CHAPTER 1

INTRODUCTION TO INFORMATION MANAGEMENT

Data, Information, Information System, evolution, types based on functions and

hierarchy, Enterprise and functional information systems.

DATA

Data is defined as facts or figures, or information that's stored in or used by a computer. An

example of data is information collected for a research paper. the quantities, characters, or
symbols on which operations are performed by a computer, which may be stored and
transmitted in the form of electrical signals and recorded on magnetic, optical, or mechanical
recording media.
INFORMATION

Information is a stimulus that has meaning in some context for its receiver. When information
is entered into and stored in a computer, it is generally referred to as data. After processing
(such as formatting and printing), output data can again be perceived as information.

Information (shortened as info or info.) is that which informs, i.e. that from which data can be
derived. At its most fundamental, information is any propagation of cause and effect within a
system. Information is conveyed either as the content of a message or through direct or
indirect observation of something. That which is perceived can be construed as a message, and
in that sense, information is always conveyed as the content of a message. Information can be
encoded into various forms for transmission and interpretation. For example, information may
be encoded into signs and transmitted via signals.

These are difficult times for all organizations of all sizes and in all sectors. On the one hand,
customers have ever-increasing expectations in terms of the speed and quality of service they
expect and, on the other resources are continually under pressure.

This document sets out how effective information and records management can help any
organization to move forward in this challenging environment through,

 achieving cost and efficiency savings.

 making best use of information assets and
 Taking advantage of the opportunities offered by new technologies.

Intelligence

Intelligence has been defined in many ways such as in terms of one's capacity for logic,
abstract thought, understanding, self-awareness, communication, learning, emotional
knowledge, memory, planning, creativity and problem solving.
Knowledge
Knowledge is a familiarity, awareness or understanding of someone or something, such as
facts, information, descriptions, or skills, which is acquired through experience or education
by perceiving, discovering, or learning. Knowledge can refer to a theoretical or practical
understanding of a subject.

Importance:
 Learning Better
 Setting Goals as You Learn
 Learn Complex Things Faster
 Knowledge Helps You Solve Problems
 Understanding Yourself

Information Technology (IT)

Information technology (IT) is the application of computers and telecommunications
equipment to store, retrieve, transmit and manipulate data, often in the context of a business
or other enterprise.

Need:
 Education is a lifelong process therefore anytime anywhere access to it is the need
 Information explosion is an ever increasing phenomena therefore there is need to get
access to this information
 Education should meet the needs of variety of learners and therefore IT is important
in meeting this need
 It is a requirement of the society that the individuals should posses technological literacy
 We need to increase access and bring down the cost of education to meet the
challenges of illiteracy and poverty-IT is the answer
Importance:
 access to variety of learning resources
 immediacy to information
 anytime learning
 anywhere learning
 collaborative learning
 multimedia approach to education
 authentic and up to date information
 access to online libraries
 teaching of different subjects made interesting
 educational data storage
 distance education
 access to the source of information
 Multiple communication channels-e-mail, chat, forum, blogs, etc.
 access to open courseware
 better accesses to children with disabilities
 reduces time on many routine tasks
INFORMATION SYSTEM
An information system (IS) is a system composed of people and computers that
processes or interprets information. The term is also sometimes used in more restricted senses
to refer to only the software used to run a computerized database or to refer to only a
computer system.

Importance:
1. To control the creation and growth of records

Despite decades of using various non-paper storage media, the amount of paper in our offices
continues to escalate. An effective records information system addresses both creation control
(limits the generation of records or copies not required to operate the business) and records
retention (a system for destroying useless records or retiring inactive records), thus stabilizing
the growth of records in all formats.

2. To reduce operating costs

Recordkeeping requires administrative dollars for filing equipment, space in offices, and
staffing to maintain an organized filing system (or to search for lost records when there is no
organized system).It costs considerably less per linear foot of records to store inactive records
in a Data Records Center versus in the office and there is an opportunity to effect some cost
savings in space and equipment, and an opportunity to utilize staff more productively - just by
implementing a records management program.

3. To improve efficiency and productivity

Time spent searching for missing or misfiled records are non-productive. A good records
management program (e.g. a document system) can help any organization upgrade its
recordkeeping systems so that information retrieval is enhanced, with corresponding
improvements in office efficiency and productivity. A well designed and operated filing
system with an effective index can facilitate retrieval and deliver information to users as
quickly as they need it.

4. To assimilate new records management technologies

A good records management program provides an organization with the capability to

assimilate new technologies and take advantage of their many benefits. Investments in new
 computer systems whether this is financial, business or otherwise, don't solve filing problems
unless current manual recordkeeping or bookkeeping systems are analyzed (and occasionally,
overhauled) before automation is applied.

5. To ensure regulatory compliance

In terms of recordkeeping requirements, China is a heavily regulated country. These laws can
create major compliance problems for businesses and government agencies since they can be
difficult to locate, interpret and apply. The only way an organization can be reasonably sure
that it is in full compliance with laws and regulations is by operating a good management
information system which takes responsibility for regulatory compliance, while working
closely with the local authorities. Failure to comply with laws and regulations could result in
severe fines, penalties or other legal consequences.

