INFORMATION MANAGEMENT

DATA The word Data is plural of Datum. It is defined as raw facts or observations, typically about physical phenomenon or business transactions. Data is the raw material form which useful information is derived. Data is the collection of facts, which is unorganized but can be organized into useful information. Ex – Dates, Weights, Prices, Costs, No of items sold….

INFORMATION Data which has been converted into a useful and meaningful form is ‘information’. Information can be defined as data that has been converted into a meaningful and useful context for specific end users. Data is not useful until subjected to a “value added” process where Aggregated, manipulated, organized Content is analyzed and evaluated Information and Data Placed in a proper content for a human user.

CHARACTERISTICS OF INFORMATION There are four characteristics of information Quality Timeliness Completeness Relevance Information which accurately represents reality Quality of information makes information system function properly. If the management comes to know that the information system is having errors in it, they will avoid using it and its value to the decision making process is severely limited. Measure Form utility – Closer the form matches the decision makers requirement Place utility – accessed easily, information has greater Time utility – information available when needed Possession utility – possessor of information influences its value by controlling its flow to others in the organization.

Timeliness Information is available when it is needed. Most managers function in a dynamic environment of change, demanding updated and current information. Computerized information system have the ability to gather, sort, analyze, store, retrieve and transmit large amount of information in a very short period of time. Completeness Information is the extent to which it is all there. Information that is complete means. Information that covers key issues and is sufficient to support the decision-making situation at hand without critical omission.

Relevance Information relevance refers to the extent to which information is appropriate for the decision-making situation facing the manager. Extraneous information distracts the decision-making from the assigned task and information overload frustrated the decision maker and impairs the decision-making processes.

Intelligence Is a set of processes and underlying technology solutions that enable organizations to understand, organize and manage all sort of data types. Eg.General files database and e-mails. Artificial Intelligence Technologies in Business AI is a field of science and technology based on disciplines such as computer science, biology, psychology, linguistics, mathematics and engineering. Major thrust of artificial intelligence is the development of computer function normally associated with human intelligence – reasoning, learning and problem solving.

Domains of Artificial Intelligence cognitive science application [expert systems, learning systems, fuzzy logic systems, generic algorithms, Neural Networks,Intelligent Agents] Robotics Applications [Visual perception,Tactility,Dexterity,locomotion,Navigation] Natural Interface Application [Natural langauage,speech Recognition,Multisensory,Interface,Virtual Reality]

Information System A management Information system is used to transform data into useful information as needed to support managerial decision making with structured decision (formally called programmed decisions) which are those that are based on predictable patterns of activity.(McLeod, 1986) The typical MIS is based on four major components Data gathering Data entry Data transformation Information utilization

Components of information system Information system can be any organized combination of people, hardware, software, communication networks and data resources that collects, transforms and disseminates information in an organization. People – people are the essential ingredient for the successful operation of all information systems. Hardware – the concepts of hardware includes all physical devices and materials used in information processing. Software – software resources include all sets of information processing instructions. Data – data are more the raw material of information systems. Network – the concept of network resources emphasizes that communication technologies and networks are a fundamental resources components of all information system.

Major activities of information system

Input of data resource Data about business transactions and other events must be captured and prepared for processing by the input activity. Input typically takes the form of data entry activities such as recording and editing. End user typically record data about transactions on some type of physical medium such as paper form, or enter it directly into a computer system. This usually includes a variety of editing activities to ensure that they have recorded data correctly. Once entered, data may be transferred onto a machine-readable medium such as a magnetic disk until needed for processing. For example, data about sales transactions .

Processing of data into information Data is typically subjected to processing activities such as calculating, comparing, sorting, classifying, and summarizing. These activities organize, analyze and manipulate data, thus converting them into information for end users. The quality of any data stored in an information system must also be maintained by a continual process of correcting and updating activities. For example, data received about a purchase can be (1) added to a running total of sales results, (2) compared to a standard to determine eligibility for a sales discount, (3) classified into product categories (such as food and nonfood items), (4) used to update sales records.

Output of information products: Information in various forms is transmitted to end-users and made available to them in the output activity. The goal of information systems is the production of appropriate information products for end users. Common information products messages, reports, forms, and graphic images, which may be provided by video displays, audio responses, paper products, and multimedia. For example, a sales manager may view a video display to check on the performance of a salesperson, accept a computer-produced voice message by telephone, and receive a printout of monthly sales results.

Storage of data resource Storage is a basic system component of information systems. Storage is the information system activity in which data and information are retained in an organized manner for later use. For example, just as written text material is organized into words, sentences, paragraphs, and documents; stored data is commonly organized into fields, records, files, and database. This facilitates its later use in processing or its retrieval as output when needed by users of a system.

Control of system performance An important information system activity is the control of its performance. An information system should produce feedback about its input, processing, output, and the system is meeting established performance standards. Then appropriate system activities must be adjusted so that proper information products are produced for end users. For example, a manager may discover that subtotals of sales amounts in a sales report do not add up to total sales .This might mean that data entry or processing procedures need to be corrected.

