bca307

Subject: Management Information System
Semester: 5th
Paper Code: BBA (G)/BBA (B&I)/BBA (cam)/BCA - 307
Unit I
Introduction: Definition, Purpose, Objectives and Role of MIS in Business Organization

With particular reference to Management Levels. MIS Growth and Development,
Location
of MIS in the Organization – Concept and Design. Transaction Processing System,
Decision
Support System, Executive Information System, Expert System, and the recent
developments in the Field of MIS.
Unit II
System Development: Concept of System, Types of Systems – Open, Closed,

Deterministic, Probabilistic, etc. Relevance of Choice of System in MIS, Integration of
Organization Systems and Information Systems, System Development Life Cycle,
System
Analysis, Design and Implementation, MIS Applications in Business.
Unit III
Information Concepts: Data and Information – Meaning and importance, Relevance of

Information in Decision Making, Sources and Types of Information, Cost Benefit
Analysis –
Quantitative and Qualitative Aspects, Assessing Information Needs of the Organization.
Unit IV
Information Technology: Recent Developments in the Field of Information Technology:

Multimedia Approach to Information Processing. Decision of Appropriate Information
Technology for proper MIS.
Choice of Appropriate IT Systems – Database, Data warehousing & Datamining
Concepts,
Centralised and Distributed Processing.
UNIT -1
Introduction: Definition, Purpose, Objectives and Role of MIS in Business Organization
with particular reference to Management Levels
“'MIS' is a planned system of collecting, storing and disseminating data in the form of
information needed to carry out the functions of management.”
Management: Management is art of getting things done through and with the people in formally
organized groups. The basic functions performed by a manager in an organization are: Planning,
controlling, staffing, organizing, and directing.
Information: Information is considered as valuable component of an organization. Information
is data that is processed and is presented in a form which assists decision maker.
System: A system is defined as a set of elements which are joined together to achieve a common
objective. The elements are interrelated and interdependent. Thus every system is said to be
composed of subsystems. A system has one or multiple inputs, these inputs are processed
through a transformation process to convert these input(s) to output.
DATA
Processing Information
Information Generation
Basic terms used in MIS

1. Hardware-Hardware refers to the physical data processing equipment and peripheral
devices, For example, CPU, monitor, keyboard, printer, drives, tapes, communication
devices, etc.
2. Software -Software is a broad term given to the instructions or programs that direct the
operating of the hardware. Software could be of two types, i.e. system software and
application software.
3. Database -Database is a repository where we can store data. The database consists of all
data utilized by application software. Data can be stored in different tables or relations.
4. Procedures-Formal operating procedures, which are required to operate a system, such
as manuals, are also regarded as physical elements.
5. Operating Personnel-Personnel like Computer Operators, Computer Programmers,
System Analysts, System Managers, etc., are the operating people of the information
systems.
6. Input and Output-Input is the term meaning either an entrance or changes which are
inserted into a system and which activate or modify a process. Output is the term
denoting either an exit or changes which exit a system and which activate/modify a
process
Purpose of MIS:-
1. Management Information Systems are primarily concerned with the delivery of
information (both internal and external) to organisational members from the shop floor
workers to the management.
2. The purpose of MIS is to help the smooth running of the business by providing
information on the firms data (such as accounting figures) employees from different
levels will then evaluate this information so that decisions can be made to ensure that the
business remains competitive and successful.
3. MIS have been created to support the whole range of business's administration and
regulatory activities and can be seen in all parts of the world and in all types of industries
both public and private sector.
Objectives of MIS:
1. Data Capturing: MIS capture data from various internal and external sources of
organization. Data capturing may be manual or through computer terminals.
2. Processing of Data: The captured data is processed to convert into required information.
Processing of data is done by such activities as calculating, sorting, classifying, and
summarizing.
3. Storage of Information: MIS stores the processed or unprocessed data for future use. If
any information is not immediately required, it is saved as an organization record, for
later use.
4. Retrieval of Information: MIS retrieves information from its stores as and when
required by various users.
5. Dissemination of Information: Information, which is a finished product of MIS, is
disseminated to the users in the organization. It is periodic or online through computer
terminal.
Characteristics of MIS:
1. Systems Approach: The information system follows a systems approach. Systems
approach means taking a comprehensive view or a complete look at the interlocking sub-
systems that operate within an organization.
2. Management Oriented: Management oriented characteristic of MIS implies that the
management actively directs the system development efforts. For planning of MIS, top-
down approach should be followed. Top down approach suggests that the system
development starts from the determination of management’s needs and overall business
objective. To ensure that the implementation of system’s polices meet the specification of
the system, continued review and participation of the manager is necessary.
3. Need Based: MIS design should be as per the information needs of managers at different
levels.
4. Exception Based: MIS should be developed on the exception based also, which means
that in an abnormal situation, there should be immediate reporting about the exceptional
situation to the decision –makers at the required level.
5. Future Oriented: MIS should not merely provide past of historical information; rather it
should provide information, on the basis of future projections on the actions to be
initiated.
6. Integrated: Integration is significant because of its ability to produce more meaningful
information. Integration means taking a comprehensive view or looking at the complete
picture of the interlocking subsystems that operate within the company.
7. Common Data Flow: Common data flow includes avoiding duplication, combining
similar functions and simplifying operations wherever possible. The development of
common data flow is an economically sound and logical concept, but it must be viewed
from a practical angle.
8. Long Term Planning: MIS is developed over relatively long periods. A heavy element
of planning should be involved.
9. Sub System Concept: The MIS should be viewed as a single entity, but it must be
broken down into digestible sub-systems which are more meaningful.
10. Central database: In the MIS there should be common data base for whole System.
Role of MIS in Business Organization with particular reference to Management Levels
The type of information being utilized by each level of management is in accordance with the
nature of jobs performed by the managers at their respective level. To facilitate the management
decision making at all levels of company, the MIS must be integrated. MIS units are
companywide. MIS is available for the Top management. The top management of company
should play an active role in designing, modifying and maintenance of the total organization
wide management information system. Information system and Information technology have
become a vital component of any successful business and are regarded as major functional areas
just like any other functional area of a business organization like marketing, finance, production
and HR. Thus it is important to understand the area of information system just like any other
functional area in the business. MIS is important because all businesses have a need for
information about the tasks which are to be performed. Information and technology is used as a
tool for solving problems and providing opportunities for increasing productivity and quality.
Information has always been important but it has never been so available, so current and so
overwhelming. Efforts have been made for collection and retrieval of information, However,
challenges still remain in the selection analysis and interpretation of the information that will
further improve decision making and productivity.
MIS Growth and Development

Factors responsible for Development of MIS
Factors Responsible for the development of MIS are numerous and have been a prime concern
for many Researchers and Practitioners. Both Internal and external factors must be taken into
account when trying to understand and organization’s criteria for deciding about technology. The
following are the factors which are responsible for development of MIS:
1. External
2. Internal
External Factors: External Factors are conditions that exist in organization’s external
environment. The factors can be found at the industry level or in national policies.
(a) Industry level: At the industry level, we are looking at characteristics as degree of diffusion
of certain technologies, the availability of external know-how, for example, technology
suppliers, the degree of innovativeness of the industry, the requirements imposed by major
customers and external markets and overall levels of competition and technology sophistication
in the industry.
(b) National Policies: For the external factors the national policies also affect the organization
that indirectly affects the subsystems of the organization.
Internal Factors: Internal factors internal of the firm that may affect the development of MIS
can be grouped into three categories:
i) Past Experience with Technology: The organizations past experience about the technology in
terms of exposure and organizational learning ultimately affects its future in developing
technology.
ii) Organizational: An organization’s characteristic like size, influence the adoption of MIS
application in organization. The adoption of certain technologies may appear more appropriate
for the larger firms because of the large capital investments and the skilled human resources
involve in the implementation and operation of such technologies. Smaller firms are less affected
by organizational inertia and they show a greater degree of involvement of organizational
member’s especially top management during implementation. Ready to use software and less
Expensive equipments of MIS application are more attractive to smaller firms.
iii) Organizational Pursued strategy: Internal factors deal with the organizations pursued
strategy on both orientation and technology policy. An organization’s strategy reflects its action
with market and technology, which ultimately modify its experience and consequently its overall
characteristics and capabilities. The need for a strong technology has been advocated by a
number of authors and investments in MIS should therefore be closely aligned with overall
corporate strategy.
Other Factors :
Customer Satisfaction: Development of MIS is affected by customer satisfaction.
Customer of the services should be satisfied by the presented system.
Effective: Development should be effective in terms of organizational benefit & user
satisfaction.
Efficient: Development should use all the resources, organization values efficiently.
Development of MIS
The plan for development and its implementation is a basic necessity for MIS. In MIS the
information is recognized as major resource like capital and time. If this resource has to be
managed well, it calls upon the management to plan for it and control it, so that the information
becomes a vital resource for the system. The management information system needs good
planning. This system should deal with the management information not with data processing
alone. It should provide support for the management planning, decision making and action. It
should provide support to the changing needs of business management. A long range MIS plan
provides direction for the development of the system and provides a basis for achieving the
specific targets or tasks against time frame.
Following are the contents of MIS planning:

1. MIS Goals and Objectives: It is necessary to develop the goal and objectives for the
MIS which will support the business goals. The MIS goals and objectives will consider
management philosophy, policy constraints, Business risk, internal and external
environment of the organization and business. The goals and objectives of the MIS would
be so stated that they can be measured. The typical statements of the goals can be
providing online information on the stock and market; the query processing should not
exceed more than three seconds and the like.
2. Strategy for Plan Achievement: The designer has to take a number of strategic
decisions for the achievement of MIS goals and objectives. They are
a) Development Strategy: Ex. an online, batch, a real time.
b) System Development Strategy: Designer selects an approach to system development
like operational verses functional, accounting verses analysis.
c) Resources for the Development: Designer has to select resources. Resources can be
in-house verses external, customized or use of package.
d) Manpower Composition: The staff should have the staffs of an analyst, and
programmer.
3. The System Development Schedule: A schedule is made for development of the system.
While preparing a schedule due consideration is given to importance of the system in the overall
information requirements. This development schedule is to be weighed against the time scale for
achieving certain information requirements.
Hardware and Software Plan : Giving due regards to the technical and operational feasibility,
the economics of investment is worked out. Then the plan of procurement is made after selecting
the hardware and software. One can take the phased approach of investing starting from the
lower configuration of hardware going to the higher as development take place. The process
needs matching the technical decisions with the financial decisions.
What are the stages of Development of MIS?

In order to develop a system successfully, it is managed by breaking the total development
process into smaller basic activities or phases. Any system development process, in general, is
understood to have the following phases:
i) Systems Planning
ii) Systems Analysis
iii) Systems Design
iv) Systems Implementation
v) Systems Operation and Support
Different approaches to Development of MIS

There are two basic approaches for development of MIS:
a) System development life cycle: The system development life cycle have
Following steps of development:
i) Systems Planning
ii) Systems Analysis
iii) Systems Design
iv) Systems Implementation
v) Systems Operation and Support (System Maintenance)
b) Prototyping: Prototyping is the process of creating an incomplete model of the future full-
featured system, which can be used to let the users have a first idea of the completed program or
allow the clients to evaluate the program.
Advantages:
i) The designer and implementer can obtain feedback from the users early in the project
development.
ii) The client and the contractor can compare that the developing system matches with the system
specification, according to which the system is built.
iii) It also gives the engineer some idea about the accuracy of initial project estimates and
whether the deadlines can be successfully met.
The process of prototyping involves the following steps:
i) Identify basic requirements.
ii) Develop initial prototype.
iii) Review: The customers, including end-users, examine the prototype and provide feedback
for additions or changes.
iv) Revise and Enhance the Prototype: Using the feedback both the specifications and the
prototype can be improved. If changes are introduced then a repetition of steps 3 and 4 may be
needed.
Types of prototyping: System prototyping are of various kinds. However, all the methods are in
some way based on two major types of prototyping:
Throwaway Prototyping: Throwaway or Rapid Prototyping refers to the creation of a model
that will eventually be discarded rather than becoming part of the finally delivered system. After
preliminary requirements gathering is accomplished, a simple working model of the system is
constructed to visually show the users what their requirements may look like when they are
Implemented into a finished system. The most obvious reason for using Throwaway Prototyping
is that it can be done quickly.
Evolutionary Prototyping: Evolutionary Prototyping (also known as Breadboard
Prototyping) is quite different from Throwaway Prototyping. The main goal when using
Evolutionary Prototyping
is to build a very good prototype in a structured manner so that we can refine it or make further
changes to it. The reason for this is that the Evolutionary prototype, when built, forms the heart
of the new system, and the improvements and further requirements will be built on to it. It is not
discarded or removed like the Throwaway Prototype. When developing a system using
Evolutionary Prototyping, the system is continually refined and rebuilt.
· Incremental Prototyping: The final product is built as separate prototypes. At the end the
separate prototypes are merged in an overall design.
Advantages of Prototyping:
i) Reduced Time and Costs: Prototyping can improve the quality of requirements and
specifications provided to developers. Early determination of what the user really wants can
result in faster and less expensive software.
ii) Improved and Increased User Involvement: Prototyping requires user involvement and
allows them to see and interact with a prototype; allowing them to provide better and more
complete feedback and specifications. Since users know the problem better than anyone, the final
product is more likely to satisfy the user’s desire for look, feel and performance.
Disadvantages of Prototyping:
i) Insufficient Analysis: Since a model has to be created, developers will not properly analyze
the complete project. This may lead to a poor prototype and a final project that will not satisfy
the users.
ii) User Confusion for Prototype and Finished System: Users can begin to think that a
prototype, intended to be thrown away, is actually a final system that merely needs to be finished
or polished.
Users can also become attached to features that were included in a prototype for consideration
and then removed from the specification for a final system.
iii) Excessive Development Time of the Prototype: A key property to prototyping is the fact
that it is supposed to be done quickly. If the developers forget about this fact, they will develop a
prototype that is too complex.
iv) Expense of Implementing Prototyping: The start up costs for building a development team
focused on prototyping may be high. Many companies have to train the team for this purpose
which needs extra expensive
Location of MIS in the Organization – Concept and Design

