14 information technology and systems

8/2/2019 14 Information Technology and Systems

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Management Information Systems Unit 14

Sikkim Manipal University229

Unit 14 Information Technology and Systems

Structure

14.1 Introduction

14.2 Technology Scope Supporting Information Systems and MIS

14.3 Data Processing

14.4 Transaction Processing

14.5 Application Processing

14.6 Information System Processing

14.7 TQM of Information System

14.8 Human Factors and User Interface

14.9 Real Time Systems and Good Design

14.10 Evaluation and Feasibility of IT Solutions

14.11 Summary

Terminal Questions

Answer to SAQs and TQs

14.1 Introduction

The development of modern information system is a complex process. It needs knowledge know-

how, skills and technology in almost all the disciplines. The developer, the designer and the user

must be knowledgeable in their respective area of functions and responsibilities. As information

systems are being demanded for on-line real time usage in business management, its development

requires thorough understanding of the business and the manner in which it is executed. Further,

different technologies, other than the Information Technology, are used in the business for providing

input to the information systems. As the business processes are getting automated, the information


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systems are undergoing cultural changes making them more sensitive to the business needs. It

demands flexibility in design and reliability in its use.

This unit starts off with the discussion about the scope of technology in supporting Information

technology and MIS. Various types of data processing and transaction that can be done in a MIS

system are discussed. The importance and the issues pertaining to the role played by the human

factor in the Information System design and different ways of evaluating an MIS system and their

necessity for an organization are dealt with.

Learning Objectives

After studying this unit, you will be able to:

Explain the scope of technology in supporting Information Technology and MIS.

Describe Processing of Data, Transaction, Application and Information for MIS.

Examine the role and importance of human factors in IS Design.

Explain the relevance of IT to MIS Design.

Enumerate the steps in a quality assurance programme.

14.2 Technology Scope Supporting Information Systems and MIS

In the seventies, the information systems were of a stand-alone type outside the mainstream of the

business. In the eighties, the information systems were looked upon as a resource for information to

support the decision - making. Still, its use was off-line and was largely dependent on the user/

manager/decision-maker in the organisation. In the nineties, the information technology developed

multifold and the business became global, strategic and competitive, with the business focus shifting

from supply management to customer service management. In short, the nature, type and the quality

of information system has undergone an overwhelming change.

The several systems operating in isolation as stand-alone legacy systems are rejected in favour of

the enterprise-wide integrated information systems. The off-line batch processing of data bringing out

reports at the end of the period has been rejected in favour of the on-line real time systems for an

access to know the current status of the business.

The business management process has changed from function management to process

management. The organisation culture also changed from centralised, bureaucratic, authority


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structure work-group culture where members of the work-groups were trained and empowered to

make decisions. This called upon the information system availability at the workplace.

The nature of business is such that a lot of initiative of the user is expected to decide his information

needs at a given point of time. Due to this, a change in the architecture of information systems is

required, whereby the user requirements are made independent of data giving him the freedom to

manipulate the data using his own methods. With such complex requirement, all around information

systems development is becoming an art where a lot of technology inputs are required. To be a

successful designer of information systems, one needs to have core understanding of different kinds

of processing.

Computers are everywhere. A computer is an electronic device that processes data, converting it into

information that is useful to people. Any computer regardless of its type is controlled by programmed

instructions, which give the machine a purpose and tell it what to do.

Computers which are everywhere around are digital computers. Some computers handle the needs

of many users at the same time. The systems used by businesses and schools are very powerful and

are found at the centre of the organizations network.

Some of the types of computer systems used in organization to support the MIS and the support

functions are -

a) Network servers

In most of the organizations, individuals use their own desktop computers, which are connected to

one or more centralized computers called network servers. A network server is a very powerful

computer with special software and equipment that enable it to function as the primary computer in

the network.

Large organizations may have hundreds of individual servers working at the center of their network.

