Technology For Management

4 Credits
Prof. Hemalatha S, Assistant Professor
 Module 1:

Introduction to Information
System
 CONCEPTS OF INFORMATION SYSTEM
Data: Data refers to raw, unprocessed facts, figures, or symbols.

Information: Information is data that has been processed, organized, structured, or

contextualized in a way that gives it meaning and relevance.

Knowledge is what we know. Knowledge is unique to each individual and is the accumulation
of past experience and assign meaning to, information.
 Role of data in Information decision making

• Data Collection
• Data Storage and Management
• Data Processing
• Data Analysis
• Information Generation
• Contextualization
• Decision Making
TYPES OF INFORMATION
 SYSTEM

The word System is derived from Greek word Systema, which means an organized
relationship between any set of components to achieve some common cause or objective.

A system is “an orderly grouping of interdependent components linked together according to

a plan to achieve a specific goal.”
ELEMENTS OF A SYSTEM
Outputs and Inputs:
• The main aim of a system is to produce an output which is useful for its user.
• Inputs are the information that enters into the system for processing.
• Output is the outcome of processing.

Processor(s):
• The processor is the element of a system that involves the actual transformation of input into
output.
• It is the operational component of a system. Processors may modify the input either totally
or partially, depending on the output specification.
• As the output specifications change, so does the processing. In some cases, input is also
modified to enable the processor for handling the transformation.
Control
• The control element guides the system.
• It is the decision–making subsystem that controls the pattern of activities governing input,
processing, and output.
• The behavior of a computer System is controlled by the Operating System and software. In
order to keep system in balance, what and how much input is needed is determined by
Output Specifications.

Feedback
• Feedback provides the control in a dynamic system.
• Positive feedback is routine in nature that encourages the performance of the system.
• Negative feedback is informational in nature that provides the controller with information for
action.
Environment:
• The environment is the “super system” within which an organization operates.
• It is the source of external elements that strike on the system.
• It determines how a system must function. For example, vendors and competitors of
organization’s environment may provide constraints that affect the actual performance of the
business.

Boundaries and Interface:

• A system should be defined by its boundaries. Boundaries are the limits that identify its
components, processes, and interrelationship when it interfaces with another system.
• Each system has boundaries that determine its sphere of influence and control.
• The knowledge of the boundaries of a given system is crucial in determining the nature of its
interface with other systems for successful design.
 PROPERTIES OF A SYSTEM
Organization
Organization implies structure and order. It is the arrangement of components that helps to
achieve predetermined objectives.

Interaction
It is defined by the manner in which the components operate with each other.
For example, in an organization, purchasing department must interact with production
department and payroll with personnel department.

Interdependence
Interdependence means how the components of a system depend on one another. For proper
functioning, the components are coordinated and linked together according to a specified plan.
The output of one subsystem is the required by other subsystem as input.
 PROPERTIES OF A SYSTEM
Integration
Integration is concerned with how a system components are connected together. It means that
the parts of the system work together within the system even if each part performs a unique
function.

Central Objective
The objective of system must be central. It may be real or stated. It is not uncommon for an
organization to state an objective and operate to achieve another.
The users must know the main objective of a computer application early in the analysis for a
successful design and conversion
 TYPES OF SYSTEM

The systems are categorized on the basis of various measures and norms.
• Classification by Form and Appearance
• Classification by Existence
• Classification by Boundary
 Classification by Existence

1) Natural Systems :
The systems existing in the 'nature' are natural systems. These are not artificial nature.
The natural system's exists because of the natural processes. The various examples of
the natural systems are listed below :

• Stellar Systems : Galaxies, solar systems etc.

• Geological Systems: Rivers, mountain ranges, etc.
• Biological Systems : Humans.
• Molecular Systems : Complex organizations of atoms.
 Classification by Existence
2) Man-Made Information Systems :
Systems created by human beings are known as man made information system. These systems
are artificial and have the broad variety of capabilities.

Man-made systems include several things as :

• Formal Information System − It is based on the flow of information in the form of memos,
instructions, etc., from top level to lower levels of management.
• Informal Information System − This is employee based system which solves the day to day
work related problems.
• Computer Based System − This system is directly dependent on the computer for managing
business applications. For example, automatic library system, railway reservation system,
banking system, etc.
 Classification by Form and Appearance
1) Physical Systems :
• Physical systems are tangible entities. We can touch and feel them.
• Physical System may be static or dynamic in nature.
For example, desks and chairs are the physical parts of computer center which are static.
A programmed computer is a dynamic system in which programs, data, and applications can
change according to the user's needs.

2) Abstract systems
• They are non-physical entities or conceptual that may be formulas, representation or model
of a real system.
For example, a business model is a conceptualization of the business organisation, and hence an
abstract system. An algorithm used for solving a problem or an equation written to represent a
physical system is another example of an abstract system.
 Classification by Form and Appearance
The abstraction of complex systems into model form uses various business
models. Some significant abstract models are :

• Schematic
• Flow system
• Static system
• Dynamic system
Schematic: A schematic model is two dimensional chat depicting system elements and their
linkages.
Flow system: A flow system model shows the flow of the material, energy, and information that
hold the system together. i.e it specifies the flow of logic in models. A widely used example is PERT
(program evaluation and review technique).It is used as a project management planning tool used
to calculate the amount of time it will take to realistically finish a project.
Static system: This type of model exhibits one
pair of relationships such as activity-time or cost-
quantity. A widely used example is Gantt chart.
This chart gives a static picture of an activity –
time relationship.

