decision support systems and mis (1)

8/2/2019 Decision Support Systems and MIS (1)

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ODM COMPUTER &MGT. EDUCATION

DECISION SUPPORT SYSTEM ANDMANAGEMENT INFORMATION SYSTEM

Unit-I

Decision Support System: Overview, components and classification,

steps in constructing a DSS, role in business, group decision

support system

Qu 1. Define DSS? Explain its components and types. What type of support isprovided by DSS?Ans. It is an information system that offers a kind of information that may not bepredictable, business professional may need. These systems do not produce regularlyscheduled management reports. DSS assist managers who must make decisions. Adecision is considered unstructured, if there are no clear procedures for making the

decisions and if not all the factors are to be considered in the decision can be identifiedin advance. Judgment of the manager plays an vital role where the problem is notstructured. DSS supports, but does not replace the judgment of the manager.

Components

Following are the components of the Decision Support System :

(a) Database Management System (DBMS) : To solve a problem thenecessary data may come from internal or external database. In an organisation,internal data are generated by a system such as TPs and MIS. External data come

from a variety of sources such as newspapers, online data services, databases(financial, marketing, human resources).

(b) Model Management system : It stores and accesses models that managersuse to make decisions. Such models are used for designing manufacturing facility,analyzing the financial health of an organisation. Forecasting demand of a product orservice et.

(c) Support Tools : Support tools like online help, pull down menus, userinterfaces, graphical analysis, error correction mechanism, facilitates the userinteractions with the system.

Steps To Construct A Decision Support System

The steps to construct a DSS are as follows :-

(a) DSS generator :- It is comprises of programmes such as management tools,electronic spreadsheet, report generators, statistical packages, graphical package,query languages and model building tools that helps the development of DSS. Someknown DSS generators are FOCUS, Excel and Lotus 1-2-3.


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(b) Database Oriented DSS : In this type of DSS database plays a major role in theDSS structure. Rather than being treated as stream of text, data are organised in ahighly structured format.

(c) Spreadsheet Oriented DSS : Spreadsheet is a modeling language that allows

the user to write models to execute DSS analysis. They create, view, modify proceduralknowledge but also instruct the system to execute self contained instructions. The mostpopular tool is Excel and Lotus 1-2-3.

(d) Solver Oriented DSS ; A solver is an algorithm or procedure written ascomputer programme for performing certain computations and particular program type.

(e) Rules Oriented DSS : Procedures are adopted in rules oriented DSS.Export system is the example.

(f) Compound DSS : It is built by using two or more of the five structures

explained above.

Support provided by DSS

Following supports are provided by DSS :-

(a) DSS provide support for various managerial level, ranging from top executive toline managers.

(b) It provides to individuals as well as to group. Less structured problems oftenrequires the involvement of several individuals from different departments and

organisation level.

(c) DSS provides support to several independent and sequential decisions.

(d) DSS supports all phases of decision making process, intelligence, design, choiceand implementations.

(e) DSS are adaptive over time. The decision maker should be reactive, able toconfront changing conditions quickly and adapt the DSS to meet these changes. DSSare user friendly. So user can add / delete, change or rearrange the basic elements.

(f) DSS supports a variety of decision making process and styles.

(g) Users must feel at home with DSS. User- friendliness, strong graphic capabilitiesand English like interactive human machine interface can greatly increase theeffectiveness of DSS.

(h) DSS attempts to improve the effectiveness of decision making, rather than itsefficiency (cost) of making decision.


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(j) The decision maker has complete control over all steps of decision makingprocess in solving problem. A DSS specifically aims to support and not to replace thedecision maker.

(k) End users should be able to construct and modify simple systems by themselves.

Larger systems can be built with assistance from information system (IS) specialists.

(l) A DSS usually utlises models for analyzing decision making situations. Themodeling capability enables experimenting with different strategies under differentconfigurations.

Qu-2 Why do manager need DSS?

Ans Manager need the decision support system for performing the followingfunctions:-(a) Model Building : A model builder manager uses a structure frame workto

identify variables like demand, cost and profit analysis the relationships among thesevariables.

(b) What-if analysis : Managers need DSS in the process of assessing the impactof changes to model variables, the values f variables. This helps managers to beproactive, rather than reactive, in their decision making.

(c) Goal seeking : Manager use it in the process of determining the input valuesrequired to achieve a certain goal. For example, a house buyer determines the monthlypayment that they can afford and calculate the numbers of such payments required topay the desired house.

(d) Risk Analysis : It allows managers to access the risk associated with variousalternatives. Decision can be classified as low risk, medium risk and high risk. A DSS isparticularly in medium and high risk environments.

(e) Graphical analysis : This helps managers to quickly digest large volume of dataand visualize the impacts of various courses of action.

Qu-3 Define Group Decision Support System?

Ans - A decision support system that provides support in decision making by a group of

people. GDSS are computer based information system that facilitates the free flow andexchange of ideas and information among the group members. Decisions are madewith a higher degree of consensus and agreement resulting in a dramatically higher likehood of implementation. Group consists of less than 20 people who arrive at decisionthrough communication. The communication serve to share information and implementthe decision making process. The decision is taken by vote but is more often bynegotiation or preference ranking.

