Management Information Systems 1

Management Information Systems (MIS) Data processing systems evolved from personnel office function into human resource management information systems. A human resource management information system is capable of making more effective use of available personnel skills, and providing other information needed at all three levels of management, operational, tactical, and strategic. MIS is a computer-based system that optimizes the collection, transfer, and presentation of information throughout an organization, through an integrated structure of databases and information flow. MIS functions includes the followings: - DP support - Integrated database - Timely but structured information - Flexible and adaptable - Security The MIS has been also referred to as: a method, a function, an approach, a process, an organization, a system, and a subsystem. The most easily distinguished characteristic of MIS is the presence of an integrated database, providing timely access to structured information for different level of decisionmakers. On the other hand, DP systems produce scheduled reports that assist only on the operational level. Security is also another important characteristic that is not often part of a DP system. Basic distinctions of MIS: - Includes an integrated database - Provides information flow among functional areas - Fulfills the informational needs of all levels of management (whereas DP focuses on operational- level) - Provides an online inquiry capability The MIS versus the DP System The basic distinctions between an MIS and a DP system are summarized as follows: - The integrated database of an MIS enables greater flexibility in meeting the information needs of management. - An MIS integrates the information flow between functional areas (accounting, marketing, and so on), whereas DP systems tend to support a single functional area. - An MIS caters to the information needs of all levels of management, whereas DP systems focus on operational level support. - Management’s information needs are supported on a timelier basis with an MIS, which has online inquiry capability for the immediate generation of reports, than they are with a DP system, which usually produces only scheduled reports.

Characteristics of Management Information Systems; - MIS supports the data processing functions of transaction handling and record-keeping. - MIS uses an integrated database and supports a variety of functional areas. - MIS provides operational, tactical, and strategic level managers with easy access to timely information, but mostly structured information. - MIS is somewhat flexible and can be adapted to meet the changing information needs of the organization. - MIS can boost system security by limiting access to authorized personnel. A successful MIS must include simple report generating facilities. The more sophisticated MISs use natural language report generation programming for custom reports and point and click screens for standard reports. Middle managers familiar with analytical software (spreadsheet, statistical software) are often able to create their own custom reports as needed and are in high demand.

Decision Support Systems (DSS) The DSS incorporates all the characteristics of the MIS, and adds data management capabilities, such as modeling and statistical analysis. In addition, the DSS provides sophisticated decision-making tools like forecasting and graphics. It is usually difficult to make a clear distinction between MIS and DSS. The DSS objective is more to support and provide information for the decision makers. Decision support systems (DSS) are interactive information systems that rely on an integrated set of user-friendly decision support tools (both hardware and software) to produce and present information to support management in the decision making process.

The DSS versus the MIS Management information systems are best at supporting decisions that involve structured problems. Structured problems are better suited for management information systems. In contrast to the MIS, decision support systems are designed to support decision-making processes involving semi-structured and unstructured problems. Structured problems are those problems that can be evaluated or solved using available quantitative information. Unstructured problems are those problems the information required for their evaluation is either not available or not quantitative. In the semi-structured problems are those problems that the information required for their solution is partially available. Another distinction we can make between an MIS and a DSS is that an MIS is designed and created to support a set of applications. A DSS is a set of decision support tools that can be adapted to any decision environment. DSS Definition There are as many definitions for DSS as there are people who give thought to its scope and meaning. - Software tools to help with decision support. - A part of management information system that provides information to decision makers and integrates their decisions into the broader information flow.

Characteristics of Decision Support Systems The following are characteristics of a DSS:

- DSS helps the decision maker in the decision-making process. - DSS is designed to address semi-structured and unstructured problems. - DSS supports decision makers at all levels, but it is most effective at the tactical and strategic levels. - DSS is an interactive, user-friendly system that can be used by the decision maker with little or no assistance from a computer professional. - DSS makes general-purpose models, simulation capabilities, and other analytical tools available to the decision maker. - DSS can be readily adapted to meet the information requirements of any decision environment. - DSS can interact with the corporate database. - DSS is not executed in accordance with a pre-established production schedule.

