UNIT – I

Management Information System:

Basic Concepts
Role of MIS
MIS in Business
MIS Developing Process Models
Simon’s Model in Information System
MIS Security Challenges
Major Trends in Information Technology

INFORMATION

In olden days information was considered to be well but know information as power
or knowledge data and information are the two different things where data is of raw
from and information is the processing of what we gathered.

CHARACTERSTICS OF INFORMATION:-

Information updates the level of knowledge.

Information always have a sunrise value.

Information reduces uncertainty.

Information helps in taking decisions.

SYSTEM:-
Group of elements organized with a specific purposes is known as subject system. A
system can also be defined as set of elements arranged in order to accomplish an
object.

INFORMATION SYSTEM :-
Groups of elements organized with the purposes of supporting management and
operational decisions is known as information system.

MANAGEMENT INFORMATION SYSTEM (MIS) :-

It is defined as a system of man and machine providing the information to support the
operations, management and decision making functions in the organization. it can also
be defined as computer decision making system.

HISTORICAL BACKGROUND:-
Use of computers in business activities started in 1960’s but the importance was
gained in 1980’s.The computers in olden days had a very limited access where the
user will be defining what to be done ,how much should be done. Later on the
computer system systems started transactions which is popularly known as transaction
processing system.TPS is an organized collection of people, procedures, software’s,
database and used to record business transactions.TPS was done with limited number
of transactions later on the limitations are remove and known as MIS.

MANAGEMENT INFORMATION SYSTEM

The concept of MIS is evolutionary rather than revolutionary the first starting
traditional view presented “the data in the form of forms and reports”. The data here is
very in personal. so it is done and regular intervels.The traditional view for the
modified and differentiated data form information where the data is similar to raw
materials and information is the finished products. However for much of importance is
given to information and its processing the further modifications of MIS.

Where the information is personalize information is personalize information is

retrieved and access based on by necessity decision making is one of the very
effective feature of MIS.

ROLE OF MIS:
The utilization of information in any business plays a very important role. Information
is the process form of the data it says that all the data collected may not be useful and
so MIS plays a very important role. it is considered to be the part of the organization
as heart plays a very important role in the human body by providing pure blood to all
parts of the body in the same way MIS also plays the same role in the organization. it
collects the data and process in to information and parts it to the required unit.MIS is
useful to all levels of management.

ROLE OF MIS
1) Clerical personnel 1)Transaction processing and
answer different questions.
2)Junior or low level personnel 2)Operational data for planning and
scrapping
3)Middle level management 3)Top level personnel role setting,
Short term planning, target strategic business
setting,contracting..etc plans,implementatiopns..etc

FEATURES OF MIS/CHARACTERSTICS OF MIS:

∗ MIS handles large volume of data

∗ Data is process into information basing on the needs.
∗ Conformation of necessity starts the transaction process.
∗ Complex processing of the data is done.
∗ Mass storage of information .
∗ Quick search or retrieval of data or information is done.
∗ Communication of information to the user in time.
∗ Fulfilling the changing needs of information.
 CHARACTERSTICS OF LEVELS OF MANAGEMENT
CHARACTERSTIC TOP-LEVEL MIDDLELEVEL LOWER-LEVEL
S MANAGEMENT MANAGEMEN MANAGEMEN
T T
1) Planning Heavy Minimum Minimum

2) Controlling Minimum Heavy Heavy

3) Work time 1-5yrs 0-1yrs Day to day

frame

4) People involve Few Many Not many

5) Information Mostly external Internal and more Internal,

accurate historical and
daily accurate.

6) End results Plans,policies,strategie Implementation Finished

s of strategies & products.
performance

DATA v/s INFORMATION:-

People often use the term data and information interchangeably however it is better to
view data is raw material resources that are process in to finished information.

DIFFERENCE BETWEEN DATA & INFORMATION:

DATA INFORMATION
A. Un organized form a) Organized form

B. Refers to details, facts about any b) Refers to only those events which
given are concerned with NTT.

C. Available in raw form c) Available in finished form.

D. Not ready accessible d) Ready accessible

E. Not based information e) Based on data

CLASSIFICATION OF INFORMATION:
Information can be classified in number of ways .

Action vs Non-action information

Recurring vs Non-recurring

Internal vs External
1)Action vs Non-action information:-
The information which induces action is called as action information. The information
which communicates only the status of situation is called as non-action information.

2) Recurring vs Non-recurring:-
The information generated at regular intervals is a recurring information.
Ex:-monthly sales report.

The financial analyses are the report of market research study is a non recurring
information.

3) Internal vs External:-
The information generated through the internal sources of the organization is termed as
internal information. The information generated through government reports the
industrial surveys etc. is termed as external information.

The general usage and applications further divided or classified as

INFORMATION
USSAGE
 Organization information
 Database information
 Functional information
APPLICATION
 Planning information
 Controlling information
 Knowledge information

USAGE:-

a)Organizational information:
When the information is used by all the people in the organization is called as
organization information.

b)Database information:
When the information has multiple users it is called as data base information.

c)Functional information:
It is also called as operational information when the organization is use in the operations
of a bus. It is called as functional or operation information.

