ABS

Amity Business School

MBA, Semester – 3
Management Of Software Projects
Module 1
Teena Bagga

1
 Module I ABS

• Basic Concepts of Information System

– Role of data and information,
– Systems Approach,
– Organization structures,
– Business Process,
– Introduction to Information Systems.

2
 MANAGEMENT CHALLENGES ABS

1. Design competitive and effective systems

2. Understand system requirements of global business environment

3. Create information architecture that supports organization’s goal

4. Determine business value of information systems

5. Design systems people can control, understand and use in a

socially, ethically responsible manner

3
 ABS

Data & Information

4
 Definitions ABS

• Management: What is management?

• Information: What is information?
• Systems: What are systems?
• What is an Organization
• Information Systems: What are Information Systems?
• Information Processing Systems:
• Management Systems
• Management Information Systems: What are They?

5
 What is Management? ABS

• Management:
– Planning
– Organizing
– Leading
– Controlling
– Communicating

6
 Information Concepts ABS

• Data vs. Information

– Data
• Raw facts
• Distinct pieces of information, usually formatted in
a special way
– Information
• A collection of facts organized in such a way that
they have additional value beyond the value of the
facts themselves

7
 Data ? ABS

– Distinct pieces of information, usually formatted in a special way. All

software is divided into two general categories: data and programs.
– Programs are collections of instructions for manipulating data.
– Data can exist in a variety of forms -- as numbers or text on pieces
of paper, as bits and bytes stored in electronic memory, or as facts
stored in a person's mind.
– Strictly speaking, data is the plural of datum, a single piece of
information. In practice, however, people use data as both the
singular and plural form of the word.
– The term data is often used to distinguish binary machine-readable
information from textual human-readable information. For example,
some applications make a distinction between data files (files that
contain binary data) and text files (files that contain ASCII data).

8
 What is information? ABS

• “ Information is data that has been processed into a form that is

meaningful to the recipient (USER) and is of real or perceived value
in current or prospective actions or decisions.”
• Information is critical :The information we have is not what we want, The
information we want is not the information we need, The information we need is
not available.
• Information is a resource :It is scarce, It has a cost, It has alternative uses,
There is an opportunity cost factor involved if one does not process information
• Characteristics
– Accurate, complete, economical, flexible, reliable, relevant, simple, timely,
verifiable, accessible, secure
• To ensure effective and efficient decision – making leading to
prosperity of the Organisation.

9
 Data  Information ABS

Data Transformation Information

10
 Transforming Data Into Information
ABS

Data Inputs Information Outputs

Query Response
External Internal
Capture
Data Data
Decision Outcome
Manipulation
Expert-System Advice
Storage
Transaction Document
Provision of Access
at User Location
Report

Organization Information System

Environment
11
 ABS

System Approach

12
 System ABS

• System
– A set of elements or components that interact
to accomplish goals
– A combination of components working
together

13
 What are systems? ABS

– input-process-output an orderly
arrangement of interdependent ideas or
constructs (ABSTRACT SYSTEM)
– a set of elements which operate
together to accomplish an objective
(PHYSICAL SYSTEM)
– Network: An Integrated environment for
a specific set of tasks

14
 What are systems? ABS

- “ A physical system is a set of components

(subsystems or elementary parts) that
operate together to achieve a common
objective (or multiple objective).”

15
 What are systems? ABS

• General Model of a System: Input, process

and output.
– The features which define and delineate a
system form its boundary. The system is inside
the boundary and the environment is outside
the boundary.
– a system is composed of subsystems
– Examples: stereo system. PC, automobile.

16
 What are systems? ABS

– The interconnections and interactions between

the subsystems are the INTERFACES.
– Example of a system: An information system:
– subsystems: PC Monitor, PC software, PC
hard disk, User.
– What is the boundary between the software
and the User?

