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INFORMATION MANAGEMENT
DATA
• The word Data is plural of Datum.
• It is defined as raw facts or observations, typically
about physical phenomenon or business transactions.
• Data is the raw material form which useful
information is derived.
• Data is the collection of facts, which is unorganized
but can be organized into useful information.
• Ex – Dates, Weights, Prices, Costs, No of items sold….
INFORMATION
• Data which has been converted into a useful and
meaningful form is ‘information’.
• Information can be defined as data that has been converted
into a meaningful and useful context for specific end users.
• Data is not useful until subjected to a “value added”
process where
• Aggregated, manipulated, organized
• Content is analyzed and evaluated
• Information and Data
• Placed in a proper content for a human user.
CHARACTERISTICS OF INFORMATION
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There are four characteristics of information
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Quality
•
Timeliness
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Completeness
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Relevance
Quality
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Information which accurately represents reality
•
Quality of information makes information system function properly.
•
If the management comes to know that the information system is having errors in it, they will avoid using
it and its value to the decision making process is severely limited.
Measure
Form utility – Closer the form matches the decision makers requirement
Place utility – accessed easily, information has greater
Time utility – information available when needed
Possession utility – possessor of information influences its value by controlling
its flow to others in the organization.
Timeliness
• Information is available when it is needed. Most managers function in a
dynamic environment of change, demanding updated and current
information.
• Computerized information system have the ability to gather, sort,
analyze, store, retrieve and transmit large amount of information in a
very short period of time.
Completeness
• Information is the extent to which it is all there. Information that is
complete means. Information that covers key issues and is sufficient to
support the decision-making situation at hand without critical omission.
Relevance
• Information relevance refers to the extent to
which information is appropriate for the decisionmaking situation facing the manager.
• Extraneous information distracts the decisionmaking from the assigned task and information
overload frustrated the decision maker and
impairs the decision-making processes.
Intelligence
• Is a set of processes and underlying technology solutions that enable
organizations to understand, organize and manage all sort of data types.
• Eg.General files database and e-mails.
Artificial Intelligence Technologies in Business
• AI is a field of science and technology based on disciplines such as
computer science, biology, psychology, linguistics, mathematics and
engineering. Major thrust of artificial intelligence is the development of
computer function normally associated with human intelligence –
reasoning, learning and problem solving.
Domains of Artificial Intelligence
cognitive science application
[expert systems, learning systems, fuzzy logic systems, generic algorithms,
Neural Networks,Intelligent Agents]
Robotics Applications
[Visual perception,Tactility,Dexterity,locomotion,Navigation]
Natural Interface Application
[Natural langauage,speech Recognition,Multisensory,Interface,Virtual Reality]
Information System
• A management Information system is used to transform data into useful
information as needed to support managerial decision making with
structured decision (formally called programmed decisions) which are
those that are based on predictable patterns of activity.(McLeod, 1986)
The typical MIS is based on four major components
• Data gathering
• Data entry
• Data transformation
• Information utilization
Components of information system
•
Information system can be any organized combination of people, hardware, software,
communication networks and data resources that collects, transforms and disseminates
information in an organization.
•
People – people are the essential ingredient for the successful operation of all
information systems.
•
Hardware – the concepts of hardware includes all physical devices and materials used
in information processing.
•
Software – software resources include all sets of information processing instructions.
•
Data – data are more the raw material of information systems.
•
Network – the concept of network resources emphasizes that communication
technologies and networks are a fundamental resources components of all information
system.
Major activities of information system
Input of data resource
• Data about business transactions and other events must be captured and
prepared for processing by the input activity.
• Input typically takes the form of data entry activities such as recording and
editing.
• End user typically record data about transactions on some type of physical
medium such as paper form, or enter it directly into a computer system.
• This usually includes a variety of editing activities to ensure that they have
recorded data correctly.
• Once entered, data may be transferred onto a machine-readable medium such
as a magnetic disk until needed for processing.
• For example, data about sales transactions .
Processing of data into information
• Data is typically subjected to processing activities such as
calculating, comparing, sorting, classifying, and summarizing.
• These activities organize, analyze and manipulate data, thus
converting them into information for end users.
