INFORMATION CONCEPTS

•DATA
•INFORMATION
•KNOWLEDGE
 CHARACTERSTICS OF VALUABLE
INFORMATION
• ACCESSIBLE
• ACCURATE
• COMPLETE
• ECONOMICAL
• FLEXIBLE
• RELEVANT
• RELIABLE
• SECURE
• SIMPLE
• TIMELY
• VERIFIABLE
WHAT IS INFORMATION SYSTEM?
FEEDBACK

INPUT PROCESSING OUTPUT

CONTEMPORARY APPROACH TO
INFORMATION SYSTEMS
• TECHNICAL APPROACH: Theories of computation,
methods of computation, methods of data storage and
access.
• BEHAVIORAL APPROACH: Sociologists,
Psychologists and Economists.
Computer Operations
Science research
Management
Science MIS Sociology

Psychology Economics
CHALLENGES OF INFORMATION
SYSTEMS
• ACCURACY
• USABILITY: EASY TO USE.
• TIME
• INVESTMENT
• STRATEGIC BUSINESS CHALLENGE
• GLOBALIZATION CHALLENGE
• INFRASTRUCTURE CHALLENGE
• SECURITY AND ETHICS
 TYPES OF SYSTEMS

• PHYSICAL AND ABSTRACT

• DETERMINISTIC AND PROBABILISTIC
• OPEN AND CLOSED
OVERVIEW OF SYSTEMS DEVELOPMENT
IDENTIFYING PROBLEMS,
OBJECTIVES AND OPPURTUNITIES

DETERMINING INFORMATION
REQUIREMENTS

SYSTEMS ANALYSIS

SYSTEMS DESIGN

DOCUMENTING THE SYSTEM

TESTING THE SYSTEM

IMPLEMENTING AND EVALUATING THE

SYSTEM
SYSTEM DEVELOPMENT LIFE CYCLE

• IDENTIFYING PROBLEM, OPPURTUNITIES

AND OBJECTIVES.
• FEASIBILITY STUDY
• ANALYZING SYSTEM NEEDS.

A) WHAT IF WE DO NOTHING??

B) OTHER ALTERNATIVES IDENTIFIED AND

EVALUATED.
• DESIGNING THE SYSTEM:

A) USER INTERFACE: INTERACTION BETWEEN END USERS

AND COMPUTER SYSTEMS.
B) DATA DESIGN: LOGICAL STRUCTURE OF DATABASE AND
FILES.
C) PROCESS DESIGN: DESIGN OF S/W RESOURCES THAT IS
PROGRAMS AND PROCEDURES NEEDED BY PROPOSED
INFORMATION SYSTEM.

• DOCUMENTING AND DEVELOPING SOFTWARE:

PROCEDURE MANUALS, ON-LINE HELP. PROGRAMMERS

CODE AND REMOVE SYNTACTICAL ERRORS FROM
COMPUTER PROGRAMS.
• TESTING AND MANTAINING THE SYSTEM

• IMPLEMENTING AND EVALUATING THE

SYSTEM.

A) TESTING, INSTALLATION AND USER

TRAINING OF SYSTEM.
COMPONENTS OF COMPUTER
BASED INFORMATION SYSTEM
• HARDWARE
• SOFTWARE
• PEOPLE
• PROCEDURE
• DATABASE
 PARAMETERS OF SYSTEM PERFORMANCE

• EFFICIENCY: Measure of what is produced

divided by what is consumed.

• EFFECTIVENESS: Measure of extent to

which system achieve its goals.
OVERVIEW OF ENTERPRISE
APPLICATION
• An enterprise application is a business application, obviously. It
is a big business application. In today’s corporate environment,
enterprise applications are complex, scalable, distributed,
component-based, and mission-critical. They may be deployed
on a variety of platforms across corporate networks, intranets,
or the Internet. They are data-centric, user-friendly, and must
meet stringent requirements for security, administration, and
maintenance. In short, they are highly complex systems.

• Designing and developing such enterprise applications means

satisfying hundreds or thousands of separate requirements.
What’s more, every development decision you make to satisfy
each requirement affects many other requirements, often in
ways that are difficult to understand or predict — and the
failure to meet any of these requirements can mean the failure
of the entire project!
REQUIREMENTS OF ENTERPRISE
APPLICATION
• Its business goals.
• How soon it must be delivered.
• Its budget.
• How many people will develop, test, and maintain it.
• How many concurrent users it must support.
• The importance of performance and ease of use.
• The hardware it must run on.
• Where it will be deployed.
• What security is required.
• How long you expect to use it.
TYPES OF REPORTS IN MIS

• SCHEDULED REPORTS
• DEMAND REPORTS
• KEY-INDICATOR REPORTS
• DEMAND REPORTS
• EXCEPTION REPORTS
• DRILL-DOWN REPORTS
TYPES OF INFORMATION SYSTEMS

• TRANSACTION PROCESSING SYSTEMS

• MANAGEMENT INFORMATION SYSTEMS
• DECISION SUPPORT SYSTEMS
• EXPERT SYSTEMS
• OFFICE AUTOMATION
• BUSINESS INTELLIGENCE
HOURS WORKED

PAYROLL PAYROLL
TRANSACTION CHEQUES
PROCESSING

PAY RATE

PAYROLL TRANSACTION PROCESSING SYSTEM

FEATURES OF TPS (375 RALPH)
• MANTAIN HIGH DEGREE OF ACCURACY AND INTEGRITY
• TIMELY USER RESPONSES AND REPORTS
• INCREASE LABOR EFFICIENCY
• HELP IMPROVE CUSTOMER SERVICE: PLACE ORDERS
ELECTRONICALLY.
• MAINTAIN CUSTOMER LOYALTY
• ACHIEVE COMPETITIVE ADVANTAGE:

CUSTOMER SHOULD CONSIDER LONG TERM BENEFITS THE

NEW OR MODIFIED SYSTEM SHOULD PROVIDE.
 COMPONENTS OF TPS
• INPUT-DATA CAPTURE, DATA ENTRY,

DATA VALIDATION
A) MISSING DATA
B) VALID SIZE FOR ITEM
C) COMPOSITION ERROR: DATA MISMATCH
D) REASONABLENESS TEST
• STORAGE
A) MASTER DATA
B) TRANSACTION DATA
• PROCESSING-BATCH AND REAL TIME.
• OUTPUTS-ACTION REPORTS (PO AUTHORISES PURCHASE FROM
SUPPLIER),INFO REPORTS(PROOF TRANSACTION OCCURRED),EDIT
REPORTS (ERROR DETECTION),ACCOUNT STATEMENTS
• BACK-UP AND RECOVERY PROCEDURES
 MIS

MANAGEMENT INFORMATION SYSTEM

ACTIVITIES INVOLVED IN MANAGERIAL
PROCESS

A) PLANNING:
WHAT IS TO BE DONE??
WHEN IT IS TO BE DONE??
STEPS:
• LONG TERM GOALS OF ORGANIZATION ON BASIS OF
EXISTING OPPURTUNITIES.
• SETTING TIME PERIOD FOR THE PLAN.
• IDENTIFICATION OF ALTERNATIVE COURSES OF ACTION ON
THE BASIS OF THEIR IMPACT ON ACHEIVEMENT OF
OBJECTIVES.
• SELECTING THE BEST COURSE OF ACTION
• FORMULATING THE DERIVATIVE PLANS TO SUPPORT THE
PLAN.
PERCEPTS TO BE KEPT IN MIND
WHILE PLANNING
• Planning is a verb, not a noun: Not once a year function.
Throughout the year. Updated continuously.
• IS plan must be consistent with the corporate business plan.
Future business direction must be known before IS plan.
• Management involvement and commitment are essential.
Commitment without involvement is lip service. Meetings should
be on broad strategic issues rather than short-term tactical
ones.
• Planning is everybody’s job. But Only key managers and IS
personnel are responsible for planning. Grass root planning is
more workable than ivory-tower planning.
• It takes several cycles to institutionalize a planning process.
Assessment should be made at the completion of the first
planning cycle in order to improve the process in the next cycle.
CORPORATE PLANNING:
Classes of CAPACITY PLANNING:
1. Lead Strategy (adding capacity in
presumption of an increase in demand.
Disadvantage is it results in excess inventory
which is wasteful and costly.) , 2. Lag Strategy
(adding capacity only after the organization is
running at full capacity or beyond due to
increase in demand )and 3. Match Strategy (is
adding capacity in small amounts in response to
changing demand in the market ).

BUDGETARY PLANNING:
RICHARD NOLAN IS STAGES
ANALYSIS
•INITIATION
•CONTAGION
•CONTROL: Management’s awareness that
computer systems are out of control, computer
budgets growing at rate of 30 to 40 percent a
year and returns are NIL. Applications aimed at
operational level and not managerial levels.
•INTEGRATION:
•ARCHITECTURE: IS blueprint is prepared in this
stage.
•DEMASSING: Placing control for IS into hands of
line management.
B) ORGANIZING:
• ANALYSIS OF ACTIVITIES TO BE PERFORMED FOR
MEETING THE REQUIREMENTS OF PLAN.

• DIVIDING THE ACTIVITIES INTO CONVENIENT TASKS.

• ALLOCATION OF SUB-TASKS TO PEOPLE OR GROUPS OF

PEOPLE IN THE ORGANIZATION.
 C) STAFFING

• SELECTING SUITABLE PERSONS FOR THE

JOB POSITIONS.
• TRAINING AND DEVELOPING THE
SELECTED STAFF TO ENABLE THEM
ACCOMPLISH THEIR TASKS EFFECTIVELY
AND EFFICIENTLY.
D) DIRECTING

