GKM College Management Information System

G.K.
M College of Engineering & Technology

Department of Management Studies
SubjectName: Management Information System
R/TP/01
Subject Code: BA9225
Issue C: Rev 01
Class: MBA I Year/II Semester
Period: 01
Topic:
Introduction of MIS
A definition of management information system, as the term is generally

understood, is an integrated, user machine system for providing information to
support operations, management, and decision making functions in an organization.
The system utilizes computer hardware and software; manual procedures; models for
analysis, planning, control and decision making; and a database. The fact that it is an
integrated system does not mean that it is a single, monolithic structure; rather, it
means that the parts fit into an overall design.
The elements of the definition are highlighted below:

A management information system is an integrated user machine system for providing
information. To support the operation, management, analysis, and decision making
function in an organization
The system utilizes computer hardware and software manual procedures model for
analysis, planning, control and decision making and a database.
The elements of the definition are highlighted below:
A management information system is
an Integrated user machine system
for providing information
to support the operation, management, analysis, and decision making
function
in an organization
The system utilizes
computer hardware and software
manual procedures
mdel for analysis, planning, control and decision making and
a database
G.K.M College of Engineering & Technology

R/TP/01
Issue C: Rev 01
Period: 02
Topic: Data, Information, and Intelligence,
The term data means groups of information that represent the qualitative or quantitative
attributes of a variable or set of variables. Data are typically the results of measurements and
can be the basis of graphs, images, or observations of a set of variables.
Information is the result of processing, manipulating and organizing data in a way that
adds to the knowledge of the person receiving it.
Information is a term with many meanings depending on context, but is as a rule closely
related to such concepts as meaning, knowledge, instruction, communication, representation,
and mental stimulus. Information is a message received and understood. In terms of data, it
can be defined as a collection of facts from which conclusions may be drawn.
Information management (IM) is the collection and management of information from one
or more sources and the distribution of that information to one or more audiences. This
sometimes involves those who have a stake in, or a right to that information.
In short, information management entails organizing, retrieving, acquiring and
maintaining information.
Intelligence refers to discrete or secret information with currency and relevance, and the
abstraction, evaluation, and understanding of such information for its accuracy and value.
Theories of Intelligence:
We can become more intelligent through study and practice, through access to
appropriate tools, and through learning to make effective use of these tools (Perkins,
1995).
Howard Gardner
David Perkins
Robert Sternberg

R/TP/01
Issue C: Rev 01
Period: 03
Topic: Information Technology
Information technology (IT), as defined by the Information Technology Association of
America (ITAA), is "the study, design, development, implementation, support or
management of computer-based information systems, particularly software applications and
computer hardware."
IT deals with the use of electronic computers and computer software to convert, store,
protect process, transmit, and securely retrieve information.
IT can be defined as a collection of computer hardware, software, databases, networking and
telecommunication devices that helps the organization to manage the business process more
effectively and efficiently.
A Computer is essentially a system of input/output devices and a processor. The computer performs
arithmetic and logic operations in a CPU- central processing unit, based on program instructions.
The two capabilities most computer share are:
High speed processing
Arithmetic and logic

R/TP/01
Issue C: Rev 01
Period: 04
Topic: Meaning of IS & its functions
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
An information system (IS) - or application landscape - is any combination of information

technology and people's activities that support operations, management, and decision making.
Information system is computer system that support end-users, giving them access to the
information. The transformation of data into information is primary function of
information system [IS].
SOURCE
COLLECTION
ALLOCATION
PROCESSING
OUTPUT
OF DATA
DATA
TO REDUCE UNCERTAINITY
INFORMATION
USER
DECISION
TACKLE BUSINESS PROBLEM
TO BE COMPETITIVE

R/TP/01
Issue C: Rev 01
Period: 05
Topic: Evolution of information system
Based on the needs and requirements of the organization MIS has been evolving though the
period of time. MIS was manually operational before the invention of computer application in
this area. The following table illustrates the evolution of information system.
Decade
1951-60
Information systems
Electronic data processing
1961-70
Management information
system
1971-80
Decision Support System,

expert system
Artificial intelligence,
Executive information system
Knowledge management
system, end user computing
1981 and above

1985 and above
Characteristics of information systems

Collecting, manipulating, storing of data.
No scope for decision making
Pervasive in all level of the management
decisions.
Solution for structured decisions
Analytical models for semi structured decisions
Solution for unstructured decision making
through advanced graphics
Intelligence workstation for knowledge work
which involves thinking, processing information
and formulating analyses , recommendations and
procedures
types of information systems:
transaction processing systems
MIS
decision support systems
expert systems
executive information systems
geographical information systems
E-commerce systems
multi-media systems
differences in:
users
size, scope
complexity, certainty, familiarity

5

R/TP/01
Issue C: Rev 01
Period: 06
Topic: Types based on functions & hierarchy
The IT provides support in 3 major areas:
communication
collaboration
Data access (including knowledge sharing).
Such support is usually given by an information system that we call an application program.
An application is a system developed for specific purpose or function, such as facilitating
each function properly.
Types based on functions:

Departmental IS
Plant IS
Divisional IS
Enterprise wide IS
Inter organizational IS
Key functional areas.
A TYPE IS based on hierarchy:

One way to classify IS by their organizational structure and hierarchical structure.
Executive IS, DSS, MIS, and TPS.
BASIC KINDS OF IS:

Operational-level systems
Management-level systems
Strategic-level systems

R/TP/01
Issue C: Rev 01
Period: 07
Topic: Introduction to System Analyst
A systems analyst researches problem, plans solutions, recommends software and systems,
and coordinates development to meet business or other requirements. They will be familiar
with multiple varieties of programming languages, operating systems, and computer
hardware platforms. Because they often write user requests into technical specifications, the
systems analysts are the liaisons between vendors and information technology professionals.
They may be responsible for developing cost analysis, design considerations, and
implementation time-lines.
A systems analyst may:
Plan a system flow from the ground up.