•
The quality of any data stored in an information system must also
be maintained by a continual process of correcting and updating
activities.
• For example, data received about a purchase can be (1) added to a
running total of sales results, (2) compared to a standard to
determine eligibility for a sales discount, (3) classified into product
categories (such as food and nonfood items), (4) used to update
Output of information products:
• Information in various forms is transmitted to end-users and made
available to them in the output activity.
• The goal of information systems is the production of appropriate
information products for end users.
• Common information products messages, reports, forms, and graphic
images, which may be provided by video displays, audio responses,
paper products, and multimedia.
•
For example, a sales manager may view a video display to check on
the performance of a salesperson, accept a computer-produced voice
message by telephone, and receive a printout of monthly sales results.
Storage of data resource
• Storage is a basic system component of information systems.
• Storage is the information system activity in which data and
information are retained in an organized manner for later use.
• For example, just as written text material is organized into
words, sentences, paragraphs, and documents; stored data is
commonly organized into fields, records, files, and database.
• This facilitates its later use in processing or its retrieval as
output when needed by users of a system.
Control of system performance
• An important information system activity is the control of its
performance.
• An information system should produce feedback about its input,
processing, output, and the system is meeting established performance
standards. Then appropriate system activities must be adjusted so that
proper information products are produced for end users.
• For example, a manager may discover that subtotals of sales amounts in
a sales report do not add up to total sales .This might mean that data
entry or processing procedures need to be corrected.
Information technology
• Information technology is the acquisition, processing and dissemination of
vocal, pictorial, textual and numerical information by a microelectronic – based
combination of computing and telecommunication.
• The main contribution of information technology
• Provides new ways to design organizations and new organizational structures.
• Creates new relationship between customers and suppliers who electronically
link themselves together
• Changes the basis of competition and industry structure
• Contributes to the productivity and flexibility of knowledge workers.
• Provides developing countries with opportunities to compete with the
industrialized nations.
Fundamental roles of Information system in business
Information system – Evolution
 Until the 1960s, the roles of most information systems was
simple:
transaction
processing,
record-
keeping,
accounting.
 The new role added, as the concept of MIS was concerned.
 By the 1970s it was evident that the pre specified
information products produced by such management
information systems were not adequately meeting many of
the decision-making needs of management. So the concept
of decision support system was born.
In the 1980s, several new roles for
information system required
•
First – the rapid development of application software packages and
telecommunication networks
•
Second – the evident that most top corporate executives did not directly use either
the reports of management information systems or the capabilities of decision
support system, so the concept of Executive information system. (EIS) was
developed.
•
Third – breakthrough occurred in the development and application of artificial
intelligence techniques to business information system. Expert system (ES) and
other knowledge based system also forged a new role for information system.
• In 1990’s – concept of a strategic role for information systems, sometimes
called strategic information system (SIS).
• TYPES OF INFORMATION SYSTEMS
• An information system is a collection of hardware, software, data, people
and procedures that are designed to generate information that supports the
day-to-day, short-range, and long-range activities of users in an organization.
• Information systems generally are classified into five categories:
• office information systems,
• transaction processing systems,
•
management information systems,
• decision support systems,
• and expert systems.
1. Office Information Systems
• An office information system, also described as office
automation; employees perform tasks electronically
using computers and other electronic devices, instead
of manually.
• The software which an office information system uses
to support these activities include spreadsheets,
databases, e-mail, Web browsers, Web page
2.Transaction Processing Systems
•
A transaction processing system (TPS) is an information system that captures and
processes data generated during an organization’s day-to-day transactions.
•
A transaction is a business activity such as a deposit, payment, order or
reservation.
• 3.Management Information Systems
•
Is an information system that generates accurate, timely and organized information
so managers and other users can make decisions, solve problems, supervise
activities, and track progress. Because it generates reports on a regular basis, a
management information system sometimes is called a management reporting
system.
4.Decision Support Systems
• 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 .
•
Decision support systems can be either fully computerized, human or a
combination of both.
5.Executive information system (EIS)
• An executive information system (EIS) is a type of
management information system that facilitates and
supports senior executive information and decision-
making needs. It provides easy access to internal and
external information relevant to organizational goals. It
is commonly considered a specialized form of decision
support system (DSS).