Information technology Information technology is the acquisition, processing and dissemination of vocal, pictorial, textual and numerical information by a microelectronic – based combination of computing and telecommunication. The main contribution of information technology Provides new ways to design organizations and new organizational structures. Creates new relationship between customers and suppliers who electronically link themselves together Changes the basis of competition and industry structure Contributes to the productivity and flexibility of knowledge workers. Provides developing countries with opportunities to compete with the industrialized nations.

Fundamental roles of Information system in business

Information system – Evolution Until the 1960s, the roles of most information systems was simple: transaction processing, record- keeping, accounting. The new role added, as the concept of MIS was concerned. By the 1970s it was evident that the pre specified information products produced by such management information systems were not adequately meeting many of the decision-making needs of management. So the concept of decision support system was born.

In the 1980s, several new roles for information system required First – the rapid development of application software packages and telecommunication networks Second – the evident that most top corporate executives did not directly use either the reports of management information systems or the capabilities of decision support system, so the concept of Executive information system. (EIS) was developed. Third – breakthrough occurred in the development and application of artificial intelligence techniques to business information system. Expert system (ES) and other knowledge based system also forged a new role for information system.

In 1990’s – concept of a strategic role for information systems, sometimes called strategic information system (SIS). TYPES OF INFORMATION SYSTEMS An information system is a collection of hardware, software, data, people and procedures that are designed to generate information that supports the day-to-day, short-range, and long-range activities of users in an organization. Information systems generally are classified into five categories: office information systems, transaction processing systems, management information systems, decision support systems, and expert systems.

1. Office Information Systems An office information system, also described as office automation; employees perform tasks electronically using computers and other electronic devices, instead of manually. The software which an office information system uses to support these activities include spreadsheets, databases, e-mail, Web browsers, Web page

2.Transaction Processing Systems A transaction processing system (TPS) is an information system that captures and processes data generated during an organization’s day-to-day transactions. A transaction is a business activity such as a deposit, payment, order or reservation. 3.Management Information Systems Is an information system that generates accurate, timely and organized information so managers and other users can make decisions, solve problems, supervise activities, and track progress. Because it generates reports on a regular basis, a management information system sometimes is called a management reporting system.

4.Decision Support Systems A Decision Support System (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization (usually mid and higher management) and help to make decisions, which may be rapidly changing and not easily specified in advance . Decision support systems can be either fully computerized, human or a combination of both.

5.Executive information system (EIS) An executive information system (EIS) is a type of management information system that facilitates and supports senior executive information and decision-making needs. It provides easy access to internal and external information relevant to organizational goals. It is commonly considered a specialized form of decision support system (DSS).

Software system life cycle (SSLC) Software requirement specification Software Design Specification Software testing Software implementation Software maintenance and support

waterfall methodologies rapid application development Generic Software Models Today systems are so large and complex that teams of architects, analysts, developers, testers, and users must work together to create the millions of lines of custom written code that drives the system. There are four methodologies Generic software models waterfall methodologies Extreme Programming Agile Methodologies rapid application development

Waterfall Methodology Is a sequential, activity based process. One of the oldest methodology and been around 30 years. Planning  Analysis Design Development Testing Implementation Maintenance

Rapid application development methodology Extensive user involvement in the rapid and evolutionary construction of working prototyping of a system to accelerate the system development process. Focus initially on creating a prototyping (working model) that looks and acts like the desired system. Actively involves system users in design, analysis and development. Extreme programming methodology (XP) Breaks projects into tiny processes or phase and development can’t continuous until current phase incomplete. High-risk projects and those with vague or dynamical requirements are perfect for XP and they will experience greater success and developer productivity in comparison with other software development methodologies. The XP team includes not only developers - managers and customers are all part of the XP team working together closely and dedicated to delivering quality software. Agile Methodology In software application development, agile software development (ASD) is a methodology for the creative process that anticipates the need for flexibility and applies a level of pragmatism into the delivery of the finished product. A form of XP, aims for customer satisfaction through early and continuous delivery of useful software components. Agile means what it sounds like – fast and efficient, small and nimble, lowest cost.

Functional Information System Functional Information System is based on the various business functions such as Production,  Marketing, Finance and Personnel etc. These departments or functions are known as functional areas of business. Each functional area requires applications to perform all information processing related to the function. Financial Information system Financial management Information system that tracks financial events and summarizes information . supports adequate management reporting, policy decisions, and preparation of auditable financial statements Should be designed with good relationships between software, hardware, personnel, procedures, controls and data Generally, financial management information system refers to automating financial operations.

An ideal or well-designed system should: The Ideal FMIS Systems An ideal or well-designed system should: Collect accurate, timely, complete, reliable, consistent information. Provide adequate management reporting Support budget preparation and execution Facilitate financial statement preparation Provide complete audit trail to facilitate audits.

