Friday 21 June 2019

Management Information System Development


DEVELOPMENTS OF MANAGEMENT INFORMATION SYSTEMS
Information is a corporate resource, as important as the capital, labour, know-how etc. and is being used for decision-making. Its quality, therefore, is required to be very high. Low quality information would adversely affect the organizational performance as it affects decision-making. The quality of information is the result of the quality of the input data, processing design, system design, system and procedures which generate such a data, and the management of the data processing function. Quality, unlike any other product, is not an absolute concept. Its level is determined with reference to the context and its use, and the user. Perfect quality just as perfect information is non-achievable and has cost-benefit implications.  

However, it is possible to measure the quality of information on certain parameters. All these parameters need not have a very high value. Some parameters may have lesser importance in the total value on account of their relevance in the information and its use. The quality of these important parameters is ensured by conducting a proper systems analysis, designing a suitable information system and ensuring its maintenance from time to time, and also subjecting it to audit checks to ensure the system integrity. The quality of the parameters is assured if the following steps are taken.

·         All the input is processed and controlled, as input and process design.
·         All updating and corrections are completed before the data processing begins.
·         Inputs (transactions, documents, fields and records) are subject to validity checks.
·         The access to the data files is protected and secured through an authorization scheme.
·         Intermediate processing checks are introduced to ensure that the complete data is processed right through, i.e. run to run controls.
·         Due attention is given to the proper file selection in terms of data, periods and so on.
·         Backup of the data and files are taken to safeguard corruption or loss of data.
·         The system audit is conducted from time to time to ensure that the information system specifications are not violated.
·         The system modifications are approved by following a set procedure which begins with authorization of a change to its implementation followed by an audit.
·         Systems are developed with a standard specification of design and development.
·         Information system processing is controlled through program control, process control and access control.
·         Ensure MIS model confirms consistency to business plan satisfying information needs to achieve business goals.

The assurance of quality is a continuing function and needs to be evolved over a period and requires to be monitored properly. It cannot be assessed in physical units of measure. The user of the information is the best judge of the quality.







9.1 COMPONENTS FOR DESIGN IN MIS
The business application system demands designing of systems suitable to the application in project. The major steps involved in the design are the following:

9.1.1 INPUT DESIGN
Input design is defined as the input requirement specification as per a format required. Input design begins long before the data arrives at the device. The analyst will have to design source documents, input screens and methods and procedures for getting the data into the computer

9.1.2 OUTPUT DESIGN
The design of the output is based on the requirement of the user – manager, customer etc. The output formats have to very friendly to the user. Therefore the designer has to ensure the appropriateness of the output format.

9.1.3 DEVELOPMENT
When the design and its methodology is approved, the system is developed using appropriate business models. The development has to be in accordance to a given standard. The norms have to be strictly adhered to

9.1.4 TESTING
Exhaustive and thorough testing must be conducted to ascertain whether the system produces the right results. Testing is time consuming: Test data must be carefully prepared, results reviewed and corrections made in the system. In some instances, parts of the system may have to be redesigned. Testing an information system can be broken down into three types of activities: unit testing, system testing and acceptance testing

1.      Unit testing – also the program testing consists of testing each program separately in the system. The purpose of such testing is to guarantee that programs are error free, but this goal is realistically impossible. Instead, testing should be viewed as a means of locating errors in programs, focusing on finding all ways to make a program fail. Once pinpointed, problems can be corrected
2.      System testing - tests the functioning of the information system as a whole. It tries to determine if discrete modules will function together as planned and whether discrepancies exist between the way the system actually works and the way it was conceived. Among the areas examined are performance time, capacity for file storage and handling peak loads, recovery and restart capabilities and manual procedures
3.      Acceptance testing provides the final certification that the system is ready to be used in a production setting. Systems tests are evaluated by users and reviewed by management. When all parties are satisfied that the new system meets their standards, the system is formally accepted for installation.

9.2 IMPLEMENTATION AND MAINTENANCE
Define systems conversion as the process of changing from the old system to the new system. Four main conversion strategies can be employed. They are the parallel strategy, the direct cutover strategy, the pilot strategy and the phased strategy.

9.2.1        PARALLEL STRATEGY
Both the old system and its potential replacement are run together for a time until everyone is assuring that the new one functions correctly. This is the safest conversion approach because, in the event of errors or processing disruptions, the old system can still be used as a backup. But, this approach is very expensive, and additional staff or resources may be required to run the extra system.