• COMMUNICATION
• MOTIVATION
• LEADERSHIP
E) CONTROLLING

• FIXING STANDARDS FOR PERFORMANCE

• MEASURING THE ACTUAL PERFORMANCE
• OBSERVING DEVIATIONS BETWEEN
ACTUAL AND STANDARD PERFORMANCE.
• TAKING CORRECTIVE ACTIONS.
INFORMATION
SYSTEM
 FEATURES OF MIS
• SUMMARY INFORMATION
• OPERATIONAL CONTROL AND EFFICIENCY
A) BUDGETED FIGURES
B) PREVIOUS YEARS FIGURES
C) YEAR TO DATE FIGURES
D) VARIANCES
• USEFUL FOR STRUCTURED DECISIONS
• PROVIDE REPORTS WITH FIXED AND STANDARD FORMATS:
DIFFERENT MANAGERS USE SAME INFORMATION FOR DIFFERENT
REPORTS
• USE INTERNAL AND EXTERNAL DATA STORED IN COMPUTER
SYSTEM
• REQUIRE USER REQUESTS FOR REPORTS DEVELOPED BY SYSTEMS
PERSONNEL: SUBMIT FORMAL REQUEST TO IS PERSONNEL.
THREE VIEWS OF
MANAGEMENT
• Top level / Administrative level
• Middle level / Executory
• Low level / Supervisory / Operative /
First-line managers
MANAGEMENT HIERARCHY TREE
TOP LEVEL MANAGEMENT
– Top management lays down the objectives and broad policies
of the enterprise.
– It issues necessary instructions for preparation of department
budgets, procedures, schedules etc.
– It prepares strategic plans & policies for the enterprise.
– It appoints the executive for middle level i.e. departmental
managers.
– It controls & coordinates the activities of all the departments.
– It is also responsible for maintaining a contact with the
outside world.
– It provides guidance and direction.
– The top management is also responsible towards the
shareholders for the performance of the enterprise.
MIDDLE LEVEL MANAGEMENT
– They execute the plans of the organization in accordance with
the policies and directives of the top management.
– They make plans for the sub-units of the organization.
– They participate in employment & training of lower level
management.
– They interpret and explain policies from top level management
to lower level.
– They are responsible for coordinating the activities within the
division or department.
– It also sends important reports and other important data to
top level management.
– They evaluate performance of junior managers.
– They are also responsible for inspiring lower level managers
towards better performance.
LOWER LEVEL MANAGEMENT
– Assigning of jobs and tasks to various workers.
– They guide and instruct workers for day to day activities.
– They are responsible for the quality as well as quantity of production.
– They are also entrusted with the responsibility of maintaining good
relation in the organization.
– They communicate workers problems, suggestions, and
recommendatory appeals etc to the higher level and higher level goals
and objectives to the workers.
– They help to solve the grievances of the workers.
– They supervise & guide the sub-ordinates.
– They are responsible for providing training to the workers.
– They arrange necessary materials, machines, tools etc for getting the
things done.
– They prepare periodical reports about the performance of the workers.
– They ensure discipline in the enterprise.
– They motivate workers.
– They are the image builders of the enterprise because they are in
direct contact with the workers.
APPLICATIONS OF MIS
• MARKETING
• FINANCE
• PRODUCTION
• HUMAN RESOURCE
SUBSYSTEMS OF HRMIS
• HUMAN RESOURCE PLANNING: PUTTING THE RIGHT
NUMBER AND KIND OF EMPLOYEES IN RIGHT JOBS
WHEN THEY ARE [Link] AND SAS SOFTWARES
• PERSONNEL SELECTION AND RECRUITING: PUTTING
TEMPLATES ON NET.
• TRAINING AND SKILLS INVENTORY
• WAGES AND SALARY ADMINISTRATION: DETERMINING
WAGES, SALARIES AND BENEFITS INCLUDING MEDICAL
PAYMENTS, SAVINGS PLANS AND RETIREMENT
ACCOUNTS.
• OUTPLACEMENT
SUBSYSTEMS OF MARKETING
MIS
• MARKETING RESEARCH: QUESTIONARES AND SURVEYS
• PRODUCT DEVELOPMENT: PLANT CAPACITY, LABOR
SKILLS, MATERIALS. COMPUTER PROGRAM ANALYZES
THESE VARIOUS FACTORS.
• PROMOTION AND ADVERTISING: USING INTERNET TO
PROMOTE PRODUCTS.
• PRODUCT PRICING: INFORMATION SYSTEMS DEVELOP
PRICING POLICIES THAT WILL MAXIMISE SALES
REVENUE.
• SALES ANALYSIS: COMPARISION OF SALES.
SUBSYSTEMS OF MANUFACTURING
MIS
• DESIGN AND ENGINEERING

• MASTER PRODUCTION SCHEDULING AND INVENTORY

CONTROL: ECONOMIC ORDER QUANTITY TO
DETERMINE HOW MUCH INVENTORY TO ORDER.
REORDER POINT. MATERIAL REQUIREMENT PLANNING
TO DETERMINE WHEN FINISHED PRODUCTS ARE
NEEDED AND DETERMINE DEADLINES AND RESOURCES
NEEDED FOR COMPLETION OF PROJECT WITHIN
DEADLINES.

• QUALITY CONTROL AND TESTING

FEATURES OF FINANCIAL MIS
• INTEGRATE FINANCIAL INFORMATION FROM MULTIPLE
SOURCES LIKE INTERNET, INTRANET ETC. INTO
SINGLE SYSTEM.
• EASY ACCESS TO DATA FOR BOTH FINANCIAL AND
NON-FINANCIAL USERS.
• MAKE FINANCIAL DATA TO SHORTEN TURNAROUND
TIME.
• ENABLE ANALYSIS OF FINANCIAL DATA ALONG
MULTIPLE DIMENSIONS-TIME, GEOGRAPHY, PRODUCT,
PLANT, CUSTOMER.
• MONITOR USE OF FUNDS OVER TIME.
 STRUCTURE OF ORGANIZATION’S
MIS
INTRANET FINANCIA
L MIS

SUPPLY CHAIN ERP DATABASE OF

AND BUSINESS SYSTEMS VALID MANUFACTU
TRANSACTIONS AND TPS’s TRANSACTIONS RING MIS

MARKETIN
EXTRANET
G MIS

HUMAN
SCHEDULED REPORTS, KEY INDICATOR REPORTS< RESOURCE MIS
DEMAND REPORTS< EXCEPTION REPORTS AND
DRILL_DOWN REPORTS
INPUTS TO MANAGEMENT
INFORMATION SYSTEMS
• COMPANY’S SUPPLY CHAIN
• INTERNET
• INTRANET
• EXTRANET
OUTPUTS OF MANAGEMENT
INFORMATION SYSTEMS
• SCHEDULED REPORTS:SCHEDULE LIKE
DAILY, WEEKLY ETC.
• DEMAND REPORTS: PRODUCTION
STATUS OF AN ITEM.
• EXCEPTION REPORTS
• DRILL-DOWN REPORTS
DECISION SUPPORT SYSTEMS
STEPS INVOLVED IN PROBLEM SOLVING WITH USE OF DSS