Interact with customers to learn and document requirements that are then used to
produce business requirements documents.
Write technical requirements from a critical phase.
Interact with designers to understand software limitations.
Help programmers during system development, ex: provide use cases, flowcharts or even
Database design.
Perform system testing.
Deploy the completed system.
Document requirements or contribute to user manuals.
Whenever a development process is conducted, the system analyst is responsible for
designing components and providing that information to the developer.
Who is system analyst: A system analyst is the person who selects and configures computer
systems for an organization or business. His or her job typically begins with determining the
intended purpose of the computers. When configuring computer systems for a business, the
analyst must select both hardware and software.

R/TP/01
Issue C: Rev 01
Period: 08
Topic: Role of System Analyst
The system analyst is the person (or persons) who guides through the development of an IS.
The primary objective of any system analyst is to identify the need of the organization by
acquiring information by various means and methods. Information acquired by the analyst
can be either computer based or manual. Collection of information is the vital step as
indirectly all the major decisions taken in the organizations are influenced. The system
analyst has to coordinate with the system users, computer programmers, manager and number
of people who are related with the use of system. Following are the tasks performed by the
system analyst.
The systems analyst systematically assesses how users interact with technology and
businesses function by examining the inputting and processing of data and the outputting of
information with the intent of improving organizational processes. Many improvements
involve better support of users work tasks and business functions through the use of
computerized information systems. This definition emphasizes a systematic, methodical
approach to analyzingand potentially improvingwhat is occurring in the specific context
experienced by users and created by a business.
In performing these tasks the analyst must always match the information system objectives
with the goals of the organization.
Systems analysts as a consultant
Systems analysts as a programmer
Systems analysts as supporting expert
Systems analysts as agent of change
The architects

R/TP/01
Issue C: Rev 01
Period: 09
Topic: Responsibilities & functions of system analysts
A person who conducts a methodical study and evaluation of an activity such as business to identify
its desired objective in order to determine procedures by which these objectives can be gained is
technically designated as system analysts.
Skills of system analysts:
Technical skills
Interpersonal skills
Management skills
Analytical skills
Functions:
Examining the existing IS and procedures of the procedures of the organization with a view to
find problems and inefficiencies.
Analyzing the findings to develop a basis for designing a new improved system effectively.
Designing a new system that maximizes efficiency, minimizes problem and achieves the set
objectives.
Testing and implementing the new system, including its appraisal before and after
implementation, its documentation and regular maintenance.
Examining the feasibility of new or replacement system proposal.

R/TP/01
Issue C: Rev 01
Unit -2
Period: 10
Topic: Introduction of system analysis & system design
System analysis is the process of investing a system, identifying problems, and using the
information to recommend improvements to the system.
System analysis is a systematic investigation of areal or planned system to determine
the functions of the system and how they relate to each other and to other system
Characteristics:
Top-down approach
Use of tools and techniques
Abstraction of models
Users role
Iterative development
Use of advanced technology
Objectives:
To describe what the customer requires.
To establish a basis for the creation of a software design
To define a set of requirement that can be validated once the software is built,
special notation and graphical symbols are used to describe and partition the
functionality of system.
System design is the process of planning a new business system or one to replace or
complement an existing system.
10

R/TP/01
Issue C: Rev 01
Unit -2
Period: 11
Topic: SDLC
System Development Life Cycle: The Systems Development Life Cycle (SDLC) is a
conceptual model used in project management that describes the stages involved in an
information system development project from an initial feasibility study through maintenance
of the completed application.
Phases of software development cycle:
System study
Feasibility study
System analysis
System design
Coding
Testing
Implementation
Maintenance
11

R/TP/01
Issue C: Rev 01
Unit -2
Period: 12
Topic: SSLC
SYSTEM SOFTWARE LIFE CYCLE MODELS: software development process, also
known as a software development life cycle (SDLC), is a structure imposed on the development of a
software product. Similar terms include software life cycle and software process. It is often considered
a subset of systems development life cycle. There are several models for such processes, each
describing approaches to a variety of tasks or activities that take place during the process. Some
people consider a lifecycle model a more general term and a software development process a more
specific term. For example, there are many specific software development processes that 'fit' the spiral
lifecycle model. ISO/IEC 12207 is an international standard for software lifecycle processes. It aims
to be the standard that defines all the tasks required for developing and maintaining software.
1. Classical waterfall model

2. Iterative waterfall model
3. Prototyping model
4. Evolutionary model
5. Spiral model
12

R/TP/01
Issue C: Rev 01
Unit -2
Period: 13
Topic: System analysis & system design
Systems analysis is a process of collecting factual data, understand the processes involved,
identifying problems and recommending feasible suggestions for improving the system
functioning. This involves studying the business processes, gathering operational data,
understand the information flow, finding out bottlenecks and evolving solutions for
overcoming the weaknesses of the system so as to achieve the organizational goals. System
Analysis also includes subdividing of complex process involving the entire system,
identification of data store and manual processes.
System Design
Based on the user requirements and the detailed analysis of the existing system, the new
system must be designed. This is the phase of system designing. It is the most crucial phase
in the developments of a system. The logical system design arrived at as a result of systems
analysis is converted into physical system design. Normally,
the design proceeds in two stages:
1.
2.
Preliminary or General Design

Structured or Detailed Design
Preliminary or General Design: In the preliminary or general design, the features of the
new system are specified. The costs of implementing these features and the benefits to be
derived are estimated. If the project is still considered to be feasible, we move to the detailed
design stage.
Structured or Detailed Design: In the detailed design stage, computer oriented work begins
in earnest. At this stage, the design of the system becomes more structured. Structure design
is a blue print of a computer system solution to a given problem having the same components
and inter-relationships among the same components as the original problem. Input, output,
databases, forms, codification schemes and processing specifications are drawn up in detail.
In the design stage, the programming language and the hardware and software platform in
which the new system will run are also decided.
13