9.2.2        DIRECT CUTOVER STRATEGY
It replaces the old system entirely with the new system on an appointed day. At first glance, this strategy seems less costly than the parallel conversion strategy. But, it is a very risky approach that can potentially be more costly than parallel activities if serious problems with the new system are found. There is no other system to fall back on. Dislocations, disruptions and the cost of corrections are enormous.

9.2.3        PILOT STUDY STRATEGY
It introduces the new system to only a limited area of the organization, such as a single department or operating unit. When this version is complete and working smoothly, it is installed throughout the rest of the organization, either simultaneously or in stages.

9.2.4        PHASED APPROACH STRATEGY
It introduces the new system in stages, either by functions or by organizational units. If, for example, the system is introduced by functions, a new payroll system might begin with hourly workers who are paid weekly, followed six months later by adding salaried employees( who are paid monthly) to the system. If the system is introduced by organizational units, corporate headquarters might be converted first, followed by outlying operating units four months later.

Moving from an old system to a new system requires that end users be trained to use the new system. Detailed documentation showing how the system works from both a technical and end-user standpoint is finalized during conversion time for use in training and everyday operations. Lack of proper training and documentation contributes to system failure, so this portion of the systems development process is very important.


9.3 PRODUCTION AND MAINTENANCE
After the new system is installed and conversion is complete, the system is said to be in production. During this stage the system will be reviewed by both users and technical specialists to determine how well it has met its original objectives and to decide whether any revisions or modifications are in order. In some instances, a formal post implementation audit document will be prepared. After the system has been fine-tuned, it will need to be maintained while it is in production to correct errors, meet requirements or improve processing efficiency. Once a system is fully implemented and is being used in business operations, the maintenance function begins.

·         Systems maintenance is the monitoring, or necessary improvements. For example, the implementation of a new system usually results in the phenomenon known as the learning curve. Personnel who operate and use the system will make mistake simply because they are familiar with it. Though such errors usually diminish as experience is gained with a new system, they do point out areas where a system may be improved.
·         Maintenance is also necessary for other failures and problems that arise during the operation of a system. End-users and information systems personnel then perform a troubleshooting function to determine the causes of and solutions to such problems.
·         Maintenance also includes making modifications to an established system due to changes in the business organizations, and new e-business and ecommerce initiatives may require major changes to current business systems.


9.4 MANAGING AN E-BUSINESS 
Due to Internet capabilities and web technology, traditional business organization definition has undergone a change where scope of the enterprise now includes other company locations, business partners, customers and vendors.
·         It has no geographic boundaries as it can extend its operations where Internet works. All this is possible due to Internet and web moving traditional paper driven organization to information driven Internet enabled E-business enterprise.
·         E-business enterprise is open twenty-four hours, and being independent, managers, vendors; customers transact business anytime from anywhere. Internet capabilities have given E-business enterprise a cutting edge capability advantage to increase the business value.
·         It has opened new channels of business as buying and selling can be done on Internet.
·         It enables to reach new markets across the world anywhere due to communication capabilities.
·         It has empowered customers and vendors / suppliers through secured access to information to act, wherever necessary.
·         The cost of business operations has come down significantly due to the elimination of paper-driven processes, faster communication and effective collaborative working. The effect of these radical changes is the reduction in administrative and management overheads, reduction in inventory, faster delivery of goods and services to the customers.
·         In E-business enterprise traditional people organization based on 'Command Control' principle is absent.
·         It is replaced by people organization that is empowered by information and knowledge to perform their role.
·         They are supported by information systems, application packages, and decision-support systems.
·         It is no longer functional, product, and project or matrix organization of people but E-organization where people work in network environment as a team or work group in virtual mode.
·         E-business enterprise is more process-driven, Technology-enabled and uses its own information and knowledge to perform. It is lean in number, flat in structure, broad in scope and a learning organization.
·         In E-business enterprise, most of the things are electronic, use digital technologies and work on databases, knowledge bases, directories and document repositories.

The business processes are conducted through enterprise software like ERP, SCM, and CRM supported by data warehouse, decision support, and knowledge management systems. Today most of the business organizations are using Internet technology, network, and wireless technology for improving the business performance measured in terms of cost, efficiency, competitiveness and profitability. They are using E-business, Ecommerce solutions to reach faraway locations to deliver product and services. The enterprise solutions like ERP, SCM, and
CRM run on Internet (Internet / Extranet) & Wide Area Network (WAN).

The business processes across the organization and outside run on E-technology platform using digital technology. Hence today's business firm is also called E-enterprise or Digital firm. The paradigm shift to E-enterprise has brought four transformations, namely:
·         Domestic business to global business
·         Industrial manufacturing economy to knowledge-based service economy
·         Enterprise Resource Management to Enterprise Network Management
·         Manual document driven business process to paperless, automated, electronically transacted business process.