DEFINING AND
FORMULATING THE
PROBLEM

FRAMING THE PROBLEM

INTO DSS MODEL

OBTAINING RESULTS
WITH USE OF MODEL

PROBLEM
REFORMULATION
FEATURES OF DECISION SUPPORT
SYSTEMS
• RAPID ACCESS TO INFORMATION: DASHBOARD OF CARS.
• HANDLE VOLUMINIOUS DATA FROM SOURCES
• PROVIDE REPORT AND PRESENTATION FLEXIBILITY: HARD
COPY OR SOFT COPY.
• OFFER TEXTUAL AND GRAPHICAL ORIENTATION: PRODUCE
TEXT, TABLES, PIE CHARTS ETC. MANAGERS GET BETTER
UNDERSTANDING AND CONVEY INFO TO OTHERS.
• SUPPORT DRILL-DOWN ANALYSIS (VIEWING OVERALL PROJ.
COST OR DRILLING DOWN AND SEEING COST FOR EACH PHASE)
• DSS SUPPORT UNSTRUCTURED AND SEMI-STRUCTURED
DECISIONS.
• DSS MAKES IT POSSIBLE TO EXPLAIN TO OTHERS THE BASIS
FOR ARRIVING AT PARTICULAR CONCLUSION, INTRA AND
INTER GROUP BACKING OF OTHERS IN ENTERPRISE CAN BE
OBTAINED.
• EASY TO USE SOFTWARE.
 ADVANTAGES OF DSS
• REDUCES TIME AND EFFORT IN COLLECTING ANALYSIS OF DATA
FROM DIFFERENT SOURCES SO LARGE NUMBER OF ALTERNATIVES
CAN BE EVALUATED.
• MODELLING AND FORECASTING IS MADE EASY BY DSS,
MANAGERS GET MORE INSIGHT INTO BUSINESS PROCESSES.
ANALYSIS DONE IN VERY SHORT TIME.
• DSS FACILITATES ANALYSIS OF DATA FOR UNSTRUCTURED
DECISION-MAKING, WHICH IMPROVES SPEED OF RESPONSE IN
UNEXPECTED DECISION-MAKING SITUATION.
• COST SAVINGS
• IMPROVES MANAGERIAL EFFECTIVENESS
• EASY TO USE SOFTWARE THAT CAN BE USED BY END USERS TOO.
 LIMITATIONS OF DSS
• DSS’S CANNOT REPLACE HUMAN DECISION-MAKING
TALENTS SUCH AS CREATIVITY, IMAGINATION OR
INTUTION.
• POWER OF DSS IS LIMITED BY THE COMPUTER
SYSTEM UPON WHICH IT IS RUNNING, ITS DESIGN
AND THE KNOWLEDGE POSSESSED BY IT AT TIME OF
USE.
• CANNOT OVERCOME ACTIONS OF POOR DECISION
MAKER. (WHEN TO USE, WHAT TO USE, DEGREE OF
RELIABILITY OF OUTPUT)
DSS SHOULD BE USED AS A VALUABLE TOOL IN
THE PROCESS OF DECION-MAKING RATHER THAN
AS MECHANISM THAT MAKES THE DECISION.
CHARACTERSTICS OF
STRUCTURED DECISION MAKING

• Goals are defined

• Information is obtainable and
manageable
• Appear in a well defined context and
procedures are known
CHARACTERSTICS OF UNSTRUCTURED
DECISION MAKING

• The outcomes are uncertain

• Appear in unique context
• The required information and resources
are hard to assess
DATABASE MODEL
BASE

DSS
SOFTWARE

USER
 CONCEPTUAL MODEL OF DSS
MODEL BASE
DATABASE

DBMS MMS

ACCESS TO THE
INTERNET, EXTERNAL
INTRANET AND EXTERNAL
DATABASE
OTHER COMPUTER DB
ACCESS
SYSTEMS

USER INTERFACE
OR DIALOGUE
MANAGER
COMPONENTS OF DSS

• USER INTERFACE: IT ALLOWS USER TO INTERACT WITH DSS TO OBTAIN

INFORMATION. IT ASSISTS WITH ALL ASPECTS OF COMMUNICATIONS
BETWEEN USER AND HARDWARE AND SOFTWARE THAT CONSTITUTE
THE DSS.

• DATABASES: DATABASE IS COLLECTION OF DATA THAT IS ORGANIZED

IN SUCH A WAY THAT IT CORRESPONDS TO NEEDS AND STRUCTURE OF
[Link] USES INFO FROM MULTIPLE SOURCES WHICH IS
PRESENTED IN SUMMARIZED FORMS (GRAPHS AND CHARTS) TO ASSIST
TOP LEVEL [Link] DECISION MAKER TO RETREIVE
DATA AND TEST ALTERNATIVE SOLUTIONS. MANAGER HAVING ACCESS
TO DATABASE IN DSS CAN ACCORDINGLY MANIPULATE DATA AND
EXPLORE EFFECTIVENESS OF ALTERNATIVE COURSES OF ACTION. DSS
NEEDS DATABSE FROM WHICH INFO. CAN BE OBTAINED FOR DECION
MAKING. DATABASE IS PRE-REQUISITE FEOR DEVELOPING DSS.
AIRLINE COMPANIES USE DATA DRIVEN APPROACH TO SEARCH DATA
WAREHOUSE TO CONTACT THOUSANDS OF CUSTOMERS WHO MIGHT BE
INTERESTED IN INEXPENSIVE FLIGHTS. SIMILARLY CASINOS.
• MODEL BASE: COLLECTION OF MATHEMATICAL AND ANALYTICAL
MODELS WHICH CAN BE ACCESSED BY DSS USER. STATISTICAL
MODELS LIKE MEAN, MODE, DEVIATION ETC. DSS MODEL CAN BE
PHYSICAL MODELS, MATHEMATICAL MODELS OR VERBAL
MODELS. LOANPERFORMANCE, USES MODELS TO FORECAST
WHICH CUSTOMERS WILL BE LATE WITH PAYMENTS.