Dynamic system: Dynamic systems are constantly

changing system. ex:- business organizations are
dynamic systems. A dynamic model approximates
the type of organization or applications that
analysts deal with.
 Classification by Boundary

Depending upon the boundary, the system is categorized in two types:

• An open system must interact with its environment. It receives inputs from and delivers
outputs to the outside of the system. For example, an information system which must adapt
to the changing environmental conditions.

• A closed system does not interact with its environment. It is isolated from environmental
influences. A completely closed system is rare in reality.
 INFORMATION SYSTEM

Definition :
“Information systems are combinations of hardware, software, and telecommunications
networks that people build and use to collect, create, and distribute useful data, typically in
organizational settings.”
 Information System (IS) Triangle

PEOPLE Business Strategy:

The actors who

interact in a
business process

Organizational BUSINESS INFORMATION Information

Strategy: PROCESSES TECHNOLOGY Strategy:

Goal oriented Hardware / Software

activities conducted used to facilitate
by a business business activities
 CHARACTERISTICS OF IS

Accessible Must be easily accessible by users to meet their needs in the right format at the right time.
Access should be secure and prevent unauthorized access.

Contains no discrepancies, and the same measurements or structure are used regardless of the
Consistent
data source.

Complete Contains all information and is not missing anything.

Timely Delivered when needed.
Accurate Free of errors and bias, and can be verified or validated.

Cost Balance the value of information to the cost of producing it.

Relevant Important to decision makers.
Clear Not overly complex, easy to understand.
 ROLE OF IS
Operational Efficiency: Information systems streamline and automate business processes,
leading to increased operational efficiency. They enable organizations to manage and optimize
their day-to-day activities, reducing manual effort, minimizing errors, and improving productivity.

Decision Making: IS provides decision-makers with accurate, relevant, and timely information,
allowing them to make informed choices. Decision support systems (DSS) and business
intelligence tools help in analyzing data and generating insights, which aid in strategic and
tactical decision-making.

Strategic Advantage: Information systems can offer a competitive advantage to organizations. By

leveraging technology and data-driven insights, companies can identify market trends,
customer preferences, and emerging opportunities, which enables them to innovate and stay
ahead of competitors.
 ROLE OF IS
Communication and Collaboration: IS facilitate effective communication and collaboration
among employees, teams, and departments. They enable real-time sharing of information,
documents, and resources, regardless of geographical locations, fostering teamwork and
enhancing organizational cohesion.

Customer Relationship Management (CRM): Information systems play a pivotal role in

managing and analyzing customer data. CRM systems help organizations build and maintain
strong relationships with customers by providing insights into their preferences, behaviors, and
needs.

Supply Chain Management (SCM): Modern supply chains are complex, involving multiple
suppliers, distributors, and partners. IS help in managing the entire supply chain by optimizing
inventory, tracking shipments, and coordinating production and distribution processes.
 ROLE OF IS
E-Commerce and Online Business: Information systems are the backbone of e-commerce and
online business operations. They enable online transactions, secure payment processing, order
fulfillment, and customer support.

Knowledge Management: IS facilitate the collection, organization, and retrieval of knowledge

within organizations. This helps preserve institutional knowledge, share best practices, and
foster innovation.

Risk Management: Information systems assist organizations in identifying and managing risks.
They enable data-driven risk assessments, compliance monitoring, and the implementation of
security measures to protect sensitive information.

Innovation and Research: Information systems support research and innovation by providing
tools for data analysis, simulations, and modeling. They are essential in fields such as scientific
research, healthcare, and engineering.
 Components of IS

P 1. P: People

S N 2. N: Networking
3. C: Communication

T Information
Systems C 4. I: Information
5. D: Data

H I 6. H: Hardware

D 7. T: Technology
8. S: Software
 COMPONENTS OF INFORMATION SYSTEM
People (P): People are the users, stakeholders, and participants in the information system. They
interact with the system to input, process, retrieve, and use information. This includes
individuals at all levels of an organization, from end-users to management.

Networking (N): Networking refers to the connections and communication infrastructure that
allows various components of the information system to communicate and share data. This
includes local area networks (LANs), wide area networks (WANs), and the internet.

Communication (C): Communication is the process of exchanging information and data

between individuals, systems, and devices within the information system. Effective
communication mechanisms facilitate collaboration and data sharing.

Information (I): Information is the processed and organized data that is meaningful and relevant
to users. Information provides insights and knowledge that support decision-making and other
business functions.
 COMPONENTS OF INFORMATION SYSTEM
Data (D): Data are raw facts and figures collected from various sources. Data is processed and
transformed into information through analysis, interpretation, and organization.

Hardware (H): Hardware refers to the physical equipment that supports the functioning of the
information system. This includes computers, servers, networking devices, input/output devices,
and storage devices.

Technology (T): Technology encompasses the tools, techniques, and methodologies used to
design, develop, implement, and maintain the information system. It includes both hardware
and software components.

Software (S): Software includes the programs, applications, and operating systems that enable
users to interact with and manipulate data. Software is a key component that provides
functionality to the information system.
 FUNCTIONS OF INFORMATION SYSTEM
Data Collection and Entry: Information systems allow for the collection and entry of various
types of data, including customer information, transactions, inventory levels, and more.

Data Storage and Management: Information systems store and manage data in structured
databases, ensuring data integrity, security, and accessibility.

Data Processing and Analysis: Information systems process and analyze data to extract insights,
patterns, trends, and relationships, helping organizations make informed decisions.

Information Presentation: Information systems present processed data and analysis results in
user-friendly formats such as reports, charts, graphs, and dashboards.

Communication and Collaboration: Information systems facilitate communication and

collaboration among individuals and teams, allowing them to share information, documents, and
ideas.
 FUNCTIONS OF INFORMATION SYSTEM
Automation of Tasks: Information systems automate repetitive tasks and processes, improving
efficiency and reducing the risk of errors.

