information system

Information Systems

Confidential to SoftTech Engineers Pvt. Ltd. Pune

What is Information System

• An information system is any combination of information technology and people's activities that support operations, management and decision making.

(interaction between people, processes, data and technology)• An Information System can be viewed as a work system where all

activities are devoted to different types of digital processing.


Components of Information System

An information system depends on the resources of:

• people (end users and IS specialists), • hardware (machines and media), • software (programs and procedures), • data (data and knowledge basis), and • networks (communications media and network support)

to perform input, processing, output, storage, and control activities that convert data resources into information products.



Backup dataRestart jobVirus scan

Hardware Software

People Procedures Data



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



Information System Resources:

(i)People Resources:

People are required for the operation of all information systems.

These people resources include end users and IS specialists.

End users (also called users or clients) are people who use an

information system or the information it produces. They can be

accountants, salespersons, engineers, clerks, customers, or

managers. Most of us are information system end users.




IS Specialists are people who develop and operate information

systems. They include systems analysts, programmers, computer

operators, and other managerial technical, and clerical IS personnel.

Briefly, systems analysts design information systems based on the

information requirements of end uses, programmers prepare

computer programs based on the specifications of systems analysts,

and computer operators operate large computer systems.




ii) Hardware Resources:

The concept of Hardware resources includes all physical devices and

materials used in information processing. Specially, it includes not

only machines, such as computers and other equipment, but also all

data media, that is, all tangible objects on which data is recorded,

from sheets of paper to magnetic disks.




Example of hardware in computer-based information systems are:

Computer systems, which consist of central processing units

containing microprocessors, and variety of interconnected peripheral

devices. Examples are microcomputer systems, midrange computer

systems, and large mainframe computer systems.

Computer peripherals, which are devices such as a keyboard or

electronic mouse for input of data and commands, a video screen or

printer for output of information, and magnetic or optical disks for

storage of data resources.Confidential to SoftTech Engineers Pvt. Ltd. Pune



iii) Software Resources:

The concept of Software Resources includes all sets of information

processing instructions. This generic concept of software includes not

only the sets of operating instructions called programs, which direct

and control computer hardware, but also the sets of information

processing instructions needed by people, called procedures.




The following are the examples of software resources:

System Software, such as an operating system program, which con

controls and supports the operations of a computer system.

Application Software, which are programs that direct processing for

a particular use of computers by end users. Examples are a sales

analysis program, a payroll program, and a work processing program.

Procedures, which are operating instructions for the people who will

use an information system. Examples are instructions for filling out a

paper form or using a software package.Confidential to SoftTech Engineers Pvt. Ltd. Pune



(iv) Data Resources:

• Traditional alphanumeric data, composed of numbers and

alphabetical and other characters that describe business transactions

and other events and entities.

• Text data, consisting of sentences and paragraphs used in written

communications;

• image data, such as graphic shapes and figures; and

• Audio-visual data, the human voice and other sounds, are also

important forms of dataConfidential to SoftTech Engineers Pvt. Ltd. Pune



The data resources of information systems are typically organized

into:

• Database that hold processed and organized data.

• Knowledge bases that hold knowledge in variety of forms such as

facts, rules, and case examples about successful business practices.



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


Types of Information Systems

• Transaction processing systems,

• Management information systems

• Decision support system



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



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



Decision Support System:

• Decision support system is used to provide computerized support

for complex, non-routine decisions.


Why is MIS Important?

• MIS affects all areas of business– Manufacturing– Accounting & Finance– Human resources– Marketing– Top management

• Performance evaluations—expectations


Why is MIS Important?

MIS Provides Right Information

– To the right person

– At the right place

– At the right time

– In the right form

– At the right cost


MIS

The sub-components of MIS are• System emphasizing a fair degree of integration and a holistic

view.• Information stressing on processed data in the context in which it

is used by end users;• Management focusing on the ultimate use of such information

systems for managerial decision making.