A) OPTIMIZATION MODELS: OPTIMAL RESOURCE ALLOCATION TO

MAXIMISE REVENUE AND MINIMISE TIME AND COST.
B) FORECASTING MODELS: FORECAST PROSPECTS OF BUSINESS
ORGANISATION BASED ON PAST [Link] LIKELY
ACTIONS OF COMPETITORS.
C) SENSTIVITY ANALYSIS MODELS: OCCURS ON IRREGULAR
BASIS. EG. CHANGE IN EXCISE DUTY BY GOVT.,BAN ON
IMPORT/EXPORT OF PRODUCT, ENTRY OF A COMPETITOR. USED
FOR ANALYZING CHANGES TO TEST RESULTS
GROUP SUPPORT SYSTEMS AND CHARACTERSTICS
• SPECIAL DESIGN: IT ACKNOWLEDGES THAT SPECIAL PROCEDURES, DEVICES AND APPROACHES ARE
NEEDED IN GROUP DECISION-MAKING SETTINGS.
• EASE OF USE
• FLEXIBILITY: AN EFFECTIVE GSS NOT ONLY HAS TO SUPPORT DIFFERENT APPROACHES THAT
MANAGERS USE TO MAKE DECISIONS, BUT ALSO MUST FIND A MEANS TO INTEGRATE THEIR
DIFFERENT PERSPECTIVES INTO A COMMON VIEW OF TASK AT HAND.
• ANONYMOUS INPUT: GSS ALLOWS ANONYMOUS INPUT WHERE PERSON GIVING INPUT IS NOT
KNOWN TO OTHER GROUP MEMBERS. ORGANISATIONS USE GSS TO RANK PERFORMANCE OF
MANAGERS. IT RESULTS IN FLAMING.
• REDUCTION OF NEGATIVE GROUP BEHAVIOUR : IT SUPPRESSES DOMINANT INDIVIDUALS TO TAKE
OVER THE DISCUSSIONS, WHICH PREVENTS OTHER MEMBERS OF GROUP FROM PRESENTING
CREATIVE ALTERNATIVES. IN SOME CASES, ONE OR TWO MEMBERS CAN SUBVERT THE GROUP INTO
DIFFERENT AREAS OR THINK THEY MADE THE RIGHT DECISION WITHOUT EXAMINING
ALTERNATIVES. IT ELIMINATES SUCH THINGS.
• PARALLEL COMMUNICATION: EVERY GROUP MEMBER ADDRESSES ISSUES OR MAKE COMMENTS AT
SAME TIME BY ENTERING THEM INTO PC.
• AUTOMATED RECORDKEEPING: RECORDING OF COMMENTS.
• DECISION MAKING SUPPORT:
A) DELPHI APPROACH
B) BRAINSTORMING
C) GROUP CONSENSUS APPROACH
D) NOMINAL GROUP TECHNIQUE
 ESS

BOARD OF DIRECTORS

PRESIDENT

FUNCTIONAL
AREA VICE
PRESIDENTS
LAYERS OF EXECUTIVE
FUNCTIONAL
DECISION MAKING
AREA
MANAGERS
 CHARACTERSTICS OF ESS

[Link] tailored to individual executives

[Link] easy to use.
[Link] drill-down abilities
[Link] need for external data
[Link] help in situations that have high degree
of uncertainty
[Link] a broad and strategic orientation
EXPERT SYSTEMS
ADVANTAGES OF EXPERT SYSTEMS

• PLANNING: CAN USE INFO. FROM EARLIER PROJECTS. INFO CAN BE USED TO
IMPROVE SUBSEQUENT PLANS.
• DECISION MAKING: SUPPORT DECISION MAKING BY STORING INFO. IN
KNOWLEDGE BASE FROM SEVERAL EXPERTS RATHER THAN SINGLE EXPERT.
• DIAGNOSIS:DIAGNOSIS FOR MALFUNCTIONING OF EQUIPMENTS, HUMAN
DISEASES IN MEDICINE ETC. PROVIDE SOLUTIONS.
• TRAINING: TEACH DECISION RULES TO [Link] LEARN THE WAY THE SYSTEM
REACHES DECISIONS.
• EXTENSIVE USE OF EXPERTISE: EXPERTISE KNOWLEDGE CAN BE USED BY MANY
EMPLOYEES WORKING IN VARIOUS DEPARTMENTS, DIVISIONS ETC.
• TIMELY RESPONSE: IMMEDIATE SUPPORT AND PERFORM TASKS
INSTANTANEOUSLY.
• RELIABILITY: DO NOT BECOME TIRED OR BORED. AVAILABLE ON CALL AT ALL
TIMES.
• ABILITY TO WORK WITH INCOMPLETE OR VAGUE INFORMATION: CAN WORK WITH
VAGUE INFO LIKE HUMAN EXPERTS. HUMANS MIGHT GIVE ANS LIKE”DO NOT
KNOW” BUT EXPERT GIVES SUITABLE SOLUTIONS TO USER PROBLEMS.
DISADVANTAGES OF EXPERT
SYSTEMS
• NO PROBLEM SOLVERS.
• TAKE LONGER TIME IN SOLVING PROBLEMS.
• SOME PROBLEMS TOO TOUGH TO BE SOLVED.
• NOT ALWAYS POSSIBLE TO EXTRACT
KNOWLEDGE FROM EXPERT.
• MEANS NOT AVAILABLE TO CHECK WHETHER
CONCLUSIONS OF EXPERT SYSTEMS ARE
REASONABLE
• KNOWLEDGE NOT ALWAYS READILY AVAILABLE.
• EXPERTS MAY HAVE DIFFERENT APPROACHES TO
A GIVEN SITUATION.
ARCHITECTURE OF EXPERT
SYSTEMS