Applications:
a)Planning information:
Certain standards ,norms and specifications are use in planning of any activity. hence
such type of information is called as planning information.

b)Controlling information:
reporting the status of any activity through a feedback is called as controlling
information.
c)Knowledge information:
A collection of information through library reports & research studies to build up a
knowledge base as a high information source for decision making is known as
knowledge information.

Components or Elements or Resources of Information system:-

People

Data

Hardware

Software

Network

1)People:
People are those who are required for the operations of all information systems in the
organization. these people includes users & information systems specialists.

a)users:
These users are also called as end users or clients. these are the people who uses the
information system or the information that it produces they can be accountants ,sales
persons,engineers,clerks,managers..etc

b)specialist:
These are the people who develop and operate the information system. they include the
analyst’s programmers and computer operators and clerical information system
personnel system analyst design the information system based on the requirements of
the end users and the programs based on the specialization of system analyst.

2)Data:
Data is more than the raw material for the information system. the concept of data
brooded by the managers& the information systems professionals .they realize that data
constitutes a valuable organizational resources to organization. data can be taken from
many forms. it is composed of alphabetic,numeric&other charecterstics.that describe
transactions. The text data consists of sentences & paragraphs used in written
communication image data consists of graphical shapes & figures, audio date consists of
human voice & other sounds which also the important firms of date.

3)Hardware:
The concept of Hardware includes physical devices and used in information
processing specifically it involves not only machines such as computers and calculators
but also all the other media which are tangible on which the data is recorded. Hardware
includes
A)computer system
It consists of CPU,MONITOR,KEY BOARD,MOUSE,varity of inter connected
peripherals of the information system.

B)Computer peripherals
There are the devices which includes KEYBOARDS,ELECTRONIC MOUSE & other
INPUT devices & OUTPUT devices which are used for the information system.

4)Software:
This concept includes all the set of information processing used in information system.
The concept of software includes not only the set of operating instructions called
programs. but also the set of information processing instructions needed by the people
called as procedures.

The following are the some examples of software

a)system software
it includes the operating system which controls and supports the operations of a
computer system.

b)Application software
these are the programs that are directly for a particular use by the end users.

c)Procedures
these are the concept of which are operating the entire information system .procedures
are the operating instructions for the people who are using information system.

5)Network:
The generic category include all of the people.Hardware,Software& Data resources that
directly support the operations & used of common network.
Ex:-common process such as modems internet & work processors common control
software..etc

Types of information system

Operating support system Management support system
1. Transaction processing system 1. Management information system
2. Processing control system 2. Decision support system
3. Office automation system 3. Executive information system

Operating support system:-

1)Transaction processing system(TPS)

TPS is very important and useful for recording and processing data. The processing
transactions are done in two ways.
Batch processing:-batch processing is done over a period of time for a set of
applications.

Online processing:-online processing is done immediately often the other transaction.

2)Processing control system(PCS)

The PCS make use of physical processing where the system takes the help of real time
or online processing system.

3)Office automation system(OAS)

It enhances office communication and increases the productivity. it is used to provide
information and updating to the total organization at the same time.

Management support system:-

When the information system focuses on providing information to managers. for
decision making is called as management support system.

1)Management information system(MIS)

It provides information in the form of forms & reports and this is helpful to analyses the
information whenever needed to the organization.

2)Decision support system(DSS)

This helps us to take decisions directly basing on the information provided by the
system

3)Executive information system(EIS)

EIS combines the features of MIS & DSS .it helps the managers to take day to day
decisions.

Definition of MIS:-
According to Walter ,”MIS is defined as a formal method of collecting information in a
presentable form in order to facilitate effective decision making & implementation to
carry out organizational operations for the purpose of achieving organizational
objectives.

According to Gordon MIS is defined as

An integrated user machine system

For providing information

To support the operations communication mgt and decision making functions.

Objectives of MIS:-
 Fixing responsibilities
 Facilitates decision making
 Avoid duplication of data& work
  Saving of time
 Establish uniform procedures improving services

Components in MIS:-
Data gathering
Data entry
Data transferring
Information utilization
Management Information System In Business

H.R Manufacturing Inventory Sales Accounting Financial Pay roles

Marketing Information & control order processing Information Information system
Information system Production System System system system
System Information
system
Sales Recruitment Product design EOQ Taking orders Trail balance Cash Pay
management Selection Product Reorder Processing orders P & L a/c & Statement of pay
Sales force Placement planning level Ware houses Balance sheet securities pay slips
management Performance Plant location Supply operations Income & management.
Advertising appraisal Plant layout Customized expenditure Capital budgeting
& promotion Compensation& Quality control production a/c Financial
Market maintenance forecasting
research Financial planning
Sales
forecasting
Marketing
management

MIS MODELS

Simple model:-
MIS model explain process of data transformed into information. The simplest way is
taken from systems approach which explains the processing into three steps

Input

Process

output
These 3 steps helps in transforming data into information. here the data is the input
processing done with the help of available hardware, software& people & the output is
the information.