Decision Support: Information systems provide tools and data to support decision-making,
offering simulations, scenarios, and forecasts to evaluate different options.

Transaction Processing: Information systems handle and process transactions, ensuring accuracy
and consistency in activities like sales, purchases, and financial transactions.

Knowledge Management: Information systems capture, store, and share knowledge within an
organization, facilitating learning, innovation, and best practices.

E-commerce and Online Business: Information systems support online transactions, order
processing, and customer interactions in e-commerce and online business environments.
 FUNCTIONS OF INFORMATION SYSTEM
Security and Access Control: Information systems implement security measures to protect
sensitive data and control user access based on roles and permissions.

Monitoring and Reporting: Information systems monitor system performance, user activities,
and other metrics, generating reports and analytics to assess effectiveness.

Workflow Management: Information systems manage and optimize workflows by providing

tools for task assignment, tracking, and coordination.

Resource Allocation: Information systems help allocate resources effectively by providing

insights into resource utilization and demand forecasting.

Strategic Planning and Analysis: Information systems contribute to strategic planning by offering
data-driven insights about market trends, competitive analysis, and growth opportunities.
 CHALLENGES OF INFORMATION SYSTEM
Security and Privacy Concerns: Information systems often handle sensitive data, and
maintaining security to prevent data breaches, unauthorized access, and cyberattacks is a critical
challenge.

Integration Complexity: Many organizations have multiple information systems, and integrating
these systems to share data seamlessly can be challenging. Legacy systems might not be
compatible with newer technologies, leading to data silos and inefficiencies.

Data Quality and Integrity: Maintaining accurate and consistent data across various systems is a
challenge. Inaccurate or outdated data can lead to poor decision-making and operational
inefficiencies.
 CHALLENGES OF INFORMATION SYSTEM
Change Management: Implementing new information systems often requires changes to
workflows, processes, and employee roles. Managing resistance to change and ensuring smooth
transitions can be difficult.

Cost Management: Developing, implementing, and maintaining information systems can be

expensive. Balancing the costs of implementation against the potential benefits and long-term
operational costs is a challenge.

User Adoption and Training: Users might resist adopting new systems, or they may not use them
effectively due to lack of training. Providing comprehensive training and support is crucial for
successful system adoption.
CONVERSION/IMPLEMENTATION METHODS
 DIRECTION CONVERSION

• With direct changeover, the old system stops getting used one
day and the new system starts being used the next

• The changeover is very fast and that's where the

name 'direct' comes from
 PARALLEL CONVERSION
• With parallel running, the old system and the new system are run alongside each other for
period of time
• Data would be input into both the old system and the new system, producing two
sets of results
• For Example -In a billing system, both the old system and the new system would produce an
invoice.
• When staff are sure they can use the new system and that it is functioning properly, the old
system is switched off.
• At this point, the new system will be used exclusively
 PHASED IMPLEMENTATION
• This type of changeover is where the new system is implemented one part at a time,
in phases

• When each part of the new system has been fully tested and is known to work correctly, the
next part is phased in

• Eventually the old system will be fully replaced

 PILOT IMPLEMENTATION
• Implementing a new system using the pilot running
changeover method involves introducing the new
system to one part of the company first and then
rolling it out to other departments later

• This method is a good way to test that the system

works properly without having to massively restructure
the company

• The term 'pilot' can be defined as 'to experiment or

test before introducing something more widely'
CLASSIFICATION OF INFORMATION SYSTEM
TRANSACTION
PROCESSING
SYSTEM(TPS)
OPERATING PROCESS
SUPPORT CONTROL
SYSTEM SYSTEM(PCS)
ENTERPRISE
COLLABORATIO
INFORMATION N SYSTEM(ECS)
SYSTEM MANAGEMENT
INFORMATION
SYSTEM (MIS)
MANAGEMENT DECISION
SUPPORT SUPPORT
SYSTEM SYSTEM (DSS)
EXECUIVE
INFORMATION
SYSTEM (EIS)
 OPERATIONS SUPPORT SYSTEMS

• The role of operational support system is to efficiently process business transaction,

control industrial process support enterprise communication and update corporate
database.
• The Information system generally deals with the support of business operations
known as operation support system produces a variety of information product for
external and internal use, however such products produced by OSS needs further
processing for efficient use by manager
• TYPES OF OSS:
• TPS: TRANSCATION PROCESSING SYSTEM
• PCS: PROCESS CONTROL SYSTEM
• ECS: ENTERPRISE COLLABORATION SYSTEM
 IS#1: TPS – TRANSACTION P RO CES SING SYSTEM
⮚ Transaction Processing System (TPS) is a type of
Information System that collects, stores, modifies,
retrieves the data transactions of an enterprise.

⮚ Used primarily for record keeping which is needed

in any organization to conduct the business

⮚ Used for periodic report generation – on demand

and in a scheduled manner

⮚ Examples: Airline reservation systems,

Banking
and Insurance Account Processing Systems,
Electronic Transfer of Funds,
Information etc., Healthcare
TPS
 TYPES OF TPS
1 Batch Processing
As the name suggests, the processing of transactions takes place over batches. These batches
can be customized as per organization requirements.
For example, a company may want to process the payroll of its employees in a weekly or bi-
weekly manner, thus the batches of employee salaries will be processed over a span of one and
two weeks respectively. There is generally a time delay in this type of processing.

Processing in a Batch
Batch processing is the traditional way of processing transactions. In this method, the
transactions are collected, combined, and grouped in batches. These batches can be identified
based on several parameters. Generally, the FIFO method is followed to do so. These batches
are collected and stored and can be processed at any time. There is usually some time delay in
the batch processing method.
 TYPES OF TPS

2 Real-time Processing

Under real-time processing, every single transaction is processed with immediate effect. There
is no time delay in the real-time processing system.