Concept of MIS


Why MIS? It’s Role

Increased Business & Management Complexities


Increased Business Complexities

– Technological Revolution

– Research & Development

– Explosion of Information


Increased Management Complexities

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


Functional Uses of MIS

Enhance :• Quality of operations• Quality of services

Achievement :• Efficiency• Transparency• Speedy Decision making


Strategic Uses of MIS

• Precise development of strategies, planning, forecasting and monitoring

• Problem solving• Decision-making• Separate work from location


Characteristics of MIS


Typical MIS Systems

Classification through functional disciplines


Organisational Systems & MIS

Classification of Management


12 3


Making Decisions• Methodology v Ad Hoc Decisions• Decision Process

– Collect Data– Identify Problems & Opportunities– Make Choices


Traditional ManagementCEO

VPFinance

VPMarketing

VPAccounting

VPHRM

VPMIS

Layers of middle managers

Customers

Commands

Analyze data

Condensed reports

Collectdata



Decentralization Management TeamCEO

FinanceTeam

MarketingTeam

AccountingTeam

HRMTeam

SalesTeam Franchise

Strategy

Methodology/Rules

Customers

CorporateDatabase

&Network

VPFin

VPMrkt

VPAcct

VPHRM

VPMIS



Decision Levels

Decision Level

Description Example Type of Information

Strategic Competitive advantage, become a market leader. Long-term outlook.

New product that will change the industry.

External events, rivals, sales, costs quality, trends.

Tactical Improving operations without restructuring the company.

New tools to cut costs or improve efficiency.

Expenses, schedules, sales, models, forecasts.

Operations Day-to-day actions to keep the company functioning.

Scheduling employees, ordering supplies.

Transactions, accounting, human resource management, inventory.




right information in right time at right levelOperational Level – accuracy & timeliness of information collection

and dissemination is important.

Tactical & Strategic Level – relevance is important.

» Efficiency at Operational level» Effectiveness at tactical & strategic level



Mapping organisational level and structure into the design of any

MIS is very important for its successful implementation.


MIS Design

A collection of components that work together to realize some objective forms a system.

Main components of a system are:

Input OutputProcessing


MIS Design

System Life Cycle

• Organisational process of developing and maintaining systems.

• Helps to establish a system project plan.


MIS Design

Phases of System Design Life Cycle


MIS Design

System Study• problem identification and project initiation• background analysis• inference or findings

Feasibility Study• Workability• Meeting user’s requirements• Effective use of resources• Cost effectiveness.


MIS Design

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


MIS Design

System Design• preliminary or general design• Structure or detailed design

Tools and techniques used for designing:– Flowchart– Data flow diagram (DFDs)– Data dictionary– Structured English– Decision table– Decision tree


MIS Design

Coding

• Coding the new system into computer programming language.

• Defined procedures transformed into control specifications

• Programming phase – computer instructions.


MIS Design

TestingA test run of the system

– Unit testing– System testing– Black box testing– White box testing


MIS Design

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


MIS Design

Maintenance

The review of the system is done for:

• knowing the required changes or the additional requirements

• studying the performance

If a major change to a system is needed, a new project is set up to carry out the change. The new project will then proceed through all the above life cycle phases.


Information System & Quality

ATMsComputerised Railway Bookings

Telephone Network

We do not expect them to fail!



“Quality indicates the degree of excellence of a product or service”

• Software Quality is the ability of a Software to be fit for its purpose.



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


Information Security & Control

Information Breach

– Unauthorised reading of data

– Unauthorised modification of data

– Unauthorised destruction of data



Why break I.T. System Security?

– Revenge

– Money

– Notoriety

– The challenge of doing “IT”



Security Threats

» The External Threats

» The Internal Threats



Security Threats

The External Threats» Organisation’s connection to Internet



Security ThreatsThe Internal Threats

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



We may never be able to eliminate all the security risks.

But we can make it very very hard for them to do so.


information system

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