INPUT PROCESS OUTPUT

DATA SOFTWARE INFORMATION

PEOPLE
Complex model:-
The simple model is further modified and presented as complex model. which again
processes the data into information with the help of softwares,people & mathematical
tools. The software’s & people helps to present the data into periodical reports. where
as mathematical tools also known as problem solvers stimulate the organization. the
outcome of this process is information.

This model is also known as modern model. the process is usually taken to solve the
given problem in a particular environmental condition.

Robert antony

According to Robert antony a data in transformed into information with the help of
levels of management. He defined the levels of management as strategic level,
management level, operational level. These 3 levels are commonly known as top
level,middile level, low level management.

Strategic level:-
They deal with long range planning and the decisions are often taken by higher-level
people. The decisions are concerned with new business plans, new branch opening,
product launching…etc

Management level:-
This level is also known as management control level. this level is considered to be
very important because it connects the top level to lower level.notonly this it recruits
personals, planning for short term,training..etc.
 Operational level:-
It is related to short term decisions, day to day issues inventory levels,pricing,output
production ..etc.the decisions beside the level of information to be gathered.thus,it
explains the data and its volume which is to be transformed. the information needed by
the levels of organization are not the same. it actually depends on the characteristics of
the information.

Characteristics Operational level Management level Strategic level

Source Largely internal --------------- External
Scope Nano --------------- Wide
Accuracy High --------------- Lower medium
Frequency of use Very frequently --------------- Infrequent/rarely
Time origin Historical --------------- future

The above table explains the information required by the management

activity/managers. Basing on the information gathered decisions are taken. The
decisions are

 Structured decision:- Structured decisions helps in implementation of plans.

 Un- Structured decision:-Un Structured decisions are often arise from
situations.

Simon’s Model:-

According to Simon’s model, making decision is not a single activity. The decision
making process consists of several activities that take place a different types for 4
different stages explained by Simon are

Identification

Design

Choice

Implementation

1)Identification
This stage is also be called as intelligent. it consists of identifying the problems
occurring in the organization. Intelligent where,whom,who,with..etc

2)Design
Design explain the different alternatives an individual prefers to provide a solution. This
activity actually requires both intelligent then identifying a problem.

3)Choice
This stage helps in solution from different alternatives available. usually the selection is
done related to the given solutions or problem.
4)Implementation
It is the final stage where the choice is process or solution is given to the identifying
problem which leads to decision making.

According to Simon decision can be taken with the help of stages defines above the
decisions taken are 3 types

Programmed decision

Non- Programmed decision

Semi Programmed decision

1)Programmed decision
The program decisions are used by all the level of organization. These decisions are
well defined preplanned and repetitive in nature.
Ex:- paying salaries,caliculaating inventories..etc

2)Non- Programmed decision

These occurs unexpectedly. They are not of routine type. they required specific attention
by the top level management.
Ex:- purchasing of heavy machinery, launching a new product..etc

3)Semi programmed decisions

These are repetitive and non repetitive in nature. these decisions are only taken with the
help of previous decisions.
Ex:- Budgets

MIS STRUCTURE
The two approaches in MIS structure are
1) MIS based on management activity
2) MIS based on organization activity

MIS based on management activity:-

It is also called as utilization of MIS by the management (refer to antony model).

MIS based on organization activity:-

The structure of the information system can also be described as information used by
the organization. There is no standard classification on the amount of information
needed by the organization. In the other way we can state that activities that are done
take the information. Usually the activities are MARKETING, PRODUCTION,
ADVERTISING, LOGISTICS etc..
The levels of management divide the activities basing on the importance of that activity.

Computer security controls:-

The information received by a manager is to safeguard for future used this information
must not be passed on to any person but it happens that certain problems start
unknowingly which causes threats to the information system. the threats are
 1) Disasters
2) Employees & consultants
3) Business partnership
4) Out siders
5) Virus

Disasters
They don’t occur daily. Disasters are different types. such as accidents, fire, flood etc.,
there is a less chance to control these disasters.

Employees & consultants

Dishonest employees or consultants can easily transfer the information. this is done
wontedly or unwontedly in some situations due to pressure.

Business partnership
Any business partnership share information and if in any case their partnership breaks
there is a chance of passing the information to others.

Outsiders
Outsiders such as hackers, try to steal the information with out any knowledge of the
original user. There are two types of problem. techniques by which the outsiders take
the information
a)Script kidders
They try to find out wholes in your computer and carryout the information.
b)Social engineering
These people try to convince or threat the user to give away the password setting that
they work for the society.

Virus
A computer virus is a small program that hides in the actual program or attached to any
e-mail message.

