INFORMATION MANAGEMENT

UNIT I
Data, Information, Intelligence, Information Technology, Information System, evolution, types
based on functions and hierarchy, System development methodologies, Functional Information
Systems, DSS, EIS, KMS, GIS, International Information System.

Data:
Data is a collection of facts usually as the results of
experiences,observation,experiments or process.Data is a plural of Datum.
Data may be in the form of image, figure, word.
Datum:
Datum is a single fact( word, image and figure)
Information :
When data is organized it becomes information.
Information is derived from data and its useful in solving problems.
Eg: input -> Data->processed->output->information.
Knowledge :
When correct conclusion are derived the information it beings in intelligent
and accounts to addition of knowledge.
Knowledge is knowing what works and how it works.
Knowledge is gain frim experience.
Information System:
Information System can be any organized combination of people, hardware,
software, communication networks and data resources that stores, retrives,
transformation and dissemination information in an organization.
Need for Information System:
To support business process.
In will support decision making.
To support top management to get competitive advantage.
Information Technology:
Information Technology is the study development, design, the
implementation support or management of computer based information
system, particularly software application and computer hardware.

 It deals with the use of computer and computer software to convert, store,
product, process transmit and securely retrieve information.
COMPONENTS OF INFORMATION SYSTEM/FRAME WORK:
People (it resources includes end user and information system)
Software (it includes of program and procedure )
Hardware ( it consists of machine and media)
Communication network (it resources consists of communnicatin media and
network support)
Data resources (it includes data and knowledge bases)

People resources (end user

&specialist )

s to ra g e
o f d a ta
Data resources
r ebase
souces
(data
&knowledge )

o u tp u t o f
in fo r m a t io n
p r o d u c t io n
c o n tro l fo
Network resources
s y s t e mmedia &
(communication
the network
p e r f osupport
r m a )n
ce

in p u t o f
d a ta
re s o u rc e
s

Software resources
(program &
procedures)

p r o c e s s in g
d a t a in t o
in fo r m a t io n

Hardware resources (machine

& the media )

Data is transformed by information processing activity into a variety of

information products for end users.
Information processing consists of the system activities of input,
processing, output, storage & control.

CLASSIFICATION OF INFORMATION SYSTEM BASED ON FUNCTION & HIERARCHY:

BASED ON FUNCTION (DIFFERENT FUNTIONAL AREA
MANAGEMENT)

ACCOUNTING INFORMATION SYSTEM

FINANCE INFORMATION SYSTEM
MARKETING INFORMATION SYSTEM
HUMAN RESOUCES INFORMATION SYSTEM
PRODUCTION& OPERATION INFORMATION SYSTEM

BASED ON HIERARCHY (LEVEL OF USERS OF INFORMATION SYSTEM)

TRANSACTION PROCESSING SYSTEM (TPS)

MANAGEMENT INFORMATION SYSTEM(MIS)
DECISION SUPPORT SYSTEM(DSS)
EXECUTIVE INFORMATION SYSTEM(EIS)

INFORMATION ARCHITECTURE
BASED ON HIERARCHY
USERS

BASED ON FUNCTION

STRATEGY

EIS

TOP LEVEL EXECUTIVES

DSS
LEVEL MANAGERS

MIS
LEVEL MANAGER

HR IS

M
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K
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S

TPS

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F
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P
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LOWER LEVEL WORKERS

PRODUCTION & OPERATION MANAGEMENT

SENIOR

MIDDLE

FUNCTIONAL INFORMATION SYSTEM:

1. Every business has different function carry out such functional

area has its own tactical decision & its own model.
2. Information system will support the tactical decision making with
access to data, evaluation of models & presentation of results.
PRODUCTION
OPERATION

ACCOUTING

FINANCE

HUMAN
RESOURCE

MARKETING

PRODUCTION
BUSINESS
BUSINESSBUSINESSBUSINESS
OPERATION
FUNCTION
INFORMATION
FUNCTIONFUNCTIONFUNCTIONFUNCTION
SYSTEM
BUSINESS FUNCTION

ACCOUTING IS

FINANCE IS

HUMAN
RESOURCE
IS

MARKETIN
G IS

Accounting Information System

Accounting information system is a system of records that the business keeps
to maintain its accounting system.
Type of Accounting Information System:
General ledger system:
It used to produce financial statements (profit&loss,balance sheet, cash flow,
fund flow)
Order processing:
It used to capture & process customer order.
Accounts payable system :
It used to maintain data related to amount due to creditors(suppliers)
Accounts receivable system:
It used to maintain data related amount due from debtors(customer)
Payroll system:
Employee salary , wages..