Types of GDSS


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Three types of computer based supports are available :-(a) Decision Network : This type helps the participants to communicate each otherthrough network or through a central database. Application software may usecommonly shared models to provide support. The commonest implementation is using

local area network and microcomputers. The technology filters out many groupdynamics of a participative meeting.

(b) Decision Room : Participants are located at one place i.e. the decision room.The purpose of this is to enhance participants interactions and decision making bycomputerized within a fixed period of time using a facilitator.

(c) Teleconferencing : Groups are composed of members or sub groups that aregeographically dispersed, teleconferencing provides interactive connection between twoor more decision rooms. This interaction will involve transmission of compturised andaudio visual information. Decision network can be viewed as the use of local area

network, for decision making involving groups the decision room is entirely newdevelopment. The decision room should consist of a table with network workstations forthe purpose. Breakout rooms, used for similar discussions, are also equipped withsimilar network machines. A combination of overhead projector, flipchart, photocopierand other presentation devices are provided as well. Following software are used :-

(a) Brainstorming : The software may be used at any stage of processing but isvaluable particularly at early stages when member of the group need to think andconverse on the issue.

(b) voting : It is frequently important to obtain swift view on the acceptability of

proposals from a group perspective before proceedings. Voting

(c) Policy Formation : Software can aid policy formation by allowing decisionmakers to identify connections and relations between issue and communicate to allpresent for comments.


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Unit-II

Information system for strategic advantage, strategic role for

information system, breaking business barriers, reengineeringbusiness process, improving business qualities.

Information System For Strategic Advantage

It is the system that support or shape the competitive position and strategic of abusiness. So a strategic information system can be any king of information system thatuses information technology to help an organisation gain competitive advantages,reduce a competitive disadvantage and meet other strategic enterprises objectives.

Types

Information technology can be used to implement the five basic strategies. Manycompanies are using internet technology as foundation of for such strategies.

(a) Cost Leadership Strategy : Becoming a low cost producer of a products andservices in the industry, a firm can find ways to help its suppliers or customers to reducetheir cost or to increase the cost of their competitors.

(b) Differentiation Strategy ; Developing ways to differentiate a firms products andservices from its competitors or reduce the differentiation advantages of competitors.This may allow affirm to focus its product or services to give it an advantage in particular

segments of a market.

(c) Innovation Strategy : Finding new ways of doing business. This mayinvolve the development unique products and services or entry into unique market ormarket niches. It may also involve making radical changes to the business processesfor producing or distributing products and services that are so different from the way abusiness has been conducted that they alter the fundamental structure of an industry.

(d) Growth Strategy : Significantly expanding a companys capacity to producegoods and services into global market, diversifying into new products and services orintegrating into related products and services.

(e) Alliance Strategy : Establishing new business linkage and alliances withcustomers, suppliers, competitors and other companies. The linkage may includemergers, acquisitions, joint ventures, forming of virtual companies or other marketing,manufacturing or distribution agreements between a business and its trading partners.

Strategic Uses


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Business managers invest in information technology to direct support firmscompetitive strategies. Strategic information system is used to implement each of thesefive basic strategies for competitive advantage. There is major use of internettechnology for electronic business and commerce applications.

STRATEGIC ROLE FOR INFORMATION SYSTEM

The major roles of information system are as follows :

(a) Support Business Processes : As a consumer, you have to deal with theinformation system that supports the business processes and operations at many retailshops where you shop.(b) Support Decision Making : Information system also helps store managers andother business professional to make better decision and attempt to gain competitiveadvantage.(c) Support Competitive Advantage : Gaining a strategic advantage over competitors

requires innovate use of information technology.

Types Of Information System

There are two types of information system :1. Operation Support System : Under operation support system:

(a) Transaction Processing System : process data resulting from businesstransactions, updates operational database and produce business documents.(b) Processing control system : Monitor and control industrial process.(c) Enterprise Collaboration System : Support team, work group, andenterprises communication and collaboration.

2. Management Support System : Under management support system :(a) Management Information System : Provide information in the form ofpre-specified reports and displays to support business decision making.(b) Decision Support System : Provide interactive adhoc support for thedecision making process of managers and other business professionals.(c) Executive Information System : Provide critical information fro manysources tailored to the information needs to executives.

REENGINEERING BUSINESS PROCESS

It is a management approach that examines aspects of a business and its

attempt to improve the efficiency of underlying processes. According to Michel Hammerbusiness process redesign/reengineering can be defined as, the analysis and design ofworkflow and process within and between organisation. Business processreengineering is also known as BPR, Business Process Redesign, BusinessTransformations, and Process Change Management.

Target Category / Goal

Business Process Reengineering has three key target categories :


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(a) Customer Friendly: One of the main goal of introducing BPR is to get acompetitive edge and that can only be gained by providing the customer more thanwhat the others in the market are asking for. If a customer is looking for products totheir needs, for example a car customized to the customers taste, and then the car

maker would most probably gain more customers over the competition due to thecustomization option.