MIS for a Business Organization :
Support the Business Process: Treats inputs as a request from the customer and outputs as
services to customer. Supports current operations and use the system to influence further way of
working.
Support Operation of a Business Organization: MIS supports operations of a business
organization by giving timely information, maintenance and enhancement which provides
flexibility in the operation of organizations.
To Support Decision Making: MIS supports the decision making by employee in their daily
operations. MIS also supports managers in decision making to meet the goals and objectives of
the organization. Different mathematical models and IT tools are used for the purpose evolving
strategies to meet competitive needs.
Strategies for an Organization: Today each business is running in a competitive market. MIS
supports the organization to evolve appropriate strategies for the business to assented in a
competitive environment.
Essential Requirement of an Effective MIS:

(i) Qualified System and Management Staff: The prerequisite of an effective MIS is that it
should be managed by qualified officers. These officers should have a mutual understanding
about the roles and responsibilities of each other. Understand clearly the view of their fellow
officers. For this, each organization should have two categories of officers:
(a) System and Computer Experts who in addition to their expertise in their subject area , they
should also be capable of understanding management concepts to facilitate the understanding of
problems asked by concern. They should also be clear about the process of decision making and
information requirements for planning.
(b) Management experts who should also understand quite-clearly the concepts and operations
of a computer. This basic knowledge of computer will be useful will place them in a comfortable
position, while working with systems, technicians in designing or otherwise, of the information
system.
(ii) Futuristic Perspective: An effective MIS should be capable of meeting the future
requirements of its executives as well. This capability can be achieved by regular monitoring and
updating the MIS.
(iii) Support of Top Management: For a management information system to be effective, it
must receive the full support of top management. The Reasons for this are :
(a) Subordinate managers are usually lethargic about activities which do not receive the support
of their superiors.
(b) The resources involved in computer based information system are larger and are growing
larger and larger in view of importance gained by management information system.
(iv) Common Database: It is an integrated collection of data and information which is utilized
by several information subsystems of an organization. A common database may be defined as a
super file which consolidates and integrates data records formerly stored in a separate data file.
Such a database can be organized as an integrated collection of data records into a single super
file or it can be organized as an integrated collection of several data file.
(v) Control and maintenance of MIS: Control of the MIS means the operation of the system as
it was designed to operate. Sometimes, users develop their own procedures or short cut methods
to use the system which reduces its effectiveness.
Types of information system

For most businesses, there are a variety of requirements for information. Senior managers need
information to help with their business planning. Middle management need more detailed
information to help them monitor and control business activities. Employees with operational
roles need information to help them carry out their duties.
As a result, businesses tend to have several "information systems" operating at the same time.
This revision note highlights the main categories of information system and provides some
examples to help you distinguish between them.
The main kinds of information systems in business are described briefly below:
Information Description
System
Executive An Executive Support System ("ESS") is designed to help senior management
Support Systems make strategic decisions. It gathers analyses and summarizes the key internal and
external information used in the business. A good way to think about an ESS is to
imagine the senior management team in an aircraft cockpit - with the instrument
panel showing them the status of all the key business activities. ESS typically
involves lots of data analysis and modeling tools such as "what-if" analysis to help
strategic decision-making.
Management A management information system ("MIS") is mainly concerned with internal
Information sources of information. MIS usually take data from the transaction processing
Systems systems (see below) and summarize it into a series of management reports.MIS
reports tend to be used by middle management and operational supervisors.
Decision- Decision-support systems ("DSS") are specifically designed to help management
Support Systems make decisions in situations where there is uncertainty about the possible outcomes
of those decisions. DSS comprise tools and techniques to help gather relevant
information and analyse the options and alternatives. DSS often involves use of
complex spreadsheet and databases to create "what-if" models.
Knowledge Knowledge Management Systems ("KMS") exist to help businesses create and
Management share information. These are typically used in a business where employees create
Systems new knowledge and expertise - which can then be shared by other people in the
organization to create further commercial opportunities. Good examples include
firms of lawyers, accountants and management consultants.
KMS are built around systems which allow efficient categorization and distribution
of knowledge. For example, the knowledge itself might be contained in word
processing documents, spreadsheets, PowerPoint presentations. Internet pages or
whatever. To share the knowledge, a KMS would use group collaboration systems
such as an intranet.
Transaction As the name implies, Transaction Processing Systems ("TPS") are designed to
Processing process routine transactions efficiently and accurately. A business will have several
Systems (sometimes many) TPS; for example:
-Billing systems to send invoices to customers
- Systems to calculate the weekly and monthly payroll and tax payments
- Production and purchasing systems to calculate raw material requirements
- Stock control systems to process all movements into, within and out of the
business
Office Office Automation Systems are systems that try to improve the productivity of
Automation employees who need to process data and information. Perhaps the best example is
Systems the wide range of software systems that exist to improve the productivity of
employees working in an office (e.g. Microsoft Office XP) or systems that allow
employees to work from home or whilst on the move.
The discipline of MIS can be categorized in the following 6 classes:

i) Transaction Processing System (TPS)
ii) Management Information System (MIS)
iii) Decision Support System (DSS)
iv) Executive Support System (ESS)
v) Office Automation Systems (OASs), and
vi) Business Expert Systems (BESs)
Transaction Processing System

TPS processes transaction and produces reports. It represents the automation of the
fundamental, routine processing used to support business operations. It does not provide
any information to the user to his/her decision-making. TPS uses data and produces data
as shown in the following diagram.
Previously, TPS was known as Management Information System. Prior to computers,

data processing was performed manually or with simple machines. The domain of TPS is
at the lowest level of the management hierarchy of an organization.
Management Information System (MIS)
MIS is an information system, which processes data and converts it into information. A
management information system uses TPS for its data inputs. The information generated
by the information system may be used for control of operations, strategic and long-range
planning. Short-range planning, management control, and other managerial problem
solving. It encompasses processing in support of a wide range of organizational functions
& management processes. MIS is capable of providing analysis, planning & decision
making support. The functional areas of a business may be marketing, production, human
resource, finance and accounting.
Decision Support System (DSS)
A decision support system (DSS) is an information system application that assists

decision-making. DSS tends to be used in planning, analyzing alternatives, and trial and
error search for solution. The elements of the decision support system include a database,
model base & software. The main application areas of DSS are Production, finance and
marketing.
DSS can be differentiated from MIS on the basis of processing the information. MIS
processes data to convert it into information. DSS processes information to support the
decision making process of a manager.
Executive Support System (ESS)

Executive Support System (ESS) is an extension of the management information system,
which is a special kind of DSS; An ESS is specially tailored for the use of chief executive
of an organization to support his decision-making. It includes various types of decision-
making but it is more specific and person oriented.
Office Automation Systems (OAS)
Office automation refers to the application of computes and communication technology
to office functions. Office automation systems are meant to improve the productivity of
managers at various levels of management of providing secretarial assistance and better
communication facilities.
Office activities may be grouped under two classes, namely
i) Activities performed by clerical personnel (clerks, secretaries, typist, etc.,) and
ii) Activities performed by the executives (managers, engineers or other professionals
like economist, researches etc.)
In the first category, the following is a list of activities.

a) Typing
b) Mailing
c) Scheduling of meetings and conferences,
d) Calendar keeping, and
e) Retrieving documents
The following is a list of activities in the second category (managerial category)
a) Conferencing.
b) Production of information (messages, memos, reports, etc.) and controlling
performance
Business Expert Systems: These systems are one of the main types of knowledge-based
information systems. These systems are based on artificial intelligence, and are advanced
information systems. A business expert system is a knowledge based information system
that uses its knowledge about a specific, complex application area to act as an expert. The
main components of an expert system are:
a. Knowledge Base
b. Interface Engine
c. User Interface
Designing of MIS:-
In the conceptual design, the feasibility of meeting the management objectives for the
MIS is assessed and a broad picture of the system is analyzed. It involves the following
steps:
1) Define problem:
The first step in conceptual design is to clearly understand and define the problem
to be solved. The information needs of the organization are to be identified and
understood in this step, which can be determined by understanding the mission,
objectives and operating plans for the business.
2) Set system objectives:
System objectives should be stated in quantitative terms. For example, ‘pay salary
to 100 percent employees by the last day of the month’.
3) Identify constraints:
System constraints may be classified into two categories:
a) External constraints
These are external to the organization. For example constraints imposed by
the customers, the government and the suppliers.
b) Internal constraints
These are imposed from within the organization. For example, non-
cooperation and lack of support from top management, resource constraints
like manpower, time and money etc.
4) Determine information needs:
For determination of information needs, users should specify:
a) What they want out of an information system and
b) Items of information that are needed to achieve the predetermined
objectives.
5) Determine information sources:
Sources of information may be classified as given below:
a) Internal and external records:
The internal records may be in written form like files, inputs and outputs,
correspondence, reports etc., whereas external records may include trade
publications, government statistics, etc.
b) Managers and operating personnel:
User-managers and operating staff may be an important source. However,
gathering data from the source involves interviewing the managers and
operating personnel, which requires proper planning and skill.
6) Develop various designs:
More than one alternative conceptual designs are to be developed which are
compared to select the optimum one, which:
a) Meets the requirements of the users/organizations and
b) Is cost effective
Various criteria can be adopted as a basis for evaluating the designs such as
economic, performance, operational etc.
7) Documentation of the conceptual design:
The documentation involves:
a) Overall system flow
b) System inputs
c) System outputs, and
d) Other documentations like activity sheet and system description, etc.
8) Report preparation:
The report prepared should mention the problem, objectives and an overall view
of the system. Justifications for selecting the alternatives and many more.
Recent development in MIS:-

The recent developments of MIS are Electronic commerce, M-commerce; ERP, Expert systems,
end user computing systems and work group collaborations etc.
Electronic commerce- Electronic commerce, commonly known as e-commerce, is a type of

industry where buying and selling of product or service is conducted over electronic systems
such as the Internet and other computer networks. Electronic commerce draws on technologies
such as mobile commerce, electronic funds transfer, supply chain management, Internet
marketing, online transaction processing, electronic data interchange (EDI), inventory
management systems, and automated data collection systems. Modern electronic commerce
typically uses the World Wide Web at least at one point in the transaction's life-cycle, although it
may encompass a wider range of technologies such as e-mail, mobile devices social media, and
telephones as well.
Electronic commerce is generally considered to be the sales aspect of e-business. It also consists
of the exchange of data to facilitate the financing and payment aspects of business transactions.
This is an effective and efficient way of communicating within an organization and one of the
most effective and useful ways of conducting business.
E-commerce can be divided into:
• E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered

into a "virtual mall"
• The gathering and use of demographic data through Web contacts and social media
• Electronic Data Interchange (EDI), the business-to-business exchange of data
• E-mail and fax and their use as media for reaching prospective and established customers
(for example, with newsletters)
• Business-to-business buying and selling
• The security of business transactions
M-commerce:-The phrase mobile commerce was originally coined in 1997 to mean "the
delivery of electronic commerce capabilities directly into the consumer’s hand, anywhere, via
wireless technology." Many choose to think of Mobile Commerce as meaning "a retail outlet in
your customer’s pocket."
According to BI Intelligence in January 2013, 29% of mobile users have now made a purchase
with their phones. Wal-Mart estimated that 40% of all visits to their internet shopping site in
December 2012 were from a mobile device. Bank of America predicts $67.1 billion in purchases
will be made from mobile devices by European and U.S. shoppers in 2015
Products and services available
Mobile Money Transfer

In Kenya money transfer is mainly done through the use of mobile phones. This was an initiative
of a multimillion shillings company in Kenya. Mobile money transfer services in Kenya are now
provided an (ZAP). The oldest has and is now generally used to refer to mobile money transfer
services even by other companies other than.
Mobile ATM
With the introduction of mobile money services for the unbanked, operators are now looking for
efficient ways to roll out and manage distribution networks that can support cash-in and cash-
out. Unlike traditional ATM, sicap Mobile ATM have been specially engineered to connect to
mobile money platforms and provide bank grade ATM quality. In Hungary, Vodafone allows
cash or bank card payments of monthly phone bills. The Hungarian market is one where direct
debits are not standard practice, so the facility eases the burden of queuing for the postpaid half
of Vodafone’s subscriber base in Hungary.
Mobile ticketing
Tickets can be sent to mobile phones using a variety of technologies. Users are then able to use
their tickets immediately, by presenting their mobile phone at the ticket check.
Mobile vouchers, coupons and loyalty cards

Mobile ticketing technology can also be used for the distribution of vouchers, coupons, and
loyalty cards. These items are represented by a virtual token that is sent to the mobile phone. A
customer presenting a mobile phone with one of these tokens at the point of sale receives the
same benefits as if they had the traditional token. Stores may send coupons to customers using
location-based services to determine when the customer is nearby.
Content purchase and delivery

Currently, mobile content purchase and delivery mainly consists of the sale of ring-tones,
wallpapers, and games for mobile phones. The convergence of mobile phones, portable audio
players, and video players into a single device is increasing the purchase and delivery of full-
length music tracks and video. The download speeds available with 4G networks make it
possible to buy a movie on a mobile device in a couple of seconds.
Location-based services
The location of the mobile phone user is an important piece of information used during mobile
commerce or m-commerce transactions. Knowing the location of the user allows for location-
based services such as:
• Local discount offers
• Local weather
• Tracking and monitoring of people
Information services
A wide variety of information services can be delivered to mobile phone users in much the same
way as it is delivered to PCs. These services include:
• News
• Stock quotes
• Sports scores
• Financial records
• Traffic reporting
Customized traffic information, based on a user's actual travel patterns, can be sent to a mobile
device. This customized data is more useful than a generic traffic-report broadcast, but was
impractical before the invention of modern mobile devices due to the bandwidth requirements.
Mobile banking
Banks and other financial institutions use mobile commerce to allow their customers to access
account information and make transactions, such as purchasing stocks, remitting money. This
service is often referred to as Mobile Banking, or M-Banking.
Mobile brokerage
Stock market services offered via mobile devices have also become more popular and are known
as Mobile Brokerage. They allow the subscriber to react to market developments in a timely
fashion and irrespective of their physical location.
Auctions
Over the past three years] mobile reverse auction solutions have grown in popularity. Unlike
traditional auctions, the reverse auction (or low-bid auction) bills the consumer's phone each
time they place a bid. Many mobile SMS commerce solutions rely on a one-time purchase or
one-time subscription; however, reverse auctions offer a high return for the mobile vendor as
they require the consumer to make multiple transactions over a long period of time.
Mobile browsing
Using a mobile browser—a World Wide Web browser on a mobile device—customers can shop
online without having to be at their personal computer.
Mobile purchase
Catalog merchants can accept orders from customers electronically, via the customer's mobile
device. In some cases, the merchant may even deliver the catalog electronically, rather than
mailing a paper catalog to the customer. Some merchants provide mobile websites that are
customized for the smaller screen and limited user interface of a mobile device.
In-application mobile phone payments