DSS tools include the following: 1- Applications development; (throwaway systems) 2- Data management; The most popular DSS data management tool is data warehousing. The data warehouse is a relational database created specifically to help managers get the information they need to make informed decisions. Data mining is an analytical technique that analysis large data (data warehouse) to identify trends or elements involving user problem. 3- Modeling; Simulation models 4- Statistical analysis; Risk analysis and trend analysis 5- Planning and forecasting, 6- Inquiry; query languages 7- Graphics 8- Consolidations data( from internal database, data warehouse, etc), models, and images and graphics into a single report. 9- Application-specific DSS capabilities (such as: Financial analysis and quality control)

Executive Information Systems(EIS, ESS) The executive information system or EIS, offers the same decision support tools as the DSS, but each tool is designed specifically to support decision making at the executive levels of management, primarily the tactical and strategic levels.

Definitions: Decision support system (DSS) An interactive information system that relies on an integrated set of userfriendly hardware and software tools to produce and present information targeted to support management in the decision-making process.

Data warehouse (Data warehousing) A relational database created from existing operational files and databases specifically to help managers get the information they need to make informed decisions. Data mining An analytical technique that involves the analysis of large databases, such as data warehouses, to identify possible trends and problems. Executive information system (EIS) A system designed specifically to support decision specifically to support decision making at the executive levels of management, primarily the tactical and strategic levels.

Expert Systems Research in artificial intelligence (AI) has added a new dimension to computing; the ability to reason and possess some basic sensory perceptions. Components of an expert system 1- Knowledge acquisition facility (helps in creation of knowledge base; knowledge engineer and domain expert cooperate) 2- Knowledge base (problems to be solved; possible solutions; how to progress toward a solution) 3- Inference engine (nucleus of expert system; applies facts and rules to a problem; leads user to a solution) 4- User interface (interaction between system and user; explanation of rationale for solution) Definition of Expert System 1- Expert system is a computer-based system that uses factual and heuristic knowledge, bases its judgments and solutions on its knowledge (Knowledge-based system), and simulates human thought-processes 2Expert system is a computer-based system that helps managers resolve problems or make better decisions. 3- Expert system is an interactive knowledge-based system that responds to questions, asks for clarification, makes recommendations, and generally helps users make complex decisions. Knowledge-based system A computer-based system, often associated with artificial intelligence, that helps users make decisions by enabling them to interact with a knowledge base. Expert systems, also referred to as cased-base reasoning systems, are an interactive computer-based system that responds to questions, asks for clarification, makes recommendations, and generally helps the user in the decision making process. Working with an expert system is much like working directly with a human expert to solve a problem because the system mirrors the human thought process. An expert system applies IF-THEN rules to solve a particular problem. Expert systems rely on factual knowledge and heuristic knowledge such as intuition, judgment, and inferences. Technically speaking, an expert system is the highest form of a knowledge-based system. The less sophisticated knowledge-based systems are called assistant systems. An assistant system helps users make relatively straight forward decisions and are usually implemented to reduce the possibility that the end user will make an error in judgment rather than to resolve a particular problem. To varying degrees, expert systems simulate the human thought process, such as reason, draw inferences, and make judgments.

Components of an expert system 1-Knowledge acquisition facility (helps in creation of knowledge base; knowledge engineer and domain expert cooperate) 2- Knowledge base (problems to be solved; possible solutions; how to progress toward a solution)

3- Inference engine (nucleus of expert system; applies facts and rules to a problem; leads user to a solution) 4- User interface (interaction between system and user; explanation of rationale for solution) Examples of Expert System: Technical Support, auto part shops, training tools, and etc.. The knowledge base contains: 1- Means of identifying the problem(s) to be solved 2- Possible solutions to the problem(s) 3- How to progress from problem to solution (IF-CONDITION-THENs) All of this knowledge is integrated in an interactive online expert system that can help users solve most problems in a matter of minutes.