Software system life cycle (SSLC)
Software requirement specification
Software Design Specification
Software testing
Software implementation
Software maintenance and support
Generic Software Models
Today systems are so large and complex that teams of architects, analysts,
developers, testers, and users must work together to create the millions of lines
of custom written code that drives the system. There are four methodologies
waterfall
methodologies
rapid
application
development
Generic
software
models
Agile
Methodologies
Extreme
Programming
Waterfall Methodology
• Is a sequential, activity based process. One of the
oldest methodology and been around 30 years.
 Planning
 Analysis
 Design
 Development
 Testing
 Implementation
 Maintenance
Rapid application development methodology
•
Extensive user involvement in the rapid and evolutionary construction of working prototyping of a system to
accelerate the system development process.
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Focus initially on creating a prototyping (working model) that looks and acts like the desired system.
•
Actively involves system users in design, analysis and development.
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Extreme programming methodology (XP)
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Breaks projects into tiny processes or phase and development can’t continuous until current phase incomplete.
High-risk projects and those with vague or dynamical requirements are perfect for XP and they will experience
greater success and developer productivity in comparison with other software development methodologies. The
XP team includes not only developers - managers and customers are all part of the XP team working together
closely and dedicated to delivering quality software.
•
Agile Methodology
•
In software application development, agile software development (ASD) is a methodology for the creative
process that anticipates the need for flexibility and applies a level of pragmatism into the delivery of the finished
product.
•
A form of XP, aims for customer satisfaction through early and continuous delivery of useful software
components.
•
Agile means what it sounds like – fast and efficient, small and nimble, lowest cost.
Functional Information System
Functional Information System is based on the various business functions such as
Production, Marketing, Finance and Personnel etc. These departments or functions are
known as functional areas of business. Each functional area requires applications to
perform all information processing related to the function.
Financial Information system
•Financial management Information system that tracks financial events and summarizes
information .
•supports adequate management reporting, policy decisions, and preparation of
auditable financial statements
• Should be designed with good relationships between software, hardware, personnel,
procedures, controls and data
•Generally, financial management information system refers to automating financial
operations.
The Ideal FMIS Systems
• An ideal or well-designed system should:
• Collect
accurate,
timely,
complete,
reliable,
consistent information.
• Provide adequate management reporting
• Support budget preparation and execution
• Facilitate financial statement preparation
• Provide complete audit trail to facilitate audits.
FMIS Building Blocks
•
An FMIS will consist of several elements with different functions. In the
description that follows, the term “module” will imply that the system is a subelement in a FMIS. The core of an FMIS could be expected to include the
following modules and systems:
•
General ledger.
•
Budgetary accounting.
•
Accounts payable.
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Accounts receivable
•
The noncore or other modules are,
•
Payroll system
•
Budget development
•
Asset module.
Advantages of FMIS
There are many advantages of implementing an FMIS. A few of them are listed
below:
•Integrated financial information
•Flexibility of reporting and additional control over expenditure
•Less administration required within the business
Marketing Information System
•Main goal of the marketing function in any organization is to satisfy the needs
and wants of its customer.
•Marketing personnel engage in activities such as planning and developing new
services, advertising, promoting, selling, storing and distributing the goods and
services; providing financing and credit to customer; and conducting market
research.
•System includes such as sales systems, advertising systems, sales promotion
systems, warehousing system and pricing system.
Production information system
• Production information system support decision making for
the operations allocation, and planning of production
resources.
• Purpose of the production system is to acquire raw materials
and purchased parts, test the materials for quality, acquire the
appropriate human resource, workspace and equipment,
schedule
the materials, human resource, space
and
equipment, fabricate the product or services, test the product
or services output and monitor and control the use and costs
of the resource involved.
Human Resource Information system
•
Human resource department are responsible for many factors in a industry .They
are recruiting, assessment, selection, placement, training, performance appraisal,
compensation and benefits management promotion, termination, occupational
health, safety, employee services, compliance with legal constraints, helping
managers with human resource problems and providing top management with
information for strategic planning.
•
HRIS – includes system that help managers keep track of the organization ‘s
position and employees, conduct performance evaluation, provide alternative or
flexible scheduling, recruit new employees, place employees, train employees,
reduce employees, terminate employees, provide employees benefits and provide
reports to government agencies.