These transformations have made conventional organization design obsolete. In E-enterprise, business is conducted electronically. Buyers and sellers through Internet drive the market and Internet-based web systems. Buying and selling is possible on Internet. Books, CDs, computer, white goods and many such goods are bought and sold on Internet.

The new channel of business is well-known as Ecommerce. On the same lines, banking, insurance, healthcare are being managed through Internet E-banking, E-billing, E-audit, & use of Credit cards, Smart card, ATM, E-money is the examples of the Ecommerce application. The digital firm, which uses Internet and web technology and uses E-business and Ecommerce solutions, is a reality and is going to increase in number.

MIS for E-business is different compared to conventional MIS design of an organization. The role of MIS in E-business organization is to deal with changes in global market and enterprises. MIS produces more knowledge-based products. Knowledge management system is formally recognized as a part of MIS. It is effectively used for strategic planning for survival and growth, increase in profit and productivity and so on. To achieve the said benefits of E-business organization, it is necessary to redesign the organization to realize the benefits of digital firm.
·         The organization structure should be lean and flat.
·         Get rid of rigid established infrastructure such as branch office or zonal office.
·         Allow people to work from anywhere
·         Automate processes after reengineering the process to cut down process cycle time.
·         Make use of groupware technology on
·         Internet platform for faster response processing

Another challenge is to convert domestic process design to work for international process, where integration of multinational information systems using different communication standards, country-specific accounting practices, and laws of security are to be adhered strictly.

Internet and networking technology has thrown another challenge to enlarge the scope of organization where customers and vendors become part of the organization. This technology offers a solution to communicate, coordinate, and collaborate with customers, vendors and business partners. This is just not a technical change in business operations but a cultural change in the mindset of managers and workers to look beyond the conventional organization. It means changing the organization behaviour to take competitive advantage of the E-business technology.

The last but not the least important is the challenge to organize and implement information architecture and information technology platforms, considering multiple locations and multiple information needs arising due to global operations of the business into a comprehensive MIS.


9.5 E-COMMERCE
E-commerce is a second big application next to Enterprise Resource Planning (ERP). It is essential deals with buying and selling of goods. With the advent of intent and web technology, E-Commerce today covers an entire commercial scope online including design and developing, marketing, selling, delivering, servicing, and paying for goods. Some E-Commerce application adds order tracking as a feature for customer to know the delivery status of the order.

The entire model successfully works on web platform and uses internet technology.
Ecommerce process has two participants, namely Buyer and Seller, like in traditional business model. Unique and typical to E-commerce there is one more participant to seller by authorization and authentication of commercial transaction. E-Commerce process model can be viewed in four ways and categories:
·         B2C: Business Organization to Customer
·         B2B: Business Organization to Business
·         C2B: Customer to Business Organization
·         C2C: Customer to Customer

B2C model - Business organization uses websites or portals to offer information about product, through multimedia clippings, catalogues, product configuration guidelines, customer histories and so on. A new customer interacts with the site and uses interactive order processing system for order placements. On placements of order, secured payment systems comes into operation to authorize and authenticate payment to seller. The delivery system then takes over to execute the delivery to customer.

B2B model - Buyer and seller are business organizations. They exchange technical and commercial through websites and portals. Then model works on similar line like B2C. More advanced B2B model uses Extranet and Conducts business transaction based on the information status displayed on the buyer’s application server.

C2B model - Customer initiates actions after logging on to seller’s website or to server. On the server of the selling organization, E-Commerce applications are present for the use of the customer. The entire Internet banking process work on C2B model where account holders of the bank transact a number of requirements such as seeking account balance, payment and so on

C2C model - Customer Participates in the process of selling and buying through the auction website. In this model, website is used for personal advertising of products or services. E-Newspaper website is an Example of advertising and selling of goods to customer.

B2B model - The participants in E-business are two organizations with relations as buyer-seller, distributor-dealer and so on.

