INFORMATION MANAGEMENT

UNIT I
 DATA
Data refers to a collection of facts usually as the result of
experience, observation or experiment, or processes within a
computer system, or a set of premises.
Data may consists of numbers, words, or images, particularly as
measurements or observation of a set of variables. Data is
often viewed as a lowest level of abstraction from which
information and knowledge are derived.
Definition of Data:
According to the Ackoff, “Data are symbols that represents
properties of object, events and their environment. They are
products of observation. To observe is to sense. The
technology of sensing instrumentation is, of course, to be
highly developed”.
 Information is interrelated data. Information is equivalent to finished goods
produced after processing the raw material. The information has a value in
decision making. Information brings clarity and creates an intelligent
human response in the mind.
According to Davis and Olson : “Information is a data that has been
processed into a form that is meaningful to recipient and is of real or
perceived value in the current or the prospective action or decision of
recipient.”
Characteristics of Information :
The parameters of a good quality are difficult to determine for information.
Quality of information refers to its fitness for use, or its reliability. Following are the
essential characteristic features :
i) Timeliness :
Timeliness means that information must reach the recipients within the
prescribed timeframes. For effective decision making, information must reach the
decision-maker at the right time, i.e. recipients must get information when they need
it. Delays destroys the value of information. The characteristic of timeliness, to be
effective, should also include up-to-date, i.e. current information.
ii) Accuracy :
Information should be accurate. It means that information should be free from
mistakes, errors &, clear. Accuracy also means that the information is free from bias.
Wrong information given to management would result in wrong decisions. As
managers decisions are based on the information supplied in MIS reports, all
managers need accurate information.
iii) Relevance :
Information is said to be relevant if it answers especially for the recipient what,
why, where, when, who and why? In other words, the MIS should serve reports to
managers which is useful and the information helps them to make decisions.
iv) Adequacy :
Adequacy means information must be sufficient in quantity, i.e.
MIS must provide reports containing information which is required in
the deciding processes of decision-making. The report should not give
inadequate or for that matter, more than adequate information, which
may create a difficult situation for the decision-maker. Whereas
inadequacy of information leads to crises, information overload results in
chaos.
v) Completeness :
The information which is given to a manager must be complete and
should meet all his needs. Incomplete information may result in wrong
decisions and thus may prove costly to the organization.
vi) Explicitness :
A report is said to be of good quality if it does not require further
analysis by the recipients for decision making.
vii) Impartiality :
Impartial information contains no bias and has been collected
without any distorted view of the situation.
 Definition of Information Systems

According to Silver, “Information systems are implemented

within an organization for the purpose of improving the
effectiveness and efficiency of that organization. Capabilities
of the information systems and characteristics of the
organization, its work systems, its people, and its development
and implementation methodologies together determine the
extent to which that purpose is achieved”.
 Evolution of Information Systems
1. Early 1960:
Until the 1960s, the role of most information systems was simple-
transaction processing, record-keeping, accounting, and other Electronic
Data processing (EDP) applications. Then another role was added, as the
concept of Management Information Systems (MIS) was conceived. This
new role focused on developing business applications that provided
managerial end-users with predefined management reports that would
give managers the information they needed for decision making purposes.
2. Year 1970:
By the 1970, it was evident that the pre-specified information products
produced by such management information systems were not adequately
meeting many of the decision making needs of management. So the
concept of Decision Support Systems (DSS) was born. The new role for
information systems was to provide managerial end-users with ad hoc and
interactive support of their decision making processes. This support
would be tailored to the unique decision making styles of mangers as they
confronted specific types of problems in the real world.
3. Year 1980:
i. First, the rapid development of microcomputers processing power,
application software packages, and telecommunications networks gave
birth to the phenomenon of end user computing. End users could now
use their own computing resources to support their job requirements
instead of waiting for the indirect support of centralized corporate
information services departments.
ii. Second, it became evident that most top corporate executives did not
directly use either the reports of management information systems or the
analytical modeling capabilities of decision support systems, so the
concept of Executive Information Systems (EIS) was developed. These
information systems were created to give top executives an easy way to
get the critical information they want, when they want it, tailored to the
formats they prefer.
iii. Third, breakthroughs occurred in the development and applications of
Artificial Intelligence (AI) techniques to business information systems.
4. Starting Year 1990:
An important new role of information systems appeared in the 1980s and continued
through the 1990s. This is the concept of a strategic role for information systems,
sometimes called Strategic Information Systems (SIS). In this concept, information
technology becomes an integral component of business processes, products, and
services that help a to company gain a competitive advantage in the global
marketplace.
5. Mid Year 1990:
The mid-to-late 1990s saw the revolutionary emergence of Enterprise Resources
Planning (ERP) systems. This organization specific form of a strategic information
system integrates all facets of a firm, including its planning, manufacturing, sales,
resource management, customer relations, inventory control, order tracking,
financial management, human resources, and marketing-virtually every business
function.
6. After Year 1990:
Finally, the rapid growth of the internet, intranets, extranets, and other
interconnected global networks dramatically changed the capabilities of
information systems in business at the beginning of the twenty first century.
Internet-based and web-enabled enterprise and global electronic-business and
commerce systems are becoming common place in the operations and management
of today’s business enterprise.
DATA
Data is very important in information systems. Without data, decision and
conclusion cannot be made. The right data in information systems helps us to make the
right decision.
For example, the stock status report in a book store helps the book store's
manager to decide when to reorder their stocks.