Software Agents Intelligent agents are a type of artificial intelligence software that have the authority to act on our behalf, just as a human agent does. The agent reacts to meet the demands of a specified goal in several different ways. - The agent may remain in continuous motion working toward an ongoing goal. - The agent performs an action when a specified event occurs. - The agent performs actions needed to accomplish a onetime goal. - The software agents are now popular on the Internet or intranets; sorting through email, scan online newspapers and magazines for articles of users interests, automatically sending gifts & flowers, and perform travel and ticket reservation. Intelligent agent is an artificial intelligence-based software that has the authority to act on a person or thing 's behalf. ----------------------------------------------------------------------------------------

Information System Development There are many methods applied to development information system. Some are traditional and some are still evolving. Generally, there are four stages of the system life cycle (birth, development, production, and death). There are some basic (common) system development techniques and certain concepts associated with these techniques. Most of the techniques include certain phases, prototyping, tools, and general activities that take place during system analysis and design. Regardless of how a system is developed, there are specific approaches to replace the old system with the new system One of the technological developments in the process of System Development is the capabilities of CASE (Computer-Aided Software Engineering) tools. Another contributing element of system development is advancement in programming techniques and programming languages.

The System Life Cycle

In-house development of software and information systems was standard procedure in the 1970s and 1980s, primarily because the software industry had not evolved to meet the needs of most organizations. In-house system software refers to software that is developed by computer specialist employed by an organization (non-software manufacturer). This types of software were usually expensive and difficult to maintain. Many of these types of application software have gradually been replaced by proprietary software. The best-selling proprietary software are those programs that can be adapted for use by many different types of organizations, or at least by individual organizations within a particular field.

System Life Cycles; Every system goes through stages: - Birth stage the system is conceived and ideas are developed (Planning). - Development stage the idea for the information system becomes a reality. The information system is analyzed and designed. The system is created and implemented. - Production stage, the longest stage, the system is operational and is maintained. - Eventually the system is unable to meet the organization's changing information needs or new technology (faster & less costly) evolves and it must be replaced.

System Development Life Cycle SDLC The analogy for the phases of system development puts the process of information system development into perspective. 1- System Planning 2- Systems analysis (analyze old system to develop the new one) 3- Systems design (making the pieces) 4- Programming (Coding, debugging, testing , and documenting) 5- Conversion and implementation (making the pieces work together) 6- Maintenance or Post-implementation review (making the finished product earn its keep) These Stages of the Life Cycle applies to information systems regardless whether it is built or rented. Other activities regarding system development are: - Decide whether use employees to build the system and/or outside consultants to create a customized information system that meets unique needs. - Decide whether to purchase and install a proprietary software package or use the employees to build it. These options offer managers the classic "make-versus-buy" decision. The best application portfolios contain an optimal mix of these. Purchasing Proprietary Software; Virtually all installed system software (operating system software) and PC productivity software (spreadsheet, word processing, and so on) is proprietary.

Using an Application Service Provider; Companies pay the third-party ASP to use their applications software, server, computer, and storage capabilities. By "renting" a system from an ASP, a company can have information systems without having to maintain hardware, software, or an in-house staff. In-house Development of Custom Information Systems; Most organizations maintain personnel with the capability to develop custom information systems. This true particularly for large scale computers (mainframe, & supercomputer) environment, and organizations who need special purpose (unique, or highly secure) software. Definitions: Proprietary software package; Vendor-developed software that is marketed to the public.

Systems Development Techniques and Concepts System Develoment Plan typically includes; objectives, operation, scope, present system problems, justification, and long-range objectives. The systems development process is complex, expensive, and difficult. Its difficulties are basically relates to removing errors from human thinking and communications. There are several fundamental system development concepts (tools), including structured system design, data flow diagrams, entity relationship diagrams, and flowcharting.

Structured System Design It is easier to address the design of a complex information system in small, manageable modules (parts) than as one big task. Information systems are designed using the principles of structured system design. The structured approach to system design encourages the top-down design technique. This simply means breaking the system to subsystems, and the subsystems to sub-subsystem. The structure chart can be conceptualized as a hierarchy of modules. Structured chart; Structured Chart uses two symbols for structured design; rectangular to represent a process (loop, or repeat) and line to represent relationships between modules (Main module, subordinate module, subroutine). Data Flow Diagrams; Data flow diagrams enable systems analysts to design and document systems using the structured approach to system development. Four symbols are needed for data flow diagrams: - Entity symbol (Source & sink); The entity symbol, a square is the source or destination of data or information flow. It can be a person, a group of people, a department, or even a place. - Process symbol (transform); Each process symbol, a rectangle with rounded corners, contains a description of a function to be performed (in form of Structured English). Process symbols also can be depicted as circles. Typical processes include enter data, calculate, store, create, produce, and verify. Process-symbol identification numbers are assigned in a hierarchical levels (1, 1.1 1.2 1.3,,, 1.2.1.3.) - Flow line (Data Flow); The flow lines indicate the flow and direction of data or information.(file, record , field name) - Data storage; These symbols, open-ended rectangles, identify storage locations for data, which could be a file drawer, a shelf, a database or file on magnetic disk, and so on. The functional components of an (organization) MIS are at the top-level breakdown units of an organization (Finance and Accounting, Personnel, Operations, and Marketing). The breakdown of the top level (functional unit) is presented in a Data Flow Diagram format called Context Diagram. Context diagram uses the same symbols except for the Data Store.

Entity Relationship Diagrams; Another similar business modeling tool is the entity relationship diagram. The entity relationship diagram involves identifying the entities (file, record, and data item). The focus of the entity relationship diagram is the attributes (a description) of the entities and its relationship to other entities. The focus of the data flow diagram is information flow, which may also define the relationship between both entities and processes. Flowcharting; Flowchart a method of graphic representation flow of the data and processes. It is interconnection of specialized symbols with flow lines. The combination of symbols and flow lines portrays the logic of the program or system. Flowcharting does not lend itself to structured techniques, but it is still very popular in business and programming logics. Structured Programming; In structured programming, each program has a driver module, sometimes called the main program, which causes other program modules to be executed, as they are needed. The driver module in a payroll program is a loop that "calls" each of the subordinate modules, or subroutines, as needed for the processing of each employee. There is no one best analytical or design technique. Design techniques are just tools. Definitions: Structured system design; a systems design technique that encourages top-down design. Structured chart; is a chart that graphically illustrates the conceptualization of an information system as a hierarchy of modules. Data flow diagram; is a design technique that permits documentation of a system or pro-gram at several levels of generality. Entity relationship diagram; is a business-modeling tool used for defining the information needs of a business, including the attributes of the entities and the relationship between them. Flowchart; is a diagram that illustrates data, information, and workflow via specialized symbols which, when connected by flow lines, portray the logic of a system or program. Driver module; is the program module that calls other subordinate program modules to be executed as they are needed (also called a main program). Main program; is the program module that calls other subordinate program modules to be executed as they are needed (also called a driver module). Loop (repeat, do-while ,do-until) is a sequence of program instructions executed repeatedly until a particular condition is met. Subroutine; is a group or sequence of instructions for a specific programming task that is called by another program.

Computer-Aided Software Engineering:(CASE) CASE tools assist the computer professional in speeding up the systems design process. They also assist the user who wants to be more actively involved in the systems design process. CASE (Computer Aided Software Engineering) is a software engineering tool that takes full advantage of the technology to coordinate and automate the process of applications development. The general family of software

development productivity tools falls under the umbrella of computer-aided software engineering, or CASE, tools. The term software engineering is used to emphasize an approach to software development that combines automation and the engineering discipline. CASE tools provide automated support throughout the entire system life cycle. CASE tool kit includes the following: - Design tools - Information repository tools (dictionar of data and processes) - Program development tools Before the introduction of CASE technologies, the systems analyst and programmer drew flowcharting and data flow diagram, entity relationship, and etc. They use flowcharting templates, lettering templates, rulers, scissors, glue, pencils, pens, and plenty of erasers, and voluminous paper etc. Fundamental CASE design tool features - Depict system graphically (DFD) - Select and position symbols - Depict system at several levels of generality - Change size/color of symbols - Add notations Automated design tools enable an analyst or programmer to select and position symbols, such as the data flow diagram process and entity symbols, and to connect these symbols with flow lines. CASE design tools also help designers prepare the user interface and generate screen and report layouts. The user interface capability enables the project team to design and create the system's user interface. The screen generator capability provides systems analysts with the capability of generating a mockup, or layout, of a screen while in direct consultation with the user. The layout is a detailed output and/or input specification that graphically illustrate exactly where information should be placed, or entered, on a screen or on a printer output. The report generator permits the calculation of summary totals by criteria and overall, the creation of graphs and charts, and the editing of output. Information Repository Tools is a central computer based storage facility for all design information. The information repository is the "database" for the system development project. Information repository, dictionary, and encyclopedia are terms that are used interchangeably in practice. Program Development Tools focus on the programming aspect of the system development effort. The application generators make the biggest contribution to productivity. Definitions: Computer-aided software engineering (CASE) is an approach to software development that combines automation and the rigors of the engineering discipline.

Software engineering (System Analysis) is a term coined to emphasize an approach to software development that embodies the rigors of the engineering discipline. Software engineer (System Analyst) is a person who develops software products to bridge the gap between design and executable program code. Layout is a reference to the positioning of the visual elements on a display or page. Information repository is a central computer based database for all system design information. Application generator is a system development tool used to actually generate the system programming code based on design specifications.

Prototyping: Creating a Model of the Target System The objectives of prototyping are to analyze the current situation, to identify information needs, and to develop a scaled-down model of the proposed system. In prototyping, the users are actively involved in all stages of the development process. The CASE tool kit enables the system development project team to work with users to develop a prototype system. This approach to applications development is called prototyping The three objectives of prototyping are: - Analyze the current situation - Identify information needs - Develop a model of the proposed system, often called the target system A prototype system can be anything from a nonfunctional demonstration of the input/output of a proposed information system to a full-scale operational system. Nonfunctional Prototype, also called rapid prototyping, focus on user interface and I/O Partially functional prototype, Focus on most-used features and enhanced to full functionality Fully functional prototype, Focus is functionality for user experimentation and results in superior system specifications

Rapid Application Development (RAD) results in information systems of varying degrees of sophistication. RAD has emerged to be a generic reference to using software tools (CASE) to design, development, and implement information systems. At the low end, there's the "quick and dirty" RAD prototype, which gives users an opportunity to experiment with the look and feel of a system. This resulting system is just for show and does not permit interaction with a database.

The Prototyping Process The composition of the project team is essentially the same for both approaches. The team consists of systems analysts, programmers, perhaps the database administrator, users who will eventually use the system, and perhaps one or more managers.

Phases of Portotyping;. - Phase I-Define System Specifications - Phase II-Create Prototype System

- Phase III-Refine Prototype System - Phase IV-Develop Operational System Phase I-Define System Specifications a- Analysis of the current system, define specification, prepare user interfaces. System Analysis: Understanding the System, and produces the following results - Existing system review. a team-work - System objectives. . - Design constraints. - Requirements definition. b- System Design: System Analyst compiles the system design documentation includes the following: - A graphic illustration that depicts the fundamental operation of the target system - A written explanation of the graphic illustration - Descriptions of the outputs to be produced by the system, including display screens and hardcopy The system design documentation depicts the relationship between all processing activities and the input/output associated with them. Phase II-Create Prototype System, To create a prototype system, project team members; a- Design logic for the system and define the I/O interfaces(with user). b- write computer program (create of software) Phase III-Refine Prototype System, In this phase, users actually sit down at a terminal or PC and evaluate the prototype system. Phase IV-Develop Operational System, If the system is other than a fully functional scaleable prototype, the system must be enhanced or another system developed. Fully functional scaleable prototypes are working models of the target information system that can be scaled to meet the information processing needs of the organization. Definitions: Prototyping; is an approach to systems development that results in a prototype system. Scalable system is a system whose design permits expansion to handle any size database or any number of users.

