Information system

Information Systems
Confidential to SoftTech Engineers Pvt. Ltd. Pune

What is Information System
• An information system is any combination of information
technology and people's activities that support operations,
management and decision making.
(interaction between people, processes, data and technology)
• An Information System can be viewed as a work system where all
activities are devoted to different types of digital processing.

Components of Information System
An information system depends on the resources of:
• people (end users and IS specialists),
• hardware (machines and media),
• software (programs and procedures),
• data (data and knowledge basis), and
• networks (communications media and network support)
to perform input, processing, output, storage, and control activities
that convert data resources into information products.

Backup data
Restart job
Virus scan
Hardware Software
People Procedures
Data

• People resources include end users and IS specialists, hardware
resources consist of machines and media, software resources include
both programs and procedures, data resources can include data and
knowledge bases, and network resources include communications
media and networks.
• Data resources are transformed by information processing activities
into a variety of information products for end users.
• Information processing consists of input, processing, output,
storage, and control activities.

Information System Resources:
(i)People Resources:
People are required for the operation of all information systems.
These people resources include end users and IS specialists.
End users (also called users or clients) are people who use an
information system or the information it produces. They can be
accountants, salespersons, engineers, clerks, customers, or
managers. Most of us are information system end users.

IS Specialists are people who develop and operate information
systems. They include systems analysts, programmers, computer
operators, and other managerial technical, and clerical IS personnel.
Briefly, systems analysts design information systems based on the
information requirements of end uses, programmers prepare
computer programs based on the specifications of systems analysts,
and computer operators operate large computer systems.

ii) Hardware Resources:
The concept of Hardware resources includes all physical devices and
materials used in information processing. Specially, it includes not
only machines, such as computers and other equipment, but also all
data media, that is, all tangible objects on which data is recorded,
from sheets of paper to magnetic disks.

Example of hardware in computer-based information systems are:
Computer systems, which consist of central processing units
containing microprocessors, and variety of interconnected peripheral
devices. Examples are microcomputer systems, midrange computer
systems, and large mainframe computer systems.
Computer peripherals, which are devices such as a keyboard or
electronic mouse for input of data and commands, a video screen or
printer for output of information, and magnetic or optical disks for
storage of data resources.

iii) Software Resources:
The concept of Software Resources includes all sets of information
processing instructions. This generic concept of software includes not
only the sets of operating instructions called programs, which direct
and control computer hardware, but also the sets of information
processing instructions needed by people, called procedures.

The following are the examples of software resources:
System Software, such as an operating system program, which con
controls and supports the operations of a computer system.
Application Software, which are programs that direct processing for
a particular use of computers by end users. Examples are a sales
analysis program, a payroll program, and a work processing program.
Procedures, which are operating instructions for the people who will
use an information system. Examples are instructions for filling out a
paper form or using a software package.

(iv) Data Resources:
• Traditional alphanumeric data, composed of numbers and
alphabetical and other characters that describe business transactions
and other events and entities.
• Text data, consisting of sentences and paragraphs used in written
communications;
• image data, such as graphic shapes and figures; and
• Audio-visual data, the human voice and other sounds, are also
important forms of data

The data resources of information systems are typically organized
into:
• Database that hold processed and organized data.
• Knowledge bases that hold knowledge in variety of forms such as
facts, rules, and case examples about successful business practices.

(v) Network Resources:
Telecommunications networks like the Internet, intranets, and
extranets have become essential to the successful operations of all
types of organizations and their computer-based information
systems. Telecommunications networks consist of computers,
communications processors, and other devices interconnected by
communications media and controlled by communications software.
The concept of Network resources emphasizes that communications
networks are a fundamental resource component of all information
systems.

Types of Information Systems
• Transaction processing systems,
• Management information systems
• Decision support system

Transaction Processing System:
• The information system that supports various transactional tasks
is called ‘Transaction Processing System’.
• A TPS supports the monitoring, collection, storage and processing
of the organization’s basic transactions. It also provides the input
data for many other applications.
•Example, Organizations perform routine, repetitive tasks. For
example employees are paid at regular intervals, customers place
purchase orders and are billed and expenses are monitored and
compared to budgets

Management Information System:
• These systems access, organize, summarize and display
information for supporting routine decision making in the
functional areas.
• A MIS provides reports about topics like operational efficiency,
effectiveness and productivity. It prepares these reports by
extracting information from the corporate database and processing
it according to the needs of the user.
• MISs’ are used for monitoring, planning and control. They also
enable managers to detect possible problems in their early stages.

Decision Support System:
• Decision support system is used to provide computerized support
for complex, non-routine decisions.

Why is MIS Important?
• MIS affects all areas of business
– Manufacturing
– Accounting & Finance
– Human resources
– Marketing
– Top management
• Performance evaluations—expectations

Why is MIS Important?
MIS Provides Right Information
– To the right person
– At the right place
– At the right time
– In the right form
– At the right cost

MIS
The sub-components of MIS are
• System emphasizing a fair degree of integration and a holistic
view.
• Information stressing on processed data in the context in which it
is used by end users;
• Management focusing on the ultimate use of such information
systems for managerial decision making.