Under this method, the transactions are processed in real-time and provide instant
verification for the same as well. A real-time TPS can be accessed remotely as well over the
cloud.
COMPONENTS OF TPS
 COMPONENTS OF TPS
Primary Components of a Transaction Processing System (TPS)

• Inputs: The source documents fetched from the transactions made by customers or
organizations and contain information regarding money. These may be bills, invoices, coupons,
customer orders, etc.

• Outputs: The documents generated after the complete processing of the inputs are called
outputs.

• Processing units: Processing refers to the step where the information provided at the input
step is broken down into segments to be processed into relevant output.

• Storage: The location in the memory where all the desired information is stored is called
memory. Generally, the information is stored in the form of ledgers.
Advantages of using TPS

• It is a highly cost-effective and fast solution to all the revenue-related operations of any
given organization.
• It works through a highly stable and reliable database that stores and reflects the
information as and when desired without any risk of information loss.
• It allows for a quick recovery from any operational failure causing a very little delay in the
transaction processing.
• It allows remote functioning giving the freedom of free operation to businesses who want
to grow across the globe.
• It can be used both in a real-time manner and batch-processing manner.
Disadvantages of using TPS

• Every business has different needs that must be dealt with exclusively. This calls for designing
a customized solution for every single business that has some specific requirements.
• Though it is a cost-effective solution, the initial cost of setting up and installation can be on
the higher side.
• Even with a highly sophisticated setup, you may need to deploy a large number of workforces
for data input, managing and recording inventory, etc.
• Though TPS is designed for handling a lot of data and work, overloading may lead to a system
crash.
• There should be certain specification of the hardware for TPS software to work smoothly.
 PROCESS CONTROL SYSTEM (PCS):
• In a manufacturing organization, certain decisions are made by a computer system without
any manual intervention. In this type of system, critical information is fed to the system on a
real-time basis thereby enabling process control. This kind of systems is referred as process
control systems.

• Process control refers to the methods which are employed for controlling the variables of
the process or processes used in the manufacturing of a product. It is the act of controlling a
final control element to change manipulated variable to maintain the process variable at a
desired set point.
 ADVANTAGES OF PCS
• energy savings - energy wastage is reduced when your plant and machinery are efficiently
operated

• improved safety - control systems automatically warn you of any abnormalities which
minimizes the risk of accidents

• consistent product quality - variations in product quality are kept to a minimum and reduce
your wastage

• lower manufacturing costs - detecting faults early means throughput, yield and quality are
maintained

• improved environmental performance - systems can give you an early warning of a rise in
emissions
 ENTERPRISE COLLABORATION SYSTEMS

Enterprise collaboration systems are a cross-functional information system that enhances

communication, coordination, and collaboration among the members of business teams and
workgroups. It is an information system used to facilitate efficient sharing of documents and
knowledge between teams and individuals in an enterprise.
COMPONENTS OF ECS
 MANAGEMENT SUPPORT SYSTEM
Management Support Systems are the systems used by management to support managerial
decision making. MSS are computer-based systems that provide information that is useful for the
management. MSS are a collection of all advanced computer technologies for supporting
solutions of managerial problems.

Methods of MSS are:

• MIS: Management Information System
• DSS: Decision Support System
• EIS: Executive Information System
 Management Information System (MIS)
• Management Information System (MIS) is a computer-based system that provides
information to the management, to help in decision-making and effective business
management.
• There are two terms in MIS, ‘management’ and ‘information systems’, which should be
understood separately.

• Management is the process of planning, organizing, directing, and controlling the resources
of an organization to attain business objectives effectively.

• Information system refers to a set of interrelated components that collect, store, process,
generate and disseminate information for effective business decision making.

• MIS collects data from various sources, processes it, and transforms it into meaningful and
useful information.
• For example, input from a point of sale system can be used to analyze trends of products that
are performing well and those that are not performing well. This information can be used to
make future inventory orders i.e. increasing orders for well-performing products and reduce
the orders of products that are not performing well.

Examples of management information systems include;

• Sales management systems – they get input from the point of sale system
• Budgeting systems – gives an overview of how much money is spent within the organization
for the short and long terms.
• Human resource management system – overall welfare of the employees, staff turnover, etc.
 Decision support system (DSS)
• Decision support system (DSS) is a specific class of MIS system that helps the manager at all
stages of decision-making like problem identification, selection of relevant data, picking up
the right approach and examining alternatives.

• A system which supports the process of decision making is known as decision support system
(DSS). This helps in supporting only and not automating the process of decision making.

• With the help of decision support system, decision maker can retrieve the information and
find the alternate solutions in the process of problem solving.
Example of DSS :
• Logistic System
• Financial Planning System
• Group Decision Support System (GDSS)
• Computer Supported Co-operative Work (CSCW)
COMPONENTS OF DSS
• Data management sub-system comprises of a database that contains appropriate data
related to the situation and is managed by the database management system (DBMS)
software.

• The data management sub-system can be connected to this corporate data warehouse. A
corporate data warehouse refers to the library of corporate relevant decision-making
data.

• The data is stored and accessed by database web server. The element of data
management sub-system are as follows :
i) Database management system
ii) Query facility
iii) DSS database
iv) Data directory
i) Database management system: A Database Management System is software that allows
users to store, organize, manage, and retrieve data from a database.

ii) Query facility: A query facility refers to the capability of a database system to allow users to
formulate and execute queries against the stored data. It enables users to retrieve specific
information from the database using query languages like SQL (Structured Query Language).

iii) DSS database: A DSS database is designed to support decision-making processes within an
organization. It typically contains historical and current data that can be analyzed and
transformed into actionable insights

iv) Data directory: It includes information about tables, columns, data types, relationships,
constraints, and other database objects. The data directory helps in maintaining data integrity,
managing database objects, and providing a reference for database administrators and
developers
2. User Interface Sub-System -
This sub-system is a critical component that facilitates communication and interaction
between users (typically decision-makers) and the DSS. It ensures that users can effectively
use and navigate the DSS to obtain valuable insights and make informed decisions.