Payments can be made directly inside of an application running on a popular smart phone
operating system, such as Google Android. Analyst firm Gartner expects in-application
purchases to drive 41 percent of app store (also referred to as mobile software distribution
platforms) revenue in 2016. In-app purchases can be used to buy virtual goods, new and other
mobile content and is ultimately billed by mobile carriers rather than the app stores themselves.
Ericsson’s IPX mobile commerce system is used by 120 mobile carriers to offer payment options
such as try-before-you-buy, rentals and subscriptions.
Mobile marketing and advertising

In the context of mobile commerce, mobile marketing refers to marketing sent to mobile
devices. Companies have reported that they see better response from mobile marketing
campaigns than from traditional campaigns. The primary reason for this is the instant nature of
customer decision-making that mobile apps and websites enable. The consumer can receive a
marketing message or discount coupon and, within a few seconds, make a decision to buy and go
on to complete the sale - without disrupting their current real-world activity.
For example, a busy mom tending to her household chores with a baby in her arm could receive
a marketing message on her mobile about baby products from a local store. She can and within a
few clicks, places an order for her supplies without having to plan ahead for it. No more need to
reach for her purse and hunt for credit cards, no need to log into her laptop and try to recall the
web address of the store she visited last week, and surely no need to find a babysitter to cover for
her while she runs to the local store.
Research demonstrates that consumers of mobile and wire line markets represent two distinct
groups who are driven by different values and behaviors, and who exhibit dissimilar
psychographic and demographic profiles. As a result, successful mobile commerce requires the
development of marketing campaigns targeted to this particular market segment.
ERP:-Enterprise resource planning (ERP) systems integrate internal and external management of
information across an entire organization—embracing finance/accounting, manufacturing, sales
and service, customer relationship management, etc. ERP systems automate this activity with an
integrated software application. ERP facilitates information flow between all business functions
inside the organization, and manages connections to outside stakeholders.
Characteristics
ERP (Enterprise Resource Planning) systems typically include the following characteristics:
• An integrated system that operates in real time (or next to real-time), without relying on
periodic updates.
• A common database, which supports all applications
• A consistent look and feel throughout each module
• Installation of the system without elaborate application/data integration by the
Information Technology (IT) department provided the implementation is not done in
small steps.
Unit-2
Concept of System:-
The word system is derived from the Greek word ―systemǁ which means a organized
relationship among the following unit or component.
“A system is an orderly grouping of interdependent components linked together according
to a plan to achieve a specific goal.”
The word component may refer to physical parts (engine, wheels of cars), management steps
(planning, organizing, controlling) or a sub subsystem in a multi level structure. It is to be noted
that a system is not a randomly arranged set. It is arranged with some logic governed by rules,
regulation, principles and policies.
In MIS we are usually concerned with man-made system involving input, process and output, as
represented in figure. A system may have multiple inputs and multiple outputs.
All systems operate in an environment. The environment may influence the system in its design
and performance. When a system is designed to achieve certain objective, it automatically sets
the boundaries for itself. The understanding of boundaries of the system is essential to bring
clarity in explaining the system components and their arrangement.
Characteristics of System:
Following characteristics are present in all systems:
a) Organization
b) Interaction
c) Interdependence
d) Integration
e) Central Objective
Organization: Organization implies structure and order. It is the arrangement of components

that helps to achieve objectives. Hierarchical relationship starting with the president on top and
leading down ward to the blue collar worker represent the organization structure
Interaction: Interaction refers to the procedure in which each component interact with other
components of the system. In an organization, for example purchasing must interact with
product, advertising with sales and payroll with personnel.
Interdependence: Independence is concerned with how a system is tied together; it is more than
sharing a physical part or location. It means that parts of the system part or location with in the
system, even through each part performance. A unique function successful integration will
typically produce a better request as whole rather than if each component works independently.
Central Objective: Objective may be real or stated. Objective is determined by higher
management and user must be aware about the central objective well in advance.
Types of Systems – Open, Closed, Deterministic, Probabilistic, etc:-

Physical or Abstract: Physical system is tangible entities that may be static or dynamic in
nature. Abstract system is conceptual or non-physical. The abstract is conceptualization of
physical situations.
Open and Closed: An open system continually interacts with its environment. It receives input
from the outside and delivers output to outside. A closed system is isolated from environment
influences.
Sub System and Super System: Each system is part of a large system. The business firm is
viewed as the system or total system when focus is on production, distribution of goal and
sources of profit and income. The total system consists of all the objects, attributes and
relationship necessary to accomplish an objective given a number of constraints.
Sub systems are the smaller systems within a system. Super system denotes extremely large and
complex system
Permanent and Temporary System: A permanent system is a system enduring for a time span
that is long relative to the operation of human. Temporary system is one having a short time
span.
Natural and Man Made System: System which is made by man is called man made system.
Systems which are in the environment made by nature are called natural system.
Deterministic and Probabilistic: A Deterministic system is one in which the occurrence of all
events is perfectly predictable. If we get the description of the system state at a particular time,
the next state can be easily predicted.
Probabilistic system is one in which the occurrence of events cannot be perfectly predicted.
Man-made Information System: It is generally believed that the information reduces
uncertainty about a state or event. An information system is the basis for interaction between the
user and the analyst. It determines the nature of relationship among decision makers.
An information system may be defined as a set of devices, procedures and operating system
designed around user-base criteria to produce information and communicating it to the user for
planning control and performance.
Relevance of Choice of System in MIS:-

The four alternatives to in-house development by IT specialists are outsourcing, licensing, using software as a
service (SaaS), and having the users develop the system. If an application of the desired features and quality can
be obtained from more than one of the resources, then the major factor left to be considered is usually cost. The
preference then would be to license, because of immediate availability and low cost. If the
application cannot be licensed, the next choice would usually be to obtain the use of the system as a service
from an application service provider (ASP) because the system is immediately available for use and the
organization does not have to lay out a large sum up front for such use. If ASPs do not offer the desired IS and it
can be developed by non IT employees, then this would usually be the chosen alternative. If non-IT employees
cannot develop the IS, the choice might then be to outsource IS development.
OUTSOURCING
Outsourcing in general means hiring the services of another organization or individual to perform some of the
work that otherwise would be performed by you or your employees. In the IT arena, Outsourcing has two
meanings. One is to commission the development of an application to another organization, usually a company
that specializes in the development of this type of organization. The other is to hire the services of another
company to manage all or parts of the services that otherwise would be rendered by an IT unit of the
organization.
Outsourcing Custom-Designed Applications

Often, an organization has a need that no existing software can satisfy. For example, if the cost-accounting
procedures of a particular company are so specific that no commercially available software can perform them, the
company must develop Custom-designed or tailored software.
Advantage
Good fit of features to business needs
Good fit of features to organizational culture
Personnel available for maintenance
Smooth interfaces with other information systems
Availability of special security measures
Potential for a strategic advantage
Disadvantages
High Cost
Long wait for development if IS personnel are busy with other projects
Applications may be too organization-specific to interface with systems of other organizations
Many North American and European countries have outsourced development of well-defined applications to
professionals in other countries, an act often referred to as off shoring.
Outsourcing IT Services
In considering whether to outsource IT services, management should ask the following questions:
What do we do outside out specialties that could be done better for us by organizations specializing in that area?
Integration of Organization Systems and Information Systems:-

To facilitate the management decision making at all levels of company, the MIS must be
integrated. MIS units are companywide. MIS is available for the Top management. The top
management of company should play an active role in designing, modifying and maintenance of
the total organization wide management information system.
Information system and Information technology have become a vital component of any
successful business and are regarded as major functional areas just like any other functional area
of a business organization like marketing, finance, production and HR. Thus it is important to
understand the area of information system just like any other functional area in the business. MIS
is important because all businesses have a need for information about the tasks which are to be
performed. Information and technology is used as a tool for solving problems and providing
opportunities for increasing productivity and quality.
Information has always been important but it has never been so available, so current and so
overwhelming. Efforts have been made for collection and retrieval of information, However,
challenges still remain in the selection analysis and interpretation of the information that will
further improve decision making and productivity.
MIS for a Business Organization:

working.
Support Operation ion of a Business Organization: MIS supports operations of a business
flexibility in the operation of organizations
organizations.
strategies
ies to meet competitive needs.
Organization: Today each business is running in a competitive market. MIS
Strategies for an Organization
supports the organization to evolve appropriate strategies for the business to assented in a
System Development
pment Life Cycle:
Cycle:- System Analysis,
ysis, Design and Implementation
Software development methodology
A software development methodology or system development methodology in software
engineering is a framework that is used to structure, plan, and control the process of developing
information system.
The three basic approaches applied to software development methodology frameworks.

A wide variety of such frameworks have evolved over the years, each with its own recognized
strengths and weaknesses. One software development methodology framework is not necessarily
suitable for use by all projects. Each of the available methodology frameworks are best suited to
specific kindss of projects, based on various technical, organizational, project and team
considerations.
These software development frameworks are often bound to some kind of organization, which
further develops, supports the use, and promotes the methodology framework
framework.. The methodology
framework is often defined in some kind of formal documentation. Specific software
development methodology frameworks (noun) include:
Waterfall development
The Waterfall model is a sequential development approach, in which development is seen as
flowing steadily downwards (like a waterfall) through the phases of requirements analysis,
design, implementation, testing (validation), integration, and maintenance.
The basic principles are:
• Project is divided into sequential phases, with some overlap and splashback acceptable
between phases.
• Emphasis is on planning, time schedules, target dates, budgets and implementation of an
entire system at one time.
• Tight control is maintained over the life of the project via extensive written
documentation, formal reviews, and approval/signoff by the user and information
technology management occurring at the end of most phases before beginning the next
phase.
The Waterfall model is a traditional engineering approach applied to software engineering. It has
been widely blamed for several large-scale government projects running over budget, over time
and sometimes failing to deliver on requirements due to the Big Design Up Front approach.
Except when contractually required, the Waterfall model has been largely superseded by more
flexible and versatile methodologies developed specifically for software development. See
Criticism of Waterfall model.
Prototyping
Software prototyping is the development approach of activities during software development, the
creation of prototypes, i.e., incomplete versions of the software program being developed.
• Not a standalone, complete development methodology, but rather an approach to handle
selected parts of a larger, more traditional development methodology (i.e. incremental,
spiral, or rapid application development (RAD)).
• Attempts to reduce inherent project risk by breaking a project into smaller segments and
providing more ease-of-change during the development process.
• User is involved throughout the development process, which increases the likelihood of
user acceptance of the final implementation.
• Small-scale mock-ups of the system are developed following an iterative modification
process until the prototype evolves to meet the users’ requirements.
• While most prototypes are developed with the expectation that they will be discarded, it
is possible in some cases to evolve from prototype to working system.
• A basic understanding of the fundamental business problem is necessary to avoid solving
the wrong problem.
Incremental development
Various methods are acceptable for combining linear and iterative systems development
methodologies, with the primary objective of each being to reduce inherent project risk by
breaking a project into smaller segments and providing more ease-of-change during the
development process.
• A series of mini-Waterfalls are performed, where all phases of the Waterfall are
completed for a small part of a system, before proceeding to the next increment, or
• Overall requirements are defined before proceeding to evolutionary, mini-Waterfall
development of individual increments of a system, or
• The initial software concept, requirements analysis, and design of architecture and system
core are defined via Waterfall, followed by iterative Prototyping, which culminates in
installing the final prototype, a working system.
Spiral development
The spiral model is a software development process combining elements of both design and
prototyping-in-stages,
stages, in an effort to combine advantages of toptop-down
down and bottom-up
bottom concepts.
It is a meta-model,
model, a model that can be used by other models.
• Focus is on risk assessment and on minimizing project risk by breaking a project into
smaller segments and providing more ease ease-of-change
change during the development process, as
well as providing the opportunity to evaluate risks and weigh consideration of project
continuation throughout the life cycle.
• "Each cycle involves a progression through the same sequence of steps, for each part of
the product and for each of its levels of elaboration, from an overall concept-of-operation
concept
document down to the coding of each individual program."
• Each h trip around the spiral traverses four basic quadrants: (1) determine objectives,
alternatives, and constraints of the iteration; (2) evaluate alternatives; Identify and resolve
risks; (3) develop and verify deliverables from the iteration; and (4) plan the t next
iteration.
• Begin each cycle with an identification of stakeholders and their win conditions, and end
each cycle with review and commitment.
Rapid application development
Rapid application development (RAD) is a software development methodology, which wh involves
iterative development and the construction of prototypes. Rapid application development is a
term originally used to describe a software development process introduced by James Martin in
1991.
• Key objective is for fastt development and delivery of a high quality system at a relatively
low investment cost.
• Attempts to reduce inherent project risk by breaking a project into smaller segments and
providing more ease-of-change
change during the development process.
• Aims to produce high quality systems quickly, primarily via iterative Prototyping (at any
stage of development), active user involvement, and computerized development tools.
These tools may include Graphical User Interface (GUI) builders, Computer Aided
Software Engineering (CASE) tools, Database Management Systems (DBMS), fourth-
generation programming languages, code generators, and object-oriented techniques.
• Key emphasis is on fulfilling the business need, while technological or engineering
excellence is of lesser importance.
• Project control involves prioritizing development and defining delivery deadlines or
“timeboxes”. If the project starts to slip, emphasis is on reducing requirements to fit the
timebox, not in increasing the deadline.
• Generally includes joint application design (JAD), where users are intensely involved in
system design, via consensus building in either structured workshops, or electronically
facilitated interaction.
• Active user involvement is imperative.
• Iteratively produces production software, as opposed to a throwaway prototype.
• Produces documentation necessary to facilitate future development and maintenance.
• Standard systems analysis and design methods can be fitted into this framework.
MIS Applications in Business.