MEASURES
1)Sun guard Mobile security system
2)Data mirroring Copying all the data including temp files
3)Data backup Copying important information only
4)User identification Identification techniques
5)Access control Giving permission to the appointment
persons
6)Auditing Verifying
7)Physical access Locking of components system,laptaps
8)Monitoring Verifying work by persons
9)Hiring & employing evaluator
10)Encryption
Sun guard
Sun guard is a mobile security center. which is actually a mobile van providing security
or backup to the information available in the organization. it works with the help of two
sides.
1)Hot sites 2)cold sites

Some times if there is a certain break up in the information system.these needs

immediate response or presentation of data.in those type of situations hot sites are used
and in some situations it is not possible to provide immediate backup.so,in those
situations cold sites are used.

Data mirroring
It is a technique which provides or creates data into some other system.this is very
popular technique used for disaster management.

Data backup
It is the very old technique where all the important information is saved for further use.
Data backup can be done by using cd’s & dvd’s or other secondary storage devices and
ups ,..etc

User identification
User identification is one of the different task to maintain computing security controls.
the normal techniques used are passwords. passwords are coded secret numbers or
names or both available to the user to access a particular account.

Password generators
Password generators are the small electronic cards which the user’s carry these cards
generate new Passwords. The user have to remember the passwords every time he uses
the cards.

Bio-metric systems
It is a field of study that attempts to identify the people based on biological
characteristics.

Access control
This method enables the user to use the data whenever needed but it cannot be modified.
so thus the information is personalized.

Auditing
Auditing is a technique which takes on periodical checkups. these creates fear in the
user so that he will alert while using information.

Physical access
It provides physical security to the computer system.the user will be controlled
restricted to only a certain area.
Monitoring
It is a similar to physical access but monitoring is done when the user is using the
information system.

Hiring & employee evaluators

A specific person is hired to provide the day to day usage of information.

Encryption
Encryption is the foundation of many aspects of security. it helps in protecting the
message send through internet. The encryption process is similar to communication
process. it includes two types of keys
1)single key 2)dual key

Single key
It is easily available where both the sender and receiver will have a software that
handles encryption and decryption of secret key. the single key system was first called
as data encryption standards and later on it is modified as advanced encryption
standards
DES (data encryption standards) holds 54bits and are 1241,92,256

Dual key
The essence of dual key system further developed to pan countries secret messages. The
single key system creates a key which is passed on to the receiver. but some times they
are unlocked without the receiver.so,to avoid their limitation dual key was introduced
.this key provides two types of keys
1) Public key 2) Private key
There the message is passed on the receiver with the help of public key. but the
decoding of the message needs private key.

Ethics in computer security system

There are different measures taken to safe guard the information in the organization. the
computer professionals who deal with the information are needed to take the following
ethics.

Access information or communication when authorized to do so.

Honor contracts/agreements and responsibilities.

Access and provide appropriate professional reviews

Achieve the highest quality in process and professional work.

Comprehensive and thorough evaluation of computer systems and their impact
which includes analysis of risk.

The ethics thus explains that the professionals are to safe guard the information by the
following ways.
 Unauthorized discloser of information
 Unauthorized modification
 Unauthorized with holding of information
 UNITII

Managerial Decision Making:

Decision Making Process
Relationship between Decision Making and MIS
Group Decision Making Integrating Managerial Levels and Functional areas by
MIS Components of Information System Organization System Versus MIS.

Managerial Decision Making:

Decisions are taken by the organizations from time to time depending on the
information gathered in the organization. the information is gathered basing on the
needs of the manager. this is the reason why the information system designs have
focused their maximum attention on designing the system with the help of managers
who communicate and distribute the information for decision –making.

In this context ,the information needs to differ on the basis of the following factors.

There are different types of decisions and each decision require different types of
information.

Management at different levels makes different types of decision.

Decisions are taken based on the information gathered.

Decision making is the process which consists of different steps.

The word ‘Decision’ is derived from the Latin word ‘Desedire’ which means cutting-
away or cutting-off. this means every problem or decisions have different alternatives
and best alternative is selected for decision-making.

Human behavioral decision making

Human behavior along with information effects the decision making. the three different
aspects of human behavior involved in decision –making are
1) Cognation
2) Conation
3) Affection

Cognation:-
These decisions are taken with the help of mental activities or mindset in association
with knowledge.

Conation:-
The decisions taken are based on the action of mind implied by words such as willing,
liking etc.,

Affection:-
The decisions are mainly based on emotional feelings with words such as temperament
loving….etc
Features of decision making
Decision making is based on certain factors which actually proves the need and
necessity of alternatives.
Decisions involved final solutions.
Decisions are taken based on the alternatives available.
Existence of alternatives provide freedom of choice to the decision makers.
Decisions involved in different types of feelings.
Decisions are goal directed.

Process of decision making

Simon’s model of decision making is considered to be the best way to take on decisions.
the process includes intelligence,design,choice,and implementation.