R/TP/01
Issue C: Rev 01
Unit -2
Period: 14
Topic: Tools
Systems Analysis
Analysis of existing hardware/software
User requirements analysis
Logical systems design:
Conceptual data model (Entity-Relationship Diagram)
Conceptual process model (Data Flow Diagram)
Functional application description
Systems Design
Relational database model and data dictionary (sometimes included in

Systems Analysis phase)
Detailed description of application inputs and outputs
Detailed conceptual design of forms, reports, application programs and other

application components
Yields System Design Specification
There are several tools and techniques used for describing the system design of the system.
These tools and techniques are:
1. Flowchart
2. Data flow diagram (DFD)

3. Data dictionary
4. Structured English
5. Decision table
6. Decision tree
14

R/TP/01
Issue C: Rev 01
Unit -2
Period: 15
Topic: Data flow diagram & Entity relationship
A data-flow diagram (DFD) is a graphical representation of the "flow" of
data through an information system. DFDs can also be used for the
visualization of data processing (structured design).
An entity-relationship model (ERM) is an abstract and conceptual

representation of data.
Entity-relationship modeling is a database modeling
method, used to produce a type of conceptual representation data model of
a system, often a relational database. Diagrams created by this process are
called Entity-Relationship Diagrams (or) ER diagrams, or ERDs.
COMPONENTS OF AN ERD:
1. Object types
2. Relationships
3. Associative object type indicators
4. Super type / sub type indicators.
15

R/TP/01
Issue C: Rev 01
Unit -2
Period: 16
Topic: Object Modeling
OBJECT MODELING TECHNIQUE (OMT) is a well-known example of a software
engineering methodology .it deals with object- oriented development in the analysis &
design phases.
The analysis phase starts with a problem statement which includes a list of goals & a
definitive enumeration of key concepts within a domain.
This problem statement is then expanded into three views or models.
- object model
- dynamic model
-functional model
The system design phase follows the analysis phase. Here the overall architecture is
established.
The OMT software engineering methodology is sequential in the sense that first comes
analysis, followed by design. In each phase, a cyclical approach is taken among the smaller
steps. The OMT is very much like the Booch methodology where emphasis is placed on the
analysis and design phases for initial product delivery. Both the OMT and Booch do not
emphasize implementation, testing, or other life cycle stages.
OOAD-Object oriented analysis and design.
16

R/TP/01
Issue C: Rev 01
Unit -2
Period: 17
Topic: DBMS-database management system
DATA BASE: A Collection of integrated data items that can be retrieved for various
applications. A Database is a collection of related files
DBMS is a set of systems software programs that organizes and maintains in a database for
providing the information.
DBMS is system software used to manage the organization, storage, access, security and
integrity of data in a structured database.
That permits an organization to centralize data, manage them efficiently, and provide
access to the stored data by application programs.
DBMS- Special software to create & maintain a database & enable individual business
applications to extracts the data they need without having to create separate files or
data definitions in their computer programs
A DBMS has three components:
Data Definition Language
Data Manipulation Language
Data dictionary
TYPES OF DATABASE
Operational database
Analytical database
Data warehouse
Distributed database
End-user database
External database
Function of DBMS: Stores data in a uniform and consistent way, Organizes the data,
Accesses the files updates the records, Retrieves data as requested, Adding and deleting
records, Reorganizing the data base by reassigning storage space processing more efficient.,
Provides data security
17

R/TP/01
Issue C: Rev 01
Unit -2
Period: 18
Topic: RBMS
RDBMS RELATIONAL DBMS
RDBMS may be a DBMS in which data is stored in the form of tables and the
relationship among the data is also stored in the form of tables.It represents all data in the
database as simple two dimensional tables called relations. Tables may be referred to as files.
Information in more than one file can be extracted and combined.
RDMBS structured query language (SQL) is the principal data manipulation language for
relational DBMS & major tool for querying , updating , reading a relational database.
The most popular RDBMS are MS SQLserver,DB2, Oracle, and MySQL
RDBMS components
Interface drivers
SQL engine
Transaction engine
Relational engine
Storage engine
Difference between DBMA & RDBMS
DBMS is single user system. RDBMS is a multi user system.
DBMS do not store data in the table format while RDBMS stores data in the form of
table.
Most of the DBMS are not supporting client / server architecture as it is supported by
RDBMS
Most of the DBMS do not support distributed databases while RDBMS is do that.
18

R/TP/01
Issue C: Rev 01
Unit -2
Period: 19
Topic: OODBMS
In programming languages is to utilize objects, thereby making OODBMS in
the 1980s. OO (Object Oriented) programmers can develop the product, store them as
objects, and can replicate or modify existing objects to make new objects within the
OODBMS. Information today includes not only data but video, audio, graphs, and photos
which are considered complex data types that relational database could not.
Its consistent, data independent, secure, controlled & extensible data management
services to support the object oriented model. They were created to handle big &
complex data that relational databases could not.
Its stores the data & procedure as objects that can be automatically retrieved &
shared. OODBMS are becoming popular because they can be used to manage the
various multimedia components or java applets used in web applications, drawings
images , photographs, voice, and full motion videos etc.
OBJECT ORIENTED PROGRAMMING RESULTS IN 4 CHARACTERSITICS:

1. INHERITANCE
2. DATA ENCAPSULATION
3. OBJECT IDENTITY
4. POLYMORPHISM
ADVANTAGES:
Object oriented is a more natural way of thinking
The defined operations of those types of systems are dependent on the particular
database applications running at a given moment.
Data types of object oriented databases can be extend to support complex data, such
as images , digital & audio/ video along with other multi-media operations.
19

R/TP/01
Issue C: Rev 01
Unit -3
Period: 20
Topic: Financial Information system
FINANCIAL INFORMATION SYSTEM
Finance function is responsible for overall financial planning and raising of capital.
Financial IS has a significant impact on other IS when one considers that the ultimate
common denominator of many operating decisions in finance.
INPUT SUBSYSTEM:
OUTPUT SUBSYSTEM:
Transactional data
forecasting
Forecasting data
funds management
Financial intelligence
audit and control
Financial strategic data
INPUT SUBSYSTEM
OUTPUT SUBSYSTEM
TRANSACTIONAL DATA
FORECASTING
FORECASTING DATA
USERS
DATA
FINANCIAL
BASE
FUNDS
MANAGEMENT
INTELLIGENCE DATA
AUDIT &
FINANCIAL
CONTROL
STRATEGIC
DATA
20

R/TP/01
Issue C: Rev 01
Unit -3
Period: 21
Topic: Marketing Information system
MARKETING INFORMATION SYSTEM
Marketing is concerned with identifying the needs & wants of customers & effectively offer
goods & services.The role of Marketing IS to assess the managers information needs, develop
the needed information and distribute that information in a timely fashion.
The INPUT subsystems of marketing IS are:
Internal records system
Marketing intelligence system
Marketing research system
Marketing decision support and analysis system
MARKETING INFORMATION SYSTEM
INPUT SUB SYSTEM
OUTPUT SUB SYSTEM

PRODUCT
INTERNAL RECORDS
PLAAN
MARKETING
INTELIGENCE DATA
PRICE PLAN
OTHER
AREAS
DATA
MARKETING
BASE
RESEARCH DATA
PLACE
PLAN
MARKETING
PROMOTION
DECISION
PLAN
SUPPORT
DATA
21
EXTERNAL
ENVIRONMENT

R/TP/01
Issue C: Rev 01
Unit -3
Period: 21
Topic: Personnel Information system
PERSONNEL INFORMATION SYSTEM-PIS
PIS is a staff function that supports the activities of the firms line functions. The functions
carried out by personnel administration generally impact all other functional areas of an
organization.
INPUT SUBSYSTEM:
OUTPUT SUBSYSTEM
Transactional Data
organizational resource planning
Functional plans
organizational management
External data
payroll & admin
INPUT
OUTPUT
ORGANISATIONAL
TRANSACTIONAL DATA
RESOURCE
PLANNING
FUNCTIONAL PLANS
DATA
ORGANISATIONAL
BASE
MANAGEMENT
EXTERNAL DATA
PAYROLL
ADMIN
22
USERS

R/TP/01
Issue C: Rev 01
Unit -3
Period: 22
Topic: Production Information system
Inputs to the Manufacturing MIS
Strategic plan or corporate policies.
The TPS:
Order processing
Inventory data
Receiving and inspecting data
Personnel data
Production process
External sources
Manufacturing MIS Subsystems and Outputs

Design and engineering
Master production scheduling
Inventory control
Manufacturing resource planning
Just-in-time inventory and manufacturing
Process control
Computer-integrated manufacturing (CIM)
Quality control and testing
23

R/TP/01
Issue C: Rev 01
Unit -3
Period: 24
Topic: Materials Information System

Materials Information System signifies one and the same system, which
helps the materials managers to know where the required item is available
for production.
Materials intelligence
Selection of right quality, quantity, and supplier.
Planning for both short & long term
MRP
Budgeting
Unit -3
Period: 25
24

R/TP/01
Issue C: Rev 01
Topic: DSS-Decision Support System
MANAGEMENT SUPPORT SYSTEM MSS: Management support system focus on
managerial uses of information resources. These systems provide information to managers for
planning and decision making by internal & external data.
3 types of Management support system:
Decision support system-DSS
Executive information support system-EIS
Expert system.
DSS are designed to support the decision making process of managers to improve their
effectiveness & thereby efficiency of the enterprise. DSS are also described as interactive IS
that help managers utilize data analysis models to solve unstructured problems.
A DSS is an interactive , flexible , and adaptable computer based information system
that utilizes decision rules , models, & model base coupled with a comprehensive
database & the decision makers own insight, leading to specific, implemental decisions
in solving problems that would not be amenable to a management science models per..
This definition clearly presents the characteristics of a DSS:
Is a MSS whose capabilities go beyond those of MIS?
Is only supportive in nature & human decision makers still retain their supremacy.
Is individual specific.
Extensively uses databases.
Also incorporates various mathematical, statistical, operational research models.
Provides good user interfaces for decision makers.
TYPES AND FEATURES OF DSS:

DSS may be a data or model oriented.
The data oriented DSS have greater input of data RETRIEVEL & DATA
ANALYSIS.
Model oriented DSS has powerful facilities for simulation of decision
scenarios by estimating the outcome of action & generating suggestions.
Unit -3
Period: 26
Topic: EIS-EXECUTIVE INFORMATION SYSTEMS-EIS

25

R/TP/01
Issue C: Rev 01
The top executives need fast access to up-to-date, concise information & exception reports
with facilities to personalized information & analysis. The IS designed to provide to such
needs of top executives are called executive IS (EIS) or executive support systems. IS is a
software, front ended by a user-terminal and a interface. It electronically provides executives
with rapid & reliable access to information regarding key areas of business, and helps them to
perm their management functions and achieve business objectives.
CHARACTERISTICS OF EIS:
Need for a separate executive database.
Data aggregation facilities
Highly user-friendly interface
Flexible menu- based data retrieval
High-quality business graphics
Simple modeling facilities
Communications
Automated links to others databases.
HOW DOES AN EIS WORK
On the basis of identification & monitoring of key performance indicators (KPI) &
critical success factors (CSF).
Typical status reporting facilities provided by an EIS include
Drill-down- offer highest level of summary data with over-view of performance of

each.
Exception reporting- opposite of drill down , instead of starting with aggregate

information and later digging for details , looks for details against user- defined levels
of acceptability.
Trend monitoring- finding out the directions in which a given set of numbers is
moving.
26

R/TP/01
Issue C: Rev 01
Unit -3
Period: 27
Topic: KMS
KMS refers to a system for managing knowledge in organizations for
supporting creation, capture, storage and dissemination of information.
The idea of a KM system is to enable employees to have ready access to the
organization's documented base of facts, sources of information, and solutions.
Sharing of valuable organizational information throughout organizational
hierarchy.
Can avoid re -inventing the wheel, reducing surplus work.
May reduce training time for new employees
Retention of Intellectual Property after the employee leaves if such knowledge
can be stored.
KNOWLEDGE WORK SYSTEMS (KWS):
The KWS are specially designed to promote the creation of
knowledge and to ensure that new knowledge & technical expertise are properly
integrated into the business.
Includes researchers, designers, architects, scientist and engineers who
primarily create knowledge and information for the org..
Examples CAD/CAM, 3D visualization, virtual reality systems, Investment
workstations.
27

R/TP/01
Issue C: Rev 01
Unit -3
Period: 28
Topic: GIS-GEOGRAPHICAL INFORMATION SYSTEM
A Geographic information system (GIS) is a computer program for storing, retrieving,
analyzing, & displaying cartographic data. Technically, a GIS is a system that includes
mapping software & its application to remote sensing, land surveying, aerial photography,
geography, & tools that can be implemented with GIS software.
A Geographic information system is a computer system that uses location information:
Address
Postal code
Census block
Latitude / longitude coordinates
With a GIS, you can:
Map customers to study demographics
Look for patterns in the way a disease is spreading
Model the path of atmospheric pollution
And much more
A GIS can also map information stored in:
Spreadsheets
Database
GIS allows you to see:
Patterns
Relationships
Trends
28

R/TP/01
Issue C: Rev 01
Unit -3
Period: 29
Topic: INTERNATIONAL INFORMATION SYSTEM-IIS
Business is turning themselves into global organization. To handle these challenges the
companies will need faster communications and information processing.
Company will have to rely more on information technology to manage global
organization. This type of creation of IS in co operating in one or more countries is
referred to as IIS.
Globalization
Barriers to ISS:
Legal issues
Market access issues
Financial issues
Language and translation
Purchasing in different currencies
Challenges of ISS:
Technological challenges
Regulations and tariffs
Differences in payment mechanisms
Language differences
Cultural differences
Conflicting economic, scientific and security interests
Political challenges
Different standards
Legal barriers
Different time zones.
29

R/TP/01
Issue C: Rev 01
Unit -4
Period: 30
Topic: Introduction to SECURITY AND CONTROL
SECURITY:
Security refers to the protection of computer based resources hardware, software,
data, procedures and people against alteration, destruction, or unauthorized use.

All computer systems & communications channels face security threats that can compromise
systems, the services provided by the systems, and data stored on or transmitted between
systems.
The most common threats are:
denial-of-service
Interception
Manipulation
Masquerading
repudiation
CONTROLS
The combination of manual and automated measures that safeguards IS and ensure
that they perform according to management standards is termed controls.
Controls consist of all the methods, policies, and organizational procedures that
ensure the safety of the organization assets the accuracy and reliability of its
accounting records, and operational adherence to management standards.
Properly designed controls may prevent errors from occurring, deter criminals from
attacking the system, and deny access to authorized persons.
General controls
Physical controls
Access controls
Biometric controls
Data security controls
Other general controls
30

R/TP/01
Issue C: Rev 01
Unit -4
Period: 31
Topic: Security system & types of testing
CHALLENGES OF IS SECURITY:
Internal the mode of attack is within the organization. For example, employees
misusing their authentication right and access permissions.
External originating outside the organization, for example, hackers and viruses.
Natural due to natural disasters or system failure, for example, earthquakes.
TESTING
Security testing is possibly the surest determinant of whether a system is configured
and continues to be configured to the correct security controls and policy.
Security testing is a process to determine that an information system protects data and
maintains functionally as intended.
Security testing provides insight into the other system development life cycle
activities such as risk analysis and contingency planning.
Security testing results should be documented and made available foe staff involved
in other IT AND Security related areas.
Specifically, security testing results can be used in the following ways:
As a reference point for corrective action.
In defining mitigation activities to address identified vulnerabilities.
As a benchmark for tracking an organization progress in meeting security

requirement.
To assess implementation status of system security requirement.
To conduct cost/ benefit analysis for improvement to system security
To enhance other life-cycle activities, such as risk assessments, certification and

authorization (C&A), performance improvement efforts.
31

R/TP/01
Issue C: Rev 01
Unit -4
Period: 32
Topic: Error Deduction & controls: Controls consist of all the methods, policies, and
organizational procedures that ensure the safety of the organization assets the accuracy and
reliability of its accounting records, and operational adherence to management standards.
Properly designed controls may prevent errors from occurring, deter criminals from attacking
the system, and deny access to authorized persons.
General controls
Physical controls
Access controls
Biometric controls
Data security controls
Other general controls
Application controls
Input controls
Processing controls
Output controls
Controls for network protection
Access control
Encryption
Cable testers
firewalls
32

R/TP/01
Issue C: Rev 01
Unit -4
Period: 33
Topic: IS Vulnerability
VULNERABILITY
In computer security, the term vulnerability is a weakness which allows an attacker to

reduce a system information assurance.
vulnerability is the intersection of 3 elements:
A system susceptibility or flaw, attacker access to the flaw, and attacker capacity to
exploit the flaw.
IS vulnerability
It is termed as a flaw [fault] or weakness in system security procedure, design,

implementation, or internal controls that could be exercised (accidentally triggered or
intentionally exploited) and result in a security breach or a violation of the system
security policy.
CAUSES OF VULNERABILITY
Complexity
Familiarity
Connectivity
Password management flaws
Fundamental operating system design flaws
Internet website browsing
Software bugs
Unchecked user input
33

R/TP/01
Issue C: Rev 01
Unit -4
Period: 34
Topic: Computer crimes
Its includes traditional criminal acts committed with a computer as well as new
offenses that lack any parallels with non-computer crimes
The U.S department of justice [DOJ] broadly defines computer crimes as any
violations of criminal law that involve knowledge of computer technology for their
perpetration, investigation, or prosecution.
Cyber-crimes are frequently grouped into 3 categories.
The first are those in which the computer comprises the object of crime and in
which the perpetrator targets the computer itself.
The second category involves those in which the computer forms the subject of a
crime, either as the physical site of the offense or as the source of some form of loss
or damage.
Third, which computer serves the instrument used to commit traditional crimes in
cyberspaces? This encompasses offenses like cyber-fraud, online harassment, and
child pornography.
Types of computer crimes:
Spam
Fraud
Obscene or offensive content
Harassment
Drug trafficking
Cyber terrorism
Cyber crime: Any criminal activity that uses a computer either as an instrumentally, target
or means for perpetuating further crimes comes within the ambit of cyber crime. A
generalized definition is unlawful acts wherein the computer is either a tool or target or
both
Reasons for cyber crimes:
Capacity to store data in comparatively small space.
Easy to access. Complex, Negligence, Loss of evidence

34

R/TP/01
Issue C: Rev 01
Unit -4
Period: 35
Topic: SECURING THE WEBSITE
Right when choosing your web hosting company you need to ask about their servers & how
secure they are. Do they update software quickly & automatically? What operating system is
used & is used and is it secure?
Make sure that if you have sensitive data such as a customer credit card / personal
information that is transmitted or stored, keep data secure.
Use packet filtering and firewall settings to restrict unauthorized sites. Make it password
protected.
Vulnerability scanners are used in some cases to find the weakness in yours sites security.
Once your business is connected to the internet, its your responsibility to protect your
business data & information against unwanted intruders.
You should ensure that your connection to the internet is secure. Some issues to consider
when securing your website are:
Working procedures
Virus and spy ware protection software
Firewalls
Back up data
Using secure passwords
Ensure the security of your electronic transactions:
Spoofing
Unauthorized disclosure
Unauthorized action
Data alteration
Antivirus:
Malware Viruses, Trojans, Spy ware, Worms, Bots.

Anti-spy ware
35

R/TP/01
Issue C: Rev 01
Unit -4
Period: 36
Topic: security the Intranets and Wireless Networks
Securing the intranet: An intranet is an internal information system based on internet
technology, web services, TCP/IP and HTTP communication protocols and HTML
publishing
The intranet is a technology that allows an organization to define itself as a whole entity, a
group, where everyone knows their roles, and everyone is working on the improvement and
health of organization
Its a smaller version of internet that only the members of an organization can see internal
network by keeping it private, secure and affordable.
Business applications of intranet: organization use intranets for variety of internal functions.
Human resources intranet
Sales and marketing intranet
Information system intranet
Executive or corporate intranet
Customer service intranet
Finance intranet
Advantages of an intranet:
Exchange files with other branches, co or people is much faster than traditional
methods
Global communication is another advantages
Inter-office network communication network
Timely updates
36

R/TP/01
Issue C: Rev 01
Unit -4
Period: 37
Topic: Software Audit
AUDIT:
Audits provide an independent evaluation of software products or process to ascertain

compliance to standards, specifications, and procedures based on objectives criteria that
included documents that specify.
Software audit is a regular investigation of the software installed on all computers in an
organization to ensure that it is authorized or licensed.
Software audit minimize the risk of prosecution for software theft, minimize the risk of
viruses through uncontrolled software copying and ensure technical support is available to all
users.
Purpose or need for software audit:
To identify critical security issues before they are exploited.
To perform extensive, regular security audit on the installed software or systems to

reduce vulnerabilities
To locate the most problematic crashes of application, and improving debug (clear up,
correct, sort out) capabilities.
To conduct software vulnerability assessment, and gain control over organization

private data etc.
Auditing regularly the commercial software, provide quality assurance requirement .
SOFTWARE AUDIT REVIEW:
Type of software review in which one or more auditors who are not members of the
software development organization conduct.
An independent examination of software product, software process, or set of

software process to access compliance with specifications, standards, contractual
agreement, or other criteria.
Software product is kind of technical document, IEEE std.1028 offers a list of 32

examples of software products subjects to audit
37

R/TP/01
Issue C: Rev 01
Unit -4
Period: 38
Topic: Ethics in IT
Ethics is a moral code and set of rules which establishes boundaries of generally accepted
behavior. Morality is social conventions about right and wrong. Ethics is a set of beliefs
about right and wrong behavior. Ethical behavior conforms to generally accepted social
norms.
Ethics in IT:
Data mining
Social networking
E-mail spam
Intellectual property / IT
Filtering online content
Ethics and IT professionals:
The IT professional like programmers , system analysts, software, software engineers,

database administrators, local area network [LAN] administrators, chief information
officers [CIO's] are responsible to following stakeholders in terms of keeping ethical
behavior in IT.
Relationships between IT professionals and employers.

Relationships between IT professionals and clients
Relationships between IT professionals and suppliers
Relationships between IT professionals and other professionals
Relationships between IT professionals and IT users
Relationships between IT professionals and society
38

R/TP/01
Issue C: Rev 01
Unit -5
Period: 39
Topic: e-Business & its Classification
Electronic commerce or e-commerce refers to a wide range of online business activities for
products and services.1 It also pertains to any form of business transaction in which the
parties interact electronically rather than by physical exchanges or direct physical contact.
Is e-commerce the same as e-business?
While some use e-commerce and e-business interchangeably, they are distinct concepts. In ecommerce, information and communications technology (ICT) is used in inter-business or
inter-organizational transactions (transactions between and among firms/organizations) and in
business-to-consumer transactions (transactions between firms/organizations and
individuals).
In e-business, on the other hand, ICT is used to enhance ones business. It includes any
process that a business organization (either a for-profit, governmental or non-profit entity)
conducts over a computer-mediated network.
A more comprehensive definition of e-business is: The transformation of an
organizations processes to deliver additional customer value through the application of
technologies, philosophies and computing paradigm of the new economy.
What are the different types of e-commerce?
The major different types of e-commerce are:
1. business-to-business (B2B);
2. business to-consumer (B2C);
3. business-to-government (B2G);
4. consumer-to-consumer (C2C);
5. mobile commerce (m-commerce)
39

R/TP/01
Issue C: Rev 01
Unit -5
Period: 40
Topic: e-governance
The term e-government is of recent origin and there exists no standard definition since the
conceptual understanding is still evolving. The generally accepted definition is: "egovernment" or electronic government refers to the use of Information and Communication
Technologies (ICTs) by government agencies for any or all of the following reasons:
Exchange of information with citizens, businesses or other government departments
Speedier and more efficient delivery of public services
Improving internal efficiency
Reducing costs or increasing revenue
Re-structuring of administrative processes
Defining e-governance: The application of electric means in: [1] the interaction between
government and citizens and government and business, as well as in [2] internal
government operations to simplify and improve democratic, government and business
aspects of governance.
E-administration
E-services
E-governance
E-democracy
Delivery models & activities of e- governance:
Government-to-citizen or Government-to-customer[G2C]
Government-to-business[G2B]
Government-to- Government[G2G]
Government-to-employees[G2E]
40

R/TP/01
Issue C: Rev 01
Unit -5
Period: 41
Topic: ERP
Enterprise resource planning (ERP) systems integrate internal and external management
information across an entire organization, embracing finance/accounting, manufacturing,
sales and service, customer relationship management, etc. ERP systems automate this activity
with an integrated software application. Their purpose is to facilitate the flow of information
between all business functions inside the boundaries of the organization and manage the
connections to outside stakeholders.ERP is a software architecture that facilitates the flow of
information among the different functions within an enterprise. Similarly, ERP facilitates
information sharing across organizational units and geographical locations. It enables
decision-makers to have an enterprise-wide view of the information they need in a timely,
reliable and consistent fashion.
A business strategy and set of industry-domain-specific applications that build
customer and shareholder communities value network system by enabling and
optimizing enterprise and inter-enterprise collaborative operational and financial
processes
Installing an ERP system has many advantages - both direct and indirect. The direct
advantages include improved efficiency information integration for better decision-making,
faster response time to customer queries, etc.
The indirect benefits include better corporate image, improved customer goodwill, customer
satisfaction and so on. Some of the benefits are quantitative (tangible) while others are nonquantitative (intangible).
Tangible benefits are those measured in monetary terms and intangible benefits cannot be
measured in monetary terms but they do have a very significant business impact.
Tangible benefits:
Improves the productivity of process and personnel

Lowering the cost of products and services purchased
Paper and postage cost reductions
Inventory reduction
Lead time reduction
Reduced stock obsolescence
Faster product / service look-up and ordering saving time and money
Automated ordering and payment, lowering payment processing and paper costs
Intangible benefits:
Increases organizational transparency and responsibility

Accurate and faster access to data for timely decisions
Can reach more vendors, producing more competitive bids ;
41

R/TP/01
Issue C: Rev 01
Unit -5
Period: 42
Topic: SCM
A supply chain is a network of facilities and distribution options that performs the functions of
procurement of materials, transformation of these materials into intermediate and finished products,
and the distribution of these finished products to customers. Supply chains exist in both service and
manufacturing organizations, although the complexity of the chain may vary greatly from industry to
industry and firm to firm.
There are four major decision areas in supply chain management: 1) location, 2) production,
3) inventory, and 4) transportation (distribution), and there are both strategic and operational
elements in each of these decision areas.
Information In The Supply Chain

Plan
Suppliers
Warehouses &
Manufacturers
Retailer
Distribution Centers
Source
Order Lead
Time
Delivery Lead
Time
Make
Deliver
Each facility further away from

actual customer demand must
make forecasts of demand
Lacking actual customer buying

data, each facility bases its
forecasts on downstream
orders, which are more variable
than actual demand
To accommodate variability,
inventory levels are
overstocked thus increasing
inventory carrying costs
Production Lead
Time
42
Sell
Its estimated that the

typical pharmaceutical
company supply chain
carries over 100 days of
product to
accommodate
uncertainty

R/TP/01
Issue C: Rev 01
Unit -5
Period: 43
Topic: e-CRM
e-CRM This concept is derived from E-commerce. It also uses net environment i.e., intranet, extranet
and internet. Electronic CRM concerns all forms of managing relationships with customers making
use of Information Technology (IT). eCRM is enterprises using IT to integrate internal organization
resources and external marketing strategies to understand and fulfill their customers needs.
Comparing with traditional CRM, the integrated information for eCRM intraorganizational
collaboration can be more efficient to communicate with customers.
Major differences between CRM and eCRM :

Customer contacts
CRM Contact with customer made through the retail store, phone, and fax.
eCRM All of the traditional methods are used in addition to Internet, email, wireless,
and PDA technologies.
System interface
CRM Implements the use of ERP systems, emphasis is on the back-end.

eCRM Geared more toward front end, which interacts with the back-end through use of
ERP systems, data warehouses, and data marts.
System overhead (client computers)
CRM The client must download various applications to view the web-enabled
applications. They would have to be rewritten for different platform.
eCRM Does not have these requirements because the client uses the browser.
Customization and personalization of information
CRM Views differ based on the audience, and personalized views are not available.
Individual personalization requires program changes.
eCRM Personalized individual views based on purchase history and preferences.
Individual has ability to customize view.
System focus
CRM System (created for internal use) designed based on job function and products.
Web applications designed for a single department or business unit.
eCRM System (created for external use) designed based on customer needs. Web
application designed for enterprise-wide use.
43

R/TP/01
Issue C: Rev 01
Unit -5
Period: 44
Topic: Data warehousing & data mining
In computing, a data warehouse (DW) is a database used for reporting and analysis. The
data stored in the warehouse is uploaded from the operational systems. The data may pass
through an operational data store for additional operations before it is used in the DW for
reporting.
A data warehouse maintains its functions in three layers: staging, integration, and access.
Staging is used to store raw data for use by developers. The integration layer is used to
integrate data and to have a level of abstraction from users. The access layer is for getting
data out for users.Data warehouses can be subdivided into data marts. Data marts store
subsets of data from a warehouse.
Data mining (the analysis step of the knowledge discovery in databases process or KDD),
a relatively young and interdisciplinary field of computer science is the process of
discovering new patterns from large data sets involving methods at the intersection of
artificial intelligence, machine learning, statistics and database systems. The goal of data
mining is to extract knowledge from a data set in a human-understandable structure and
involves database and data management, data preprocessing, model and inference
considerations, interestingness metrics, complexity considerations, post-processing of found
structure, visualization and online updating.
44

R/TP/01
Issue C: Rev 01
Unit -5
Period: 45
Topic: Business Intelligence
Business intelligence (BI) mainly refers to computer-based techniques used in identifying,
extracting and analyzing business data, such as sales revenue by products and/or departments,
or by associated costs and incomes. BI technologies provide historical, current and predictive
views of business operations. Common functions of business intelligence technologies are
reporting, online analytical processing, analytics, data mining, process mining, complex event
processing, business performance management, benchmarking, text mining and predictive
analytics.
BI is a business management term which refers to applications and technologies which are
used to gather, provide access to, and analyze data and information about their company
operations
The 5 key stages of BI:
1. Data sourcing
2. data analysis
3. data situation awareness
4. risk assessment
5. decision support
45

R/TP/01
Issue C: Rev 01
Unit -5
Period: 46
Topic: Pervasive computing
The word pervasive and ubiquitous mean existing everywhere. It is growing trend
towards embedding microprocessors in everyday objects so they can communicate
information.
According to Mark Weise, Pervasive computing is roughly the opposite of virtual
reality. Where virtual reality puts people inside a computer -generated world, Pervasive
computing forces the computer to live out here in the world with people.
PRINCIPLES:
DECENTRALIZATION
DIVERSIFICATION
CONNECTIVITY
SIMPLICITY
TECHNOLOGIES:
COMPUTING-DEVICES
COMMUNICATIONS-CONNECTIVITY
USER INTERFACES
46

R/TP/01
Issue C: Rev 01
Unit -5
Period: 47
Topic: CMM
What is the Capability Maturity Model (CMM)?

The application of process management and quality improvement
concepts to software development and maintenance.
A guide for evolving toward a culture of engineering excellence.
A model for organizational improvement.
Focuses on practices that are under control of the software group
Presents a minimum set of recommended practices that have been shown to

enhance a software development and maintenance capability
It defines the expectation (the what)
Without overly constraining the implementation (the how)
Levels of CMM:
1. Initial level
2. Repeatable level
3. Defined level
4.Managed level
5.Optimizing level
47

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G.K.

M College of Engineering & Technology

A definition of management information system, as the term is generally

The elements of the definition are highlighted below:

G.K.M College of Engineering & Technology

G.K.M College of Engineering & Technology

G.K.M College of Engineering & Technology

An information system (IS) - or application landscape - is any combination of information

TACKLE BUSINESS PROBLEM

G.K.M College of Engineering & Technology

Decision Support System,

1981 and above

Characteristics of information systems

types of information systems:

transaction processing systems

decision support systems

executive information systems

geographical information systems

complexity, certainty, familiarity

G.K.M College of Engineering & Technology

Types based on functions:

A TYPE IS based on hierarchy:

Executive IS, DSS, MIS, and TPS.

BASIC KINDS OF IS:

G.K.M College of Engineering & Technology

Plan a system flow from the ground up.

G.K.M College of Engineering & Technology

G.K.M College of Engineering & Technology

G.K.M College of Engineering & Technology

G.K.M College of Engineering & Technology

Phases of software development cycle:

G.K.M College of Engineering & Technology

1. Classical waterfall model

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Preliminary or General Design

G.K.M College of Engineering & Technology

Analysis of existing hardware/software

User requirements analysis

Logical systems design:

Conceptual data model (Entity-Relationship Diagram)

Conceptual process model (Data Flow Diagram)

Functional application description

Relational database model and data dictionary (sometimes included in

Detailed description of application inputs and outputs

Detailed conceptual design of forms, reports, application programs and other

Yields System Design Specification

2. Data flow diagram (DFD)

G.K.M College of Engineering & Technology

An entity-relationship model (ERM) is an abstract and conceptual

G.K.M College of Engineering & Technology

This problem statement is then expanded into three views or models.

G.K.M College of Engineering & Technology

Data Definition Language

Data Manipulation Language

G.K.M College of Engineering & Technology

Difference between DBMA & RDBMS

DBMS is single user system. RDBMS is a multi user system.

G.K.M College of Engineering & Technology

OBJECT ORIENTED PROGRAMMING RESULTS IN 4 CHARACTERSITICS:

Object oriented is a more natural way of thinking

G.K.M College of Engineering & Technology

audit and control

Financial strategic data

G.K.M College of Engineering & Technology