17
System ABS

18
 Systems Concepts ABS

Systems Approach:
• a. Identify & establish the objective of the system
• b. Consider the totality of its relationships with its
environment
• c. Can not ignore the importance of the environment
internal or external
• d. Identify its components and their interactions.
• examples:
– 1. Human Resources
» skills inventory system
» managerial promotion system
» should they be separate or linked?
– 2. brokerage house
» central client or
» individual broker system
– 3. A TPS that has a very long response time

19
 Types of Systems ABS

– Classifications of Systems:
• a. Natural and Artificial
– Natural
» Occur in nature without human intervention
» Biological systems- immune systems,
digestive
– Artificial
» Human made or modified
» Information systems, stereo
» What about the immune system?
» Artificial systems are measured

20
 Types of Systems ABS

• Deterministic versus probabilistic

– deterministic: The interaction between the
parts or subsystems is known for certain;
» example: a computer program which
performs exactly to a set of instructions
– probabilistic: A system that can be described
in terms of probable behavior (a certain degree
of error);
» examples: An inventory system, a five year
old (who does not follow a certain set of
instructions).

21
 Types of Systems ABS

• Closed and open systems:

– Closed system: self contained, one that does
not exchange material, information, or energy
with its environment.
– Examples:
» A freshman in an 9:15 AM class;
» A chemical reaction in a sealed, insulated
container.

22
 Types of Systems ABS

– Relatively closed systems: in organizations

and in information processing, there are
systems that are relatively isolated from the
environment, but are not completely closed,
these will be considered closed systems.
– Examples:
» a pre 1990 manufacturing system
» a computer program with well defined
inputs, a process and an output (No agents)

23
 Types of Systems ABS

– Open Systems: exchange information,

material, or energy with the environment,
including random and undefined inputs.
– Examples:
» Biological Systems, and Organizational
Systems
– Open systems tend to have form and structure
– Adapt to changes in environment so as to
continue to exist

24
ABS

25
 Types of Systems ABS

• Human-Machine Systems: They both

perform some of the activities in the
accomplishment of a goal (making a
decision).
– the Machine elements are - hardware and
software are relatively closed and deterministic.
– the human element are open and probabilistic
» Examples: The computer doing the
computations, the human having a cup of
coffee and thinking about the answers.

26
 Systems Concepts ABS

» Effectiveness: the extend to which a

systems achieves its objectives
» Efficiency: consumption of inputs relative to
outputs
» Usability: the ability of the uses to use the
system
» Satisfaction: A subjective measure of "like"
or usability or effectiveness

27
 Organisation ABS

– “An Organization is a systematic arrangement of

people and technology intended to accomplish some
purpose.”
– Organizations are collectivities oriented to the pursuit
of relatively specific goals and exhibiting relatively
high formalized social structures. RATIONAL
– Organizations are collectivities whose participants
share a common interest in the survival of the system
and who engage in collective activities, informally
structured, to secure this end. NATURAL SYSTEM

28
 ABS

Organisation

29
 Organisation ABS

“A formal collection of people and other

resources established to accomplish a
set of goals”

30
 Organisation ABS

• Every Organization has 3 parts:

– 1. people: (workers, supervisors, consultants,
engineers, superintendents, etc.)
– 2. Tasks: the operations (paint, fix, print,
compress, etc.)
– 3. Management: Planning, Organizing,
leading, controlling the performance of people
engaged in the tasks
• Management includes: arranging,
conducting discussions and meetings
during which decisions are made about
how work would be done.
31
 Organizational Systems ABS

– The Organization as a system: The focus is

on interdependency of the subsystem
components of the system.
• 1. Subsystems: production, managerial,
adaption/innovation subsystem
• 2. Each subsystems has goals and contributes or
may be not to the whole system
• 3. thus encouraging the interdependency of the
subsystems.
• 4. The interdependency depends on
COMMUNICATION.

32
 Organizational Systems ABS

• Each specialized function (marketing,

manufacturing, etc) develop a distinctive nucleus
of operating procedures, values, and information
processing requirements.
– The adaptive (Strategic) may be oriented to: change,
innovation, the environment, and the future.
– The Managerial component is oriented toward: growth,
stability, efficiency, and "speed" in decision making.
– The production component may be keyed to: efficiency,
rationalization, and careful programming of activities.

33
 Organizational Systems ABS

• The Open systems approach to organizations

– a. differentiate functions to cope with environmental
change and Complexity.
– b. Organizations must design integrative mechanisms to
coordinate differentiated tasks and design feedback
systems for adaption.
– c. Organizations must also develop/incorporate multiple
paths to achieve the goals.
» Example: MicroSoft- Goal To be the largest
Software company. Started with DOS and developed
NEW products, marketing strategies.