6. To minimize litigation risks

Business organizations implement management information systems and programs to reduce

the risks associated with litigation and potential penalties. This can be equally true in
Government agencies. For example, a consistently applied records management program can
reduce the liabilities associated with document disposal by providing for their systematic,
routine disposal in the normal course of business.

7. To safeguard vital information

Every organization, public or private, needs a comprehensive program for protecting its vital
records and information from catastrophe or disaster, because every organization is vulnerable
to loss. Operated as part of a good management information system, vital records programs
preserve the integrity and confidentiality of the most important records and safeguard the vital
information assets according to a "Plan" to protect the records. This is especially the case for
financial information whereby ERP (Enterprise Resource Planning) systems are being
deployed in large companies.

8. To support better management decision making

In today's business environment, the manager that has the relevant data first often wins, either
by making the decision ahead of the competition, or by making a better, more informed
decision. A good management information system can help ensure that managers and
executives have the information they need when they need it.

9. To preserve the corporate memory

An organization's files, records and financial data contain its institutional memory, an
irreplaceable asset that is often overlooked. Every business day, you create the records, which
could become background data for future management decisions and planning.

10. To foster professionalism in running the business

A business office with files, documents and financial data askew, stacked on top of file
cabinets and in boxes everywhere, creates a poor working environment. The perceptions of
 customers and the public, and "image" and "morale" of the staff, though hard to quantify in
cost-benefit terms, may be among the best reasons to establish a good management
information system.

EVOLUTION

The first business application of computers (in the mid- 1950s) performed repetitive, high-
volume, transaction-computing tasks. The computers crunched numbers, summarizing and
organizing transactions and data in the accounting, finance, and human resources areas.
Such systems are generally called transaction processing systems (TPSs).

Management Information Systems (MISs): these systems access, organize, summarize and
display information for supporting routine decision making in the functional areas. Office
Automation Systems (OASs): such as word processing systems were developed to support
office and clerical workers.

Decision Support Systems: were developed to provide computer-based support for complex,
non-routine decision. „ End- user computing: The use or development of information systems
by the principal users of the systems ‘outputs, such as analysts, managers, and other
professionals.

Intelligent Support System (ISSs): Include expert systems which provide the stored
knowledge of experts to non-experts, and a new type of intelligent system with machine-
learning capabilities that can learn from historical cases. „ Knowledge Management Systems:
Support the creating, gathering, organizing, integrating and disseminating of organizational
knowledge.

Data Warehousing: A data warehouse is a database designed to support DSS, ESS and other
analytical and end-user activities. „ Mobile Computing: Information systems that support
employees who are working with customers or business partners outside the physical
boundaries of their company; can be done over wire or wireless networks.

TYPES BASED ON FUNCTION AND HIERARCHY

Transaction Processing Systems (TPS)

Computerized system that performs and records the daily routine transactions
necessary to conduct the business; these systems serve the operational level of the
organization.
 Transaction Processing System are information system that processes data resulting
from the occurrences of business transactions
 Their objectives are to provide transaction in order to update records and generate
reports i.e. to perform store keeping function
 The transaction is performed in two ways: Batching processing and Online
transaction processing.
 Example: Bill system, payroll system, Stock control system.

Management Information Systems (MIS)

Information system at the management level of an organization that serves the functions of
planning, controlling, and decision making by providing routine summary and exception
reports.
 Management Information System is designed to take relatively raw data available
through a Transaction Processing System and convert them into a summarized and
aggregated form for the manager, usually in a report format. It reports tending to be
used by middle management and operational supervisors.
 Many different types of report are produced in MIS. Some of the reports are a summary
report, on-demand report, ad-hoc reports and an exception report.
 Example: Sales management systems, Human resource management system.

Decision Support Systems (DSS)

Information system at the management level of an organization that combines data and sophisticated
analytical models or data analysis tools to support semi-structured and unstructured decision making
 Decision Support System is an interactive information system that provides
information, models and data manipulation tools to help in making the decision in a
semi-structured and unstructured situation.
 Decision Support System comprises tools and techniques to help in gathering relevant
information and analyse the options and alternatives, the end user is more involved in
creating DSS than an MIS.
 Example: Financial planning systems, Bank loan management systems.

Executive Information System (EIS)

An executive information system (EIS) is a decision support system (DSS) used to assist senior
executives in the decision-making process. It does this by providing easy access to important data
needed to achieve strategic goals in an organization. An EIS normally features graphical displays on
an easy-to-use interface.

FUNCTIONAL INFORMATION SYSTEM

Functional Information System is based on the various business functions such as Production,
Marketing, Finance and Personnel etc. These departments or functions are known as functional areas
of business. Each functional area requires applications to perform all processing related to the
function. The popular functional areas of the business organization are:
• Financial Information System
• Marketing Information System
• Production/Marketing Information System
• Human Resource Information System
Financial Information System: Financial information system is a sub-system of organizational
management information system. This sub-system supports the decision-making process of financial
functions at the level of an organization.