An information system (IS) is the concept of integrating computer technology in a business or
organization. An information system can be small or large, and designed for any type of business
or organization. Information systems are the main thrust of automating a department, division or
branch which depends on data to make decisions, produce products or goods, perform logistical
functions and develop software.
Executive Management
o At the executive management level, business information systems are designed to find
solutions to corporate problems and provide a decision support system based on project
scenarios. An information system can assist in determining scenarios such as mergers and
acquisitions, and streamline the strategic planning process. Executive managers such as a
Chief Operations Officer (COO) or Chief Financial Officer can make corporate decisions
based on data provided by the IS. At the executive level, the focus of information systems
is quality assurance and return on investment (ROI).
Operations Management
o The role of information systems in operations management is critical. Operations
management is the heart of any corporation or business. In operations management,
information systems design can apply to production control, research, development, and
manufacturing. Even though these processes or departments are separate, information
systems can integrate these processes to work efficiently to produce desired results of a
product or service.
Human Resources
o Human resources management relies on information systems to maintain employee
records, benefits information and historical information regarding employees.
Information systems applications in the area of human resources can integrate employee
data into several processes used by human resource managers or personnel to process
important data concerning employees. IS has applications for conducting research,
workforce projections and mandates for compliance in labor relations.
Logistics Management
o Logistics management includes processes of shipping, receiving or developing a structure
for products or services. Information systems support logistical processes in various
ways, such as real time inquiries to track an item from the point of shipment, receiving
and storage of the item and inventory status of the item. The information system
enhances services such as the tracking of goods on a transportation route and the arrival
time of goods through a computerized tracking number. Most freight carriers such as
United Parcel Service (UPS) and Federal Express (FedEx) use elaborate information
systems to manage their logistical process.
Data Administration and Design
o For businesses with "in-house" data processing function, information systems can
provide the structure for programmers, database managers and data administrators to
collaborate on new and existing projects. An information system can be partitioned into
different areas while at the same time, through data security, allowing employees in
computer operations to work on data or software development projects together.
Unit-3
Information Concepts: Data and Information – Meaning and importance:-
Data: Data is raw facts. Data is like raw material. Data does not interrelate and also it does not
help in decision making. Data is defined as groups of non-random symbols in the form of text,
images, voice representing quantities, action and objects.
Information: Information is the product of data processing. 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.ǁ
Data Processing Information
Information Generation
It is a most critical resource of the organization. Managing the information means managing
future. Information is knowledge that one derives from facts placed in the right context with the
purpose of reducing uncertainty.
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.
Data are plain facts. When data are processed, organized, structured or presented in a given
context so as to make them useful, they are called Information. It is not enough to have data in
themselves are fairly useless. But when these data are interpreted and processed to determine its
true meaning, they become useful and can be called Information.
As an example, suppose that you want to know how you’re doing in a particular course.
So far, you’ve taken two 20-question multiple-choice tests. On the first, you got questions 8, 11,
and 14 wrong; on the second, you did worse, missing items 7, 15, 16, and 19. The items that you
got wrong are merely data—unprocessed facts. What’s important is your total score. You scored
85 on the first exam and 80 on the second. These two numbers constitute information—data that
have been processed, or turned into some useful form.
Importance of information system:

(i) Ability to process data into information with accuracy and high speed. It involves complex
computation, analysis, comparisons and summarization.
(ii) Organizing and updating of huge amount of raw data of related and unrelated nature, derived
from internal and external sources at different periods of time.
(iii) The information processing and computer technology have been so advanced that managers
are able to obtain real time information about ongoing activities and events without any waiting
period.
(iv)The input data in computer can be converted into different output formats for a variety of
purpose. The system is so organized that managers at different levels and in different activity
units are in a position to obtain information in whatever form they want , provided that relevant “
Programmers” or instructions have been designed for the purpose.
(v) Super-human memory, tremendous volume of data and information and the set of instructions
can be stored in the computer and can be retrieved as and when needed. Management can get bit
of stored information from the computer in seconds.
Relevance of Information in Decision Making:-

The word ―decision ―is derived from the Latin word ―decidoǁ. Which means ―A decision,
therefore is
A Settlement
A fixed intuition to bringing to a conclusive result
A judgment
A resolution
Decision: A decision is the choice out of several options made by the decision maker to achieve
some objective in a given situation.
Business Decision: Business decisions are those which are made in the process of conducting
business to achieve its objective in a given situation.
Characteristic of Business Decision Making:

a) Sequential in nature.
b) Exceedingly complex due to risk and trade off.
c) Influenced by personal values.
d) Made in institutional setting and business environment.
Rational Decision Making: A rational decision is the one which, effectively and efficiently,
ensure the achievement of the goal for which the decision is made .In reality there is no right or
wrong decision but a rational decision or irrational decision which depends on situation.
Type of Rationality:
Objectively: Maximum the value of the objectives.
Subjective: If it is minimize the attainment of value in relation to the knowledge and awareness
of subject.
Consciously: Extent the process of the decision making is a conscious one
Organizationally: degree of the orientation towards the organization.
Personal: Rational to the extent is achieves an individual‘s personal reason (goals).
Type of Decision Making System: There are two types of decision making system on the basis
of knowledge about the environment.
(i) Closed: If the manager operates in a known environment then it is called closed decision
making system.
Conditions:
a) Manager knows the set of decision alternative and know their outcome in term of values.
b) Manager has a model, by which decision alternatives can be generated, tested and ranked.
c) The manager can choose one of them, based on some goal or objective.
(ii) Open: If the manager operates in unknown environment then it is called open decision
making.
Conditions:
a) Manager does not know all alternatives.
b) Outcome is not known.
c) No methods or models are used.
d) Decide objective or goal; select one where his aspirates or desire are met best.
Types of Decision: Types of decision are based on the degree of knowledge about the out come
of the events which are yet to take place.
Certainty: If the manager has full knowledge of event or outcome then it is a situation of
certainty.
Risk: If the manager has partial knowledge or probabilistic knowledge then it is decision under
risk.
Uncertainty: If the manager does not have any knowledge, it is decision making under
uncertainty
MIS converts the uncertainty to risk and risk to certainty. The decision at the low level
management is certain, at middle level of the management the decision is under risk and at the
top level management the decision is in under uncertain.
Nature of decision: Decision making is a complex task. To resolve the complexity the nature of
decision are of two types:
Programmed and Non-Programmed Decision:

a) If a decision can be based on a rule, methods or even guidelines, it is called the programmed
decision.
b) A decision which cannot be made by using a rule or model is the non-programmed decision.
Decision Support System refers to a class of systems which support in the process of decision
making and does not always give a decision itself.
Decision Support Systems (DSS) are a specific class of computerized information system that
supports business and organizational decision-making activities. A properly designed DSS is an
interactive software-based system intended to help decision makers compile useful information
from raw data, documents, personal knowledge, and/or business models to identify and solve
problems and make decisions
DSS is an application of Hebert Simon model, as discussed, the model has three phases:
i) Intelligence
ii) Design
iii) Choice 30
The DSS basically helps in the information system in the intelligence phase where the objective
is to identify the problem and then go to the design phase for solution. The choice of selection
criteria varies from problem to problem.
It is therefore, required to go through these phases again and again till satisfactory solution is
found.
In the following three phase cycle, you may use inquiry, analysis, and models and accounting
system to come to rational solution.
These systems are helpful where the decision maker calls for complex manipulation of data and
use of several methods to reach an acceptable solution using different analysis approach. The
decision support system helps in making a decision and also in performance analysis. DSS can
be built around the rule in case of programmable decision situation. The rules are not fixed or
predetermined and requires every time the user to go through the decision making cycle as
indicated in Herbert Simon model.
Attributes:
i) DSS should be adaptable and flexible.
ii) DSS should be interactive and provide ease of use.
iii) Effectiveness balanced with efficiency (benefit must exceed cost).
iv) Complete control by decision-makers.
v) Ease of development by (modification to suit needs and changing environment) end users.
vi) Support modeling and analysis.
vii) Data access.
viii) Standalone, integration and Web-based
DSS Characteristics:
i) Support for decision makers in semi structured and unstructured problems.
ii) Support managers at all levels.
iii) Support individuals and groups.
iv) Support for interdependent or sequential decisions.
v) Support intelligence, design, choice, and implementation.
vi) Support variety of decision processes and styles
Sources and Types of Information:-

Methods of Data and Information Collection: Several methods are available for the collection
of data. The choice of method will have an impact on the quality of information. Similarly the
design of data collection method also decides the quality of data and information.
Following are the methods of data collection:
i) Observation
ii) Experiment
iii) Survey
iv)Subjective Estimation
v) Transaction Processing
vi)Purchase from Outside
vii) Publication
viii) Government Agencies
An information source is a source of information for somebody, i.e. anything that might inform
a person about something or provide knowledge about it. Different types of questions require
different sources of information. Information sources may be observations, people, speeches,
documents, pictures, organizations, websites, etc. They may be primary sources, secondary
sources and tertiary sources and so on.
Primary sources are original materials. Information for which the writer has no personal
knowledge is not primary, although it may be used by historians in the absence of a primary
source. In the study of history as an academic discipline, a primary source (also called original
source or evidence) is an artifact, a document, a recording, or other source of information that
was created at the time under study. It serves as an original source of information about the topic.
Similar definitions are used in library science, and other areas of scholarship. In journalism, a
primary source can be a person with direct knowledge of a situation, or a document written by
such a person
Secondary source is a document or recording that relates or discusses information originally

presented elsewhere. A secondary source contrasts with a primary source, which is an original
source of the information being discussed; a primary source can be a person with direct
knowledge of a situation, or a document created by such a person.
Secondary sources involve generalization, analysis, synthesis, interpretation, or evaluation of the
original information. Primary and secondary are relative terms, and some sources may be
classified as primary or secondary, depending on how it is used. An even higher level, the
tertiary source, such as an encyclopedia or dictionary, resembles a secondary source in that it
contains analysis, but attempts to provide a broad introductory overview of a topic
A tertiary source is an index and/or textual condensation of primary and secondary sources.
Some examples of tertiary sources are almanacs, guide books, survey articles, timelines, and user
guides. Depending on the topic of research, a scholar may use a bibliography, dictionary, or
encyclopedia as either a tertiary or a secondary source.
As tertiary sources, encyclopedias and textbooks attempt to summarize and consolidate the
source materials into an overview, but may also present subjective commentary and analysis
(which are characteristics of a secondary source).
In some academic disciplines the distinction between a secondary and tertiary source is relative
but in historiography it is absolute.
In the UNISIST model, a secondary source is a bibliography, whereas a tertiary source is a
synthesis of primary sources
A business has several information systems:

(A) Formal Information System
(B) Informal Information System
(C) Computer Based Information System
Formal Information System: It is based on organizational chart represented by the
organization.
Informal Information System: It is an employee based system designed to meet personal and
vocational needs and to help in the solution of work-related problems. It also funnels information
upward through indirect channels. It works within the framework of the business and its stated
policies.
Computer Based Information System (CBIS): This category of information system depends
mainly on the computer for handling business application. System analysis develops different
types of information system to meet variety of business needs. There is class of system
collectively known as computer based information system. They can be classified as :
Transaction Processing System (TPS)
Management Information System (MIS)
Decision Making System (DSS)
Office Automation System (OAS)
Cost Benefit Analysis –Quantitative and Qualitative Aspects:-
The valuation of benefits and costs should reflect preferences revealed by choices which have
been made. For example, improvements in transportation frequently involve saving time. The
question is how to measure the money value of that time saved. The value should not be merely
what transportation planners think time should be worth or even what people say their time is
worth. The value of time should be that which the public reveals their time is worth through
choices involving tradeoffs between time and money. If people have a choice of parking close to
their destination for a fee of 50 cents or parking farther away and spending 5 minutes more
walking and they always choose to spend the money and save the time and effort then they have
revealed that their time is more valuable to them than 10 cents per minute. If they were
indifferent between the two choices they would have revealed that the value of their time to them
was exactly 10 cents per minute.
The most challenging part of CBA is finding past choices which reveal the tradeoffs and
equivalencies in preferences. For example, the valuation of the benefit of cleaner air could be
established by finding how much less people paid for housing in more polluted areas which
otherwise was identical in characteristics and location to housing in less polluted areas.
Generally the value of cleaner air to people as revealed by the hard market choices seems to be
less than their rhetorical valuation of clean air.
In order for the business case to have the best chance of securing the desired funds, a
significant portion of the proposal should focus on the quantitative aspects of proposed projects,
as opposed to the qualitative characteristics. Quantitative analysis focuses on measurable
numeric data while qualitative analysis is based on observed characteristics that are difficult to
measure. An example of qualitative data associated with a software implementation would be the
cost of savings realized, while an example of qualitative data could be improved employee
morale.
Assessing Information Needs of the Organization.

