INFORMATION MANAGEMENT

Unit 1: Introduction
 Content

• Data, Information, Intelligence

• Information Technology

• Information System, evolution, types based on functions and

hierarchy

• System development methodologies

• Functional Information systems

• DSS, EIS, KMS and GIS

• International Information system

MSM-MBA 2020 Even Semester 2
 Data

• Refers to collection of facts –result of experience, observation or

experiment or process.

• Data – consists of numbers, words, or images, or observations of set

of variables

• Data – raw material for information

• Defined as group of non random symbols – represents quantities,

objects, actions and etc.,

• Raw facts and figures – has no meaning

MSM-MBA 2020 Even Semester 3
 Information

• Information derived from data and in solving problems

• Definition – Information is the meaning that a human assigns to

data by means of the known conversations used in their
representation

• Collection of data - information

Data Processing Information

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 Characteristics of Information

1. Timeliness 6. Understandability
2. Appropriateness 7. Relevant
3. Accuracy 8. Completeness
4. Conciseness 9. Current
5. Frequency 10. Economical

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 Knowledge

• Knowledge – facts, feelings or experiences

known by a person or a group of people
• It is the result of learning and is stored in an
individual brain or encoded in documents,
product, facilities and concepts

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 Intelligence

- Collection and use of information

- Intelligence requires inferences as to how the
information relates to the specific issue or decision.
- Intelligence – related to the possession and creation
of knowledge

Contd…

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- In other words one’s capacity for logic, abstract,
though, understanding, self-awareness,
communication, learning, emotional knowledge,
memory, planning, creativity and problem solving
- Miller suggests that “data, when organized becomes
information; information, when analyzed becomes
intelligence
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 Diagrammatic representation of Data, Knowledge,
Information and Intelligence

• Basic understanding of data, information, intelligence and

knowledge
• Helps in “Knowledge Management system” understanding

Data Context

Information Meaning

Intelligence Experience

Knowledge

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 Information technology

• One of evolutionary factor transformed the business - Information

technology (IT)
• Ability to capture, store, process and distribute information is
critical to most organizations
• Managers – responsible for using and managing information and
technology
• Information technology – tool to provide effective customer
service, analyze market opportunities and manage production and
operations
MSM-MBA 2020 Even Semester 10
 Impact of Information Technology

• Applications of information technology designed to

improve in three areas:
1. Effectiveness – Focus on quality
2. Efficiency – Input and output ratio – focus on
quantity
3. Transformation – Radical change – rethinking of
process Contd…

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 Three levels of impact

1. Impact on the individual – work made simple

2. Impact on functional unit – automate specific

business process

3. Impact on organization – competitive

advantage

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 Components of Information Technology

• Five major components of information Technology

1. People – Essential and vital in organization

2. Hardware – Physical devices and materials used

3. Software – sets of programs or information processing

instructions
4. Data – Important resources

5. Network – Internet, intranet, VPN and connection between

servers and clients
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Advantages of Information technology

• Impact on globalization

• Communication speed ups

• Cost effectiveness

• Bridging cultural gaps

• Beyond time limits

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Disadvantages of Information Technology

1. Creates unemployment

2. Privacy and safety issues

3. Lack of Job security

4. Cultural change (Good to bad)

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 Application of Information technology

I. Education: III. Entertainment

- Access to variety of learning - Digital TV

resources - Streaming music
- Collaborative learning - Wi-Fi, CDMA or GPRS
II. Business and Industry technologies

- Customer relations IV. Medicine

- Business operations - CT scan/MRI scan – diagnosis

- Industrial productivity - Genomic research

MSM-MBA 2020 Even Semester 16

 Information system

• Information systems – computer systems

• A system is a collection of people, machine and
methods organized to accomplish a set of specific
tasks
• A system – integrated set of components or entities –
interrelated and interdependent subsystems

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 Schematic representation of system concepts

Feed forward

Input Process Output

Feedback
Components and basic process involves input, process and output
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 Information system – Definition

• Information system is a set of people, procedures

and resources that collects, transforms and
disseminates information in organization.
• Components of Information system – 1. People 2.
Hardware 3.Software 4. Communication networks
5. Data resources
Contd…

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• Information system categorized into two:

1. Manual Information system

2. Computer based Information system

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Difference between Manual and computer based IS