9.6 E-COLLABORATION
Every business has a number of work scenarios where group of people work together to complete the tasks and to achieve a common objective. The group could be teams or virtual teams with different member strength. They come together to platform a task to achieve some results. The process is called Collaboration. The Biggest Advantage of E-Collaboration
·         It taps the collective wisdom, knowledge and experience of the members.
·         The collaboration team or group could be within the organization and between the organizations as well
·         Since, E-Collaboration works on an internet platform and uses web technology, work group/team need not be at one physical location.
·         E-collaboration uses E-Communication capabilities to perform collaborative tasks or project assignment.
·         Its effectiveness is increased by software ‘GroupWare’ that enables the members of the group to share information, invoke an application and work together to create documents and share them and so on.
·         E-Collaboration helps work effectively on applications like calendaring and scheduling tasks, event, project management, workflow application, work group application.
·         E-collaboration system components are internet, Intranet, Extranet and LAN, WAN networks for communication through GroupWare tools, browser.

Let us illustrate the model using an event in the business such as receipt of material for a job to
be processed on the shop floor. In this event there is a transaction receipt of material, which needs to be processed, and then a workgroup will use this information of material receipt. Each member of this workgroup has a different goal.

9.7 INTRANET
An Intranet is an internal use, private network inside an organization that uses the same kind of software which would also be found on the Internet. It is an inter-connected network within one organization that uses Web technologies for the sharing of information internally, not worldwide. Such information might include organization policies and procedures, announcements, or information about new products.

An intranet is a restricted-access network that works like the Web, but isn't on it. Usually owned and managed by a company, an intranet enables a company to share its resources with its employees without confidential information being made available to everyone with Internet access. A network based on TCP/IP protocols (an internet) belonging to an organization, usually a corporation, accessible only by the organization's members, employees, or others with authorization. An intranet's Web sites look and act just like any other Web sites, but the firewall surrounding an intranet fends off unauthorized access. Like the Internet itself, intranets are used to share information.

An intranet is an information portal designed specifically for the internal communications of small, medium or large businesses, enterprises, governments, industries or financial institutions of any size or complexity. Intranets can be custom-designed to fit the exact needs of businesses no matter where they are situated. A user of intranets consists mainly of:
·         Members of the executive team
·         Accounting and order billing
·         Managers and directors
·         Sales people and support staff
·         Customer service, help desk, etc.

9.8 EXTRANET
An extranet is a private network that uses the Internet protocols and the public telecommunication system to securely share part of a business's information or operations with suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part of a company's intranet that is extended to users outside the company. An extranet requires security and privacy.

A new buzzword that refers to an intranet that is partially accessible to authorized outsiders. Whereas an intranet resides behind a firewall and is accessible only to people who are members of the same company or organization, an extranet provides various levels of accessibility to outsiders. You can access an extranet only if you have a valid username and password, and your identity determines which parts of the extranet you can view. An extranet is somewhat very similar to an intranet. Extranets are designed specifically to give external, limited access to certain files of your computer systems to:
·         Certain large or privileged customers
·         Selected industry partners.
·         Suppliers and subcontractors etc
Therefore, a carefully designed extranet can bring additional business to your company. Intranets and extranets all have three things in common:
·         They both use secured Internet access to the outside world.
·         Both can drastically save your company or organization a lot of money.
·         Both need a user ID & password to control access to the whole system.

The professional development team at My Web Services has the expertise and the right tools to design the right intranet or extranet that will meet your exact needs, both for today and the Future.

9.9 THE INTERNET
Internet is a global network of interconnected computers, enabling users to share information along multiple channels. Typically, a computer that connects to the Internet can access information from a vast array of available servers and other computers by moving information from them to the computer's local memory. The same connection allows that computer to send information to servers on the network; that information is in turn accessed and potentially modified by a variety of other interconnected computers. A majority of widely accessible information on the Internet consists of inter-linked hypertext documents and other resources of the World Wide Web (WWW). Computer users typically manage sent and received information with web browsers; other software for users' interface with computer networks includes specialized programs for electronic mail, online chat, file transfer and file sharing.

The movement of information in the Internet is achieved via a system of interconnected computer networks that share data by packet switching using the standardized Internet Protocol Suite (TCP/IP). It is a "network of networks" that consists of millions of private and public, academic, business, and government networks of local to global scope that are linked by copper wires, fiber- optic cables, wireless connections, and other technologies. Difference between internet, intranet and extranet as follow:

 Internet is an electronic network of computers that includes nearly every university, government, and research facility in the world. Also included are many commercial sites. It started with four interconnected computers in 1969 and was known as ARPAnet. A network of computer networks which operates world-wide using a common set of communications protocols. The vast collection of inter-connected networks across the world that all use the TCP/IP protocols

Internet is a global network connecting millions of computers. It is a worldwide network of computer networks. It is an interconnection of large and small networks around the globe. The Internet began in 1962 as a resilient computer network for the US military and over time has grown into a global communication tool of more than 12,000 computer networks that share a common addressing scheme.


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