To facilitate the management decision making at all levels of company, the MIS must be
integrated. MIS units are companywide. MIS is available for the Top management. The top
management of company should play an active role in designing, modifying and maintenance of
the total organization wide management information system.
Information system and Information technology have become a vital component of any
successful business and are regarded as major functional areas just like any other functional area
of a business organization like marketing, finance, production and HR. Thus it is important to
understand the area of information system just like any other functional area in the business.
MIS is important because all businesses have a need for information about the tasks which are to
be performed. Information and technology is used as a tool for solving problems and providing
opportunities for increasing productivity and quality. Information has always been important but
it has never been so available, so current and so overwhelming. Efforts have been made for
collection and retrieval of information, however, challenges still remain in the selection analysis
and interpretation of the information that will further improve decision making and productivity.
MIS for a Business Organization:

working.
Support Operation of a Business Organization: MIS supports operations of a business
flexibility in the operation of an organization.
strategies to meet competitive needs.
Strategies for an Organization: Today each business is running in a competitive market. MIS
supports the organization to evolve appropriate strategies for the business to assent in a
Dimensions of Information: There are three most common dimensions of information for MIS
(i) Economic Dimension: Economic dimension of information refers to the cost of information
and its benefits. Generation of information costs money. Measuring cost and benefit of
information is difficult because of intangible characteristic of information.
Cost of Information: Cost of information may include: Cost of acquiring data, Cost of
maintaining data, Cost of generating information and Cost of communication information. Costs
related to the response time require generating information and communicating it. Thus, for
system with low response time, the cost is high. The cost is depends on accuracy, speed of
generation etc.
Value of Information: Information has a cost for its acquisition and maintenance. Thus before a
particular piece of information is acquired, decision maker must know its value. The information
has a perceived value in terms of decision making. The decision maker feels more secured when
additional information is received in case of decision making under uncertainty or risk.
Perfect Information: The information is called a Perfect Information, if it wipes out
uncertainty or risk completely. However, perfect information is a myth.
The value of information is the value of the change in decision behavior because of the
information. The change in the behavior due to new information is measured to determine the
benefit from its use. To arrive at the value of information, the cost incurred to get this
information is deducted from the benefit.
Value of information = Cost to get information-benefit
Given a set of possible decisions, a decision maker will select one on the basis of the available
information. If the new information causes a change in the decision, then the value of
information is the difference in the value between outcome of the old decision and that of new
decision, less the cost obtaining the new information. The value of the additional information
making the existing information perfect (VPI) is: VPI = (V2 - V1) - (C2 - C1) Where V is the
value of the information and C is the cost of obtaining the information. V1 and C1 relate to one
set of information V2, C2 relate to the new set. In MIS, the concept of the value of information is
used to find out the benefit of perfect information and if the value is significantly high, the
system should provide it. If the value is insignificant, it would not be worth collecting the
additional information.
(ii) Business Dimension: Different types of information are required by managers at different
levels of the management hierarchy. The information needs of managers at strategic planning
level are altogether different that those of operational control managers. It is because of the fact
that managers at different levels are required to perform different functions in an organization.
(iii) Technical Dimension: This dimension of information refers to the technical aspects of the
database. It includes the capacity of database, response time, security, validity, data
interrelationship etc.
UNIT- 4
Recent Developments in the Application of Information Technology (IT) to Population
Data Collection, Processing and Dissemination
1: INTRODUCTION
The past decade has seen a quantum leap in Information Technology (IT) which, coupled with
improved survey methodologies and procedures, will greatly enhance data quality and timeliness
as well as reduce manpower needs. IT also opens up new methods of data dissemination, which
facilitates analysis and wider circulation. Responding to the new opportunities available, the
Department of Statistics has undertaken a thorough re-examination of its Census and population
Surveys in order to exploit IT possibilities to its fullest potential. This paper will discuss
Singapore’s plans to apply the latest IT applications for efficient field operation and data
processing in the upcoming Census 2000. It begins with a brief description of the technologies
used in previous censuses, followed by possible ways to incorporate the latest IT innovations in
Census 2000. IT plans in data collection; data processing and data dissemination are then
discussed.
1A: Use of Technology in Previous Population Censuses and Surveys

The 1980 Census adopted the traditional method of census-taking and used mainframe
computers extensively for data processing and tabulation. The 1990 Census was a bold
experiment in data collection methodology. Administrative records were merged through unique
identification numbers, reticulation of census districts was computerized and a pre-census
household database was created to facilitate information collection from households. An
integrated database system was used to capture and update data, while fieldwork was monitored
through hand-held computers. In 1995, the mid-decade General Household Survey successfully
adopted Computer Assisted Telephone Interviewing (CATI) as the main mode of data collection
from households. 2 Census 2000 will most likely exploit IT innovations and cutting edge
technologies in data collection and processing. Several interesting developments are presently
happening which makes this possible. Firstly, the PC penetration rate has reached about one-
third of total households, many of which have Internet access. With the government’s policy of
increasing IT literacy and promoting the use of the Internet in schools, PC and Internet
penetration levels are likely to be much higher by 2000. Secondly, in line with Singapore’s
vision of transforming the Republic into “an intelligent island” by the year 2000, an island-wide
multimedia broadband network will be in place by 1998. This nation-wide computer network
will give Singaporeans access to a wide range of services like high-speed Internet access,
teleshopping, video-conferencing, entertainment-on-demand, electronic libraries and government
services from the comfort of their homes.
1B: Approach to Census 2000

The starting point of Census 2000 will be the HR (Household Registration) Database which is
maintained by DOS. This database contains basic particulars of all citizens and permanent
residents in Singapore. It is regularly updated with records from various administrative sources.
Basic personal and some socio-demographic information on individuals will be available for
Census 2000. However, data items that is not available in any Government source (e.g.
occupation and transport mode) need to be collected during census.
By further merging the HR Database with telephone numbers and foreigner’s data from the
respective authorities, a pre-census database will be formed. This will act as a live database
whereby it is consistently updated as households respond through the various data collection
modes including Internet submission, CATI, CAPI and mail or fax back methods.
2: DATA COLLECTION
Singapore can no longer afford to collect data using the traditional approach of full fieldwork
enumeration. This is because of the tight labour situation we are facing. The 2000 Census will
learn from and advance the 3 experiences of the 1990 Census and the 1995 mini-Census
(General Household Survey) data collection methodologies. The 1990 Census adopted the pre-
census database approach and collected other data through field enumeration. The 1995 mini-
Census exploited IT further. Not only were records of individuals extracted from administrative
Databases, they were channeled to a Computer-Assisted Telephone Interviewing (CATI) system.
The 1995 mini-Census is believed to be the first large-scale survey in the region to be conducted
with the help of computers and telephones. The interviewing process was re-engineered to
improve the survey operational efficiency and to protect the privacy of the homes of respondents.
For the Census 2000, relevant data on individuals from various sources, which are merged into
the HR Database, will be pre-printed onto Census forms for verification by households. Only
new data items or those not available in HR Database require responses from the households.
This will result in significant savings in time and effort on the part of enumerators in form filling
and on the part of coders and data-entry operators.
2A: CATI
Instead of interviewing and collecting information from the field for the 1995 mini-Census, data
were obtained through telephone interviews and entered directly into the computer by the
interviewers. Simple editing checks were also built into the system for direct on-line correction
or verification with the respondents. The need to verify particulars with the respondents at a later
date was greatly minimized. The CATI system in 1995 was built from scratch, using Microsoft
Visual Basic 3.0 (VB), together with Microsoft Access 1.1 as the database engine.
2B: Internet Submission

The Department of Statistics would take opportunity of the ever increasing popularity of the
Internet to collect data from households which have Internet access. The households will be
supplied with passwords, which will enable them to enter the Department’s Census web-site,
retrieve their household 6 record and input their individual and household particulars. The data
will then be transmitted, via the Internet, to the Census Office to update the live database. This
electronic data interchange (EDI) approach would further alleviate the administrative burden of
respondents, reduce manpower required to conduct the Census, improve statistical processing
time and further increase the efficiency of internal operations. The Department views this
restructuring in data processing methodology as necessary, in the light of new IT developments
and the technology push. What is required then is for the Department to position Internet
Submission within the coherent system of computer-based tools which have already been
developed to increase productivity and efficiency as well as improve data timeliness.
2C: Mail-Out/Mail-In-Or-Transmit Back Electronically

For households with unlisted telephone numbers, the mail-out/mail-back approach can be
adopted. Forms with pre-printed personal particulars could be sent out to the households. Apart
from households mailing the completed forms back, we are studying several options. These
include the use of dedicated digitized fax machines which read in the images and convert them to
codes, interactive multimedia, and of course providing a hotline for such households to be
interviewed immediately through CATI.
2D: CAPI
The CAPI system could be used in the 2000 Census. The smaller group of enumerators could
each be equipped with a note-book computer to enter information on the spot. The interviewing
process, including routing and checking, would be guided by the program in the enumerator’s
computer. This system of computer-assisted personal interviewing allows for the integration of
various traditional steps, such as data collection, data entry and data editing, into one interactive
cycle. Hence, a clean, machine readable record directly after the completion of the interview will
be produced. CAPI would also ensure streamlined questioning. The automatic branching into
relevant questions would be of tremendous help to the 7 Interviewers. Furthermore, it ensures
that all relevant data items are answered by the respondents. Selection of appropriate descriptive
responses from a “pull-down” menu during interviewing eradicates coding errors later in the data
Processing stage, as these are automatically coded at the front-end.
3 : DATA PROCESSING
Owing to the huge number of documents involved and the considerable Amount of manpower
time that have to be devoted to handling them, the traditional approach of processing data has to
be further improved upon. Further use of IT in data processing would help alleviate the
manpower shortage problem and ensure speedy and reliable results. It is planned for data
processing to be undertaken concurrently with the data collection stage, especially for data
obtained through the CATI, CAPI and the Internet. These systems would automatically screen
for obvious errors, omissions and glaring inconsistencies during the interviewing stage with the
respondents, so that these can be corrected on the spot. This process greatly reduces the need for
data entry operators during the data processing stage, as evident in the 1995 mini-Census.
3A : Imaging and Intelligent Character Recognition

Census forms returned through the “mail or transmit-back” approach during Census 2000 would
be designed for direct imaging to create electronic Documents. Intelligent character recognition
will then be used to convert the Responses for each data item from an image into character
format, which can Then be processed by the computer. As much information as possible in the
Census forms would be converted into computer files with minimum human Intervention. In
addition to being machine-readable, the census forms would be Designed to be “user-friendly”.
OMR can be adopted to capture self-coded responses where the number Of possible answers to a
question are limited or a large proportion of responses Fall into a few categories. On the other
hand, OCR can capture the remaining Write-in responses e.g. occupation, place of work and
industry.
3B: Automatic Coding

The 1990 Census and 1995 mini-Census made use of automatic coding in The first instance to
code occupation and industry at detailed levels. This process Involves the matching of the name
of firm/organization for industry coding or Occupational description for occupation coding with
computer data dictionaries. The industry data dictionary contains the names of single-
establishment Companies as well as multi-establishment companies with at least 20 employees
And having the specific five-digit Singapore Standard Industrial Classification (SSIC) codes.
Common abbreviations or synonyms of companies’ names are Added to the dictionary to
increase the matching rate. The occupation data dictionary is created from the Singapore
Standard Occupational Classification (SSOC) and contains occupational titles and Synonyms,
alternative occupational titles and other related terms. The coding System is designed to bypass
superfluous words and characters that do not Elaborate or explain the job content. The SSOC
data dictionary is enhanced as And when new occupational titles and descriptions or new
synonyms and Abbreviations are encountered, so that the automatic coding rate can be improved
for subsequent rounds of matching.
3C: Computer-Assisted Coding

In the 1990 Census and the 1995 mini-Census, occupation or industry Descriptions, which could
not be automatically coded by the system, were Batched for Computer-Assisted Coding (CAC).
This involved manual effort in Searching for the correct code associated with the descriptive
answer. For the Coding of industry, the SSIC data dictionary, which contains three fields,
Namely, activity of company, main product of company and the corresponding SSIC code, was
matched with the descriptions of the “product” and the “activity/service” captured. For the
coding of occupation, the coders studied the Occupation description available to them together
with other pertinent Information extracted for each working person on the screen. They then
referred to a computerized alphabetical index of occupational description through a “pull down”
Menu and selected the appropriate response. Once selected, the system stored the 5-digit SSOC
code that corresponds to the description. For the 2000 Census, these systems could well serve as
prototypes to be further improved upon. The Batch-Editing sub-system to check intra- and inter
record Consistencies, the Housekeeping sub-system to check for duplicate Records and the
Derivation sub-system to derive information not explicitly Collected from the households would
also be enhanced.
3D: Data Warehousing and Data Mining

Data warehousing concept will be used to manage and store the vast Quantity of data efficiently.
Database warehousing is a major driver in IT Presently and offers a data storage architecture for
collating, processing and Managing data from different sources and databases into a single
repository so That analysis can be performed with a user-friendly interface. With the data
warehouse, related data could be grouped into subject Matter “data marts” for easy access.
Furthermore, data collected from subsequent surveys or administrative sources could be easily
matched with Census records For more detailed analysis and comparison. The data warehouse
also supports the use of multiple processors in processing the vast volume of data, speeding up
The access of Census data significantly. A new tabulation software, FASTAB, would be used to
tabulate the Massive amount of information stored in the data warehouse. The Department of
Statistics, in collaboration with the Information Technology Institute, is currently Developing
FASTAB, which offers a user-friendly windows interface to cross tabulate Data fields extremely
quickly. In addition, FASTAB provides good Presentation of tabulated data and enables
automatic transfer of tabulations into The Microsoft Office environment for further manipulation
and analysis. Data mining tools will be used during the analysis stage to automate the Process of
finding key trends and results from the vast volume of data collected in the Census. With the
rapid changes in IT technology, it will be prudent to keep abreast of the latest development in
new tools and programs and to finalize The strategies nearer the end of data processing stage.
4: DATA DISSEMINATION
All the tabulations generated for Census 2000 will be of postscript Quality to be printed on desk-
top laser printers for publication in hard copies. This traditional paper publication method will
still retain its importance in providing official statistics to a wide range of users. However,
advances in IT Are providing more opportunities for data dissemination. Census results can be
Disseminated in other electronic media such as diskettes and CD-ROMs. This Will be of
particular interest to researchers. Providing on-line access is a popular method of information
Dissemination that is gaining greater acceptance. Database containing census Data can be
created to provide on-line access to interested users. Subscribers of The Time Series Retrieval
and Dissemination (TREND) System, which is a Windows-based on-line system developed by
the Department of Statistics, are Able to obtain time-series data on economic and social topics.
Internet users would also be able to access census data through the Statistics Singapore Home
Page.
5: CONCLUSION
The Department of Statistics is continually exploring ways to improve Survey operations and
enhance the quality and timeliness of its products and services. Wherever feasible, IT advances
are incorporated to achieve the objectives. Census 2000 will showcase some of the innovative
solutions. These include database merging, pre-printing of particulars on census forms and the
use of Internet, CATI and CAPI. New IT tools are sought to enhance and strengthen the data
collection, processing and dissemination processes, while Keeping in perspective the need to
moderate cost increases and improve data Quality and timeliness.
Multimedia Approach to Information Processing

Multimedia is media and content that uses a combination of different content form. This
contrasts with media that use only rudimentary computer displays such as text-only or traditional
forms of printed or hand-produced material. Multimedia includes a combination of text, audio,
still images, animation, videos or interactivity content forms.
Multimedia is usually recorded and played, displayed, or accessed by information content
processing devices, such as computerized and electronic devices, but can also be part of a live
performance. Multimedia devices are electronic media devices used to store and experience
multimedia content. Multimedia is distinguished from mixed media in fine art; by including
audio, for example, it has a broader scope. The term "rich media" is synonymous for interactive
multimedia. Hypermedia can be considered one particular multimedia application.
Major characteristics of multimedia
Multimedia presentations may be viewed by person on stage, projected, transmitted, or played
locally with a media player. A broadcast may be a live or recorded multimedia presentation.
Broadcasts and recordings can be either analog or digital electronic media technology. Digital
online multimedia may be downloaded or streamed. Streaming multimedia may be live or on-
demand.
Multimedia games and simulations may be used in a physical environment with special effects,
with multiple users in an online network, or locally with an offline computer, game system, or
simulator.
The various formats of technological or digital multimedia may be intended to enhance the users'
experience, for example to make it easier and faster to convey information. Or in entertainment
or art, to transcend everyday experience.
A laser show is a live multimedia performance.