3. Model Management Sub-System -

Model management sub-system includes modelling languages that are used for building
custom models. This sub-system is responsible for managing the various models that the DSS
uses to assist decision-makers.
• Modeling Languages: These are languages used to create custom models that reflect
specific scenarios or problems relevant to the organization. These models are the
foundation for analysis and decision-making within the DSS.

• Corporate and External Storage: The models can be stored within the organization's
internal systems (corporate storage) or external sources. The availability of models from
external sources can enhance the DSS's capabilities by incorporating a broader range of
expertise and insights.

• Model Base Management System (MBMS): This refers to a software package or system that
houses various types of quantitative models. These models can span statistical, financial,
management science, or other domains. The MBMS provides the necessary tools to manage,
organize, and utilize these models effectively.
• Analytical Capabilities: The models stored in the MBMS provide the DSS with analytical
capabilities. These capabilities enable the DSS to perform calculations, simulations,
predictions, and other types of analyses that support decision-making processes.

• Software Management: The MBMS not only houses the models but also provides tools for
managing and maintaining these models. This might involve version control, updates, and
integration with other parts of the DSS infrastructure.

• Application Servers: The MBMS solution is typically implemented and operated on

application servers. Application servers provide a platform for hosting and running software
applications, including the DSS and its model management components.
4. Knowledge Based Management Sub-System -
The knowledge-based management sub-system is a key part of this. It can work independently
or support other sub-systems as needed. Its role is to enhance decision-makers' understanding
and insights. This knowledge is accessible through web browsers, making it convenient for
users to access and utilize.
 Constructing a Decision Support System (DSS)
Identify Needs: Understand the specific decision-making challenges and needs that the DSS
should address. This involves clear communication between end users (decision-makers) and
those responsible for building the DSS.

Define Objectives: Clearly define the objectives the DSS should achieve. This includes
specifying the types of decisions it will support and the specific insights required.

Gather Data: Collect the necessary data that the DSS will analyze. This could involve internal
data, external data sources, historical data, and real-time information.

Choose Tools: Select the appropriate tools and software for building the DSS. These might
include database management systems, modeling software, and visualization tools.

Design Models: Create models that represent the decision-making scenarios. These models
could involve financial calculations, statistical analyses, simulations, or other relevant
techniques.
Implement Interfaces: Design user interfaces that allow end users to interact with the DSS. This
might include forms, dashboards, and other elements for inputting data and receiving results.

Integrate Data: Integrate the collected data into the DSS and ensure it's structured properly for
analysis.

Develop Algorithms: Develop algorithms or rules that the DSS will use to analyze data and
provide insights. This could involve scripting or programming to ensure the system performs the
required calculations.

Testing and Refinement: Test the DSS with sample data to ensure it produces accurate results.
Gather feedback from end users and refine the system based on their input.
User Training: Train the end users on how to use the DSS effectively. This includes explaining
how to input data, interpret results, and make decisions based on the insights provided.

Deployment: Roll out the DSS for regular use by end users. Monitor its performance and
address any issues that arise.

Feedback Loop: Maintain an ongoing feedback loop with end users. Periodically assess whether
the DSS is meeting their needs and make adjustments as necessary.

Continuous Improvement: Over time, continue to refine and enhance the DSS based on
changing requirements, new data sources, and evolving decision-making needs.
 Executive Information System (EIS)

• An Executive Information System (EIS) is a kind of decision support system (DSS) used in
organizations to help executives in decision making. It does so by providing easy access to
important data needed in an organization to achieve strategic goals. An EIS usually has
graphical displays on a user-friendly interface.

• Executive information systems can be used for monitoring company performance in many
different types of organizations as well as for identifying opportunities and problems.

• Executive support systems are intended to be used directly by senior managers to support
unscheduled strategic management decisions.
 ROLE OF EIS
Strategic Decision-Making: This helps them make informed decisions about long-term
strategies, investment opportunities, market positioning, and other critical aspects that impact
the organization's future direction.

Access to Relevant Information: EIS aggregates data from various sources, both internal and
external, and presents it in a user-friendly format.

Real-time Monitoring: EIS provides real-time or near-real-time updates on key performance

metrics and indicators. This enables executives to identify emerging issues, monitor progress
toward goals, and make timely adjustments to strategies as needed.

Cross-Functional Insights: EIS integrates data from different departments and functions within
the organization. This helps executives understand how different areas are interconnected and
how decisions in one area may impact others.
 ROLE OF EIS
Scenario Analysis: Executives can use EIS to perform scenario analysis by simulating different
business scenarios and their potential outcomes. This allows them to evaluate the impact of
various decisions before implementation.

Data Visualization: EIS often includes data visualization tools such as graphs, charts,
dashboards, and reports that make complex data more understandable and accessible. Visual
representations of data facilitate quick comprehension and aid in identifying trends and
patterns.

Competitive Analysis: EIS can provide insights into competitors' activities, market trends, and
industry benchmarks. This information assists executives in positioning their organization
effectively within the competitive landscape.
 ROLE OF EIS
Risk Management: EIS can highlight potential risks and uncertainties by presenting relevant
data and analysis. Executives can then make informed decisions to mitigate risks and enhance
the organization's resilience.

Resource Allocation: EIS helps executives allocate resources (financial, human, and
technological) more efficiently by identifying areas of opportunity or areas that require
additional investment.

Communication and Collaboration: EIS promotes better communication and collaboration

among executives by providing a centralized platform for sharing information and discussing
strategic initiatives.
 Other types of Information Systems

IS

ES KMS SIS BIS OAS

EXPERT KNOWLEDGE STRATEGIC BUSINESS OFFICE

SYSTEM MANAGEMENT INFORMATION INFORMATION AUTOMATION
SYSTEMS SYSTEM SYSTEM SYSTEM
 OTHER TYPES
STRATEGIC INFORMATION SYSTEMS:

A strategic information system has been defined as, “The information system to support or
change enterprise’s strategy.” Simply says, a Strategic Information System is a type of
Information System that is aligned with business strategy and structure.
 STRATEGIC GRID
McFarlan (1984) proposed the strategic grid that allows the visualization of the relationship
between IT strategy and business strategy and operations.

This model analyses the impacts of IT existent applications (present) and of applications
portfolio (future), defining four boxes, with each representing one possible role for IT in the
enterprise:
• "Support,"
• "Factory."
• "Turnaround," and
• "Strategic".
STRATEGIC GRID
Support: Low operational impact, low strategic impact. This quadrant is about local process
improvements for individual users.

Factory: High operational impact, low strategic impact. This quadrant is about operational
improvements that affect large portions of the firm, and are aimed at improving performance or
decreasing cost.

Turnaround: Low operational impact, high strategic impact. This quadrant is about exploiting
new technologies to provide strategic opportunities.

Strategic: High operational impact, high strategic impact. IT organizations that have most
projects in this quadrant understand that IT can both improve core operations of the firm while
simultaneously generating strategic options.
 STRATEGIC FIT
Strategic fit refers to the degree to which an organization's information systems align with its
overall business strategy and objectives. Achieving strategic fit involves ensuring that the
capabilities and functions of information systems support and enhance the organization's
strategic goals.

Key considerations for achieving strategic fit in SIS include:

• Alignment with Business Strategy
• Flexibility and Adaptability
• User Engagement
• Data Integration
 KNOWLEDGE MANAGEMENT SYSTEM
Knowledge management is the process by which an enterprise gathers, organizes, shares and
analyzes its knowledge in a way that is easily accessible to employees. This knowledge includes
technical resources, frequently asked questions, training documents and people skills.

Examples of knowledge management systems

• FAQs
• webinars
• training programs
• case studies
• forums or community features
 TYPES OF KNOWLEDGE
Explicit knowledge: This type of knowledge is codified -- meaning it is found in books, files,
folders, documents, databases and how-to videos -- and is most easily extracted and handled by
a knowledge management system.

Tacit knowledge: It is based on experience and practice and often helps in achieving long-term
goals. This type of knowledge transfer is difficult, as it lies with a single person. There is no easy
way to extract it as with explicit knowledge, leaving the knowledge-holder with the task of
writing it down or creating a video. Some examples of tacit knowledge include identifying the
right moment to launch into a sales pitch or developing leadership skills.

Embedded knowledge. This knowledge is found in systemic processes, routines, manuals,

structures and organizational cultures. It is embedded formally through management initiatives
or informally as organizations use and apply the other two knowledge types.
 BUSINESS INFORMATION SYSTEM
A group of interrelated components that work collectively to carry out input, processing,
output, storage and control actions in order to convert data into information products that can
be used to support forecasting, planning, control, coordination, decision making and operational
activities in an organization.

The main components of a business information system can be classified into five basic
resources:
• People,
• Hardware,
• Software,
• Communications, and
• data.
Types of Business Information Systems
Some of the main types of business information systems are:
• Transaction processing systems (TPSs).
• Accounting information systems (AISs)
• Management Information Systems (MISs).
• Decision Support Systems (DSSs).
• Enterprise resource planning systems (ERP) systems
 EXPERT SYSTEM
An expert system is an advanced computer application that is implemented for the purpose of
providing solutions to complex problems, or to clarify uncertainties through the use of non-
algorithmic programs where normally human expertise will be needed.
COMPONENTS OF EXPERT SYSTEM
Knowledge base – a set of rules as representation of the expertise, mostly in IF THEN
statements.

Working storage – the data which is specific to a problem being solved.

Inference engine – the code at the core of the system which derives recommendations from the
knowledge base and problem-specific data in working storage.

User interface – the code that controls the dialog between the user and the system.
There are certain major roles of individuals who interact with the expert system to fully exploit
its functionality and capability. They are the:

Domain expert – the individual or individuals whose expertise are solving the problems the
system is intended to solve;

Knowledge engineer – the individual who encodes the expert’s knowledge in a form that can be
used by the expert system;

User – the individual who will be consulting with the system to get advice which would have
been provided by the expert.

System engineer – the individual who builds the user interface, designs the declarative format
of the knowledge base, and implements the inference engine.
 OFFICE AUTOMATION SYSTEM
Office Automation System:-The application of computers to handle the office activities is also
called as office automation.
Different office activities can be broadly grouped into the following types of operations:-

Document Capture – Documents originating from outside sources like incoming mails, notes,
handouts, charts ,etc need to be preserved.
Recording utilization of resources- includes record keeping in respect to specific resources
utilized by office personnel.
Calculations-Include the usual calculator functions like routine arithmetic operations for bill
passing, interest calculations ,etc.
Document Creation-Consists of preparation of documents, dictation, editing of texts.
Filing,Search,Retrieval and Follow up: related to filling, indexing, searching of documents which
takes up significant time.
Receipts and Distribution- Includes distribution of correspondence to designated recepients
 CLASSIFICATION OF OAS
Electronic Publishing:- Electronic publishing systems include word processing and desktop
publishing. Word processing software, (e.g., Microsoft Word, Corel Word-Perfect) allows users
to create, edit, revise, store, and print documents such as letters, memos, reports, and
manuscripts.

Electronic Communication:- Electronic communication systems include electronic mail (e-mail),

voice mail, facsimile (fax), and desktop videoconferencing.

Electronic Collaboration:- Electronic collaboration is made possible through electronic meeting

and collaborative work systems and teleconferencing
Image Processing: Image processing systems include electronic document management,
presentation graphics, and multimedia systems. Imaging systems convert text, drawings, and
photographs into digital form that can be stored in a computer system.

Office Management: Office management systems include electronic office accessories,

electronic scheduling, and task management. These systems provide an electronic means of
organizing people, projects, and data. Business dates, appointments, notes, and client contact
information can be created, edited, stored, and retrieved.
 ARTIFICIAL INTELLIGENCE
Artificial Intelligence is defined as the process where a machine tries to make decisions like a
human brain. A collection of technologies known as artificial intelligence (AI) enables computers
to carry out a range of complex tasks, such as the ability to see, hear, interpret, and translate
spoken and written language, analyze data, generate suggestions, and more.
 FEATURES OF AI
• Learning: AI systems have the ability to learn from data and improve their performance over
time.
• Reasoning: AI can perform complex reasoning tasks, including problem-solving, decision-
making, and logical deduction.
• Perception: AI systems can interpret and understand data from various sources, such as
images, text, and sensor inputs.
• Automation: AI can automate repetitive and labor-intensive tasks, reducing the need for
human intervention in many processes.
• Adaptability: AI systems can adapt to changing conditions and new data, making them
versatile for a wide range of applications.
• Scalability: AI algorithms can handle large datasets and complex computations, making them
suitable for big data analytics and other high-volume tasks.
 ADVANTAGES AND DISADVANTAGES
ADVANATAGES: DISADVANATAGES:
• Efficiency • Lack of Common Sense
• 24/7 Availability • Job Displacement
• Cost Reduction • Bias and Fairness
• Data Analysis • Data Dependency
• Personalization • Privacy Concerns
• Safety • Ethical Challenges
• Complexity and Cost
CLASSIFICATION OF AI
 FUZZY LOGIC CONTROL SYSTEM
Fuzzy Logic Systems (FLS) produce acceptable but definite output in response to incomplete,
ambiguous, distorted, or inaccurate (fuzzy) input.

Fuzzy Logic (FL) is a method of reasoning that resembles human reasoning. The approach of FL
imitates the way of decision making in humans that involves all intermediate possibilities
between digital values YES and NO.

the human decision making includes a range of possibilities between YES and NO, such as −
CERTAINLY YES
POSSIBLY YES
CANNOT SAY
POSSIBLY NO
CERTAINLY NO
Fuzzy Logic Systems Architecture
It has four main parts as shown −
Fuzzification Module − It transforms the system inputs, which are crisp numbers, into fuzzy sets.
It splits the input signal into five steps such as −

LP x is Large Positive

MP x is Medium Positive

S x is Small

MN x is Medium Negative

LN x is Large Negative
Knowledge Base − It stores IF-THEN rules provided by experts.

Inference Engine − It simulates the human reasoning process by making fuzzy inference on the
inputs and IF-THEN rules.

Defuzzification Module − It transforms the fuzzy set obtained by the inference engine into a
crisp value.
Membership functions allow you to quantify linguistic term and represent a fuzzy set
graphically. All membership functions for LP, MP, S, MN, and LN are shown as below −
EXAMPLE:
Step 1 − Define linguistic variables and terms
Linguistic variables are input and output variables in the form of simple words or sentences. For
room temperature, cold, warm, hot, etc., are linguistic terms.
Temperature (t) = {very-cold, cold, warm, very-warm, hot}

Step 2 − Construct membership functions for them

The membership functions of temperature variable are as shown −
Step3 − Construct knowledge base rules
Create a matrix of room temperature values versus target temperature values that an air conditioning
system is expected to provide.

RoomTemp.
Very_Cold Cold Warm Hot Very_Hot
/Target

Very_Cold No_Change Heat Heat Heat Heat

Cold Cool No_Change Heat Heat Heat

Warm Cool Cool No_Change Heat Heat

Hot Cool Cool Cool No_Change Heat

Very_Hot Cool Cool Cool Cool No_Change

Build a set of rules into the knowledge base in the form of IF-THEN-ELSE structures.

Sr. No. Condition Action

IF temperature=(Cold OR Very_Cold) AND target=Warm THEN Heat
1

IF temperature=(Hot OR Very_Hot) AND target=Warm THEN Cool

2

IF (temperature=Warm) AND (target=Warm) THEN No_Change

3
Step 4 − Obtain fuzzy value
Fuzzy set operations perform evaluation of rules. Combine all results of evaluation to form a
final result. This result is a fuzzy value.

Step 5 − Perform defuzzification

Defuzzification is then performed according to membership function for output variable
 NEURAL NETWORKS
Neural networks are mathematical models that essentially engage in two different phases.

First is the learning phase, wherein the model trains to perform a specific task.

