RIFTVALLEY INSTITUTE OF SCIENCE AND TECHNOLOGY

DEPARTMENT OF INFORMATION COMMUNICATION TECHNOLOGY

MANAGEMENT INFORMATION SYSTEM

For DICT MODULE III

PATRICIA MUTISYA

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TOPIC 1: INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM
DEFINITION OF TERMS

a. Management

The process of getting activities completed efficiently with and through other people, through the execution
of basic management functions which include: planning, organizing, directing, controlling, and
coordinating.

In addition, the function of decision-making takes place within each of the above categories.

 Management in organizations mainly has three levels: top, middle and operational.
 Different types of decisions are made at each level and each level therefore has different information
requirements
b. Information
This is data that has been interpreted and understood and given meaning within a given context.
Information performs several functions in organizations, including:
 Reduction of uncertainty especially in planning and decision making
 Helps in monitoring and control
 As a means of communication
 Aids in simplification so that problems and situations are better understood and become more
manageable.

Characteristics/ qualities of good/useful information include; accuracy and verifiability, completeness;

timeliness; relevance; understandability and appropriateness of format; economical; accessibility etc.

c. System it has many definitions but can be defined as;

A group of independent and interrelated elements/components/ parts comprising a unified whole and
working together toward a common goal by accepting inputs and producing outputs in an organized
transformation process.

This definition emphasizes the fact that a system is an assembly of parts/ components where;

I. The parts are connected together in an organized way

II. The parts are affected by being in the system ( and are changed by leaving it)
III. The assembly does something for a purpose
System may be open or closed
Open system- one which interacts with its external environment.
Closed system-does not interact with surrounding environment. This can only apply to mechanical and
physical systems e.g the production sub-system where arrangements are made to limit exchanges
with external environments so that operations can flow smoothly.
d. Information system
A general term for a system comprising people, machines, hardware, software, procedures
communications, policies and/ or methods organized to collect, process, store and disseminate
information in order to support decision making.

Meaning of management information systems

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 I. The MIS is defined as a system which provides information support for
decision making in the organization.
II. The MIS is defined as an integrated system of man and machine for providing
the information to support the operations, the management and the
decision making function in the organization.
III. The MIS is defined as a system based on the database of the organization
evolved for the purpose of providing information to the people in the
organization.
IV. The MIS is defined as a Computer ñ based Information System.
V. Is an organized approach to gathering information from company operations
and making a strategic management decision.
VI. Generally: MIS is a system to support the decision making function in the
organization.
1. Qualities of good management information system
 Relevance: Information should be relevant to the strategic decision that
company management is currently reviewing.
 Accuracy: MIS information should be accurate and avoid any inclusions of
estimates or probable costs.
 Timely: Many management decisions are based on information from a certain
time period, such as quarterly or annual periods.
 Exhaustive: MIS information gathering should resemble an upside-down
triangle. The early stages of information gathering should be exhaustive,
including all types of company information. As management narrows its
decision-making process, the information is refined to include only the most
relevant pieces.
 Cost-Effective: The MIS needs to be a cost-effective and efficient system for
gathering information.
 Has senior management support and sponsor.
 Has gone through business risk analysis.
 Has good project management controls.
 Has good change management controls.
 Has good user interaction/feedback controls.
 Has good security management controls.
 Has good management reporting system.
 Has good return on investment.
 Delivered all the functional requirements and users liked it.
2. Describe the components of MIS
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 Components of management information systems
i. Resources of people: (end users and IS specialists, system analyst,
programmers, data administrators etc.).
ii. Hardware: (Physical computer equipment and associate device, machines and
media).
iii. Software: (programs and procedures).
iv. Data: (data and knowledge bases), and
v. Networks: (communications media and network support).
3. Explain the role of information in an organization
Role of information in an organization
 The system ensures that an appropriate data is collected from the various
sources, processed, and sent further to all the needy destinations
 To satisfies the diverse needs through a variety of systems such as Query
Systems, Analysis Systems, Modeling Systems and Decision Support Systems
 Helps in Strategic Planning, Management Control, Operational Control and
Transaction Processing.
 Help clerical personnel in the transaction processing and answers their
queries on the data pertaining to the transaction, the status of a
particular record and references on a variety of documents
 Helps the junior management personnel by providing the operational data for
planning, scheduling and control, and helps them further in decision making
 Helps the middle management in short term planning, target setting and
controlling the business functions.
 Helps the top management in goal setting, strategic planning and evolving
the business plans and their implementation.
 Help in information generation, communication, problem identification and
helps in the process of decision making.
4. Describe the qualities of good information system
Qualities of good information system
 Handling of a voluminous data.
 Confirmation of the validity of data and transaction.
 Complex processing of data and multidimensional analysis.
 Quick search and retrieval.
 Mass storage.
 Communication of the information system to the user on time.
 Fulfilling the changing needs of the information.

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TYPES OF SYSTEMS

DETERMINISTIC SYSTEMS
These are systems that function according to some predetermined procedures and hence their future
behavior can be predicted accurately depending on the situation. For the future to be predicted, the
current affairs and operation behavior must be known e.g. solar system, computer program

PROBABILISTIC SYSTEM
They operate on probability i.e. they operate on chance and hence their future behavior cannot be
predicted. E.g. social systems.

*** an information is both deterministic and probabilistic system. Its deterministic on the assumption
that definite info or input data that is worked upon (processed) according to some predetermined
procedures in form of input instructions or programs. Its expected to give a definite/predetermined
output. Its probabilistic because of unexpected output may not be forgotten because of unexpected
circumstances that may influence the system e.g. human interference, viruses.

CYBERNETIC SYSTEMS
These are systems that have to adapt to their environment for their survival. They are also described
as adoptive or self-organizing/self-monitoring and self-regulating systems. E.g. organizations,
human beings, plants.

CLOSED SYSTEMS
These don’t interact with the environment or events. They don’t communicate from (do not get any
input ) or to (do not give any output) to the environment. These types of systems are rare in social
system i.e. they are usually scientific systems.

OPEN SYSTEMS
They communicate with its events or environment e.g. they get input from the environment and give
output to the environment. E.g. business info systems.

Open systems get disorganized because they interact with many events and therefore they need to be
regulated.

The process where a system is regulated is known as negative feedback. Feedback is the data about a
system.

Control is a system that monitors and evaluates the feedback to determine whether the system is
moving towards the achievements of the goals set. A system that is performing properly, generates
positive feedback. This signals the control function to maintain the system current course towards its
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goal. A system whose performance is deteriorating and deviating from attainment of its goals
generates a negative feedback.

Entropy – this is a characteristic where performance of the system tends to deteriorate overtime. Its
also known as a system losing homostasis.

Subsystem – these are smaller systems that when they are linked together. They make up the system.
They are the building blocks of any system. Sub-system are interfaced or linked to make a system by
communication links.

