MIS

Management
Information System
 Meaning of MIS

We live in an information age The original definitions of

information were associated with knowledge. what we are going
to do with it.

As the organization grows, the management function is

performed by people who are more specialized and may be
removed from day-to-day activities. It is usually at this time
management information systems (MIS) are required.
S.CHANDRAMOULI - MBA
 In order to make decisions, managers need the right
information to serve a wider range of needs.

A systems approach to managing this demand can be met

through management information systems (MIS).
It has been said that MIS are what the nervous system is
to the human body.
 Definitions of M , I, S
Management - being managed or people managing a
business. Over recent years management has become
more scientific and system-oriented.

Information - knowledge made available to people

within an organisation.

Systems - sets of connected things or parts within an

organisation which tie the planning and control by
managers to the various operations.
 Definitions of MIS

A system to convert data from internal and external sources

into information and to communicate that information, in an
appropriate form, to managers at all levels in all functions to
enable them to make timely and effective decisions for
planning, directing and controlling the activities for which
they are responsible.
- Lucey (1995)
 DECISION

USER

INFORMATION

OUTPUT

PROCESSING
DATA

PERTINENT

COLLECTION OF DATA
Introduction
Information system (IS)
A set of interrelated components that collect,
manipulate, and disseminate information, and provide
feedback to meet an objective
Examples: ATMs, airline reservation systems, course
reservation systems
Information Concepts
Information is one of an organizations most valuable
resources
Information is different from data
Data, Information, and Knowledge
Data: raw facts
Information: collection of facts organized in such a
way that they have value beyond the facts themselves
Knowledge: awareness and understanding of a set of
information and ways that information can be made
useful to support a specific task or reach a decision
 Data & Information
Data is used as input for the computer system.
Information is the output of data.
Data is unprocessed facts figures. Information is
processed data.
Data doesnt depend on Information. Information
depends on data.
Data is not specific. Information is specific.
Data is a single unit. A group of data which carries
news are meaning is called Information.
Data doesnt carry a meaning. Information must carry
a logical meaning.
Data is the raw material. Information is the product.
Data, Information, and Knowledge
(continued)

Table 1.1: Types of Data

Data, Information, and Knowledge
(continued)

Figure 1.2: The Process of Transforming Data into Information

The Characteristics of Valuable
Information

Table 1.2: Characteristics of Valuable Information

The Characteristics of Valuable
Information (continued)

Table 1.2: Characteristics of Valuable Information (continued)

The Value of Information
Value of information is directly linked to how it helps
decision makers achieve their organizations goals
For example, value of information might be measured
in:
Time required to make a decision
Increased profits to company
System Concepts
System
A set of elements or components that interact to
accomplish goals
Components of a system
Input
Processing
Output
Feedback
System Concepts (continued)

Figure 1.3: Components of a System

System Performance and
Standards
Efficiency: measure of what is produced divided by
what is consumed
Effectiveness: extent to which system attains its goals
System performance standard: a specific objective
of the system
What Is An Information System?

Figure 1.5: The Components of an Information System

Input, Processing, Output,
Feedback
Input: activity of gathering and capturing raw data
Processing: converting or transforming data into
useful outputs
Output: production of useful information, usually in
the form of documents and reports
Feedback: output that is used to make changes to
input or processing activities
Manual and Computerized
Information Systems
An information system can be:
Manual
Computerized
Computer-Based Information
Systems
Computer-based information system (CBIS)
A single set of hardware, software, databases,
telecommunications, people, and procedures that are
configured to collect, manipulate, store, and process
data into information
Information for Management
Sources of data are: sales volume of competitors
Customer profiles

Questionnaire data (focus groups)

Demographic data

Time horizon: past, present & future

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The Role of IS
Information technology is partly responsible for the
PARADIGM shift (A change, a new model,) from
support to contributing to an organizations profitability.
From efficient data processing shops to understanding
the goals and objectives of an Organization to
participating directly in the decision making and
strategy formulation

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The Role of IS
Systems Planning
Data Center Management & Operations
Management of Remote Equipment
Identification of Opportunities for New Systems
Systems Analysis, Design, and Construction of New Systems
Distributed Systems: The migration of equipment to user
areas and control (selection, purchase, and ownership).
Standards sometimes set by IS department.