Intelligence

Design

Choice

Implementation

Types of decision making

The common two types of decisions are
1) Frequency of decisions 2)Structuring of decisions

1)Frequency of decisions
Decisions are sometimes taken regularly over a period of time usually these decisions
are repetitive in nature. There are three types of decisions based on frequency.
Strategic
Tactical
Operational

Strategic decisions:-
These are involved in long-term planning. they are taken by the top-level management
and are non-repetitive in nature. Ex:- mergers, acquisition

Tactical decisions:-
They are taken in order to implement strategic decisions. They are done by the middle
level management. Ex:- expansion of organization by purchasing man & machinery

Operational decisions:-
They are taken by lower-level management and are repetitive in nature. These decisions
are related to day to day issues of the organization
2)Structuring of decisions
Decisions are sometimes taken basing on the structure followed for making decisions. It
denotes a parameter that can be prescribed in advance of making a decision. Structuring
decisions are classified into
a)Programmed decisions
b)Non-programmed decisions

a) Programmed decisions
These are also known as structured decisions. They are routine and repetitive in nature.

b) Non-programmed decisions
These decisions are taken for solving a unique or unusual problem. The decisions here
are unstructured and so the outcome is also unstructured and can’t be estimated in
advance. These decisions are also called as unstructured decisions.

Conditions for decision-making

Methods for deciding alternatives
There are several methods which are helpful to decide the alternatives. these are
basically a search process which helps to select the best alternative to satisfy a specific
decision. The methods are
Optimization
Pay-off analysis
Decision tree analysis

Optimization
This technique is used when the decision making system or solutions are closed,
deterministic and recurred to optimize the use of resources under limited conditions.
Ex:- linear programming, dynamic programming, inventory models…etc

Pay-off analysis
When the alternatives and their outcomes are not known then the decisions are made
with the help of pay-off analysis. the pay-off matrix with rows and columns. The rows
indicates the alternatives and the columns indicates the probability of outcome or
occurrence.the intersection of rows & columns show the value of result or solution.

Chance of evolution

Alternatives

Solution
Decision tree analysis
When the sequence of alternatives are available the decisions are taken with the help of
decision tree, decision tree is a multi-stage process. which includes different set of
alternatives at each and every stage. these alternatives provide a set of chance to occur
the decision tree is drawn with the help of squres,circles and straight lines. the sequence
represents a decision point.stright lines are used for connecting the squares and circles.
so decision tree is a process by which sequence of alternatives are analyzed to take a
single decision.

Relationship between MIS and decision making

MIS is a concept where the managers gather the information to complete their activities.
Every data is processed to provide a perfect information. the relationship between MIS
& decision making can be understood by the sources. the two sources which provide
data/information
1) internal environment 2) external environment
These two environments provide information which is taken by MIS and provides
alternatives which is return help in decision making.

1) External environment
Economical
Social
Legal
Technological

2) Internal environment
Marketing
Finance
Production
Operations
Hr etc.,

GROUP DECISION MAKING

Individual is a person in the organization or in the society who represent himself. Group
refers to collection of individual people to perform a single task.

Group decision making process depends on different stages of group formulation each
and every stage involves in certain decision making steps.
INDIVIDUAL VS GROUP DECISION MAKING
Individual is a single person who takes decisions only with its own intelligence, ideas
or knowledge. whereas group is a collection of people coming together to share their
ideas or knowledge.

For decision making it is little difficult to estimate who will take proper decisions or
who will give appropriate solution. so the decision makers selection is done basing on
I. Nature of the problem
II. Time availability
III. Quality of decisions
IV. Environment of decision maker
V. Legal requirements ..etc

It is suggested that the group must not be too large because if many people pool
in different controversies which cannot be justified. in some situations individual
persons in a group become irresponsible for these reasons the size of the group should
be restricted.

DECISION MAKING STYLES

The decision making styles helps to select an individual or group for taking decisions.
these styles are of three types .which are further divided in to five. they are
1) Autocratic style
2) Consultative style
3) Group style

1) Autocratic style

Autocratic style deals with a single individual and if further divided into A1 and A2.

Autocratic 1
In this type the individual alone take decisions based on the facts and information
available with him. here the decision maker does not collect any information from
any sources or individual in the organization.

Autocratic 2
In this style individuals alone take decision but with specific data from a specific
people. here importance is given to the specific people who might be on individual in
the organization or outside the organization.

2) Consultative style
In this style one to one consultancy in the base of decision making where the decision
maker contacts a person together the information.

3) Group style
Group style is totally focused towards a group. It is further classified into G1 and G2.
Group style 1
Decision in this style taken by the information or reports gathered from different
people. these people can be from any area of the organization.

Group style 2
The decisions are taken by conducting a meeting with different members of the group.
Decision making
style

Autocratic Consultative Group

A1 A2 G1 G2

TECHNIQUES OF GROUP DECISION MAKING

Group decision making involves different people of the group. Here decisions are
taken basing on every individuals participation which includes different techniques.
The techniques are
1. Brain storming technique
2. Nominal group technique
3. Delphi technique
4. Fish bowling technique
5. Dialectic technique

1) Brain storming technique

In the technique the individual person generates the ideas in a very close environment
and the final decision is taken from those ideas.

