The company
pays only for services actually provided while having access to high
quality resources, which significantly reduces overhead costs.
• IT Outsourcing
• One of the most common services today, IT outsourcing involves
subcontracting an outside organization to take care of all or part of a
business’s IT needs, which range from software development to
maintenance and support.
• Almost every type of business today has IT needs or at least works with
technology on some level, making it a commonly outsourced
department. For many companies, it ends up being less expensive to
contract a third party IT management team than to build an in-house
one. Enterprises will often use IT outsourcing to store and manage data,
but most large businesses only outsource a portion of IT functions.
• Manufacturer Outsourcing
• Manufacturer outsourcing services are usually quite industry-specific.
An automobile manufacturer, for example, may have an outsourcing
arrangement for building and installing windows in all their models.
Such outsourcing arrangements can result in significant cost
reductions and quicker assembly time.
• The only primary risk of this type of outsourcing would be quality
issues and perhaps interruption of the production line. Many believe
manufacturer outsourcing is also essential for small and mid-size
businesses to survive today's non-stop competitive market.
• Without the help of third-party companies, some businesses simply
lack the economies of scale that allow them to compete with larger
competitors. Fewer companies have the ability to actually invest in
and continuously upgrade equipment, personnel, and process
technology necessary in order to compete in a market where product
lifecycles are shrinking.
• Process-Specific Outsourcing
• Today, it is very common to outsource specific operation-related aspects
to other companies or units that specialize in that particular service. For
example, a bakery can outsource the delivery of a packaged cake to a
courier company like UPS or FedEx. Such a contract would then involve
details on delivery timelines, customer contacts and costs, which allows
each company to focus on its strength and improve customer service all
while reducing costs and time. Process outsourcing is also used to
describe the practice of handing over control of public sector services
such as fire, police, armed forces, etc. to for-profit corporations.
• Project Outsourcing
• Sometimes companies have trouble managing one of their projects or
even completing a portion of a specific project. This is why many will
outsource the project to a project management company. In some
cases, the company may not have enough in-house people with the
necessary skills to work on the project. It may also cost more to
complete the project in-house than to outsource to another, more
qualified company.
 Global Information System

• GIS is a computer-based information system

that performs the activities of capturing,
storing, manipulating,
analyzing and displaying both spatial and non-
spatial data in order to solve complex research,
planning and management problems. It is a
system of hardware and software that
performs the above-mentioned activities on
the information about the areas of the earth.
Purpose of the Global Information System (GIS)

• Support for General Research

• Collection, manipulation, and utilization of
spatial data in database management
• Standardization and Customisation of
cartographic production
• Supports the decision-making process based
on spatial data.
 Subsystems of GIS

1. Hardware
• The GIS operation and GIS software run in a Hardware system which includes
the computer. The computer hence forms the backbone of the GIS hardware.
Other than the computer, it includes input and output devices.
• The input devices are scanners and the digitizer boards. The output devices are
the printers and the plotters for a GIS hardware setup.
2.Software
• The GIS software provides the functions and the tools to:
• Store the graphic information
• Analyze the graphic information
• Display the graphic information
• The basic and important software components of a GIS are:
• Data Input and Data Verification
• Data storage and Database Management
• 3. Data
• The most important component of a GIS system is Data.
There are two types of data:
• Spatial Data: The data objects and elements that are
present in the geographical space forms the spatial data.
This data enables the global finding and location of the
individuals or devices anywhere on the earth. The spatial
data is also called as geographic data or geospatial data.
• Attribute Data: These are information that is appended
in the tabular form mentioned with respect to spatial
features. All the characteristics of the spatial data are
provided by the attribute data.
• 4. People
• Mainly two classes of people are employed in a GIS operation. They are:
• GIS Operator
• GIS Engineer
• The GIS operator works to vectorize the map objects. The GIS engineer
or GIS user use this vectorized data to perform the queries and analysis
to solve problems.
• 5. Methods
• A well-designed plan and business rules are the keys to successful GIS
Operations. The methods are the models and the operating practices
that are unique to each organization.
• The GIS is supposed to have 5 major component subsystems. They are:
• Input
• Management
• Processing
• Display
• Output
Queries?