TYPES OF INFORMATION SYSTEMS

Information systems can be classified in many ways eg the mode of processing on the nature of
interaction of the system with its environment etc. here, we will consider classification based on the
general functional areas in organizations.
(a) Transaction processing Systems
- A transaction in an event that generates or modifies data that is eventually stored in an
information
- Examples of transactions include making a purchase at a store, withdrawing money from a
bank account, making a payment to creditor, or paying an employee.
- Transactions are important events for a company, and collecting data about them is called
transaction processing. Transactions span organizational boundaries and provide information
to both internal and external entities.
- Because transactions impact on business. It is important that data be saved, protected and
stored carefully at all times so that it cannot be altered. Also, data form the foundation of the
accounting systems of every company, so the system must be able to produce the standard
reports
- The transactions of an organization system in computerized manner refer to Transaction
Processing System (TPS). A TPS is a type of information system that collects, stores,
validates, modifies and retrieves the transactions of an organization or in the various
functional areas/ of business for future retrieval and use.
- Transaction processing systems were among the earliest computerized systems

Characteristics of Transaction Processing Systems

- It records internal and external transaction for a company. It is repository of data that is
frequently accessed by other systems.
- It performs routine, repetitive tasks. It is mostly used by lower-level managers to make
operational decisions.
- Transaction can be recorded in batch mode or online. There are six steps in processing a
transaction: data entry, data validation (error detection and error correction) data processing
(online and batch mode). Storage, output generation (eg reports or forms), and query support
(eg checking the balance in an account).

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 - Because data is the foundation for all other decisions. TPS must maintain data intergrity and
minimize the threats to the data.
- It supports different tasks by imposing a set of rules and guidelines that specify record,
process and store a given transaction.
- TPS exist for the various functional areas in an organization, such as finance, human
resources and research and development. Companies are trying to build cross-functional TPS
to promote the free exchange of information among business units. This is a desirable goal,
but still very difficult to achieve exchange of information among business units. This
desirable goal, but is still very difficult to achieve.

(b) Knowledge Work and Office Systems

- Knowledge workers include engineers, product designers and technicians
- Using knowledge wisely helps companies to remain competitive eg by making better
products
- Knowledge work (KW) and Office Automation Systems (OAS) help in creating and using
knowledge and disseminating this knowledge throughout the organization
- OAS system help disseminate information BOTH internally and externally to the
organization
- KWS support the creation and integration of new knowledge into the flow of information
that is beneficial to the organization.
- Functions that KWS perform include: keeping the organization up-to-date knowledge.
Serving as internal consultants, and acting as change agents.
- The two groups of employees primarily concerned with KWS are the data workers who
process and distribute information and the knowledge workers who create knowledge and
information. These two groups can be distinguished by the type of work they perform and
how they create and use information.
- An essential requirement of a KWS is that should provide knowledge workers with the
necessary tools eg Graphics tools: Analytical tools: communication tools: Document
management tools.
- Most KWS require powerful workstations that can process the huge files needed to perform
professional work and connectivity to enable the knowledge workers to access external
sources of information.

Examples of knowledge work systems

- Computer-aided design (CAD) application; virtual reality; investment systems which
combine different types of information about companies. In order to advice clients on the
best use of their investment money.

(c) Decision support system (DSS)

- Managers make semi-structured and unstructured decisions based on historical and current
data. From both internal and external sources.
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 - They need the best tools available to help them make quality decisions by selecting the best
from a wide range of alternatives
- DSS combines massive amounts of data with sophisticated analytical models and tools, and
thus provide managers with a much better source of information to use in the decision-
making process.
- DSS are interactive computer-based systems and sub-systems intended to help decision
makers use communications technologies, data, documents, knowledge and/or models to
successfully complete decision process tasks.
- Most of the DSS users are professionals and middle managers like financial analysts, loans
officers, auditors or production schedulers.

Components of DSS
- The user interface
- The database
- The models and analytical tools eg mathematical and analytical models are the component
of a model-Driven DSS whereas a knowledge-Driven DSS use special models for processing
rules or identifying relationships in data
- The DSS architecture and network. This refers to how hardware is organized, how software
and data are distributed in the system, and how components of the system are integrated and
connected

Types of DSS
(i) Data-Driven DSS
- It takes massive amounts of data available through the company’s TPS and MIS systems and
selects from it useful information which managers can use to make more informed decisions
- It emphasizes access to and manipulation of large database of structured data
- Mostly utilizes simple file systems which are accessed by query and retrieval tools provide
the most elementary level of functionality.
(ii) Model –Driven DSS
- It includes systems that use accounting and financial models, representational models, and
optimization models i.e. it emphasizes access to and manipulation of a model.
- Simple statistical and analytical tools provide the most elementary level of functionality,
mode-Driven DSS use data and parameters provided by decision-makers to aid them in
analyzing a situation, but they are not usually intensive.
- It is primarily used for the typical “what-if” analysis eg “What if we increase production of
our products and decrease the shipment time?”
- It relies heavily on models to help executives understand the impact of their decisions on the
organization, its suppliers and its customers.
(iii) Knowledge-Driven DSS
- A third generation type of DSS and still evolving. It can suggest or recommend actions to
managers.

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 - It is a person-computer system with specialized problem-solving expertise. The “expertise”
consists of knowledge about a particular domain, understanding of problems within that
domain “skill” at solving some of these problems.
(iv) Document-Driven DSS
- New type of DSS intended to help managers retrieve and manage unstructured documents
and Web pages
- Document DSS integrates a variety of storage and processing technologies to provide
complete document retrieval and analysis.
- Examples of documents that would be accessed by a document by a Document-Based DSS
are policies and procedures, product specifications, and catalogues.
- A search engine is a powerful decision-aiding tool associated with a Document-Driven DSS.

Examples of DSS Applications

- Investment evaluation; customer buying patterns and fraud detection: corporate planning
forecasting; customer profiles, etc.
(d) Management Information Systems
- The term MIS has two very different definitions: the first one (we looked at in the
introductory part of this course) is the broad and encompassing definition.
- The second one is much narrower; it identifies a type of MIS within the broad category of
MIS.
- Managers need good information systems in order to manage effectively. They need
information for planning, organizing, controlling, coordinating and decision-making
functions.
- The system that provides such information is called MIS. It provides information for
management purposes. It facilitates management by producing information and variety of
reports on a regular basis.
- Conceptually, MIS operate a level above TPS applications. They are not concerned with day-
to-day operations, but rather with the management of activities that support operations, eg in
ticket reservations, a TPS is used to take orders and print tickets. An IMS is used to measure
and report the performance of each agent who sells tickets. Such a IMIs keeps track of the
numbers and amounts of each agent’s sales, and it regularly produces reports about agent
effectiveness.
- MIS cut across organizational boundaries, but are mostly used by middle level managers,
where a certain amount of structured and unstructured decision making is required.