PROCESSING:
INPUT: OUTPUT:
•MATCHING OF USER
QUESTIONS
QUESTIONS AND ANSWERS RECOMMEN
OF USERS TO INFORMATION IN DATIONS
KNOWLEDGE BASE
•DETERMINING SEQUENCE
OF QUESTIONS PRESENTED
TO USER

STORAGE
KNOWLEDGE BASE
FUNCTIONS OF EXPERT SYSTEM

• INPUT
• PROCESSING
• OUTPUT: SEVERAL OPTIONS. BEST ONE TO BE
CHOSEN. INVESTMENT SCHEME 80% CHANCES
OF PROFIT.
• STORAGE: INVOLVES MANAGING THE
KNOWLEDGE BASE. STORAGE, UPDATION AND
ACCESS OF RULES IN KNOWLEDGE BASE.
EXPLANATION INFERENCE
FACILITY ENGINE

KNOWLEDGE
BASE KNOWLEDGE USER
BASE INTERFACE
ACQUISITION
FACILITY

EXPERTS USER
 COMPONENTS OF EXPERT SYSTEMS
• USER INTERFACE:
EXAMPLE:

EXPERT SYSTEM: ARE THERE PREVIOUS CREDIT PROBLEMS?

USER : NO
EXPERT SYSTEM: IS THE APPLICANT’S NET INCOME GREATER THAN FOUR TIMES MONTHLY
LOAN PAYMENT?
USER: YES
EXPERT SYSTEM: ARE THE NET ASSETS OF BORROWER GREATER THAN $25,000?
USER: YES
EXPERT SYSTEM: ACCEPT THE LOAN APPLICATION.

• KNOWLEDGE BASE:

• INFERENCE ENGINE:DELIVERS THE EXPERT ADVICE. ALSO TO SEEK INFO. AND

RELATIONSHIPS FROM KNOWLEDGE BASE AND PROVIDE ANSWERS, PREDICTIONS,
SUGGESTIONS LIKE HUMAN EXPERT. BACKWARD AND FORWARD CHAINING.

• EXPLANATION FACILITY: ALLOWS USER OR DECISION MAKER TO UNDERSTAND HOW THE

EXPERT SYSTEM ARRIVED AT CERTAIN CONDITIONS OR RESULTS. FINDING LOGICS MADE
BY EXPERT [Link] SYSTEM CORRECT OR NOT.
APPLICATIONS OF EXPERT
SYSTEMS
• BUDGETING
• GAMES: PROVERB TO SOLVE PUZZLES.
• INFORMATION MANAGEMENT AND RETRIEVAL
• HOSPITALS AND MEDICAL FACILITIES
• HELP DESKS AND ASSISTANCE
• EMPLOYEE PERFORMANCE EVALUATION
• MARKETING: COVERSTORY IS EXPERT SYSTEM THAT EXTRACTS
MARKETING INFORMATION FROM DATABASE AND
AUTOMATICALLY WRITES MARKETING REPORTS.
EIS
 FEATURES OF EIS
•EIS IS USER FRIENDLY AND REQUIRES MINIMAL OR NO
TRAINING TO USE.
•EIS PRESENTS GRAPHICAL, TABULAR AND/OR TEXTUAL
INFORMATION.
•EIS CONTAINS STATISTICAL ANALYSIS TOOLS.
•IT PROVIDES ON-LINE STATUS ACCESS, TREND ANALYSIS,
EXCEPTION REPORTING AND ‘DRILL-DOWN’ CAPABILITIES.
THIS ALLOWS EXECUTIVES TO REACH INFORMATION IN
FURTHER DETAIL.
 BENEFITS OF EIS
• EIS HELP EXECUTIVES IN IDENTIFYING OPTIONS,
EVALUATION OF ALTERNATIVE COURSE OF ACTION
AND MAKING DECISIONS.
• EIS PROVIDES DATA IN AGGREGATED FORM AND
DRILL-DOWN FORM.
• IT PROVIDES FAST ACCESS TO UP-TO-DATE
INFORMATION WHICH IS CONCISE.
• IT ENABLES PRESENTATION OF INFORMATION IN
STANDARD FORMATS.
• IT IS FLEXIBLE IN USE.
• IT PROVIDES TIMELY AND CONCISE INFORMATION
ABOUT THE PERFORMANCE OF THE ORGANISATION.
 LIMITATIONS OF EIS

• IT IS NOT ECONOMICALLY FEASIBLE TO

COLLECT INFORMATION REQUIRED BY
EXECUTIVES.
• IT IS DIFFICULT AND ALMOST IMPOSSIBLE TO
MAKE THE COST BENEFIT ANALYSIS IN EIS.
THUS IT IS DIFFICULT TO MEASURE THE
PERFORMANCE OF THE SYSTEM.
• EIS USES MUCH OF DATA GENERATED FROM
EXTERNAL SOURCES WHICH IS EXPENSIVE.
 COMPONENTS OF EIS
• DBMS:
IT MUST PROVIDE READY ACCESS TO USER
AND ALSO CAPABLE OF COLLECTING AND
STORING DATA FROM SEVERAL SOURCES LIKE
TPS, OPERATIONAL DATABASES, EXTERNAL
VENDORS. IT SHOULD BE SIMPLE TO ENTER
NEW DATA. DATA STRUCTURE SHOULD BE
ADAPTABLE TO CHANGES IN ORGANISATIONAL
STRUCTURE.
• GRAPHICAL AND REPORT WRITING
OFFICE AUTOMATION SYSTEMS
ACTIVITIES OF OFFICE AUTOMATION
SYSTEMS

