Data V/s Information Data – Raw facts or observations, typically about physical or business transactions. Group of non-random / unstructured symbols in the form of text, numbers, images or voice representing quantities, actions or objects.
Data V/s Information Information – Conversion (organization) of raw data into useful / meaningful form. Proper arrangement / organization of raw facts into useful messages. Ex - Reports
Types of Information – 1. Strategic Information – Needed for long term planning / taking decisions. It contains specific, precise & straightforward information. For Ex – Diversification of Business, Opening Overseas branches, 2. Tactical Information – Needed for short term planning / taking decisions. Used for Control the functioning of the organization. For Ex – Developing policies, HR Planning, Changing the credit limit of customers / Stock Limit, Forecasting , etc.,
3. Operational Information – Needed for day to day operations of organization. It is well structured & more voluminous. For Ex – Employee Attendance Maintenance, Re-order of goods, Receiving Orders from customers, Rules & Regulations, etc. 4. Statutory Information – Information which are required by a law / Regulators / Govt. authorities. For Ex – Filing annual Tax, P/L statements, Compliance Reports to Regulators, Pollution Compliance Report, Labour compliance reports, Affiliation reports, etc. ,
Strategic Role of Information Within the Organization : Need to all the functional departments for a variety of needs. Used in all the management functions like strategic planning, organizing, management control, operational control, .
Strategic Role of Information 2. Outside the organization : Government, Regulators, Auditors, Share holders etc. Government need various information to monitor & control activities like frauds, irregularities, etc, Regulators – SEBI / RBI / IRDA / TRAI. Used to market the products / services. To build partnerships with other companies.
Qualities of Effective Information – Accurate Complete Trans worthy / Credible Timely Up to date Relevant Brief – Without repeating the same contents Significance Understandable
An Information System is an organized combination / assemblage of people, hardware, software, communication networks and the data resources that collects, transforms, Process and disseminates information in organization. Information System
Need of an Computer based IS Repeated processing of same data. Processing of large volume of data. Fast processing is needed for timely information. Increase in the complexity of business. Operations scattered in different geographical locations. Reducing the cycle time & delighting the customer. Cost cutting.
INFORMATION TECHNOLOGY Hardware Software Databases Networks Other related components are used to build INFORMATION SYSTEMS Payroll System Inventory System Marketing System Customer Service System IT Vs IS
Organization as an IS
Classification of IS Information Systems Operations Support System Management Support System Transaction processing systems Process control systems Office automation systems Management information systems Decision support systems Executive information systems
Transaction Processing System (TPS) A TPS is scrutinized for conformance to the rules, policy or guidelines. A system that handles a business’s routine and recurring information transaction and records complete fundamental business exchanges. Used at Operational level of the organization.
Transaction Processing System (TPS) Handle routine, yet critical tasks. Perform simple calculations. It helps an organization to add value to its products & services. Goals of TPS are – To automate repetitive information processing activities. Increase speed. Increase accuracy. Greater efficiency.
Management Information System The process of effective and efficient planning, organizing, leading, implementing, controlling and adjusting a set of people, procedures, and resources that collects, transforms and disseminates information in a organization. Providing right information to the right people in the right format at right time. Helps middle managers for monitoring, controlling, decision -making, and administrative activities.
It summarizes and reports on the basic operations. Characteristics of MIS – Routine information for routine decisions. Operational efficiency. Use transaction data (TPS) as main input. Databases integrate MIS in different functional areas.
Overview of MIS
Goals of the MIS – Enhances communication among employees. Support the organization’s strategic goals and directions.
Uses of the MIS – Effective Planning. Improving the quality of decision. Improving the efficiency of operations and generating accurate results. Minimizing the duplication of efforts. Controlling activities. Possible clerical cost reduction. Intangible benefits. Improved work environment & job satisfaction.
Applications of MIS – Generating various kinds of reports like Scheduled reports, Demand reports, Exception reports, Drill Down report, etc., Short term Forecasting - Sales forecasting, Capital forecasting, Manufacturing planning and scheduling, Inventory management and planning, Advertising and product pricing.
Decision Support Systems (DSS) System used to support specific decision making & Problem solving. Interactive support for non-routine decisions or problems. Decision makers insight & judgment are needed to control the decision process. It strive to make effective decisions on unstructured or semi -structured problems via., analyzing part of the problem.
Decision Support Systems (DSS) It can also be used for future forecasting. It enables Collection of data, analytical models and user friendly software to support a decision making. Use internal & external data. Advanced Graphical capabilities & GUI for analysis purpose. It is usually on-line & related to real time. Helping to automate managerial processes.
Structure of Decision Support System Model Management System Data Management Dialog Management Internal and External Databases User ... Supporting Tools
Functions of DSS – Model Building – Identifying most appropriate model (Financial, Statistical, Graphical, Project Management Model). What if Analysis – Assessing the impact of changes, value & the inter-relationships of model variables. Goal Seeking – Determining the input required to achieve a certain goal.
Risk Analysis – It allows decision makers to determine risk associated with various alternatives. Graphical Analysis – It helps managers to understand large volumes of data & identify the impacts of various courses of action.
Applications of DSS - Product pricing, sales / service profitability[future forecast], Capital forecasting, other financial forecasting, risk calculations, etc., For Ex - Selection of Vendor Comparative sales figures between one week and the next. Projected revenue figures based on new product sales assumptions.