(e) Executive Support Systems (ESS)

- Top executives use DSS very rarely, hence the need for Executive Support System
- What do executives actually want their information systems to provide them?
- Executives mainly require the ESS for decisional roles (entrepreneurship, disturbance handling,
resource allocation, negotiation)
- Executives rely more on external data than on data internal to their organizations because it
ensures successful competition and survival of the firm. Decisions must be made in the context
of the world outside the organization.
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 - Data is scanned and the collected information is checked and verified for its correction. It is
evaluated for further use of the organization. The evaluated information is sent for qualitative or
quantitative analysis. Then the executive makes a decision.
- So, decisions at this level of the company are usually never structured and could be described as
“educated guesses”.
- An ESS can supply the summarized information executives need and yet provide the opportunity
to drill down to more detail if necessary.
- An ESS is, therefore, a type of MIS intended to facilitate and support the information and
decision-making needs of senior executives by providing easy access to both internal and
external information relevant to meeting the strategic goals of the organization. It is commonly
considered as a specialized from of DSS.

Characteristics of ESS
- Must be conceptually easy to use i.e. they are almost graphical
- Have easy-to-use interface. Pointing devices (light pens, mice etc) and touch screens are often
used so that executives will require minimal skills to use.
- Provide broad, highly aggregated information
- Can also provide detailed data i.e. can be optionally to detail level
- Provide context information-look at the larger picture
- Integrate many sources of data
- Timeliness and accuracy are crucial

Benefits of ESS
- Simple for high-level executives to sue; not require extensive computer experience
- Provides timely delivery of company summary information
- Provides better understanding of information
- Filters data for better time management
- Provides system for improvement tracking

Disadvantages
- Computer skills required to obtain results
- Requires preparation and analysis time to get desired information
- Detail oriented provides detailed analysis of a situation
- Difficult to quantify of DSS how do you quantify a better decision?
- Difficult to maintain database intergrity
- Provides only moderate support of external data and graphics capabilities
Examples of ESS Applications
- Trends in the marketplace
- Manage company assets and inventories. The information is used for analysis of the efficient, or
inefficient, use of assets.

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 CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
Information systems has many perspectives and this shows that information system is a multi-
disciplinary field. There are many disciplines that contribute to problems, issues and solutions in the
study of info systems. These fields can be divided into two major categories.

1. Technical approach
2. Behavioral approach
3. Socio-Technical approach
Information systems are socio-technical systems. Though they are composed of machines,
devices, and “hard” physical technology, they require substantial socio, organizational, and
intellectual investments to make them work properly.

Technical
Operations
Approaches Computer Research
Science

Sociology
Management
MIS
science
Behavioral
Approaches

Psychology
Economics

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TECHNICAL APPROACH
It emphasizes on mathematically based models to study of information systems. It also looks at the
physical technology and formal capability of these systems. It emphasizes at identifying solutions
that can be represented by a formula or models that can be converted into a program.

Every problem can be transformed into models and technical power. Disciplines that contribute to
technical approach are;

a) Computer science –concerned with establishing theories of computability, methods of

computation, and methods of efficient data storage and access.
b) Management science – it emphasizes the development of models for decision- making and
management practices.
c) Operations research- focuses on mathematical techniques for optimizing (maximizing)
selected parameters of organizations such as transportation, inventory, control and
transaction costs

BEHAVIORAL APPROACH
It’s a field of information systems that deals with behavioral issues arising from development and
long time maintenance of information systems. It deals with issues that cannot be explored with
models used in technical approach. These issues include strategic business integration, design,
implementation and utilization. The other behavioral disciplines contributing to IS include:

 Sociology
This concerns how society reacts to changes brought about by info systems. The study of info
systems and how groups and organizations shape the development of systems and how info
systems affect individual groups and organizations.

 Psychologists
These study info systems with an interest in how human decision makers perceive and use formal
information

 Economists
Study info systems with an interest in what impact systems have on control and cost structures
within the firm and within markets.

N/B

Behavioral approach does not ignore technology, in fact information system technology is the
stimuli of behavioral problems or issues but the focus of this approach generally is not in

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 technical solutions. It instead concentrates on changes in attitude, management and
organizational policy, and behavior.

 Political science
It focuses on investigation of political behavior of society. Behavioral approach emphasizes info
systems should be based on needs of human beings as well as their reaction/responses i.e. human
beings should be incorporated to whatever system that have been developed. How to transform
behavior of human beings to accepted modern technology.

SOCIO-TECHNICAL APPROACH
This is the mixture of technology and people. Socio-technical approach helps to avoid purely
technological approach to information systems. It emphasizes that IS approach is an
integral/integrated part of both the technology as well as organization people. It emphasizes that all
system performance should be optimized to attain high profitability as well as satisfy people working
in the organization that technology must be changed and designed in a way that it fits organizational
and individual needs. Sometimes technology must be deoptimised in order to satisfy individual
needs.

Organizations and people must be changed through traming learning and planned organizational
change in order to facilitate the operation and prosperity of technology. People and organization
change must take place to take advantage of new IT.

In socio technical perspective the performance of the system is optimized when both technical and
organization mutually adjust to one another until satisfactory fit is obtained.

5. ADV/Impacts of MIS(Positive)
 It creates an information- based work culture in the organization.
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  Relieves the human mind for better work
 It improves the decision making process considerably.
 Leads to managerial efficiency.
 Leads to systemization of the business operation for an effective system design.
 Information security
 Leads to easy tracking and monitoring of the functional targets
 creates a structured data and a knowledge base for all the people in the
organization.
 It improves performance and productivity.
 Ability to store and retrieve information at any instance and for future reference
 Help in forecasting and long term planning
 Increased boundary spanning i.e information is accessed anywhere in the world
 Eliminated repetition of information and thus promote non-redundancy.
 Promote communication /link in the organization
6. DISADVANTAGES of MIS
 Expensive to acquire
 Require experts develop and run
 Leads to employee over-dependence on the system whereby incase of failure
organizations operations are crippled.
Problems with MIS
 Lack of Management Direction
 Lack of management knowledge of computers
 Lack of top management support
 Lack of management participation in MIS design
7. Types of organizational information system
Type of system Function
Transaction processing systems Process transaction data from business events
Office automation supports daily work activities of individuals and
groups
Enterprise resource planning systems integrates all functional areas of the
organization
Management information system produce reports summarized from
transactional data
Decision support system provides access to data and analysis tools
Experts system make decisions through knowledge provided by
expert

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 Executive information system provides structured, summarized inf4mn about
aspects of business important to executives
Supply chain management system manage flow of products, services and
information
Electronic commerce system enables transactions among organizations and
btwn customers

Why Organizations Build Information Systems{ADV}

 More efficient.
 Save money.
 Reduce work force.
 Become vitally important simply to stay in business.
 A source of competitive advantage.
 More innovative than others.
 Satisfy the ambitions of various groups within an organization.
TPS
Types of Transaction Processing System (TPS's)
1. On-line system: involves a direct connection between operator and the TPS
program. They provide immediate result and used to process a single
transaction at a time. Ex: an order arrives by telephone call; it is processed at
that moment and the result are produced.
2. Batch-processing system: This is a second type of TPS, where transactions are
grouped together and processed as a unit. Example: cheque processing system
in a bank.
Types of Transactions:
1. Internal Transactions: Those transactions, which are internal to the company and
are related with the internal working of any organization. For example Recruitment
Policy, Promotion Policy, Production policy etc.
2. External Transactions: Those transactions, which are external to the organization
and are related with the external sources, are regarded as External Transaction. For
example sales, purchase etc.
TPS Properties:
1. Consistency: The transaction is a correct transformation of the state. This means
that the transaction is a correct program.
2. Isolation: Even though transactions execute concurrently, it appears to the outside
observer as if they execute in some serial order. Isolation is required to guarantee

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consistent input, which is needed for a consistent program to provide consistent
output.
3. Reliability: TPS system is designed to ensure that all transactions are entered in
sequential and systematic manner.
4. Standardization: Transactions must be processed in the same way each time to
maximize efficiency and effectiveness.
5. Controlled Access: Since TPS also contains confidential matters or data; it acts as
powerful tool for the organization. Hence access must be restricted.