Enhanced levels of interactivity are made possible by combining multiple forms of media
content. Online multimedia is increasingly becoming object-oriented and data-driven, enabling
applications with collaborative end-user innovation and personalization on multiple forms of
content over time. Examples of these range from multiple forms of content on Web sites like
photo galleries with both images (pictures) and title (text) user-updated, to simulations whose co-
efficient, events, illustrations, animations or videos are modifiable, allowing the multimedia
"experience" to be altered without reprogramming. In addition to seeing and hearing, haptic
technology enables virtual objects to be felt. Emerging technology involving illusions of taste
and smell may also enhance the multimedia experience.
History of the term

The term multimedia was coined by singer and artist Bob Goldstein (later 'Bobb Goldsteinn') to
promote the July 1966 opening of his "Light Works at L'Oursin" show at Southampton, Long
Island. Goldstein was perhaps aware of a British artist named Dick Higgins, who had two years
previously discussed a new approach to art-making he called "inter media."
On August 10, 1966, Richard Albarino of Variety borrowed the terminology, reporting:
“Brainchild of song scribe-comic Bob (‘Washington Square’) Goldstein, the ‘Light works’ is the
latest multi-media music-cum-visuals to debut as discothèque fare.” Two years later, in 1968, the
term "multimedia" was re-appropriated to describe the work of a political consultant, David
Sawyer, the husband of Iris Sawyer—one of Goldstein’s producers at L’Oursin.
Multimedia (multi-image) setup for the 1988 Ford New Car Announcement Show, August 1987,
Detroit, MI
In the intervening forty years, the word has taken on different meanings. In the late 1970s, the
term referred to presentations consisting of multi-projector slide shows timed to an audio
track.[3][4] However, by the 1990s 'multimedia' took on its current meaning.
In the 1993 first edition of McGraw-Hill’s Multimedia: Making It Work, Tay Vaughan declared
“Multimedia is any combination of text, graphic art, sound, animation, and video that is
delivered by computer. When you allow the user – the viewer of the project – to control what
and when these elements are delivered, it is interactive multimedia. When you provide a
structure of linked elements through which the user can navigate, interactive multimedia
becomes hypermedia.” Multimedia System
A computer system with the capabilities to capture, digitize, compress , store, decompress and
present information is called multimedia system. The aim of multimedia system is to provide a
creative and effective way of producing, storing and communicating information. The
application areas of multimedia are marketing, training, education, entertainment, etc.
Application of multimedia:-
a) Multimedia presentation: Multimedia presentation can be used to better explain a subject
matter to the students because it enhances the comprehension capability of students. It is
extremely effective in getting across new ideas and concepts.
b) Entertainment: Multimedia technology is used by entertainment industry as in games, films,
cartoons, animation, sound effects etc.
c) Software: Multimedia is used for training purpose or guide. So users can operate software
without help of trainers.
d) Business communication: Multimedia is very powerful tool for enhancing the quality of
business communication.
e) Multimedia web pages: Multimedia feature in web pages make more attractive, user friendly.
Several examples are as follows:

Creative industries
Creative industries use multimedia for a variety of purposes ranging from fine arts, to
entertainment, to commercial art, to journalism, to media and software services provided for any
of the industries listed below. An individual multimedia designer may cover the spectrum
throughout their career. Request for their skills, range from technical, to analytical, to creative.
Commercial uses
Much of the electronic old and new media used by commercial artists is multimedia. Exciting
presentations are used to grab and keep attention in advertising. Business to business, and
interoffice communications are often developed by creative services firms for advanced
multimedia presentations beyond simple slide shows to sell ideas or liven-up training.
Commercial multimedia developers may be hired to design for governmental services and
nonprofit services applications as well.
Entertainment and fine arts

In addition, multimedia is heavily used in the entertainment industry, especially to develop
special effects in movies and animations. Multimedia games are a popular pastime and are
software programs available either as CD-ROMs or online. Some video games also use
multimedia features. Multimedia applications that allow users to actively participate instead of
just sitting by as passive recipients of information are called Interactive Multimedia. In the Arts
there are multimedia artists, whose minds are able to blend techniques using different media that
in some way incorporates interaction with the viewer. One of the most relevant could be Peter
Greenaway who is melding Cinema with Opera and all sorts of digital media. Another approach
entails the creation of multimedia that can be displayed in a traditional fine arts arena, such as an
art gallery. Although multimedia display material may be volatile, the survivability of the
content is as strong as any traditional media. Digital recording material may be just as durable
and infinitely reproducible with perfect copies every time.
Education
In Education, multimedia is used to produce computer-based training courses (popularly called
CBTs) and reference books like encyclopedia and almanacs. A CBT lets the user go through a
series of presentations, text about a particular topic, and associated illustrations in various
information formats. Edutainment is the combination of education with entertainment, especially
multimedia entertainment.
Learning theory in the past decade has expanded dramatically because of the introduction of
multimedia. Several lines of research have evolved (e.g. Cognitive load, Multimedia learning,
and the list goes on). The possibilities for learning and instruction are nearly endless.
The idea of media convergence is also becoming a major factor in education, particularly higher
education. Defined as separate technologies such as voice (and telephony features), data (and
productivity applications) and video that now share resources and interact with each other,
synergistically creating new efficiencies, media convergence is rapidly changing the curriculum
in universities all over the world. Likewise, it is changing the availability, or lack thereof, of jobs
requiring this savvy technological skill.
The English education in middle school in China is well invested and assisted with various
equipments. In contrast, the original objective has not been achieved at the desired effect. The
government, schools, families, and students spend a lot of time working on improving scores, but
hardly gain practical skills. English education today has gone into the vicious circle. Educators
need to consider how to perfect the education system to improve students’ practical ability of
English. Therefore an efficient way should be used to make the class vivid. Multimedia teaching
will bring students into a class where they can interact with the teacher and the subject.
Multimedia teaching is more intuitive than old ways; teachers can simulate situations in real life.
In many circumstances teachers don’t have to be there, students will learn by themselves in the
class. More importantly, teachers will have more approaches to stimulating students’ passion of
learning
Journalism
Newspaper companies all over are also trying to embrace the new phenomenon by implementing
its practices in their work. While some have been slow to come around, other major newspapers
like The New York Times, USA Today and The Washington Post are setting the precedent for the
positioning of the newspaper industry in a globalized world.
News reporting is not limited to traditional media outlets. Freelance journalists can make use of
different new media to produce multimedia pieces for their news stories. It engages global
audiences and tells stories with technology, which develops new communication techniques for
both media producers and consumers. Common Language Project is an example of this type of
multimedia journalism production.
Multimedia reporters who are mobile (usually driving around a community with cameras, audio
and video recorders, and wifi-equipped laptop computers) are often referred to as Mojos, from
mobile journalist.
Engineering
Software engineers may use multimedia in Computer Simulations for anything from
entertainment to training such as military or industrial training. Multimedia for software
interfaces are often done as collaboration between creative professionals and software engineers.
Industry
In the Industrial sector, multimedia is used as a way to help present information to shareholders,
superiors and coworkers. Multimedia is also helpful for providing employee training, advertising
and selling products all over the world via virtually unlimited web-based technology
Mathematical and scientific research

In mathematical and scientific research, multimedia is mainly used for modeling and simulation.
For example, a scientist can look at a molecular model of a particular substance and manipulate
it to arrive at a new substance. Representative research can be found in journals such as the
journal of multimedia .
Medicine
In Medicine, doctors can get trained by looking at a virtual surgery or they can simulate how the
human body is affected by diseases spread by viruses and bacteria and then develop techniques
to prevent it.
Document imaging
Document imaging is a technique that takes hard copy of an image/document and converts it into
a digital format (for example, scanners).
Disabilities
Ability Media allows those with disabilities to gain qualifications in the multimedia field so they
can pursue careers that give them access to a wide array of powerful communication forms.
Miscellaneous
In Europe, the reference organization for Multimedia industry is the European Multimedia
Associations Convention (EMMAC).
Structuring information in a multimedia form
Multimedia represents the convergence of text, pictures, video and sound into a single form. The
power of multimedia and the Internet lies in the way in which information is linked.
Multimedia and the Internet require a completely new approach to writing. The style of writing
that is appropriate for the 'on-line world' is highly optimized and designed to be able to be
quickly scanned by readers.[8]
A good site must be made with a specific purpose in mind and a site with good interactivity and
new technology can also be useful for attracting visitors. The site must be attractive and
innovative in its design, function in terms of its purpose, easy to navigate, frequently updated and
fast to download.[9]
When users view a page, they can only view one page at a time. As a result, multimedia users
must create a ‘mental model of information structure’
Decision of appropriate information Technology for proper MIS.

Information is a critical resource in the operation and management of organizations. Timely
availability of relevant information is vital for effective performance of managerial functions
such as planning, organizing, leading, and control. An information system in an organization is
like the nervous system in the human body: it is the link that connects all the organization's
components together and provides for better operation and survival in a competitive
environment. Indeed, today's organizations run on information.
The term information system usually refers to a computer-based system, one that is designed to
support the operations, management, and decision functions of an organization. Information
systems in organizations thus provide information support for decision makers. Information
systems encompass transaction processing systems, management information systems, decision
support systems, and strategic information systems.
Information consists of data that have been processed and are meaningful to a user. A system is a
set of components that operate together to achieve a common purpose. Thus a management
information system collects, transmits, processes, and stores data on an organization's resources,
programs, and accomplishments. The system makes possible the conversion of these data into
management information for use by decision makers within the organization. A management
information system, therefore, produces information that supports the management functions of
an organization (Davis & Olson, 1985; Lucas, 1990; McLeod, 1995).
Value of Information
Information has a great impact on decision making, and hence its value is closely tied to the
decisions that result from its use. Information does not have an absolute universal value. Its value
is related to those who use it, when it is used, and in what situation it is used. In this sense,
information is similar to other commodities. For example, the value of a glass of water is
different for someone who has lost his way in Arctic glaciers than it is to a wanderer in the
Sahara Desert.
Economists distinguish value from cost or price of a commodity incurred to produce or procure
the commodity. Obviously, the value of a product must be higher than its cost or price for it to be
cost-effective.
The concept of normative value of information has been developed by economists and
statisticians and is derived from decision theory. The basic premise of the theory is that we
always have some preliminary knowledge about the occurrence of events that are relevant to our
decisions. Additional information might modify our view of the occurrence probabilities and
consequently change our decision and the expected payoff from the decision. The value of
additional information is, hence, the difference in expected payoff obtained by reduced
uncertainty about the future event.
Information supports decisions, decisions trigger actions, and actions affect the achievements or
performance of the organization. If we can measure the differences in performance, we can trace
the impact of information, provided that the measurements are carefully performed, the
relationships among variables are well defined, and possible effects of irrelevant factors are
isolated. The measured difference in performance due to informational factors is called the
realistic value or revealed value of information.
For most information systems, particularly those supporting middle and top management, the
resulting decisions often relate to events that are not strictly defined and involve probabilities
that cannot be quantified. The decision-making process often is obscure and the outcomes are
scaled by multiple and incomparable dimensions. In such cases, we may either attempt to
perform a multi attribute analysis or derive an overall subjective value. The subjective value
reflects people's comprehensive impression of information and the amount they are willing to
pay for specific information (Ahituv, Neumann, & Riley, 1994).
Information as an Aid to Decision Making

Simon (1977) describes the process of decision making as comprising four steps: intelligence,
design, choice, and review. The intelligence stage encompasses collection, classification,
processing, and presentation of data relating to the organization and its environment. This is
necessary to identify situations calling for decision. During the decision stage, the decision
maker outlines alternative solutions, each of which involves a set of actions to be taken. The data
gathered during the intelligence stage are now used by statistical and other models to forecast
possible outcomes for each alternative. Each alternative can also be examined for technological,
behavioral, and economic feasibility. In the choice stage, the decision maker must select one of
the alternatives that will best contribute to the goals of the organization. Past choices can be
subjected to review during implementation and monitoring to enable the manager to learn from
mistakes. Information plays an important role in all four stages of the decision process. Figure 1
indicates the information requirement at each stage, along with the functions performed at each
stage and the feedback loops between stages.
Classification of Management Information Systems

There are various types of management information systems. Mason and Swanson (1981)
describe four categories of management information systems: (1) databank information system,
(2) predictive information system, (3) decision-making information system, and (4) decision-
taking information system. The classification is based on the level of support that the information
system provides in the process of decision making. Sachdeva (1990) comprehensively presents
these four types of systems:
Databank Information System: - The responsibility of this information system is to observe,
classify, and store any item of data which might be potentially useful to the decision maker.
Examples of the kind of data that might be recorded in such a database for a given village,
region, or area are as follows:
·Number of farms
· Number of units of arable land (hectares, fedans, acres)
· Average farm size
· Amounts of selected farm inputs applied annually
· Production per year on a unit of land for selected crops
A second example of data that might be recorded in a database (this time involving data internal
to the organization) is as follows:
· Number of extension staff by category and assigned to a particular village, region, or area
· Number of work hours devoted by staff to selected concerns for a particular village, region, or
area
· Total extension salary costs and other expenses by village, region, or area
· Number of demonstrations conducted for selected farm technologies by village, region, or area
· Number of on-farm trials conducted for selected farm technologies by region or area
· Number of radio, TV, and print media releases regarding selected farm technologies by time
period and region or area
Figure 1. Role of information in the decision process.