2) Nominal group technique

In this technique the ideas are explained with the the help of any equipment or
machinery .normally the nominal technique used in a group.

3) Delphi technique
In this technique the respondents will not interact face to face with the decision maker.

4) Fish bowling technique

It is a group technique where the individuals sit in a circle and when any of the
individual wants to present his ideas.he should be coming into centre of the circle.
while generating the ideas to the other members in the circle any individual can raise
questions regarding the problem.

5) Dialectic technique
In this technique both the positive and the negative aspects are discussed to generate
the ideas.
INTEGRATING FUNCTIONA AREAS WITH MIS
The different activities taken by organizations represent the functional areas. The
integration is done with a help of pyramid where each functional area is divided in to 3
levels. Top level, middle level, lower level. The information here is passed on through
MIS.basing on the information the decisions are taken

Organizational system Vs. MIS

S.NO System Organizational system MIS

1 Conceptual system √ √
2 Empirical system √ √
3 Natural system √
4 Manufactured system √ √
5 Social system √
6 Machine system √ √
7 Permanent & temporary Organization permanent Organization
system temporary
8 Open & closed system √ √
9 System & sub-system System Sub-system
10 Stationary & non- Stationary Non-stationary
stationary system
11 Adoptability & non- √ √
adaptability system

Conditions for decision- making

The decision maker know the process in which the decisions are to be taken but the
outcome or result cannot be justified by the decision maker. the reason is the decision
maker takes decisions in different conditions. they are

Conditions of perfect- certainty

Conditions of complete-uncertainty

Risk factor
The above conditions are to be checked because the decisions involve selection of
alternatives for the present as well as future.
 UNIT –III
System and Design

Systems Development Initiate

Different Methodologies

System Life Cycle Design

Prototype Approach

Detailed Study on Life Cycle System

System Implementation

A system is generally used for explaining the inter relationship of the people in the
organization .the term may also be used for a group of actions ,personnel’s and
procedures used for the processing the data. systems which operate with out computers
is known as automatic systems.

A system provides frame work for describing and understanding the features and
problems of the subject. a system demands logical presentation of certain rules and
regulations ,principles, policies.

Types of systems
There are different types of systems. the basic nature and its working is determined by
the organization. popularly the systems are divided on the basis of need of system
analyst or no involvement of such person.systems are designed basing on the needs of
the organization.here they take care of where the system need updation or proper
checkup when it focuses on extra information.the popular way of classifying systems
are
1. Based on system analysis
2. Based on no requirement of system analysis.

Based on system analysis

Certain systems need extra care through it’s working process.here a special person is
appointed to check on the required activities.the systems are
1. Transaction processing system
2. Functional system
3. Integrative system
4. Enterprise system

Transaction processing system

The total system works on different types of transactions made in the organization.they
take on the data and process into information .the focus here is mainly on transaction
process.

Functional system
The functional system takes on the activities related to functions in the organizations.
the main focus is on the operation system of different functional areas.

Integrative system
The integrative system refers to the whole system it’s activities. the main focus is on
integrating different activities of the organization.

Enterprise system
The enterprise system is design basing on the activities of each and every functional
area. the focus is on combining the systems with personals and their decision making
activities.

In addition to the above four systems we do have another important system called as
data processing system.

Based on no requirement of system analysis

Some systems come into existence without any formal formation and the process with
out the need of any specific person.these systems are generally existing systems. They
are
1. Open and closed system
2. Structure and non-structured system
3. Adoptive and non-adoptive system
4. Programming and non-programming system

System analyst
A system analyst is a person responsible for the proper functioning of systems and
examining the total flow of data through out the organization.

Role of System analyst

Role of system analyze change with the changing time. in 1970’s &1980’s a person was
appointed as a system analyst do not have any influence on the working of the nature of
the system. the systems at those times are based on self-working nature with the
changing time the role of system analyst increased. now for every system a particular
person is needed who will take care of different activities of the system.

Need of System analyst

The role of system analyst gave a new dimension to the system. the need of system
analyst and analysis is focused on

1. System objective
2. System boundaries.
3. System importance
4. Nature of system
5. Partipation of the user
 6. Understanding the resource needs
7. Assessments etc

System development and design:

System development:
Developing a system is a artificial task. A system has to be developed basing on the
needs of the organization system development includes those activities that go into
producing an information system, solution to the original problems are take advantage
of the existing employment opportunities. The organizations stock level determines the
various conditions for the system . the strategy of system development involves the
approach that will be adopted in system development . the system development is done
with the help of three alternative approaches.
1. top bottom approach
2. Bottom top approach
3. Integrative approach

Top bottom approach:

The top bottom approach is a traditional approach where all the decisions are taken by
the top level people and these decisions are followed by the middle and lower
management. The importance is given to the top level where all the activities are
planned and executive. The middle and lower level people, who are called as
performers, execute these decisions.