Marketing Information System: This sub-system of management information system provides

information about various functions of the marketing system of an organization. Marketing is another
functional area of the business organization, which is engaged in marketing (selling) of its products to
its customers.

• The marketing identification function

• The purchase motivation function.
• The product adjustment function
• The physical distribution function
• The communication function
• The transaction function
• The post-transaction function

Production /manufacturing Information System: Manufacturing or production information system

provides information on production /operation activities of an organization and thus facilitates the
decision-making process of production managers of an organization.

• Product Design

Human Resources Information System: This functional information system supports the functions
of human resource management of an organization. The human resource management function, in its
narrow sense, it also known as personnel management. The function involves:

• Manpower planning.
• Staffing
• Training and development
• Performance evaluation, and
• Separation activities

ENTERPRISE INFORMATION SYSTEM

An Enterprise Information System (EIS) is a type of information system that by integration improves
the functions of an enterprise’s business processes. This means typically offering higher service
quality, dealing with voluminous data, and can support some large and complex
organizations/enterprises.
Functions:
Accounting and Finance: The accounting and finance function keeps track of the organization’s
finances which includes allocations, planning, accounting, revenue control, tax management, etc.
Customer Relationship Management (CRM): The CRM function helps businesses to manage
client operations, such as marketing, sales, and customer service. This helps employees monitor sales
probabilities and customer channels. CRM can also be employed in marketing operation
management, including advertisements and lead generation campaigns.
Supply Chain: Supply chain functions of EIS keep a check on products from the point of
manufacturing to distribution. Notable features of it include inventory purchasing, shipping, tracking,
refunds, claim processing, supplier scheduling, etc.
Inventory Management: The inventory management function of EIS makes it easy for businesses
to track resources and supplies through purchase orders, automatic ordering, inventory control, and
scanning.
Manufacturing: Manufacturers and other production-oriented amenities can execute the
manufacturing to control the quality control, work orders, planning, manufacturing operations, bill of
resources, and the overall production cycle of the organization.
Human Resources: The human resources offer hands from the very initial i.e., hiring process till
the recruitment through succession. Human resources facilities services such as payroll, time
management, learning management, performance management, and applicant tracking.
Business Intelligence: Business intelligence accumulates and inspects data from various sources
and helps users define a better organization’s solution. Some of its main features are scheduled
reporting, visualization tools, customizable dashboards, and real-time data access.
 CHAPTER 2

SYSTEM ANALYSIS AND DESIGN

System development methodologies, Systems Analysis and Design, Data flow

Diagram (DFD), Decision table, Entity Relationship (ER), Object Oriented Analysis
and Design (OOAD), UML diagram.

SYSTEM ANALYSIS AND DESIGN

Term system is derived from the Greek word ‗Systema‘which means an organized
relationship among functioning units or components. A system is an orderly
grouping of interdependent components linked together according to a plan to
achieve a specific objective.

Characteristics of a System

 Organization
 Interaction
 Interdependence
 Integration

Elements :

 Outputs and Inputs

 Processor
 Control
 Feedback
 Environment

Types of system

Physical – These are tangible entities that may be static or dynamic in operation.
For example- parts of a computer center are the desks, chairs etc. that facilitate
operation of the computer. They are static and a programmed computer is dynamic.

Abstract System – These are conceptual or non-physical entities. For example- the
abstract conceptualization of physical situations. A model is a representation of a real
or planned system. A model is used to visualize relationships.

Deterministic System – It operates in a predictable manner and the interaction

between parts is known with certainty. For example: Two molecules of hydrogen and
one molecule of oxygen make water.

Probabilistic System – It shows probable behavior. The exact output is not known.
 For example: weather forecasting, mail delivery.
Social System- It is made up of people. For example: social clubs, societies

DATA FLOW DIAGRAM (DFD)

The Data Flow Diagram (DFD) is a graphical representation of the flow of data
through an information system. It enables you to represent the processes in your
information system from the viewpoint of data. The DFD lets you visualize how the
system operates, what the system accomplishes and how it will be implemented,
when it is refined with further specification.

Data flow diagrams are used by systems analysts to design information-processing

systems but also to model whole organizations. You build a DFD at the very
beginning of your business process modeling to model the functions your system has
to carry out and the interaction between those functions together with focusing on data
exchanges between processes. You can associate data with conceptual, logical, and
physical data models and object-oriented models.

There are two types of DFDs, both of which support a top-down approach to systems
analysis, whereby analysts begin by developing a general understanding of the system
and gradually break components out into greater detail:

 Logical data flow diagrams - are implementation-independent and describe the

system, rather than how activities are accomplished.
 Physical data flow diagrams - are implementation-dependent and describe
the actual entities (devices, department, people, etc.) involved in the current
system.