Each of these databases can be summarized and converted to single tabular presentations of
information of interest to management. When information from two or more time periods is
compared, trends can be observed.
Predictive Information System: - This system moves beyond pure data collection and the
determination of trends over time. Predictive information systems provide for the drawing of
inferences and predictions that are relevant to decision making. If data from the above examples
were to be used in this way, it is possible to obtain information useful for making predictions or
for drawing inferences. For example, tables containing the following information for a given
village, region, or area might be produced:
· The ratio between the number of farms and the various categories of extension staff members
· The ratio between the amount of farmland and the various categories of extension staff
members
· Amount of extension financial operating resources allocated per year to selected farmer
problems or concerns
· Amount of extension financial resources, both salary and operating expenses, allocated per year
to selected extension approaches to solving different farmer problems or concerns
Information obtained from these kinds of analyses is normally summarized in a two-way tabular
format. And likewise, the information often is compared over time. Managers can then use such
information to make predictions, for example to forecast costs of particular undertakings for
budgeting purposes or as a basis for predicting results if a given change is made, such as change
in the number of demonstrations with a given change in staffing.
Decision-Making Information System. This system goes one step further in the process of
decision making and incorporates the value system of the organization or its criteria for choosing
among alternatives. An extension organization's values are many and varied. They include
concerns for resolving farmer problems, increasing and providing for stability of farmer incomes,
and improving the quality of farm life. But they also including and providing for stability of
farmer incomes, and improving the quality of farm life. But they also include an intent to provide
well for staff members (training, adequate salaries, etc.) and to aid in the process of bringing
about rural economic development.
Table 1. Information Groups in India's Agricultural Extension System.

Levels Groups Types of Information Needed
Central Extension commissioner, joint (1) Information on human resources,
commissioners, directors, joint directors, plans, and budgets for various extension
etc. of the directorate of extension, services
ministry of agriculture (2) Statewide monitoring and evaluation
of activities completed
State Director of agriculture, additional (1) District wide information on
director, joint directors, etc. of the state extension programs, activities,
department of agriculture expenditures, etc
(2) Research-extension linkages and
coordination with other allied
departments such as animal husbandry
and horticulture
District District agricultural officers (DAOs) (1) Information on extension resources
and constraints at subdivision and block
levels
(2) Training requirements of staff at
subdivision and block levels
Subdivision Sub divisional agricultural officers (1) Field demonstration programs,
activities planned and implemented by
subject-matter specialists (SMSs) (zone)
at the block level
(2) Technical program and constraints
identified at the block level
Block Agricultural extension officers (1) Performance of VEWs in terms of
(county) achievements in extension activities
(2) Field-level problem of assessment of
beneficiaries' response to various
extension programs
Information regarding these various attributes helps managers to make more enlightened
decisions. Examples of ways that an extension organization uses information from a decision-
making information system are as follows:
· Change in specific farm outputs (yields, practices) following selected extension activities
· Change in staff productivity following selected interventions (in-service training, better
transport, etc)
· Comparison of relative costs and relative effectiveness of alternative extension delivery
methods
· Analysis of economic returns to farmers who adopt recommended practices as compared to
those who do not
Decision-Taking Information System:- Examples of decision-taking information systems are not

usually found in an extension organization. This is a decision system in which the information
system and the decision maker are one and the same. Management is so confident in the
assumptions incorporated in the system that it basically relegates its power to initiate action to
the system itself. Airplanes carry automatic pilot systems, which are an example of a decision-
taking system. Once activated, the system itself keeps the plane on course and at the proper
speed and altitude (according to parameters determined by the pilot). Another example of
decision-taking information systems is found in modem factory production. In automobile
production, continuous inventories of parts are maintained by computer as cars move down an
assembly line. Orders are placed automatically by the computer when additional parts are
needed. This is done without the intervention of a manager.
The choice of an appropriate management information system (MIS) category primarily depends
on the nature of the decisions it supports. While unstructured decisions may use MIS-category
(I), the highly structured ones, such as production schedules in an industry, may use MIS-
category (iv). Further, Banerjee and Sachdeva (1995) observe that "as the deep structure of the
decision problem becomes more and more understood, we may move to higher level of MIS i.e.,
from MIS-category (I) to MIS-category (ii); and MIS-category (ii) to MIS-category (iii); and so
on."
Need for automation
An automated MIS system contains data just as a manual system does. It receives input,
processes input, and delivers the processed input as output. Some input devices allow direct
human-machine communication, while others require data to be recorded on an input medium
such as a magnetizable material (specially coated plastic flexible or floppy disks and magnetic
tapes). The keyboard of a workstation connected directly to a computer is an example of a direct
input device. Use of automation makes it possible to store immense quantities of information, to
avoid many of the errors that find their way into manual records, and to make calculations and
comparisons that would be practically impossible in a manual system.
Organization of a database
Data are usually generated at the field level through transaction-processing systems, but once the
data are captured, any echelon along the organizational hierarchy may use them, provided that
information requirements have been well defined, appropriate programs have been implemented,
and a means has been arranged for the sharing of the data. This would imply that the same data
can be used by different sets of programs; hence we distinguish between the database (a set of
data) and the applications (a set of programs). In a decision support system (DSS), this set of
programs is the model base (Keen & Morton, 1978).
The term database may refer to any collection of data that might serve an organizational unit. A
database on a given subject is a collection of data on that subject that observes three criteria:
comprehensiveness (completeness), no redundancy, and appropriate structure.
Comprehensiveness means that all the data about the subject are actually present in the database.
No redundancy means that each individual piece of data exists only once in the database.
Appropriate structure means that the data are stored in such a way as to minimize the cost of
expected processing and storage (Awad & Gotterer, 1992).
The idea of a large corporate database that can be flexibly shared by several applications or
model bases has been realized by means of software packages specially devised to perform such
tasks. These packages, called database management systems (DBMSs), are available in the
market under different trade names such as ORACLE, SYBASE, INGRES, FOXBASE, and
dBASE.
Networking and interactive processing
The two principal blocks that facilitate development and use of MIS are DBMS and
telecommunications. The former makes data integration possible, while the latter brings
information closer to the end users, who constitute nodes in a telecommunication network. The
notion of telecommunications implies that some geographical distance exists between the
computer site and the users' locations and that data are electronically transmitted between them.
Remote applications may be executed between two floors in the same building, two offices in the
same city, two offices on the same continent, or two places on opposite sides of the globe
(Martin, 1990).
System alternatives and evaluation: Centralization versus decentralization
A completely centralized information system handles all processing at a single computer site,
maintains a single central database, has centralized development of applications, provides central
technical services, sets development priorities centrally, and allocates computer resources
centrally. The system's remote users are served by transporting input and output data physically
or electronically.
A completely decentralized system may have no central control of system development, no
communication links among autonomous computing units, and stand-alone processors and
databases at various sites. Each unit funds its own information-processing activities and is totally
responsible for all development and operation.
An advantage of centralized information systems is that they provide for standardization in the
collection of data and the release of information. There also are some economies of scale. A
centralized system reduces the need for multiple hardware, software, space, personnel, and
databases. It may be possible to recruit more qualified personnel in a central facility.
Observations indicate that user motivation and satisfaction are increased under a decentralized
environment. This is attained because users feel more involved and more responsible, systems
are better customized to their specific needs, and they usually get better response time in routine
operations as well as in requests for changes.
It is likely that for national agricultural extension systems, neither a completely centralized nor a
completely decentralized system is desirable. While it may be useful to decentralize hardware
and software resources at different locations, the development of applications and provision of
technical services may better be centralized.
End-user computing
The widespread use of personal computers and computer-based workstations has brought with it
the age of end-user computing. End-user computing is a generic term for any information-
processing activity performed by direct end users who actually use terminals or microcomputers
to access data and programs. The manager as end user may be provided with powerful software
(like DBMS) for accessing data, developing models, and performing information processing
directly. This has brought computing directly under the control of the end users and eliminates
their dependence on the information systems specialist and the rigidities of predesigned
procedures. They may now make ad hoc queries of information and analyze it in various ways.
They may write programs, or may often use ready-made programs stored in the computer, using
the computing power of a local PC or the mainframe to which it is connected.
Figure2. A typical MIS for a national extension system.
Illustrative computer-based MIS

A national agricultural extension system is a nationwide system managed by the national
government. In India, agriculture is a state subject under the division of powers between the
national and the state levels. Nevertheless, the national government supplements the financial
resources of the states and provides coordination at the national level. The state's administrative
machinery is divided into districts, districts into subdivisions, subdivisions into blocks. A block
is a group of villages and the basic unit for the administration of an agricultural extension
program. Data collected at the block level need to be integrated at higher administrative levels to
provide an integrated view at the district and state levels to support planning, monitoring, and
decision making.
Keeping in view the requirements of the extension system and the budget constraints of the
states, a typical design of the computer-based MIS is shown in Figure 2.
However, the actual design may vary with the size of the state and other considerations. An
integrated database for the entire state may be supported by a mainframe/minicomputer at the
state headquarters. Suitable programs for the analysis of data may be designed to provide an
interactive decision support system at the state level. Each district and subdivision may be
provided with a mini/micro computer, depending on the volume of data to be handled. The
computers in the districts and subdivisions may be networked with the state computer. The local
data may be stored and processed in the district/subdivision, and the shared data with appropriate
level of aggregation may be transmitted to the state headquarters to update the integrated
database. The districts and subdivisions would have direct access to the integrated database with
proper authorizations assigned to them through their passwords. The blocks may have only the
input-output terminals connected to the subdivision computer to feed data to the subdivision and
make on-line inquiries as and when necessary.
Choice of Appropriate IT Systems – Database, Data warehousing & Datamining Concepts
Database : An organization must have accurate and reliable data for effective decision making.
For this, the organization maintains records of various facts of its operation by building
appropriate models of the diverse classes of objects of interest. The models capture the essential
properties of the objects and records relationship among them. Such related data is called
“Database”
Objectives :
i) The users of the database establish their view of the data and its structure without regards to
the actual physical storage of the data.
ii) That the database establishes a uniform high level of accuracy and consistency. Validation
rules are applied by the DBMS.
iii) The data should be available for use by application and by queries.
iv) The data item prepared by one application are available to all applications or queries. No data
items are owned by an application.
v) The data base can be evolved according to application usage and query needs.
Elements of DBMS: The elements of database management system are :

i) Database: Databases are banks and is an important constituent of any information system.
Data bank for computerized information is organized in the form of a collection of file stored on
secondary storage media. A file is a collection of records for each entity in the system. The
record being a collection of data items representing the attributes of an entity.
ii) People: The people involved with the database system can be divided into 2 groups: those
who use the information system provided by the system and those who design develop and
manage the system itself.
iii) Database Planning and Design Technique: Since the database system involves people from
all parts of organization with variety of information needs the development and operation of
database system must be very carefully planned and managed. The data must be carefully
designed to provide efficient excess to information required by different users.
iv) Computer Hardware and Software: Computer hardware and software for DBMS are two
different important elements of DBMS. They are technological foundation of DBMS.
Database design
Database design is the process of designing the overall schema of database. This process is
mainly divided in four phases: analysis phase, design phase refinement phase and physical
design phase.
Analysis Phases: This is the initial phase of database design which includes the specification of
data stored; operation applied on the stored data and description of application which use the
data stored. This phase also takes care of existing system, its requirements and operation
performed, so that expectation from the new system can be understood.
Design Phase: It is not real analysis of enterprise. The output of the design phase is directly
converted into real database. This is divided into two parts :
a) Conceptual Design: The information gathered in first phase is converted into data model
which is used to specify data stored, data relationship and constraints applied on stored data.
b) Logical Design: Information represented in data model is converted into database schema of
chosen DBMS or the conceptual schema mentioned above is applied for implementation from
database schema.
Refinement Phase: This phase is used to correct problems which are encountered while
analyzing the relations of database schema. This phase is used to
i) Analyze the relations.
ii) Identify the anomalies.
iii) Refine database schema to correct or remove anomalies.
Physical design: This phase is used to create physical schema corresponding to the logical
schema. It is used to specify internal storage structure and file organization that is required to
store the data.
Database Management System

A data model is not just a way of structuring data: it also defines a set of operations that can be
performed on the data. A data model is a mechanism that provides abstraction for the database
application. Database modeling is used for representing entities of interest and their relationship
in database. It allows the conceptualization of the association between various entities and their
attributes.
Following are the different models of DBMS:
Hierarchical Model
Network Model
Relational Model
Most database systems are built around one particular data model, although it is increasingly
common for products to offer support for more than one model.
Hierarchical Model: In a hierarchical model, data is organized into a tree-like structure,

implying a single upward link in each record to describe the nesting, and a sort field to keep the
records in a particular order in each same-level list. Hierarchical structures were widely used in
the early mainframe database management systems, such as the Information Management
System (IMS) by IBM. This structure allows 1 : N relationship between two types of data. This
Structure is very efficient to describe many relationships in the real world; recipes, table of
contents, ordering of paragraphs, any nested and sorted information. However, the hierarchical
structure is inefficient for certain database operations when a full path is not included for each
record. One limitation of the hierarchical model is its inability to efficiently represent
redundancy in data.
Hierarchical structure of product (HDBMS)

Network Model: The network model organizes data using two fundamental constructs, called
records and sets. Records contain fields; Sets define one-to-many relationships between records:
one owner, many members. A record may be an owner in any number of sets, and a member in
any number of sets. The network model is a variation on the hierarchical model, to the extent that
it is built on the concept of multiple branches emanating from one or more nodes. The model
differs from the hierarchical model as in network model branches can be connected to multiple
nodes. The network model is able to represent redundancy in data more efficiently than in the
hierarchical model. Although it is not an essential feature of the model, network databases
generally implement the set relationships by means of pointers that directly address the location
of a record on disk. This gives excellent retrieval performance, at the expense of operations such
as database loading and reorganization.
Relational Model: Three key terms are used extensively in relational database models :
relations, attributes, and domains. A relation is a table with columns and rows. The named
columns of the relation are called attributes, and the domain is the set of values the attributes are
allowed to take. The basic data structure of the relational model is the table, where information
about a particular entity is represented in columns and rows, also called tuples. Thus, the
"relation" in "relational database" refers to the various tables in the database; a relation is a set of
tuples. The columns enumerate the various attributes of the entity and a row is an actual instance
of the entity that is represented by the relation. As a result, each tuple of the employee table
represents various attributes of a single employee. All relations in a relational database have to
adhere to some basic rules to qualify as relations. First, the ordering of columns is immaterial in
a table. Second, there can't be identical tuples or rows in a table. And third, each tuple will
contain a single value for each of its attributes.
Product database in RDBMS