Bottom top approach:

The decisions are made based on the necessities of the lower level management . they
feel that system is very near to the day to day life

Integrative approach:
This is the combination of both the previous approaches .it is helpful in eliminating the
limitations of the other two approaches. In this system ,the management initiates the
structure in integrative manner . the total work here is divided basing on the activities
which is to be done . the top level management takes decisions and pass it on to the
middle level. The middle level management executes the decisions by informing it to
the lower level management. the lower level people ,who are the actual performers will
provide a feedback to the top level management through the middle level.

System design
The design of a system is based on the opportunities of the organization. it deals a clear
picture the approaches of the organization .it gives a clear picture of how the system is
to be working the design is developed with the help of tools which makes the designing
process easy. the designs are
1. Waterfall design
2. Spiral design
Waterfall design
Waterfall design is named after the real waterfall.here,in this design there is no upward
direction. this model fits into every system. particularly when a system do not adopt any
changes, it minor changes has to be implemented. it is to be made by only at that
particular step. the waterfall model applies well to the basic rule.

Spiral design
some organizations taken decisions very frequently. those the activities are repeated one
after the other. the spiral system fits when we are developing a very large system. the
spiral model is put into action with the mission and goals of the organization. later on it
goes to the continuous process. each such process is known as version. the version
changes from the step to the other step. it makes on additional concepts whenever need
arises and ends when the given particular task is completed.
System development life cycle

Man made life cycle Nature made life cycle

Feasibility study Introduction

System analyst Growth

System design Maturity

System development Saturation

Testing Decline

Implementation

Maintenance

Tools and techniques of system development life cycle

Case
FSD (formal system development)
Prototyping
RAD
End user

Case tools (computer aided software engineering)

It is used for rectifying the errors and faults in software in the system development life
cycle Upper case Lower case

FSD (formal system development)

Formal in a proper order identification of information –investigation information
followed by analysis and development.

Prototyping
A tool where starts with system development life cycle repeatedly done up to the end
user’s satisfaction.

Rad(rapid application development)

Fastly designing an application by using with high speed
• Management
• User
• Tools
• methodologies

End user
Developed by the end user. User will update the system
System implementation
After designing and developing the system it will be installed in the organization.
where the access of information is needed.

UNIT –IV

Decision Support System

Definitions of DSS

Architecture of DSS

Scope of DSS

Characteristic and Capabilities of DSS

Components of DSS

Modules in DSS

Classification of DSS

DSS Tools

DSS Generators

Steps in Designing a DSS.

Decision Support System

Dss reports to decision support system. this is different from MIS because true
humans are given first priority.Dss makes a manager to think from all the aspects so as
to take the decisions whenever and where ever required.Dss is an integrative computer
based system which helps the decision maker utilize the data and models to solve the
problems. it is a process where managers at different levels take on decisions with the
information available in any type of structure.

Difference between MIS & DSS structure

MIS DSS
Works on routine and structured Works on structured, semi structured
organization ,unstructured organizations
Computers are basic important part of Humans are important in DSS
MIS
MIS needs computer experts DSS needs managers with own decision
capability
MIS offers indirect access for managers DSS offers direct access for managers.

Architecture of DSS
The architecture of a DSS shows how does process to prepare a DSS program.
Information is collected from internal & external sources and also the elements of
DSS.
End users / DSS user also treated as a part of structure the end user represents for
information and the output is provided basing on the request. the output is represented
in number of ways.
i.e., forms, reports, spread sheets etc.

All these programs are also supported by information from MIS to DSS model.

Characteristics
1. Ability to support solution for any type of complex problems utilize in any type
of structure
2. Supports all the levels of managers
3. Supports all the levels of management
4. Ability to work in any environment
5. Supports individuals as well as groups
6. Supports variety of techniques are decision making process
7. MIS is a product and DSS is a process
8. Allows decision making to interact with different types of environment
9. Access data and manipulate it
10.Provide online solutions

Capabilities of DSS
1. DSS can update or manipulate the data or information
2. DSS creates special reports in desired formats
3. DSS can perform any type of calculations and execute the data
4. DSS can construct simple models that describe a problem or situation
visualized by the user. it performs activities in trials in contains optimization
techniques to find out the best method.

Components of DSS
 Data management sub-system
 Model management sub-system
 Knowledge management sub-system
 User interface sub-system
1. Data management sub-system
The data management subsystem is composed of the following elements. it explains
how data is gathered, stored, retrieved and manipulated.
1. DSS data base (or) data base
2. Data base management system(DBMS)
3. Data directory
4. Query system

DSS data base (or) data base

The data base supports the DBMS.it gathers information from different sources. a data
base is collection of inter related data, organized to meet the needs and structure of the
organization. the data in the data base is collected through internal, external and
personal sources.

DBMS
Data base is created and accessed, updated, retrieved by DBMS. an effective data base
and it’s management can support many managerial activities and general navigation
among records create and maintain reports,. etc

Data directory
It is a catalogue of all the data available in the data base. this is similar to the contents
of any book. it contains information of the data and its functions which provides and
easy access to the required data.