34
 Organizations ABS

• Organizational structure
– Organizational subunits and the way they are
related to the overall organization
• Traditional organizational structure
– Major department heads report to a president
or top-level manager

Schematic

35
 ABS

HOI

PD-MBA PD-M&S PD-HR

PL

Traditional Organizational Structure

36
 Types ABS

• Hierarchical organizational structure

– Series of levels
– Those at high levels have more power and
authority within an organization
• Flat organizational structure
– An organizational structure with a reduced
number of layers of management

37
 Other Types ABS

• Project organizational structure

– An organization structure centred on major
products or services
– Contrast with traditional structure
• Team organizational structure
– An organizational structure centred on work
teams or groups

38
 ABS

B. Woods,
President
Air & Aerospace Co.

O. Teco,
T. Walker, W. Butler,
Senior VP,
Senior VP, Senior VP,
Communications &
Aircraft Division Aerospace Division
Satellite Division

VP, VP, VP, VP, VP, VP, VP, VP, VP, VP, VP,
Finance Marketing Production Sales Finance Marketing Production Sales Finance Marketing Production

Project Organizational Structure

39
 Other Organizational ABS

Structures
• Multidimensional organizational structure
– A structure that may incorporate several
structures at the same time

40
 ABS

Vice President, Vice President, Vice President,

Marketing Production Finance

Publisher, Marketing Production Finance

College Division Group Group Group

Publisher, Marketing Production Finance

Trade Division Group Group Group

Publisher,
Marketing Production Finance
High School Group Group Group
Division

Multidimensional Organizational Structure

41
 ABS

Business Processes

42
 Functions Of Enterprise
ABS

Sales Engineering
Design
Human resources

Inventory Enterprise Production

Planning

Finance Controlling
Quality Maintenance
legal
43
 Business Processes ABS

• Business processes:
• Workflows of material, information, knowledge
• Sets of activities, steps
• May be tied to functional area or be cross-
functional
• Businesses: Can be seen as collection of
business processes
• Business processes may be assets or liabilities

44
 Business Process ABS

A business process is a sequence of activities followed

by individuals in a business to achieve some business
goal.

Often these are manual activities executed by

employees who play certain roles in the business in
addition to others who are external to the business:
customers, business partners, etc.

45
 Business Processes ABS

• Examples of functional business processes

– Manufacturing and production
• Assembling the product
• Checking for quality
• Producing bills of materials
– Sales and marketing
• Identifying customers
• Making customers aware of the product
• Selling the product
– Finance and accounting
• Paying creditors
• Creating financial statements
• Managing cash accounts
– Human resources
• Hiring employees
• Evaluating employees’ job performance
• Enrolling employees in benefits plans

46
 Business Processes ABS

• Information technology enhances

business processes in two main ways:

• Increasing efficiency of existing processes

• Automating steps that were manual

• Enabling entirely new processes that are

capable of transforming the businesses
• Change flow of information
• Replace sequential steps with parallel steps
• Eliminate delays in decision making

47
 ABS

Information System

48
 Information System ABS

• Definition
– A set of interrelated elements or components that
collect (input), manipulate (process), and disseminate
(output) data and information and provide a feedback
mechanism to meet an objective
– (IS) Pronounced as separate letters, and short for
Information Systems or Information Services. For
many companies, IS is the name of the department
responsible for computers, networking and data
management. Other companies refer to the
department as IT (Information Technology) and MIS
(Management Information Services).

49
 Information System? ABS

• Schematic model of an information system

Feedback

Input Processing Output

50
 Input, Processing, Output, ABS

• Input
– The activity of gathering and capturing data
– Whatever goes into the computer
• Processing
– Converting or transforming data into useful outputs
• Output
– Useful information, usually in the form of documents
and/or reports
– Anything that comes out of a computer

51
 Feedback ABS

• Feedback
– Output that is used to make changes to input
or processing activities
• Forecasting
– A proactive approach to feedback
– Use for estimating future sales or inventory
needs

52
Categories Of Information System ABS

53