Concept of MIS

Why MIS? It’s Role
Increased Business & Management Complexities

Increased Business Complexities
– Technological Revolution
– Research & Development
– Explosion of Information

Increased Management Complexities
– Management Science Technologies
– Decision-making
– Onset of Computers

Functional Uses of MIS
Enhance :
• Quality of operations
• Quality of services
Achievement :
• Efficiency
• Transparency
• Speedy Decision making

Strategic Uses of MIS
• Precise development of strategies, planning, forecasting and
monitoring
• Problem solving
• Decision-making
• Separate work from location

Characteristics of MIS

Typical MIS Systems
Classification through functional disciplines

Organisational Systems & MIS
Classification of Management

1
2 3
Making Decisions
• Methodology v Ad Hoc Decisions
• Decision Process
– Collect Data
– Identify Problems & Opportunities
– Make Choices

Traditional Management
CEO
VP
Finance
VP
Marketing
VP
Accounting
VP
HRM
VP
MIS
Layers of middle managers
Customers
Commands
Analyze data
Condensed reports
Collect
data

Decentralization Management Team
CEO
Finance
Team
Marketing
Team
Accounting
Team
HRM
Team
Sales
Team
Franchise
Strategy
Methodology/Rules
Customers
Corporate
Database
&
Network
VP
Fin
VP
Mrkt
VP
Acct
VP
HRM
VP
MIS

Decision Levels
Decision
Level
Description Example Type of Information
Strategic Competitive advantage,
become a market leader.
Long-term outlook.
New product that
will change the
industry.
External events, rivals,
sales, costs quality,
trends.
Tactical Improving operations
without restructuring the
company.
New tools to cut
costs or improve
efficiency.
Expenses, schedules,
sales, models,
forecasts.
Operations Day-to-day actions to
keep the company
functioning.
Scheduling
employees,
ordering supplies.
Transactions,
accounting, human
resource management,
inventory.

right information in right time at right level
Operational Level – accuracy & timeliness of information collection
and dissemination is important.
Tactical & Strategic Level – relevance is important.
» Efficiency at Operational level
» Effectiveness at tactical & strategic level

Mapping organisational level and structure into the design of
any MIS is very important for its successful implementation.

MIS Design
A collection of components that work together to realize some
objective forms a system.
Main components of a system are:
Input OutputProcessing

MIS Design
System Life Cycle
• Organisational process of developing and maintaining systems.
• Helps to establish a system project plan.

MIS Design
Phases of System Design Life Cycle

MIS Design
System Study
• problem identification and project initiation
• background analysis
• inference or findings
Feasibility Study
• Workability
• Meeting user’s requirements
• Effective use of resources
• Cost effectiveness.

MIS Design
System Analysis
• Specification of the new system
• Functional hierarchy
• Identify Data items

MIS Design
System Design
• preliminary or general design
• Structure or detailed design
Tools and techniques used for designing:
– Flowchart
– Data flow diagram (DFDs)
– Data dictionary
– Structured English
– Decision table
– Decision tree

MIS Design
Coding
• Coding the new system into computer programming language.
• Defined procedures transformed into control specifications
• Programming phase – computer instructions.

MIS Design
Testing
A test run of the system
– Unit testing
– System testing
– Black box testing
– White box testing

MIS Design
Implementation
– theory is turned into practice
– Parallel run
– Pilot run
– User training

MIS Design
Maintenance
The review of the system is done for:
• knowing the required changes or the additional requirements
• studying the performance
If a major change to a system is needed, a new project is set up to
carry out the change. The new project will then proceed through
all the above life cycle phases.

Information System & Quality
ATMs
Computerised Railway Bookings
Telephone Network
We do not expect them to fail!

“Quality indicates the degree of excellence of a product or service”
• Software Quality is the ability of a Software to be fit for its
purpose.

Quality Factors
– Reliability
– Correctness
– Maintainability
– Security
– Reusability
– Portability
– User-friendliness

Information Security & Control
Information Breach
– Unauthorised reading of data
– Unauthorised modification of data
– Unauthorised destruction of data

Why break I.T. System Security?
– Revenge
– Money
– Notoriety
– The challenge of doing “IT”

Security Threats
» The External Threats
» The Internal Threats

Security Threats
The External Threats
» Organisation’s connection to Internet

Security Threats
The Internal Threats
– Passwords
– User Termination
– Special Privilege IDs
– Access Reviews
– Authorisation levels
– User information
– Routine maintenance
– Software updates
– Virus checking / checks
– Physical considerations
– Audit Trails

We may never be able to eliminate all the security risks.
But we can make it very very hard for them to do so.

Information system

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