1. CLERICAL STAFF
2. MANAGERIAL STAFF
APPLICATIONS OF OFFICE
AUTOMATION SYSTEMS

• WORD PROCESSING
• ELECTRONIC MAIL
• AUTOMATING DAILY CALENDARS
• IMAGE PROCESSING
• DESKTOP PUBLISHING
• FACSMILE
• TELECONFERENCING
• VOICE PROCESSING
 DATA HIERARCHY

DATA ITEM

RECORD

FILE

DATABASE
 Database

• Shared collection of logically related

data (and a description of this data),
designed to meet the information needs
of an organization. A Database is a
collection of records or data in
structured format so that data can be
easily retrieved for analysis and
calculations.
DRAWBACKS OF FILE PROCESSING
SYSTEM

• DATA DUPLICATION
• DATA INCONSISTENCY
• LACK OF DATA INTEGRATION
• PROGRAM DEPENDENCE
 FEATURES OF DBMS
• CONTROLLED DATA REDUNDANCY
• ENHANCED DATA CONSISTENCY
• DATA SHARING:
SHARING OF DATA MEANS THAT INDIVIDUAL PIECES OF DATA IN
DATABASE MAY BE SHARED AMONG DIFFERENT USERS IN SENSE
THAT EACH OF THE USERS MAY HAVE TO ACCESS TO SAME PIECE
OF DATA AND EACH OF THEM USES IT FOR DIFFERENT PURPOSES.

• DATABASES ENFORCE STANDARDS

DATABASE SYSTEMS CAN ENSURE THAT ALL DATA FOLLOW
APPLICABLE STANDARDS. THERE ARE CERTAIN STANDARDS LAID
BY COMPANY USING DATABASE.
• DATA SECURITY AND PRIVACY
 DISADVANTAGES OF DBMS
• CENTRALISED DATABASE: DATA STRUCTUIRE
BECOMES COMPLEX BECAUSE OF CENTRALISED
DATABASE SUPPORTING MANY APPLICATIONS.
LEADS TO DIFFICULTIES IN MANAGEMENT AND
REQUIRE PROFESSIONAL DATABASE DESIGNER
AND TRAINING FOR USERS.
• MORE DISK SPACE
• OPERATIONALITY OF SYSTEM: NOT ROBUST.
• SECURITY RISK
• EXTRA HARDWARE REQUIRED
THREE VIEWS OF DATA

• LOGICAL OR EXTERNAL VIEW:

CUSTOMER_NAME, CUST_ADD
• CONCEPTUAL OR GLOBAL VIEW: DATA
FIELDS WITH DATATYPES
• INTERNAL VIEW: DATA FIELDS WITH
DATATYPES AND WIDTH.
 DATABASE CLASSES

• RELATIONAL MODEL

a) Represented with help of tables

b) Each table has its own name
c) Each relation is assigned a unique name.
DIAGRAMETICAL REPRESENTATION OF
RELATIONAL MODEL

SUPP# SUPP_NAME STATUS CITY

S1 BRITANNIA 10 DELHI
S2 NEW 30 MUMBAI
BAKERS
S3 MOTHER 10 DELHI
DIARY
S4 HALDIRAM 40 JAIPUR
ITEMS TABLE
ITEM# ITEM_NAME PRICE

I1 MILK 15.00
I2 CAKE 5.00
I3 BREAD 9.00
I4 MILK BREAD 14.00
SHIPMENTS TABLE
SUPP# ITEM# QTY_SUPPLIED

S1 I2 10
S2 I4 20
S2 I5 10
S3 I3 10
HIERARCHICAL MODEL

• USES TREE STRUCTURE. TREE

STRUCTURE WITH HIERARCHY OF
NODES, WITH SINGLE NODE CALLED
ROOT.
• RELATIONSHIP OF ROOT TO BRANCHES
IS 1 TO N RELATIONSHIP.
• IT IS 1 TO N RELATIONSHIP.
S1 BRITANIA 10 DELHI

I2 CAKE 15.00 10

S2 NEW BAKERS 30 MUMBAI

I4 MILK BREAD 14.00 20

I5 PLAIN BUISCUIT 6.00 10

 KNOWLEDGE MANAGEMENT
SYSTEMS
A KNOWLEDGE MANAGEMENT SYSTEM
IS AN ORGANISED COLLECTION OF
PEOPLE, PROCEDURES, SOFTWARE,
DATABASES AND DEVICES TO
CREATE, STORE, SHARE AND USE THE
ORGANISATION’S KNOWLEDGE AND
EXPERIENCE.
TYPES OF KNOWLEDGE

• EXPLICIT KNOWLEDGE: IT CAN BE

MEASURED AND DOCUMENTED IN
REPORTS, PAPERS AND RULES.
• TACIT KNOWLEDGE: HARD TO MEASURE
AND DOCUMENT AND IS NOT
FORMALIZED. EG. HOSTILE SITUATION
TECHNOLOGY TO SUPPORT
KNOWLEDGE MANAGEMENT
• MANUFACTURING COMPANY LEARNS
NEW WAYS TO PROGRAM ROBOTS TO
IMPROVE ACCURACY AND REDUCE
DEFECTIVE PARTS.