Query system
DSS often put some a variety of questions because of it’s manipulation facility. this
questions are answered by query language. this works on a special language called as
structured query language(SQL).it accepts the questions from any component and
determines the request followed by the answer.

2. Model management sub-system

This is a software package which includes designing financial,statistical,management
models.that provides the system with easy processing. the elements of model
management sub-system are
1. Model base
2. Model base management system
3. Model language
4. Model directory
5. Model execution & integration

Model base
A model base contains routine and special models that provide analysis of activities
done in DSS.this is supported by data base of DBMS.
Model base management system
It is a capable of inter relating models with appropriate linkage through a database.

Model language
It is a process by which models can be prepared. this can be done with the help of
natural language or programming language. natural language such as English or other
languages are need to design a model. this is easily accessible or corrected if any
errors occurs. programming language such as C,C++,java,..etc are need for designing
the model. this programming language through written in natural language is
debugged by the programs.

Model directory
It is a catalogue of all the models & other software’s in the model base .it contains the
information of models,contents,definations..etc

Model execution & integration

Model execution is a process of controlling the actually running of the model. model
integration involves combining the operations of several models whenever needed.

3. Knowledge management sub-system

The knowledge box is created by the individual who is designing a problem, analyzing
a problem, designing a model etc., The reason why knowledge management sub
system is introduced in as DSS works on structured ,semi-structured & unstructured
problems and their solutions are complex and need expertise. the solution to such
problems can be clearly defined only by expert having individual intelligence.

4. User interface sub-system

The DSS specializes in different activities one of them is including the user ,in
decision making activities. the user communicates & commands the DSS through this
sub-system. the term user interface covers all the aspects of communication between a
user & DSS.it not only includes the hard ware and software but also deals with factors
which enable easy access, easy to use, human interaction,etc.the user interface sub-
system is managed by a software known as user interface management system.this
system is composed of several programs that provide capabilities listed in DSS for this
reason,the user interface management sub system is also known as dialogue
generation management system.

Classification of DSS
Alter’s output
classification

Data oriented Data & model oriented Model oriented

-File drawer system Analysis information Accounting model Representation

Optimization, Suggestion
-Data analysis system
Alter’s output classification :
Alter in 1980’s classified DSS basing on the degree of action of a system’s output or
his classification is based on the executed by which the system output is included in
decision making. In other words, the output classification is based on the output
received from the system after processing to take decisions. The classification is
discussed in five categories; where the first two categories discuss the data and model
system, the third category discuss the data and model system, the remaining four
categories are focused on models.

File drawer system

It access the data items and helps in keeping the manager updated by the information.
it uses the on-line system to update the information. this system is used by every level
of management.
Data analysis system
It helps in manipulating the data by means of operations attached to the tasks,
activities related to general analysis operation.

Analysis information system

The system is the combination of both the data and model systems. this system access
the database with the help of small models. they are specialized staff and functional
managers to check data and models.

Accounting model
Accounting model is a model oriented that calculate the consequences of action on the
basis of accounting definition. They project on inputs, outputs, budgets, incomes &
expenditure.
Representational model
This model is calculated on the consequences of actions based on non-definitional
characteristics. this is done with the help of trained staff. it main usage in analyze the
long term budgets.
Optimization model
The model provides guidelines for action by generating optional solution from a series
of actions .these models are used to decisions that are described mathematically.
Suggestion model
This model is used for giving suggestions which would be helpful for giving
decisions. The main objective is to analyze the future.

In addition to alter’s output classification, we also have

H & w classification
Intelligence DSS
Individual,group & organizational DSS
Custom made & ready made DSS
Institutional & DSS
 DSS elements
I. DSS tools
II. DSS generators
III. Specific DSS

i.DSS tools
There are the programs or codes which are foundations used to create DSS generators
and in turn specific DSS.DSS has variety of tools used for supporting data base
models, query systems.. etc the DSS tool are classified into four types. they are
a. Data base software
b. Model base software
c. Data analysis software
d. Display software

Data base software

DSS requires data base software to use the database and take decisions and these
software’s are used in mainframe and miniframe computers.the most popular data base
tool is MS-Access and SQL.
Model base software
Model base software helps a manager to design models which incorporate business
rules and assumptions made for application of rules.
Data analysis software
This is also known as statistical software it is used to analyze a variety of data and
derived meaningful information for decision making.
Display software
Display software supports DSS through graphics display. it provides easy
interpretation of the information.

Integrated DSS tool

All the DSS tools available are used to solve user’s needs. But these can solve only a
part of users needs. So, Microsoft had designed a software which would solve all the
needs of the user. The name given to the integrated DSS tool is MS-Excel. MS-Excel
is a data base which contains data model base, data analysis software which works on
statistical program and display software.

ii.DSS generators
A DSS generator is a package of software used to build a specific DSS application. it
displays the required information like a map showing the location of equipment and
inventories inside the organization.

iii.Specific DSS
A specific DSS application is constructed with DSS generators supported by special
DSS tools. this specific DSS is used for decision making.