(b) Effectiveness : If whatever product or service the business might beproviding to the customer is successful, then the customer would automatically want tobuy that product or service again. For example, Japanese made car Toyota andHonda, even though they are more expensive compared to the domestic cars, they arevery reliable cars causing the customer to continue going back to those brands forgenerations.

(c) Efficiency : This is one of the most key categories that is believed to be more

important than any others. If a manufacturing company can master the skill of beingefficient then they can automatically be more customers friendly and effective.Efficiency is not just about being efficient at production floor but the management levelalso.

Success : BPR, if implemented properly, can give huge returns. BPR has helpedgiant like Procter and Gambler Corporation and General Motors Corporation succeedafter financial drawbacks due to competition. It helped American Airlines somewhat getback on track from the bad debt that is currently haunting their business practice.

Business Improvement and BPR

Following is difference between continuous business improvement and BusinessProcess Reengineering :

(a) Definition : Reengineering is fundamental rethinking and radical redesigning ofbusiness process to achieve dramatic improvement in cost, quality, speed and service.So. Business improvement is an incrementally improving process.

(b) Targets : BPR combines a strategy of promoting business innovations with astrategy of making major improvement to business process so that a company canbecome a much stronger and more successful competitor in the market place. Businessimprovement targets on any process.

(c) Primary enabler : Organizational redesigning approach is an important enablerof reengineering, along with the use of information technology. Fore example, onecommon approach is the use of self-directed cross-functional or multidisciplinary


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process team. Business improvement is primary enabler of information technology andwork simplification.

(d) Potential Payback : Business process reengineering makes 10 fold improvementin the business. Continuous Business improvement makes 10% to 50% improvements

in the business.

(e) Changes : Big job cuts, new jobs and major job redesign are carried out aschange in business process reengineering. Same job or just more efficiency is aschange in continuous business process.

(f) Risk of failure and Level of disruption is high in BPR and low in businessimprovement.

Role of Information Technology

Information Technology plays an important role in reengineering most businessprocess. The speed, information processing capabilities and connectivity of computersand internet technology, as well as communications and collaboration among thepeople for their operation and management. For example, the order management isvital to the success of most companies. Many of them are reengineering this processwith enterprise resources software and web-enabler. Information technology can beused strategically to improve business performance in many ways other than supportingreengineering initiatives. One important strategic thrust is continuous qualityimprovement popularly known as total quality management (TQM).

Principle of BPR

Hammer and Champy suggested seven principles of business processreengineering :

(a) Organise around outcomes, not tasks.(b) Identify all processes in an organisation and prioritise them in order of redesignurgency.(c) Integrate information processing working into real work that produces theinformation.

(d) Treat geographically dispersed resources as though they were centralized.(e) Link parallel activities in the workflow instead of just integrating their results.(f) Put the decision point where the work is performed, and build control into theprocess.(g) Capture information once and at the source.

Basic Elements of Business Process

Basic elements of business process are :


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(a) Motivation to perform(b) Data gathering, processing and storing.(c) Information processing(d) Decision making(e) Communication

Unit-III

Information system analysis and design, information SDLC,

hardware and software acquisition, system testing, documentation

and its tools, conversion methods.

SYSTEM DEVELOPMENT LIFE CYCLE

To understand system development, we need to recognize that, a candidatesystem has a life cycle, just like a living system or a new product. System analysis and

design are keyed to the system life cycle.Stages

1. Recognition of Need : One must know, what problem is before it can besolved. The basis for a candidate system is recognition of need for improving aninformation system or a procedure. For example, a supervisor may want to investigatethe system flow in purchasing or a bank president has been getting the complaintsabout long lines in the drive-in ATM counters.

2. Feasibility Selection : Depending on the results of the initial investigation,the survey is expended to a more detailed feasibility study. A feasibility study is a test

of system proposal according to its workability, impact on the organisation, ability tomeet users need and effective use of resources. It focuses on the major questions:

What are the userss demonstrated needs and how does a candidate systemmeet them?

What resources are available for a given candidate system?

What are the likely impacts of candidate system on organisation? How well doesit fit within the organizations MIS plan?

The objective of the feasibility study is not to solve the problem but acquire a range ofscope. During the study the problem definition is crystallized and aspects of the


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problem to be included in the system are determined. Consequently, cost and benefitsare estimated with greater accuracy at this stage.

3. Analysis : Analysis is a detailed study of the various operations performed bya system and their relationship within and outside the system. A key question is : what

must be done to solve the problem? One aspect of analysis is defining the boundariesof the system and determining whether or not a candidate system should consider otherrelated system. During analysis, data are collected on the available files, decisionpoints and transactions handled by the present system. Tools are used and logicalmodel of the system is developed.

4. System Design : The most creative and challenging phase of the system lifecycle is system design. The term design, describes a final system and process bywhich it is developed. It refers to the technical specifications that will be applied inimplementing the candidate system. It also includes the construction of programmesand programme testing. The key question here is : how should the problem solved?

The major steps in design are : The first step is to determine, how the output is to be produced and in which

format. Sample of output are also presented.

Input data and transfer files have to be designed to meet the requirements of theproposed output.