HARDWARE
The hardware component in an information system means all computer
equipment used to perform input, processing and output functions.
Hardware resources also include all media on which data is recorded, such
as paper, floppy disks and compact discs.

SOFTWARE
The software component in an information system consists of programs for the
computers. These programs allow the computers to carry out most of the instructions
related to information processing.
There are two types of software: system software and application software.
System software controls basic computer operations. For example, the Operating Systems
are Microsoft Windows, Linux and Macintosh.
Application software are the programs that allow users to do specific tasks. Examples of
application software are Microsoft Excel, Microsoft Access and SQL Server..
PEOPLE
People involved is information systems personnel and end users.

INFORMATION SYSTEMS PERSONNEL

People involve in IS are the database administrator, system analyst and system designer.
•Database administrator : The database administrator monitors database security and
solves errors.
•System analyst : A system analyst analyses the customer's needs by providing
specifications to customers.
•System designer : A system designer designs database according to the specifications
given by systems analysts.
INFORMATION SYSTEMS END USER
End users are people who use information systems. They can be customers, managers and
clerks.

PROCEDURES
Procedures are operating instructions for the user of an information system.
Procedures can be in the form of guidelines in the user manuals.

.
Functional information systems
“A functional information system is a system that provide detailed information
for a specific type of operations activity or related group of activities, as
well as summarized information for management control of such activities”
Features of Functional Information Systems:
1. A functional information systems consists of several smaller information
systems (sub systems) that supports specific activities.
2. Although some specific IS applications in any functional areal can be
completely independent, they often are integrated to form a coherent
departmental functional system.
3. Functional information systems interface with each other to form the
organisation wide information systems. A specific functional information
system may be used as the core of this enterprise wide system.
4. some functional information systems interface with the environment.
 Marketing information systems (MKIS)
• Marketing Information System is a computer based
system that works in conjunction with other functional
information systems to support the firm’s management in
solving problems that relate to marketing of the firm’s
products.
• A marketing Information System (MkIS) consists of
people, equipment and procedures to gather, sort, analyse,
evaluate and distribute needed, timely and accurate
information to marketing decision maker
• The role of the MkIS is to assess the marketing manager’s
Information needs, then develop the framework for
collecting information and distribute the information
gathered to the end users in time.
Models of MkIS:
1. Input Subsystems: these includes the following subsystems:
i. Transaction Processing Systems: Transaction Processing systems
gathers data from both internal and environmental sources and enters data
into the database.
ii. Marketing Research Subsystems: The marketing research subsystem
also gathers internal and environmental data by conducting special studies.
Marketing research is the systematic collection, analysis and interpretation
of information about specific marketing matters. Marketing research
subsystem is used only when specific information is needed and each
research project has an explicit purpose and time span.
iii. Marketing Intelligence subsystems: Marketing intelligence is general
information about developments in the marketing environment of the
organization that helps managers to develop and change marketing plans.
The marketing intelligence subsystem is the set of procedures and sources
used to acquire the information.
2. Database:
The data that are used by the output subsystems comes from the
database. The database is populated with data from three input
subsystems.
3. Output subsystems: these include the following subsystems:
i. Product subsystems: Product subsystem provides
information about the firm’s products.
ii. Place subsystems: This provides information about the
firm’s distribution network.
iii. Promotion subsystems: This subsystems provides
information about firm’s advertising and personal selling
activities.
iv. Price subsystem: This help the manager make pricing
decisions.
v. Integrated Mix subsystems: This is the fifth subsystems
that enables manager to develop strategies that consider the
combined effects of the ingredients.
Manufacturing Information Systems:
Manufacturing Information system is a complete set of tools for managing the flow
of manufacturing production data throughout the enterprise. This IS was
designed to provide tools for both IT and Operations personnel who would
deliver services to anyone in the plant.
Manufacturing Information Systems track, schedule, and control manufacturing
processes, collect data such as, hours the machine operates every day of the
month and hours the machine is idle.
Models of Manufacturing Information System;
1. Input Subsystems:
i. Transaction Processing System (TPS): Transaction Processing system
gathers data from both internal and environmental sources and enters data into
the database.
ii. Industrial Engineering Subsystems: This consists of activity by industrial
engineers who conduct studies of the manufacturing operation to ensure its
efficiency. IE’s work involves the setting up of production standard and are
compared to actual performance.
iii. Marketing Intelligence subsystems: Marketing intelligence is general
information about developments in the marketing environment of the
organization that helps managers to develop and change marketing plans.
2. Database:
The data that are used by the output subsystems comes from the
database. The database is populated with data from three input
subsystems.
3. Output Subsystem: These includes the following subsystems:
i. Production subsystems: By using terminals around the
production floor, data on production processes can be quickly
gathered and processed. These data are used for billing and in
almost every aspects of production control.
ii. Inventory Subsystem: This subsystem includes the inventories
for raw materials. Often, vendor data is maintained by the
purchasing department, although sometimes the manufacturing area
will personally buy certain items.
iii. Quality subsystems: This checks the quality of the product after
manufacturing.
iv. Cost Subsystem: This subsystem find the cost and compare it
with others.
Human Resource Information System (HRIS)