 Inventory control system:

Changes made in inventory (rawmaterials, work in progress, finished goods)

FINANCIAL INFORMATION SYSTEM

Information system that supports financial managers in financing a
business & allocation & control of financial resources.
TYPES OF FINANCIAL INFORMATION SYSTEM
Cash management:
Cash position of a firm (cash receipts, cash payments)
Investment management:
Position of securities & other investments
Capital budgeting:
Related to capital expenditure, selection of projects.
Financial planning:
Relates to forecasting the financial performance & forecasting financial
needs.
PRODUCTION & OPERATION INFORMATION SYSTEM (MANUFACTURING INFORMATION
SYSTEM)
Manufacturing information system is a complete set of tools for managing
the flow of production in the enterprise.
This information system is designed to provide tools for both it operations
personnel who would deliver services to anyone in the planet.
TYPES OF MANUFACTURING INFORMATION SYSTEM
Automation system:
Relates to the automation involved in production
Logistics system:
Relating to delivery of products at the right time.
Material resource planning system (MRP):
Related to resource required for production material required for the planned
production is forecasted.
Manufacturing resource planning (MRP II ):
Relates to all the resource required ( machine, material, men, money)

 Agile manufacturing environment:

Related to the dynamic environment which may impact the production &
operation.
Required changes in plants must be adopted.

Enterprise resource planning:

Enterprise resource planning integrates the entire operation in the enterprise
& provides quick access & update information.
MARKETING INFORMATION SYSTEM:
Marketing information system provides information technology support to
marketing managers regarding the various components of the marketing function.
TYPES OF MARKETING INFORMATION SYSTEM:
Interactive marketing system:
Provides information related to the various marketing mix companents.
(products, price, place, promotion, positioning)
Allow to take decision based on series of question asked & reply given by the
decision maker.
Sales force automation:
Sales force is being offered with notebook computer & web browsers & sales
record data. It helps them to capture & analyze data such automotive
systems help to manage current customer & potential customer.
Customer relation management:
1. Managing customer relation the CRIS
2. CRM aims to provide organization & its employees all details about
customer.
3. It also provides customer about all details regarding organization.

Organization

Customer

Marketing research :
To identify & solve marketing related problem.
Advertising :
1. Help to deciding on advertisement media advertisement budget.
2. To find relationship between advertisement & sales.
Product management:
To manage all products & service including new & old models released.
Product wise sales analysis .
Region wise analysis.

HUMAN RESOURCE INFORMATION SYSTEM:

Human resource information system deals with the flow of information
about the people working in the organization and also future personal needs.

SUBSYSTEM:
Manpower planning: To identify the manpower requirements.
Recruitment & selection: To identify sources to recruit manpower & process
to select them.
HR Development: To develop the employees, identify training needs, help
them in career planning.
Compensation &Benefits : Used for wages & salary administration , fixatin of
benefits & allowance.
Industrial relations: To handle employee grievances.
Establishment of personal records: To maintain records related to going,
performance, disciplinary action etc.
HIERARCHIAL INFORMATION SYSTEM:
The information system is used by different level of employees for
different purposes.
The information system support the decision making needs of the
top management the senior level managers, middle level the managers & lower
level workers.
THE DIFFERENT HIERARCHIAL INFORMATION SYSTEM:
INFORMATION SYSTEM BASED ON HIERARCHY:
EIS

DSS

MIS

TPS

Transaction processing system (TPS):

It is a earliest form.
Tps record & process data resulting from business transactions such as
sales, purchases, inventory changes etc
Tps will be usefull for lower level workets.
It is usefull for day today operation.
Eg: Accounting data, sales order processing

Management information system (MIS):

When information systems are designed to provide accurate timely and
relavant information needed for effective decision making by middle level
managers is call MIS.
MIS is designed to analyse data just not to maintain data.
Decision support system (DSS):
DSS is an interactive computer based system which help the decision makers
to use data & models to solve unstructured problem.
It is helpful to senior level managers & business professionals during decision
making process.

DSS uses:
Analytical models
Specialized database
A decision makers own insight &judgement.
Interactive computer based modelling bases.

Executive information system (EIS):

EIS is type of computer based information system to support to top level
executives starting the critical success factors of an organization.
EIS help to top level executives to make strategic decisions such as
expansion, joint ventures etc
Critical success factors include the book value of a firm market value of the firm
earnings for shares key marketing initiatires etc.
NATURE OF FOCUS
TPS
MIS
DSS
EIS

FOCUS
FOCUS IS ON DATA
FOCUS IS ON INFORMATION
FOCUS S ON DECISION SUPPORT
FOCUS IS ON STRATEGIC DECISION
SUPPORT

EVOLUTION OF INFORMATION SYSTEM:

ABB
TPS
OAS
MIS
DSS
EIS/ES
S
KS/ES
AI

IS
Transaction processing system
Office automation system
Management information
system
Decision support system
Executive information system/
Executive support system
Knowledge system/Expert
system
Artificial intelligence

FOCUS
Data
Communication
Information support
Decision support
Decision support for top executive
Consultation knowledge sharing
Thinking system

AI
KS/ES
EIS/ESS
DSS
MIS
OAS
TPS

1950S

21ST
CENTURYT

In 1950s & 1960s the management are potential of computers to process large
amount of data speedily and accurately.
The activities involved were called electronic processing. Edp is the form of record
keeping. It indicates the use of computers which are manufactured using electronic
equipment's such as transistors.

