Make a short summary of the topic presented below.

Be sure to capture
the essence of the lesson accurately.

MANAGEMENT OF INFORMATION RESOURCES

Information Systems Planning:

Information management is term that covers array of the systems and processes within an
organization to create and use of corporate information. Information Systems Planning is
critical in developing and executing successful strategic plans in huge firms at global
level. It is observed in current business situation that the markets are very uncertain which
pushes companies to adopt effective, pro-active strategies in order to gain competitive
advantage. The strategy formula is oriented through company's operation and objectives
based on a cautious analysis of the involving company. Objectives of information system
planning are desired future positions and destinations the organizations intend to reach in
order to fulfil its mission. Its policies are a general guideline that directs and constraints
decision making within an organization.

Information technology enables a set of opportunities to gain competitive advantage and to

adjust the Information Systems for the benefit of organization.
In present scenario, information system planning is key issue faced by senior executives of
company. Information management planning mainly involves in identification of the stage
of IS in the organization, identification of the applications of organizational information
systems, evaluation of each of these applications, based on established evaluation criteria,
establishing a priority ranking for these application and determining the optimum
architecture of IS for serving the top priority applications. Theoretical literature of the
information systems planning suggests two challenging theories of effective planning in a
turbulent environment. One predicts that organizations using a formal, comprehensive
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planning approach will be more successful. The other predicts that organizations using an
informal, incremental approach will be more successful in such an environment.
Stage model of Information System planning
1. Strategic planning:
a) Derivation from the organizational plan.
b) Strategic fit with organizational culture.
c) Strategy set transformation.
2. Information requirement analysis:
a) Define underlying organizational requirements.
b) Develop sub system matrix.
c) Define and evaluate information requirements for organizational sub-systems.
3. Resource allocation:
a) Return on investment
b) Charge out
c) Portfolio approach
d) Steering committees.
4. Project planning
a) Milestones
b) Critical path method
c) Gantt chart

Four Stage Models of Information Systems Planning

Acquisition of Information Systems:
An acquisition strategy is a top-level roadmap that focuses on highlighting and managing
risks to a successful outcome. Business requirements for supporting work processes
require integration across multiple systems, spanning multiple business or organizational
units.

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The acquisition of information systems can either involve external sourcing or rely on
internal development or modification. With today's highly developed IT industry,
companies tend to acquire information systems and services from specialized vendors.
Information systems are a major corporate asset, with respect both to the benefits they
provide and to their high costs. Therefore, organizations have to plan for the long term
when acquiring information systems and services that will support business initiatives.
At the same time, firms have to be responsive to emerging opportunities. On the basis of
long-term corporate plans and the requirements of various individuals from data workers
to top management, essential applications are identified and project priorities are set. For
example, certain projects may have to be carried out immediately to satisfy a new
government reporting regulation or to interact with a new customer‘s information
system. Other projects may be given a higher priority because of their strategic role or
greater expected benefits.

Once the need for a specific information system has been established, the system has to be
acquired. This is generally done in the context of the already existing information systems
architecture of the firm. The acquisition of information systems can either involve
external sourcing or rely on internal development or modification. With today‘s highly
developed IT industry, companies tend to acquire information systems and services from
specialized vendors. The principal tasks of information systems specialists involve
modifying the applications for their employer‘s needs and integrating the applications to
create coherent systems architecture for the firm. Generally, only smaller applications are
developed internally. Certain applications of a more personal nature may be developed by
the end users themselves.

Acquisition from external sources

There are several principal ways to acquire an information system from outside the
organization.
 Outsourcing: Outsourcing entails transferring the major components of the
firm‘s systems and operations—such as data centres, telecommunications.
 Software: A specialized company that provides its services under long-
term contracts.
 Offshoring: Offshore outsourcing, a type of business process outsourcing
(BPO), is the exporting of IT-related work from the United States and other
developed countries to areas of the world where there is both political stability
and lower labor costs or tax savings.
 Cloud Computing: Cloud computing is a method for delivering information
technology (IT) services in which resources are retrieved from the Internet
through web-based tools and applications, as opposed to a direct connection to a
server.
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  Internet: A means of connecting a computer to any other computer anywhere
in the world via dedicated routers and servers.
 Software-as-a-Service: SaaS is software licensing model in which access to
the software is provided on a subscription basis, with the software being
located on external servers rather than on servers located in-house.
 Open Source: Software for which the original source code is made freely
available and may be redistributed and modified according to the requirement
of the user.
Implementation of Information Systems:
The design of a management information system may seem to management to be an
expensive project, the cost of getting the MIS on line satisfactorily may often be
comparable to that of its design, and the implementation has been accomplished when the
outputs of the MIS are continuously utilized by decision makers.

Once the design has been completed, there are four basic methods for implementing
the MIS.
These areas:
1. Install the system in a new operation or organization.
2. Cut off the old system and install the new
This produces a time gap during which no system is in operation. Practically,
installation requires one or two days for small companies or small systems.
3. Cut over by segments
This method is also referred as‖ phasing in‖ the new system. Small parts or
subsystems are substituted for the old. In the case of upgrading old systems, this
may be a very desirable method.
4. Operate in parallel and cut over.
The new system is installed and operated in parallel with the current system until it
has been checked out, then only the current system is cut out. This method is
expensive because of personal and related costs. Its big advantages are that the
system is fairly well debugged when it becomes the essential information system.
Implementation Tasks
Plan the implementation
The three main phases in implementation take place in series. These are
1. The initial installation
2. The test of the system as a whole
3. The evaluation, maintenance and control of the system.

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Many implementation activities should be undertaken in parallel to reduce
implementation time. Training of personnel and preparation of software may be in
parallel with each other and with other implementation activities.
The first step in the implementation procedure is to plan the implementation. Some
analyst includes the planning of the implementation with the design of the system, the
planning and the action to implement the plan should be bound closely together.
Planning is the first step of management, not the last. The MIS design and the urgent
need for the system at the time the design is completed will weigh heavily on the plan
for implementation.

The major implementation tasks consists of-

1. Planning the implementation activities
2. Acquiring and laying out facilities and offices
3. Organizing the personnel for implementation
4. Developing procedures for installation and testing
5. Developing the training program for operating personnel.
6. Completing the system‘s software
7. Acquiring required hardware
8. Generating files
9. Designing forms
10. Testing the entire system
11.Completing cutover to the new system
12.Documenting the system
13.Evaluating the MIS
14.Providing system maintenance (debugging and improving)

1. Planning the implementation activities Establish Relationships among tasks

For small projects, the order of performance may simply be described in text form. A Gantt
chart or network diagram makes visualization of the plan and schedule much clearer.
For large projects, many concurrent and sequential activities are interrelated so that a
network diagram must be employed in any good plan.
Establish a Schedule
Schedule is prepared by having the system designers estimate the times between the
events in the program network. The critical path (longest time through the network) can be
calculated. After specifying the starting date, the end date is established.

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Cost Schedule to Tasks and Time
The cost for completing each task required to complete is established as part of the plan;
then the rate of expenditures should be budgeted.
Reporting and control of the work in progress may be obtained by weekly meetings. The
financial personnel must make certain that report formats allow them to show cost and
technical progress relationship as well as cost and time.

2.Acquiring and laying out facilities and offices

For the installation of a new system to replace a current one may require a major revision of
facilities as well as completely new office, computer room etc.
The MIS project manager must prepare rough layouts and estimates of particular floor
areas that feel to be needed. The manager then prepares cost estimates. Space planning
must be done by the space to be occupied by people, the space occupied by equipment and
the movement of people and equipment in the work progress. A large investment in good
working conditions will repay its cost many times.

3.Organizing the personnel for implementation

As the implementation tasks have been defined, management usually assigns a project
manager to guide the implementation.
The purpose of the MIS is to increase the amount and quality of their contributions, the
system is their system.
Top management must make the middle managers for their involvement in
implementation, besides these, systems specialists, computer programmer; top
management should make sure that each people who will operate the system should have
active parts in the implementation.

4.Developing procedures for installation and testing

After organizing the personnel for implementation the next task is to develop or
prepare the procedures for implementation. As the project leader has the network plan
for proceeding with the implementation, this leader calls the key people in the project to
prepare more detailed procedures for system installation.
Procedures for evaluating and selecting hardware must be spelled out. Procedures for
phasing in parts of the MIS or operating the MIS in parallel must be developed.
The major part of implementing the MIS is the testing of each segment of total system as
it is installed.
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5. Developing the training program for operating personnel
A program is developed keeping in mind to impress management and support. After
developing the program, it is necessary to train operating personnel in their new duties.
They must have a thorough understanding of what the new MIS is like and what it is
supposed to do. They must learn how it will operate. They are faced with many changes in
their work and have to obtain acceptance of changes.
As there are various levels of personnel and these people will be working with only a
small part of the MIS, the seminars should be designed to provide them with an
understanding of the complete system.
6.Completing the system’s software
As the software is developed internally or under contract, in both cases, the software
development must take in mind the nature of the hardware required.
As the system designers and programmers provide the flow diagrams and the block
diagrams during the detailed design state. Some modification may be required, as the
implementation stage progresses.
7. Acquiring required hardware
This acquisition is usually the limiting factor in getting am MIS implementation. These
tasks should be started during the design stage.
The decision is to be needed, whether to buy or lease the hardware. Capital expenditure
analysis is only one of many factors involved in this decision. Others are prestige, usage
etc.
8. Generating files
In the implementation stage, the actual data must be obtained and recorded for the initial
testing and operation of the system. This requires format of the data, storage form and
format and remarks to indicate when the data have been stored.
The collection of data used in routine operations is often called the master file.
Responsibility for file maintenance for each file item should also be assigned. The
development of files or databases belongs to information system designers and storage and
retrieval experts.
The translation of specifications for files into computer programs is a function of computer
specialists.

9. Designing forms
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For controlling the marketing, a salesperson has to fill out the forms summarizing the day‘s
activities. The form ensures the right information to be supplied for computer storage.
Forms are required not just for input and output but also for transmitting data at
intermediate stages.
10. Testing the entire system
As the total system is installed, tests should be performed with the test specifications and
procedure. A test during installation stage consists of component tests, subsystem tests and
total system acceptance tests.
Components may be equipment (that can be new or old), new software programs, new
data collection methods, work procedures, reporting formats. Difficulties that occur during
component tests may lead t design changes.
As more components are installed, subsystems may be tested. There is a difference
between the testing of component and the testing of a system.
System tests require verification of multiple inputs, complex logic systems, and timing
aspects of many parts.
11. completing cutover to the new system
Cutover is a point at which the new component replaces the old component to the new
system replaces the old system. This involves old forms, old files and old equipment being
retried.
The debugging proves associated with the cutover to the new system may extend for
several months
12. Documenting the system
Documentation of the MIS means preparation of written descriptions of the scope,
purpose, information flow components, and operating procedures of the system.
Documentation is a necessity for troubleshooting, for replacement of subsystems, for
interfacing with other systems, for training new operating personnel and also for
evaluating and upgrading the system.
13. Evaluating the system
After the MIS has been operating smoothly for a short period of time, an evaluation of
each step in the design and of the final system performance should be made.
Evaluation should not be delayed beyond the time when the system‘s analysts have
completed most of the debugging. The longer the delay, the more difficult it will be for
designer to remember important details.
The evaluation should be made by the customer as well as by the designers.

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14. Providing system maintenance
Control and maintenance of the system are the responsibilities of the line managers.
Control of the systems means the operation of the system as it was designed to operate.
Sometimes, well-intentioned people or operators may make unauthorized changes to
improve the system, changes that are not approved or documented.
Maintenance is closely related to control. Maintenance is that ongoing activity that
keeps the MIS at the highest levels of effectiveness and efficiency within cost
constraints.
Maintenance is directed towards reducing errors due to design, reducing errors due to
environmental changes and improving the system‘s scope and services.
Evaluation of Information Systems:
Evaluation of MIS is an integral part of the management control process, in which the
organizations determine or appraise the quality or worth of their information systems. In
other words, evaluation of MIS is a process of measuring performance of organizational
information systems.
Evaluation Approaches:
There are different approaches to evaluate MIS in an organization. The MIS
evaluation approaches provide different means to measure accomplishments of system
objectives.
 Quality Assurance Review: Quality assurance review or technical review
focus on assessing the information system‘s technical quality.
 Compliance Audits: Compliance audits or application control reviews assess the
adequacy and completeness of controls for the system inputs, outputs,
processing, security and access.
 Budget Performance Review: Evaluation of MIS budget performance
concentrates on compliance with a predetermined budget expenditure level for
the MIS development or operations process.
 MIS Personnel Productivity Measurements: The capability of MIS
personnel is typically determined in terms of productivity.
 Computer Performance Evaluation: The production capability of the
computer hardware is typically evaluated in terms of performance efficiencies
and bottlenecks that limit production.
 Service Level Monitoring: Service level monitoring focuses on assessing
the information and support provided to the user, based on the terms
established between the MIS user personnel.

 User Attitude Survey: This method is used in operational evaluation.

Operational considerations refer to whether the input data is adequately
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provided and the output is usable.

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  Post-Installation Review: The focus of the post-installation review (PIR) is
often on estimating whether the system meets the requirements.
 Cost Benefit Analysis: It is also known as economic evaluation. The analysis
quantifies the system‘s effect on organizational performance in terms of
dollars.
Evaluation of Performance:
1. Effectiveness: This refers to the quality of the outputs from the systems.
Effectiveness means doing the right thing in the right manner so that desired
result may be achieved. Information system is said to be effective if its product
(i.e. output) is of quality, and the process of producing output is right (effective).
2. Efficiency: It is a measure of the amount of resources required to achieve the
output, i.e. the use of system resources to get results. Being efficient implies
the system is operating the right way.

Product-Based MIS Evaluation:

Since the focus of the product-based evaluation is on the product or the output from the
system, the evaluation may be termed as effectiveness evaluation. For assessing the
effectiveness of output form MIS, the following model may be used.
Model Structure:
Timeliness
Relevance
Accuracy
Completeness
Adequacy
Explicitness
Exception-based
Cost-Benefit-Based MIS Evaluation:
In cost/benefit evaluation, a thorough study of various expected costs, the benefits to be
expected from the system and expected savings, if any, is done. It is an economic
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evaluation

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of the system, in which costs to be incurred for developing, implementing and operating a
system are to be justified against the expected benefits from the system.
In other words, cost/benefit analysis determines the cost-effectiveness of the firms.
Cost Elements:
 Initial Development Cost: it incurred in developing an information system.
Various elements of development cost include project planning cost, feasibility
study cost, design cost, conversation cost, implementation cost etc.
 Capital Cost: It is also one-time cost. It is the cost incurred in facilities and in
procuring various equipment, including hardware etc.
 Annual Operating Cost: It is the cost incurred in operating the system. It includes
computer and equipment maintenance cost, personnel cost, overheads, and supplies
cost.
 Identification of Cost and Benefits: Certain costs and benefits are more easily
identifiable than others. For example, direct cost.
 Classification of Cost and Benefits: The various categories of costs and benefits
are important to make a cost/benefit analysis. These categories may be tangible or
intangible, direct or indirect, fixed or variable.

Evaluation Models:
Having identified and categorised various costs and benefits, monetary value of each and
every cost as well as benefit is estimated. A system analyst/user manager may evaluate the
costs and benefits so estimated. For evaluation, there are several models, which are
available, namely:
i. Net Benefit Analysis
ii. Present Value Analysis
iii. Net Present Value
iv. Payback Method
v. Cash-flow Analysis
vi. Break-even Analysis etc.

Maintenance of Information systems:

The results obtained from the evaluation process help the organization to determine
whether its information systems are effective and efficient or otherwise. The process of
monitoring, evaluating, and modifying of existing information systems to make required
or desirable improvements may be termed as System Maintenance.
System maintenance is an ongoing activity, which covers a wide variety of activities,
including removing program and design errors, updating documentation and test data and
updating user support. For the purpose of convenience, maintenance may be categorized
into three classes, namely:
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 i) Corrective Maintenance: This type of maintenance implies removing errors in a
program, which might have crept in the system due to faulty design or wrong
assumptions. Thus, in corrective maintenance, processing or performance failures
are repaired.
ii) Adaptive Maintenance: In adaptive maintenance, program functions are changed to
enable the information system to satisfy the information needs of the user. This type
of maintenance may become necessary because of organizational changes which
may include:
a) Change in the organizational procedures,
b) Change in organizational objectives, goals, policies, etc.
c) Change in forms,
d) Change in information needs of managers.
e) Change in system controls and security needs, etc.

iii) Perfective Maintenance: Perfective maintenance means adding new programs

or modifying the existing programs to enhance the performance of the information
system. This type of maintenance undertaken to respond to user‘s additional needs
which may be due to the changes within or outside of the organization. Outside
changes are primarily environmental changes, which may in the absence of system
maintenance; render the information system ineffective and inefficient. These
environmental changes include:
a) Changes in governmental policies, laws, etc.,
b) Economic and competitive conditions, and
c) New technology.

IS SECURITY and CONTROL:

Today, organizations are increasingly becoming dependent on information
systems/technology. However these systems are vulnerable to a large number of potential
hazards, especially due to networked computing. Therefore, IS control and security is an
important issue of concern for the management. Some of the major threats to the
information systems are as follows:
 Error in handling, entering, transferring, or programming data
 Equipment malfunctions
 Accidental or malicious damage to computer resources
 Destruction from virus
 Theft of equipment and/or programs
 Inappropriate use of data
 Loss, theft, or changes of data,

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 Fire or any other natural calamity

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