The flexibility of relational databases allows programmers to write queries that were not
anticipated by the database designers. As a result, relational databases can be used by multiple
applications in ways the original designers did not foresee, which is especially important for
databases that might be used for a long time. This has made the idea and implementation of
relational databases very popular with business organization.
There are three levels of DBMS architecture:

a) Internal : Also known as storage level. This level is closest to physical storage. That it is the
one concerned with the way data is stored inside the concept system. Internal level is defined in
terms of machine oriented constructs such as bits and bytes.
b) Conceptual: Conceptual level is defined in terms of user oriented constructs such as records.
This is also called community logical level. It is a level of direction between the other 2 levels.
c) External Level: Also called user logical level. External level is the one closest to the users,
that is , it is the one concerned with the way the data is seen by individual user.
Data Warehouse
A data warehouse is a relational database that is designed for query and analysis rather than for
transaction processing. It usually contains historical data derived from transaction data, but can
include data from other sources. Data warehouses separate analysis workload from transaction
workload and enable an organization to consolidate data from several sources. This helps in:
• Maintaining historical records
• Analyzing the data to gain a better understanding of the business and to improve the
business.
In addition to a relational database, a data warehouse environment can include an extraction,
transportation, transformation, and loading (ETL) solution, statistical analysis, reporting, data
mining capabilities, client analysis tools, and other applications that manage the process of
gathering data, transforming it into useful, actionable information, and delivering it to business
users.
A common way of introducing data warehousing is to refer to the characteristics of a data
warehouse as set forth by William Inmon:
• Subject Oriented
• Integrated
• Nonvolatile
• Time Variant
Subject Oriented
Data warehouses are designed to help you analyze data. For example, to learn more about your
company's sales data, you can build a data warehouse that concentrates on sales. Using this data
warehouse, you can answer questions such as "Who was our best customer for this item last
year?" or "Who is likely to be our best customer next year?" This ability to define a data
warehouse by subject matter, sales in this case, makes the data warehouse subject oriented.
Integrated
Integration is closely related to subject orientation. Data warehouses must put data from
disparate sources into a consistent format. They must resolve such problems as naming conflicts
and inconsistencies among units of measure. When they achieve this, they are said to be
integrated.
Nonvolatile
Nonvolatile means that, once entered into the data warehouse, data should not change. This is
logical because the purpose of a data warehouse is to enable you to analyze what has occurred.
Time Variant
A data warehouse's focus on change over time is what is meant by the term time variant. In order
to discover trends and identify hidden patterns and relationships in business, analysts need large
amounts of data. This is very much in contrast to online transaction processing (OLTP) systems,
where performance requirements demand that historical data be moved to an archive.
Contrasting OLTP and Data Warehousing Environments
Figure 1-1 illustrates key differences between an OLTP system and a data warehouse.
Figure 1-1 Contrasting OLTP and Data Warehousing Environments
Description of "Figure 1-1 Contrasting OLTP and Data Warehousing Environments"
One major difference between the types of system is that data warehouses are not usually in third
normal form (3NF), a type of data normalization common in OLTP environments.
Data warehouses and OLTP systems have very different requirements. Here are some examples
of differences between typical data warehouses and OLTP systems:
• Workload
Data warehouses are designed to accommodate ad hoc queries and data analysis. You
might not know the workload of your data warehouse in advance, so a data warehouse
should be optimized to perform well for a wide variety of possible query and analytical
operations.
OLTP systems support only predefined operations. Your applications might be
specifically tuned or designed to support only these operations.
• Data modifications
A data warehouse is updated on a regular basis by the ETL process (run nightly or
weekly) using bulk data modification techniques. The end users of a data warehouse do
not directly update the data warehouse except when using analytical tools, such as data
mining, to make predictions with associated probabilities, assign customers to market
segments, and develop customer profiles.
In OLTP systems, end users routinely issue individual data modification statements to the
database. The OLTP database is always up to date, and reflects the current state of each
business transaction.
• Schema design
Data warehouses often use denormalized or partially denormalized schemas (such as a
star schema) to optimize query and analytical performance.
OLTP systems often use fully normalized schemas to optimize update/insert/delete
performance, and to guarantee data consistency.
• Typical operations
A typical data warehouse query scans thousands or millions of rows. For example, "Find
the total sales for all customers last month."
A typical OLTP operation accesses only a handful of records. For example, "Retrieve the
current order for this customer."
• Historical data
Data warehouses usually store many months or years of data. This is to support historical
analysis and reporting.
OLTP systems usually store data from only a few weeks or months. The OLTP system
stores only historical data as needed to successfully meet the requirements of the current
transaction.
Data Warehouse Architectures

Data warehouses and their architectures vary depending upon the specifics of an organization's
situation. Three common architectures are:
• Data Warehouse Architecture: Basic
• Data Warehouse Architecture: with a Staging Area
• Data Warehouse Architecture: with a Staging Area and Data Marts
Data Warehouse Architecture: Basic

Figure 1-2 shows a simple architecture for a data warehouse. End users directly access data
derived from several source systems through the data warehouse.
Figure 1-2 Architecture of a Data Warehouse
Description of "Figure 1-2 Architecture of a Data Warehouse"

In Figure 1-2, the metadata and raw data of a traditional OLTP system is present, as is an
additional type of data, summary data. Summaries are very valuable in data warehouses because
they pre-compute long operations in advance. For example, a typical data warehouse query is to
retrieve something such as August sales. A summary in an Oracle database is called a
materialized view.
Data Warehouse Architecture: with a Staging Area
You need to clean and process your operational data before putting it into the warehouse, as
shown in Figure 1-2. You can do this programmatically, although most data warehouses use a
staging area instead. A staging area simplifies building summaries and general warehouse
management. Figure 1-3 illustrates this typical architecture.
Figure 1-3 Architecture of a Data Warehouse with a Staging Area
Description of "Figure 1-3 Architecture of a Data Warehouse with a Staging Area"

Data Warehouse Architecture: with a Staging Area and Data Marts
Although the architecture in Figure 1-3 is quite common, you may want to customize your
warehouse's architecture for different groups within your organization. You can do this by
adding data marts, which are systems designed for a particular line of business. Figure 1-4
illustrates an example where purchasing, sales, and inventories are separated. In this example, a
financial analyst might want to analyze historical data for purchases and sales or mine historical
data to make predictions about customer behavior.
Figure 1-4 Architecture of a Data Warehouse with a Staging Area and Data Marts
Description of "Figure 1-4 Architecture of a Data Warehouse with a Staging Area and Data
Marts"
Note:
Data marts are an important part of many data warehouses, but they are not the focus of this
book.
Extracting Information from a Data Warehouse

You can extract information from the masses of data stored in a data warehouse by analyzing the
data. The Oracle Database provides several ways to analyze data:
• A wide array of statistical functions, including descriptive statistics, hypothesis testing,
correlations analysis, test for distribution fit, cross tabs with Chi-square statistics, and
analysis of variance (ANOVA); these functions are described in the Oracle Database
SQL Language Reference.
• OLAP
• Data Mining
Data Mining
Data mining uses large quantities of data to create models. These models can provide insights
that are revealing, significant, and valuable. For example, data mining can be used to:
• Predict those customers likely to change service providers.
• Discover the factors involved with a disease.
• Identify fraudulent behavior.
Data mining is not restricted to solving business problems. For example, data mining can be used
in the life sciences to discover gene and protein targets and to identify leads for new drugs.
Oracle Data Mining performs data mining in the Oracle Database. Oracle Data Mining does not
require data movement between the database and an external mining server, thereby eliminating
redundancy, improving efficient data storage and processing, ensuring that up-to-date data is
used, and maintaining data security.
Data mining (the analysis step of the "Knowledge Discovery in Databases" process, or KDD),
an interdisciplinary subfield of computer science, is the computational process of discovering
patterns in large data sets involving methods at the intersection of artificial intelligence, machine
learning, statistics, and database systems. The overall goal of the data mining process is to
extract information from a data set and transform it into an understandable structure for further
use. Aside from the raw analysis step, it involves database and data management aspects, data
pre-processing, model and inference considerations, interestingness metrics, complexity
considerations, post-processing of discovered structures, visualization, and online updating.
The term is a buzzword, and is frequently misused to mean any form of large-scale data or
information processing (collection, extraction, warehousing, analysis, and statistics) but is also
generalized to any kind of computer decision support system, including artificial intelligence,
machine learning, and business intelligence. In the proper use of the word, the key term is
discovery], commonly defined as "detecting something new". Even the popular book "Data
mining: Practical machine learning tools and techniques with Java" (which covers mostly
machine learning material) was originally to be named just "Practical machine learning", and the
term "data mining" was only added for marketing reasons.[ Often the more general terms "(large
scale) data analysis", or "analytics" – or when referring to actual methods, artificial intelligence
and machine learning – are more appropriate.
The actual data mining task is the automatic or semi-automatic analysis of large quantities of
data to extract previously unknown interesting patterns such as groups of data records (cluster
analysis), unusual records (anomaly detection) and dependencies (association rule mining). This
usually involves using database techniques such as spatial indices. These patterns can then be
seen as a kind of summary of the input data, and may be used in further analysis or, for example,
in machine learning and predictive analytics. For example, the data mining step might identify
multiple groups in the data, which can then be used to obtain more accurate prediction results by
a decision support system. Neither the data collection, data preparation, nor result interpretation
and reporting are part of the data mining step, but do belong to the overall KDD process as
additional steps.
The related terms data dredging, data fishing, and data snooping refer to the use of data mining
methods to sample parts of a larger population data set that are (or may be) too small for reliable
statistical inferences to be made about the validity of any patterns discovered. These methods
can, however, be used in creating new hypotheses to test against the larger data populations.
Data mining uses information from past data to analyze the outcome of a particular problem or
situation that may arise. Data mining works to analyze data stored in data warehouses that are
used to store that data that is being analyzed. That particular data may come from all parts of
business, from the production to the management. Managers also use data mining to decide upon
marketing strategies for their product. They can use data to compare and contrast among
competitors. Data mining interprets its data into real time analysis that can be used to increase
sales, promote new product, or delete product that is not value-added to the company.
Centralized and Distributed Processing.

Centralized Data Processing (CDP) uses Centralized computers, processing, data, control,
support. The advantages are Economy for equipment and personnel, Lack of duplication, Ease in
enforcing standards, security. In Distributed Data Processing (DDP)Computers are dispersed
throughout organization. Which allows greater flexibility in structure, More redundancy and
More autonomy.
Centralized data processing is a Computer data processing architecture where data processing
support is provided by one or a cluster of computers, generally a large. dedicated computers,
located in a central data processing facility. In a centralized architecture, each person is provided
with a local terminal that is connected by a communications facility to the central data
processing facility.
A fully centralized data processing has following features:

1. Centralized computers
2. Centralized processing
3. Centralized Data
4. Centralized Control
5. Centralized Staff Support
A Distributed data processing facility is one in which computers, usually smaller computers, are
dispersed throughout the organization. The objective of such disperse is to process information in
a way that is most effective based on operational.
Therefore, DDP (Distributed Data Processing) features:

1. A collection of terminals link together by some kind of communication link and has no main
central computer or not fully (minimal) depend on central computer.
2. Processing of information is happening on each terminal and send results to a main server for
store and retrieval purposes.
3. Data may duplicate as data may store in locally or in remote server.
4. Local computer operator can control the machine in his premises.
5. Separate staff will maintain central computer (if there any) where other terminals may control
by one or few other members.
References:
1. Laudon and Laudon, (2010), Management Information System, 11th edition, Pearson
Education.
2. Sadagopan, S., (2009), Management Information Systems, Prentice Hall of India.
Reference Books
1. LM Prasad, (2008), Management Information System, Sultan Chand.
2. Arora, Ashok and Akshaya Bhatia, (2009), Information Systems for Managers, Excel Books,
New Delhi.
3. McLeod, Raymond, (2008), Management Information System, Pearson Education.
4. Goyal, D.P., (2008), Management Information Systems-Managerial Perspectives, 2nd Edition,
Macmillan, New Delhi.
www.answers.yahoo.com
www.wikipedia.org
www.searchdatacenter.techtarget.com
www.gurukpo.com
www.searchdatacenter.techtarget.com
www.techopedia.com
www.Mis-architecture.co.uk
www.aaschool.ac.uk

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Subject: Management Information System

Introduction: Definition, Purpose, Objectives and Role of MIS in Business Organization

System Development: Concept of System, Types of Systems – Open, Closed,

Information Concepts: Data and Information – Meaning and importance, Relevance of

Information Technology: Recent Developments in the Field of Information Technology:

Basic terms used in MIS

Role of MIS in Business Organization with particular reference to Management Levels

MIS Growth and Development

Following are the contents of MIS planning:

What are the stages of Development of MIS?

Different approaches to Development of MIS

Location of MIS in the Organization – Concept and Design

Essential Requirement of an Effective MIS:

Types of information system

The discipline of MIS can be categorized in the following 6 classes:

Transaction Processing System

Previously, TPS was known as Management Information System. Prior to computers,

Decision Support System (DSS)

A decision support system (DSS) is an information system application that assists

Executive Support System (ESS)

In the first category, the following is a list of activities.

Recent development in MIS:-

Electronic commerce- Electronic commerce, commonly known as e-commerce, is a type of

E-commerce can be divided into:

• E-tailing or "virtual storefronts" on websites with online catalogs, sometimes gathered

Products and services available

Mobile Money Transfer

Mobile vouchers, coupons and loyalty cards

Content purchase and delivery

In-application mobile phone payments

Mobile marketing and advertising

Organization: Organization implies structure and order. It is the arrangement of components

Types of Systems – Open, Closed, Deterministic, Probabilistic, etc:-

Relevance of Choice of System in MIS:-

Outsourcing Custom-Designed Applications

Integration of Organization Systems and Information Systems:-

MIS for a Business Organization:

The three basic approaches applied to software development methodology frameworks.

MIS Applications in Business.

Importance of information system:

Relevance of Information in Decision Making:-

Characteristic of Business Decision Making:

Programmed and Non-Programmed Decision:

Sources and Types of Information:-

Secondary source is a document or recording that relates or discusses information originally

A business has several information systems:

Assessing Information Needs of the Organization.

MIS for a Business Organization:

1A: Use of Technology in Previous Population Censuses and Surveys

1B: Approach to Census 2000

2B: Internet Submission

2C: Mail-Out/Mail-In-Or-Transmit Back Electronically

3A : Imaging and Intelligent Character Recognition

3B: Automatic Coding

3C: Computer-Assisted Coding

3D: Data Warehousing and Data Mining

Multimedia Approach to Information Processing

A laser show is a live multimedia performance.

History of the term

Several examples are as follows: