Contents

Management Information ......................................................................................................................................... 3

System ........................................................................................................................................................................ 4
Management Information System ............................................................................................................................. 4
Types: ................................................................................................................................................................... 4
Physical Structure of Management Information System ........................................................................................... 4
Hardware ............................................................................................................................................................... 5
Software ................................................................................................................................................................. 5
Database ................................................................................................................................................................ 5
Procedures ............................................................................................................................................................. 5
Personnel ............................................................................................................................................................... 5
Information System for Decision Making: ................................................................................................................. 6
The concept of MIS: ................................................................................................................................................... 6
Managemen ........................................................................................................................................................... 6
Decision making: ........................................................................................................................................................ 6
.............................................................................................................................................................. 6
Methods of Decision Making ..................................................................................................................................... 7
Elements of decision making ..................................................................................................................................... 7
.......................................................................................................................................................... 8
The role of system analyst: ........................................................................................................................................ 8
Data base Management system: ............................................................................................................................... 9
A database management system (DBMS).............................................................................................................. 9
Data definition Language: ........................................................................................................................................ 10
Data Manipulation Language: .............................................................................................................................. 10
A data-manipulation language (DML) .................................................................................................................. 11
Data Dictionary: ....................................................................................................................................................... 13
Types of Databases: ................................................................................................................................................. 14
Hierarchical and Network DBMS: ............................................................................................................................ 17
Computers and Information Processing: ..................................................................................................... 18
There are two (2) main types of software .............................................................................................. 110

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 Kinds of Software ...................................................................................................................................... 111

Some System Software is built into the computer. ............................................................................. 112

Operating Systems ..................................................................................................................................... 112

User Interfaces ............................................................................................................................................ 113

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 MANAGEMENT INFORMATION SYSTEMS
Definition of Management Information System – Structure of MIS. Information
system for decision making – The role of system analyst – Data base Management
system. Computers and Information Processing – Classification of computer:
Mainframes – Mini Computers – Workstations.

Definition of Management Information System:

A management information system (MIS) is a system that provides information needed

to manage organizations effectively. Management information systems are regarded to
be a subset of the overall internal controls procedures in a business, which cover the
application of people, documents, technologies, and procedures used by management
accountants to solve business problems such as costing a product, service or a business-
wide strategy. Management information systems are distinct from regular information
systems in that they are used to analyze other information systems applied in
operational activities in the organization. Academically, the term is commonly used to
refer to the group of information management methods tied to the automation or
support of human decision making, e.g. Decision Support Systems, Expert systems, and
Executive information systems.

One of the most important functions of management is decision making. Sound

decision making helps attain organizational goals. Effective decision making calls for
timely, complete and relevant information. A management information system (MIS) is
a computerized system that is designed to provide this information.

Management Information
Management information refers to information that is timely, accurate and relevant in
relation to a particular situation. Management information helps mangers decide what
to do in a particular situation. For example, the actual age of the accounts receivable of a
company may be 45 days whereas company policy is to keep the age to a maximum of
30 days. This information calls for action to reduce the age of the accounts receivable.

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System
A system is made up of interdependent components that form a whole. Each
component of the system serves a specific purpose but at the same time interacts and
links with other components to pursue a common goal. A business enterprise is an
example of a system. Each department (for example, human resources, finance) has its
own function and objectives but all are aligned toward the overall mission of the
organization.

Management Information System

An MIS can be defined as a combination of people, computers and procedures for
collecting and organizing information to facilitate decision making. In any organization
a reasonable amount of time and effort is devoted to data collection, documenting,
processing and communication. Every individual looks for information that is relevant
to her duties. Thus, information is people oriented and varies with the nature of
people's work in the organization.

Types:
There are four types of management information systems:
1. Transaction processing systems: These systems process a large volume of routine,
recurring transactions. Example: a bank's system for recording deposits and payments.
2. Operations information systems: These systems gather comprehensive data,
organize it and summarize it in a form that is useful for managers. Example: an
inventory management system.
3. Decision support systems: These systems help mangers with the necessary
information to make intelligent decisions. They have three fundamental components:
database of relevant information, decision making models and a user friendly interface.
4. Expert systems: Are meant to mimic humans in making decisions in a specific field.

Structure of MIS:

Physical Structure of Management Information System

A management information system (MIS) is an organized combination of people,
hardware, communication networks and data sources that collects, transforms and
distributes information in an organization. An MIS helps decision making by providing
timely, relevant and accurate information to managers. The physical components of an
MIS include hardware, software, database, personnel and procedures.

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Hardware
All physical components of a computer system compose the computer hardware.
Important components include the central processing unit, input/output devices,
storage units and communication devices. Communication can be over fiber-optic
cables or wireless networks.

Software
Software provides the interface between users and the information system. Software
can be divided into two generic types: system software and applications. The system
software comprises of the operating system, utility programs and special purpose
programs. Applications are developed to accomplish a specific task. For users of MIS it
is much more important to understand the software than the hardware. Software
maintenance can take 50 to 70 percent of all personnel activity in the MIS function.
When the organization moves to implement an advanced information system the
hardware and software environment becomes more complex.

Database
A database is a centrally controlled collection of organized data. Central control reduces
redundancy and duplication of data. Data is stored in an organized and structured way
to facilitate sharing and improve availability to those who need it. The database
improves efficiency of storage by elimination of redundant files and improves efficiency
of processing by providing all required data in a single file rather than separate files.
This also improves efficiency of information retrieval.

Procedures
Three types of procedures are required for an MIS to operate effectively: user
instructions, instructions for input preparation and operating instructions for MIS
personnel who maintain the MIS.

Personnel
The personnel in the MIS function include computer operators, programmers, systems
analysts and managers. Human resource requirements should be assessed by
considering both the present system needs and the future system growth. The quality of
MIS personnel is a key factor in its effectiveness. An MIS manager needs a combination
of both managerial and technical skills.

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Information System for Decision Making:

The concept of MIS:

Management: Management has been defined in a variety of ways, but for our
purposes it comprises the process or activities what managers do in the operation of
their organization: Plan, Organize, Initiate and Control operations.

Information:

Data are facts and figures that are not currently being used in a decision processes and
usually take the form of historical records that are recorded and filed without
immediate intent to retrieve for decision making.

Information consists of data that have been retrieved, processed or otherwise used for
information or inference purposes, argument, or as a basis for forecasting or decision
making.

System can be described simply as a set of elements joined together for a common
objective. A subsystem is part of a larger system with which we are concerned. All
systems are part of larger systems.

Decision making:

Decision making is the process of selecting the most desirable or optimum alternative to
solve a problem or achieve an objective. The quality and soundness of managerial
decisions is largely contingent upon the information available to the decision-maker.
Gorry and Scott Morton (1971) classified decision making on three levels of a
continuum:

decisions are future-oriented because of uncertainty. They are part of the

planning activity.

Tactical decision making combines planning activities with controlling. It is for short-
term activities and associated allocation of resources to them to achieve the objectives.

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 Technical decision making is a process of ensuring efficient and effective
implementation of specific tasks.

Methods of Decision Making

Type of Methods of decision making
Decision OLD NEW
Programmed Habit Management
Repetitive and Standard operating Information
Routine procedure System
Organization structure,
policy etc
Non- Judgment, Intuition, Systematic
Programmed Insight experience Approach to
Training and Learning problem solving
& Decision
making

MIS is a technique for making programmed decisions. If we include the computer and
management science as integral parts or tools of computer–based information systems,
the prospects for a revolution in programmed decision making are very real. Just as a
manufacturing process is becoming more and more automated so is the automation of
programmed decisions increasing to support this production and other information
needs throughout the organization.

Elements of decision making

The four components of the decision making process is (Burch and Strater, 1974):

Model A model is an abstract description of the decision problem. The model may be
quantitative or qualitative.

Criteria The criteria must state how goals or objectives of the decision problem can
be achieved. When there is a conflict between different criteria, a choice has to be made
through compromise.

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 . Constraints are limiting factors which define outer limits and have to be
respected while making a decision. For example, limited availability of funds is a
constraint with which most decision makers have to live.

Optimization Once the decision problem is fully described in a model, criteria for
decision making stipulated and constraints identified, the decision-maker can select the
best possible solution.

The role of system analyst:

System analysis and design work involves studying a problem area and constructing an

improved way of handling it. The systems work must be accomplished before the

computer can process an application. System analysis and design refers to the process

of examining a business situation with the intent of improving it through better

procedures and methods. But before this planning can be done, we must thoroughly

understand the old system and determine how computers can best be used to make its

operations more effective.

This is the job of the system analyst. System analysts do more than solve current

problems. They are frequently called upon to help handle the planned expansion of a

business. In the case of new business, the systems study is future –oriented, since no

system currently exists. Analyst’s asses as carefully as possible what the future needs of

the business will be and what changes should be considered to meet these needs. In this

instance and in most others, analysts may recommend alternative for improving the

situation. Usually more than one strategy is possible.

Once this decision is made, a plan is developed to implement the recommendation. The

plan includes all systems design features, such as new data capture needs, file

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 specification, operating procedures, and equipment and personnel needs. Each design

describes output to be produced by the systems, such as inventory report, sales

analysis, purchasing summaries and invoices. The systems analysts will actually decide

which output to use, and how to produce them.

Data base Management system:

A database management system (DBMS) is simply the software that permits an
organization to centralize data, manage them efficiently, and provide access to the
stored data by application program. The DBMS acts as an interface between application
programs and the physical data files. When the application program calls for a data
item such as gross pay, the DBMS finds this item in the database and presents it to the
application program. Using traditional data files the programmer would have to specify
the size and format of each data element used in the program and then tell the
computer where they were located. A DBMS eliminates most of the data definition
statements found in traditional programs.

The DBMS relieves the programmer or end user from the task of understanding where
and how the data are actually stored by separating the logical and physical views of the
data .The logical view presents data as they would be perceived by end users or
business specialists, whereas the physical view shows how data are actually organized
and structured on physical storage media. There is only one physical view of the data,
but there can be many able for different logical views presented for various application
programs. For example, an employee retirement benefits program might use a logical
view of the human resources database illustrated in Figure that requires only the
employee’s name, address, social security number, pension plan, and retirement
benefits data.

A database management system has three components:

1. A data definition language

2. A data manipulation language

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 3. A data dictionary

Data definition Language:

The DDL is the formal language programmers use to specify the content and structure
of the database. The DDL defines each data element as it appears in the database before
that data element is translated into the forms required by application programs.

We specify a database schema by a set of definitions expressed by a special language

called a data-definition language (DDL).For instance, the following statement in the
SQL language defines the account table:

Create table account

(account_number char (10),

balance integer)

Execution of the above DDL statement creates the account table. In addition, it
updates a special set of tables called the data dictionary or data directory.

A data dictionary contains metadata—that is, data about data. The schema of
table is an example of metadata. A database system consults the data dictionary before
reading or modifying actual data.

We specify the storage structure and access methods used by the database
system by a set of statements in a special type of DDL called a data storage and
definition language. These statements define the implementation details of the
database schemas, which are usually hidden from the users.

The data values stored in the database must satisfy certain consistency
constraints. For example, suppose the balance on an account should not fall below
$100. the DDL provides facilities to specify such constraints. The database systems
check these constraints every time the database is updated.

Data Manipulation Language:

Most DBMS have a specialized language called a data manipulation language that is
used in conjunction with some conventional application programming languages to
manipulate the data in the database. This language contains commands that permit end

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 users and programming specialists to extract data from the database to satisfy
information requests and develop applications. The most prominent data manipulation
language today is Structured Query Language, or SQL. End users and information
systems specialists can use SQL as an interactive query language to access data from
databases, and SQL commands can be embedded in application programs written in
conventional programming languages.

Data manipulation is

 The retrieval of information stored in the database

 The insertion of new information into the database
 The deletion of information from the database
 The modification of information stored in the database

A data-manipulation language (DML) is a language that enables users to access or

manipulate data as organized by the appropriate data model. There are basically two
types:

 Procedural DMLs require a user to specify what data are needed and how to get those
data.
 Declarative DMLs (also referred to as nonprocedural DMLs) require a user to specify
what data are needed without specifying how to get those data.

Declarative DMLs are usually easier to learn and use than are procedural DMLs.
However, since a user does not have to specify how to get the data, the database system
has to figure out an efficient means of accessing data. The DML component of the SQL
language is nonprocedural.

A query is a statement requesting the retrieval of information. The portion of a

DML that involves information retrieval is called a query language. Although
technically incorrect, it is common practice to use the terms query language and data
manipulation language synonymously.

This query in the SQL language finds the name of the customer whose customer-
id is 192-83-7465:

select customer. Customer_name

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 from customer

where customer. Customer-id = 192-83-7465

The query specifies that those rows from the table customer where the customer-id is
192-83-7465 must be retrieved, and the customer-name attribute of these rows must be
displayed. If the query were run on the table in Figure 1.3., the name Johnson would be
displayed.

Queries may involve information from more than one table. For instance, the
following query finds the balance of all accounts owned by the customer with
customer-id 192-83-7465.

select account. balance

from depositor, account

where depositor. Customer-id = 192-83-7465

The query specifies that those rows from the table customer where the customer-id is
192-83-7465 must be retrieved, and the customer-name attribute of these rows must be
displayed. If the query were run on the table in Figure 1.3., the name Johnson would be
displayed.

Queries may involve information from more than one table. For instance, the
following query finds the balance of all accounts owned by the customer with
customer-id 192-83-7465.

select account.balance

from depositor, account

where depositor.customer_id= 192-83-7465and

depositor. Account_number = account. Account_number

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 If the above query were run on the tables in Figure 1.3., the system would find that the
two accounts numbered A-101 and A-201 are owned by customer 192-83-7465 and
would print out the balances of the two accounts, namely 500 and 900.

The levels of abstraction apply not only to defining or structuring data, but also
to manipulating data. At the physical level, e must define algorithms that allow
efficient access to data. At higher levels of abstraction, we emphasize ease of use. The
goal is to allow humans to interact efficiently with me system.

Data Dictionary:
The third element of a DBMS is a data dictionary. This is an automated or manual file
that stores definitions of data elements and data characteristics such as usage, physical
representation, ownership (who in the organization is responsible for maintaining the
data), authorization and security. Many data dictionaries can produce lists and reports
of data use, groupings, program locations, and so on. A sample data dictionary report
that shows the size, format, meaning, and uses of a data element in a human resource
database.

A data element represents a field. In addition to listing the standard name (AMT-PAY-
BASE),the dictionary lists the names that reference this element in specific systems and
identifiers the individuals, business functions, programs, and reports that use this data
element.

By creating an inventory of data contained in the database, the data dictionary serves as
an important data management tool. For instance, business users could consult the
dictionary to find out exactly what pieces of data are maintained for the sales or
marketing function or even to determine all the information maintained by the entire
enterprise. The dictionary could supply business users with the name, format, and
specifications required to access data for reports.

Most data dictionaries are entirely passive; they simply report. More advanced types
are active; changes in the dictionary can be automatically used by related programs. For
instance, to change ZIP codes from five to nine digits, one could simply enter the
change in the dictionary without having to modify all application programs using ZIP
codes.

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 In an ideal database environment, the data in the database are defined only once and
used for all applications whose data reside in the database, thereby eliminating data
redundancy and inconsistency. Application programs, which are written using a
combination of the data manipulation language of the DBMS and a conventional
programming language, request data elements from the database .Data elements called
for by the application programs are found and delivered by the DBMS. The
programmer does not have to specify in detail how or where the data are to be found.

A DBMS can reduce program-data dependence along with program development and
maintenance costs. Access and availability of information can be increased because
users and programmers can perform ad hoc queries of data in the database. The DBMS
allows the organization to centrally manage data, their use, and security. The Window
on Management illustrates some of these benefits.

Types of Databases:
Contemporary DBMS use different database models to keep track of entities, attributes,
and relationships. Each model has certain processing advantages and certain business
advantages.

1. Relational DBMS

2. Hierarchical Network DBMS

3. Object-Oriented Databases

1. Relational DBMS:

The most popular type of DBMS today for PCs as well as for larger computers and
mainframes is the relational DBMS. The relational data model represents all data in the
database as simple two-dimensional tables called relations. The tables appear similar to
flat files, but the information in more than one file can be easily extracted and
combined. Sometimes the Columns(Fields)
tables are referred to as files.

able(Relation)

Order Orde Delive Part- Part- Ord

RDER

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 - r- ry- Num Amo er-
Num Date Date ber unt Tota
ber l

1634 02/02/ 02/22/0 152 2 144.

03 3 50

1635 02/12/ 02/28/0 137 3 79.7

03 3 0

1636 02/13/ 03/01/0 145 1 24.3

03 3 0

Part- Part- Unit-Price Supplier-

Number Description Number

PART 137 Door latch 22.50 4058

145 Door handle 26.25 2038

150 Door seal 6.00 4058

152 Compressor 70.00 1125

Supplier- Supplier-Name Supplier-Address

SUPPLIER
Number

4058 CBM Inc. 44 Winslow,Gary,IN

44950

2038 Ace Inc. Rte.101,Essex,NJ

07763

1125 Bryant Corp. 51 Elm,Rochester,NY

11349

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 Figure shows a supplier table, a part table, and an order table. In each table the
rows are unique records and the columns are fields. Another term for a row or record in
a relation is a tuple. Often a user needs information from a number of relations to
produce a report. Here is the strength of the relational model: It can relate data in any
one file or table to data in another file or table as long as both tables share a common
data element.

To demonstrate, suppose we wanted to find in the relational database in Figure

the names and addresses of suppliers who could provide us with part number 137 or
part number 152.We would need information from two tables: the supplier table and
the part table. Note that these two files have a shared data element: Supplier_Number.

In a relational database, three basic operations as shown in Figure are used to

develop useful sets of data: select, project, and join. The select operation creates a subset
consisting of all records in the file that meet stated criteria. Select creates, in other
words, a subset of rows that meet certain criteria. In our example, we want to select
records (rows) from that part table where the part number equals 137 or 152.The join
operation combines relational tables to provide the user with more information than is
available in individual tables. In example we want to join the now-shortened part table
and the supplier table into a single new result table.

Leading mainframe relational database management systems include IBM’s DB2

and Oracle from the Oracle Corporation.DB2, Oracle and Microsoft SQL Server are used
as DBMS for midrange computers. Microsoft Access is a PC relational database
management system, and Oracle Lite is a DBMS for small handled computing devices.

 A Database made up of a set of tables.

 One major advantage of the relational model is that, if a database is designed efficiently.
 there should be no duplication of any data;
 Helping to maintain database integrity.
 This can also represent a huge saving in file size,
 Which is important when dealing with large volumes of data?
 Relational databases also have functions "built in" that help them to retrieve, sort
and edit the data in many different ways.

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Hierarchical and Network DBMS:
One can still find older systems that are based on a hierarchical or network data
model. The hierarchical DBMS presents data to users in a treelike structure. Within each
record, data elements are organized into pieces of records called segments. To the user,
each record looks like an organization chart with one top-level segment called the root.
An upper segment is connected logically to a lower segment in a parent-child
relationship. A parent segment can have more than one child, but a child can have only
one parent.

Figure shows a hierarchical structure that might be used for a human resources
database. The root segment is Employee, which contains basic employee information
such as name, address, and identification number. Immediately below it are three child
segments: compensation (containing salary and promotion data),Job
assignments(containing data about job positions and departments),and
Benefits(containing data about beneficiaries and benefit options).The Compensation
segment has two children below it: Performance Ratings(containing data about
employee job performance evaluations)and salary History(containing historical).

 In a Hierarchical database, the data elements are linked in the form of an inverted tree
structure with the root at the top, and the branches formed below.
 Below the single-root data elements are subordinate elements, each of which, in turn, has one
or more other elements.
 There is a parent-child relationship among the data elements of a hierarchical database
 A parent data element is one that has one or more subordinate data elements.
 The data elements that are below a parent data element are its children data elements.
 There may be many children elements under each parent element,
 But there can be only one parent element for any child element.
 Hierarchical database structure is used in several database applications because the data
elements of many applications can be neatly organized in the form of a hierarchical tree
structure.
 The main limitations of this structure is that it does not support flexible data access, because
the data elements can be accessed only by following the path down the tree structure.
 Hence, it is important to determine all types of relationships among the data elements and
map them properly in the form of a hierarchical tree structure when the database is first
designed.

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 Organization

Personnel Finance Technical

Department
Department Department

Managers Support Managers Support

staff staff staff staff

Object-Oriented Database:
 The OODB, which was first developed in the late 1980s,
 Group’s data items into complex items called objects.
 An object is defined by its characteristics, attributes and procedures.
 An object‘s characteristics can be text, sound, graphics, and video.
 Examples of attributes might be color, size, style, quantity, and price.
 A procedure refers to the processing or handling associated with an object.

Computers and Information Processing:

There are many similarities between human and computerized information processing.
These similarities are not a coincidence: at first computers were designed to imitate
human brains, and more recently cognitive psychologists have reversed the process and
have begun to use analogies from computer science to understand human thinking. The
following paragraphs describe some components of computerized information
processing that have analogies in human thinking.

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 Sensory register. Computers have to get their initial input from somewhere outside the
computer. This information may be registered at the keyboard, through a modem, or in
some other manner. It stays in this temporary register area for only a few nanoseconds
before it is moved into the computer's random access memory.

Working memory . The random access memory (RAM) corresponds to the human
working memory. This is the electronic area where the computer combines, integrates,
and generates output from data that are brought in through input devices or are
retrieved from read only memory (ROM) or from a storage area.

Long-term memory. Data can be stored on disk or programmed into ROM for relatively
permanent storage. This information is available to interact with the information in
RAM whenever the program requires it.

Forgetting. If a program is defective, it may not be possible to retrieve information.

Failure to retrieve information may occur because the program stored the data
incorrectly or because the program is not correctly designed to retrieve information that
was properly stored.

There are many other analogies that can be drawn between computers and the human
mind. For example, computer programmers have a saying "Garbage in, garbage out,"
which refers to the idea that if the computer is given faulty input it will generate faulty
output. Likewise, students who spend vast amounts of time on a poorly conceived
curriculum are not likely to arrive at productive educational outcomes.

Advantages of using computers for information processing include

Tasks can be completed faster because computers work at amazing speed.

Computers can process large amounts of data and generate error-free results,
provided that the data is entered correctly.

Computers can store enormous amounts of data for future use.

The high reliability of components inside modern computers enables

computers to produce consistent results.

Efficiency and productivity can be raised.

Running cost becomes lower in the long term.

Tasks can be completed with little human intervention (i.e., automatic).

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 Overall security can be raised due to less human intervention.

The management can observe new information and new trends more quickly.

Customer services can be improved due to more efficiently management and

operations.

Computers with communicating capability can share data and information

with other computers.

Disadvantages of using computers for information processing include

Initial investment cost can be high.

Extra cost is required to employ specialized staff to operate and design

the data processing system.

Some jobs may be lost due to computerization and thus lower the
morale of staff members.

Some staff has to be trained or retrained.

Face-to-face interactions among staff may be reduced.

Classification of computer:

Mainframe Systems:

A mainframe is the largest computer ,a powerhouse with massive memory and ex

tremely rapid processing power. It is used for very large commercial, scientific, or
military applications where a computer must handle massive amounts of data or many
complicated processes.

There are several organizations such as banks, insurance companies, hospitals,

railways, etc. Mainframe systems are computer systems, that need on-line processing of
large number of transactions, and require computer systems, which have massive data
storage and processing capabilities.

A typical configuration of a mainframe system consists of the following components:

Host, front-end, and back-end computers.

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 Console(s).

Storage devices.

User terminals.

Output devices.

In early days of computing Mainframes are big computers that can fill the entire room
or entire floor. Mainframes are mainly used by large organizations for critical
applications, such as consumer statistics, ERP, and financial transaction processing.

Large organizations use mainframes for highly critical applications such as bulk data
processing and ERP. Most of the mainframe computers have the capacities to host
multiple operating systems and operate as a number of virtual machines and can thus
substitute for several small servers.

A mainframe is the largest computer, a powerhouse with massive memory and

extremely rapid processing power. It is used for very large commercial, scientific, or
military applications where a computer must handle massive amounts of data or many
complicated processes.

Generally, however, mainframes can be classified as having 50 megabytes to over 1

gigabyte of RAM.

Minicomputers

• multi-user systems that can handle the computing needs of a smaller corporation or
organization.

• many people use them simultaneously by means of remote terminals or personal

computers.

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 • the mini computers came which offered user’s different applications, most famous of these the
word processors and spreadsheet which could be used by non technical users. Video game
system like Atari 2600 generated the interest of general populace in the computers.
• In terms of size and processing capacity, minicomputers lie in between mainframes and
microcomputers. Minicomputers are also called mid-range systems or workstations.
The term began to be popularly used in the 1960s to refer to relatively smaller third
generation computers. They took up the space that would be needed for a refrigerator
or two and used transistor and core memory technologies. The 12-bit PDP-8
minicomputer of the Digital Equipment Corporation was the first successful
minicomputer.
• Minicomputers are lie between the Mainframe computer and small Personal
Computers. Minicomputers also refereed to Mid-Range Servers. Minicomputers are
more powerful but still compatible version of a personal computer.
• A minicomputer is a middle-range computer, about the size of an office desk, often
used in universities, factories, or research laboratories.
• Minicomputers, 10 megabytes to over 1 gigabyte of RAM.

Workstations:

A workstation is a powerful Desktop computer designed for technical or scientific

applications. Intended primarily to be used by one person at a time, they are commonly
connected to a local area network and run multi-user operating systems. The term
workstation has also been used to refer to a PC connected to a network.

Workstation

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 The characteristic features of workstation are:

Processing Power: The Processing Power of a workstation is several times more than
that of an average power of a PC.

Storage capacity: Workstations have larger main memory (typically 0.5 GB to a few GB)
as compared to PCs, which have few tens or hundreds of MB of main memory. The
hard disk capacity of a workstation is also much more.

Display Facility: Most Workstations have a large screen (21 inch or more) monitor
capable of displaying high-resolution graphics.

Processor design: PCs normally use CPUs based on CISC technology, whereas
workstations use CPUs based on RISC technology. Popular RISC processors used in
workstations are ALPHA.

Operating System: Unlike PCs which can run any of the five major OSs – MS-DOS, MS
windows, Windows-NT.

Network interface card: Most Workstations have built-in hardware to connect to a

LAN.

A computer that has a more power resources like Processing Power, Memory and
additional capabilities to perform special task refers to as workstation. Workstations are
often optimized for displaying and manipulating complex data such as 3D mechanical
design, engineering simulation results such as for computational fluid dynamics,
animation and rendering of images, and mathematical plots.

A workstations also fits on a desktop but has more powerful mathematical and graphics
processing capability than a micro computer. Workstations are used for scientific,

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 engineering, and design work that requires powerful graphics or computational
capabilities. Workstations, 8 to 300 megabytes of RAM.

UNIT-II

Classification of computer: micro computers – super computers – Personal Computers –

Input Devices – Computer mouse – touch screen – MICR – OCR – pen based input – digital
scanners – voice input devices – sensors. Output devices – video display terminals (CRT) –
printers – plotters – voice out put devices – Secondary storage – magnetic disk storage –
magnetic tap storage – optical disk storage.

Classification of computer:

Micro computers:

A micro-computer is one that can be placed on a desktop or carried from room to room.
Microcomputers are used as personal machines as well as in business.

A computer with a microprocessor and its central processing unit is known as a

microcomputer. They do not occupy space as much as mainframes. When supplemented with
a keyboard and a mouse, microcomputers can be called as personal computers. A monitor, a
keyboard and other similar input output devices, computer memory in the form of RAM and a
power supply unit come packaged in a microcomputer. These computers can fit on desks or
tables and serve as the best choices for single-user tasks.

The term microcomputer is sometimes used synonymously with personal computer, since
micros were originally intended as primarily personal, single-user tools.

However, microcomputers have become so powerful that they are no longer confined to
personal information systems. Micros can operate either as individual stand-alone machines
with isolated processing power or as part of a departmental or company-wide network of
intelligent devices. They may be linked to other micros, telecommunications devices,
workstations, or larger computers.

In either case, microcomputers are starting to do some of the work formerly performed by
larger computers in business. Micros can also be linked to minicomputers and mainframes,
forming company-wide information networks that share hardware, software, and data
resources.

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Powerful microcomputers have sophisticated graphics and processing capabilities similar to
workstations Microcomputers still cannot perform as many tasks at once as mainframes, or
workstations. Microcomputers, 640 kilobytes to 64 megabytes of RAM.

Super computers:

A super computer is a highly sophisticated and powerful machine that is used for tasks
requiring extremely rapid and complex calculations with hundreds of thousands of variable
factors. Supercomputers have traditionally been used in scientific and military work, but they
are starting to be used in business as well. The problem with this classification scheme is that
the capacity of the machines changes so rapidly.

A computer which, among existing general-purpose computers at any given time, is

superlative, often in several senses: highest computation rate, largest memory, or highest cost.
Predominantly, the term refers to the fastest ‚number crunchers,‛ that is, machines designed
to perform numerical calculations at the highest speed that the latest electronic device
technology and the state of the art of computer architecture allow.

Supercomputers are the most powerful and expensive computers available at a given time. They are
primarily used for processing complex scientific applications, which require enormous processing
power.

Some of the supercomputing applications are as follows:

1. Aerospace industry.
2. Petroleum industry
3. Automobile industry.
4. Structural mechanics industry
5. Meteorological centers.

Super Computer

Petroleum industry uses super computers to analyze volumes of seismic data, which are gathered
during oil-seeking explorations, to identify areas where there is possibility of getting petroleum
products inside the earth.

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Personal Computer (PC):

A personal computer (PC) is a computer whose original sales price, size, and capabilities make
it useful for individuals, and intended to be operated directly by an end user, with no
intervening computer operator. People generally relate this term with Microsoft’s Windows
Operating system. Personal computers generally run on Windows, Mac or some version of
Linux operating system.

Personal computers come in a variety of forms such as desktops, laptops and personal digital
assistants. Let us look at each of these types of computers.

Desktops:

A desktop is intended to be used on a single location. The spare parts of a desktop computer
are readily available at relative lower costs. Power consumption is not as critical as that in
laptops. Desktops are widely popular for daily use in workplaces and households.

Desktop computer is just another version of Personal Computer intended for regular use from
a single use. A computer that can be fit on a desk can also be called as desktop. A desktop
computer comes in different form vertical tower cases to small form factor.

Laptops: Similar in operation to desktops, laptop computers are miniaturized and optimized
for mobile use. Laptops run on a single battery or an external adapter that charges the
computer batteries. They are enabled with an inbuilt keyboard, touch pad acting as a mouse
and a liquid crystal display. Its portability and capacity to operate on battery power have
served as a boon for mobile users.

Laptop computer, Laptop or Notebook all are same. Laptop’s are generally small mobile
computers run on a single main battery or from an external power supply that will served as
to run the laptop as well as charge the battery. Laptop contains all the components of
computer but all these are optimized for mobile users.

Personal Digital Assistants (PDAs): It is a handheld computer and popularly known as a

palmtop. It has a touch screen and a memory card for storage of data. PDAs can also be
effectively used as portable audio players, web browsers and smart phones. Most of them can
access the Internet by means of Bluetooth or Wi-Fi communication.

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 A personal digital assistant (PDA) is a handheld computer, also known as small or palmtop
computers. Newer PDAs also have both color screens and audio capabilities, enabling them to
be used as mobile phones (Smartphone’s), web browsers, or portable media players. Many
PDAs can access the Internet, intranets or extranets via Wi-Fi, or Wireless Wide-Area
Networks (WWANs). Many PDAs employ touch screen technology.

Input Devices:

Human beings interact with computer systems largely through input and output devices.
Advances in information systems rely not only on the speed and capacity of the CPU but also
on the speed, capacity, and design of the input and output devices. Input/output devices are
often called peripheral devices.

The traditional method of data entry has been by keyboarding. Today, most data are entered
directly into the computer using a data entry terminal and they are processed on-line. For
instance, on-line airline reservation and customer information systems have reservation clerks
or salespeople enter transactions directly while dealing with the customer, and their systems
are updated immediately. In this manner, a business can eliminate a separate data entry staff
and the associated costs.

Some batch applications developed during an earlier era in computing might still use
keypunching to obtain input. Data entry clerks use a keypunch machine to code characters on
an 80-column card, designating each character with a unique punch in a specific location on
the card. An electromechanical card reader senses the holes and solid parts of the cards. A
single card could store up to 80 bytes of information (80 columns).Key –to-tape or key-to-disk
machines allowed data to be keyed directly onto magnetic tape or disk for later computer
processing.

The computer Mouse:

The ‚point-and-click‛ actions of the computer mouse have made it an increasingly popular
alternative to keyboard and text-based commands. A mouse is a hand-held device that is
usually connected to the computer by a cable. The computer user moves the mouse around on
a desktop to control the position of the cursor on a video display screen. Once the cursor is in
the desired position, the user can push a button on the mouse to select a command. The mouse
can also be used to ‚draw‛ images on the screen.

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A mouse is a Pointing device (input device) that rolls around on a flat surface and controls the
pointer. The pointer (also called the mouse pointer) is an on-screen object-usually an arrow that is
used to select text, access menus, and interact with programs, and also to select files or data that
appear on the screen.

Most mice are mechanical; they contain a small rubber ball that protrudes through a hole in the
bottom of the mouse’s case. The ball rolls inside the case when you move the mouse around on a flat
surface. Inside the mouse, rollers and sensors send signals to the computer telling it the distance,
direction, and speed of the balls motions. The computer uses this data to position the mouse pointer
on the screen.

Touch Screens:

Touch screens are easy to use and are appealing to people who can’t use traditional
keyboards. Users can enter limited amounts of data by touching the surface of a sensitized
video display monitor with a finger or a pointer. With colorful graphics, sound, and simple
menus, touch screens are proliferating in retail stores, restaurants, shopping malls, and even in
some schools. For instance, music stores can install In touch, touch screen-equipped kiosks
produced by Muze Inc. of Brooklyn, to sell audio compact disks. Customers can use the touch
screen to select 30 second samples of songs before making up their minds. Having listened to
one song, a customer can again touch the screen to bring up lists of other songs by the same
musicians.

Source Data Automation:

Source data automation captures data in computer-readable form at the time and place they
are created. Point –of-scale systems, optical bar-code scanners used in supermarkets, and other
optical character recognition devices are examples of source data automation. One of the
advantages of source data automation is that the many errors that occur when people use
keyboards to enter data are almost eliminated .Bar code scanners make fewer than 1 error in
10,000 transactions, whereas skilled keypunchers make about 1 error for every 1000
keystrokes.

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Moreover, source data automation permits information about events to be captured directly
and immediately, with on-the-spot error correction. Businesses using these devices do not
need a separate keypunch staff. The principal source data automation technologies are
magnetic ink character recognition, optical character recognition, pen-based input, digital
scanners, voice input, and sensors.

Magnetic ink character recognition (MICR): This technology is used primarily in check
processing for the banking industry. The bottom portion of a typical check contains characters
that are preprinted using a special ink. Characters identify the bank, checking account, and
check number. A MICR reader translates the characters on checks that have been cashed and
sent to the bank for processing into digital form for the computer. The amount of the check,
which is written in ordinary ink, must be keyed in by hand.

Its similar to OCR, and is used by the banking industry for faster processing of the large
volume of cheques being handled every day by this industry. This technology also ensures
accuracy of data entry, because most of the information is pre-printed on the cheque and is
directly fed to the computer.

Banks which employ MICR technology use a special type of cheque. The bank’s identification
code (name, branch, etc.), account number, and the cheque number are pre-printed(encoded)
by using characters from a special character set on all these cheques with a special ink, which
contains magnetizable particles of iron oxide, before the cheques are given to the customers
for use.

When a customer presents a filled –in cheque at a bank, a bank employee manually
enters(keys in)the amount written on the cheque, in the lower right corner of the cheque by
using an MICR inscriber, which prints the amount with the magnetic ink. The date of the
transaction is automatically recorded for all cheques processed that day. This cheque is then
processed by using an MICR reader-sorter, which can recognize magnetic ink characters. The
MICR reader-sorter reads the data on the cheques, and sorts the cheques for distribution to
other banks, or for further processing.

The most commonly used character set by MICR devices is known as E13B font, which
consists of the numerals 0 to 9,and four special characters ,Coded data in the form of these
fonts are transferred from cheques to the computer by an MICR reader sorter. As the
cheques enter the reading unit, they pass through a magnetic field, which cause the particles
in the ink to become magnetized. Read heads then interpret these characters by examining

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their shapes. The sorter is used to sort the cheques in to different packets, according to their
identification code numbers.

MICR technology speeds up data input for the banking industry, because cheques can be
directly fed into the input device, and automatically processed thereafter. Besides enabling
faster processing of cheques, this technology also ensures accuracy of data entry, because most
of the information is preprinted on the cheque, and is directly fed in to the computer.

Optical character recognition (OCR) devices translate specially designed marks, characters,
and codes into digital form. The most widely used optical code is the bar code, which is used
in point-of-sale systems in supermarkets and retail stores. Bar codes are also used in hospitals,
libraries, military operations, and transportation facilities. The codes can include time, date,
and location data in addition to identification data; the information makes them useful for
analyzing the movement of items and determining what has happened to them during
production or other processes.

It is a device scanner equipped with Character Recognition software. It is used for inputting
text documents and storing them in a form, which is suitable for doing word processing of the
documents. That is, the computer can interpret the stored document as letters, numbers and
special characters.

When image scanners are used for inputting text documents (typed or handwritten), they
have the following two limitations;

1. Since the input documents are stored as an image, instead of text, it is not possible to
do any word processing of the document.
2. The storage required for storing the document as an image is much more than that
required for storing the same document as a text.
The OCR technology is used to overcome these limitations. In this case, the scanner is
equipped with a character recognition software (called OCR software),which converts the bit
map images of characters to equivalent ASCII codes .That is, the scanner first creates the bit
map image of the document, and then the OCR software translates the array of grid points in
to ASCII text ,which the computer can interpret as letters ,numbers and special characters.

OCR software is extremely complex, because it is difficult to make a computer recognize an

unlimited number of typefaces and fonts. Hence these software of characters to equivalent
ASCII codes. That is, the scanner first creates the bit map image of the document, and then the

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OCR software translates the array of grid points in to ASCII text, which the computer can
interpret as letters, numbers and special characters.

OCR software is extremely complex, because it is difficult to make a computer recognize an

unlimited number of typefaces and fonts. Hence these software of characters to equivalent
ASCII codes. That is, the scanner first creates the bit map image of the document, and then the
OCR software translates the array of grid points in to ASCII text, which the computer can
interpret as letters ,numbers and special characters.

OCR software is extremely complex, because it is difficult to make a computer recognize an

unlimited number of typefaces and fonts.

Handwriting-recognition devices such as pen-based ‛tablets,‛ ‛notebooks,‛ and ‚notepads‛

are promising new input technologies, especially for people working in the sales or service
areas or for those who have traditionally shunned computer keyboards. These pen-based
input devices usually consist of a flat-screen display tablet and a pen-like stylus.

With pen-based input, users print directly onto the tablet-sized screen. The screen is fitted with
a transparent grid of fine wires that detects the presence of the special stylus, which emits a
faint signal from its tip. The screen can also interpret tapping and flicking gestures made with
the stylus.

Pen Based Input:

Handwriting-recognition devices such as pen-based‛tablets,‛‛notebooks,‛ and ‚notepads‛ are

promising new input technologies, especially for people working in the sales or service areas
or for those who have traditionally shunned computer keyboards. These pen-based input
devices usually consist of a flat-screen display tablet and a pen-like stylus.

With pen-based input, users print directly onto the tablet-sized screen. The screen is fitted with
a transparent grid of fine wires that detects the presence of the special stylus, which emits a
faint signal from its tip. The screen can also interpret tapping and flicking gestures made with
the stylus.

Pen-based input devices transform the letters and numbers written by users on the tablet into
digital form, where they can be stored or processed and analyzed. for instance, the United
Parcel Service replaced its drivers familiar clipboard with a battery-powered Delivery
Information Acquisition Device(DIAD) to capture signatures along with other information

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required for pickup and delivery. The Gillette Corporation supplied Grid Pad HD pen-based
computers to its store merchandisers who are responsible for stocking stores and ensuring that
Gillette products, such as Right Guard, are displayed as prominently as possible. The
merchandisers had never used computers before. The merchandisers enter handwritten
numbers on electronic ‚forms‛ into the notebooks, and transmit the information via telephone
links to Gillette. Gillette thus can receive stocking plans and information on products, pricing,
and promotions immediately from the field. This technology requires special pattern-
recognition software to accept pen-based input instead of keyboard input. At present, most
pen-based systems cannot recognize free-hand writing very well.

Digital Scanners:

Digital scanners translate images such as pictures or documents into digital form, and are an
essential component of image processing systems.

A scanner allows you to scan documents, pictures, or graphics and view them on the
computer. You can also use software to edit the items you scan.

Used to put printed pictures and text into a computer

 Converts an image into dots that the computer can understand

 To scan text, optical character recognition (OCR) software is needed

Voice Input Devices:

Voice input devices convert spoken words into digital form. Voice-recognition
software compares the electrical patterns produced by the speaker’s voice to a set of
prerecorded patterns. If the patterns match, the input is accepted. Most voice systems
still have limited ‚vocabularies‛ of several hundred to several thousand words and can
accept only very simple commands. For instance, some branches of the U.S. Postal
Service are using voice-recognition systems to make sorting packages and envelopes
more efficient. In one application, users can speak out a zip code instead of keying them
in, so that both hands can manipulate a package.

Sensors:

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 Sensors are devices that collect data directly from the environment for input into a
computer system. For instance, sensors are being used in General Motors cars with
onboard computers and screens that display the map of the surrounding area and the
driver’s route. Sensors in each wheel and a magnetic compass supply information to the
computer for determining the car’s location. The South Coast Air Quality Management
District’s system uses sensors in smokestacks to supply data for monitoring pollution
emissions. The sensors continuously measure emissions and are linked to
microcomputers at the site of each smokestack, which send the data collected by the
sensors to the district’s central computer for analysis.

Output Devices:

Video Display Terminals (CRT):

The major data output devices are cathode ray tube (CRT) terminals (sometimes called video
display terminals, or VDTs, and printers.

The CRT is probably the most popular form of information output in modern computer
systems. It works much like a television picture tube, with an electronic ‚gun‛ shooting a
beam of electrons to illuminate the pixels on the screen. The more pixels per screen, the higher
the resolution. CRT monitors can be classified as monochrome or color and by their display
capabilities. Some display only text, whereas others display both text and graphics. Typical
CRTs display 80 columns and 24 lines of text data. Display devices for graphics often utilize bit
mapping. Bit mapping allows each pixel on the screen to be addressed and manipulated by the
computer. This requires more computer memory but permits finer detail and the ability to
produce any kind of image on the display screen. Special-purpose graphics terminals used in
CAD/CAM and commercial art have high-resolution capabilities (1280x1024 pixels).

Printers:

Printers produce a printed hard copy of information output. They include impact printers (a
standard typewriter or a dot matrix) and nonimpact printers (laser, inkjet, and thermal transfer
printers). Most printers print one character at a time, but some commercial printers print an
entire line or page at a time. Line printers capable of printing an entire line of output in a
single step can print up to 3000 lines per minute. Page printers print an entire page at a time,
outputting 20,000 lines per minute. Printers working with microcomputers typically provide
dot-matrix print at a speed of 60 to over 400 characters per second. Much slower letter-quality
printers operate in the 10 to 50 characters per-second range. In general impact printers are
slower than nonimpact printers. Laser printers for microcomputers can print 4 to 8 pages per
minute. Laser printers in large computer centers can print over 100 pages per minute.

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Dot-matrix printer quality is generally much lower than letter quality and is used for less
important documents and spreadsheets. Intelligence,‛ or some processing ability, is built into
many newer printers and other input and Output devices to take over tasks that were formerly
performed by the main computer. For example, many microcomputer printers, such as the
Hewlett-Packard Laser jet series or the Apple LaserWriter, are programmed to store graphic
elements and various type fonts, which can be used selectively by different pieces of software.

Printers are most commonly used output devices today for producing hard-copy output.

The various types of printers are

1. Dot-matrix printers
2. Inkjet printers
3. Laser printers.
Dot matrix printers:

Dot-matrix printers are character printers, which print one character at a time. They form
characters and all kinds of images as a pattern of dots.
A dot-matrix printer has a print head, which can move horizontally (left to right and right to
left) across the paper. The print head contains an array of pins, which can be activated
independent of each other to extend bad strike against an inked ribbon to form a pattern of
dots on the paper.
To print a character, the printer activates the appropriate set of pins as the print head moves
horizontally. For faster printing, many dot matrix printers are designed to print both while the
print head moves from left to right, and while it moves from right to left, on return.
Dot Matrix printer

Since dot matrix printers produce printed output as patterns of dots, they can print any shape
of character, which a programmer can describe. This allows the printer to print many special
characters, different sizes of print, and the ability to print graphics, such as charts and graphs.
Dot-matrix printers are impact printers, because they print by hammering the pins on the
inked ribbon to leave ink impression on the paper. Hence, they can be used to produce
multiple copies by using carbon paper or its equivalent. Dot-matrix printers are noisy as
compared to non-impact printers.
Dot-matrix printers are normally slow with speeds usually between 30 to 600 characters per
second. However, they are cheap in terms of both initial cost and cost of operation. Hence they

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are preferred by individuals and organizations for generating printed outputs, if the speed and
quality of printing are not important factors. They are also used for applications, which require
multicopy output, such as sipping forms and invoices, which rely on impact for generating
multiple copies.

For instance, if you use multipart forms, dot matrix is the only technology that can handle the
thickness of these documents and print through all the layers. It is also ideal for those who
need reliable printers to put out large quantities of mailing labels, envelopes, reports, or
packing labels. Dot matrix printers are generally a cost-effective solution for those who need
big jobs done quickly.

Ink-jet printers: Inkjet printers are character printers, which form characters and all kinds of images
by spraying small drops of ink on to the paper.

The print head of an inkjet printer contains up to 64 tiny nozzles, which can be selectively
heated up in a few microseconds by an integrated circuit register.

When the register heats up, the ink near it vaporizes, and is ejected through the nozzle, and
makes a dot on the paper placed in front of the print head. To print a character, the printer
selectively heats the appropriate set of nozzles as the print head moves horizontally.

Inkjet Printer

Inkjet printers produce higher quality output the dot-matrix printers, because they form
characters by very tiny ink dots. A high –resolution inkjet printer has as many as 64 nozzles
within height of 7mm, providing print resolution of around 360 dots per inch.

Since inkjet printers produce printed output as patterns of tiny dots, they can print any shape
of characters, which a programmer can describe. This allows the printer to print many special
characters, different sizes of print, and the ability to print graphics, such as charts and graphs.

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 Inkjet printers are non-impact printers, because they print by spraying ink on the paper.
Hence, they are quiet in operation. However, like other non-impact printers, inkjet printers
cannot be used to produce multiple copies of a document in a single printing.

Inkjet printers are slower than dot-matrix printers with speeds usually ranging between ‚40
to 300‛ characters per second. Typically, an inkjet printer is more expensive than a dot-matrix
printer. They are preferred by individuals and organizations for generating printed outputs,
if the speed of printing is not an important factor.

Although inkjets were available in the 1980s, it was only in the 1990s that prices dropped
enough to bring the technology to the high street. Canon claims to have invented what it
terms ‘bubble jet’ technology in 1977, when a researcher accidentally touched an ink-filled
syringe with a hot soldering iron. The heat forced a drop of ink out of the needle and so
began the development of a new printing method.

Inkjets have one massive attraction over laser printers; they produce colour, and that is what
makes them so popular with home users. The down side is that although inkjets are generally
cheaper to buy than lasers, they are more expensive to maintain. Cartridges need to be
changed more frequently and the special coated paper required to produce high-quality
output is very expensive. When it comes to comparing the cost per page, inkjets work out
about ten times more expensive than laser printers.

Laser printers:

Laser Printers are page printers, which print one page at a time. The main components of a
laser printer are a laser beam source, a multi-sided mirror, a photoconductive drum and toner
(tiny particles of oppositely charged ink). To print a page of output, the laser beam is focused
on the electro statically charged drum by the spinning multisided mirror. The mirror focuses
the laser beam on the surface of the drum in a manner to create the patterns of
characters/images to be printed on the page. As the drum is photoconductive, a difference in
electric charge is created on those parts of the drum surface, which are exposed to the laser
beam. As a result , the toner , which is composed of oppositely charged ink particles, sticks to
the drum in the places, where the laser beam has charged the drum’s surface. The toner is
then permanently fused on the paper with heat and pressure to generate the printed output.
The drum is then rotated and cleaned with a rubber blade to remove the toner sticking to its
surface to prepare the drum for the next page printing. Laser
printer

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Laser printers produce very high quality output, because they form characters by very tiny ink
particles. The most common laser printers have resolution of 600 dpi (dots per inch), whereas
some high-end laser printers have resolution of 1200 dpi.

Laser printers are non-impact printers, because they do not have hammers striking on an
inked ribbon or paper. Hence, they are very quiet in operation. However, like other non-
impact printers, laser printers cannot be used to produce multiple copies of a document in a
single printing.

Laser printers are faster in printing speed than other printers discussed before. Low speed
laser printers can print 4 to 12 pages per minute. Very high-speed laser printers are also
available, which can print 500 to 1000 pages per minute. Laser printers are more expensive
then other printers.

Plotters:

Microfilm and microfiche have been used to compactly store output as microscopic filmed
images, and they are used mainly by insurance companies or other firms that need to output
and store large numbers of documents. These media are cumbersome to search through and
will be replaced by optical disk technology.
High-quality graphic documents can be created using plotters with multicolored pens to draw
(rather than print) computer output. Plotters are much slower than printers, but are useful for
outputting large-size charts, maps, or drawings.

A special type of output devices called plotters, which produce high quality, perfectly-
proportioned graphic output on large sheets. Plotters are ideal output device for architect’s
engineers, city planners and others who need to routinely generate high-precision, hard copy,
and graphic output of widely varying sizes.

Voice Output Devices:

A voice output device converts digital output data back into intelligible speech. Sounds are
prerecorded, coded, and stored on disk, to be translated back as spoken words. For instance,

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when you call for information on the telephone, you may hear a computer ‚voice‛ respond
with the telephone number you requested.

Secondary Storage:

In addition to primary storage, where information and programs are stored for immediate
processing, modern computer systems use other types of storage in order to accomplish their
tasks. Information systems need to store information outside of the computer in a nonvolatile
state(not requiring electrical power)and to store volumes of data too large to fit into a
computer of any size today. The relatively long-term storage of data outside the CPU and
primary storage is called secondary storage.

Primary storage is where the fastest, most expensive technology is used. There are actually
three different kinds of primary memory: register, cache, and RAM. Register is the fastest and
most expensive memory, where small amounts of data and instructions reside for thousands
of a second just. prior to use, followed by cache memory(for high-speed storage of frequently
used instructions and data) and RAM memory for large amounts of data. Access to
information stored in primary memory is electronic and occurs almost at the speed of light.
Secondary storage is nonvolatile and retains data even when the computer is turned off. There
are many kinds of secondary storage; the most common are magnetic tape, magnetic disk, and
optical disk. These media can transfer large bodies of data rapidly to the CPU. But since
secondary storage requires mechanical movement to gain access to the data, in contrast to
primary storage, it is relatively slow.

Data Storage Devices in a Microcomputer

Types of Memory Total Storage Capacity Access Time

Register Primary Storage .01 microseconds
1 kilobyte
Cache 1 kilobyte .1 microseconds
RAM 16 megabytes .5 microseconds
Hard disk Secondary Storage 15 milliseconds
800 megabytes
High-density 2.8 megabytes 200 milliseconds
diskette(3.5’’)
Optical disk 660 megabytes 200-500 milliseconds
Magnetic tape(1/4‛ 40 megabytes 1-2 seconds
streaming tape backup)

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Magnetic Disk Storage:

The most widely used secondary storage medium today is magnetic disk. There are two kinds
of magnetic disks: floppy disks(used in microcomputers)and hard disks(used on commercial
disk drives and microcomputers).Hard disks are thin steel platters with an iron oxide coating.
In larger systems, multiple hard disks mounted together on a vertical shaft. Figure illustrates a
commercial hard disk pack for a large system. It has 11 disks, each with two surfaces, top and
bottom. However, although there are only 20 recording surfaces on the disk pack. On each
surface, data are stored on tracks. The disk pack is generally sealed from the environment and
rotates at a speed of about 3500 rpm, creating an air-stream speed of about 50 mph at the disk
surface.

Information is recorded on or read from the disk by read/write heads, which literally fly over
the spinning disks. Unlike a home stereo, the heads never actually touch the disk but hover a
few thousandths of an inch above it. A smoke particle or a human hair is sufficient to crash the
head into the disk.

The read/write heads move horizontally(from left to right) to any of 200 positions called
cylinders. At any one of these cylinders ,the read/write heads can read or write information to
any of 20 different concentric circles on the disk surface areas(called tracks).The cylinder
represents the circular tracks on the same vertical line within the disk pack. Read/write heads
are directed to a specific record using an address consisting of the cylinder number, the
recording surface number, and the data record number.

The speed of access to data on a disk is a function of the rotational speed of the disk and the
speed of the access arms. The read/write heads must position themselves, and the disk pack
must rotate until the proper information is located. More advanced and expensive disks have
access speeds of 1.5-10 milliseconds and capacities of up to 7.5 gigabytes per unit.

Each track contains several records. In general, 20,000 bytes of information can be stored on
each track at densities of up to 12,000 bpi. If there are 20 such tracks and 200 cylinders in a disk

39 | P a g e
pack, the total capacity of the illustrated disk pack is 80 megabytes. As noted previously
advanced commercial disks for large systems have much higher storage capacities over 1
billion bytes.

The entire disk pack is housed in a disk drive or disk unit. Large mainframe or minicomputer
systems have multiple disk drives because they require immense disk storage capacity. Disk
drive performance can be further enhanced by using a disk technology called RAID
(Redundant Array of Inexpensive Disks).RAID devices package more than a hundred 5.25-
inch disk drives, a controller chip, and specialized software into a single large unit. While
traditional disk drives deliver data from the disk drive along a single path, RAID delivers data
over multiple paths simultaneously, accelerating disk access time. Smaller RAID systems
provide 10 to 20 gigabytes of storage capacity, while larger systems provide over 700
gigabytes. RAID is potentially more reliable than standard disk drives because other drives are
available to deliver data if one drive fails.

Microcomputers usually contain hard disks, which can store over 1.2 gigabytes, but 340 to 520
megabytes are the most common size. Microcomputers also use floppy disks, which are flat,
5.25 inch or 3.5-inch disks of polyester film with a magnetic coating. These disks have a storage
capacity ranging from 360K to 2.8 megabytes and a much slower access rate than hard disks.
Floppy disks and cartridges and packs of multiple disks use a sector method for storing data.
As illustrated in figure, the disk surface is divided into pie-shaped pieces, the actual number
depending on the disk system used. In most types of floppy disks, each sector has the same
storage capacity. Each sector is assigned a unique number. Data can be located using an
address consisting of the sector number and an individual data record number.

Magnetic disks on both large and small computers have several important advantages over
magnetic tape. First, they permit direct access to individual records. Each record can be given a
precise physical address in terms of cylinders and tracks and the read/write head can be
directed to go to that address and access the information in about 10 to 60 milliseconds. This
means that the computer system does not have to search the entire file, as in a tape file, in
order to find the person’s record. This creates the possibility for on-line information systems
providing an immediate response, such as an airline reservation or customer information
system. Disk storage is often referred to as a direct access storage device (DASD).

40 | P a g e
For on-line systems requiring direct access, disk technology provides the only practical means
of storage today. Records can be easily and rapidly retrieved. The cost of disks has steadily
declined over the years.

DASD is, however, relatively expensive compared to magnetic tape. Moreover, updating in
formation stored on a disk destroys the old information because the old data on the disk is
written over if changes are made. Therefore, it becomes more difficult to back up and audit the
transactions recorded on a disk.

Magnetic Tape Storage:

Magnetic Tape is an older device that is still important for secondary storage of large volumes
of information. It is used primarily in mainframe batch applications and for archiving data.
Generally, magnetic tape for large systems comes in 14-inch reels that are up to 2400 feet long
and 0.5 inches wide. It is very similar to home cassette recording tape, but of higher quality

Figure shows how information appears on magnetic tape using an EBCDIC coding scheme.
Each byte of data utilizes one column across the width of the tape. Each column is composed
of eight bits plus one check parity bit. Information can be stored on magnetic tape at different
densities.

Low density is 1600 bytes per inch(bpi),and densities of up to 6250 bpi are common. Tape
cartridges with much higher density and storage capacity are starting to replace reel-to-reel
tapes in mainframe and minicomputer systems. Microcomputers and some minicomputers use
small tape cartridges resembling home audiocassettes to store information.

The principal advantages of magnetic tape are that it is very inexpensive, that it is relatively
stable, and that it can store very large volumes of information. t is a reliable technology
because of several self-checking features, and therefore is an ideal form of backup storage for
other more volatile forms of memory. Moreover, magnetic tape can be used over and over
again, although it does age with time and computer users must handle it carefully.

41 | P a g e
The principal disadvantages of magnetic tape are that it stores data sequentially and is
relatively slow compared to the speed of other secondary storage media. In order to find an
individual record stored on magnetic tape, such as professors employment record, the tape
must be read from the beginning up to the location of the desired record. This means that the
CPU must read each name from ‚Abelson‛‛ all the way to professors name before it can locate
professors record. Hence magnetic tape is not a good medium when it is necessary to find
information rapidly. Tape can also be damaged and is labor intensive to mount and dismount.
The environment in which it is stored must be carefully controlled. Since contemporary
information systems call for immediate access to data, tape represents a fading technology, but
it continues to exist in changing forms.

Optical Disk Storage:

Optical disks, also called compact disks or laser optical disks, store data at densities many
times greater than those of magnetic disks and are available for both microcomputers and
large computers. Data are redo4dede on optical disks when a laser device is encoded by the
length of these pits and the space between them. Optical disks when a laser device burns
microscopic pits in the reflective layer of a spiral track. Binary information is encoded by the
length of these pits and the spade between the,. Optical disks can thus store massive quantities
of data, including not only text but also pictures, sound, and full motion video, in a highly
compact form. The optical disk is read by having a low-power laser beam from an optical head
scan the disk.

The most common optical disk system used with microcomputers is called CD-ROM(compact
disk read-only memory).A 4.75-inch compact disk can store up to 660 megabytes, nearly 300
times more than a high-density floppy disk. Optical disks are most appropriate for
applications where enormous quantities of unchanging data must be stored compactly for easy
retrieval, or for storing g graphic images and sound.CD-ROM is also less vulnerable than
floppy disks to magnetism, dirt, or rough handling.

42 | P a g e
CD-ROM is read-only storage. No new data can be written to it; it can only be read.CD-ROM
has been most widely used for reference materials with massive amounts of data, such as
encyclopedias, directories, or on-line databases and for storing multimedia applications that
combine text, sound, and images For example, financial databases from Dow Jones or Dun and
Bradstreet are available on CD-ROM. The U. S. Department of Defense has initiated a system
of networks and optical imaging to reduce the mountains of paper generated by technical
design information and administrative data for weapons systems. The Ford Motor Company
now sends its North American dealers CD-ROM disks with technical information for servicing
Ford cars; it also sends a complete parts catalog and saves significantly by not having to mail a
paper version.

WORM(write once/read many) optical disk systems allow users to record data only once on an
optical disk. Once written, the data cannot be erased, but can be read indefinitely. WORM has
been used as an alternative to microfilm for archiving digitized document images. The
disadvantages of CD-ROM and WORM optical disks are that their contents cannot easily be
erased and written over, as can be done with magnetic disks, and that the access speed is
slower than that of magnetic disks.

Rewritable magneto-optical disks are starting to become cost effective for data storage. The
disk surface is coated with a magnetic material that can change magnetic polarity only when
heated. To record data, a high-powered laser beam heats tiny spots in the magnetic medium
that allows it to accept magnetic patterns. Data can be read by shining a lower-powered laser
beam at the magnetic layer and reading the reflected light. The magneto-optical disk is
erasable and can be written on nearly a million times. The access speed of optical disks, while
slower than that of a magnetic disk, is continuing to improve, making the optical disk a very
attractive storage technology in coming years.

CD-ROM storage is likely to become more popular and more powerful in years to come.
Consumer electronics companies such as Sony, Philips Electronics, Time Warner, and Toshiba
are developing high-capacity compact disks that can store over 4 billion bytes of data, enough
to hold two to three hours of high-resolution digital video with stereo sound. Such digital
videodisks would contain 15 times more data than current CD-ROMs and would work with
computers of all sizes as well as video and video-game players.

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Output Devices:

Video Display Terminals (VDT):

The major data output devices are cathode ray tube (CRT) terminals (sometimes called video
display terminals, or VDTs, and printers.

The CRT is probably the most popular form of information output in modern computer
systems. It works much like a television picture tube, with an electronic ‚gun‛ shooting a
beam of electrons to illuminate the pixels on the screen. The more pixels per screen, the higher
the resolution. CRT monitors can be classified as monochrome or color and by their display
capabilities. Some display only text, whereas others display both text and graphics. Typical
CRTs display 80 columns and 24 lines of text data. Display devices for graphics often utilize bit
mapping. Bit mapping allows each pixel on the screen to be addressed and manipulated by the
computer. This requires more computer memory but permits finer detail and the ability to
produce any kind of image on the display screen. Special-purpose graphics terminals used in
CAD/CAM and commercial art have high-resolution capabilities (1280x1024 pixels).

Printers:

Printers produce a printed hard copy of information output. They include impact printers (a
standard typewriter or a dot matrix) and nonimpact printers (laser, inkjet, and thermal transfer
printers). Most printers print one character at a time, but some commercial printers print an
entire line or page at a time. Line printers capable of printing an entire line of output in a
single step can print up to 3000 lines per minute. Page printers print an entire page at a time,
outputting 20,000 lines per minute. Printers working with microcomputers typically provide
dot-matrix print at a speed of 60 to over 400 characters per second. Much slower letter-quality
printers operate in the 10 to 50 characters per-second range. In general impact printers are
slower than nonimpact printers. Laser printers for microcomputers can print 4 to 8 pages per
minute. Laser printers in large computer centers can print over 100 pages per minute.

Dot-matrix printer quality is generally much lower than letter quality and is used for less
important documents and spreadsheets. Intelligence,‛ or some processing ability, is built into
many newer printers and other input and Output devices to take over tasks that were formerly
performed by the main computer. For example, many microcomputer printers, such as the
Hewlett-Packard Laser jet series or the Apple LaserWriter, are programmed to store graphic
elements and various type fonts, which can be used selectively by different pieces of software.

44 | P a g e
Printers are most commonly used output devices today for producing hard-copy output.

The various types of printers are

4. Dot-matrix printers
5. Inkjet printers
6. Laser printers.
Dot matrix printers:

Dot-matrix printers are character printers, which print one character at a time. They form
characters and all kinds of images as a pattern of dots.
A dot-matrix printer has a print head, which can move horizontally (left to right and right to
left) across the paper. The print head contains an array of pins, which can be activated
independent of each other to extend bad strike against an inked ribbon to form a pattern of
dots on the paper.
To print a character, the printer activates the appropriate set of pins as the print head moves
horizontally. For faster printing, many dot matrix printers are designed to print both while the
print head moves from left to right, and while it moves from right to left, on return.
Dot Matrix printer

Since dot matrix printers produce printed output as patterns of dots, they can print any shape
of character, which a programmer can describe. This allows the printer to print many special
characters, different sizes of print, and the ability to print graphics, such as charts and graphs.
Dot-matrix printers are impact printers, because they print by hammering the pins on the
inked ribbon to leave ink impression on the paper. Hence, they can be used to produce
multiple copies by using carbon paper or its equivalent. Dot-matrix printers are noisy as
compared to non-impact printers.
Dot-matrix printers are normally slow with speeds usually between 30 to 600 characters per
second. However, they are cheap in terms of both initial cost and cost of operation. Hence they
are preferred by individuals and organizations for generating printed outputs, if the speed and
quality of printing are not important factors. They are also used for applications, which require
multicopy output, such as sipping forms and invoices, which rely on impact for generating
multiple copies.

For instance, if you use multipart forms, dot matrix is the only technology that can handle the
thickness of these documents and print through all the layers. It is also ideal for those who

45 | P a g e
need reliable printers to put out large quantities of mailing labels, envelopes, reports, or
packing labels. Dot matrix printers are generally a cost-effective solution for those who need
big jobs done quickly.

Ink-jet printers: Inkjet printers are character printers, which form characters and all kinds of images
by spraying small drops of ink on to the paper.

The print head of an inkjet printer contains up to 64 tiny nozzles, which can be selectively
heated up in a few microseconds by an integrated circuit register.

When the register heats up, the ink near it vaporizes, and is ejected through the nozzle, and
makes a dot on the paper placed in front of the print head. To print a character, the printer
selectively heats the appropriate set of nozzles as the print head moves horizontally.

Inkjet Printer

Inkjet printers produce higher quality output the dot-matrix printers, because they form
characters by very tiny ink dots. A high –resolution inkjet printer has as many as 64 nozzles
within height of 7mm, providing print resolution of around 360 dots per inch.

Since inkjet printers produce printed output as patterns of tiny dots, they can print any shape
of characters, which a programmer can describe. This allows the printer to print many special
characters, different sizes of print, and the ability to print graphics, such as charts and graphs.

Inkjet printers are non-impact printers, because they print by spraying ink on the paper.
Hence, they are quiet in operation. However, like other non-impact printers, inkjet printers
cannot be used to produce multiple copies of a document in a single printing.

Inkjet printers are slower than dot-matrix printers with speeds usually ranging between ‚40
to 300‛ characters per second. Typically, an inkjet printer is more expensive than a dot-matrix
printer. They are preferred by individuals and organizations for generating printed outputs,
if the speed of printing is not an important factor.

46 | P a g e
 Although inkjets were available in the 1980s, it was only in the 1990s that prices dropped
enough to bring the technology to the high street. Canon claims to have invented what it
terms ‘bubble jet’ technology in 1977, when a researcher accidentally touched an ink-filled
syringe with a hot soldering iron. The heat forced a drop of ink out of the needle and so
began the development of a new printing method.

Inkjets have one massive attraction over laser printers; they produce colour, and that is what
makes them so popular with home users. The down side is that although inkjets are generally
cheaper to buy than lasers, they are more expensive to maintain. Cartridges need to be
changed more frequently and the special coated paper required to produce high-quality
output is very expensive. When it comes to comparing the cost per page, inkjets work out
about ten times more expensive than laser printers.

Laser printers:

Laser Printers are page printers, which print one page at a time. The main components of a
laser printer are a laser beam source, a multi-sided mirror, a photoconductive drum and toner
(tiny particles of oppositely charged ink). To print a page of output, the laser beam is focused
on the electro statically charged drum by the spinning multisided mirror. The mirror focuses
the laser beam on the surface of the drum in a manner to create the patterns of
characters/images to be printed on the page. As the drum is photoconductive, a difference in
electric charge is created on those parts of the drum surface, which are exposed to the laser
beam. As a result , the toner , which is composed of oppositely charged ink particles, sticks to
the drum in the places, where the laser beam has charged the drum’s surface. The toner is
then permanently fused on the paper with heat and pressure to generate the printed output.
The drum is then rotated and cleaned with a rubber blade to remove the toner sticking to its
surface to prepare the drum for the next page printing.

Laser printer

Laser printers produce very high quality output, because they form characters by very tiny ink
particles. The most common laser printers have resolution of 600 dpi (dots per inch), whereas
some high-end laser printers have resolution of 1200 dpi.

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Laser printers are non-impact printers, because they do not have hammers striking on an
inked ribbon or paper. Hence, they are very quiet in operation. However, like other non-
impact printers, laser printers cannot be used to produce multiple copies of a document in a
single printing.

Laser printers are faster in printing speed than other printers discussed before. Low speed
laser printers can print 4 to 12 pages per minute. Very high-speed laser printers are also
available, which can print 500 to 1000 pages per minute. Laser printers are more expensive
then other printers.

Plotters:

Microfilm and microfiche have been used to compactly store output as microscopic filmed
images, and they are used mainly by insurance companies or other firms that need to output
and store large numbers of documents. These media are cumbersome to search through and
will be replaced by optical disk technology.
High-quality graphic documents can be created using plotters with multicolored pens to draw
(rather than print) computer output. Plotters are much slower than printers, but are useful for
outputting large-size charts, maps, or drawings.

A special type of output devices called plotters, which produce high quality, perfectly-
proportioned graphic output on large sheets. Plotters are ideal output device for architect’s
engineers, city planners and others who need to routinely generate high-precision, hard copy,
and graphic output of widely varying sizes.

Voice Output Devices:

A voice output device converts digital output data back into intelligible speech. Sounds are
prerecorded, coded, and stored on disk, to be translated back as spoken words. For instance,
when you call for information on the telephone, you may hear a computer ‚voice‛ respond
with the telephone number you requested.

Secondary Storage:

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In addition to primary storage, where information and programs are stored for immediate
processing, modern computer systems use other types of storage in order to accomplish their
tasks. Information systems need to store information outside of the computer in a nonvolatile
state(not requiring electrical power)and to store volumes of data too large to fit into a
computer of any size today. The relatively long-term storage of data outside the CPU and
primary storage is called secondary storage.

Primary storage is where the fastest, most expensive technology is used. There are actually
three different kinds of primary memory: register, cache, and RAM. Register is the fastest and
most expensive memory, where small amounts of data and instructions reside for thousands
of a second just. prior to use, followed by cache memory(for high-speed storage of frequently
used instructions and data) and RAM memory for large amounts of data. Access to
information stored in primary memory is electronic and occurs almost at the speed of light.
Secondary storage is nonvolatile and retains data even when the computer is turned off. There
are many kinds of secondary storage; the most common are magnetic tape, magnetic disk, and
optical disk. These media can transfer large bodies of data rapidly to the CPU. But since
secondary storage requires mechanical movement to gain access to the data, in contrast to
primary storage, it is relatively slow.

Data Storage Devices in a Microcomputer

Types of Memory Total Storage Capacity Access Time

Register Primary Storage .01 microseconds
1 kilobyte
Cache 1 kilobyte .1 microseconds
RAM 16 megabytes .5 microseconds
Hard disk Secondary Storage 15 milliseconds
800 megabytes
High-density 2.8 megabytes 200 milliseconds
diskette(3.5’’)
Optical disk 660 megabytes 200-500 milliseconds
Magnetic tape(1/4‛ 40 megabytes 1-2 seconds
streaming tape backup)

Magnetic Disk Storage:

The most widely used secondary storage medium today is magnetic disk. There are two kinds
of magnetic disks: floppy disks(used in microcomputers)and hard disks(used on commercial

49 | P a g e
disk drives and microcomputers).Hard disks are thin steel platters with an iron oxide coating.
In larger systems, multiple hard disks mounted together on a vertical shaft. Figure illustrates a
commercial hard disk pack for a large system. It has 11 disks, each with two surfaces, top and
bottom. However, although there are only 20 recording surfaces on the disk pack. On each
surface, data are stored on tracks. The disk pack is generally sealed from the environment and
rotates at a speed of about 3500 rpm, creating an air-stream speed of about 50 mph at the disk
surface.

Information is recorded on or read from the disk by read/write heads, which literally fly over
the spinning disks. Unlike a home stereo, the heads never actually touch the disk but hover a
few thousandths of an inch above it. A smoke particle or a human hair is sufficient to crash the
head into the disk.

The read/write heads move horizontally (from left to right) to any of 200 positions called
cylinders. At any one of these cylinders, the read/write heads can read or write information to
any of 20 different concentric circles on the disk surface areas (called tracks).The cylinder
represents the circular tracks on the same vertical line within the disk pack. Read/write heads
are directed to a specific record using an address consisting of the cylinder number, the
recording surface number, and the data record number.

The speed of access to data on a disk is a function of the rotational speed of the disk and the
speed of the access arms. The read/write heads must position themselves, and the disk pack
must rotate until the proper information is located. More advanced and expensive disks have
access speeds of 1.5-10 milliseconds and capacities of up to 7.5 gigabytes per unit.

Each track contains several records. In general, 20,000 bytes of information can be stored on
each track at densities of up to 12,000 bpi. If there are 20 such tracks and 200 cylinders in a disk
pack, the total capacity of the illustrated disk pack is 80 megabytes. As noted previously
advanced commercial disks for large systems have much higher storage capacities over 1
billion bytes.

50 | P a g e
The entire disk pack is housed in a disk drive or disk unit. Large mainframe or minicomputer
systems have multiple disk drives because they require immense disk storage capacity. Disk
drive performance can be further enhanced by using a disk technology called RAID
(Redundant Array of Inexpensive Disks).RAID devices package more than a hundred 5.25-
inch disk drives, a controller chip, and specialized software into a single large unit. While
traditional disk drives deliver data from the disk drive along a single path, RAID delivers data
over multiple paths simultaneously, accelerating disk access time. Smaller RAID systems
provide 10 to 20 gigabytes of storage capacity, while larger systems provide over 700
gigabytes. RAID is potentially more reliable than standard disk drives because other drives are
available to deliver data if one drive fails.

Microcomputers usually contain hard disks, which can store over 1.2 gigabytes, but 340 to 520
megabytes are the most common size. Microcomputers also use floppy disks, which are flat,
5.25 inch or 3.5-inch disks of polyester film with a magnetic coating. These disks have a storage
capacity ranging from 360K to 2.8 megabytes and a much slower access rate than hard disks.
Floppy disks and cartridges and packs of multiple disks use a sector method for storing data.
As illustrated in figure, the disk surface is divided into pie-shaped pieces, the actual number
depending on the disk system used. In most types of floppy disks, each sector has the same
storage capacity. Each sector is assigned a unique number. Data can be located using an
address consisting of the sector number and an individual data record number.

Magnetic disks on both large and small computers have several important advantages over
magnetic tape. First, they permit direct access to individual records. Each record can be given a
precise physical address in terms of cylinders and tracks and the read/write head can be
directed to go to that address and access the information in about 10 to 60 milliseconds. This
means that the computer system does not have to search the entire file, as in a tape file, in
order to find the person’s record. This creates the possibility for on-line information systems
providing an immediate response, such as an airline reservation or customer information
system. Disk storage is often referred to as a direct access storage device (DASD).

For on-line systems requiring direct access, disk technology provides the only practical means
of storage today. Records can be easily and rapidly retrieved. The cost of disks has steadily
declined over the years.

51 | P a g e
DASD is, however, relatively expensive compared to magnetic tape. Moreover, updating in
formation stored on a disk destroys the old information because the old data on the disk is
written over if changes are made. Therefore, it becomes more difficult to back up and audit the
transactions recorded on a disk.

Magnetic Tape Storage:

Magnetic Tape is an older device that is still important for secondary storage of large volumes
of information. It is used primarily in mainframe batch applications and for archiving data.
Generally, magnetic tape for large systems comes in 14-inch reels that are up to 2400 feet long
and 0.5 inches wide. It is very similar to home cassette recording tape, but of higher quality.

Figure shows how information appears on magnetic tape using an EBCDIC coding scheme.
Each byte of data utilizes one column across the width of the tape. Each column is composed
of eight bits plus one check parity bit. Information can be stored on magnetic tape at different
densities.

Low density is 1600 bytes per inch(bpi),and densities of up to 6250 bpi are common. Tape
cartridges with much higher density and storage capacity are starting to replace reel-to-reel
tapes in mainframe and minicomputer systems. Microcomputers and some minicomputers use
small tape cartridges resembling home audiocassettes to store information.

The principal advantages of magnetic tape are that it is very inexpensive, that it is relatively
stable, and that it can store very large volumes of information. t is a reliable technology
because of several self-checking features, and therefore is an ideal form of backup storage for
other more volatile forms of memory. Moreover, magnetic tape can be used over and over
again, although it does age with time and computer users must handle it carefully.

52 | P a g e
The principal disadvantages of magnetic tape are that it stores data sequentially and is
relatively slow compared to the speed of other secondary storage media. In order to find an
individual record stored on magnetic tape, such as professors employment record, the tape
must be read from the beginning up to the location of the desired record. This means that the
CPU must read each name from ‚Abelson‛‛ all the way to professors name before it can locate
professors record. Hence magnetic tape is not a good medium when it is necessary to find
information rapidly. Tape can also be damaged and is labor intensive to mount and dismount.
The environment in which it is stored must be carefully controlled. Since contemporary
information systems call for immediate access to data, tape represents a fading technology, but
it continues to exist in changing forms.

Optical Disk Storage:

Optical disks, also called compact disks or laser optical disks, store data at densities many
times greater than those of magnetic disks and are available for both microcomputers and
large computers. Data are redo4dede on optical disks when a laser device is encoded by the
length of these pits and the space between them. Optical disks when a laser device burns
microscopic pits in the reflective layer of a spiral track. Binary information is encoded by the
length of these pits and the spade between the,. Optical disks can thus store massive quantities
of data, including not only text but also pictures, sound, and full motion video, in a highly
compact form. The optical disk is read by having a low-power laser beam from an optical head
scan the disk.

The most common optical disk system used with microcomputers is called CD-ROM(compact
disk read-only memory).A 4.75-inch compact disk can store up to 660 megabytes, nearly 300
times more than a high-density floppy disk. Optical disks are most appropriate for
applications where enormous quantities of unchanging data must be stored compactly for easy

53 | P a g e
retrieval, or for storing g graphic images and sound.CD-ROM is also less vulnerable than
floppy disks to magnetism, dirt, or rough handling.

CD-ROM is read-only storage. No new data can be written to it; it can only be read.CD-ROM
has been most widely used for reference materials with massive amounts of data, such as
encyclopedias, directories, or on-line databases and for storing multimedia applications that
combine text, sound, and images For example, financial databases from Dow Jones or Dun and
Bradstreet are available on CD-ROM. The U.S. Department of Defense has initiated a system of
networks and optical imaging to reduce the mountains of paper generated by technical design
information and administrative data for weapons systems. The Ford Motor Company now
sends its North American dealers CD-ROM disks with technical information for servicing Ford
cars; it also sends a complete parts catalog and saves significantly by not having to mail a
paper version.

WORM(write once/read many) optical disk systems allow users to record data only once on an
optical disk. Once written, the data cannot be erased, but can be read indefinitely. WORM has
been used as an alternative to microfilm for archiving digitized document images. The
disadvantages of CD-ROM and WORM optical disks are that their contents cannot easily be
erased and written over, as can be done with magnetic disks, and that the access speed is
slower than that of magnetic disks.

Rewritable magneto-optical disks are starting to become cost effective for data storage. The
disk surface is coated with a magnetic material that can change magnetic polarity only when
heated. To record data, a high-powered laser beam heats tiny spots in the magnetic medium
that allows it to accept magnetic patterns. Data can be read by shining a lower-powered laser
beam at the magnetic layer and reading the reflected light. The magneto-optical disk is
erasable and can be written on nearly a million times. The access speed of optical disks, while
slower than that of a magnetic disk, is continuing to improve, making the optical disk a very
attractive storage technology in coming years.

CD-ROM storage is likely to become more popular and more powerful in years to come.
Consumer electronics companies such as Sony, Philips Electronics, Time Warner, and Toshiba
are developing high-capacity compact disks that can store over 4 billion bytes of data, enough
to hold two to three hours of high-resolution digital video with stereo sound. Such digital
videodisks would contain 15 times more data than current CD-ROMs and would work with
computers of all sizes as well as video and video-game players.

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 UNIT_III
System Analysis – System planning and mutual investigation. Information gathering
MIS Organization – Top Management – Data processing group’s responsibility .

System Analysis:

The analysis phase answers the questions of who will use the system, what the
system will do, and ‘where and when it will be used. During this phase, the project team
investigates any current system(s), identifies improvement opportunities, and develops
a concept for the new system.
Analysis begins with the development of an analysis strategy that guides the
project team’s efforts. Such a strategy usually includes an analysis of the current system
(called the as-is system) and its problems and then an analysis of ways to design a new
system (called the to-be system). The next step is information gather- big (e.g., through
interviews or questionnaires). The analysis of this information— in conjunction with
input from the project sponsor and many other people—leads to the development of a
concept for a new system. The system concept is then used as a basis to develop a
business process model that describes how the business will operate if the new system
were developed. Figure shows an example process model, with processes (the tasks that
someone performs) shown as boxes with rounded corners inputs and Outputs of the
processes as arrows, and data storage containers as boxes with an open side. Finally, a
data model is developed to describe the information that is needed to support the
process. The analyses, system concept, process model, and data model are combined
into a document called the system proposal, which is presented to the project sponsor and
other key decision makers (e.g., members of the approval committee) who decide
whether the project should continue to move forward.

The system proposal is the initial deliverable that describes what the new
system should look like. Because it is really the first step in the design of the new
system, some experts argue that it is inappropriate to use the term analysis as the name
for this phase; some argue a better name would be analysis and initial design. Because
most organizations continue to use the name analysis for this phase, we will use it in this
book as well, but it is important to remember that the deliverable from the analysis
phase is both an analysis and a high-level initial design for the new system.

THE ANALYSIS PROCESS:

Analyzing information system requirements is both a business task and

an information technology task. In the early days of computers, there was a
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 presumption that the systems analysts, as experts with computer systems, were in the
best position to define how a computer system should operate. Many systems failed
because they did not adequately address the true business needs of the users.
Gradually, the presumption changed so that the users, as the business experts, were
seen as being in the best position to define how a computer system should operate.
However, many systems failed to deliver performance benefits because users simply
automated an existing inefficient system and failed to incorporate the new
opportunities offered by computer technology.
The ideal approach is to balance the expertise of both users and
analysts, because successful systems build on the business expertise of the users and the
systems expertise of the analysts. Perhaps the best analogy is building a house or an
apartment. We have all lived in a house or apartment, and most of us have some
understanding of what we would like to see in one. However, if we were asked to
design one from scratch, it would be a challenge because we lack the design skills and
technical engineering skills needed. Likewise, an architect acting alone would probably
miss some of the unique requirements that each of us would really want.
The systems development life cycle (SDLC) is the process by which
the organization moves from the as-is system to the to-be system. The initiation phase
developed some general ideas for the to-be system and defined the project’s scope. The
product of the analysis phase is a system concept for the to-be system. This concept is
then refined in the design phase into a detailed design and then built and delivered in
the implementation phase.

The analysis phase is divided into three steps: understanding the

as-is system, identifying improvements, and developing the concept for the to-be
system. The way in which these steps are performed and the amount of time and effort
spent in

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 +
each step depends on the analysis strategy adopted by the project team. Nonetheless,
each strategy strives to understand the basic business process and implement changes
to make it better. A business process is simply a set of activities that are performed to
achieve some goal. For example, a typical store would have a business process for
ordering products, a business process for selling to customers, a business process for
accepting customer returns, and so on. Each of these business processes could in turn be
considered one part of the overall business process of running the store. When
designing information systems, it is important to understand the scope of the business
process under consideration (e.g., whether it is the entire store operations or just one
component),
There are three fundamental analysis strategies: automating, improving,
and reengineering the business processes. Business process automation (BPA) means
leaving the basic way in which the organization operates unchanged using computer
technology to do some of the work. BPA can make the organization more efficient but
has the least impact on the business. Business process improvement (BPI) means making
moderate changes to the way in which the organization operates to take advantage of
new opportunities offered by technology or to copy competitors are doing. BPI can
improve efficiency (i.e., doing things right)and - improve effectiveness (i.e., doing the
right things). Business process reengineering (BPR) means changing the fundamental way
in which the organization operates— ‘obliterating‛ the current way of doing business
and making major changes to take advantage of new ideas and new technology. No one
approach is necessarily better than the others. BPA is the most appropriate in some
cases, BPI is best in others, and BPR brings about the most improvements in still other
cases. BPR is the most challenging because it requires a complete redesign of business

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 before the information systems to support it can be designed. It has the greatest
potential to significantly improve profits and reduce expenses, but it can also be the
riskiest— most reengineering projects fail to deliver the benefits they promise.
Regardless of which analysis strategy is used, the project still flows through the three
fundamental steps: understanding the as-is system, identifying improvements, arid
developing the to-be system concept.
Understanding the As-Is System

In most CISCS, the system under development will replace an existing

system. Thus, the first step is to study this system and understand its strengths and
weaknesses. This usually requires the project team to apply the information gathering
techniques. If the as-is system is a computerized system then the team can review the
analysis and design documents from the previous systems development project that
built the system (if they exist). In some cases, the project team develops a detailed
process model and data model that describes how the system currently operates.
In many cases, there is a tendency to jump to conclusions about what the
new system should he like. There is a temptation to focus only on what the users want
in the new system (rather than understanding the as—is system, whether computerized
or not), but this can be dangerous. Without an understanding of the as—is system, it is
hard to really understand users’ requirements. Although users often know what they
would like in a new system, those wants are sometimes not what they really need.
Likewise, analysts sometimes start a project with a predetermined system concept and
fail to really listen to users.

Identifying Improvement Opportunities

Once the project team understands the current system, it then identifies ways
to improve that system. Again, various information-gathering techniques are used to
understand what improvements should be made.
Identifying improvement opportunities requires technology skills and
significant business expertise in the functional area being examined. Technology skills
are needed because without them, it is impossible to build the needed systems, and
because information technology offers new ideas to solve problems and exploit
opportunities. Business skills are needed because technology itself cannot make a
business successful: only when technology is harnessed to address real business needs
can the organization gain value.
An analyst or external consultant with a lot of experience—or the users themselves
under the guidance of an experienced analyst or consultant—will work on identifying
improvements. Although users will seldom have experience in the analysis of business
processes, they are the experts in the processes themselves.
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 Developing the To-Be System Concept

Once information about the system has been gathered and

improvements arc identified, the analysts and users then develop the components for
the to-be system. The system concept starts as a fuzzy set of possible improvement
ideas that are gradually worked and reworked into a viable concept for the to-be
system. Once the system concept is reasonably well understood, a business process
model and a data model are created. These models require very detailed information,
and often the analysts must again interview managers and users to gather more
information.
Analysis ends with a system proposal for the new system that
presents an overview of one alternative (sometimes more alternatives). The proposal
presents a vision for the new system and outlines its basic design. The proposal may
present only one recommended concept, or may present several alternatives. Each
alternative will present an outline of the new system, usually with a process model and
a data model. The analysts will develop a revised work plan for each alternative and
will again examine the expected costs and benefits and present a more detailed version
of the feasibility analysis done when the project began.
This proposal will be presented to the approval committee, which will
decide if the project is to continue, and, if so, which alternative will be used. This is
usually done at a system walk-through, a meeting at which the concept for the new
system is presented in moderate detail to the users, managers, and key decision makers,
so that all clearly understand it, can identify needed improvements, and are able to
decide whether the project should continue. At this point, the project transitions from
analysis into the design phase.

System Planning:
Information systems planning is an important component of
organizational planning. How it emphasizes plan drivers, and the IT architecture in the
IS planning processes. Companies do strategic IS planning. There are four main
objectives. They are,
Business alignment. Aligning investment in information technology.
Planning:
The planning phase is the fundamental process of understanding why an
information system should be built and determining how the project team will go about
building it. The first step is called project initiation, during which the system’s business
value to the organization is identified-how will it lower costs or increase profits? Most
ideas for new systems come from outside the IS area (from the marketing department,
accounting department, etc.)in the form of a system request. A system request presents
a brief summary of a business need and it explains how a system that supports the need
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 will create business value. The IS department works together with the person or
department that generated the request (called the project sponsor)to conduct a
feasibility analysis that examines the idea’s technical feasibility, the economic feasibility,
and the organizational feasibility. The deliverable for project management is a project
plan that describes how the project team will go about developing the system. This plan
includes all of the project management deliverables.

Planning is basic to all managerial functions. It is a process of selecting one course of action,
from different alternatives, for achieving the stated goals, objectives and targets. It is a
decision making process determining in advance what to do, how to do, when to do
and who is to do. .
Planning creates a frame of activity and events which are to happen or a runway for
achieving corporate goals, objectives and targets. Planning process demands resource
allocation through decision making. The organization may have a plan; but question is
how effective the plan is.
The efficiency of a plan is measured by the amount it contributes towards achievement
of goals. The Plan is efficient if it achieves the goals with less investment or with less
resource.
Therefore, efficient planning involves selecting a plan among several alternative plans.
An efficient plan enables the management to handle uncertainty and risk in the
business. It helps to handle the change occurring in the environment and affecting the
plan itself. Planning helps to make operations economical as it continuously evaluates
the costs and outputs and forces optimum use of resources. It further helps to control
business operations at all levels with common reference to goals, objectives and targets.

Types of Planning:
Planning is discussed, typically, in terms of the level of planning
(strategic, tactical and operational) and the planning time frame.
Strategic planning deals with the development of an organization’s mission, goals,
strategies, and policies. Corporations may begin the process by developing a shared
vision using a variety of techniques, including team building, scenario modeling, and
consensus creating exercises.
Tactical planning involves the design of tactics, the setting of objectives, and the
development of procedures, rules, schedules, and budgets. Operational planning is
planning done on a short-term basis to implement and control day-to-day operations.
Typical examples are project planning and production scheduling.
Long-range planning usually involves looking three to five years (or more) into the
future. However, many organizations have a continual planning process that reviews
and modifies their long-range plans on a regular basis, such as every six months to a
year.
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 Short-range planning can range from daily, weekly, or monthly planning to a one-year
or two-year time frame. Typical examples are the development of financial and
operating budgets, production scheduling, and planning for the development and
implementation of projects.
All operational planning and much tactical planning are done on a short-
range basis. Most strategic planning and some tactical planning are done using a
medium-to-long-range planning horizon. However, if unforeseen developments with
major strategic implications occur, an organization would use strategic planning
methods within a short time frame in order to confront a crisis.
Strategic Information Systems Planning:
An Information system planning is an important component of
organizational planning. How planning fits into an organization IS’s planning process.
Notice how it emphasizes the activities and outputs of strategic business planning, and
the role of business vision, business drivers, and the IT architecture in the IS planning
processes. Companies do strategic IS planning, as illustrated with four main objectives
in mind:

 Business alignment. Aligning investment in information technology with a company’s

business vision and strategic business goals.
 Competitive advantage. Exploiting information technology to create innovative and
strategic business information systems for competitive advantage.
 Resource management. Developing plans for the efficient and effective management of
a company’s information system resources, including IS personnel, hardware, software,
data, and network resources.
 Technology architecture. Developing technology policies and designing an information
technology architecture for the organization

Methodology of Planning:

Planning is a process and hence it has a methodology. The first step in

planning is forecasting the environment, in which the plan is to be made and, operated.
Forecasting provides information on population, growth, price trends, market changes,
new opportunities, changes in technology and the external factors affecting the
business. Forecasting provides the base
on which the plan will be developed and implemented.

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 The second step in planning is determining alternative courses of action. The
management’s ability lies in creating a number of alternatives. The effective way of
creating a number of alternatives is to build a model of the situation and use it as a tool
for the generation of alternatives. These models are known as system models,
operational research model and mathematical models. Consequent to the development
of alternative courses of actions, the necessity is to analyze the feasibility of each. As, a
model can give infinite alternatives, only some of them can be feasible in the given
conditions and constraints. The constraints may be man-made or environmental; but
they affect the feasibility of the action. Evaluating the feasibility of each alternative
brings the infinite number of alternatives to a limited number.

The third step in the planning process is to evaluate the best among all the
feasible alternatives. The analysis and evaluation is done with reference to the
objectives such as, minimisation of cost, maximisation of profit, yield, and
productivity,etc. The right choice of an objective is a crucial factor in the selection
process. The planning begins with the setting of goals and objectives and ends up in
selecting the most rational course of action.

As mentioned earlier, the organisation has a network of goals, objectives

and targets. It is necessary to develop the network of plans corresponding this network.
The process leads to the, development of corporate plans, functional plans,
departmental plans and so on. For example, the organization may have business plans
investment plants marketing plans and advertising plans. Normally, the corporate
plans are for a longer period and the derived plans are for shorter periods. Since the
plan has a commitment to time, it is necessary to build a flexible plan capable of
undergoing a suitable change to alter the goals and objectives within the same time. The
flexibility, as far as possible should be built in, so that the cost of changes is not very
high and the implementation is still possible without loss of time.
Information gathering MIS Organization:

QUESTIONNAIRES:
Questionnaires provide an alternative to interviews for finding out information about a
system. Questionnaires are made up of questions about information sought by the
analyst. The questionnaire is then sent to the user, and replies are analyzed by the
analyst.

There are a number of disadvantages in using questionnaires, First, they are mostly
suited to closed questions and are not effective for open questions such as ‘Describe
your general duties’ or ‘What are the most important system components?’ Second,
questionnaire questions are usually not answered completely and will often express
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 some current concern rather than long-term Concerns. Thus, the response to ‘Describe
your general duties’ will often include the things the User did in the last day or SO A set
of follow-up questions is Usually necessary to establish activities over a longer period of
time and this is best done by an interview rather than a long questionnaire

Questionnaires, however, are useful when the same kind of information is Sought from
a number of users. This is especially so if that information is of a quantitative nature—
for example, finding out how many calls salespeople make each day, A questionnaire
which asks that question is simply sent to all the salespeople in the organization,

It is also possible to use questionnaire to get an idea about the quality and performance
of systems This can be done by Using Structured questio5 that include a range of replies
and require the responder to tick one of them. For example, a question to on the quality
of service may read as follows:
Do you feel that our deliveries to you are:

Always prompt?
As good as can be expected
Sometimes late?
Often late?
Questionnaires, of course, often include many questions designed to find
out information about a system component. For example, we might have a
questionnaire like that shown in figure . Here we are trying to establish the usefulness
of a program developed to support a large number of insurance brokers in preparing
1flsuran quotations. The first question establishes the User’s familiarity with the
program. Th;5 is followed by a question that indicates the User’s general experience.
Then questions are asked about whether the user finds the program useful, and finally
suggestions are asked for regarding a possible improvement. A collection of responses
can then he used to establish the general acceptability of the program and to determine
whether it should continue to he used and whether any changes are needed.

In summary, questionnaires are used to supplement other techniques. They

are useful for gathering numerical data or getting relatively simple opinions from a
number
of people, but they are not very effective for in-depth searches or for identifying system
problems or solutions. Interviews tend to be more successful for this purpose.

ELECTRONIC DATA GATHERING:

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 Electronic communication systems are increasingly being used to gather information.
Thus it is possible to use electronic mail to broadcast a question to a number of Users in
an organization to obtain their viewpoint on a particular issue. Alternatively, an
electronic bulletin board can be used to allow potential users to record their
requirements.

GATHERING INFORMATION BY OBSERVATION

Interviewing and other ways of asking questions are characterized by

having analysts learn about the system without themselves getting involved in the
system. Interviews often emphasize what an individual does and how to support them,
rather than looking at the individual’s relationship to their group. The analyst then has
to correlate findings about individuals and determine how the whole group works. It is
also the interviewer’s responsibility to find out the objectives of each individual and try
to make them cohesive.

There are some other characteristics of interviewing that can lead to

incorrect assumptions about a system. One is the danger that because the interview is
usually carried out outside the working environment, the interviewee may distort
replies to questions. There is the possibility of exaggeration or of emphasizing the less
important aspects of activities. There is also the danger that the interviewer may have
preconceived ideas about the system and its needs and try to impose these ideas into
the study or interpret replies in terms of these preconceived notions

A further disadvantage of data gathering based on individual interviews is

that it assumes that an individual’s work is relatively routine in nature and does not
change over time. This, however, may not be the case in some team Situations where
tasks arc dynamically and spontaneously distributed between users. We thus have a
situation where there is a dynamic, or time varying, division of labor, with the rules for
this division themselves changing. Interviewees often find it difficult to describe these
situations in exact terms, thus leading to possible misunderstandings about the system.
Ethnography aims to overcome some of these problems. It does this by observing the
usage world and recording activities within it.

USING ETHNOGRAPHY :

Ethnography is not a new field but, rather, a new approach to analyzing

computer system requirements. One of its most important goals is not to superimpose
the interviewer’s or analyst’s viewpoint on the system but to use the viewpoint of the
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 people within the system. The terms emic and etic are sometimes used to stress this
distinction. An etic view of the system is the ‘outside view’ or what the analyst sees,
whereas the emic view is the ‘inside view’ or what the system users see. The goal is not
to superimpose the outside view on to a system and consequently identify the wrong
problems, but to actually see what goes on from the insider’s viewpoint. The main
characteristics of ethnographic studies are:

• analysts observe or possibly even participate in such activities;

• any interviews are conducted in situ, possibly as informal discussion rather than
formal interview;
• there is emphasis on examining the interaction between users;
• there is emphasis on tracing communication links; and
• there is detailed analysis of artifacts.

Ethnographic studies therefore place a different orientation on information

gathering. The emphasis is on observation of system activities, and perhaps even active
participation in these activities by analysts, and on observing the system from within
rather than from the outside. The ethnographic approach has a number of advantages.
First, because interviewing is carried out in situ, the system is directly observed as it
actually works.
The users are not disturbed in their activities, and information is gathered directly
and not from an informal description obtained through interviews.

Analysis by participation:

Ethnographic studies, because of their emphasis on interaction, are particularly

important in studying the way that groups of people work. Their goal is to study the
dynamic social situations that occur in such environments. It is usual here to identify
communities or workers and to analyze their interactions. One way to gather
information is by actually participating in group activities. The analyst becomes a
member of a team, perhaps in an indirect capacity, assisting other team members.
Successful studies, for example have been undertaken on the way air traffic controllers
work (Bentley et al., 1992).
Analysis by observation:

The goal here is to observe what people do in an unobtrusive way. The best way do this
is by video recording. It is important in video recording to ensure that the presence of
the video camera itself does not alter behavior while at the same time collecting
sufficient in-depth information to make useful observations. This requires considerable
skill both in the placement of video recording equipment and the setting of the video
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 camera itself. Once a video is complete analysis commences. Analysis is usually carried
out in conjunction with participants of the work setting. The result of the review session
is a script of user activities and their interaction with each other.

Some analysis techniques

Ethnography itself includes a number of techniques. Some of these (jordan, 1993) are:
• Analyzing people’s roles: This identifies how a particular person feels about their work
and the kinds of problems they encounter. The goal is to gather information on the
practices followed by people carrying out a particular task.
• Analyzing interaction. Interaction analysis defines how users work together in groups.
A simple diagram may be produced showing the various system roles and their
relationships. Then scripts may be developed to describe such relationships in more
detail. This often leads to the identification of communities of practice that are
spontaneously formed around a particular task.
Ana1yzing location: A study is made of what happens at a particular place over a period
of time. Often the study produces a set of snapshots of activities during that period.
• Analyzing artifacts: The emphasis on artifact analysis is how it fits into the flow
of work rather than on artifact structure in its own right. Important aspects are:
— how an artifact flows through the system;
— use of artifacts by teams rather than individuals;
— considering the artifact as a work space in its own right.
• Task analysis: The analyst studies the processes within a system and the role of
individual users. Emphasis is on the information needed by the user and what the user
does with the information and where it is obtained.
Although ethnography has been mainly applied in the study of detailed interactions
within dynamic group environments, we can learn from it in its more general
application to analysis. For example we may identify the interactions at a broad rather
than detailed level and then use them as a guideline in our further analysis.

FROM OBSERVATION TO DESIGN:

Another characteristic of the ethnographic approach is that objectives are

developed with user participation. Considerable time, for example, may be spent on the
design of workspaces through experimentation. Such workspaces not only include the
computer screen but also the physical space used for any manual work on associated
documentation or paperwork.

Ethnography can, of course, be made to fit in with other methods of

information gathering. It can, for examples be used to bring the social issues into
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 analysis because it emphasizes interaction. There is also a clear link between
ethnography and prototyping It should be possible to take some of the information
found in analysis and gradually use it to build systems.

GATHERING INFORMATION BY PROTOTYPING :

Prototyping is a term that is often used to mean different things. We can build
prototypes for many reasons: to test a new idea, or as a first step in development or as a
tool for requirements analysis.

Historically, most prototypes were used to test a new idea or design. You often hear of
prototypes being used in engineering. These were based on models that were used to
illustrate a system. For example, we could have a model of a plane in a wind tunnel to
test a design. The model would be ‘flown’ in the wind tunnel, measurements made on
performance and then used, if necessary, to modify the design. Once the designers are
satisfied with the results of the model, the real plane would be built. In this case, the
prototype is built to illustrate the feasibility of the new system and is then virtually
discarded.

The main role of prototyping in information systems design is to improve

requirements definition by involving potential system users. Prototyping IS primarily
an experimental method. A rough system is built, and users can experiment with it and
make comments in usage model terms about its suitability for the workplace. Their
reactions are obtained and used to define requirements in an iterative way.
The main role of prototyping in information systems design is to improve
requirements definition by involving potential system users. Prototyping is primarily
an experimental method. A rough system is built, and users can experiment with it and
make comments in usage model terms about its suitability for the workplace. Their
reactions are obtained and used to define requirements in an iterative way.
Prototyping has the added advantage that it serves to create a culture of
democracy by involving users in its developments rather than a culture where only the
analyst and designer play the leading role. It can thus ensure user commitment to the
developed system by involving users early in the decision-making process. It removes
the rigid boundaries that exist between analysts and users and can lead to better
elicitation of user requirements and, eventually better systems. It is now commonly
used in designs especially where systems cannot be easily prespecified.
In many cases prototypes can be used in the final system and hence not all
parts of a system prototype are discarded. There are, of course, different kinds of
prototyping. One way may be to actually build the system while designing it. Another
just illustrates some components of the systems which are eventually discarded. Still a
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 third and very common approach is to simulate interactive processes to see whether
they satisfy user needs.

INTERFACE PROTOTYPING :
Perhaps the most common way of prototyping is to develop screens
that illustrate what users will have to do in the new system. This can then be used to
describe to users the kind of information that would be made available to them from the
system and how they can work with this information. For examples we may construct
an interface to illustrate to a user the kind of inputs and possible outputs that a
proposed system would require. However, the actual system would not be written.
Instead, stored example screens could be illustrated to a user. Thus, in our interactive
marketing system, we could build an interface that illustrates the availability of a
product to potential customers and then get their reaction. We could also propose input
screens to gauge their acceptability. Of course, one could argue that this can be done
simply by drawing the screens on paper. However, it is found that the actual
illustration of screens is a better approach, particularly if the potential user can
experiment with some sample inputs and outputs and suggest changes to them.

PROTOTYPING PROCESSES:
Prototypes can also be used to describe a process that involves a number of users. The
term storyboarding is often used to describe this approach. In storyboarding a series of
small prototypes are tied together, so that the user can see how the whole system
works.
A storyboard is often developed as a sequence of screens, almost like developing a film
script. Thus, there may be a screen that displays what a requisition
may look like. The user can experiment with this screen and change its layout to adapt
it to a particular method of working. Then we may develop an approval screen. The
storyboard then becomes two steps. We can show the kind of input on the requisition
screen and illustrate how it results in the approve screen. Then we can develop an order
screen, and so on. Thus a storyboard evolves, and users as well as designers can begin
to see how the system will work. It should be noted that, initially, screen inputs need
not result in any actual computations. All that the underlying program does is move
data from one screen to another without storing it in a database or checking input for
correctness. As the prototype develops, we may add to these programs a database or
some checking. Thus the prototype may gradually evolve into a working system.

PROTOTYPING TO TEST A NEW IDEA

Prototyping is used when a totally novel system is proposed. No early experience exists

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 with a similar system, and so a model is needed to gain experience with the kind of
problems that can be expected when developing the full-b1own system.

A typical example of prototyping is testing a new algorithm. We may have heard of

an algorithm that may be useful for a given problem. We could test the algorithm on
some sample data to determine whether it does what we want and to measure its
performance. If this turns out to be satisfactory, then the algorithm will be used to
develop the System.
An Example-Winning at Horse Races

Suppose someone has an idea about how to predict the winners of horse
races. This requires considerable amounts of information about horse characteristics
and history as well as track and weather conditions during races. The algorithm
proposed is quite experimental. Obviously most people would be sceptical about any
such proposal, but Suppose you want to try it anyway. It would be unwise to start by
collecting information about all horses and races. This could be quite expensive and
nothing may come of it.
A better way to proceed would be to gather information about a small
subset of horses and races and perhaps try a modified algorithm on this data. Once such
a system is implemented we can experiment with it to see if we can indeed predict
winners If so, the system is then extended to include all races and horses.
Top Management:
EFFECT OF MIS ON TOP MANAGEMENT

Before speculating on what future influence MIS might have on

Management, let us take a look at the situation as it appears today. Figure , which is
based on several computer surveys and verified by my own experience, indicates that
MIS has had less

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 impact at the top management level than at the middle or operating management
level.MIS has had moderate influence on the decision-making process, little impact on
job content, and no influence on reducing or increasing the number of top managers
required. The major responsibilities of top management involve long- and short-range
planning, resource and capacity analysis, setting of profit and budget goals, and, in
general, establishing the business objectives of the company. There is a heavy planning
content as opposed to a heavy control content at the lower management levels.
Information systems have been more effective in the control than in the planning area.
However, the harbingers of potentially significant changes in this area are leading-edge
executives such as the president of Northwest Industries

Data processing group’s responsibility:

Information System Activities:

Let’s take a closer look now at each of the basic information processing (or data
processing) activities that occur in information systems. You should be able to recognize
input, processing, output, storage, and control activities taking place in any information

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 system you are studying. Figure lists business examples that illustrate each of these
information system activities.
Input Data Resources:

Data about business transactions and other events must be captured and prepared for
processing by the input activity. Input typically takes the form of data entry activities
such as recording and editing. End users typically record data about transactions on
some type of physical medium such as a paper form, or enter it directly into a computer
system. This usually includes a variety of editing activities to ensure that they have
recorded data correctly. Once entered, data may be transferred onto a machine readable
medium such as a magnetic disk until needed for processing.
For example, data about sales transactions can be recorded on source documents such
as paper sales order forms. (A source document is the original formal record of a
transaction.) Alternately, salespersons can capture sales data using computer keyboard
or optical scanning devices; they are visually prompted to enter data correctly by video
displays. This provides them with a more convenient and efficient user interface, that is,
methods of end user input and output with a computer system. Methods such as optical
scanning and displays of menus, prompts, and fill-in-the-blanks formats make it easier
for end users to enter data correctly into an information system.

Processing of Data into Information:

Data is typically subjected to processing activities such as calculating, comparing,
sorting, classifying, and summarizing. These activities organize, analyse, and manipulate
data, thus converting them into information for end users. The quality of any data
stored in an information system must also be maintained by a continual process of
correcting and updating activities.
For example, data received about a purchase can be (1) added to a running total of sales
results, (2) compared to a standard to determine eligibility for a sales discount (3) sorted
in numerical order based on product identification numbers, (4) classified into product
categories (such as food and nonfood items), (5) summarized to provide a sales manager
with information about various product categories, and, finally, (6) used to update sales
records.
Output of Information Products:

Information in various forms is transmitted to end users and made available to them in
the output activity. The goal of information systems is the production of appropriate
information products for end users. Common information products include messages,
reports, forms, and graphic images, which may be provided by
 input-Optical scanning of bar-coded tags on merchandise.

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  Processing.-Calculating employee pay,_taxes, and other payroll deductions.
Output-Producing reports and displays about sales performance.
. Storage-Maintaining records on customers, employees, and products.
Control-Generating audible signals to indicate proper entry of sales data.
video displays audio responses paper products and multimedia. We
routinely use the information provided by these products as we work in organizations
and live in society. For example, a sales manager may view a video display to check on
the performance of a sa1esperson,accept a computer-produced voice message by
telephone, and receive a printout of monthly sales results.
What characteristics would make information products valuable and useful to
you?One way to answer this important question is to examine the characteristics or
attributes of information quality. Information that is outdated, inaccurate, or hard to
understand wou1d not be very meaningful, useful, or valuable to you or other end
users. People want information of high quality that is, information products whose
characteristics, attributes, or qualities help make it valuable to them. It is useful to think
of information as having the three dimensions of time, content and form.

Time Dimension:

Timeliness-Information should be provided when it is needed

Currency-Information should be up-to-date when it is provided
Frequency-Information should be provided as often as needed
Time Period-Information can be provided about past, present, and future time periods
Content Dimension

Accuracy-Information should be free from errors

Relevance-Information should be related to the information needs of a specific recipient
for a specific situation

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 Completeness-All the information that s needed should be provided
Conciseness-Only the information that is needed should be provided
Scope-Information can have a broad or narrow scope, or an internal or external focus
Performance-Information can reveal performance by measuring activities
accomplished, progress made, or resources accumulated
Form Dimension

Clarity-Information should be provided in a form that is easy to understand

Detail-Information can be provided in detail or summary form
Order-Information can be arranged in a prdetermined
Presentation-Information can be presented in narrative, numeric, graphic
or other forms
Media Information can be provided in the form of printed paper
documents, video displays, or other media.

UNIT-IV

Management and MIS– Strategic information system – MIS as competitive advantage–

implications for managers– MIS support for planning, organizing, operating, controlling and
knowledge work. Specific function – finance – personnel – production – materials – marketing
– computer – hardware and software. Data representation in computers – Batch Processing Vs.
online processing.

Management and MIS:

The three levels of management: top management setting the overall company
goals and strategies, middle management interpreting the goals and strategies and planning
their implementation, and operating management actually carrying out and performing the
work to implement the plan. The MIS management on the right of is a microcosm of general
management in that top management of the total company does for the company. The various
system analysts and project leaders are the middle managers of MIS who interpret MIS top-
management policy and take charge of pertinent sub elements or subsystems. Programming
and operating management make certain that the individual computer programs are
consistent with the established system specifications and that, once programmed and tested;
they are operated in accordance with predetermined procedures.

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The following figure establishes the relative management-involvement levels and the interface
points between general management and MIS management. It indicates that the top
management is concerned with the first three system development elements. Overlapping
exists in the involvement of different levels of management, as can be seen from the chart.

Middle management is concerned with the establishment of external-internal strategies

through subsystem specification, while operating management’s involvement in the various
systems elements. The interface points between general and MIS management are through the
common system elements with which each is concerned.

General Management and MIS management’s involvement in MIS by particular management

level. It becomes clear, in viewing the respective roles. that there are common areas of concern.
It is necessary for both sides to come together and mutually discuss these areas. Unilateral
resolution of particular system problems has been a major cause of system failure. This point is
particularly true of MIS, where the interaction of middle and top management levels is
extremely important. Conventional system approaches, which attack lower-level

General Management Involvement in MIS:

Top Management Middle Management Operating Management

Concern with business Awareness and Develop and produce

objectives; explain what is participation in procedure manuals. Train
essential for EDP; ensure an establishment of external/ people in use of system.
understanding; monitor to internal strategies. Middle Make necessary
see that the understanding management is cognizant preparations for the
and awareness are present. of the effect of these polices conversion and transition
on actual operations. period. Should be on
call to handle detailed
questions or respond to
specific issues.

Ensure that Participate in development Help establish

external/internal of the overall integrates psychological
strategies are understood, system spec. atmosphere for acceptance
e.g., production scheduling and
system must take into co-operation of operating
account the level people involved. Develop

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employment of skilled outlook that emphasizes that
workers; alt application system benefits will offset
areas must take into the effort of change and
account the financial and transaction.
capital requirements;
applications must be built
on the assumption that
business conditions will
change.

Participate in establishing Representation on steering Explain where the

and reviewing integrated committee. Involvement in individual parts or roles of
system spec; this is overall the sub-systems that affect operating people fit into
game plan the framework the managers department total MIS picture. Maintain
or road map and is very or affect those departments positive motivation
important. Should have with whom he interfaces.
opportunity to review any
major system changes.

Participate in establishing Obtain proper people Ensure that system

over all schedules. Review involvement by setting the operates according to
major milestones and proper example. specification feed back any
project status. Middle management is not discrepancies or problems.
concerned with specific
system design but the
issues discussed and
reviewed at steering
committee meetings will
impact design.

MIS Management Involvement in MIS

— Aware of over-all Assign analysts within a Develop individual
company business goals, particular area or at least programs
MIS goals and the relation provide contact point, an consistent with subsystem
of the two. individual who can speak specs.
for the department or has
perspective to know when
middle management

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 should be called in to
approve a major issue.

Aware of company Work with MIS top Check out and fully test
strategies as management and general resulting programs.
they affect the overall management counterparts
system to
planning and MIS design. aid in the development of
the
integrated system spec.—

Major participant along Project leaders are Review questionable areas

with responsible with system analysts and
general management in for developing individual project leaders.
setting sub-
specifications schedules system specs in conjunction
and with
milestones for MIS. Must ting key management of the
take affected
leadership role and ensure departments. Must ensure
proper level of that
management spec is what using
involvement. department
wants and sees as its
requirements.

Complete responsibility for Responsible for subsystem Establish operating

the design of the overall design. procedures
integrated Design must satisfy for productive execution of
system (MIS and integrated specifications. programs
system Must review and seek
are used synonymously in resolution of
this context). The selection and spec change or on Execute and monitor
of the major trade productive programs in
particular computer system off decision. daily operation.
with
the required input/output
and
storage devices rests with

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MIS
top management.

Must be knowledgeable in Work with programmers to Develop detailed

MIS effect adequate translation conversion and
state of the art — what of system design into coded cutover plan for new
other programs. applications.
users are doing, what
computer
manufacturers, software
houses
and service companies are
doing.

Provide feed back loop to

system designers for
incorporation of new
features in subsequent re-
writes and modification of
applications.

Subsystems on a department basis while underplaying the integration aspects of systems

require interaction at the operating management level only. MIS, with its emphasis on
integration and automatic decision making, requires interaction at the middle and top
management levels. –

ESTABLISHING THE PROPER INVOLVEMENT LEVEL :

As in learning any new skill, there are several ways to acquire the necessary MIS knowledge. The first
is to learn by doing, by participating in the actual system and/or programming activity during some
part of the implementation. This, of course, can either be full-time or part-time participation. For
classification purposes, I have chosen to divide the participation method into (a) direct and (b) indirect,
depending on the level of participation. Another method of acquiring computer knowledge is by
formal training or education. In reality, knowledge is usually acquired by a combination of (a) direct
participation, (b) indirect participation, and (c) education. Since many of today’s managers attended

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college when computer courses were not well developed, the education has to be acquired after college.
Let us look at each of the three methods.

DIRECT MIS PARTICIPATION :

Looking at the MIS picture from an operating-department point of view, we list several
assignments where one can acquire computer and system know-how.
• As an in-department system analyst.
• As an out-department system analyst.

In the first instance, the department whose activities are being computerized
assigns an individual(s) to devote full time to the effort. This person works as the indepartm1t
system analyst, analyzing and defining the department’s information needs, assisting in
developing the system spec, the design of the system, and the necessary preparatory work
before turning the application over to the programmers. This is an excellent way to become
involved in the computer project. The individual learns about computers and systems by
practical experience while, at the same time, he represents the interests of his department. He
usually remains organizationally in his current department but has a dotted-line relationship
to the MIS department. He works full time on the project and produces periodic status reports
for his department’s management. Often, after a period of time, the system analyst becomes
SO interested in computer systems that he requests transfer to the MIS department. This is a
healthy situation, for there is a shortage of good system analysts, and experience in general
company business operations is excellent background. The MIS staff that has business-based
system analysts generally is more responsive to operating needs and is better able to bridge
the user-system designer gap that exists.
The out-department system analyst operates in a similar manner, except that the
individual is transferred from his current department to the MIS department. This move may
be required for budgetary reasons or for control purposes. The man is on loan to the MIS
department but is responsible for reflecting the interests of the department from which he
transferred. This situation has some advantage over the indepartment setup, but the risk is
that the individual loses the user orientation that is so important to good system work.

Finally, a member(s) of the operating department may be placed on a special

task force that is established to computerize a specified application area. The participation can

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be part time or full time, the latter being preferable if the budget exists for it. The individual,
who may be a manager if the participation is part time, does not act in the role of a system
analyst but rather in the role of a fact finder, system reviewer, sounding board, control point,
or whatever YOU wish to call it. Again he represents the using department and works with the
system analyst to provide him with the necessary background information about the
department’s operations and requirements

It is obvious that in each of the three cases mentioned, some type of formal training shou1d
supplement the practical experience. However, the major is on learning by doing, by working
with experienced system analysts and MIS personnel in actual implementation of an
application.

INDIRECT MIS PARTICIPATION:

There are other ways to become involved in MIS without the full-time or direct participation just
described. The following represent assignments that can indirectly involve people in the MIS process:

• Steering committee
• Department coordinator
• System spec developer

These are more passive approaches, but they can still be quite effective in providing proper operating-
department involvement. The steering committee is a group established at the outset to act as a higher-
level management review board. The group normally meets weekly, or less frequently, to go over
progress, review the key problem areas, and recommend solutions. It controls people and budgets and
can recommend that additional resources be utilized if the program is behind schedule. it then has the
authority to assign the additional people. Weekly review meetings are commonly supplemented by
periodic tutorial sessions to equip the committee with the knowledge to assess progress more
accurately.

The department coordinator continues to work full time on his assigned

tasks within the operating department. However, he is assigned the role of coordinator to the
systems group working in an applications area that affects his department. He is available to
answer any questions or, if he cannot answer the questions directly, to set up sessions with
pertinent people in the department. This approach is more passive and relies on the ability of

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the full-time system analysts to ask the right questions.

The system spec developer is also a part-time participant who works with
the MIS staff through the development of the system spec. He signs off on the spec for his
department. Since the spec specifies the objectives and purpose of the application, as well as
the detailed input, output, and storage requirements a sign-off at this stage is an important
consideration. However, the risk remains that the implementation may proceed counter to the
spec in certain areas or that subsequent system design may force system spec trade-Offs. If the
individual is available only up to system spec sign-off too much reliance may be placed on the
MIS staff.

Strategic information system:

What is a Strategic Information System?

Strategic Information systems change the goals ,operations, products, services, or

environmental relationships of organizations to help them gain an edge over competitors.
Systems that have these effects may even change the business of organizations. Merrill Lynch,
for instance, used information systems to change from the stock brokerage business to the
financial services business.In the 1980s ,State Street Bank and Trust Co. of Boston transformed
its core business from traditional banking services, such as customer checking and savings
accounts and loans, to electronic record keeping, providing data processing services for
securities and mutual funds. Now it is moving beyond computerized recordkeeping into a
board array of financial information services, including a monitoring service that allows
pension funds to keep better tabs on their money managers(Rebello,1995)

Strategic information systems often change the organization as well as its products, services,
and internal procedures, driving the organization into new behavior patterns. As we will see,
organizations may need to change their internal operations to take advantage of the new
information systems technology. Such changes often require new managers, a new work force,
and a much closer relationship with customers and suppliers.

CHANGING CONCEPTIONS OF INFORMATION AND INFORMATION SYSTEMS:

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Behind the growing strategic uses of information systems is a changing conception of the role
of information in organizations. Organizations now consider information a resource, much like
capital and labor. This was not always the case.

Information as a Paper Dragon:

In the Past, information was often considered a necessary evil associated with the bureaucracy
of designing, manufacturing, and distributing a product or service. Information was a ‚paper
dragon‛ that could potentially strangle the firm and prevent it from doing its real work.
Information systems of the 1950s focused on reducing the cost of routine paper processing,
especially in accounting. The first information systems were semi-automatic check-processing,
issuing, and canceling machines-so-called electronic accounting machines(EAM).The term
electronic data processing(EDP)dates from this period.

Information for General Support:

By the 1960s,organizations started viewing information differently, recognizing that

information could be used for general management support. The information systems of the
1960s and 1970s were frequently called management information systems(MIS)and were
thought of as an information factory churning out reports on weekly production, monthly
financial information, inventory, accounts receivable, accounts payable, and the like. To
perform these tasks, organizations acquired general-purpose computing equipment that could
support many functions rather than simply canceling checks.

Information for Management:

In the 1970s and early 1980s information-and the systems that collected, stored, and processed
it-were seen as providing fine-tuned, special-purpose, customized management control over
the organization. The information systems that emerged during this period were called
decision-support systems(DSS)and executive support systems(ESS).Their purpose was to
improve and speed up the decision-making process of specific managers and executives in a
broad range of problems.

Information as a Strategic Resource:

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By the mid-1980s ,the conception of information changed again. Information has since then
been regarded as a strategic resource, a potential source of competitive advantage, or a
strategic weapon to defeat and frustrate the competition. These changing conceptions of
information reflect advances in strategic planning and theory. The types of systems being built
to support this concept of information’s are called strategic systems, and their purpose is to
ensure the survival and prosperity of the organization in the near future.

Changing Concepts of Information Systems:

Time period Conception of Information Systems Purpose

Information
1950-1960 Necessary evil Electronic accounting Speed accounting
Bureaucratic machines(EAM) and paper
requirements processing
1960s-1970s General-purpose Management Speed general
support information reporting
systems(MIS)Information requirements
factory
1970s-1980s Customized Decision-support Improve and
management systems(DSS) customize decision
control Executive support making
systems(ESS)
1985-2000 Strategic resource Strategic systems Promote survival
Competitive and prosperity of
advantage Strategic the organization
weapon

Strategic information systems should be distinguished from strategic-level systems for senior
managers that focus on long-term decision-making problems. Strategic information systems
can be used at all levels of the organization and are more far-reaching and deep-rooted than
the other kinds of system we have described. Strategic information systems fundamentally
change the firm’s goals ,products, services or internal and external relationships. Strategic
information systems profoundly alter the way a firm conducts its business or the very business
of the firm itself.

MIS as competitive advantage:

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TWO VIEWPOINTS ON THE IMPACT OF MIS:

We are ready now to compare second- and third-wave thinking about MIS impact on (1)
higher-level management decision making, (2) higher-level management information style, (3)
company organization, and(4) overall job structure and content. This will set the framework
for the discussion that follows.
.
Second-wave managers feel business will be run much as in the past. They see
the prime role of middle management as motivating and directing the workers under them to
achieve prescribed goals. Second wavers feel that the computer can do little to aid in this
process. They observe also that for over 20 years now the seers have been claiming that
computers will replace managers, and little if any headway has been made. The
responsibilities of top management are to plan the long-range activities of the firm and to
ensure that the necessary resources are available to reach long-term revenue and profit
objectives.With this longer-range outlook,the idea of a top executive needing to have
instantaneous real-time data on current operations and to be hooked on-line to the computer
represents faddism rather than the result of a careful business cost/benefit analysis.The on-
line,real time executive is a business anachronism.Though the top executive may tell the board
he will earn $36,000,000 for the firm this year,he does not tell them he will earn $100,000 each
of 360 days.

Supporting the on-line, real-time case is the highly acclaimed and still quoted article by Harold
J.Leavitt and Thomas L. Whisler, ‚Managem in the 1980’s which appeared in 1958 in the Harvard
Business Review. The two professors projected an online management world in which middle
management would be eroded as top managers with information models and an information
elite corps at their side would plot the strategy of the company. These strategies would then be
translated into structured decision rules and actions that could be implemented directly by
machines and operating personnel, thus eliminating the need for middle-level management. I
think it is accurate to say that this just hasn’t happened and there is little evidence of a middle
management erosion during the remainder of the 80’s.

Second-wavers still believe in a centralized, hierarchical form of organization They point to the
failures of matrix management, where an individual has two or more bosses, and suggest that
this runs counter to the natural order of things where one works for a single boss who in turn
reports to a single boss. MIS, they conclude, is a central service provided to the corporation
and should be run centrally. As MIS users, they want to prescribe what they want, but they
don’t want to be involved in deve1oping applications and running computer centers. That’s
for the professionals.
The second-wave managers state, let me do what I do best, running business operations, and

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let the MIS people do what they do best, providing the technical leadership for keeping the
technology under control.

Second-wave managers feel that information technology will have an impact on their job but
not a major one. They take more of a defensive than an offensive role. They feel they should
have a fundamental understanding so that MIS people cannot pull the wool over their eyes
and not charge them an extraordinary amount for mediocre services. They are aware of the
growth in MIS budgets and are concerned that the charge-out

charge-out of these costs will impact their ability to meet department expense goals and affect
their yearly bonuses. Thus the position is a reactive rather than a proactive one. The key is that
they are not convinced that MIS will have a significant influence in the way they conduct their
business.

Third-wave managers, the other extreme, feel MIS can have a major influence on their decision
making. They see an evolving innovative and highly individualistic management style being
abetted by personalized executive decision support systems. They see computerized decision
models to which they will supply parameters in the
form of ‚what if‛ questions, with the model spilling out the results of various options, thus
enabling the executive to select from among them while adding the subjective and intuitive
elements that only he or she can. The third-waver envisions the ability to personally browse
through a data base for specific performance data and projections of future performance based
on a variety of selective factors.

The third-wave manager is an on-line executive in that his style is consistent with the personal
use of an executive terminal. He sees office automation in the broad sense not only as a help to
his secretary in typing memos and reports and communicating them electronically to
predefined distribution lists, but also as a personal productivity tool. He is the electronically
aided executive who runs a nearly paperless office because his correspondence, departmental
instructions, meeting schedules, and the like are computer produced through the use of
electronic filling and communication systems.

He believes in a team management style in conjunction with MIS. His company has organized
around market segments or niches, wherein products and markets have been pinpointed and
selected because of the company’s particular expertise. And desire to penetrate and dominate.

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No longer does competing across the board make sense.
The successful companies are those that specialize in growing and profitable segments and sub
segments of a specific marketplace. Third-wave management views decentralization as
essential in achieving the necessary entrepreneurial thrust and motivation. This means the
manager must control as much of the information flow and support for his department as it
logically makes sense to control. Highly defined and distinct market segments make this a
viable approach. The third-waver believes in carrying into the business world the political
viewpoint that the government that governs best governs least.

Finally, the third-wave manager feels MIS will have a major impact on his future job, probably
more than any other single force in his company or in society. He senses that if a manager does
not recognize this, he will probably be obsolete in five years. With this in mind, it behooves the
executive to be heavily involved in MIS
projects that affect his operation. Not only will he become involved when asked to, he will be
taking greater leadership in directing the MIS efforts. He sees the impact on his job not just in
the operation and control areas but in the strategic area as well. The future third-wave
manager will be an on-line executive tapping his personal as well as the company data base for
information. He will need to have this capability to compete against companies whose
executives operate in this mode.

Implications for Managers:

EFFECT OF MIS ON TOP MANAGEMENT

Before speculating on what future influence MIS might have on management, let US take a
look at the situation as it appears today. The fig. which is based on several computer surveys
and verified by my own experience indicates that MIS has had less

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impact at the top management level than at the middle or operating management level. MIS has
had moderate influence On the decision-making process, little impact on job content, and no
influence on reducing or increasing the number of top managers required. The major
responsibilities of top management involve long- and short-range planning, resource and
capacity analysis, setting of profit and budget goals, and, in general, establishing the business
objectives of the company. There is a heavy planning content as opposed to heavy control
content at the lower management levels. Information systems have been more effective in the
control than in the planning area. However, the harbingers of potentially significant changes in
this area are leading-edge executives such as the president of Northwest Industries. Control
functions tend to be more structured, more programmable, more straightforward, and,
therefore, more receptive to automated information systems.

MIS support for planning, organizing, operating, controlling and knowledge work.:

PLANNING:
Planning is basic to all managerial functions. It is a process of selecting one course of action,
from different alternatives, for achieving the stated goals, objectives and targets. It is a decision
making process determining in advance what to do, how to do, when to do and who is to do.

Planning creates a frame of activity and events which are to happen or a runway for achieving
corporate goals, objectives and targets. Planning process demands resource allocation through
decision making. The organization may have a plan; but question is how effective the plan is.
The efficiency of a plan is measured by the amount it contributes towards achievement of

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goals. The Plan is efficient if it achieves the goals with less investment or with less resource.
Therefore, efficient planning involves selecting a plan among several alternative plans. An
efficient plan enables the management to handle uncertainty and risk in the business. It helps
to handle the change occurring in the environment and affecting the plan itself. Planning helps
to make operations economical as it continuously evaluates the costs and outputs and
forces optimum use of resources. It further helps to control business operations at all levels
with common reference to goals, objectives and targets.

Methodology of Planning:

Planning is a process and hence it has a methodology. The first step in planning is forecasting
the environment, in which the plan is to be made and, operated. Forecasting provides
information on population, growth, price trends, market changes, new opportunities, changes
in technology and the external factors affecting the business. Forecasting provides the base on
which the plan will be developed and implemented.

The second step in planning is determining alternative courses of action. The management’s
ability lies in creating a number of alternatives. The effective way of creating a number of
alternatives is to build a model of the situation and use it as a tool for the generation of
alternatives. These models are known as system models, operational research model and
mathematical models. Consequent to the development of alternative courses of actions, the
necessity is to analyze the feasibility of each. As, a model can give infinite alternatives, only
some of them can be feasible in the given conditions and constraints. The constraints may be
man-made or environmental; but they affect the feasibility of the action. Evaluating the
feasibility of each alternative brings the infinite number of alternatives to a limited number.

The third step in the planning process is to evaluate the best among all the feasible
alternatives. The analysis and evaluation is done with reference to the objectives such as,
minimization of cost, maximization of profit, yield, and productivity, etc. The right choice of
an objective is a crucial factor in the selection process. The planning begins with the setting of
goals and objectives and ends up in selecting the most rational course of action.

As mentioned earlier, the organisation has a network of goals, objectives and targets. It is
necessary to develop the network of plans corresponding this network. The process leads to
the, development of corporate plans, functional plans, departmental plans and so on. For
example, the organisation may have business plans investment plants marketing plans and
advertising plans. Normally, the corporate plans are for a longer period and the derived plans
are for shorter periods. Since the plan has a commitment to time, it is necessary to build a

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flexible plan capable of undergoing a suitable change to alter the goals and objectives within
the same time. The flexibility, as far as possible should be built in, so that the cost of changes is
not very high and the implementation is still possible without loss of time. The
implementation of plans is made through developing the strategies, policies, systems, rules,
procedures, programmes and the budgets. The strategy shows the direction, focus, emphasis
and development of resources. Many a time’s good plans fail because of strategic failure. The
purpose of the strategy is not to outline a precise method of implementation; but to provide a
boost or thrust to the plans of implementation. An appropriate strategy helps to cut down the
use of resources and accelerates the process of achieving the goals.

The policy is a statement of management which stands on the top of all plans or courses of
action. A rational plan or a decision can be rejected on the premise of policy. The policies are
evolved in the wider frame of strategies and are generally not questionable; but these can be
changed. For example, the organization can have a policy of recruiting personnel only with the
qualification of MBA or it may have a policy of changing the prices once a year and not too
frequently. The policy, therefore, is a general guideline and is to be followed by all.

The system is a vehicle for the implementation of a plan. the system provides pathways, gates
and structures for communication and control.T he strategies and policies are important for
successful implementation of the plans. Depending upon the plans, Systems will be built as
closed or open systems. The rules, procedures and programmes help to implement the
operational plans. They provide a common basis and an understanding of conducting business
operations. A strict adherence to the rules and the procedures builds discipline in the
organization.A smooth implementation of the plan calls for the rules, procedures and
programmes to be observed properly. When the organization becomes bigger, the adherence
to rules ,procedures and system brings a higher degree of formalization in the process of
implementation.

The effectiveness of the plan depends on how it is implemented. A successful implementation

requires appropriate timing of launching the basic plan and its derivatives. Lack of knowledge
creates the problems of going away in a totally different direction. The plan must be evolved
by people who are going to implement it. Their participation brings their involvement and
commitment to the plan. For effective planning, participation should be encouraged.

An effective planning should begin at the top and flow down the line. The effectiveness is
brought in by taking a series of decisions, committing resources, giving directions, and
executing controls to achieve the goals and objectives. The process of planning, therefore, is to
develop the alternatives, evaluate them by meaningful analysis of costs and benefits, and make

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a rational selection based on some choice about goals. If the situation is that of uncertainly,
then the evaluation is done through risk analysis and preference theory using utility as criteria.

Organizing:

Organizing is an important step in the managerial process and relates to the people in an
enterprise. It deals with a quantitative and a qualitative aspect of manpower in terms of
placement, the roles they play and the relations amongst them, with the aim that they work
together effectively towards accomplishing the goals, objectives and the targets of the
organization. In essence, it deals with organizing the manpower resources for a given plan of
execution.

The organization could be formal or informal. The organization is formal when the roles, the
relations of the people and the objectives they should achieve are well defined. In an informal
organization, it is left to the people to understand and evolve suitable roles and relationships
to achieve the objectives.

While creating the organization, attention is given to an appropriate splitting of the enterprise
activities, by way of function, and grouping them in such a way that they form a division, a
department, a section or a formal group. The people heading these entities should have
enough authority to decide, and should exercise a discretion in using the authority. The people
should be put in such a structure of roles and relationships that it is designed to work
effectively and the members of the structure are able to contribute substantially towards the
achievement of goals. The structure would be productive, if it is manned properly. The process
of manning involves selecting people in right number and placing them at appropriate levels.

Peter Drucker recommends three ways to determine the structures:

 Activity analysis,
 Decision analysis, and
 Relations analysis.

Organizing is a process by which the manager can bring a smoothness of operations, by way
of conflict resolution, assigning work responsibility ,and creating appropriate work
environment of teamwork while deciding on the process of organizing. There are certain
important factors to which attention should be paid and which are discussed as follows:

Organization Levels and the Span of Control:

This factor deals with grouping the people in hierarchical form, determining the levels in the
organization. The levels get determined by the span of control ,i.e., in the organization how

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many subordinates a superior can manage. This number can vary anywhere between four to
eight in higher levels of management and eight to fifteen in lower levels of management. The
span of control is determined on the basis of the task to be performed, decisions to be taken,
and the strengths and weakness of the people and the degree of the delegation of the
responsibilities that a superior is willing to attain. The span of control can be increased and the
number the levels can be brought down by training the subordinates, precise planning, use of
objective standards, effective communications and formalizing the administration by way of
rules ,programmers’ and policies.

Departmentation:

Departmentation is a process of breaking an enterprise into smaller groups and levels. There
are a number of ways to break the enterprise. A widely accepted practice is by functions of the
enterprise,viz.,Marketing,Production,Finance,Personnel,Materials ,etc. The second method is
based on geographic area distribution. This method is resorted to when the distances are long,
the activities are many and the decision making is decentralized. Many organizations have
divisions, branches and territories through which the business operations are conducted.

The third method to departmentation is by way of the product or the services the organization
is providing. The departmentation of the organization brings operational convenience, creates
appropriate responsibility centres, facilitates a formal and an informal communication, permits
an evaluation of activities by a smaller group, and provides control and decision points for the
top management. Each method of a departmentalizing has advantages and disadvantages and,
therefore, it is to be chosen based on the needs of the management.

Relations of Line and Staff Functions:

The function of a department can be as a line or a staff. The functions which have a direct
responsibility of achieving the targets for production or sales are line functions. The staff
functions are those which do not participate directly in the activity but aid line functions to
achieve the targets. Production, Planning, Marketing. Purchasing, etc. are staff function. The
distinction is more clear and precise at higher levels. The staff function is advisory but owns
the responsibility for the results and is accountable for non-performance.

The relationship between the line and the staff functions ,is always strained. The performance
of the line function depends upon how the staff function has planned the activities. Deficient
planning leads to an unutilisation of line capacity and non attainment of targets. A line
function does not have resources, leverages and powers to overcome the problems arising out
of the staff functions.

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Delegation of Authority:

The function may either be a line function or a staff function; but still it requires decision
making. As one person cannot plan, execute and control all the tasks in the functions, owing to
the limitations of time and capacity, it is necessary that the decision making is not centralized
at one point.

Handling over limited authority of decision making to the subordinates is called delegation.
The concept of delegation is based on the premise that an individual can take decisions if
supported by information, knowledge and guidance, and is motivated enough to perform. The
concept of delegation accepts the responsibility of non-performance of the delegated person or
the mistakes made by him. Hence, most routine types of decisions are delegated with the
support of rules, conditions and the method of decision making.

The failures in delegation occur not because of the lack of understanding of the principle of
delegation, but because of the inability to implement it into practice. A lot depends upon the
ability of the manager to delegate and upon the capabilities of the subordinates to use the
authority. The manager is not able to delegate, if he does not have a positive attitude towards
delegation, if he is not receptive to the subordinates’ ideas and is not willing to accept the risk
of failure or mistakes of his subordinates. A failure to use the delegated authority emanates
from a lack of communication, guidance, training and motivation.

Towards Effective Organizing:

Organizing is an activity of building a structure of roles and relations of the people to secure
coordination of individual efforts to achieve common stated goals, objectives and targets. The
failure in organizing occurs due to the failure to plan properly ,to delegate the authority and
due to the confusion of roles, relations and authority. The failure also occurs on account of
imbalance in the line and staff functions and their relations. Organising becomes effective, if it
is designed for the unity of goals and objectives with precise planning and optimum span of
control. It becomes further effective, if it works on the principle of command, delegation and
parity of authority and responsibility. It becomes productive if it is flexible enough to change
and is headed by a manager with leadership qualities.

OPERATING:

After organizing the resources the planned activities, the business plan is launched. The
process of implementing the plan is dynamic. It calls upon the manager to perform a number
of things in a coordinated manner so that the plan remains valid and the development takes
place as per the plan.

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The process meets with a number of difficulties and the manager is supposed to resolve them.
There will be a lag and lead in many activities. There could be shortfalls and overruns.

There could be sudden developments which may disturb the plans and the process of
implementation. The manager’s role, in this situation, is to coordinate all the activities and
provide leadership to the group to keep the plan moving. Directing and leading are the
methods, whereby the subordinates are lead to understand the purpose of the activity, and
provide leadership to the group to keep the plan moving. Directing and leading are the
methods, whereby the subordinates are lead to understand the purpose of the activity, and by
way of guidance, a direction is given to them to march towards the goals. Their difficulties and
conflicts are resolved ,bottlenecks removed and a clear path is created to progress on plan
achievement.

The task of directing and leading becomes more effective if the human side of the enterprise is
taken care of by motivating the people. The manager is required to create an environment in
which everybody can perform their best. The work environment becomes conductive to good
performance if work becomes satisfying and provides an opportunity to expand the scope of
work and his influence.

The manager is a leader if he possess the art of influencing the subordinates in such a way that
they willingly perform towards the achievements of the goals, objectives and targets. The
process of coordinating and directing takes place through communication. Good
communication has been defined by the American Society of Training Directives as an
interchange of thought or information to bring about mutual understanding and confidence or
good human relations. The coordinating and directing effect is more effective if the manager is
able to motivate the subordinates and provide leadership by way of an effective
communication.

CONTROLLING:

The last but the most important step in the process of management is controlling, the
successful execution of management plan. Without control, the process becomes unproductive.
The purpose of control is to regulate the process in such a way that the management process
continuously strives for the achievement of the goals, objectives and targets.

The control is exercised through a system. The system measures the performance of the
management in terms of some predefined measures of output. It compares the output with the
standard ,identifies the deviations from the standard, corrects the management process to
ensure that the plan continues to be effective in terms of achieving goals, objectives and
targets.

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The control system works on the principle of feedback. The feedback on the performance
should be quick without any loss of time, so that corrective action can be taken immediately.
The process of correction involves changes in the plan, reallocation of resources, application of
new systems, procedures and rules. The best control is the one which brings the process back
into action automatically to correct the midstream adverse development.

Time is the essence of control. If the corrective action is taken late on account of delayed
feedback, it is ineffective and may result in heavy losses. Most of the managers look for real-
time control system, a system which provides an instant negative feedback from the standard
and an instantaneous corrective action without any time delay.

Since the management control systems are not physical systems, where one can desire real
time control mechanism, the managers look for feed forward control. The feed forward control
gives an advance warning, an indication that the deviations are likely to occur in the near
future calling for a corrective action. The techniques used in the feed forward control are
forecasting, trend analysis and judging the performance from the standpoint of input versus
output.

Auditing is also a tool of control. There are several types of audits possible in a business
organization. Managerial audit deals with how effectively the plans are made and
implemented. It is addressed to the managerial performance to judge whether it was up to the
mark, and whether there are any lapses, failures or weaknesses. The operational audit deals
with an adherence to the rules and the policies of the management. It identifies whether the
operations of the organization are being carried out as per the managerial directives, rules and
policies. The financial audit addresses the business and financial transactions to find out
whether they are carried out with due regard to the accounting principles, practices and
statutes. It also examines whether all the transactions are covered completely and correctly for
the year.

With the advancement of information technology and computers, a variety of planning and
control tools have been developed. Planning and budgets models, financial models, risk
analysis models, PERT/CPM, operations research models are some of the examples of the
control tools.

Introduction to functional Information Systems:

Specific function:

Whatever its size, there are a number of functional areas common in all business organizations.
These are production, accounting, finance, marketing, administration and personnel (or

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human resource management). Each functional area will then contribute to the success of the
organization by having its own specific objectives and targets based on the corporate
objectives which have been established. Each main function has multiple sub-functions
contained in to it.

A functional information system is a system that provides detailed information for a specific
type of operations activity or related group of activities (sub-functions activities, as well as
summarized information for management control of 8uch activities. A functional information
system also supply nformati0n that is useful for another functional activity, for example,
information regarding the quantity of products manufactured from the production function is
needed for the marketing function in order to successfully sell them in the market or it may be
useful in fixing sales quota for the sales organization.

The backbone of an organisation’s information system is in its functional information

systems,since these process transactions and make possible various administrative activities
and provide information for management planning and control.Each functions has an
information system composed of multiple sub-system,all of which provide information for the
tasks within the function.

Functional Information Systems

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In this module, we will discuss the each functional information systems which are common in
every business. These systems are not separate and distinct, they connect interact and tie the
subsystems in the organization by way of information.

Computerizing functional information systems usually increases the efficiency of these

systems; they typically run faster and require less personnel and other business resources than
manual systems. The benefits from functional information systems are

 Reduced cost of functional activities.

 Increased speed with which functional tasks are completed.
 increased accuracy of information
 Increased customer service
 Increased data for decision making.

PRODUCTION INFORMATION SYSTEM

production is the functional area of an organization that is responsible for producing goods
which is gaining momentum because of rapidly shifting consumer tastes, increased global
pressures which are resulting in shorter product design cycle, quality control, just-in-time
manufacturing etc.

Production information systems support decision making for the allocation and planning of
production resources. Many information system have been developed to assist in product
design, facility design, quality control and assurance etc. these information systems use data
from the organization’s production inventory, vendor and marketing databases as well as
many external sources. The major decisions to be taken in the production department are
shown below.

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Model of production Information System

Output Subsystems of Production Is:

The production information system encompasses all of the applications of the computer in the
production area as a conceptual system.

Product Design:

It is the first step in production. In this step, the technical specifications of the product are
finalized. Recently product design activities are getting more automated through

computer software like CAD (Computer Aided Design) and CAE (Computer Aided
Engineering). These software used to design a production and before it goes to production to
test it for various features as safety, reliability, ease of production and use, etc.

Facility Design:

This is concerned with creation of facilities to manufacture the designed product in terms of
plant, machinery building, layout, etc. Computers can he used to design plant layout- using
mathematical models and simulators. These layout algorithms may construct the layout as per
the requirements.

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Production:
It is the process of making new products from raw-materials as per design specifications. The
production subsystem measures the process in terms of time-tracking the work flow from one
step to the next.

Unless other types of production, the discrete type of production is used widespread. In this
type of production, group of products produced together. Here, when production of one
product is finished, and a different product is started in the same machine which is set up or
modified to produce the product. Discrete production processes offer the greater challenge to
the information system. The master production schedule establishes the qualities and
production timings for end products. This schedule yields priority and capacity requirement
information.

Materials requirements planning (MRP) permits companies to effectively use computers to

establish a detailed requirements and priority plan for materials, which in term is used,
determine detailed capacity requirements in terms of labour hours, machine hours, and so on.

Computer Aided Manufacturing (CAM) is the broad terms that include any use of computers in
production operation.CAM can monitor the production processes in continuous or discrete
manufacturing operations. Numeric controlled machines (CNC) can be used to control the
manufacturing process as per a defined sequence of operations.
Quality Control/ Quality Assurance:

It relates to activities that ensure that the final product is of a required quality. Quality control
(QC) is concerned with detecting existing quality. Assurance (QA) is concerned with the
prevention of future quality problems. In both the cases,
computers can be used to note the deviations and automatically carrying out the production.
In its fullest extent, CIM integrates the physical production system and CBIS.(Computer Based
Information System).

Input Subsystem of Production is:

The information required for production decisions comes from various data sources as
follows:

Production data:

By using terminals on the shop floor, data on production processes can be quickly gathered
and processed. This data is used in every respect of production control.

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Inventory Data:Includes invention of raw-materials, goods in progress, finished goods. The
Knowledge of inventory data is critical as it may shut down production leading to losses, if
inventory is running out-of-stock.

Vendor Data:

Vendor data show sources of raw materials. This data is maintained by purchase department.
The production personnel should also be aware of the origins of the materials including new
items offered by the vendors.

Marketing Data:

Marketing output is feedback information for the manufacturing department marketing

specifies what is required, only then it is manufactured. Thus, it is important to integrate the
two.
Industrial Engineering Data:

This subsystem offers information related to productivity improvement aspects of production.

External Data:
The external data offers the knowledge of raw materials prices and 1abour availability. The
likelihood of price rise of raw materials, will force production manager to stock up the
materials before that happens. Also the like hood of labour problem in near future may force
him to reschedule his production plans.

Marketing Information System:

Every organization must organize a rich flow of information to its marketing managers. A
marketing system consists of people, equipment, and procedures to gathers. Sort, analyze,
evaluate and distribute needed, timely and accurate information to marketing decision
makers. The role of the marketing information system is to assess the manager’s information
needs, develop the needed information, and distribute that information in a timely fashion.

Marketing is concerned with identifying the need and wants of the customers and effectively
offer goods and services to meet. Those needs and wants through effective price as well as
promote and distribute those goods and services. In this process the marketing executive
satisfy the customers needs and with their satisfaction.

The input subsystems of marketing information system are

internal records system
Marketing intelligence system

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Marketing Research system
marketing decision support and analysis system.

These subsystems under the marketing information system consists of product plan, price
plan, place plan promotion plan.

Output Subsystems of Marketing Information System:

All of the products and services that are offered by the marketing function are referred to as
marketing mix, which consists of components of product, price, place and promotion. Each
output subsystem provides information about its part of the mix.

Picture

Product Planning:

From the market research data, what products would be likely demanded by the market is
planned. Product planning is a very complex and the success of failure or a product is
determined by quality, price, image, advertisement, strength of sales force, etc.

Price Planning:

How much to charge the product is concerned with ‘pricing’. The organization may follow
cost-based or demand-based pricing method. The cost-based pricing determined by adding a
desired markup to the cost of manufacturing the product. This approach is cautions and there
is a chance that the customer would have paid more. Accounting information system and
historical database system can provide accurate cost data and makes it an easy task for the
pricing subsystem.

Place Planning:

This is concerned with how the product is distributed across geographical areas. Since the
company appoints and maintain a distribution on channel to distribute its product. The place
system consists of supplier (supplier of raw-materials) manufacturer, wholesaler retailer and
consumer. Materials flow originates with the supp1ier and ends with the consumer. The
money flow is just the reverse and an information flow is two-way that connects participation.

A place system that permits information to flow freely among many firms provides an edge
over competitive systems without that capability. A capability called Electronic Data Interchange
(EDI) allows firms to establish electronic links with other organizations. EDI is excellent for

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achieving competitive advantage, and a conceptual system that causes it to happen is the place
subsystem.

Promotion Planning:

Promotion is concerned with increasing product awareness among various consumer

segments. It provides information about the firm’s advertising and personnel selling activities.

Personnel selling involves selling the products through the company’s sales force. Computer
information system can be applied salesperson communication. With the help of laptop
computers, salesperson, can query the data base to answer questions pertaining to product
availability, price, shipping status etc. Also enter sales order data in to the order entry system
and submit call report that provide vital information to the control managers. Computerizing
personal selling information system enables salespersons to do their job better, the company
increase its sales, and the consumer receive improved service.

Advertising is a creative area where multimedia and Graphics can help. Mathematical models
are available for use in making advertising media decisions-but none has met with success.

Database:
The data that is used by the output subsystems come from the marketing database. Some of
the data in the database is unique to the marketing function, but much is shared with other
functional areas.

Input Subsystems:

The much needed marketing information is developed the input subsystems. They are as
follows:

Internal Records:

Marketing managers relay on internal reports on orders sales, prices, costs, inventory levels,
receivables, payables, and on. By analyzing this Information, they can spot important
opportunities and problems.

Marketing Intelligence Data:

Whereas the internal records system supplies results data, the marketing intelligence system
supplies happenings data. A marketing intelligence system is a set of procedures and sources
used by managers to obtain everyday information about development in the marketing

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environment. Most of the data is collected in an unstructured manner, through word of month
or by observation of statistics in the media or other database services.

Marketing Research Data:

It is an activity responsible for the systematic design. Collection analysis and reporting of
consumer and market related data that can support marketing decisions. The data is gathered
through personal interviews, surveys, questionnaires, etc. Statistical packages can be
effectively applied to ana1yse marketing trends and generate various kinds of outputs
information (Graphics).

Marketing Decision Support Data:

It is a coordinated collection of data, systems, tools and techniques with supporting software
and hardware by which an organization gathers and interprets relevant information from
business and environment and turns it into a basis for marketing action.

Accounting Information System:

Accounting is the process of identifying, measuring and communicating economic information

to permit informed judgements and decisions by users of the information.
Accounting information system is a financial transaction based information system as it deals
with money in an enterprise that is taking place in the course of day-to-day operations of the
business enterprise. In the past, accounting information systems were designed primarily for
providing reports to government authorities (statutory reports) and investors. Very little
information was generated for managerial decision making. The focus of accounting
information has changed and now it also focuses more on generation of information for use in
managerial decision making process.

Characteristics of Accounting Information System:

Accounting information system deals with transactions which are financial in nature and can
be expressed in terms of money.

Accounting information system(AIS)caters to the information needs of both eternal and

internal users. The external users are customers, vendors, shareholders, investors, statutory
authorities, stock exchanges, etc. The internal users are the managers at various levels of the
organization who make use of accounting information, both for planning and control.

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1.It is quite simple and well —structured information system. The principles and procedures
involved in processing of accounting data are defined by professional bodies like Institute of
Chartered Accountants of India.

2.The AIS use mainly the historical data but may also include future data in the form of
budgets and forecasts.

3.The source of data is mainly internal to the enterprise and thus, database are well-defined
and integrated and controlled
4.AIS are subject to greater degree of risk of security and are more prove to computer crimes.
Therefore, there is a need for greater control over a accounting information system.

Components of AIS:

The AIS, as many other systems, consists of four basic systems, namely, input, process, output
and control. The input to the AIS consists mainly of the transaction data. In addition input data
also include the status information regarding different entities such as customers, vendors,
employees, assets, etc. The processing of accounting data is done in different ways The four
basic ways of processing accounting data are classification, comparison, aggregation and
calculation.

The output of AIS may consist of

1. Financial statements such as, Income statements, Balance Sheet and statement of
changes in financial position.

2. .Management reports such as debtors, ageing report, financial ratios, expense analysis
reports, etc.

3. Other output documents like customer invoice, materials purchase order, pay cheques,
etc.

AIS is by itself one of the control systems in a business enterprise. It has a control
subsystem for control over itself as well. Exercised by both the external and internal factors.
The generally accepted principles of accounting, accounting standards and other guidelines
issued by professional and statutory bodies regarding treatment of various economic
events constitute the external controls. The internal controls are established by the
management to ensure quality and security of information. Various components of AIS and
their interrelationships are represented in Exhibit.

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FINANCIAL INFORMATION SYSTEM:

Finance function is responsible for overall financial planning and the raising of capital. The
financial information system has a significant impact on other information systems when one
considers that the ultimate common denominator of many operating decisions is finance.

Output of Financial Information System:

Forecasting: It prepares the projections of activity of the firm in the future. It is based on
forecasts submitted by each functional area and external data. It shows the estimated sources
and amounts of cash flowing into or out of the firm .It shows when the firm is likely to have a
cash surplus or deficit. Various financial modeling packages are available which provide
simulation and what if features to determine forecasting.

Funds Management:

It is to determine the flow of money into and out of the firm. If the company is unable to meet
its obligations, the finance area must decide how to raise the needed funds, e.g. getting a loan,
issuing bonds/ equity. The master schedule that combines the financial forecast with income
and disbursements related to external sources is often called the financial plan. This plan can

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be prepared using some high tech tool such as Monte Carlo Simulation.

Auditing and Control:

An auditing is an inspection that determines whether something is working according to

organizational guidelines, or as the workers claim to have done. Auditing verifies the accuracy
of the company’s financial accounting records .Deviations found needs controls.

Model of Financial Information System.

Input Subsystem:

Transaction Data:

It is the base for any output or analysis. This data includes the transactions of revenues and
expenses incurred from each functional area. This data is captured through Transaction
Processing System.

Forecasting Data: For structured planning, a company needs forecasting data from each
functional area, which can be used to compare the actual transactions with the anticipated as
per the forecast. This is also made available through TPS.

Financial Intelligence Data:

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The firm needs to gather data from the financial community-like banks,governments,stock
markets ,etc.This data helps to understand the nation’s economy and helps in analyzing the
trends that may affect the company economy.This data from the national or international
environment can be gathered through on-line databases available through various vendors or
directly through Internet services.

Strategic Plans:

The Strategic plan is an important indicator and measurement scale for any kind of financial
information as it charts the future of the company,e.g.if an organisation’s goal is to increase
profits by 30%,that must be reflected in the financial plan.

Personnel Information System:

Personnel Information System (PIS) is a staff function that supports the activities of the firm’s
line functions. The functions carried out by personnel administration generally impact all.
other functional areas of an organization.

For many years, top management placed little emphasis on the PIS. However, government
legislations. Trade-union’s bargains etc. aimed at ensuring equality in firm’s personnel
practices, prompted top management to give the PIS the attention that it deserved. Enjoying its
new status, the PIS took advantage of microcomputer technology. Much of the PIS databases
contained within the central computers and can be downloadable to microcomputers.

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Output Subsystem of Pis:

Organisational Resource Planning:

It provides proper acquisition and allocation of the resources of manpower to the required
areas of work.The smooth functioning of any organizational activity is based on a successful
availability and utilization of personnel.

Organisational Management:

It provides means to evaluate and control the human resource performance. Suitable training
and other needs must be fulfilled in time to ensure quality of performance.

Payroll and Administration:

This is one of the basic requirements of any employee. Proper handling of this function is
provided by personnel information system.

Input Data of Pis:

Transactional Data:

Transaction processing data like employee selection, enrollment and daily performance details
are the transactions that must be available for any further output generation.
Functional Plans:

Unless the plans for each functional area are intimated to personnel department, no further
planning for recruitment or task allocation can be done.
External Data:

Personnel department must be aware of the competition, market pay patterns, government
and labour laws, etc. This helps in fulfilling the statutory requirements as also the needs of
their employees.

Computer : Hardware and Software:

Hardware

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Processors:

The brain of the computer is the CPU. It fetches instructions from memory and executes them.
The basic cycle of every CPU is to fetch the first instruction from memory, decode it to
determine its type and operands. Execute it, and then fetch, decode, and execute subsequent
instructions. In this way, programs are carried out.

Memory

The second major component in any computer is the memory. Ideally, a memory should be
extremely fast.

I/O Devices:

Memory is not only resource that the operating system must manage. I/O devices also interact
heavily with the operating system. I/O devices generally consist of two parts: a controller and
the device itself. The controller is a chip or a set of chips on a plug-in board that physically
controls the device. It accepts commands from the operating system. for example, to read data
from the device, and carries them out.

In many cases, the actual control of the device is very complicated and detailed, so it is the job
of the controller to present a simpler interface to the operating system.

Hardware is a comprehensive term for all of the physical parts of a computer, as distinguished
from the data it contains or operates on, and the software that provides instructions for the
hardware to accomplish tasks. The boundary between hardware and software is slightly
blurry - firmware is software that is "built-in" to the hardware, but such firmware is usually
the province of computer programmers and computer engineers in any case and not an issue
that computer users need to concern themselves with.

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A typical computer (Personal Computer, PC) contains in a desktop or tower case the following
parts:

 Motherboard which holds the CPU, main memory and other parts, and has slots for
expansion cards
 power supply - a case that holds a transformer, voltage control and fan
 storage controllers, of IDE, SCSI or other type, that control hard disk , floppy disk, CD-
ROM and other drives; the controllers sit directly on the motherboard (on-board) or on
expansion cards
 graphics controller that produces the output for the monitor
 the hard disk, floppy disk and other drives for mass storage
 interface controllers (parallel, serial, USB, Firewire) to connect the computer to external
peripheral devices such as printers or scanners

A computer system unit contains many parts.

• Motherboard - the main circuit board of a microcomputer. It is also known as the main
board or system board.

• CPU - the central electronic chip that determines the processing power of the computer.

• Memory - part of the computer that temporarily stores applications, documents, and
stem operating information.

• Expansion Slots - appear on the motherboard. They are sockets into which adapters
are connected.

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 • Ports and Connectors - a connector located on the motherboard or on a separate
adapter.

• Bays - a space inside the computer case where a hard drive, floppy drive or CD-ROM
drive sits

• Power Supply - A power supply changes normal household electricity into electricity
that a computer can use.

• Sound Components - lets a computer play and record high quality sound.

• It is quite well known that the working of the computer is pulled by hardware and
software. One can define computer hardware as the electronic, magnetic, and electric
devices that carry out the computing functions. Hardware is the physical components
of the computer like microprocessor, hard disks, RAM, and motherboard. The
peripheral devices such as monitor, mouse, keyboard, printer, and speakers can also be
included in the list of hardware parts. The programs that run on the computers like
Windows, C++, and Photoshop are the software parts of the computer. A good example
for an easy understanding of hardware-software definition is music CDs. The actual
compact disk is the hardware, while the songs and music in the CD are the software
parts.

• There is another way to define computer hardware. Hardware devices are the executors
of the commands provided by software applications. For example, let us see what
happens when you click the print button of the web browsing software. The software
application provides a command to the processor, which is the central part of all
computer hardware. Processor in turn checks for an attached printer. If the printer is
ready, the software will get a positive response from the processor. Then the software
application provides instruction to the printer via the processor to print the web page.
In that sense, hardware parts are the foot soldiers and software applications are the
commanders in the digital operation that takes place within a computer.

SOFTWARE CONCEPTS

TYPES OF SOFTWARE –The term software refers to the set of computer programs,
procedures and associated documents, which describe the programs and how they are to be
used.

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 Software package It is a group of programs which solve a specific problem or perform a
specific task e.g. MS Office, Corel draw, etc. a word processing package is used to manipulate
file related tasks (may contain programs for text editing, text formatting, spell check) etc

System software: It is a set of one or more programs designed to control the operation and
extend the processing capability of a computer system. Some of the most commonly known
types of computer system software’s are;

- Operating system
- Compilers , Interpreters and Assemblers
- Communication Software
- Utility Programs
-
Application software: It is a set of one or more programs designed to solve a specific problem,
or do a specific task. Some of the most commonly used application software are; payroll
system, Ms Office, database management, airline reservation system ,Graphics
S/W,spreadsheet S/W etc.

Utility software: The collection of programs that forms part of every computer and provides a
variety of generally useful functions, including file copying and deleting, text preparation,
formatting and cross- referencing.

OTHER REFERENCES

Software -- General Information

Computer software provides instruction that tell the computer how to operate.

1. Software are also called programs.

2. Programs are usually created using other software called programming
languages.

There are two (2) main types of software

1. System Software
o Used by the computer to accomplish a task.
o What system software does:
 controls the internal function of the computer
 controls other devices connected to the CPU

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 2. Application Software
o Used by people to accomplish a specific task.
o Some common kinds of application software
 Word Processor software
 Database software
 Spreadsheet software
 Games
 Web Page Browsers

Kinds of Software

1. Public Domain Software

o Has no copyright - no one owns the right to control who can make copies of the
software.
o Free to use or make copies of.
o Can be copied, used in other programs, or changed by anyone.
2. Freeware
o Has a copyright - someone owns the right to determine who can make copies of
the software.
o Free to use and make copies of.
o Can only give away exact copies of the software.
o Can not be changed or used in another program without the copyright holder's
permission.
3. Shareware
o Has a copyright.
o Allowed to use the software before paying for it.
 Can be a demo - which limits some major features like the Save command.
 Can set an amount of time you can use the software.
 Can trust that you will pay for it if you like the software.
o Can only give away exact copies of the software.
o Can not be changed or used in another program without the copyright holder's
permission.

4. Commercial Software
o Has the most resistive copyright.
o Have to buy the software before you can use it.
o Can usually make one copy of the software as a backup copy.
 A backup copy is used in case something goes wrong with the original
software.
 Can not give away or sell the backup copy.

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 o Can not copy, look at the program's code, change, or use the software in another
program without the copyright holder's permission.
o Commercial Software is the best software in the world.

System Software:

System software is a type of program that acts like a conductor in an orchestra. It directs all
the activities and sets all the rules for how the hardware and software work together. MS DOS
and Microsoft Windows are examples of system software or operating system software.

Some System Software is built into the computer.

1. ROM chips and BIOS.

2. Helps to setup the computer and start it.

Operating Systems

1. The operating system is usually located on a disk.

o Can be on either the hard disk drive, a floppy disk, or CD-ROM disk.
o Must be loaded into RAM before it can be used.

2. Used by the computer's hardware to work with its parts.

o Tells the computer how to:
 display information on the screen.
 use a printer.
 store information on a secondary storage device.
o The system software that controls peripherals are called drivers.

3. An operating system works with application software.

o Does basic tasks, like printing a document or saving a file
o The operating system starts (launches) the application software so that it can be
used.

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User Interfaces

1. The user interface is how the computer's operating system presents information to the
user and the user gives instructions (commands) to the computer.

2. There are two kinds of User Interfaces

o Text Interface
 Presents information to the user in the form of text.
 Have to type in commands or select commands from a menu displayed as
text on the screen.
 Hard to use or learn, because the user must memorize and type in
commands.
 Examples:
 MS-Dos (MicroSoft Disk Operating System)
 ProDos (Professional Disk Operating System)
 Many of the Text Interfaces had shells placed over them.
 A shell was more of a Graphic User Interface.
 Made using the Text Interface easier to use.
o Graphic User Interface (GUI)
 Presents information to the use in the form of pull-down menus and icons.
 Pull-down menus the user clicks on to display the menu
 Icons are small pictures that stand for something, like a file,
volume, trash, or program
 The user gives commands to the computer by selecting items from a menu
or by clicking on an icon when using a pointing device.
 GUIs are easy to learn and use
 Examples:
 Windows 98
 Windows 2000
 Mac OS

Application Software

Application software programs work with the operating system software to help you use
your computer to do specific types of work such as word processing to type a letter.

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 1. Used by people to solve general problems
 Can be used to do more than one thing - adapted to a wide variety of tasks
 Some common tasks done by general purpose application software
 Planning
 Writing
 Record keeping
 Calculating
 Communicating
 Drawing
 Painting
 What can be done with general purpose application software is only
limited by the imagination of the user.

2. Examples of general purpose application software

 Word Processing Software

 Database Software

 Spreadsheet Software

 Desktop Publishing Software

 Paint and Draw Software

Data representation in computers:

SYSTEM CONFIGURATION

A contemporary computer system consists of a central processing unit, primary storage

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secondary storage, input devices, output devices, and communications devices. The central
processing unit manipulates raw data into a more useful form and controls the other parts of
the computer system. Primary storage temporarily stores data and program instructions
during processing, while secondary
storage devices (magnetic and optical disks, magnetic tape) store data and programs when
they are not being used in processing. Input devices, such as keyboards or the computer
‚mouse‛, convert data and instructions into electronic form for input into the computer.
Output devices, such as printers and video display terminals, and convert electronic data
produced by the computer system and display it in a form that people can understand.
Communications devices provide connections between the computer and communications
networks. Buses are paths for transmitting data and signals between the various parts of the
computer system.

BITS AND BYTES: HOW COMPUTERS REPRESENT DATA

In order for information to flow through a computer System and be in a form suitable for
processing, all symbols, pictures, or words must be reduced to a string of binary digits.
A binary digit is called a bit and represents either a zero One. In the computer, presence of an
electronic or magnetic signal means one and its absence signifies zero.

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Digital computers operate directly with binary digits,either singly or strung together to form
bytes.A string of eight bits that the computer stores as a unit is c alled a byte.Each byte can be
used to store a decimal number,a symbol, a character,or part of a picture.

Each position in a decimal number has a certain value. Any number in the decimal
system(base 10)can be reduced to a binary number.The binary number system(base 2)can
express any number as a power of the number 2.By using a binary number system a computer
can express all numbers as groups of zeroes and ones.True binary cannot be used by7 a
computer because,in addition to representing numbers , a computer must represent alphabetic
characters and many other symbols used in natural language, like $ and &.This requirement
led manufactures of computer hardware to develop standard binary codes.

There are two common codes:EBCDIC and ASCII .The first is the Extended Binary coded
Decimal Interchange Code.This binary code,developed by IBM in the 1950s,represents every
number,alphabetic character, or special character with 8 bits.EBCDIC can be used to code up to
256 different characters in one byte(2 to the eight power equals 256).

ASII ,which stands for the American Standard code for information interchange,was
developed by the American National Standards institute(ANSI)to provide a standard code
that could be used by many different manufactures in order to make machinery
compatible.ASCII was originally designed as a 7-bit code,but most computers use 8-bit
versions of ASCII.EBCDIC is used in IBM and other mainframe computers,whereas ASCII is
used in data transmission,microcomputers,and some larger computers.

In actual use,EBCDIC and ASCII also contain an extra ninth Parity or check bit.Bits can be
accidentially or mistakenly changed from on to off creating errors,when data are transferred
from one hardware device to another or during environmental disturbances.Parity bits are
used to assist in detecting these errors.Computers are built as either even parity or odd
parity.Assuming an even-parity machine,the computer expects the number of bits turned on in
a byte always to be even.(If the machine were designed as odd-parity machine,the number of
bits turned on would always be odd.)When the number of bits in an even-parity machine in a
byte is even,the parity bit is turned off.If the number of bits in an even-parity machine in a
byte is odd,the parity bit is turned on to make the total number of ‚on‛ bits even.All computer
hardware contains automatic parity checking to ensure the stability of data over time.

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How can a computer represent a picture?

The computer stores a picture by creating a grid overlay of the picture.In this grid or
matrix,the computer measures the light or color in each box or cell,called a pixel(picture
element).The computer then stores this information on each pixel.A high-resolution computer
terminal has a 1024*768 VGA standard grid,creating more than 700,000 pixels.Whether
pictures or text are stored,it is through this process of reduction that a modern computer is
able to operate in a complex environment.

TIME AND SIZE IN THE COMPUTER WORLD

Table presents some key levels of time and size that are useful in describing the speed and
capacity of modern computer systems.
Processing Speed
Modern secondary storage devices generally operate at the speeds of milliseconds (thousands
of a second). For instance, a typical microcomputer could find student record on a magnetic
disk in about 15 milliseconds. It would take many seconds to find name on a much slower tape
system. A middle-range microcomputer can execute approximately 10 million program
instructions per second (200 MIPS).At this speed, the central processor is operating at speeds
of nanoseconds(billionths of a second),or one instruction for every 15 nanoseconds.

Storage/Memory Size :
Size, like speed, is an important consideration in a system. Information is stored in a computer
in the form of 0s and 1s (binary digits, or bits, which are strung together to form bytes. One
byte can be used to store one character, like the letter A. A thousand bytes (actually 1024
storage positions) are called a kilobyte. Small micro computers used to have internal primary
memories of 640 kilobytes. A large microcomputer today can store 32 megabytes of
information in primary memory. Each megabyte is approximately one million bytes. This
means, theoretically, that the machine can store up to 32 million alphabetic letters or numbers.
Modern secondary storage devices, such as hard disk drives in a micro computer or disk packs
in a large mainframe, store millions of bytes of information.
A Microcomputer may have a 500-megabyte disk, whereas a large mainframe may have many
disk drives each capable of holding 8 gigabytes. A gigabyte is approximately one billion bytes.
Some large organizations like the Social Security Administration or the Internal Revenue
Service, have a total storage capacity adding up all their disk drive capacities measured in
trillions of bytes, And if all of their records w ere added together, including capacities those

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stored on punched cards, paper records, and tapes, the total would be at the terabyte
(thousands of billions of bytes)level of information storage.

BATCH AND ON-LINE INPUT AND PROCESSING:

The manner in which data are input into the computer affects how the data can be processed.
Information systems collect and process information in one of two way: through batch or
through on-line processing. In batch processing, transactions such as orders or payroll time
cards are accumulated and stored in a group or batch until the time when, because of some
reporting cycle, it is efficient or necessary to process them. This was the only method of
processing until the early 1960s, and it is still used today in older systems or some systems
with massive volumes of transactions. In on-line processing, which is now very common, the
user enters transactions into a device that is directly connected to the computer system. The
transactions are usually processed immediately.

The demands of the business determine the type of processing. If the user needs periodic or
occasional reports or output, as in payroll or end-of-the-year reports, batch processing is most
efficient. If the user needs immediate information and processing, as in an airline or hotel
reservation system, then the system should use online processing.

we compares batch and on-line processing. Batch systems often use tape as a storage medium,
whereas on-line processing systems use disk storage, which permits immediate access to
specific items of information. In batch systems, transactions are accumulated in a transaction
file, which contains all the transactions for a particular time period. Periodically this file is
used to update a master file, which contains permanent information on entities (An example is
a payroll master file with employee earnings and deductions data. It is updated with weekly
time-card transactions.) Adding the transaction data to the existing master file creates a new
master file. In on-line processing, transactions are entered into the system immediately and the
system usually responds immediately. The master file is updated continually. In on-line
processing, there is a direct connection to the computer for input and output.

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 UNIT-V

Decision Support System – definition – examples of DSS – components – building DSS – Group
Decision Support System – GDSS tools- Role of DGSS – Executive System. Role developing DSS –
benefits – examples.

Decision Support Systems (DSS):

In the 1970s, a number of companies began developing information systems that were
quite different from traditional MIS systems. These new systems were smaller. They were interactive
and were designed to help end users utilize data and models to discuss and decide semi structured and
unstructured problems. By the late 1980s, these early to assist individual decision making were
extended to groups and entire organizations.

Definition:

These systems are called decision-support systems(DSS).Decision-support systems(DSS)

assist management decision making by combining data, sophisticated analytical models, and user-
friendly software into a single powerful system that can support semi structured or unstructured
decision making. The DSS is under user control from early inception to final implementation and daily
use.

In the below diagram, the relationships between DSS and organization’s existing TPS,
KWS, and MIS are left deliberately vague. In some cases, DSS are linked closely to existing corporate

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information flows. Often, however, DSS are isolated from major organizational information
systems.DSS tend to be stand-alone systems, developed by end-user divisions or groups not under
central IS control, although it is obviously better if they are integrated into organizational systems
when this is a functional requirement.

Differences between DSS and MIS:

Dimension DSS MIS

Philosophy Provide integrated tools, Provide structured

data, models , and language information to end users
to users

System analysis Establish what tools are used Identify information

in the decision process requirements

Design Iterative Process Deliver system based on

frozen requirements

DSS capabilities:

 Representations : Conceptualizations of information used in making decisions, such as graphs,

charts, lists, reports, and symbols to control operations.

 Operations: Logical and mathematical manipulations of data, such as gathering information,

generating lists, preparing reports, assigning risks and values, generating statistics, and
simulating alternatives.

 Memory aids: Databases, views of data, work spaces, libraries, links among work spaces and
libraries, and other capabilities to refresh and update memory.

 Control aids: Capabilities that allow the user to control the activities of the DSS. They include a
software language permitting user control of representations, operations, and memory which
features menus, function keys, conventions, training, ‚help: commands, and tutorials.

Examples of DSS Applications:

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 There are many ways in which DSS can be used to support decision making. Below table lists
example of DSS in well-known American organizations. To illustrate the range of capabilities of
DSS, we will now describe some recent DSS applications.

American Airlines Price and route selection

Champlin Petroleum Corporate planning and forecasting

Equico Capital Corporation Investment evaluation

Frito – Lay, Inc. Price, advertising , and promotion section

General Dynamics Price evaluation

Juniper Lumber Production optimization

Kmart Price evaluation

National Gypsum Corporate planning and forecasting

Southern Railway Train dispatching and routing

Texas Oil and Gas Corporation Evaluation of potential drilling sites

United Airlines Flight scheduling

U.S. Department of Defense Defense contract analysis

The Egyptian Cabinet DSS:

The Egyptian Cabinet is composed of the Prime Minister, thirty-two other ministers,
and four ministerial-level committees with their staffs. Decision making here is, by its very nature,
strategic because it involves questions of survival: balance of payments, deficit management, public
sector performance, economic growth, and national defense.

Decision making at these high levels of governments, or corporations, is often

portrayed as a relational decision process. But in fact, decision making involves managing issues
that are forced on decision makers with varying and shifting priorities. Issues circulate
continuously; they enter and exit through participants and are resolved in the sense that they
dissolve or go away or are overtaken by other issues. The issues are themselves complex, poorly

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 defined, interdependent, and related to many features of society. Information is voluminous but
unreliable and qualitative.

In 1985 ,the Egyptian Cabinet developed a three-person Information and Decision

Support Center(IDSC)to assist its own decision-making process.Today150 people work full time
providing DSS services to the Cabinet on critical issues. The IDSC system is based upon a network
of 110 microcomputers connected to a mainframe. Software includes standard desktop packages
such as dBase III for database management, Lotus 1-2-3 spreadsheet software, and FOCUS, a
fourth-generation language and application generator, all of which have been fully converted to
Arabic form. The electronic mail system is bilingual (Arabic/English).

One of the first uses of IDSC was to develop a new tariff structure to replace an
inconsistent and complex structure that was thought to be impeding economic growth. The goal of
the policy set forth by the Cabinet was to create a consistent, simple tariff structure; increase
revenues to the treasury; and promote economic growth without harming poor citizens. A micro
computer-based DSS model was built of the proposed new tariff structure, using a prototyping
methodology.

The new policy activated many opposing groups. The Ministry of Industry, hoping to
increase local production of auto parts, supported new tariffs on imported auto parts. This was
supported as well by the Ministry of Economy, which supported local production. But the policy
was opposed by the Ministry of Finance because it would reduce customs revenue.

The DSS was walked around, back and forth, from one ministry to another, marking
adjustments to the proposed tariffs, playing ‚what-if‛ games to see the impact of tariff changes on
revenue and local employment. After one month of intensive effort, agreement was reached on the
new tariff policy. Builders of the DSS felt the system reduced conflict by clarifying the trade-offs
and potential impacts of tariff changes. While early estimates of higher tariffs claimed $250 million
in increased revenues would result, the DSS predicted $25 million. By 1987,the actual increased
revenue was $28 million.

The Egyptian Cabinet’s DSS illustrates the idea that a DSS is not just an application,
but a generalized capability for addressing decision maker’s needs. Unlike an MIS system, DSS do
not simply involve a routine, steady flow of data, but instead can be flexibility responsive to new
situations by using data and analytic models (even spreadsheets) to work through the
consequences of decisions and assumptions.

Components of DSS:

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 Review first figures again, It shows that a decision-support system has three basic
components – a database, a model base and the DSS software system.

The DSS database is a collection of current or historical data from a number of application or
groups, organized for easy access by a range of applications. The DSS database management
system protects the integrity of the data while controlling the processing that keeps the data
current; it also saves historical data.DSS do not create or update data, for that is not their purpose.
Rather, they use live organizational data (from such systems as production and sales) so that
individuals and groups are able to make decisions based upon actual conditions.

Most DSS do not have direct access to organizational data for two reasons. First, the
organization will want to protect the data from accidental or inappropriate changes. In Addition, it
is a slow and expensive process for the DSS to search through large corporate databases. The
process affects not only the performance of the DSS but also all the other systems using the
database. Instead, DSS usually use data that have been extracted from relevant databases (internal
and external) and stored specifically for use by the DSS.

A model base is a collection of mathematical and analytical models that can easily be
made accessible to the DSS user. A model is an abstract representation that illustrates the
components or relationships of a phenomenon. A model can be a physical model(such as a model
airplane), a mathematical model(such as an equation), or a verbal model(such as a description of a
procedure to write up an order).Each decision-support system is built for a specific set of purposes
and will make different collections of models available depending upon those purposes.

Perhaps the most common models available in model bases are libraries of statistical
models. Such libraries usually contain the full range of expected statistical functions including
means, medians, deviations, and scatter plots. Statistical modeling software can be used to help
establish relationships, such as relating product sales to differences in age, income, or other factors
between communities.

Forecasting models are often used to forecast sales. The user of this type of model might
supply a range of historical data to project future conditions and the sales that might result from
those conditions. The decision maker could then vary those future conditions(entering, for example,
a rise in raw materials costs or the entry of a new, low-priced competitor in the market)to determine
how these new conditions might affect sales. Companies often use this software to attempt to
predict the actions of competitors. Model libraries exist for specific functions, such as financial and
risk analysis models.

Among the most widely used models are sensitivity analysis models that ask ‚what-if‛
questions repeatedly to determine the impact of changes in one or more factors on

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 outcomes.‛What-if‛ analysis – working forward from known or assumed conditions – allows the
user to vary certain values to test results in order to better predict outcomes if changes occur in
those values.

The third component of DSS is the DSS software system. The DSS software system permits
easy interaction between the users of the system and the DSS database and model base. The DSS
software system manages the creation, storage, and retrieval of models in the model base and
integrates them with the data in the DSS database.

The DSS software system also provides a graphic, easy to use, flexible user interface that
supports the dialogue between the user and the DSS.DSS users are usually corporate executives or
managers, persons with well-developed working styles and individual preferences. Often they
have little or no computer experience and no patience for learning to use a complex tool, so the
interface must be relatively intuitive. In addition, what works for one may mot work for another?
Many executives, offered only one way of working (a way not to their liking) will simply not use
the system. In order to mimic a typical way of working, a good user interface should allow the
manager to move back and forth between activities at will.

BUILDING DSS:

Building a DSS is different from building a TPS MIS system. Developing TPS or MIS results in
systems that represent a response to a specific set of information needs. Development of DSS
systems focuses on identifying a problem and a set of capabilities that users consider helpful in
arriving at decisions about that problem. DSS generally use small amounts of data, do not need on –
line transaction data, involve a smaller number of important users, and tend to employ more
sophisticated analytic models than other systems. Because DSS are customized to specific users and
specific classes of decisions, they require much greater user participation to develop. In addition,
they must be flexible and must evolve as the sophistication of users grows. Building DSS must
therefore use a changing, evolving method that is iterative. Iterative development utilizing
prototyping is recommended.

Factors in DSS Success and Failure

As experience with DSS has grown, a number of factors have been identified as
important to their success and failure. The success factors are not very different from those of MIS
and other systems. Several studies have noted that user training, involvement and experience; top
management’s support; length of use; and novelties of the application were the most important
factors in DSS success. Success is defined as perceived improvements in decision making and
overall satisfaction with the DSS ( Alavi and Joachimsthaler, 1992; Sanders and Courtney, 1985 ).
A smaller study of 34 DSS found that DSS orientation toward top management
(assistance with making important decisions) and return on investment are the most important
factors in the approval process for DSS (Meador and Keen, 1984; King, 1983). This important
finding highlights what organizations need support for upper management decision making, which

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 requires custom- built, flexible, and easy-to-use systems that address important organization
problems.

What is GDSS?

A group decision –support system (GDSS) is an interactive computer-based system to facilitate the
solution of unstructured problems by a set of decision makers working together as a group
(Desanctis and Galllupe, 1987). GDSS were developed in response to growing concern over the
quality and effectiveness of meetings. The underlying problems in group decision making have
been the explosion of decision maker meeting s, the growth length of those meetings, and the
increased number of attendees. Estimates on the amount of a manager’s time spent in meetings
range from35 to 70 percent.

Elements of GDSS:

1. Improved pre-planning, to make meetings more effective and efficient.

2. Increased participation, so that all attendees will be able to contribute fully even if the
number of attendees is large. Free riding (attending the meeting but not contributing) must also
be addressed.

3. Open, collaborative meeting atmosphere, in which attendees from various

organizational levels feel able to contribute freely. The lower-level attendees must be able to
participate without fear of being judged by their management; higher status participants must
be to participate without having their presence or ideas dominate the meeting and result in
unwanted conformity.

4. Criticism-free idea generation, enabling attendees to contribute without undue fear of

feeling personally criticized.

5. Evaluation objectivity, creating an atmosphere where an idea will be evaluated on its

merits rather than on the basis of the source of the idea.

6. Idea organization and evaluation, which require keeping the focus on the meeting
objectives, finding efficient ways to organize the many ideas that can be generated in a
brainstorming session, and evaluating those ideas not only on their merits but also within
appropriate time constraints.

7. Setting priorities and making decisions, which require finding ways to encompass the
thinking of all the attendees in making these judgments.

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 8. Documentation of meetings so that attendees will have as complete and organized a
record of the meeting as may be needed to continue the work of the project.

9. Access to external information, which will allow significant, factual disagreements to be

settled in a timely fashion, thus enabling the meeting to continue and be productive.

10. Preservation of ‚organizational memory‛, so that those who do not attend the meeting
can also work on the project .Often a project will include teams at different locations who will
need to understand the content of a meeting at only one of the affected sites.

GDSS SOFTWARE TOOLS:

Some of the features of the groupware tools for collaborative work can be used to
support group decision making. But GDSS are considered more explicitly decision-oriented and
task-oriented than groupware, as they focus on helping a group solve a problem or reach a
decision (Dennis et al., 1988). Groupware is considered more communication-oriented. Specific
GDSS software tools include the following.

 Electronic questionnaires aid the organizers in pre-meeting planning by identifying

issues of concern and by helping to insure that key planning information is not overlooked.
 Electronic brainstorming tools allow individuals simultaneously and anonymously to
contribute ideas on the topics of the meeting.
 Idea organizers facilitate the organized integration and synthesis of ideas generated
during brainstorming.
 Questionnaire tools support the facilitators and group leaders as they gather information
before and during the process of setting priorities.
 Tools for voting or setting priorities make available a range of methods from simple
voting, to ranking in order, to a range of weighted techniques for setting priorities or voting.
 Stakeholder identification and analyst tools use structured approaches to evaluate the
impact of an emerging proposal upon the organization, and to identify stakeholders and
evaluate the potential impact of those stakeholders upon the proposed project.
 Policy formation Tools provide structured support for developing agreement on the
wording of policy statements.
 Group dictionaries document group agreement on definitions of words and terms
central to the project.
Addition tools are available, such as group outlining and writing tools, software that stores
and reads project files, and software that allows the attendees to view internal operation al data
stored by the organization’s production computer systems.

EXECUTIVE SUPPORT SYSTEMS (ESS)

We have described how DSS and GDSS help managers make unstructured and
semi structured decision. Executive support system (ESS) also helps managers with
unstructured problems, focusing on the information needs of senior management. Combining

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 data from both internal and external sources, ESS create a generalized computing and
communications environment that can be focused and applied to a changing array of problems.
ESS help senior executives monitor organizational performance, track activities of competitors’
spot problem, identifies opportunities ad forecast trends.

THE ROLE OF ESS IN THE ORGANIZATION

Prior to ESS, it was common for executives to receive numerous fixed- format
reports, often hundreds of pages every month (or even every week). The first systems
developed specifically for executives in the early 1980s were mainframe systems designed to
replace that, delivering the same data to the executive in days rather than in weeks. Executives
had access to the same data, only it was on-line in the form of reports. Such systems were
known as senior management briefing books. Using a briefing book, executive usually could
drill down (move from a piece of summary data down to lower levels of detail). Briefing books
did not spread widely through the executive suites. The data that could be provided by briefing
books were limited and the briefing books were too inflexible.

By the late 1980s, ways were found to bring together data from throughout the organization and
allow the managers to select, access, and tailor them easily as needed. Today, an ESS is apt to
include a range of easy-to-use desktop analytical tools. Use of the systems has migrated down
several organizational levels so that the executive and his or her subordinates are able to look at
the same data in the same way.

Today’s systems try to avoid the problem of data overload so common in paper reports because
the data can be filtered or viewed in graphic format. Systems have maintained the ability to drill
down. However, with access to so much critical data, designers must be certain that any ESS
protects against altered data finding their way back to the originating system.

One limitation in ESS is that they use data from systems designed for very different purposes.
Often data that are critical to the senior executive are simply not there. For example, sales data
coming from an order entry transaction processing system are not linked to marketing
information, a linkage the executive would find useful. External data are now much more
available in many ESS systems. Executives need a wide range of external data, from current
stock market news to competitor information, industry trends, and even projected legislative
action. Through their ESS, many managers have access to news services, financial market
databases, economic information, and whatever other public data they may require.

ESS today includes tools for modeling and analysis. For example, many ESS use Lotus 1-2-3,
Excel, or other spreadsheets as the heart of their analytical tool base. With only a minimum of
experience, most managers find they can use these common software packages to create graphic
comparisons of data by time, region, product, price range, and so on. Costlier systems include
more sophisticated specialty analytical software.

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 ESS are increasingly being used by employees several levels below the senior executives. This
has solved the problem of members of executives’ staffs working from different data than the
executive, and this is one of the reasons use of these systems is spreading. Middle management
will use the same data in a somewhat different manner, focusing on their own area of
responsibility and emphasizing plan-versus-actual analysis (variances between forecasts and
actual results).

DEVELOPING ESS

ESS is executive system, and executives create special development problems.

Because executives ‘needs change so rapidly, most executive support systems are developed
through prototyping. A major difficult for developers is that high level executives expect
success the first time. Developers must be certain that the system will work before they
demonstrate it to the user. In addition, the initial system prototype must be one that the
executive can learn very rapidly. Finally, if the executive finds that the ESS offers no added
value he or she will reject it.

One area that merits special attention is the determination of executive information
requirements. ESS need to have some facility for environmental scanning. A key information
requirement of managers at the strategic level is the capability to detect signals of problems in
the organizational environment that indicate strategic threat and opportunities (wall et al.1992).
The ESS needs to be designed so that both external and internal sources of information can be
used for environmental scanning purposes. The critical success factor methodology for
determining information requirements is recommended for this purpose. Another area of
concern is providing the required data by ESS from many areas of the organization without
disrupting important operation systems. The window on Technology explores this issue.

Because ESS could potentially give top executive the capability of examining other
managers ‘work without their knowledge, there may be some resistance to ESS at lower levels
of the organization. Implementation of ESS should be carefully managed to neutralize such
opposition.

Cost justification presents a different type of problem with ESS. Since much of an
executive’s work is unstructured, how does one quantify benefits for a system that primarily
supports such unstructured work? An ESS is often justified in advance by the intuitive feeling
that it will pay for itself (Watson et al<1991). If ESS benefits can ever be quantified, it is only
after the system is operational.

BENEFITS OF ESS

How do executive support systems benefit manager? As we stated earlier, it is difficult at best to
cost-justify an executive support system. Nonetheless, interest in these systems is growing, so it
is essential to examine some of the potential benefits scholars have identified.

Much of the value of ESS is found in their flexibility. These systems put data and
tools in the hands of executives without addressing specific problems or imposing solutions.

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 Executives are free to shape the problems as they need, using the system as an extension of their
own thinking processes. These are not decision making systems; they are tools to aid the
executives in decision making.

The most visible benefit of ESS is their ability to analyze, compare and highlight trends.
The easy use of graphics allows the user to look at more data I less time with greater clarity and
insight than paper –based system can provide. In the past, executives obtained the same
information by taking up days and weeks of their staffs’ valuable time. By using ESS, those
staffs and the executives themselves are freed up for the more creative analysis and decision
making in their jobs. ESS capabilities for drilling down and highlighting trends may also
enhance the quality of such analysis and decision making (leidner and Elam, 1993-1994).

Executives are using ESS to monitor performance more successfully in their own
areas of responsibility. Some are also using these systems to monitor key performance
indicators. The timelines and availability of the data result in needed actions being identified
and taken earlier. Problems can be handled before they become too damaging; opportunities
can also be identified earlier as well.

ESS can and do change the workings of the organizations. Immediate access to so
much data allows executives to better monitor activities of lower units reporting to them. That
very monitoring ability often allows decision making to be decentralized and to take place at
lower operating levels. Executives are often willing to push decision making further down into
the organization as long as they can be assured that all is going well. ESS can enable them to get
that assurance. A well-designed ESS could dramatically improve management performance and
increase upper management’s span of control. We will close our examination of ESS by looking
at actual examples of ESS in use.

EXAMPLE OF ESS

To illustrate the various ways in which ESS can enhance management decision making, We
now describe three executive support system, one for private industry and two for the public
sector. These systems were developed for very different reasons and serve their organizations in
different ways.

Pratt and Whitney

Pratt and Whitney is a multibillion-dollar corporation located in East Hartford,

Connecticut, whose commercial engine Business (C.E.B) produces jet engines. The firm’s
executives view customer services and product performance as the heart of their business and
therefore the heart of their strategic plan extend their market share. Walt Dempsey, a member
of the company’s business management and planning department, launched a study to access
the information needs that would support their strategic plan. The study led to the purchase of
commander EIS, a leading ESS package from comshare. Commander EIS features colorful
presentations and a pictorial menu that can be learned intuitively, with variances and exception
highlighted in color. Users can access data with a touch screen, a mouse, or a keyboard and they

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 can zoom in for deeper levels of detail either by navigating on their own or by following
predefined paths.

Implementation began with a prototype built for the president of CEB,

Selwyn Berson. Commander EIS allows Berson to truck key quality and reliability measures for
each jet engine model by customer. The data are shown from the existing production systems
and provide information on reliability, spare engine and parts available, garding repair status
and can project how long repairs will take. Berson and others are able to drill down to
determine reasons for repairs on specific engines. They are also able to drill down to specific
data on service to an individual customer. Thus, CBE executives are able to determine where
quality improvements need to be made in terms of both customer service and engine quality.
CEB’s ESS is helping them to meet their strategic plan objectives. The system was originally
used by about 25 senior executives, although Pratt and Whitney expect the number of users to
grow to over 200 (‚The New Role,‛ January 1992).

The United States General Services Administration:

The General Services Administration (GSA) manages the vast real estate holdings of the
United States government. In a period of tight federal budget restraints and as part of Vice
President Gore’s ‚reinventing government‛ initiatives, the organization needed to find ways to
optimize the use of the government’s multibillion-dollar inventory of 16,000 properties worldwide.
Yet GSA managers facing this challenge had no system that would support them by making easily
available to them the 4 gigabytes of data stored in their computers. The data were available only in
old-fashioned printed reports and through slow, expensive custom programming. Analysis of the
data was nearly impossible. GSA’s response was GAMIS (Glenn Assert Management Information
System), an executive support system based primarily on Lotus Notes that literally puts the needed
data and analysis at the finger tips of the GSA’s nontechnical managers.

The main purpose of the system was to give management quick and easy views of the
organization’s assets. Managers now can easily use ad hoc queries and perform ‚what-if‛ analysis,
receiving the results on screen, in graphics format when desired. After indicating a specific office
building, for example, he user will be offered 13 choices of data on that building, such as who
occupies it, its financials, information on the congressional district it is in(if it is in the United
States),and even a scanned photograph of the building. The data can be accessed via geographic
information system (GIS) software from MapInfo Corp. Through this software interface, the user
begins with a national map and drills down into regional and city maps that show detail on
location and type of property. Another click of the mouse and the user will pull up all the data on
that piece of property. Users can limit the data at the outset, specifying, for example, that they want
to look only at Justice Department properties with more than 50,000 square feet of floor space. All
of the data are available to about 100 GSA employees in Washington, while about 50 employees in

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 each of the then regions have access to all of the data for their own region. Washington employees
also have available a database of commercial properties with rental space available.

With GAMIS, nontechnical managers can access and analyze gigabytes of information
that were formerly available only via printouts and custom programming. The system has received
high marks from many officials, including John Glenn, Democratic Senator from Ohio and long a
vocal critic of the GSA’s antiquated computer system. When Glenn first saw the system
demonstrated, he was reported to have been so impressed that the GSA named the system after
him. Observers have also praised the system because it was built from off-the-shelf software,
making it quick and inexpensive to develop, providing high returns with minimum investments.

New York State Office of General Services:

The New York State Office of General Services (OGS) is responsible for servicing other state
agencies throughout New York. Its services include design and construction, maintenance of state
buildings, food and laundry services to both correctional facilities and health-related institutions,
statewide vehicle management, and centralized printing. With this diversity of services, an annual
budget well over $500 million, and more than 4000 employees, executive oversight was a
nightmare. Until 1986, OGS automatically received annual budget increases in line with inflation
rates. Budget deficits were made up through supplement allocations by the legislature.OGS felt no
pressures to improve efficiency or stay within its budget. That changed in 1986 when a new
administrative head of the agency was appointed. He decided that the organization had to operate
in a more efficient, effective, and responsive manner. He also wanted to avoid year-end deficits.
These objectives required better management at the top.

The first module of a OGS ESS was implemented in 1998.The system allows the executives to
monitor status by program, comparing budget to actual expenditures and showing estimated
expenditures through the remainder of the fiscal year. Management can drill down to see specific
details in any category. The system contains only raw data, allowing the users great flexibility in
aggregating and analyzing it to meet their needs. For example, users are able to view a single
expense category by month across organizations, or view several months of expenses for a given
unit. Because the raw data are there, the executives can drill down to the source. The system
includes exception reporting so that budget problems are highlighted and detected early.
Executives are also using the system to compare budgetary control by unit to spot personnel
performance problems.

Since the system was developed for a government agency, the cost was of more than normal
concern-the system had to be built inexpensively. The system uses ordinary microcomputers
networked with the agency’s mainframe and off-the-shelf, standard, inexpensive software tools.
The total cost was less than $100,000.The system is menu-driven and very easy to use. New users

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 are trained through a 30 –minute demonstration, and experience has shown that this is all that they
need. No user manual is available.

One interesting by product of the systems has been the need to develop productivity measures.
Future development will focus on the area of performance analysis, attempting to answer such
questions as how many people are required to work in specific units. The ESS called for OGS to
measure something that it had never measured before. The work of developing these measures
should in itself contribute to the drive for more efficiently .This ESS is helping the Office of General
Services enhance management control.

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