FMIS Building Blocks An FMIS will consist of several elements with different functions. In the description that follows, the term “module” will imply that the system is a sub-element in a FMIS. The core of an FMIS could be expected to include the following modules and systems: General ledger. Budgetary accounting. Accounts payable. Accounts receivable The noncore or other modules are, Payroll system Budget development Asset module.

Advantages of FMIS There are many advantages of implementing an FMIS. A few of them are listed below: Integrated financial information Flexibility of reporting and additional control over expenditure Less administration required within the business Marketing Information System Main goal of the marketing function in any organization is to satisfy the needs and wants of its customer. Marketing personnel engage in activities such as planning and developing new services, advertising, promoting, selling, storing and distributing the goods and services; providing financing and credit to customer; and conducting market research. System includes such as sales systems, advertising systems, sales promotion systems, warehousing system and pricing system.

Production information system Production information system support decision making for the operations allocation, and planning of production resources. Purpose of the production system is to acquire raw materials and purchased parts, test the materials for quality, acquire the appropriate human resource, workspace and equipment, schedule the materials, human resource, space and equipment, fabricate the product or services, test the product or services output and monitor and control the use and costs of the resource involved.

Human Resource Information system Human resource department are responsible for many factors in a industry .They are recruiting, assessment, selection, placement, training, performance appraisal, compensation and benefits management promotion, termination, occupational health, safety, employee services, compliance with legal constraints, helping managers with human resource problems and providing top management with information for strategic planning. HRIS – includes system that help managers keep track of the organization ‘s position and employees, conduct performance evaluation, provide alternative or flexible scheduling, recruit new employees, place employees, train employees, reduce employees, terminate employees, provide employees benefits and provide reports to government agencies.

Decision Support System (DSS) Decision Support Systems (DSS) are a specific class of computerized information system that supports business and organizational decision-making activities. A properly designed Decision Support System is an interactive software-based system intended to help decision makers compile useful information from raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions.

Important Features of DSS Support for all phases of the decision- making process Support for Communication among decision makers Availability of Memory Aids Availability of control Aids for decision making Components of a Decision Support Data Components of a decision support system Building a data Warehouse Data Mining and Intelligence Agents Model Components The Development of Decision Support System planning Application Research Analysis Design Construction Testing Evaluation Training Operation Maintenance Adaption

Benefits of Decision Support System The ability to examine more alternative. The ability to achieve a better understanding to the business. The ability to save time and costs. The ability to provide timely information for control of ongoing operation. Risks of Decision Support System Lack of Quality assurance Lack of data security Failure to specify correct requirement. Failure to understand design alternatives.

Executive Information System (EIS) EIS are information system that combines many of the feature of management information system and decision support system. When it was developed, their focus on meeting the strategic information needs of top management. First goal of EIS was to provide top executive with immediate and easy access to information about a firms critical success factors (CSF’s) Ex – Result analysis between e-commerce and traditional system of retail store. EIS are becoming so widely used by managers, analyst and other knowledge workers that they are sometimes humorously called “Everyone Information System”. EIS ------- More features such as web browsing, e mail, group ware tools called ESS (Executive Support System)

Features of EIS Information is presented in focus tailored to the preference of executives using the system. Ex – Most EIS stress the use of a graphical user interface (GUI) and graphics design that can be customized to the information preference of executives using EIS. Ex – EIS – used by a leading oil company Conoco MIS, DSS, EIS tools for providing the information and modeling managers need to support their decision making.

Enterprise Information Portals (EIP) Web based interface and integration of MIS, DSS, EIS and other technologies. Ex – Internal application include – email, project web sites, discussion on groups. External application includes – industry, financial and other internet services Benefits of EIP includes providing more specific and selective information to business users, providing easy access to key corporate intranet websites resources, delivering industry and company data for selected customers, suppliers or business partners. The components of EIP identify it as a web enabled decision support system that can be personalized for executives, managers, employees, suppliers, customers and other business partners.

Knowledge Management System (KMS) The use of IT to help gather, organize and share business knowledge within an organization. In many organization, hypermedia database at corporate intranet websites have become the knowledge base for storage and dissemination of business knowledge. For many companies enterprise information portals, are the entry to corporate intranets that save as their knowledge management systems. So such portal are called Enterprise Knowledge Portal.

Knowledge Management System Architecture Identification of Knowledge Knowledge Organization Knowledge Delivery Approaches to develop Knowledge Management system Moving to knowledge from data is a conventional approach to KM during knowledge as Justin care requirement but untested. KMS becomes successful in the organization when developers and users recognize and appreciate the business in the system implementation.

Geographic information systems (GIS) 1992, hurricane Andrews attacked the east coast of US leaving devastation (Damage) throughout several states in its wake. GIS is a decision support system designed specifically to analyze spatial information. Spatial information is any information that can be shown in map from such as roads, the distribution of the bald eagle population, server systems or the path of a hurricane. GIS is software to analysis information, generate business intelligence, and make decision. GIS is a powerful combination of database and graphics technology. There is virtually no limit to the sort of information you can plot with a GIS, including the placements of roads, the course of rivers, income levels, health conditions, area of high or low crime.