System specifications (specs); is details of an information system that include everything from the functionality of the system to the format of the system's output screens and reports. Functional specifications; is the specifications that describe the logic of an information system from the user's perspective. Rapid application development (RAD) Using sophisticated development tools to create a prototype or a functional information system.

System Conversion and Implementation Once an information system has been developed and approved by those who will use it, it must be implemented within the organization. Systems and Acceptance &Testing The first step of the system conversion and implementation process is systems testing. System testing encompasses; the hard-ware, the software, the end users, the procedures, the data, and the interfaces between the system and other systems. The unit (program) testing is usually performed in phase II, but System (overall) testing is done before implementation. System testing - Follows unit testing - Project team tests with test data - Project team tests with live data - User managers test with live data

Approaches to System Conversion Four common approaches are parallel conversion, direct conversion, phased conversion, and pilot conversion. - In parallel conversion, the existing system and the new system operate in parallel until the new system is working properly. The old system is then discontinued. - The direct-conversion approach requires a greater amount of testing and more planning than parallel conversion. At a point in time, the existing system is replaced with the new system. - In phased conversion, an information system is implemented one module at a time. - In pilot conversion, the system is implemented in one of several functionally similar locations. Definitions Unit testing That phase of testing in which the programs that make up an information sys-tem are tested individually. Systems testing A phase of testing where all programs in a system are tested together. System maintenance The process of modifying an information system to meet changing needs.

Programming:The instructions in programs are logically sequenced and assembled through the act of programming. Programmers, people who write programs, use a variety of programming languages, such as C++, Visual BASIC, and Java, to communicate instructions to the computer. Programming language Elements (instruction types) - Input/output instructions - Computation instructions - Control instructions (Decision and/or Branch) - Data transfer and assignment instructions - Format instructions

Programming Languages Historically, programming is a highly specialized profession, requiring years of study to master. Writing program is like solving a problem, which requires programmer to use his power of logic to develop a procedure for solving the problem. Each programming language has an instruction set with a variety of words, signs, symbols and syntax. Types of Programming Languages Machine language is the computer's native language. All programs written by programmers ultimately must be translated into machine language before they can be executed. Machine language - First generation - Unique to a particular computer - Low-level - Most basic level of computer operation Assembler language - Second generation - Unique to a particular computer - Low-level - Mnemonics represent instructions Procedure-Oriented Languages The early languages (1955-80) were procedure-oriented languages, which require programmers to solve programming problems by coding, or writing, the instructions in the sequence in which they must be executed to solve the problem. (COBOL, FORTRAN, and etc.) Object-Oriented Languages and OOP In object-oriented languages, the emphasis is on the object of the action. The structure of object-oriented programming (OOP) makes programs easier to design and understand.

The Fourth Generation: 4GLs Programming in user-friendly fourth-generation languages (4GLs) is done by computer specialists and also a growing number of end users. Fourth-generation languages use highlevel English-like instructions to retrieve and format data for inquiries and reporting.(query languages) Fourth-generation language characteristics a- English-like instructions b- Programmer specifies only what to do Fourth-generation language features - Limited mathematical capabilities - Automatic report formatting - Sequencing - Record selection by criteria Visual Languages: Icons for Words Visual programming takes object-oriented programming to the next level, replacing text-based instructions with symbolic icons, each of which represents an object or a common programming function. Microsoft's Visual BASIC is one of the most popular visual languages. Definitions: Programming language; a language programmers use to communicate instructions to a computer. Procedure-oriented language; a high-level language whose general-purpose instruction set can be used to produce a sequence of instructions to model scientific and business procedures. Object-oriented language is a programming language structured to enable the interaction between userdefined concepts that contain data and operations to be performed on the data. Object-oriented programming (OOP) is a form of software development in which pro-grams are built with entities called objects, which model any physical or conceptual item. Objects are linked together in a top-down hierarchy. Fourth-generation language (4GL) a programming language that uses high-level English-like instructions to retrieve and format data for inquiries and reporting. Visual programming is an approach to program development that relies more on visual association with tools and menus than with syntax-based instructions. Visual Basic is visual programming language. ----------------------------------------------------------------------------------------