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The Role of IS
Understand the Business
Environmental Scanning: Find out what is happening
in the market place
Concentrate on the lines of the business
Sponsor weekly briefings
Attend industry meetings with line executives
Read industry publications
Hold informal listening sessions
Become a partner with the line manager

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The Role of IS
Concentrate on Lines of Business
Treat inputs as a request from a customer and outputs as
an order going to a customer.
Example: GM sells cars, parts and financing. Each is a
different line of the business, and each would required
different systems.
Support current operations
Use system to influence future ways of working

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 Systems development
Systems development is the process of defining,
designing, testing, and implementing a new software
application or program. It could include the
internal development of customized systems, the
creation of database systems, or the acquisition of
third party developed software

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table_02_03
32
Introduction
Database: an organized collection of data
Database management system (DBMS): group of
programs to manage database
Manipulates data
Provides an interface between database and the user of
the database and other application programs
Database administrator (DBA): skilled IS
professional who directs all activities related to an
organizations database
4.1 Managing Data
Difficulties in Managing Data:
Amount of data increases
exponentially.
Data are scattered and collected by
many individuals using various
methods and devices.
Data come from many sources.
Data security, quality and integrity
are critical.
Difficulties in Managing Data (continued)
An ever-increasing amount of data needs to be considered in
making organizational decisions.

The Data flood

Data, Information, Knowledge, Wisdom
The Hierarchy of Data
Bit (a binary digit): A bit is a
binary digit, a 0 or a 1.
Byte: eight bits
A byte is eight bits and
represents a single character
(e.g., a letter, number or
symbol).
Field: typically a name, number,
or combination of characters
that describes an aspect of a
business object or activity
Record: a collection of
related data fields
File: a collection of related
records
Database: a collection of
integrated and related files
Hierarchy of data: bits,
bytes, fields, records, files,
and databases
Data Hierarchy
Bit
Byte
Field
Record
File (or table)
Database
The Hierarchy of Data

Figure 3.1: The Hierarchy of Data

The Database Approach
Traditional approach to database management: separate
data files are created for each application
Results in data redundancy (duplication)
Data redundancy conflicts with data integrity

Database approach to database management: pool of

related data is shared by multiple applications
Significant advantages over traditional approach
The Database Approach

Figure 3.3: The Database Approach to Data Management

The Database Approach
 Disadvantages of the Database Approach

The Database Approach

4.3 Database Management
Systems
Database management system (DBMS)
Relational database model
Structured Query Language (SQL)
Query by Example (QBE)
 A database management system is a set of programs that
provide users with tools to add, delete, access, and
analyze data stored in one location.
The relational database model is based on the concept of
two-dimensional tables.
Structured query language allows users to perform
complicated searches by using relatively simple
statements or keywords.
Query by example allows users to fill out a grid or
template to construct a sample or description of the data
he or she wants.

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Database Management Systems (DBMS)

Interface between:
Database and application programs
Database and the user
Creating and implementing the right database system
ensures that the database will support both business
activities and goals
DBMS: a group of programs used as an interface between a
database and application programs or a database and the user
Student Database Example
Overview of Database Types
Flat file
Simple database program whose records have no relationship to
one another
Single user
Only one person can use the database at a time
Examples: Access, FileMaker, and InfoPath

Multiple user
Allows dozens or hundreds of people to access the same
database system at the same time
Examples: Oracle, Sybase, and IBM
Selecting a Database Management
System
Important characteristics of databases to consider
Size of the database
Cost of the system
Number of concurrent users
Performance
Ability to be integrated with other systems
Vendor considerations
Using Databases with Other
Software
Database management systems are often used with
other software packages or the Internet
A database management system can act as a front-end
application or a back-end application
Front-end application: interacts with users
Back-end application: interacts with applications
Linking Databases to the Internet
Linking databases to the Internet is important for many
organizations and people
Semantic Web
Developing a unified integration of traditional databases with the
Internet
Allows people to access and manipulate a number of traditional
databases at the same time through the Internet
Data Warehouses, Data Marts, and Data
Mining
Data warehouse: collects
business information from many
sources in the enterprise
Data mart: a subset of a data
warehouse
Data mining: an information-
analysis tool for discovering
patterns and relationships in a
data warehouse or a data mart
Data Warehouses, Data Marts, and Data Mining

Table 3.5: Common Data-Mining Applications

Data Warehousing

Data warehouse is a repository of historical data

organized by subject to support decision makers in
the organization.
Data warehouses are organized by business
dimension or subject.
Data warehouses are multidimensional.
Data Warehousing

Data warehouses are historical.

data warehouses can be used for identifying
trends, forecasting, and making comparisons over
time.
Data warehouses use online analytical processing
(OLAP) involves the analysis of accumulated data
by end users
Benefits of Data Warehousing
End users can access data quickly and easily via Web
browsers because they are located in one place.
End users can conduct extensive analysis with data in
ways that may not have been possible before.
End users have a consolidated view of organizational
data.
Data Marts

A data mart is a small data warehouse, designed for the

end-user needs in a strategic business unit (SBU) or a
department.
Data Governance

Data governance is an approach to managing data and

information across an entire organization.
Master data management is a method that organizations
use in data governance.
Master data are a set of core data that span all enterprise
information system.
Data Governance (continued)
Data Governance (continued)
 4.6 Knowledge Management
Knowledge management (KM)
Knowledge management is a process that helps
organizations manipulate important knowledge that is
part of the organizations memory, usually in an
unstructured format.

Knowledge that is contextual, relevant, and actionable.

Intellectual capital is another term often used for
knowledge.
Knowledge Management (continued)

Explicit Knowledge
(above the waterline)

Tacit Knowledge
(below the waterline)
Knowledge Management (continued)
Explicit knowledge: objective, rational, technical
knowledge that has been documented. Examples:
policies, procedural guides, reports, products,
strategies, goals, core competencies

Tacit knowledge: cumulative store of subjective or

experiential learning. Examples: experiences, insights,
expertise, know-how, trade secrets, understanding,
skill sets, and learning.
Knowledge Management (continued)
Knowledge management systems (KMSs)

Knowledge management systems refer to the use of

information technologies to systematize, enhance, and
expedite intrafirm and interfirm knowledge
management.

Best practices

Best practices are the most effective and

efficient ways of doing things.
Knowledge Management System Cycle
Create knowledge
Knowledge is created as people determine new ways
of doing things or develop know-how. Sometimes external
knowledge is brought in.
Capture knowledge
New knowledge must be identified as valuable and
be represented in a reasonable way.
Refine knowledge
New knowledge must be placed in context so that it is
actionable. This is where tacit qualities (human insights)
must be captured along with explicit facts.
 Store knowledge
Useful knowledge must then be stored in a reasonable
format in a knowledge repository so that others in the
organization can access it.
Manage knowledge
Like a library, the knowledge must be kept current. It
must be reviewed regularly to verify that it is relevant and
accurate.
Disseminate knowledge
Knowledge must be made available in a useful format
to any-one in the organization who needs it, anywhere and
anytime.

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Knowledge Management System Cycle
The Telecommunications
System
A telecommunications system consists of hardware
and software that transmit information from one
location to another.
Analog and Digital Signals
Typical Telecommunications System
Communications Processors
Modem: device that converts digital signals to analog
signals and vice versa.
Multiplexer: an electronic device that allows a single
communications channel to carry data transmissions
simultaneously from many sources.
Front-End Processor: a specialized computer that
manages all routing communications with peripheral
devices.
Routing is the process of selecting best paths in a
network
Communications Media and Channels
Twisted-pair wire: most prevalent form of
communications wiring; consists of threads of copper
wire twisted in pairs.
Coaxial cable: insulated copper wire used to carry
high-speed data traffic and television signals.
Fiber optics: thin filaments of glass fibers that
transmit information via light pulses generated by
lasers.
Twisted Pair Wire
Coaxial Cable
Fiber Optics Cable
Transmission Speed
Bandwidth: the range of frequencies available in any
communications channel
Narrowband: low-speed transmission speed
transmissions up to 64 Kbps
Broadband: high-speed transmission speeds ranging
from 256 to several terabits per second.
Transmission Technologies
Integrated Services Digital Network: data transmission technology
that allows users to transfer voice, video, image, and data
simultaneously over existing telephone lines.
Digital Subscriber Line: a high-speed, digital data transmission
technology using existing analog telephone lines.
Asynchronous Transfer Mode: data transmission technology that
uses packet switching and allows for almost unlimited bandwidth on
demand.
Synchronous Optical Network: an interface standard for
transporting digital signals over fiber optic lines that allows users to
integrate transmissions from multiple vendors.
T-Carrier System: digital transmission system that defines circuits
that operate at different rates, all of which are multiples of the basic 64
Kbps user to transport a single voice call.
Types of Networks
A computer network is a system that connects
computers via communications media so that data can
be transmitted among them.
Local area networks
Wide are network
Value-added network
Enterprise network
Types of Networks
Local area networks: connects two or more devices in a
limited geographical region
Wide are network: networks that cover large
geographical areas
Value-added network: A private network provider
hired by a company to facilitate electronic data
interchange (EDI) and/or provide other network services
such as message encryption, secure email and
management reporting.
Enterprise network: the entire network of an
organization, usually consisting of multiple local area
networks and multiple wide area networks. FDDI : Fiber
Distributed Data Interface (FDDI) is a standard
for data transmission in a local area network.
Local Area Network
Wide Area Network
Enterprise Network
Network Fundamentals
Network Protocol: a set of rules and procedures that
govern transmission across a network.
Ethernet: a common LAN protocol.
Transmission Control Protocol/Internet Protocol: a file transfer
protocol that can send large files of information across sometimes
unreliable network with assurance that the data will arrive
uncorrupted; the protocol of the Internet.
FDDI: Fiber Distributed data interface, supports 1000s of users
Types of Network Processing
Client/server: links two or more computers in an arrangement in
which some machines (called servers) provide computing services
for user computers (called clients).
Peer-to-Peer processing: a type of client/server distributed
processing where each computer acts as both a client and a server.
The Four Layers of the TCP/IP
Protocol
Local Area Network:
A local area network (LAN) is a group of
computers and associated devices that share a
common communications line or wireless link.
Typically, connected devices share the resources of
a single processor or server within a small
geographic area .
A local area network may serve as few as two or
three users or as many as thousands of users.

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Wide Area Network:
The WAN is a communications network that makes use of
existing technology to connect local computer networks
into a larger working network that may cover both national
and international locations.

WAN Optimization

When planning your network cloud strategy, try to reduce latency and
round-trip time. Users in remote offices will experience reduced
performance if WAN traffic must cross large geographical areas to reach
the Internet. Implement network way out points as geographically close
as possible to the user, since traffic across your WAN causes more
congestion on some of your more bit-expensive links, and to maintain
privacy some of the links can be blocked.

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Metropolitan Area Network (MAN):
A metropolitan area network (MAN) is a network that interconnects
users with computer resources in a geographic area or region larger
than that covered by even a large local area network but smaller than
the area covered by a wide area network (WAN).
It is also used to mean the interconnection of several local area
networks by bridging them with backbone lines

A Metropolitan Area Network (MAN) is a large computer network that

spans a metropolitan area or campus. Its geographic scope falls
between a WAN and LAN. MANs provide Internet connectivity for
LANs in a metropolitan region, and connect them to wider area
networks like the Internet.

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Network Topologies
Network Topology Maps of how the physical or logical paths of network devices connect. The three major
topologies are star, ring, and bus.

Star Topology When a network is wired as a star, every device has a point-to-point link with a central host
computer/server. A star network is particularly appropriate for organization that requires a centralized database or a
centralized processing facility. Most common Ethernet network topology where each device connects to a central hub
or switch.

Hub A device used with the Universal Serial Bus or in a star network topology that allows multiple device
connections.
Switch In star networks, a Layer 2 central controlling device. A switch looks at each data frame as it comes through
each port.
Ring Topology A ring network (loop network) permits direct communication between devices and with the central
computer. In this type of networks devices are connected point to point forming a circle. It is a local area network in
which devices are connected in a closed loop or ring

Network that is physically wired like a star network but, logically in a ring; passes control from one device to the next in
a continuous fashion using a special data packet called a token. Used in Token Ring networks.

Bus Topology Network wherein all devices connect to a single cable. If the cable fails, the network is down.

Mesh Topology Network where all devices connect to each other by cabling to provide link redundancy for
maximum fault tolerance. Most likely in WANs.

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Network Topologies
Star Network
.

Ring Network

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 Hub/Switch

Network Topologies

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 Star Topology

Network Topologies

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 Logical Ring Topology

Network Topologies

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 Bus Topology

Network Topologies

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Network Topologies

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