Network servers working in groups are called clusters or server farms. They may be mounted in large

racks or reduced to small units called blades which can be slid in and out of a case. In these large

networks, different groups of servers may be used for different purposes like handling printing tasks,

to perform word-processing or database management jobs, enabling internet access and so on.

Other than these functions, server can store information and programs for many people to use.


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b) Mainframe computers

Mainframe computers are used in large organizations such as insurance companies and banks,

where many people need to use the same data frequently. Each user accesses the mainframe

resources through a device called a terminal. There are two kinds of terminals. A dumb terminal does

not process or store data, but is simply an input/output device. An intelligent terminal can process

data, but does not have any storage.

Mainframes are large powerful systems. The largest mainframes can handle the processing needs of

thousands of users at any given time, but they lack flexibility. Most mainframes are designed for a

particular task. One example of mainframes is the airlines website which is used to reserve a seat

on a flight.

c) Minicomputers

They are of small size when compared to other computers. Usually minicomputers are designed for

individual user, but can also be used by hundreds of users at the same time.

d) Supercomputers

They are very powerful computers and physically they are the largest. They can process large

amounts of data and can perform more than one trillion calculations per second. They are made up

of thousands of processors. They are used to solve extremely complex problems like mapping of

human genome, forecasting weather an modeling complex processes like nuclear fission.

14.3 Data Processing

In any information system application, the method generally followed is to design modular or

hierarchical steps of processing leading to an output in a report form or information having certain

value specific or perceivedas seen by the user. The steps involved are data processing,

transaction processing, application processing and system processing.

Data is the smallest atomic entity in the information system which is basic to build the information

system. The character of data decides the quality of information it offers to the user. If the data istaken care of properly, its usage will ensure quality output. Hence, in any information system

significant care is taken in building the data as a first level input to the system. The data is built

through data design and modelling process which provides specification and character to the data.


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These specifications and characters are used throughout the information system of a variety of

applications. Data processing is handling raw data in a systematic manner to confirm to the data

quality standards as determined by the designer of the information system.

A date with its associated context derives its meaning for the application in information processing.

Such data specification determination exercise leads the data design further.

The specification of data means determining its manner of presentation (DD-MM-YY), its value,

specific or in limits, its validity whenever possible. The character is numeric or alphabetical or both.

Unless the data is defined in this manner, it cannot be used effectively. Hence to summarise, data

processing means, each entity in information processing system is processed to confirm its

specification, character and validity.

Hence, data processing means following steps or stages to be implemented before the data is

accepted in the system for usage.

Confirming the character, structure and presentation vis--vis data design.

Checking the value of the data vis--vis data value specification such as single specific value,

range of value, and limit value ranges.

If a non-conformance is seen, point out the error and seek corrective response before the

processing control shifts to a new field.

14.4 Transaction Processing

After the data has been processed, the next step is to process transaction itself on certain lines. A

transaction is processed with reference to business rules, i.e., a transaction is scrutinised for

conformance to the rules, policy or guidelines before it is taken up for further processing. The rules

may be directly related to the transaction or it may have some relation and association with other

transactions. In case the transaction does not conform to the set of specified conditions governed by

the rules, the error is displayed for user to take corrective action.

The transaction is processed for adherence to business rules, correctness and consistency of data

values and for validity of transaction. It should be noted that these three aspects are applicable to all

the transactions across the business management functions.

One can add more business rules if necessary. However, if the receipt transaction is to be pro-


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cessed, it will first be processed for confirmation and conformance of these rules before it is taken to

the next stage. The rules are checked at the entry level processing after the individual data fields are

checked. If any one rule is not satisfied, the transaction is kept under hold for correction. If the

correction is not possible, the receipt transaction is rejected.

The persons designing transaction processing system must have or acquire the knowledge of

business rules for introducing them in the transaction processing system. In the absence of this

knowledge or by not incorporating them, the transaction would be accepted for further usage violat-

ing the business rules.

14.5 Application Processing

After data and transaction processing, the data finalised in these stages gets posted on the affected

files. Application processing is designed to process more than one type of transactions to bring out

the specific business results in one or more business functions. This processing is carried out once

the transaction is processed for its validity.