TPS(Trasaction processing system):

TPS is the earliest form of information system.

Useful for lower level workers for day to day operation.

TPS record & process data resulting from business transaction such as sales,
purchases, inventory changes etc..

MIS (Management information system):

In 1960s there was a shift from data to information. It led to the
development of management information system.
Predefined management reports were available for managers for decision
making purposes.
MIS is helpful for middle level managers to take structure decision.

DSS (Decision support system):

In 1970s the concept of DSS was born .DSS was useful for senior level
managers to take a decision.
It also helped in interactive computing.

EIS/ESS(Executive information system/Executive support

system):
In 1960s the personal computing revolution started what if analysis came
into picture with the help of key critical factors decision had to be taken.
This gave rise to EIS/ESS.EIS is a type of computer based information delivery
& communication system to support top level executives in decisions related
to critical factors.

ES/KS (Eexpert system/knowledge system):

In 1990s expert system was developed ES is an interactive dialog based
system, combining DSS philosophy & expert system, knowledge base system
was introduced.
Definition of knowledge:
Knowledge is a blend of experiences, values, information in context and
insight that form bases for building new experience.
Knowledge system applies the knowledge to meet organization knowledge
priorities.

Mid 1990s saw the development of ERP.

Definition of ERP:

ERP is an organization specific strategic information system. That integrate all

facts of a firm including.

Manufacturing
Planning
Order tracking
Inventory control
Finance management
Human resources management
Sales
Resources management
Customer relation.

AI(Artificial intelligence):
AI is a science & Technology were the goal is to develope computers that can
think & see & hear, talk etc..
A major thrust is to develop computer functions normally associated with
human intelligences (eg) reasoning intelligence, learning, problem solving.

Characteristics of information:
Timeliness:
Information must reach at the right time.
Appropriate:
Only relevant information must be given based on users needs.
Complete:
Entire data needed.
Accurate :
Information must be correct.
Frequency :
Frequency is linked to calendar.
Understandable :
Presentation of information in the eight format so that user can
understand use tables, graph, etc
Current :
Latest information must also be added & updated.
Economical :
Cost of gathering the information must not very costly.
Concise :
Information must be brief and specific.
Relevant :
Only relevant information must be shared.

DSS ( Decision support system ):

It is an interactive computer based system which helps decision maker

to utilize data nad model to solve unstructured problem. (scott Morton)

Classification of DSS:
Classification

Type of operation

Example

File drawer system

Data analysis system
Analysis information
system

Access to data item

Adhoc analysis of data
Adhocanalysis of data
base & small models

Stock queries
Bad payers
Internal sales

Accounting model

Estimate future results

Balance sheet projections

Representation model

Estimate results where

risk is involved

Risk for new profit

Optimization model

Calculating optimized
results subject to
constraints

Production planning

What it analysis

To find out what happens

to other variable

Audit authorization(how
much credit to give)

Activities/Analytical modelling in DSS:

Activities

Description

Examples

what it analysis

To find out what happens

to other variables when
one variable is changed
by a small percentage
To determine the input
value for achieving the
goal
It helps to identify the
appropriate model
required
To identify risk associated
with the alternatives
Visual representation

What happen to sales if

advertising is minimized
by 10%

Goal oriented analysis (or)

Goal seeking analysis
Model building
Optimization/Risk analysis
Graphical analysis

What should be
advertisement if sales
needed is 10lakhs
Developing the sales
forecasting model
What is the best
advertisement budget
Graph showing
advertisement and sales.

Schematic view of DSS:

Intranets internet &
extranets

Computer based
system
Organization
Data
knowledge
base
management

Knowledge base
Model
subsystem
User
inter face
management
User

External model

Data Management system:

It cosists of DSS data base, software, data directory & query facility.

Model Management System:

It contains all models that provide system analytical capability.

User interface:
User communication with & commands the DSS using this subsystem.

Knowledge base management system:

It provides the intelligence to the decision maker view

Advantages of DSS:

It
It
It
It
It

improves problem solving.

improves personal efficiency.
facilitates communication.
promotes learning & training.
increases organization control.