Manual Information System Computer based Information

System

Recorded in papers Recorded in software and computer

hard disk

Less popular More popular

Economical but less effective Costly but most effective

More risk (lack of data backup) Less risk (Back up data)

MSM-MBA 2020 Even Semester 21

 Evolution of Information System

1. Early 1960’s:
Until 1960, Information system – simple
transaction processing (EDP) Electronic data
processing – for record keeping and accounting
MIS (Management Information System) Conceived –
managers needed information for decision making
Contd…
process
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2. Year 1970:

MIS – not adequately meeting decision making needs

DSS (Decision Support system) – supports decision

making process – tailored to the needs of unique

decision making style of a manager

Contd…

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• Year 1980:

- rapid development of microcomputer processor,

application software and telecom networks
- Critical information – Executive information system
(EIS) support the decision making
- AI (Artificial Intelligence) – sensors, train data and
automated decision making Contd…

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• Early 1990:

- Emergence of strategic information system

(SIS).
- IT becomes integral component of business
process gain competitive advantage
Contd…

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• Mid year 1990:

ERP (Enterprise resource planning) – a form of

SIS integrates – planning, manufacturing, sales,
resource management, CRM (Customer
relationship management), Inventory control
and so on. Contd…

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• Late 1990:

- the rapid growth of the internet, intranets,

extranets and other interconnected global

networks.

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Model representation of Information system

Software
People Control of system
Resources
resources performance

Input of data Processing of Output of resources

resources data (Information)

Storage of data
resources
Network
resources

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 Types of Information System

• Information system based on

Functions
• Information system based on
Management hierarchy

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 1. Information System based on Functions

1. Manufacturing functions – Manufacturing/production

and operations information systems
2. Accounting functions – Accounting Information system

3. Finance functions – Financial Information system

4. Marketing function and sales – Marketing Information

system
5. Human resource functions – (HRIS) Human resource
Information System
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2. Information system based on Hierarchy

• Different types of information systems –

serve different functions – in different

levels of organization

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Schematic diagram of IS based on hierarchy

Executive Information
EIS System Executives

DSS Decision Support

system
Senior
Managers

MIS Management
Information system
Middle
managers

TPS Transaction
processing system Workers

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1. Executive information system (EIS) – tailored to the strategic information
needs of top management

2. Decision support system (DSS) – Interactive, computer based information

system (CBIS) uses decision needs and specialized databases for effective
decision making

3. Management Information System (MIS) – system – which defined data

are collected, processed and communicated to assist mangers.

4. Transaction processing system (TPS) – record and process the business

transaction data such as sales, purchases and inventory changes

Manual/Electronic data processing system

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 Roles of Information system

1. Operational Excellence - Improves productivity, quality and reduce

delivery time

2. New products, services and business models – Re-engineer and re-think

of models

3. Customer/supplier intimacy – get close with customers and touch with

suppliers

4. Improved decision making – right information at right time for accurate

and precise decision making

5. Competitive advantage – Gain an advantage over other competition

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6. Survival – Profit making and primary motive of any industry
Functions of Information system

Control
of data

Input of Processing of Output of

data data Data

Storage
of data

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 Scope of Information system

1. Provide fast and accurate transaction processing

2. Provide large capacity and fast access storage

3. Provide fast communications

4. Reduce information overload

5. Span boundaries

6. Provide support for decision making

7. Provide a competitive weapon

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 System development methodologies

• System methodology – a body of methods,

rules and postulates
• System – should meet the needs or
requirements
• So system development needed – user +
technical analyst
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 System development process

• System analysis and design – similar to problem solving

• System analyst – responsible for analyzing work methods and

procedures to simplify work

• Process of system analysis involves steps as follows:

1. Define the problem

2. Develop an understanding of the system

3. Identify and evaluate the alternatives

4. Select and implement

5. Evaluate the impact

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 There are 5 types of system development
methodologies

1. System development life cycle (SDLC)

2. Waterfall model

3. Prototyping model

4. Rapid application development (RAD)

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 I. System Development life cycle

• Systems – designed and implemented using a systematic development

process

• Steps in SLDC:

1. Investigation phase

2. Feasibility analysis/Study

3. System analysis

4. System design

5. Implementation – Acquisition of resources, testing, training,

documentation, and conversion

6. Maintenance MSM-MBA 2020 Even Semester 40

Advantages: Disadvantages:
1. Control 6. Inflexible

2. Accountability 7. Time consuming

3. Error detection 8. Lack of changes

4. Systematic approach 9. Poor Documentation

5. Formal documents and 10. Implementation of user

procedures needs

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 II Waterfall model

• Systematic and sequential approach to software development

Feasibility
Feasibility report
study
Requirement analysis Project plan
and specification
Design Document
Design
Programs
Coding and Test plan
unit testing reports
Integration & and
* Advantages and disadvantages system testing manuals

Maintenance

MSM-MBA 2020 Even Semester 42

 III Prototyping Model

• Applicable where project - incomplete,

inconsistent and unclear requirements
• Build prototype to help understand
requirements
• Prototype – working model of actual system –
for complicated and large systems
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 Steps of Prototyping

St • Identify the user’s basic requirements

ep
1
St • Develop the initial /working prototype
ep
2
St • Use the prototype for further requirements
ep
3
St • Revise and enhance prototype
ep
4
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• Advantages: • Disadvantages:
1. Clarity 1. High cost
2. Best for not It literate 2. Throw away
users 3. Slow process
3. Provide judgment to 4. More involvement of
capability of developer clients
4. Risk identification 5. Too many changes
5. Good environment
6. Takes less time to
complete
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 Spiral model

• Proposed by Boehm – is an evolutionary software process

model
• Combines prototyping and linear sequential

Quadrants in spiral model:

1. First quadrant – determine objectives, alternatives, constraints

2. Second quadrant – Identify and resolve risks

3. Third quadrant – develop next level product

4. Fourth quadrant – plan next phase

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• Advantages: functionality
1. Risk identification at • Disadvantages:
early stages 1. Costly
2. Visible prototype to 2. Risk dependent
users 3. Not suitable for small
3. Suitable for high risk projects
projects 4. Difficult to meeting buget
4. Flexible for adding MSM-MBA 2020 Even Semester 47
 (RAD) Rapid Application Development model

• Incremental software process model – short

development cycle
• Involves high speed adaption

Step 1: Requirements planning

Step 2: user design *Advantages and disadvantages

Step 3: Construction
Step 4: Implementation
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 Functional Information System

• System that provides detailed information for a specific or

related type of activities
Features:
1. Consists of several smaller information systems

2. Information system both independent and also

interdependent
3. It forms organization wide information system

4. Interface with environment

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Representation of functional information system

Human resource:
Marketing: 1.Compensation
1. Customer analysis
relationship Functional 2. Employee skill
management inventory
2. Interactive Information
3. Personal
marketing System requirement
3. 3. Sales force forecasting
automation

Accounting:
1. Order Finance Production or
processing 1. Cash operations
2. Inventory management 1. Manufacturing
control 2. Credit
resource
3. Accounts management
3. 3. Investment planning
receivable
4. Payroll management 2. Manufacturer
5. Accounts 4. Capital
payable budgeting
6. . General 5. Financial
ledger forecasting
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 1. Financial accounting system

1. General ledger

2. Fixed assets

3. Sales order processing

4. Accounts receivable

5. Account payable

6. Purchase order processing

7. Inventory control

8. Payroll
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2. Marketing Information system

• Includes

1. Sales system

2. Advertising system

3. Sales promotion system

4. Warehousing systems and

5. Pricing systems

6. POS systems

7. Delivery tracking
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 3. Production Information Systems

1. Purchasing systems 7. Automated materials

2. Receiving systems handling systems

3. Quality control systems 8. CAD (Computer Aided design)

4. Shipping systems and manufacturing systems

5. Cost accounting systems 9. Materials selection systems

6. Inventory control systems 10. Shop floor scheduling

systems

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Human resource Information System (HRIS)

• Module includes:

1. Position control systems

2. Employee information systems

3. Performance management systems

4. Government reporting systems

5. Applicant selection and placement systems

6. Training systems

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 Decision Support system

• Refers to a class of systems - supports the

process of decision making
• DSS – an interactive computer based system –
utilize data and model to solve unstructured
problems

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 Characteristics of DSS

1. Provide rapid access to information

2. Handle large amount of data
3. Provide report and presentation flexibility
4. Offer both textual and graphical orientation
5. Support Drill down analysis
6. Perform complex and sophisticated analysis
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 Functions of DSS

1. What if analysis

2. Goal Oriented

3. Risk analysis

4. Model building

5. Graphical analysis
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 Components of DSS

1. Data Management subsystem

2. Model Management subsystem

3. User interface subsystem

4. Knowledge based management

subsystem
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 Classification of DSS

• 56 type of DSS are there, some are listed below;

1. File drawer system

2. Data analysis system

3. Analysis Information system

4. Accounting models

5. Representational models

6. Optimization models

7. Suggestion models
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 Steps in designing DSS

Phase 1: Choosing the project or problem Phase 6: Knowledge component

to be solved Phase 7: Packaging

Phase 2: Selecting software and hardware Phase 8: Testing, Evaluation and

Phase 3: Data acquisition and management improvement

Phase 4: Model subsystem acquisition and Phase 9: User training

management Phase 10: Documentation and maintenance

Phase 5: Dialogue subsystem and its Phase 11: Adaptation

management

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• Advantages: • Disadvantages:
1. Improving personal 1. Limited storage capability
efficiency 2. Slow in process
2. Improving problem 3. Limited information
solving sharing
3. Facilitating 4. Functional difficulty
communication 5. Require extensive
4. Promoting learning or knowledge
training 6. Translation problem
5. Increasing organizational 7. confliction
control
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 Applications and scope of DSS

1. Intelligence report

2. Medical industry

3. Agricultural industry

4. Air traffic control

5. Company meeting and voting support

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 Executive Information system (EIS)

• Executive information system / Executive support system (ESS)

• Management information system – facilitates and support the

information and decision making needs
• Main goal of EIS – to provide top executives with immediate
and easy access to information about Critical success factor
• EIS is a computer based information delivery and
communication system designed to support the needs of top
executives
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 Characteristics of EIS

1. Drill down capabilities

2. Designed with CSF (Critical success factor)
3. Status access, trend analysis and exception
reporting
4. Support for strategically control
5. Support for crisis management
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• Advantages: capacity

1. Accessible for top level • Disadvantages:

executives 1. Functions are limited
2. Ability to analyze trends 2. Hard to quantify benefits
3. Better reporting system 3. System may become slow,
4. Better understanding of large and hard to manage
enterprise operations 4. Difficult to keep current data
5. Increased communication
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Applications of ESS/EIS

• Manufacturing

• Marketing

• Financial

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 Knowledge Management system

• Knowledge management – process of identifying,

collecting, presenting and transforming information

into knowledge

• Foster innovation and improve the performance

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 Features of KMS

• Purpose

• Context

• Processes

• Participants

• Instruments

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 Components of KMS

• Business process management

• Content management

• Web content management

• Knowledge applications
management
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 Types of KMS

• Enterprise wide system

• Knowledge work system

• Intelligent techniques

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• Advantages: • Disadvantages:

1. Information sharing 1. Confidentiality issues

2. Elimination of 2. It is not a static system

redundancy of work 3. Possibility of collecting
3. Self-learning and storing wrong
information
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 Geographic information system (GIS)

• It has two meanings:

1. Earth and 2. geographic space

• GIS – a special category of DSS
• Data visualization technology
• Decision making inform of digitalized image
• GIS – captures, stores, analyses, manages and present
data that refers or linked to location
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 Purposes/need of GIS

1. To support decision making

2. To support general research
3. To collect, manipulate and use spatial data in
database management
4. To produce standardized and customized
cartographic production

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Functionalities of GIS

1. Organization
2. Visualization
3. Queries
4. Combination
5. Predictions
6. Analysis

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 International Information System

• International Information system – distributed IS support similar

business activities in highly diverse environments.
Developing International information system:
1. Global environment

2. Corporate global strategies

3. Structure of the organization

4. Management and business process

5. Technology platform
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Types of International Information System

1. International information system

2. Transnational information system
3. Multinational information system
4. Global information system
5. Collaborative or cooperative information
system
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Components of International information system

1. Data inputs

2. Operational components

3. Data output

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 Issues and challenges

1. Computing platforms and systems integration

2. Connectivity issues

3. Software issues

4. Technological challenges

5. Cultural differences

6. Political challenges

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The End

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