Human resource management system (HRMS), Human Resource

Information System (HRIS), HR Technology or also called HR
modules, refers to the systems and processes at the intersection
between human resource management (HRM) and information
technology.
Human Resource Information System (HRIS) provides a method,
by which an organization collects, maintains analyses and
reports information on people and jobs.
The information contained in the HRIS serves as a guide to
recruiters, trainers, career planners and other human resources
specialists. It applies to information needs at macro level as
well as to the micro level. HRIS offers HR, payroll, benefits,
training, recruiting and compliance solutions.
Models of HRIS
The various Parts of the HRIS are:
1. Input Subsystems:
i. Transaction Processing Systems: This provides input data, as using the
same format as the MKIS.
ii. Human Resources Research Subsystems: Conducts special studies and
human resources.
iii. Human Resources Intelligence Subsystems: Gathers environmental
data that beat on HR issues.
2. Database: The data that are used by the output subsystems comes from the
database. The database is populated with data from three input
subsystems.
3. Output subsystems: The output subsystems of the HRIS each address a
particular aspect of HR management:
planning, Recruiting, Managing the workforce, compensating the
employees, providing employee benefits and preparing the many HR
reports that are required by the environment.
Accounting Information System
• Accounting Information systems performs the firm’s
accounting applications. A high volume of data
processing characteristics these applications. Data
processing consists of four major tasks-data
gathering, data manipulation, data storage, and
document preparations.
• An accounting Information system is the systems of
records a business keeps to maintain its accounting
systems. This includes the purchase, sales, and other
financial processes of the business.
Financial Information System
• The term Financial Information System is used to describe the
CBIS subsystem that provides information to persons and
groups both inside and outside the firm concerning the firm’s
financial matters.
• Information is provided in the form of periodic reports, special
reports, and results of mathematical simulation, electronic
communications, and the advice of expert systems.
• A Financial MIS provides financial information not only for
executives but also for a broader set of people who need to
make better decisions on a daily basis. Financial MISs is used
to streamline reports of transactions.
Models of Financial Information Systems
The various parts of the Financial information system are:
1. Input Subsystems:
i. Transaction Processing systems: This provides input data, as using the same
format as the MKIS.
ii. Internal Audit Subsystems: Internal audit consists of the firm’s internal auditors
who analyse the firm’s conceptual systems to ensure that they process financial
data the proper way.
iii. Financial Intelligence Subsystems: Gathers environmental data that beat on HR
issues.
2. Database: The data that are used by the output subsystems comes from the database.
The database is populated with data from three input subsystems.
3. Outputs Subsystems: The output subsystems of the financial information systems
are as below:
i. Forecasting subsystems: This subsystems projects the firm’s long-range
activity in an economic environment.
ii. Found Management subsystems: The funds management subsystem manages
the money flow as it occurs, seeking to keep it balanced and positive.
iii. Control subsystems: With the control subsystems, managers can get effective
use from resources of all types that are made available to them.