And the second is the application stage, wherein the finished model is used. While both the
phases can be integrated together, for systems that never stop learning, they are capable of
working separately as well.
Input layer represents dimensions of the input vector.
Hidden layer represents the intermediary nodes that divide the input space into regions with
(soft) boundaries. It takes in a set of weighted input and produces output through an activation
function.
Output layer represents the output of the neural network.
Feed Forward ANN
In this ANN, the information flow is unidirectional. A unit sends information to other unit from
which it does not receive any information. There are no feedback loops. They are used in
pattern generation/recognition/classification. They have fixed inputs and outputs.
Feed Back ANN
Here, feedback loops are allowed. They are used in content addressable memories.
 Advantages of Artificial Neural Network
• Learning Ability – One of the main advantages of ANNs is their ability to learn and adapt to
new situations. They can be trained on large datasets and learn patterns that are not easily
discernible by humans.
• Non-Linear Relationships – ANNs are capable of learning non-linear relationships between
inputs and outputs, making them useful in a wide range of applications such as image and
speech recognition.
• Fault Tolerance – ANNs are also able to tolerate faults, meaning that they can still function
correctly even if some of the neurons in the network are damaged or destroyed.
• Parallel Processing – Another advantage of ANNs is their ability to perform many
calculations simultaneously, which allows them to process large amounts of data quickly
and efficiently.
• Generalization Ability – ANNs can generalize from examples they have seen during training
and apply their learning to new data. This means that they can make accurate predictions
even on data they have not seen before.
 Disadvantages of Artificial Neural Network
• Overfitting – ANNs can sometimes become too specialized and only able to work with a
specific type of data. This can lead to overfitting, where the network becomes so focused on
the training data that it’s unable to generalize to new data.
• Limited Interpretability – Unlike traditional statistical models, ANNs are often considered
“black boxes,” meaning we don’t always understand how they arrived at their conclusions.
This can be a disadvantage in situations where we need to know how the network made a
particular decision.
• Computationally Expensive – Training an ANN can require a lot of computational power and
time, especially for large datasets. This can be a disadvantage for organizations that don’t
have access to powerful computing resources.
• Data Requirements – ANNs require a large amount of data to learn effectively. If the dataset
is small or biased, the network may not be able to learn the underlying patterns and
relationships between the data points.
• Sensitivity to Noise – ANNs can be sensitive to noise in the data, which can lead to
inaccurate predictions or classifications. It’s important to preprocess the data to reduce
noise before feeding it to the network.
 APPLICATIONS
Image Recognition:
Object Detection, Facial Recognition, Medical Imaging.

Natural Language Processing (NLP):

Language Translation, Sentiment Analysis, Chatbots.

Speech Recognition:
Virtual Assistants, Transcription Services
 VIRTUAL REALITY

Virtual Reality (VR) is a technology that creates a computer-generated simulation of a three-

dimensional environment or experience, often designed to immerse users in a lifelike or
fantastical digital world. VR technology typically involves the use of specialized hardware and
software to deliver an immersive sensory experience that can include visual, auditory, and
sometimes even tactile sensations.
 ADVANTAGES
Enhanced User Experience: VR provides a highly immersive and realistic experience, allowing
users to interact with AI-driven environments and simulations in a more natural and engaging
way.
Training and Simulation: VR in AI is extensively used for training purposes. It allows individuals
to practice and gain expertise in various fields, such as medicine, aviation, and military, without
real-world risks.
Data Visualization: Complex data sets can be visualized in 3D virtual environments, making it
easier to understand and analyze data patterns, particularly in scientific research and data
exploration.
Education: VR combined with AI can create interactive and adaptive educational experiences,
catering to the specific needs and learning pace of individual students.
Therapy and Rehabilitation: VR-based therapy and rehabilitation programs leverage AI to
adapt to the patient's progress and needs, making it more effective and engaging.
Realistic Simulations: AI-powered VR can create realistic simulations for architectural design,
urban planning, and product prototyping, enabling better decision-making and design
validation.
 DISADVANTAGES
Cost: Implementing VR with AI can be expensive, as it requires specialized hardware and
software, making it less accessible for smaller businesses and individuals.
Motion Sickness: Some users experience motion sickness or discomfort when using VR systems,
limiting the duration and effectiveness of VR experiences.
Technical Challenges: VR systems are technically complex, and issues like latency, tracking
accuracy, and hardware limitations can affect the overall user experience.
Isolation: Extended use of VR can lead to social isolation as users are physically disconnected
from the real world while immersed in a virtual one.
Content Creation: Developing high-quality VR content with AI integration can be time-
consuming and requires expertise in both AI and VR development.
Ethical Concerns: Privacy and ethical issues may arise when using VR in AI, especially in
scenarios involving data collection and surveillance within virtual environments.
Accessibility: VR systems may not be accessible to individuals with certain disabilities, limiting
their use and reach.
Learning Curve: Both VR and AI technologies have a learning curve, which can make them
challenging for some users to adopt and fully utilize.
 APPLICATIONS
1. Healthcare: practitioners who need to get familiar with the hospital environment can do so
without the extra stress involved.
2. Entertainment: VR is being introduced to cinemas and theme parks to simulate movie-like
adventures and let people experience their favorite cinematographic masterpieces.
3. Automotive: VR helps car manufacturers in analyzing road scenarios and the behavior of cars.
4. Education : For students, VR is part of educational games, field trips, and in general
experiencing the world.
 APPLICATIONS
5. Space & Military: VR provides conditions for making things as close to reality as possible for
training.
6. Architecture : This allows them to experience the space before it is built and make real-time
changes to deliver customer satisfaction.
7. Digital Marketing: There are a variety of applications of VR in digital marketing. For example,
retailers can show potential customers how a product will look in their home. Or nonprofits can
create more empathetic messaging for political issues.
8. Occupational Safety : These workplace dangers can be addressed in a simulated environment
so workers can learn how to respond to them effectively without being hurt.
9. Social Science and Psychology: Much of this industry relies on VR so that a patient can
embody someone else and imagine reality from a different perspective or worldview. Immersive
environments can leave positive impacts on future social interactions.
10. Tourism: Try a holiday before you buy it. One pointed virtual reality application is tourism.