Executive Support Systems (ESS) / EIS Specialized decision support system used at the middle & top level management of an organization. Helps top executives for tracking critical success factors that are important for achieving a firm’s strategic objectives. This systems filter, compress and track critical data. It employs advanced graphics software to provide highly visual and easy-to-use representations of complex information and current trends.
Executive Support Systems (ESS) / EIS These systems are not designed to solve specific problems, but to tackle a changing array of problems. ESS provides a generalized computing and telecommunications capacity that can be applied to a changing array of problems. ESS enables the executive to ‘drill down’ quickly to lower levels, in areas of particular interest to them.
Features / Properties of an ESS – Easy To Use. Access To Data. Data Analysis. Quality Presentation. Tailored to Individual Executives. Support the Need for External Data. Have a Future Orientation.
ESS Supports for – Strategic planning Strategic organizing and staffing Strategic control Crisis management
Advantages of ESS – Access a broader range of information faster in a more focused way. Condensed information reduces the amount of data to be reviewed. A clear link to business objectives. The best use of technology. Recognize the existence of problems and managing the solution of those problems. Having the capacity to integrate with other systems.
Types of Information used in ESS – Predictions, speculations, forecasts, estimates (78.1%) Explanations, justifications, assessments, interpretations (65.6%) News reports, industry trends, external survey data (62.5%) Schedules, formal plans (50.0%) Opinions, feelings, ideas (15.6%) Rumors, gossip (9.4%) Major Commercial ESS Software Vendors - Comshare Inc. (www.comshare.com) Pilot Software Inc. (www.pilotsw.com)
Relationship b/w different ISs Figure 2-9
Office Automation System (OAS) To automate office procedures & make them more efficient & productive. OAS refers to the use of computer and software to digitally create, collect, store, manipulate, and transfer office information needed for accomplishing basic tasks and goals. It will going to alter the nature of office work altogether. It helps in reducing the office/clerical personnel.
Basic functions of OAS – Data Storage And Manipulation – Word processing, Spread sheet application, Image handling, Desktop publishing. Data Exchange Data Management Advantages – Office automation can get many tasks accomplished faster. It eliminates larger staff. Efficient memory management. Multiple user can use simultaneously.
Dis – advantages – Workplace resistance Initially takes time to adjust to new system. Training of personnel to effectively use an office automation. It requires huge amount of money to implementation and maintenance. It can leads to some health problems.
Networking Group of computers and other devices connected in some ways so as to be able to exchange data. It primarily fulfills the requirement of communication. Each of the devices on the network can be thought of as a node. Each device can be geographically located anywhere.
Features of networking – It allows sharing of hardware resources like printer, scanner, disk drives, modems. It allows the information to share across the company. It enables the electronic transfer of mail, document or data. It enables interaction b/w different computers for the purpose of processing, sharing & communicating. It enables endless integration of the business functions & operating divisions.
Advantages of Networking – 1. A user can logon to a computer anywhere on the network and access their work files from the file server. 2. Resource Sharing Hardware (computing resources, disks, printers) Software (application software) 3. Communication – Email, Message broadcast. 4. It saves money and time. 5. It is easy and convenient to monitor users. 6. Remote computing.
Types of Networks LAN (Local Area Network) - Network in small geographical Area (Room, Building or a Campus) Example – Within Office, cyber cafe, office intercom. 2. MAN (Metropolitan Area Network) - Network in a City / region. Example – MTNL, A chain of community colleges. 3. WAN (Wide Area Network) - Network spread geographically (across Country or across Globe). Example – Internet, Intranet, Extranet.
Network Topology The network topology defines the way in which computers, printers, and other devices are connected. A network topology describes the layout of the wire and devices as well as the paths used by data transmissions. Three commonly used network topologies are – Bus topology Ring topology Star topology Tree topology
1. Bus Topology – All computers and devices connected to central cable or bus. Allows information to be directed from one computer to the other. Consists of a main run of cable with a terminator at each end.
2. Ring Topology – Cable forms closed ring or loop, with all computers and devices arranged along ring. Data travels from device to device around entire ring, in one direction. Uses a Packet / frame / token to pass information from one computer to the other.
A frame travels around the ring, stopping at each node. If a node wants to transmit data, it adds the data as well as the destination address to the frame. The frame then continues around the ring until it finds the destination node, which takes the data out of the frame.
3. Star Topology – All devices connect to a central device, called hub. All data transferred from one computer to another passes through hub.
4. Tree Topology – A tree topology connects multiple star networks to other star networks.
Factors to consider while choosing Topology : Cable Type – Bandwidth, distance, environmental condition. Cable length Scalability Reliability Cost Security
Telecommunication Network Telecommunication is communication of information by electronic means (signals) over some distance. It is a collection of compatible h/w & s/w arranged to communicate. It can transmit text, graphic images, voice or video files.
Telecommunication Network Essential components of a telecommunication system – Computer to process I/p or O/p devices for sending & receiving & terminals. Communication channels such as phone lines, co-axial cable, fibre-optic cable & wireless transmission. Processors such as modem, multiplexers, controllers. Software such as protocols.
Channels of Telecommunication Means by which signals (data) are sent from one computer to another (either by cable or wireless means ). 1. Twisted Pair Cable -
2. Co – Axial Cable -
3. Fibre Optic Cable –
Wireless Communication
Channels of Wireless Systems Wireless LANs Satellite Systems Paging Systems Bluetooth
Applications of Telecommunication Network – E-mail Searchable Data (Web Sites) E-Commerce Internet Telephony (VoIP) Video Conferencing Chat Groups Internet Radio