Decision Support System (DSS)
• Decision Support Systems (DSS) are a specific class of
computerized information system that supports business
and organizational decision-making activities.
• A properly designed Decision Support System is an
interactive software-based system intended to help
decision makers compile useful information from raw data,
documents, personal knowledge, or business models to
identify and solve problems and make decisions.
Important Features of DSS
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Support for all phases of the decision- making process
Support for Communication among decision makers
Availability of Memory Aids
Availability of control Aids for decision making
Components of a Decision Support
Data Components of a decision support system
Building a data Warehouse
Data Mining and Intelligence Agents
Model Components
The Development of Decision Support System
planning
Application Research
Analysis
Design
Construction
Testing
Evaluation
Training
Operation
Maintenance
Adaption
Benefits of Decision Support System
• The ability to examine more alternative.
• The ability to achieve a better understanding to the business.
• The ability to save time and costs.
• The ability to provide timely information for control of ongoing
operation.
• Risks of Decision Support System
• Lack of Quality assurance
• Lack of data security
• Failure to specify correct requirement.
• Failure to understand design alternatives.
Executive Information System (EIS)
EIS are information system that combines many of the feature of management
information system and decision support system.
When it was developed, their focus on meeting the strategic information needs of
top management.
First goal of EIS was to provide top executive with immediate and easy access to
information about a firms critical success factors (CSF’s)
Ex – Result analysis between e-commerce and traditional system of retail store.
EIS are becoming so widely used by managers, analyst and other knowledge
workers that they are sometimes humorously called “Everyone Information
System”.
 EIS ------- More features such as web browsing, e mail, group ware tools called
ESS (Executive Support System)
Features of EIS
• Information is presented in focus tailored to the preference of
executives using the system.
• Ex – Most EIS stress the use of a graphical user interface
(GUI) and graphics design that can be customized to the
information preference of executives using EIS.
• Ex – EIS – used by a leading oil company Conoco
• MIS, DSS, EIS tools for providing the information and
modeling managers need to support their decision making.
Enterprise Information Portals (EIP)
•
Web based interface and integration of MIS, DSS, EIS and other technologies.
•
Ex – Internal application include – email, project web sites, discussion on
groups.
•
External application includes – industry, financial and other internet services
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Benefits of EIP includes providing more specific and selective information to
business users, providing easy access to key corporate intranet websites
resources, delivering industry and company data for selected customers,
suppliers or business partners.
•
The components of EIP identify it as a web enabled decision support system that
can be personalized for executives, managers, employees, suppliers, customers
and other business partners.
Knowledge Management System (KMS)
•
The use of IT to help gather, organize and share business knowledge
within an organization.
•
In many organization, hypermedia database at corporate intranet websites
have become the knowledge base for storage and dissemination of
business knowledge.
•
For many companies enterprise information portals, are the entry to
corporate intranets that save as their knowledge management systems. So
such portal are called Enterprise Knowledge Portal.
•
KMS architecture deals with knowledge identification, generation and
delivery for application in business.
Knowledge Management System Architecture
• Identification of Knowledge - definition & categorization, surveying &
locating, build knowledge structure.
• Knowledge Organization – processing for Acquisition , Manipulation &
Modeling , creation of KDB.
• Knowledge Delivery – Access control, application methods, storage &
security.
• Approaches to develop Knowledge Management system
• Data
Information
Knowledge
Action
Result
BARRIERS TO KMS
•People
•Management
•Organization structure
•Knowledge itself
Geographic information systems (GIS)
•
1992, hurricane Andrews attacked the east coast of US leaving devastation (Damage)
throughout several states in its wake.
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GIS is a decision support system designed specifically to analyze spatial information.
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Spatial information is any information that can be shown in map from such as roads,
the distribution of the bald eagle population, server systems or the path of a
hurricane.
•
GIS is software to analysis information, generate business intelligence, and make
decision.
•
GIS is a powerful combination of database and graphics technology.
•
There is virtually no limit to the sort of information you can plot with a GIS, including
the placements of roads, the course of rivers, income levels, health conditions, area of
high or low crime.