Objectives (Goals) of TPS

1. Process data generated by and about transactions.
2. Maintain a high degree of accuracy.
3. Ensure data and information integrity and accuracy.
4. Produce timely documents and reports.
5. Increase labor efficiency.
6. Help provide increased and enhanced service.
7. Help build and maintain customer loyalty.
8. Achieve competitive advantage.

EXAMPLES OF TPS
 Order Entry – records customers’ orders
 Inventory – manages the physical goods
 Distribution - ensures goods are sent to the customer
 Sales Invoice – prepares sales invoices and sends to customer
 Accounts Receivable – manages customer’s outstanding payments.
 Purchasing – identifies vendors and prepares purchase orders
 Receiving – receives deliveries from vendors
 Accounts Payable – manages payments to vendors
 Payroll – pays salaries to employees.
TOPIC2: USE OF INFORMATION SYSTEM IN MANAGEMENT
3. Explain the meaning and importance of IS in management
Meaning of IS
 A system that transforms raw facts into information which is used for decision
making

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 Set of devices , procedures and operations with the aid a user to produce
information and communicate it to the user for planning , control and
performance.
 It refers to a set of procedures and technologies and other resources that collects,
transforms and disseminates information in the system.
Importance of IS in management {planning and controlling}
- It brings a competitive advantage to the organization.
- It provides a basement for regulatory actions and control function in the
organization.
- It helps to make better decisions by delivering all the information needed for
decision making and also speed up decision making process
- They help improve customer service.
- Increase organizational control.
- Speed up problem solving.
- Help automate managerial functions.
- Improve personal efficiency.
- It provides records/ history/database of information that can be referred in
future actions, forecasts and cost estimates.
- It facilitates communication by gathering and distributing information to all
associated departments.
- It enhances company operations by offering more recent information allowing it
to operate efficiently.
4. Describe the use of IS in management decision making
Use of IS in management decision making {DSS, GDS, EIS etc}
Decision Support System:
1. Is a computer system at the management level of an organization that combines
data, analytical tools and models to support semi structured and unstructured
decision making.
2. DSS is an interactive, flexible computer based information system. It uses rules and
models for processing data, to support various managerial levels, ranging from top
executives to managers, in their decision-making.
Attributes of DSS
- Adaptability and flexibility.
- High level of interactivity.
- Ease of use.
- Efficiency and effectiveness.
- Complete control by decision maker.
- Extendibility.
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 - Support for modeling and analysis.
- Support for data access.
- Standalone, integrated and web based.
Types of Decision-Support Systems
 Model – driven DSS: primarily stand - alone system that uses some type of
model to perform “what-if” and other kinds of analyses.
 Data driven DSS: These systems support decision making by allowing users to
extract and analyze useful information that was previously buried in large
database.
 Communication-driven DSS: supports more than one person working on a
shared task; examples include integrated tools like Microsoft's NetMeeting or
Groove.
 Document-driven DSS manages, retrieves, and manipulates unstructured
information in a variety of electronic formats.
 Knowledge-driven DSS provides specialized problem-solving expertise stored as
facts, rules, procedures, or in similar structures.
Components of DSS
 DSS database – a collection of current or historical data from a number of
applications or groups. Can be a small PC database or a massive data
warehouse.
 DSS software system – collection of software tools that are used for data
analysis, such as OLAP or data-mining tools, or a collection of mathematical and
analytical models.
 User interface – permits easy interaction between users of the system and the
DSS software tools
 Data mining
Benefits of DSS
 Improve efficiency and speed of decision making.
 Improves personal efficiency.
 Expedites problem solving (speed up the progress of problems solving in an
organization).
 Facilitates interpersonal communication.
 Promotes learning or training.
 Increases organizational control.
 Creates a competitive advantage over competition.
 Helps automate the managerial processes.

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  Fast Response to Unexpected Situations
 Cost Savings
 Improves interpersonal communication.
 Helps automate managerial processes.
Differences between DSS and ES
 A DSS helps manager to take a decision where as an ES acts as a decision maker
or an advisor to the manager.
 A DSS is meant only for decision making whereas an ES provides expertise to the
manager.
 The spectrum of complexity is high in DSS and low in ES since ES addresses
issues related to specific areas only.
 DSS doesn’t ‘ve capability to reason whereas an ES has.
 A DSS cannot provide detailed explanation about the results whereas an ES can.

HOW DSS IS USED IN DECISION MAKING

 They have business intelligence which provides rich reporting, monitoring and
data analysis which are necessary for decision making.
 They have raw data, documents and stored records and business models that
enable the decision maker to identify and solve problems and make decisions.
Group Decisions Support System {GDS}
 Is a type of an IS whose purpose is to help a group of managers solve
unstructured and semi structured problems.
 It is an interactive computer - based system facilitating group decision - making
processes to solve unstructured problems.
 It is a system that supports working processes of groups of people (including
those in different locations).
Components of GDSS
 The hardware (the computers)
 Software (specialized GDSS software)
 People/ users
 The network/ telecommunication facilities.

pg. 19
How it works
An electronic meeting system (EMS) is a type of collaborative GDSS that uses information technology
to make group meetings more productive by facilitating communication as well as decision making.
It supports meetings at the same place and time or different places and times. The workstations are
networked and are connected to the facilitator’s console, which serves as both the facilitator’s
workstation and control panel and the meeting’s file server. All data that the attendees forward
from their workstations to the group are collected and saved on the file server. The facilitator is able
to project computer images onto projection screen at the front center of the room. The facilitator
controls the use of tools during the meeting, often selecting from a large tool box that is part of the
organization’s GDSS. Attendees have full control over their own desktop computers and able to view
the agenda, use desktop PC ordinary tools, tap into production data that have been made available
or work on the screen associated with the current meeting step and tool. However, no one can view
anyone else’s screens so participant’s work is confidential until they release it to the file server for
integration with the work of others.
The typical GDSS session includes four phases
i. Idea generation
ii. Idea consolidation
iii. Idea evaluation
iv. Implementation
v. planning
How does it help in decision making?
 It enhances management decision making by providing group with the
technology to collaboratively generate ideas, organize ideas, set priorities,
resolve conflicts and arrive at solution.
 They provide for group brainstorming, classification, prioritization, assessment,
documentation and resolution.
 They provide an electronic infrastructure, processing, meeting space (may be
online face to face) and communication to improve org. decision making.
The benefits of GDSS
 More information in less time.
 Greater participation.
 Cost effective.
 No one voce is dominant during the session.

pg. 20
Executive information system
 Is a type of management information system that facilitates and supports senior
executive information and decision making needs.
ESS components
 Hardware
 Software
 User interface
 telecommunication
How it helps in decision making
 It offer strong reporting and drill down capabilities that assists executives in
decision making.
 Provide extensive analyzing tools including trend analysis, exception reporting
and is able to access broad range internal and external data.
Advantages of ESS
 Easy for upper level executives to use.
 Provide timely delivery of company summery information.
 Information provided is better understood.
 Improves tracking information.
 Offers efficiency to decision makers.
DISADVANTAGES of ESS
 System dependent
 Limited functionality
 Benefits are a hard to quantify.
 High implementation costs.
 System may become slow, large and hard to manage.
 Need good internal processes for data management.
 May lead to less reliable and less secure data.
COMPUTER-BASED INFORMATION SYSTEMS
An information system that uses computer technology to perform some or all of
its intended tasks.
Major Capabilities of Computer-Based Information Systems
 Perform high-speed, high-volume, numerical computations.
 Provide fast, accurate communication and collaboration within and among
organizations.
 Store huge amounts of information in an easy - to -access, yet small, space.
 Allow quick and inexpensive access to vast amounts of information, worldwide.
pg. 21
  Facilitate the interpretation of vast amounts of data.
 Increase the effectiveness and efficiency of people working in groups in one
place or in several locations, anywhere.
 Automate both semi - automatic business processes and manual tasks.
5. Explain the types of decisions making
 Strategic decision.
 Management control.
 Knowledge - level decision.
 Operational control.
 Unstructured decisions.
 Structured decisions.
 Semi structured decisions.
Describing types of decisions {structured, semi-structured, un-structured}
 Structured decisions: The decisions follow a set of rules and have a definite
procedure for handling them.
 Unstructured decisions: are normally subjective and do not follow any definite
set of rules.
 Semi-structured: decisions lie between structured and unstructured decisions.
 Analytical decisions: An analytical decision is one that is based on an analysis of
information that has been systematically acquired and evaluated.
 Heuristic decisions: These solutions will usually depend on trial and error.
Common sense, past experience and general guidelines may be used to help,
but the decision maker is not applying any techniques that will guarantee the
correct answer first time.
 Programmed decisions: are decisions that occur frequently enough that we
develop an automated response to them.
 Non-programmed decisions: They are unique and important decisions that
require conscious thinking, information gathering, and careful consideration of
alternatives.
6. Describe the decision making cycles
Decision making cycle
1. Intelligence: The first of Simon’s four stages of decision making. Individual
collect information to identify and understand problems occurring in the
organization.
2. Design: Simon’s second stage of decision making. Individual conceives of
possible alternative solutions.

pg. 22
 3. Choice: Simon’s third stage of decision making. Individual selects among the
various solution alternatives.
4. Implementation: Simon’s final stage of decision making. Individual puts the
decision into effect and reports on the progress of the solution
Barriers to decision making
 Insufficient knowledge
 Not enough time rationalization
 The environment may not cooperate
 misjudging the motives and values of people,
 poor communications
 Misappraisal of uncertainties and risks.
 Inability to handle the available knowledge and human behavior

Topic3: MANAGEMENT OF INFORMATION SYSTEM RESOURCES

Meaning and importance of information system resource concepts
1. Information resources are a general term that includes all the hardware,
software (information systems and applications), data, and networks in an
organization.
2. To enhance the effectiveness and efficiency utilization of resources in an
organization.
3. To reduce overheads incurred during mismanagement of IS resources.
The major categories of information resources
 hardware
 software
 databases
 networks
 procedures
 security facilities
 Physical buildings.
Describing Information system resources
 BUSINESS RESOURCES - Enterprises, Business Functions, Positions (Jobs),
Human/ Machine Resources, Skills, Business Objectives, Projects, and
Information Requirements.
 SYSTEM RESOURCES - Systems, Sub-Systems (business processes),
Administrative Procedures (manual procedures and office automation related),
Computer Procedures, Programs, Operational Steps, Modules, and Subroutines.
pg. 23
  DATA RESOURCES - Data Elements, Storage Records, Files (computer and
manual), Views, Objects, Inputs, Outputs, Panels, Maps, Call Parameters, and
Data Bases.
Importance of managing IS resources
 It improves and speed up business work(productivity)
 It provides cost effectiveness
 Leads to high performance
 It saves the org. of extra costs in maintenance
 Enables quality decisions from management.
 Enhances a competitive advantage of the org.
 Leads to maximum utilization of resources.

Describing Information society

Meaning
1. Information Society: A society characterized by a high level of information
intensity in the everyday life of most citizens, in most organizations and
workplaces; by the use of common or compatible technology for a wide range of
personal, social, educational and business activities, and by the ability to
transmit, receive and exchange digital data rapidly between places irrespective
of distance.
2. Information society is a society where the creation, distribution, diffusion, uses,
integration and manipulation of information is a significant economic, political,
and cultural activity.
3. People who have the means to partake in this form of society are sometimes
called digital citizens.
Importance
 It enables the organization to gain competitive advantage internationally,
through using information technology (IT) in a creative and productive way.
 Enhances ideas exchange and information sharing.
Characteristics
 It involves many people.
 Information is regarded as cultural, social and economic activity.
 People involved in the information society are called digital citizens.
Challenges
 Language barrier
 Many people have no access to the technology required for information system.
pg. 24
  It is basically an expensive undertaking.
Topic 4: INFORMATION SYSTEM PLANNING

Information Systems Planning

This a road map indicating the direction of systems development. I.e. the rationale, the current
situation, the management strategy, the implementation plan and the budget.
Deciding which new systems to build is an essential component of the organizational planning
process. The information system plan should support organizational overall business plan and also
incorporate strategic systems into top-level planning.
The plan contains a statement of corporate goals and specifies how information technologies support
the attainment of these goals. The report shows how general goals will be achieved by specific system
projects. It lays out specific target dates and milestones that can be used later to judge the plans
progress in terms of how many objectives were actually attained in the time frame specified in the
plan.
It also indicated the key management decisions concerning hardware acquisition, telecommunication,
centralization /decentralization of authority, data and hardware and required organizational change.
Organizational changes should also be described, including management and employee training
requirements, recruiting efforts, changes in business processes, and changes in authority, structure or
management practice.

Organization Information Requirements

For one to develop an effective information system plan, the organization must have a clear
understanding of both its long/short term information requirements.
The methodologies for establishing the essential information requirements are
 Enterprise analysis
 Critical success factors

Enterprise analysis (business systems planning)

The firm’s information requirements can be understood by looking at the entire organization in terms
of organizational units, functions, processes and data elements. This analysis helps in identifying the
key entities and attributes of the organizations data.
The central method used is to take a large sample of managers and ask them how they use
information, where they get their information, make decisions, and what their data needs are.
Weaknesses

pg. 25
 a) It produces an enormous amount of data that is expensive to collect and difficult to analyze.
This is because of the large survey of managers) it consists of aggregates of subunits,
functions, processes and data matrices.
b) Most interviews are conducted with senior / middle managers, with little effort to collect
information from clerical and supervisory managers.

Strategic analysis/critical success factors

Argues that organizations information requirements are determined by a small number of critical
success factors (CSFs) of managers.
A small number of easily identifiable operational goals shaped by the industry ,the firm, the
manager, and the broader environment that are believed to assure the success of an organization thus
its used to determine the information requirements of an organization.
The vital premise of the strategic analysis approach is that there are a small number of objectives that
managers can easily identify and on which information systems can focus. The method used is
personal interviews.
Merits
 It produces a smaller data set to analyze than does enterprise analysis
 Only top managers are interviewed and the questions focus on a small no. of CSFs rather than
a broad inquiry into what information is used or needed.
 It focuses on organizational attention on how information should be handled.
Weaknesses
 The aggregation process and the analysis of data are art forms. There is no particular rigorous
way in which individual CSFs can be aggregated into a clear company pattern.
 There is often confusion among interviewees and interwers between individual and
organizational CSFs.(they are necessarily the same)
 Its clearly biased toward top managers because they are the ones interviewed.

Importance of information system planning

 Enables org. to achieve its objectives
 It puts clear each personnel role to be played and therefore reduce contractions
and inconveniences.
Challenges in business planning
 Foreseeing and assessing opportunities.
 Assuring consistency with organizational plans and objectives.
 Building systems.
pg. 26
  Maintaining information system performance.
 Collaborating with IT professionals.
Principles for IS planning
 Support the firm’s business strategy with appropriate technical architecture.
 Evaluate technology as a component of a larger system.
 Recognize life cycle costs, not just acquisition costs.
 Design information systems to be maintainable.
 Recognize the human side of technology use.
 Support and control the technical system.
Role of IS and user departments
 The IS department is responsible for producing the IS plan in conjunction with
the user departments.
Chief information officer (CIO)
 Leads the IS function, and is responsible for making sure that the IS plan s
upports the firm's business plan
User roles in IS planning – roles:
 Sponsors – senior managers who make sure resources are allocated for building
and maintaining the system.
 Champions – individuals that recognize the importance of an IS, and exert effort
to make sure that others share that recognition.
 IS steering committees – make sure that the IS reflects business priorities.
IS Professionals
 Project managers.
 Application programmers.
 System analysts.
 Programmer-analyst.
 Technical writers.
 Computer operators.
 Database administrators.
 System managers.
 System programmers.
 User support staff.
pg. 27
Explain the steps involved in information system planning
1. Identification of the stage of IS in the organization.
2. Identification of the application of organizational ISs.
3. Evaluation of each of these applications based on established evaluation
criteria.
4. Establish a priority ranking for these applications.
5. Determining the optimum architecture of IS for serving the top priority
applications.

Topic 5: INFORMATION SYSTEM PROJECT MANAGEMENT

Meaning and importance of information system
Is the coherent organization of the information required for an organization to execute
projects successfully? A PMIS is typically one or more software applications and
methodical process for collecting and using project information. This electronic system
helps to plan, execute, and close project management goals.
Information system project management techniques/tools
1. PERT: Project Evaluation Review Technique. It is a planning and control tool
used for defining and controlling the tasks necessary to complete a project.
2. CPM: critical path method is an algorithm for scheduling set of project activities.
3. GANTT CHART: it a type of bar chart developed by Henry Gantt that illustrates a
project schedule.
Project management process
1. Initiating the project
2. Planning the project
3. Executing the project
4. Closing the project
Importance of ICT project management
- Leads to good, consistent and complete documentation of the system at all
system development stages
- Leads to good interaction and communication among various diverse groups
within an enterprise hence success of the project.
- It avoids Overambitious objectives
- It prevents Low projects poor performance in project development
- Leads to strategic control of costs and expenses with regular reviews of
progress, accurate estimates of the total hence minimal chances of project
failure
Reasons for ICT project failure
pg. 28
  Lack of clear, understandable specifications
 Poor documentation
 Poor communications
 Overambitious objectives
 Low quality, poor performance
 Never-ending development
 High costs and cost overruns
 Perpetual maintenance
 Poor management
 Lack of solid project plan
 Team weakness
 Overrun of schedule and cost
How to avoid project failure/Strategies for managing a failing ICT project
 Divide and conquer: Divide the project up into manageable chunks
 Measurable deliverables: Define the minimum set of measurable deliverables
required to be completed at the end of each system development stage.
 Reviews and walk-throughs
 Testing
 Project staffing: have the right and qualified staff in the project devpt
 Change control
 Maintenance

Topic 5: INFORMATION SYSTEM ACQUISITION

"Acquisition" means to purchase a package, have in-house information systems personnel
develop it, hire a consultant, or develop it yourself.

Information Technology Acquisition Process

1. Define your information requirements

2. Find the software that will satisfy your information requirements
3. Find the hardware that will run the software that you found
4. Identifying a development alternative
5. Conducting a feasibility analysis
6. Performing the selection procedure
7. Implementing the selected option

Describing information system acquisition process

STAGE 1: Define your information requirements

pg. 29
  Analyzing the decisions you make and the information required to make them
 Identifying pertinent information requirements

STAGE 2: Find the software that will satisfy your information requirements

 search for software to accomplish your system requirements

 By having specific software requirements you can better work with analysts,
consultants, or salespersons.
 Ensure that the system reflects YOUR information requirements rather than the
analysts', consultants', or salespersons' concept of your information
requirements.

STAGE3: Find the hardware that will run the software that you found

 search for hardware to run the selected software

 Check on hardware capabilities
STAGE 4: IDENTIFYING A DEVELOPMENT ALTERNATIVE
 There are several options in procuring software solutions. Some available
alternatives are: (1) Developing the system in-house, (2) Off-the self-solutions
(Purchasing commercially available solution), (3)Buying a custom made system
for a vendor, (4) Leasing software from an application service provider (ASP) or
lease through utility computing (contracted development), (5) Outsourcing a
system from other companies (6) Participating in auction, e-marketplace, or a
public exchange (consortium) , (7)Use a combination of these listed options.
 While an organization is in the phase of deciding which alternative being
selected, the management should carefully examine not only the advantages
and disadvantages of each procuring option, but more importantly, the option
must be best-fit with the organization business plan that has been documented
in the previous steps
STAGE 5: CONDUCTING A FEASIBILITY ANALYSIS
A feasibility analysis is carried out to identify the constraints for each alternative
from both technical and business perspective. This will incorporate:
 Economic feasibility
 Technical feasibility
 Operational feasibility
 Legal and contractual feasibility
 Political feasibility
pg. 30
 STAGE 6: PERFORMING THE SELECTION PROCEDURE
Selection procedure is the process of identifying the best match between the
available options and the identified requirements. In this process, the company
requests for a proposal from prospective providers, evaluates the proposal, and
selects the best available alternative.
 Some of the common methods comprise
a. Request for information (RFI): An RFI is used to seek information from
vendors for a specific intention. RFI should act as a tool for determining the
alternatives or associated alternatives for meeting the organization’s needs.
b. Request for bid (RFB): An RFB is designed to procure specific items or
services and used where either multiple vendors are equally competent of
meeting all of the technical and functional specifications or only one provider
can meet them
c. Request for proposal (RFP): RFP specifies the minimal acceptable
requirements, including functional, technical, and contractual aspects. This
document offers flexibility to respondents to further define the requested
requirements. RFPs can be a lead to a purchase or continued negotiation.
STAGE 7: IMPLEMENTING THE SELECTED SOLUTION
During this process, the application is also tested and user reactions are
evaluated. After the application or prototype of the application has passed user
requirements, they can be deployed. Under this circumstance, the company
management may deal with organizational issues such as conversion strategies,
training, and resistant to change.
STAGE 8: REVIEWING AND MONITORING THE ACQUISITION PROCESS
 This process can involve external evaluation to make sure the procedures and
processes in place and whether the acquisition was in compliance with
institutional processes and operating procedures.

CRITERIA FOR SELECTING A SOFTWARE APPLICATION PACKAGE TO USE

 Usability and functionality- User easiness to learn
 Portability –easy to install from one computer to another.
 Documentation – manuals prepared by developer having details on how to
install use and maintain the software
 System flexibility and scalability
 Easy Maintenance and operational requirement
 Authenticity
 Reliability and System security
pg. 31
  Compatibility and system configuration- compatible with the existing hardware
and operating system
 Cost- consider cost. Try avoiding freeware
 User needs- user needs should dictate the system
 Upgradeability

DESCRIBING INFORMATION SYSTEM ACQUISITION METHODS

This methods include:
i. Buying the Applications (Off-the-Shelf Solution)/ Buy a prepackaged system
from a software development company or consulting firm. Example: Payroll
system.
Advantages
1. Easily be installed and run
2. Cheaper than in-house developed systems
3. Readily available
4. Minor or no errors since they are thoroughly tested
5. They can easily be modified to meet users’ needs
ADVANTAGES DISADVANTAGES
 Shorter  Incompatibility with
implementation time company needs
 Use of proven  Incompatibility between
technology different apps
 Availability of outside  Limitation on the s/w
technical expertise customization
 Easier to define costs  Have no control over s/w
improvement
 Frequent software  Long term reliance on
updates vendor support
 The price is usually  Specific H/w or S/w
cheaper requirements
 Minimal IT personnel

pg. 32
 ii. Leasing the information system- the use of an information system for a fixed period of time
at an agreed amount of money for the lease.

Advantages and Disadvantages of ‘Lease’ Option

ADVANTAGES DISADVANTAGES
 Shorter time  May not exactly fit with
implementation company needs
 Cost saving (cheaper  Limitation on the
than buy option) software customization
 Ease to maintain cash  Have no control over
flow S/w improvements
 Required only minimum  Specific H/w or S/w
IT staff requirements
 Less risky to anticipate  Include an interest
technology updates component that a cash
purchase wdn’t include

iii. Developing the applications in-house/Build your own/ End user development:
Individual users and departments build their own custom systems to support
their individuals.

Advantages and Disadvantages of ‘In-house development’ Option

ADVANTAGES DISADVANTAGES
 Best fit with the  Required more IT
company reqts personnel
 Have control over s/w  High overhead cost
imprvmnts
 Have all of the required  Time consuming
features
 Main core  Problem with usability of
competencies and the system
maintain level of quality
service
 Make a distinction with  High switching cost
other firm
 Difficult to update to
newer technology.

pg. 33
 iv. Outsourcing the applications/ Outsource development to a 3rd party: outside
organization custom build a system to an organization’s specifications. Good
option when an organization does not have adequate resources or expertise.
Meaning:
- is a strategic use of outside resources to perform activities traditionally handled
by internal staff and resources
- The practice of turning over responsibility of some to all of an organization’s
information systems development and operations to an outside firm
- The process of turning over an organization computer center,
telecommunication network or application development to external vendors
Types of outsourcing relationships
- partnership
- service provider
- Vendor.
- Basic relationship
- Preferred relationship
- Strategic relationship
Why Outsource?
- Cost and quality concerns
- Problems in IS performance
- Supplier pressures.
- Simplifying, downsizing, and reengineering.
- Financial factors.
- Organizational culture
- Internal irritants
Advantages and Disadvantages of Outsourcing
ADVANTAGES DISADVANTAGES
 Cost Reduction  Loss of organizational
competencies
 Access to world class  Reduction in quality of
specialist providers services
 Improved focus on core  Cost escalation from
business unforeseen expenses
 Subcontracting of
workload
 Better risk management

FACTORS FOR SUCCESS AND FAILURES IN IS ACQUISITION

pg. 34
Factors of Success Factors of Failure
 Understanding of  Short term benefits
company objectives motivation
 Strategic vision and plan  Unqualified service
providers (vendors)
 Executive and  Domination of service
management level providers in decision
support making
 Comprehensive financial  Lack of management
justification capability
 Use of external expertise  Failure in IS Acquisition
in decision process planning
 Open communication  Cultural issue (Resistant to
with users change)
 Careful selection of the  Lack of defined process
vendor and change management
 Ongoing management of
the acquisition
 Periodical performance
review

Criteria for information system acquisition

- Vendors background
- Security
- Cost benefit analysis
- Performance measure
- Maintenance requirements
Topic 6: INFORMATION SYSTEMS MAINTENANCE
Meaning:
• Modifications or corrections made to an information system after it has been
released to its customers
• Changing an information system while it is in operation
• Evolving an information system to adapt to changing business conditions and user
needs
Explain the importance of IS
- To control the creation and growth records.
- To reduce operating costs.
- To improve efficiency and productivity.
pg. 35
 - To assimilate new records management technologies.
- To ensure regulatory compliance.
- To safeguard vital information.
- To support better management decision making by ensuring that managers
have the required information during decision making.
- To foster professionalism in running the business.

Maintenance Process
Maintenance Process Alternative
- Classification and - Obtain maintenance
Identification request
- Analysis - Transform requests
into changes
- Design - Design changes
- Implementation - Implement changes
- System Test
- Acceptance Test
- Delivery
Categories of Maintenance/ technique of maintaining
- Corrective Maintenance- fixing bugs. Changes made to a system to repair flaws
in its design, coding, or implementation
- Adaptive Maintenance - No change to functionality, but now works under new
conditions. Changes made to a system to evolve its functionality to changing
business needs or technologies.
- Perfective Maintenance- adds something new; makes the system “better”.
Changes made to a system to add new features or to improve performance.
Preventive Maintenance- enhances internal structure of system without
affecting external behavior. Changes made to a system to avoid possible future
problems.
Importance of preventive maintenance
- Ensure the quality of your results extends the life of your system
- Enables traceability via records
- Ensure implementation of the latest factory developments
Factors that influence system maintainability
- Latent defects
- Number of customers for a given system
- Quality of system documentation
- Maintenance personnel
pg. 36
 - Tools
- Well-structured programs
Maintenance Terms
- Configuration Control Board (CCB) - organizational unit that makes decisions
about what proposed maintenance changes will actually be made.
- Regression testing - testing a modified system with some of the test cases with
which it was originally tested to make sure that only those functions that were
meant to change actually behave differently.
- Releases - planned collections of maintenance changes that are applied to a
system before it is delivered to customers.
- Patches - emergency fixes to a system that are delivered to customers between
scheduled releases.
- Configuration management - the process of keeping track of different versions
of a system that have been supplied to different customers and that must be
maintained separately.
- Ripple effect - The (usually unintended) effects that a change in one part of a
system has on other parts of the system
- Impact analysis - analysis of a planned modification to a system in an effort to
determine all of the components of the system that will be affected by the
modification, including ripple effects
- System decay - a degradation of system structure and quality over time due to
poorly planned and executed changes.
- Program comprehension - the human process of understanding a piece of
software code.
- Porting - a type of adaptive maintenance in which a system is translated from
one operating system, language, or platform to another.
Topic 7: ROLE OF INFORMATION SYSTEM (IS) IN ORGANIZATION CHANGE
Meaning of organizational change
- is an approach to shifting/transitioning individuals, teams, and organizations
from a current state to a desired future state

Examples of organizational change

1. Mission changes,
2. Strategic changes,
3. Operational changes (including Structural changes),
4. Technological changes,
5. Changing the attitudes and behaviors of personnel
pg. 37
 Importance of organizational change

- It improves the performance of any organization.

- Enable an organization to remain relevant and competitive
- It benefits the company's mission and leads to growth.
- Enable personnel in an organization to learn new behaviors and skills
Change management
- It is an organizational process aimed at helping change stakeholders to accept
and embrace changes in their business environment
- It refers to a project management process where changes to a project are
formally introduced and approved
- Is the utilization of basic structures and tools to control any organizational
change effort.
How to make a successful organizational change
- Ensure an Effective Communications of the change operation to the workers
- Devise an effective education, training and/or skills upgrading scheme for the
organization.
- Counter resistance from the employees of companies and align them to overall
strategic direction of the organization.
- Provide personal counseling (if required) to alleviate any change-related fears.
- Monitoring of the implementation and fine-tuning as required.
- Monitor assumptions, risks, dependencies, costs, return on investment, dis-
benefits and cultural issues affecting the progress of the associated work

Successful Organizational Change Management strategies include:

 Agreement on a common vision for change -- no competing initiatives.

 Strong executive leadership to communicate the vision and sell the business
case for change.
 A strategy for educating employees about how their day-to-day work will
change.
 A concrete plan for how to measure whether or not the change is a success --
and follow-up plans for both successful and unsuccessful results.
 Rewards, both monetary and social, that encourage individuals and groups to
take ownership for their new roles and responsibilities.

How to Control Organizational Changes

1. Anticipate change. Change is inevitable and you should always be prepared for
it.

pg. 38
 2. Communicate to employees that change is inevitable and rally them to support
the changes by educating them on the benefits of change in the organization.
3. Identify the conditions that are necessary to implement and sustain positive
change. Identify the people who will spearhead the implementation of the
intended change. Employees will embrace change if they are involved in the
management of change.
4. Embrace change quickly and implement necessary requirements to achieve
desired goals. This is achieved by monitoring and adapting to change
immediately as it happens. For change to succeed, there must be commitment
especially from the senior management of the organization.

Topic 7: INFORMATION SYSTEM ETHICS

Meaning
These are standards of conduct as they pertain to the use of information systems.
Explaining ethical issues in IS
1. Computer literacy: knowing how to use a computer
2. Digital divide: the gap between the people with computer access and those
with not.
3. Privacy: protecting one’s personal information
4. Identity theft: stealing of another’s social security numbers, credit card number,
or other personal information.
5. Information accuracy: Deals with authentication and fidelity of information.
6. Information property: Deals with who owns information about individuals and
how information can be sold and exchanged
7. Information accessibility: Deals with what information a person has the right to
obtain about others and how the information can be used
8. Issues in information accessibility:
- Carnivore: software application designed to be connected to Internet Service
Providers’ computers and eavesdrops on all communications.
- Electronic Communications Privacy Act (ECPA): it offered stronger support for
voice mail than it did for e-mail. No other laws at federal or state levels protect
e-mail privacy
- Monitoring e-mail
9. The need for a code of ethical conduct
Business ethics
Plagiarism

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 Cybersquatting: registering a domain name and then trying to sell the name for
big bucks to a person, company. Domain names are a scarce resource –one of
the few scarce resources in cyberspace
10.Computer crime: the act of using a computer to commit an illegal act.
Examples:
- Stealing time on company computers
- Breaking into government Web sites
- Stealing credit card information
- Stealing or compromising data
- Gaining unauthorized computer access
- Violating data belonging to banks
- Intercepting communications
- Threatening to damage computer systems
- Disseminating viruses
- Hacking: one who gains unauthorized access, but without doing damage
- Cracking: one who breaks into computer systems for the purpose of doing
damage.
TYPES OF COMPUTER CRIME
- Data diddling: modifying data
- Salami slicing: skimming small amounts of money
- Phreaking: making free long distance calls
- Cloning: cellular phone fraud using scanners
- Carding: stealing credit card numbers online
- Piggybacking: stealing credit card numbers by spying
- Social engineering: tricking employees to gain access
- Dumpster diving: finding private info in garbage cans
- Spoofing: stealing passwords through a false login page
- Computer viruses and destructive code
- Virus – A destructive program that disrupts the normal functioning of computer
systems
Types viruses:
 Worm: usually does not destroy files; copies itself
 Trojan horses: Activates without being detected; does not copy itself
 Logic or time bombs: A type of Trojan horse that stays dormant for a period of
time before activating
COMPUTER SECURITY
Precautions taken to keep computers and the information they contain safe
from unauthorized access
Recommended Safeguards
- Implement a security plan to prevent break-ins
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- Have a plan if break-ins do occur
- Make backups!
- Only allow access to key employees
- Change passwords frequently
- Keep stored information secure
- Use antivirus software
- Use biometrics for access to computing resources
- Hire trustworthy employees
- Encryption –the process of encoding messages before they enter the network or
airwaves, then decoding them at the receiving end of the transfer
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