The operational phases are handled through programmes constructions andtesting including a list of programmes needed to meet the systems objectivesand complete documentation.

Details related to justification of the system and an estimate of the impacts of thesystem on the user and organisation.

The final report prior to implementation phase includes procedural flowcharts, record

layout, report layout and plan for implementing the candidate system. Information onpersonnel, money, hardware, facility and their estimated cost must also be available. Atthis point projected cost must be close to actual cost of implementation.Testing : System testing requires a test plan that consists of several key activitiesand steps for programs, strings, system, and user acceptance testing. The systemperformance criteria deals with turnaround time, backup, file protection and the humanfactor.

5. Implementation : The implementation phase is less creative than systemdesign. It is primarily concerned with user training, site preparation and file conversion.When the candidate system is linked to the terminal or remote site, the

telecommunication network and test of network along with the system are also includedunder implementation. During the final testing, user acceptance is tested, followed byuser training. Depending on nature of the system, extensive user training may berequired. Conversion usually takes place at about the same time, when the user isbeing trained or later.

6. Post Implementation : In the extreme, the programmer is viewed as someone,who ought to be isolated from other aspects of system development. Programming isitself a design work, however, the initial parameters of the candidate system should be


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modified, as a result of the programming efforts. Programming provides a reality test forthe assumption made by the analyst. It is therefore, a mistake to exclude programmersfrom the initial system design.Evaluation : During system testing, the system is used experimentally to ensure thatthe software does not fail. In other words, we can say that, it will run according to its

specification and in the way user expect. Special test data inputs for processing andthe result examined. A limited number of users may be allowed to use the system, sothat, analyst can see, whether to use it in unforeseen ways. It is desirable to discoverany surprise before the organisation implements the system and depends on it.Evaluation of the system is performed to identify its strength and weaknesses. Theactual evaluation can occur along any one of the following dimensions :

o Operational Evaluation : assessment of the manner in which the system

functions.o Organisational Impect : Identification and measurement of benefits to the

organisation in such areas as financial concerns, operational efficiency and

competitive impact.o User Manager Assessment : Evaluation of the attitudes of senior manager and

user within the organisation as well as end users.o (iv) Development Performance : Evaluation f the development process in

accordance with such yardsticks as overall development time and efforts,conformance to budget and standards and other project management criteria.

Maintenance : Maintenance is necessary to eliminate the errors in the working systemduring its working life and to tune the system to any variations in its workingenvironment. Often small system deficiencies are found, as system is brought intooperation and changes are made to remove them. System planner must always planfor resources availability to carry on these maintenance functions.

Enhancements : User priorities, changes in organizational or environmental factors alsocall for system enhancement. Like any system, there is an ageing process in softwarethat requires periodic maintenance of hardware and software. If the new information isinconsistence with design specifications, then changes have to be made.

SYSTEM TESTING

Testing is vital to success of a system. System testing makes a logicalassumption that if all the parts of the system are correct, the goal will be successfullyachieved. Inadequate testing or non-testing leads to errors that may not appear untilmonths later. This creates two problems :

o The time log between the cause and the appearance of the problem (the longerthe time interval, the more complicated the problem becomes).

o The effect of system errors on files and records within the system.

A small system error can conceivably explode into a much larger problem. Effectivetesting early in process translates directly into long term cost saving from a reducednumbers of errors. Another reason for system testing is its utility as a user orientedvehicle before implementation. The best program is worth useless, if it does not meetuser needs. Unfortunately, the users demands are often compromised by efforts tofacilitate program or design efficiency in terms of processing time or memory utilisation.


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Often the computer technicians and users have communication barrier due to differentbackgrounds, interests, priority and perhaps languages. The system tester who hasdeveloped some computer mastery can bridge this barrier.

Testing Practice : The philosophy behind testing is to find out errors. Test cases are

prepared with this purpose. A test case is a set of data that the system will process asnormal input. However, the data is created with the express intent of determining,whether the system will process them correctly. For example, test cases for inventoryhandling should include situations in which the quantities to be drawn from inventoryexceed, equal and less than the actual quantities on hand. Each test case is designedwith the intent of finding errors in the way the system will process it. There are twogeneral strategies for testing software :

(a) Code Testing : The analyst develops the cases to execute every instructions andpath in the program.(b) Specification Testing : The analyst examines the program specifications and

then, writes test data to determine, how the program operates under specific conditions.Regardless of which strategy the analyst follows, there are preferred practices to ensurethat testing is useful.

Test Plan The first step in system testing is to prepare a plan that will test all aspectsof the system in a way that promotes its credibility among potential users. There arefollowing psychology in testing :

Programmers usually do a better job in unit testing because they are expected todocument and report on the method and extent of their testing.

Users are involved which means communication is improved between the userand the designer group.

Programmers are involved when they become aware of user problems andexpectations. The user also becomes more aware (and appreciative) andcooperative user for successful testing.

A test plan entails the following activities :

Prepare test plan

Specify conditions for user acceptance toting

Prepare test data for program testing

Prepare test data for transactions path testing

Plan user training

Compile/assemble program

Prepare job performance aids Prepare operational documents

Prepare Test Plan: A workable test plan must be prepared in accordance withestablished design specifications. It include the following items :

Out put expected from the system

Criteria for evaluating outputs

A value of test data

Procedure for using test data


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Personnel and training requirements

DOCUMENTATION AND ITS TOOLS

The organised way of keeping records of all the documents, programs and diagramsprepared during all the phases of system development life cycle (SDLC) is calleddocumentation. All types of written instructions, which are prepared during SDLC andare required for operating and maintaining the system, must be included in thedocumentation.

Types of documentation

(a ) Program Documentation : Before a program is developed, the system analystshould provide the programmer with the required documentations. The logic ofprograms is best described by a flowchart and sometimes decision tables are most

appropriate for explaining.(b) Operation Documentation : For smooth running of the system, the consoleoperator must have complete knowledge of the job. Providing the computer center witha set of instructions will not serve the purpose. The instructions must be in a form ofreadily accessible to the console operator and written in simple and understandablestyle. A well designed system may run for long time with little or no assistance from thesystem department. This can happen only when the system has been properlydocumented.(c) User Documentation : System users require proper documentation to prepare adeveloping system and smooth running of existing one. User requires two generaltypes of information, complete details to handle each case of the system processes and

overall picture of the system so that they can see their role in the total operations in thecompany.(d) Management Documentation : The documentation required by corporatemanagement differs quite a lot from that required by users. The system designer mustknow the requirements of the management and provide documents to enable themanagers to perform three functions :

Evaluate progress on system development

Monitor existing systems

Understand the objectives and method of new and existing system.(e) System Documentation: Each phase in the system development cycle isaccompanied by appropriate documentation. The system request , even if it is initially

merit, verbally, eventually, must be written. It is desirable for a client and system analystto work jointly in writing the request since each can contribute the knowledge the otherdoes not have. During the life cycle of the completed system, the system itself mustprovide documentation of how well it is operating and consequently should be designedto yield data about itself as a normal bi-product.

Documentation Tools


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A system is required to meet the need of maintenance, reliability and testing. For this,well designed tools are needed. Following tools can be used to measure the affectivityof the system :

(a) Structured Flow Chart : It is a graphical tool that forces the system designer

to structure the software in modular as well as top-down form. The main advantage ofusing the structured chart is that it provides a proper structure that can be retained bythe programmer for developing the application software. There are three basic elementsthat are used in developing flowcharts :

Decision symbol : It symbolises alternative conditions that can occur. It mayshow actions for more than two alternatives at the same time.

Process symbol : These are rectangular boxes that represents a simple processor steps in a program. The process symbol represents initialization of values,input and output operations and calls to execute other procedures.

Iteration symbol : Looping and repetition of operations is represented by theiteration symbols. These represent looping while a certain condition exists. Each

structured flowchart is ideally displayed on a single sheet of paper.

(b) Hierarchical Input Process Output (HIPO) : It is a tool frequently used fordeveloping system software. The major concept upon which this tool is based is thehighly structured modular design. The structure of HIPO documentation is very muchsimilar to an organisation chart. HIPO method was originally developed to providedocumentation assistance for programmers. This type of structure allows theenforcement of major principles to HIPO, a top-to-bottom approach to design. Theyassist the analyst in answering three guiding questions :

What does the system or module do? (asked while designing the system)

How does it do it? (asked while reviewing the code for testing)

What are the inputs and outputs? (asked while reviewing the code for testing)Visual Table of Contents (VTOC) : It shows the reaction between each of thedocuments making up HIPO package. It consists of a hierarchy chart that identifies themodules in a system by number and in relation to each other and give a briefdescription of each module. The modules are in increasing detail. Depending on thecomplexity of the system, three to five levels of modules are typical.

(c) Functional Diagrams : There is one diagram for each box in the VTOC.Each diagram shows input and output (right to left or top to bottom), major processes,movement of data and control points. Traditional flow chart symbols represent mediasuch as magnetic tape, magnetic disk, and printed output. A solid arrow shows controlpaths and open arrow identifies data flow.Contents : A functional diagram contains following :

Order processing system (Main program) : Controls all processing. Involvesprogram to handle data entry, monthly processing records and printing of reports.

Transaction Entry Program : Controls all data entry and editing of storeddata. Includes purchases, payments, and adjustment of function data.


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Data Entry Module : Performs data entry and validation of input data forpurchases, payments and credit or debit adjustments.

Data edit Module : Performs retrieval and editing of previously storedtransaction data for purchase, payments and credit or debit adjustments. Alwayschanges to data or deletion of transaction record.

Monthly Invoice Process program : Controls all invoices process steps usingtransaction data entered during month.

Invoice preparation schedule : Prints invoices on preprinted statement forms.Must be done only after invoice data have been prepared by module.

Invoice Register Module : Prints a detailed journal of invoice by number inascending order. Must be done only after invoice data have been prepared bymodule.

Report Preparation Program : Controls all reports printing for transaction,customer and account balance reports.

Transaction Report Module : Prints a detailed list of all transactions entered

during month in order of assigned transaction number. Customer Reprt Module : Prints listing of all customers and demographic

information in alphabetical and account number order.

Accounts Balance Report Module : Prints listing of all accounts with non-zerobalance in decending order and includes ageing information.

(d) Warnier / Orr Diagram: These are powerful tools aimed at designed of programstructures. The following basic steps are performed to design program structure :

Identification of the output.

Identification of processing results.

Working backwards to determine the steps involved in the process. Working combination of input needed to produce the desired output.

How To Prepare Documentation

Documentation can be prepared manually or by using computers. Manual methods arealways time consuming and requires more manpower. Computer assist analyst inpreparing documentation in many ways. During each phase of SDLC, analyst preparesdocuments and draw diagrams by using word processors graphics software and Casetools. All these documents, files and graphics are later set up into a single file beforeimplementation phase for making each project report. The project reports are designed

by using DTP software and laser printouts are taken. The projects reports are thenprinted, binded and presented in a book form. There are two designing :Top-down Designing : A design is said to be top-down , if it consist of a hierarchy ofmodules, with each module having a single entry and single exist subroutine. Top-downdesign is an incremental approach to the construction of program structure. Modulesare integrated by moving downwards through the control hierarchy, beginning with themain control module. Module subordinate to the main control is incorporated into thestructure in either a depth-first or breadth-first manner. The Top-down designintegration process is performed in a series of four steps :


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(a) The main control module is used as a design driver and stubs are substituted forall components directly subordinate to the main control module.(b) Depending on the top-down design integration approach selected, subordinatestubs are replaced one at a time with actual components.(c) Design are conducted as each components integrated.

(d) On completion of each set of design, another stub is replaced with the realcomponents.Bottom-up Design : Bottom-up designing, as its name implies, begun construction andtesting with automatic modules (i.e. components at bottom level in program structure).Because components are integrated from the bottom up, processing required forcomponents subordinate to given level is always available. A bottom-up integrationstrategy may be implemented with following steps :(a) Low level components are combined into clusters that perfoems as a specificsoftware sub functions.(b) A driver is written to coordinate test case input and output.(c) The cluster is tasted.

(d) Drivers are removed and clusters are combined moving upward in the programstructure.

CONVERSION METHODS

There are four methods of handling system conversion. Each method should beconsidered in the light of opportunity. However, some situations dictate the use of onemethod over other method may be more beneficial. In general, system conversionshould be accomplished as soon as possible.

(a) Parallel System : The most secure method of converting old system to new

system is run both system parallel. Under this approach, user continue to operate theold system in the accustomed manner but they also begun using the new system. Thismethod is the safest conversion approach since it guarantees that, if problem like errorin processing or inability to handle certain types of transactions arise in using the newsystem, the organisation still can fall back on old system without loss of time, service orrevenue.Disadvantage : The disadvantages of parallel system are significant.(i) First of all the system cost double, since there are two sets of system costs. Insome instances, it is necessary to hire temporary personnel to assist in operating bothsystems in parallel.(ii) Second, the fact that users know that they can fall back to the old ways can be a

disadvantage, if there is a potential resistance to the changes or if user prefer the oldsystem. In other words the new system may not get fair trial.(b) Direct Cutover : The direct cutover method converts from old to new systemabruptly, sometimes over a weekend or even overnight. The old system is used until aplanned conversion day when it is replaced by a new system. This was conversionmethod used by Indian Railways when they replace the CMCs IMPRESS with their OwnCRIS developed system CONCERT.Disadvantage : The advantage of not having fall back may turn into disadvantage, ifserious problem arises with new system. In some instances, organisation even stop


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operations when problem arise so that difficulties can be corrected. Direct cutoverrequires careful planning. Training session must be scheduled and maintained. Theinstallation of all equipment must be on time, with ample days allowed in in scheduled tocorrect any difficulties that occur. Site preparation must be complete before theconversion can be done.

(c) Pilot approach : When new system also involve new techniques or drasticchanges in organisation performance, the pilot approach is often preferred. In thismethod, working version of the system is implemented in one part of the organisation,such as a single work area or department. Thus users in this area typically know thatthey are piloting a new system and that changes can be made to improve the system.

When the system is deemed complete, it is installed through out the organisation,either all at once (direct cutover method) or gradually (phase-in). this approach has theadvantage of providing a sound ground before full implementation. However, ifimplementation is not properly handled, users may develop the impression that systemcontinues to have problems and that it can not be relied on.

(d) Phase-in Method : The phase-in method is used when it is not possible to install anew system through the organisation at once. The conversion of files, training ofpersonnel, or arrival of equipments may force the staging of the implementation over aperiod of time, ranging from weeks to months. Some users will begin to take advantageof the new system before others.

Conversion And Operational Plans

After the system conversion is completed using any one of the methods, the conversionplans starts. In the conversion plan, all the activities that must occur to implement the

new system are properly defined and put it into operation. It identifies the personsresponsible for each activity and includes a time schedule for each activity. During thepre-implementation stages, when the conversion is being planned, analyst shouldprepare a list of all the tasks, including the following :

List all files of conversion

Identify all data require to build new files during conversion.

List all new documents and procedures used during conversion.

Identify all controls to be made during conversion.

Assign responsibility for each task.

Verify conversion schedules.

Site Preparation

A major aspect of conversion is the preparation of system site. Preparation activitiesinclude electrical and air-conditioning preparation, site layout and installation ofequipment. It is most desirable to have the site preparation completed prior to thearrival of equipment, since vendors are not in favour of delivering the system, if theconstruction work is going on.

File And Data Conversion


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Data and file preparation consumes a large portion of conversion time. Not only mustthe data be converted to a format acceptable in the new system, but analyst mustensure that this is due without loss of detail or accuracy. By using record counts,financial controls and cash totals, analyst are able to detect correct problem quickly,

before they get out of control, even if the conversion involves data transmission.

Unit-IV

Marketing IS, Manufacturing IS, Accounting IS, Financial IS.

MARKETING INFORMATION SYSTEM

A marketing information system can be defined as a computer based system that worksin conjunction with other functional information system to support the firmsmanagement in solving problem that relate to marketing the firm product. It is a systemthat meets the information need of an organisation in sales, distribution, advertising,market analysis, market intelligence, product research, service management, customerprofile and other marketing functions.

Data Sources

The information used in marketing, decision arrived at from different data sources arefrom the following sources :

Transaction Processing Data : These data shows the sales that results from specificmixes of four Ps. They provide feedback on the effectiveness of the past marketingstrategies. They are also useful for apprising performance and controlling marketingexpenditure.Marketing Research Data : Market researchers are responsible for collecting consumerrelated data that can be used to support marketing decision.Market Intelligence Data : It refers to information about the strategy of competition.The term intelligence is a carry over from the military, which uses the term to describedata gathered about enemy activities. Marketing intelligence information are collectedin an unstructured or semi-structured manner through word of mouth interaction orthrough observing statistics available in media and commercial database services.External Environment Data : In marketing, success is largely attributable to what willhappen in the future external environment.

Strategic Plan

The strategic plan is a really starting point of all marketing decisions. It contains thetype of products that the firm plans to supply to the consumer market place. Marketinginformation system should provide following information :

The optimal way to capture data at the point-of-sale.

Information about smooth running of market operation and efficiency.


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Goods and services that customer wants.

Information about desire of customer service.

The kind of services important to customers.

Interest and willingness of consumers in information technology.

Willingness of customer to pay for higher quality service.

Impact of higher quality of service to customers on firms profit.

How can customer be attracted and retained?

MANUFACTURING INFORMATION SYSTEM

Manufacturing information system is a system that supports the manufacturing functionsof purchasing, receiving, quality control, inventory management, material requirementsplanning, capacity planning, production scheduling and plant design. It applies to bothmanufacturing and service environments. The term manufacturing should be consideredin terms of delivering both goods and services.

Components of MIS

Production : It is the process of making new products from raw materials. Theproduction process consists of many interrelated activities such as job shop and jobprocess.Production System : It is, a subset of manufacturing information system, directlyassociated with the production of goods and services. It specifically addressesinformation needs related to raw materials, equipment, manpower and other issuesdirectly related to production of goods and services.Product Design : It is the starting point of manufacturing process. It is the step inwhioch the design and technical specifications for the product are finalised.Increasingly product design and engineering are becoming more compturised throughapproaches such as computer-aided design, computer aided engineering and robotics.After a product is designed, the facility to manufacture must be planned.Manufacturing Process : All manufacturing processing are concerned with informationprocessing, storage, collection and distribution are related in a way that optimizesperformance of the entire enterprises. Manufacturing refers to manufacturingenvironments that redynamic and flexible enough to produce customized goods andservices in varying quantities and switch the manufacturing process from one product toanother.Characteristic : Manufacturing has following characteristic :

The ability to thrive on constant change.

Recognition by the organisation that people are its main assets.

Incorporation of the virtual company idea through the use of telecommunication.

A focus on creating products and services, which ensures that the final product isstandard quality. Its function is concerned with detecting existing qualitydeficiencies, as well as with preventing finer product quality problems.

Statistical Process Control : One of the quality control techniques that has helpedin manufacturing operations is known as statistical process control. The objective of


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SPC is to closely monitor production units at various stages of the production process,identifying potential problems before they result in defects and adjusting the productionprocess accordingly through observations.SourcesInformation needed for manufacturing decisions step from a variety of data sources as

follows :(a) Production Data : By using terminal around the production floor, data onproduction process can be quickly gathered and processed. These data are used forbilling and in almost every aspects of production control.(b) Inventory Data : It includes inventory of raw materials, goods-in-process andfinished goods. Accurate raw material data are especially important in a manufacturingsituation because running out of certain items at critical times can shut down productionlines, leaving workers idle.(c) Vendor data : It shows sources and prices for raw materials. Often, vendorsdata are maintained by the purchasing department, although sometimes themanufacturing area will personally buy certain items.

(d) Personnel data : Personnel data shows various statistics on currentmanufacturing personnel often, in the course of production people switch assignments,so personnel skills must be received to fit the right person for the right job.(e) Union Data : Many types of labour union exist in industries that have strictregulation regarding such items as pay scale, hiring and firing, promotion and workingconditions.(f) Labour Data : Raw material and people are at the core of manufacturing aproduct. While vendors are the source of raw materials, labour market is source ofpeople. Data must be kept regarding where new personnel may be obtained as labourshortage occurs in the firm.(g) External Environment Data : To manufacturing managers, the most pressing

information need in the area of external environment data is the outlook of raw materialsprice and labour availability.(h) Engineering Specification : These data indicates whether something can be builtand how. It contains such facts as size of screws, whether a certain drill bit is suitablefor wood metal, or how to build a sub assembly of a certain type and so on.(j) Internal Marketing Data : Marketing ends where manufacturing begins, somarketing output is manufacturing input. Marketing specifies the number of goods thatmust be produced in each time period in order to meet consumer demand. Marketingdata are also useful to production personnel as part of the engineering design process.

ACCOUNTING INFORMATION SYSTEM

An accounting information system is the system of records a business keepsmaintaining its accounting system. This includes the purchase, sales, and otherfinancial process of business. The purpose of an AIS is to accumulate data providedecision makers (investors, creditors, managers) with information to make decision.While this was previously a paper based process, most modern businesses now useaccounting software.TypesThere are three types of accounting information systems :


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1. Financial Accounting System : This system provides financial statements toinvestors, governmental authorities and other interested parties in accordance with theirreporting formats.2. Cost Accounting System : It provides reports to managers for cost planning andcost control of operations.

3. Management Accounting System : It provides reports to managers both forstrategic and tactical decisions and on profitability of the firm.

Type of Accounting Books

The major types of accounting books used in accounting information system are asunder :

(a) Voucher : A transaction is recorded by debiting and crediting the two affectedaccounts, called a voucher.(b) Journal : It is an account book in which all the transactions are recorded in

chronological order. It is maintained only in manual system by entering information fromvouchers and is not required in computerized system.(c) General Ledger : All the accounts are recorded and maintained individually in abook called general ledger. In manual system of accounting, the ledger is prepared byentering information from Journal by a process called posting.(d) Cash Book : Cash book is a special type of ledger in which all cash transactionsare recorded and maintained.(e) Bank Book : It is another type of ledger in which only bank transactions arerecorded and maintained.(f) Sales Book : The credit sales of goods are recorded in a special book calledsales book.

(g) Purchase Book : The purchase of goods on credit basis are recorded inanother special book called purchase book.(h) Debitors Ledger : The transaction of all debitors are recorded maintained indebitors ledger.(j) Creditors Ledger : The transactions of all creditors are recorded and maintainedin this book.

Major Financial Statements

After preparation of all above accounts , the final statements of accounts are generatedperiodically monthly or yearly. The major financial statements are as follows :

(i) rial Balance : It is a financial statement prepared monthly, quarterly or annuallyto find out the balance of each accounts. In a trial balance, all debitors are shown onone side, while creditors are shown on other side. The total of debit balance mustmatch the total of the credit balance.(ii) Trading Accounts : It is a financial statement prepared yearly to find out thegross profit and loss of the firm


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(iii) Profit and Loss Accounts : After preparation of trading account, a financialstatement called Profit and Loss account is generated to find out net profit or loss of thefirm.(iv) Balance Sheet : The balance sheet is the most important financial statementof the company that reflects its position of assets and liabilities on a particular date.

(v) Accounts Receivable Statement : This statements lists the name of debitors andthe amounts to be received by the company.(vi) Account Payable Statement : This statement lists the name of the creditorsand the amount to be paid by the company.

FINANCIAL INFORMATION SYSTEM

Financial Accounting System provides financial statements to investors, governmentalauthorities and other interested parties in accordance with their reporting formats.

Role And Advantage of Computers in Financial Information System

Accounting is mainly concerned with the collecting, recording and evaluation of financialdata and then communicate this information to the management and other concerned.Generally accounting information system is of three types :

1. Financial Accounting System : This system provides financial statements toinvestors, governmental authorities and other interested parties in accordance with theirreporting formats.2. Cost Accounting System : It provides reports to managers for cost planning andcost control of operations.3. Management Accounting System : It provides reports to managers both for

strategic and tactical decisions and on profitability of the firm.Many types of account books and financial statements can be generated by a financialaccounting system. In manual system of accounting, maintaining of account books in aprescribed manner is called book-keeping, while preparing of financial statementsbased on the accounts book is called financial accounting. In computerized systemfinancial accounting generate both account books and financial statements.

4. Generating Profit & Loss account and balance sheet.

5. Generating updated financial data for other systems. Various inputs are :

Cash vouchers Bank vouchers sales vouchers or bills to customer

Purchase vouchers or bills from vendors

Journal vouchers

Various output are :

Accounts Books

Trial Balance


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Trading Account

P & l accounts

Balance Sheet

Account Receivable Statements

Accounts Payable Statements


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MBA (HR)SEMESTER - III

DECISION SUPPORT SYSTEM &

MANAGEMENT INFORMATION SYSTEM

decision support systems and mis (1)

Documents