Let us take an inventory application which requires the receipt and issue transactions duly validated

for inventory processing. When these two transactions are processed, the inventory is updated for

receipts and issues giving the net balance at the end of the processing for each item in the inventory.

The inventory application is designed to bring out inventory status affected by material transactions.

In application processing, certain terminal files get updated. In the above mentioned case, the stock

file will be updated for changes in the stock.

The scope of application processing can be made diverse by incorporating different transactions from

the same application area or associated areas. For example, the inventory and purchase application

can be processed together for vendor evaluation, item valuation and payable accounting. The scope

of the application can be made diverse, if it is foreseen at the design stage. At this stage necessary

inputs are provided in the transaction which can be used at a later date in the other applications.

Self Assessment Questions 1

1. In any information system application, the steps involved are data processing, .,

application processing and...

2. In any information system, significant care is taken in .


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3. .is handling raw data in a systematic manner to confirm to the data quality standards

as determined by the designer of the information system.

4. After the data has been processed, the next step is to .

14.6 Information System Processing

The system processing is at a higher level, over the application processing. The system is defined as

a product made up of several applications set in orderly manner to produce a higher level information

output different than the output of the application processing.

Applications which are used for system processing are the finance transaction accounting, the fixed

asset processing, the receivables and payables processing, the sales and purchase accounting. On

the platform of these applications, the system is processed for the analysis of number of aspects ofthe finance management. It provides an insight into the funds flow, the source: and the uses of funds,

profitability and productivity of the business. It throws light on growth, (pas and future) through the

analysis of various trends. The system outputs are generally required by the top management

responsible for the strategic management of the business.

However, these functions are executed in different manner on account of the following factors:

Nature of business (trading or manufacturing),

The type of business (product or service),

The complexity of business (multiple locations, divisions, products, etc.)

Management style (autocratic, participative),

Decision making (centralised, decentralised and empowered),

Quality of the organisation and the people (learning and positive proactive work culture).

Hence, at the lower level transaction processing and application processing may look similar but

when it comes to the system design, it is influenced by the factors mentioned above. In all the

business organisations, the basic application deck may be the same but its Input-Process-Output

would be different.

Using the system engineering methodologies, when all the information systems in the organisation

are covered, a stage is reached where the systems are integrated for a still higher level information

output required by all the levels of the management. The systems so designed through an integration

process are called Enterprise Resource Planning (ERP) systems or as Enterprise Management


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System. These systems help in managing the business as a whole by way of functions and process

management as also by providing support through the DSS. It is a total solution to meet the business

information needs, irrespective of the function, process, location, for all the levels of management

and people.

14.7 TQM of Information System

The objective of the Total Quality Management (TQM) in the information systems design is to

assure the quality of information. This is done by ensuring, verifying, and maintaining software

integrity through an appropriate methodology choice amongst the technology, design and

architecture. It institutes appropriate procedures with checks and controls in all the processes of

information systems development. It ensures that the scope and the objective of the system, choiceof the design architecture and development methodology and further quality ensuring the processes

and planned implementation methodologies are correctly chosen.

The quality of information is governed by the quality of the information processing system design.

The perception of good quality is that of a customer or a user of the information system and not that

of the conceiver, the planner or the designer of the information system.

The quality of the information and the systems which generate that information will be rated high

provided it assures:

A precise and an accurate information,

A high level response in an interactive processing

User friendly operations,

Reliability of information, and

An ease of maintenance.

The single most important measure of quality assurance is the level of user satisfaction it attains. The

user satisfaction is highest if it meets information needs on a continuing basis in a dynamic business

environment.

In the process of achieving user satisfaction, the information system must be conceived with

business focus and orientation. It must address the total scope of the business with specific attention

in the areas of core competence and mission critical applications. The choice of the Information


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Technology strategy should be such that it supports the business strategy implementation to achieve

business goals and mission. Also that it meets the business process needs of effective execution and

matches fairly well with the management ability, the knowledge and skills of the people in the

organisation.