• SAP INCLUDES KPM FEATURES. IBM USES

KPM TOOLS LIKE LOTUS NOTES.
ARTIFICIAL INTELLIGENCE

ARTIFICIAL INTELLIGENCE INCLUDES

THE PEOPLE, PROCEDURES, HARDWARE,
SOFTWARE, DATA AND KNOWLEDGE
NEEDED TO DEVELOP COMPUTER
SYSTEMS AND MACHINES THAT
DEMONSTRATE INTELLIGENCE
CHARACTERSTICS.
CHARACTERSTICS OF AI
• LEARN FROM EXPERIENCE AND APPLY KNOWLEDGE
• HANDLE COMPLEX SITUATIONS
• SOLVE PROBLEMS WHEN IMPORTANT INFORMATION IS
MISSING
• DETERMINE WHAT IS IMPORTANT
• REACT QUICKLY AND CORRECTLY TO A NEW
SITUATION
• UNDERSTAND VISUAL IMAGES
• PROCESS AND MANIPULATE SYMBOLS
• BE CREATIVE AND IMAGINATIVE
CLIENT SERVER ARCHITECTURE
• Under the structure of the client-server architecture, a business's
computer network will have a server computer, which functions as the
"brains" of the organization, and a group of client computers, which are
commonly called workstations. The server part of the client-server
architecture will be a large-capacity computer, perhaps even a
mainframe, with a large amount of data and functionality stored on it.
The client portions of the client-server architecture are smaller computers
that employees use to perform their computer-based responsibilities.
• Servers commonly contain data files and applications that can be
accessed across the network, by workstations or employee computers
• This type of server is called an application server. It takes full advantage
of the client-server architecture by using the server as a storage device
for applications and requiring the clients to log in to the server in order to
use those applications. Examples of this kind of application are numerous;
among the most popular are word processors, spreadsheets, and graphic
design programs. In each case, the use of the applications illustrates the
client-server architecture
ADVANTAGES OF CLIENT SERVER ARCHITECTURE
• In most cases, a client-server architecture enables the roles and responsibilities of a
computing system to be distributed among several independent computers that are
known to each other only through a network. This creates an additional advantage
to this architecture: greater ease of maintenance. For example, it is possible to
replace, repair, upgrade, or even relocate a server while its clients remain both
unaware and unaffected by that change.
• All data is stored on the servers, which generally have far greater security controls
than most clients.[citation needed] Servers can better control access and resources,
to guarantee that only those clients with the appropriate permissions may access
and change data.
• Since data storage is centralized, updates to that data are far easier to administer
than what would be possible under a P2P paradigm. Under a P2P architecture, data
updates may need to be distributed and applied to each peer in the network, which
is both time-consuming and error-prone,[citation needed] as there can be
thousands or even millions of peers.
• Many mature client-server technologies are already available which were designed
to ensure security, friendliness of the user interface, and ease of use.[citation
needed]
• It functions with multiple different clients of different capabilities.
DISADVANTAGES OF CLIENT SERVER
ARCHITECTURE

• Traffic congestion on the network has been an issue

since the inception of the client-server paradigm.
[citation needed] As the number of simultaneous client
requests to a given server increases, the server can
become overloaded. Contrast that to a P2P network,
where its aggregated bandwidth actually increases as
nodes are added, since the P2P network's overall
bandwidth can be roughly computed as the sum of the
bandwidths of every node in that network.
• The client-server paradigm lacks the robustness of a
good P2P network.[citation needed] Under client-server,
should a critical server fail, clients’ requests cannot be
fulfilled.
CLIENT SERVER ARCHITECTURE
Figure 1-1 SGM Client/Server Architecture

                                                                                                                              
 DATA WAREHOUSE
• Data warehouse is a repository of an organization's electronically
stored data. Data warehouses are designed to facilitate reporting
and analysis[1].
• A data warehouse houses a standardized, consistent, clean and
integrated form of data sourced from various operational systems in
use in the organization, structured in a way to specifically address
the reporting and analytic requirements.
• This definition of the data warehouse focuses on data storage.
However, the means to retrieve and analyze data, to extract,
transform and load data, and to manage the data dictionary are also
considered essential components of a data warehousing system.
Many references to data warehousing use this broader context.
Thus, an expanded definition for data warehousing includes business
intelligence tools, tools to extract, transform, and load data into the
repository, and tools to manage and retrieve metadata.
ARCHITECTURE OF DATA WAREHOUSE

• Operational database layer

– The source data for the data warehouse - An organization's Enterprise
Resource Planning systems fall into this layer.
• Data access layer
– The interface between the operational and informational access layer -
Tools to extract, transform, load data into the warehouse fall into this
layer.
• Metadata layer
– The data directory - This is usually more detailed than an operational
system data directory. There are dictionaries for the entire warehouse
and sometimes dictionaries for the data that can be accessed by a
particular reporting and analysis tool.
• Informational access layer
– The data accessed for reporting and analyzing and the tools for
reporting and analyzing data - Business intelligence tools fall into this
layer.
BENEFITS OF DATA WAREHOUSING
• A data warehouse provides a common data model for all data of interest
regardless of the data's source. This makes it easier to report and analyze
information than it would be if multiple data models were used to retrieve
information such as sales invoices, order receipts, general ledger charges, etc.
• Prior to loading data into the data warehouse, inconsistencies are identified and
resolved. This greatly simplifies reporting and analysis.
• Information in the data warehouse is under the control of data warehouse users
so that, even if the source system data is purged over time, the information in the
warehouse can be stored safely for extended periods of time.
• Because they are separate from operational systems, data warehouses provide
retrieval of data without slowing down operational systems.
• Data warehouses can work in conjunction with and, hence, enhance the value of
operational business applications, notably customer relationship management
(CRM) systems.
• Data warehouses facilitate decision support system applications such as trend
reports (e.g., the items with the most sales in a particular area within the last two
years), exception reports, and reports that show actual performance versus goals.
LIMITATIONS OF DATA WAREHOUSING

• Data warehouses are not the optimal

environment for unstructured data.
• Because data must be extracted, transformed
and loaded into the warehouse, there is an
element of latency in data warehouse data.
• Over their life, data warehouses can have high
costs. Maintenance costs are high.
• Data warehouses can get outdated relatively
quickly.