Disadvantage of DSS:

Limited storage capacity.

Limited information sharing.
Translation problem exist when using other external model.
Conflict in decision making scenario.
Slow
Difficult in understanding to know the interdependency.

EIS (Executive information system):

EIS is a computer based information delivery & communication system designed
to support the needs of top executives.

Goal of EIS:
To give information regarding CSF ( Critical success factors) of the organization
top executives.

Feature of EIS:
Drill down capability:
Drill down capability allow executives to look for details on any specific
information. Each level will have submenu {eg:oversales, export vs Domestic
sales, state wise sales, district wise sales, area wise sales, salesman sales}
CSF (critical success factor):
EIS is designed with CSF requirements of top executives.
Status access:
Trend Analysis
&
Exception reporting
To get access to To examine data over
latest data on any
over time.
Variable.

To report on key variances.

Personalized analysis:
Reports on personalized formats.
Navigation of information;
EIS allows navigation is forward tracking backward tracking, skipping of
screen such feature Quick Access.
Present Graphical, Tabular & Test information:
For better visualization.
COMPONENTS OF EIS:

SOFTWARE:
Text based software, database, graphic base & model base.
HARDWARE:
Input device, output device, storage device.
INTERFACE:
Scheduled reports, menu driven reports, question & answer.

TELECOMMUNICATION:
To communicate electronically to all.

CAPABAILITIES OF EIS:

Support for designing Organisation Vision: To provide a plan for next 5 to

10years.
Support for strategic planning: To determine long term objective & scanning.
Support for strategic Organising& staffing: To bring together Physical,
financial and human resources.
To keep organization structure manned.
Support for strategic control: To manage & control the entire operation.
Support for management: To handle emergency situations.

ADVANTAGES OF EIS:

Ease of use at the top level.

Ability to analys trends.
Enhanced personal thinking & decision making.
Improve information efficiency.

DISADVANTAGES OF EIS:

Function are limited.

Costly to implement.
Hard to quantify benefits.
Executives may be overloaded with information.

KNOWLEDGE MANAGEMENT SYSTEM (KMS):

For the structured decision. KMS is a practice that address the need for information
for making effective decision.
If the information is structure decision the can be translated into knowledge
by applying a set of predefined rates.
FEATURE OF KMS:

Purpose : A good way of information sharing.

Context : Information must be organized knowledge can be created and
applied.
Process: It is used to support knowledge intensive processes.
Participants : Every use must play the role actively in knowledge network.
Instruments : KMS supports capture, creation & sharing of codifiable aspects
of experience

COMPONENTS OF KMS:

Business process management:

It can be used for different business process such as HR, finance

production etc.
Content Management:
All the intellectual content of KMS.
Web content management:
It is content related to building a website.
Knowledge application management:
It is software that helps to create knowledge.

TYPES OF KMS:

Enterprise wide kms:

General purpose integrated information.
Knowledge work system:
Specialized workstation.
Eg: CAD, 3D Visualisation, Virtual reality.
Intelligent techniques:
Tools for designing.
EG: expert system, case based reasoning.

ADVANTAGES OF KMS:

Self learning.
Knowledge sharing.
Elimination redancy.

DISADVANTAGES OF KMS:

Confidentiality is lost.
Wrong information system.
Over reliance on the KBS so creativity is lost.
GEOGRAPHICAL INFORMATION SYSTEM (GIS):
It is a special category of DSS use visualization techniques.
It analysis may be in the form of spatial or aspatial data.
It may help delivery manage to find shortest route.
Real estate develop to locate vast lands geodata base is a database with
extention for storing, indexing, querying, manipulating into with spatial data.

GIS CAPABILITIES:

Organization & information.

Visualization with colours& shadows.
Queries about spatial &Aspatial data.
Combination of existing maps to create new maps.
Prediction of information / for future purposes.
Notations used are points & lines.
Analysis spatial data & measurements.

INTERNATIONAL INFORMATION SYSTEM (IIS):

It is distribution information system, which support similar business
activities, highly diverse environment found across the country boundaries.
DIMENSION OF IIS:

Global environment
Corporate Global environment:
Strategy for operation abroad
Global environment:
Environment at different countries.
Corp.Global environment
Structure of the organization:
What will be the structure?
What functions will be carried out in different countries. Structure of oranisation
Management & Business:
How to develop & design business procedure.
Technology platform:
Which technology shall be adopted.
Mktg& business

Technology
platform
TYPES OF IIS:

Transnational information system

Global information system
Collaborative information system

DIFFICULTIES INVOLVED IN IIS:

Technology related difficulties.

Cultural diversity.
Political challenges.
Different standards.
Language difference.
Difference regulation & tariff.