The emerging technologies are Internet/Intranet, EDI and E-Mail, Groupware for term- based

application, client/server for application processing, multi-media for voice, video, image processing,

imaging systems for image creation, storage mixing knowledge-based (KBS) for expert, artificial

intelligence system and Computer Aided Software Engineering (CASE) for a systematic application

development including I-CASE.

Integration improves the processing time and offers a quick access to the users to the data and

information. Consistency in the usage of standards, tools and technologies reduces the learning time

of the users. The usability of the software component in different manner for different applications

reduces the user training time and finally the reliability of the system assures dependence and

support for all conceivable user end processes.

The TQM approach to the information system development ensures satisfactory level attainment of

these parameters through the implementation of various strategies in the process of development. In

the discussion hereafter we will call the information system software just a 'software'. The software

quality assurance is nothing but what is required which would ensure conformance to the standardsset by the management.

It is observed that the software quality assurance largely depends on testing and quality of testing. In

the TQM software testing strategies are proposed. There are different kinds of testing, viz. Unit

Testing, Integration Testing, Validation Testing and System Testing.

In each of these testing a particular aspect of the software is tested and the quality is assured. In

each of this testing, one or more aspects of the software at that level are verified and validated. In

verification, the correctness of the test object which could be a code, a function, a process and the

procedure etc. is confirmed. In validation the result of the process already verified is checked. If both

are acceptable, quality is assured.

The performance testing is the last of the systems testing where the operational performance of the


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system is tested. Most of the modern systems are on-line and real time systems. Very few systems

perform in the batch mode. In either case, the speed of processing is a key issue. If the speed is

poor, then the system performance is rated as poor. It is important to note that the software will be

rejected on the performance issue even though everything else is acceptable.

14.8 Human Factors and User Interface

The information systems are designed for the users who are human beings. The human beings are

the drivers of the information system to meet their information needs. The use of the information

system is made through an interactive process between the human beings and the system through

which the information system is activated, operated and closed.

Many a times, in spite of the Information System software design being good, the user interfaces are

not properly built causing a discomfort to the users. As it is difficult to consider all the users to build

such an interface, many times the interface is a difficult one to use. Ideally, the human perception,

the human skills and the skill levels, the behavioural profiles and the activities expected in the

interactive processes are the factors of design of the user interface.

The use of the information system is accomplished also through a visual mode. The user reacts to

the printed reports, the graphical presentations or the displays on the screen. The reaction is through

the visual and the mental responses to these displays or reports through his perception of the infor-

mation conveyed to him through size, shape, colour, format, layout orientation and such other

characteristics of the display. The human response differs from person to person owing to the

varying human perception. Hence, the user interface should try to minimise the distortions which may

occur when the displays are made.

The quick human response neutralising the human perception difference is the requirement of the

user interface. When most of the users belonging to the same class of human capabilities find the

interface easy to operate and it results in the same human response, then the user interface is

friendly. The system then is called a user-friendly system.

14.9 Real Time Systems and Good Design

All real time systems are triggered by the response to the external events. A real time system also

integrates the hardware, the software, the user and the database to achieve certain results with


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acceptable performance.

The real time systems have the following design components:

Data acquisition

Measurement, interpretation and evaluation

Decision making and action

Initialisation, operation and control.

The real time systems are developed for diverse applications in the process control, process

automation, medical and scientific research, traffic management, aerospace systems and instru-

mentation. In all these applications, the real time system responds to the external stimuli in a time

which is governed by the external world. Hence, the performance of the real time system depends on

the speed of response it offers to the action.

The entire cycle of acquisition, measurement, evaluation, decision making, action, control and

bringing the system back to the initial condition is highly time sensitive. If this cycle is not performed

in a reasonable time the real time system needs re-look and re-design. In most of the applications,

the real time systems are many and they are organised to obtain certain output. They are dependent

on each other and some of them run in parallel and some in sequence. Some of these work on

priority which is in-built in the total application design.

If the real time systems are analysed in an industrial application or in the business commercial

application, it will be found that their functional requirements are same. They are as follows:

Interface handling with the external world.

Context switching after the measurement,

Prime response time,

Data management,

Resource allocation by priority, and

Task synchronisation and communication.

Lastly, the synchronisation of a number of tasks is to complete a real time activity cycle. In on

example, the vendor evaluation, selection and the number of purchase indents need to be handled i

a synchronised manner such that no process or result waits unduly long for communication t proceed

further. The distributed processing, parallel processing, data transferring and multi-tasking, multi-


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processing strategies are used for tasks synchronisation and communication to keep t\ real time

system in a dynamic mode operating at an optimum performance level.

The real time systems are designed first with a prototype and then rigorously tested through

simulation process to confirm the accuracy in handling the following features:

Triggers and context switching on condition.

Concurrency of the data and processes.

Communication and synchronisation.

Timing constraints attached to the tasks.

Coupling of the processes and actions.

The real time software system has all the aspects of the conventional system design and in addition

it has to handle a new set of requirements arising out of the time feature. The real time software is

either time or event-driven and hence the hardware and software which deals with these parameters

gather a lot of importance in design of the system.

A number of tools are available to handle the system development requirements and they are as

follows:

Business Analysis Tools

These tools help to understand business in terms of facts but they also highlight the critical success

factors and mission critical applications. They narrow down the focus on the critical functions,

processes, products and finally some indication on the information requirement. EIS (Executive

Information Systems), business modelling tools, financial analysis tools, etc. are aids to analyse the

business and to decide future course of action. This course of action decides the scope, content,

emphasis, etc., of the system for the information system designer.

Requirement Analysis Tools

In the requirement analysis, the information needs are established with reference to the decisions

which are often required to make. This is done by mapping information to process and then to inputs.

The search is then made as to how to ensure the inputs to obtain certain information. This is

achieved through mapping inputs to documents to transactions to the users. Then the transactions

are mapped to applications and the use of transaction data in each application is determined.


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While mapping, the user is always involved to confirm the validity of data and its application. In this

process, essentially, you are building database inputs and its multiple usage in a number of

applications. In the requirement analysis data, processes, applications and information are studied

for the system development. At this time attempt is also made to reengineer the process to make it

efficient and effective.

Analysis and Design Tools

The next step after arriving at the requirement is to go in for the analysis and design of the system.

The tools are available in both the areas. These tools help to build a model of the system. The model

depicts the data and process definitions, the data and process flow and the control specifications.

These tools further help in judging the quality of the proposed system.

The advantage of using these tools is that a fair amount of major errors and faults get eliminated in

analysis stage before they are carried to a design stage. Most of the tools provide the SA/SD

capabilities which help in modelling. All these tools provide aid in defining data, processes, modules

and sub-modules in a structured manner. They are the tools for drawing DFDs, E-R diagram and flow

charts showing the data and control flow. All these outputs put together show a system model which

the user validates before it is taken for detail design and coding.

Interface Design Tools

Having finalised the system model, the interface design and development tools are used to create

the menus, buttons, window structures, icons, device drivers and so on. These tools provide the

program libraries which when used help to mange the input devices, validate the inputs, manage the

error conditions and control the process execution. The SA/SD tools, the interface and the

development tools automate the process of the system development to a stage of analysis and

design. All front end tools provide graphical user interface (GUI).

Programming Tools

The next phase, after design is to go for programming. The programming tools are available for the

conventional programming as well as for the object-oriented environments. The conventional coding

tools are compilers, editors, and debuggers. With the development of the Fourth Generation languag-

es, and query systems and code generators, the manner of coding process has undergone a

change. The uses of these languages help the designer to project the system at a higher level of


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abstraction.

Management Process

The information needs of the people in the organisation arise from the process or the style by which

the management 'runs' the business. The quality of management process depends on the people

culture and the culture predominantly affects the decision-making process.

If the decision processes are centralised at a higher level and the delegation of responsibilities and

authorities is not proper, then the information technology choice will weigh heavily in favour of the

distributed data acquisition systems and the centralised high end information processing systems for

decision support.

If the decision processes are decentralised, the information technology choice will weigh in favour of

those systems, where the acquisition, processing, analysis and decision-making will be at distributed

nodal points. The organisation which operates through a number of locations and on the basis of the

Strategic Business Units (SBU), will opt for such an option. In such cases the typical nature of the

concerned SBU will decide the hardware-software platform for the particular unit at the particular

location.

If the decisions in the organisation are of the following types, then the information technology options

would differ. These types are:

(a) The decisions affecting the operations management.(b) The decisions affecting the execution and control of the business.

(c) The strategic business decisions.

In such cases, the information technology choice would be the Front End Processing System

connected to the Back Office Central System. Hotels, Hospitals and large corporate bodies are the

examples, where such a choice is desirable. The front end systems take care of the operations

management, while the back office systems take care of the strategic and the operations planning

and control of the business.

It is, therefore, important to note that the information technology choice considers the management

process, the business organisation, the decision-making style and the mission critical applications as

the important dominating factors. The choice of hardware details and the software mix will be

decided on these factors.


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Business Operations

There are many organisations, where the business operations are typical, voluminous and their

information needs are largely for transaction processing. The typical example is that of the banks

where the banking operations are uniformly standard at almost all branch locations. The transactions

are large in number and need to be processed very fast. The decision-making process is rule-based

governed by the policy and the guidelines issued by the statutory bodies in the banking industry. The

information technology choice in such cases would be the one which satisfies this need the best.

In a Hospital where the transaction processing is very low, the decision-making need is satisfied by

query type application. The information needs here are largely the patient and doctor-oriented. The

information technology choice, in such case, will be of the front end processing system supported by

the back office mini or main frame system with a strong database system which is very powerful in

the data management and the query processing.

Suppose there is an organisation the main business of which is marketing of a variety of products

through a nationwide distribution channel system. The business here operates mainly on satisfying

the needs of the buyers by providing them what they want. Hence, inventory management is the

main business function here. The information technology choice in such case will be the one where

the sales and the receipts data is processed very fast, the inventory related decisions are taken,

stocks are adjusted and the procurement action is also taken quickly. The hardware details in such

case will be decided based on the data volume, the response, the speed and the communication

systems.

There are certain business organisations the operations of which are such that if the organisation

takes care of one or two major functions, most of the information needs and the MIS needs would be

satisfied. Many a times these functions are special and would be demanding special hardware and

software. If the organisation requires a mix of such special hardware and software, then the

information technology choice will be based on the integration possibility of the different information

technology platforms satisfying the organisational information needs.

A number of such possibilities emerge and unless these factors are properly considered, the

information technology choice may go wrong. The information technology choice, therefore, is

strategic to the business performance.


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.The information technology choice is translated into a variety of details based on the above factors.

When all these factors and the associated choices of the information technology details are worked

out, we can say that the configuration of the computer system is designed. Several configurations are

possible and they need to be thoroughly evaluated before selection.

14.10 Evaluation and Feasibility of IT Solutions

As we develop different choices of information technology and its configurations, the decision-making

enters into the evaluation phase for selection. The selection criteria for evaluation would have

different dimensions to be satisfied simultaneously. These dimensions are:

1. Technical

2. Operational3. Financial

Technical Evaluation

Technical evaluation deals with the testing parameters, such as data transfer needs, the response

level, the successful connectivity of the different hardware platforms, and the degree of meeting the

overall system performance standards.

Technical evaluations can be carried out first by studying the literature of the product in detail and

then by conducting brain storming sessions with the vendors' specialists. In this phase a number of

doubts are clarified and the vendors' claims in the areas of the system performance are confirmed.

Technical evaluation can then be planned by scheduling the activities such as the bench marking for

a couple of key parameters.

The benchmarking studies could be at a 'raw' level where you test the vendors' specifications Once

these are confirmed, the specifications are put to test on a live platform, i.e., the technical

specifications are tested by running live data in a particular format. Such an experiment would be i

prototype model of your information processing need related to the mission critical applications You

may develop a mini representative processing application and run it on a model configuration of thesystem. Such experiment would confirm the vendors' claims and your expectations an< needs. This

would develop certain norms which can be used to configure the hardware details and building the

architecture. The bill of material of hardware and software can be worked out with the help of these

norms.


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Technical evaluation also confirms the information technology approach to the information

processing needs of the organisation.

The issues like the centralised versus distributed, the online-versus the batch versus the real time,

the network versus the mini or the super-mini are also evaluated. Technical evaluation also helps in

narrowing down the hardware choices as all the vendors may not satisfy the requirements of the

organisation.

In technical evaluation we are discussing utility of information technology. The information technology

is constantly under development and the scale on which such improvement takes place is

phenomenal. Hence, it is necessary to select the latest technology in all areas of information

processing as it would take you a long way and help you to protect the investment. The investment is

protected, if the Information Technology choice is scalable, upgradeable and also expandable with

the growth of the business.

Operational Feasibility

The options approved after the technical evaluation are tested for the operational feasibility. What the

technology offers may not be possible to operate at the practical level and at a scale to obtain full

benefits of the various inherent features. The operational feasibility evaluation considers the people-

related issues and whether the systems and the procedures of the organisation are complementary

and conducive.

In a number of situations, the choice of technology determines automatically the calibre, the com-

petence and knowledge of the people in the organisation. It is also observed that the organisation

does not provide people support to implement technology successfully. The shortcomings on

peoples side would be the lack of requisite qualification and the subject knowledge, the ability to

absorb the technology, and use it efficiently and effectively. Many a times, the organisation would

require appointing a new set of personnel to fulfill these needs.

Other areas affected would be the systems and the procedures currently operating in the company.

The shortcomings are observed right from the absence to the inefficient systems and procedures.

The modern information technology needs sophisticated back-up of the data at a requisite point and

time. If such a data support is not available then the information technology would be underutilized or

may not be worthwhile to implement.


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Financial Evaluation

All the options can be evaluated in terms of the investment it calls for. It is always possible to rank

the options on the basis of the investment. All business investments are evaluated in terms of return

on the investment (ROI) or certain payback period. They are also judged from budget considerations.

The information technology investments are difficult to judge on the ROI basis as some aspects of

the investments are intangible and are difficult to quantify in monetary terms. The best approach in

such cases is to judge the investment in terms of the value of information it gives on an incremental

scale. If the value of information in relation to its investment is not significant, then it could advisable

to consider the next best lower investment option.

In regard to the budget restrictions, it would be advisable to examine the possibility of scaling the

hardware and the software options. It is then possible to have a solution implemented in terms of the

budget provisions. The scaling can be done in terms of the quality of hardware required in the option.

It may be possible to buy the requisite minimum in the first year and expand them in the subsequent

period. It may be possible to configure the hardware in terms of the capabilities which are required

now and which can be acquired later on.

The budget restrictions can be handled by taking the benefit of the scalable and the upgradeable

technology. The scaling of the expansion can be done on two scales, viz. horizontal and vertical

expansion. The horizontal expansion relates to the quantity while the vertical expansion relates to the

quality and coverage.

Horizontal Expansion

The memory, disk, terminals, peripheral equipment, etc. can be configured for the present needs and

then expanded as the coverage increases.

Vertical Expansion

The system integration, backward or forward, concentrates on the mission critical applications,

covering only the main key business functionalities.

However, in all these matters the total decision is to be taken first and then broken down into

components and in terms of the budget provisions for the next two years or more.


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MIS: Choice of the 'Information Technology'

The choice of the information technology is a backbone of the Management Information System. It is

a critical strategic decision affecting the business operations and prospects. It affects the people, the

processes and productivity and helps organisation emerge with a new work culture. Since it is a high

investment decision, the management would look at it from the returns it yields in the business.

The success of the MIS lies in how the information technology is implemented in the organisation. A

lot depends on the people and their ability to accept the new work style and the new work culture. All

the implementations of the information technology lead to organisational transformation in the

content and structure.

If the human side of the organisation is not properly aligned to the information technology, the best

information technology would fail in its implementation, adversely affecting effective development of

the MIS. There is a risk in manipulating the information technology beyond a limit to suit the

personnel of the organisation or the budget limitation. Hence, the implementation of the information

technology could be slow on the time scale to accommodate a certain critical constraint, but it should

not be allowed to adversely influence the information technology decision itself.

The information technology changes are very rapid. To protect the investment in the information

technology, the selection criteria should include features such as scalable architecture, upgradeable

software, an open system environment, communication capability through gateways and interfacesand so on. A good management information system design requires a matching support from the

information technology.

Self Assessment Questions 2

1. The systems designed through an integration process are called ..

2. .trigger an action as a response to the external world events.

3. The system processing design is, therefore, concerned about the performance, which is a result

of speed, . and ...

4. The objective of the Total Quality Management (TQM) in the information systems design is

to.

5. The single most important measure of quality assurance is .


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6. James W. Cortada measures the quality of information by seven parameters. They are

flexibility, maintainability, reusability, integration, consistency, . And

7. In., the smallest portion of the system is checked.

8. In, modular structure of the system when it works together is checked to see

whether it produces the desired information and quality.

9. ..is the last of the systems testing where the operational performance of the system

is tested.

10. I-CASE stands for .. .

14.11 Summary

The business management process has changed from function management to process

management.

In any information system application the steps involved are data processing, transaction

processing, application processing and system processing.

Data is the smallest atomic entity in the information system which is basic to build the information

system.

The persons designing transaction processing system must have or acquire the knowledge of

business rules for introducing them in the transaction processing system.

The advent of communication technology and its embedded use in application processing

extended its scope beyond the boundaries of the organisation.

The system processing is at a higher level, over the application processing.

The information system processing, therefore, uses the system engineering methodologies which

are capable of dealing with the data acquisition technologies, processing technology and

architecture, networking technologies and communication.

The objective of the Total Quality Management in the information systems design is to assure the

quality of information. This is done by ensuring, verifying, and maintaining software integrity

through an appropriate methodology choice amongst the technology, design and architecture.

The real time systems are developed for diverse applications in the process control, process


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automation, medical and scientific research, traffic management, aerospace systems and instru-

mentation.

Terminal Questions

1. Name the steps or stages to be implemented before the data is accepted in the system for

usage.

2. The selection of information technology is a strategic decision in MIS development. Explain.

3. What are the different levels of processing required to meet the information needs? How are they

dependent on each other?

4. Why are checks and controls required at all the levels in processing?

5. What is the difference between verification and validation? Even though data is correct,

transaction may not be valid. Illustrate the above statement with examples.

6. The quality is ensured by the designer and not by the technology. The technology is an enabler

and not a quality assuring solution. Explain.

7. How is quality assumed on the information? Enumerate all the steps in quality assurance

programme.

Answer Self Assessment Questions

SAQs 1

1. Transaction processing system processing

2. Building the data as a first level input to the system.

3. Data processing

4. Process transaction itself on certain lines.

SAQs 2

1. Enterprise Resource Planning (ERP) systems

2. The real time systems

3. Accuracy reliability

4. Assure the quality of information

5. The level of user satisfaction it attains

6. Usability reliability


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7. Unit testing

8. Integration testing

9. The performance testing

10. Integrated Computer Aided Software Engineering

Answer to Terminal Questions

1. Refer to 14.3

2. Refer to 14.2

3. Refer to 14.4

4. Refer to 14.4

5. Refer to 14.4

6. Refer to 14.7

7. Refer to 14.7

14 information technology and systems

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