System Analysis and Design
Syllabus
SYSTEM ANALYSIS AND DESIGN Module 1: Data and Information (3)
Types of information: operational, tactical, strategic and
statutory why do we need information systems management structure
requirements of information at different levels of management
functional allocation of management requirements of information for
various functions qualities of information small case study. Module
2: Systems Analysis and Design Life Cycle (3) Requirements
determination requirements specifications feasibility analysis
final specifications hardware and software study system design
system implementation system evaluation system modification. Role
of systems analyst attributes of a systems analyst tools used in
system analysis Module 3: Information gathering (3) Strategies
methods case study documenting study system requirements
specification from narratives of requirements to classification of
requirements as strategic, tactical, operational and statutory.
Example case study Module 4: Feasibility analysis (3) Deciding
project goals examining alternative solutions cost benefit analysis
quantifications of costs and benefits payback period system
proposal preparation for managements parts and documentation of a
proposal tools for prototype creation Module 5: Tools for systems
analysts (3) Data flow diagrams case study for use of DFD, good
conventions leveling of DFDs leveling rules logical and physical
DFDs software tools to create DFDs Module 6: Structured systems
analysis and design (3) Procedure specifications in structured
English examples and cases decision tables for complex logical
specifications specification oriented design vs procedure oriented
design Module 7: Data oriented systems design (3) Entity
relationship model E-R diagrams relationships cardinality and
participation normalizing relations various normal forms and their
need some examples of relational data base design. Module 8: Data
input methods (3) Coding techniques requirements of coding schemes
error detection of codes validating input data input data controls
interactive data input Module 9: Designing outputs (2) Output
devices designing output reports screen design graphical user
interfaces interactive I/O on terminals.
V.Rajaraman/IISc, Bangalore
V1/1-6-04/1
System Analysis and Design
Syllabus
Module 10: Object oriented systems modeling (4) What are
objects? Why objects? Objects and their properties classes
inheritance polymorphism how to identify objects in an application
how to model systems using objects some cases of object oriented
system modeling Module 11: Control audit and security of
information systems (4) Audit and security of information systems
why controls are needed objectives of control techniques used in
control auditing information systems auditing around, through and
with the computer testing information systems types of tests how to
generate tests security of information systems disaster recovery
business process continuity Module 12: Systems analysis and design
in the era of electronic commerce (3) B2B, B2C and C2C e-commerce
advantages and disadvantages of e-commerce. Ecommerce system
architecture physical networks, logical network, World Wide Web,
web-services html, XML. Module 13: Electronic data interchange (2)
EDI standards virtual private networks XML and EDI. Module 14:
Security of e-commerce transactions, firewalls (3) Encryption
methods symmetric and asymmetric encryption digital signature
certifying authorities for signatures legal status of e-commerce
transactions Module 15: Payment systems in e-commerce (2) Cheque
payment, credit card payments, e-cash payments. Module 16: Complete
system analysis and design case studies (5) A system for journal
acquisition in libraries walk through the entire life cycle
V.Rajaraman/IISc, Bangalore
V1/1-6-04/2
System Analysis and Design
Syllabus
Lecture Plan Modules 1. Data and Information Learning Units
Types of information: operational, tactical, strategic and
statutory Why do we need information systems, management structure,
requirements of information at different levels of management
Functional allocation of management, requirements of information
for various functions Qualities of information small case study
Systems Analysis and Design life Cycle: Requirements determination,
requirements specifications Hours per topic 0.5 Total Hours
1. 2.
1 3 1
3.
2. Systems Analysis and Design Life Cycle
4. 5.
0.5 1 3 1
3. Information gathering
4. Feasibility analysis
6. Feasibility analysis, final specifications, hardware and
software study, system design, system implementation, system
evaluation, system modification. 7. Role of systems analyst
attributes of a systems analyst tools used in system analysis 8.
Information gathering, strategies, methods 9. Case
study/documenting study, system requirements specification, from
narratives of requirements to classification of requirements as
strategic, tactical, operational and statutory. Example case study
10. How to formulate project goals and quantify them 11. Examining
alternative solutions and evaluating proposed solutions a)
Technical feasibility b) Operational feasibility c) Economic
feasibility 12. Cost benefit analysis, Documenting feasibility
report 13. Developing Data Flow Diagrams (DFD) a) What are DFDs? b)
Symbols used in DFD c) Rules of data flow d) Good style in drawing
DFD 14. Describing systems with DFD & Leveling DFD 15. Logical
& Physical DFDs
1 1 3 2
1
3 1
1
5. Tools for systems analysts
1.5 3 1 0.5
V.Rajaraman/IISc, Bangalore
V1/1-6-04/3
System Analysis and Design
Syllabus
6. Structured systems analysis and design
16. Structured English specification 17. Decision table based
specification 18. Detecting 19. Incompleteness 20. Ambiguity 21.
Contradictions 22. Redundancy 23. in decision table specification
24. Eliminating redundancy in specifications 25. Decision trees for
specification 26. Entity-relationship (E-R) modeling 27. of data
elements of an application 28. Organization of data as relations
29. Normalization of relations 30. Creation of logical relational
database 31. Objectives of database management system (DBMS) 32.
Overview of DBMS 33. Data input methods, coding techniques,
requirements of coding schemes 34. Error detection of codes,
validating input data 35. Input data controls interactive data
input 36. Designing outputs, output devices, designing output
reports 37. Screen design, graphical user interfaces, Interactive
I/O on terminals. 38. Object oriented systems modeling 39. What are
objects? Why objects? 40. Objects and their properties, classes,
inheritance, polymorphism 41. How to identify objects in an
application, how to model systems using objects 42. Some cases of
object oriented system modeling 43. Control, audit and security of
information system 44. Why controls are needed, objectives of
control, techniques used in control 45. Auditing information
systems, auditing around, through and with the computer 46. Testing
information systems, types of tests, how to generate tests
1 1
1
4.5
7. Data oriented systems design
1 0.5 1 0.5 1 1 1 0.5 1 1 1 1 1 0.5 0.5 1 1 1 0.5 0.5 1 1 4 4 2
3
5
8. Data input methods
9. Designing outputs
10. Object oriented systems modeling
11. Controlaudit and security of information systems
V.Rajaraman/IISc, Bangalore
V1/1-6-04/4
System Analysis and Design
Syllabus
47. Security of information systems, disaster recovery, business
process continuity 12. Systems 48. Systems analysis and design in
the era of analysis and electronic commerce design in the era 49.
B2B, B2C and C2C e-commerce, advantages of electronic and
disadvantages of e-commerce. commerce 50. E-commerce system
architecture 51. Physical networks, logical network, world wide
web, web-services html, XML 13. Electronic 52. Electronic data
interchange, EDI standards data interchange 53. Virtual private
networks XML and EDI. 14. Security of e- 54. Security of e-commerce
transactions, firewalls, commerce encryption methods, symmetric and
transactions, asymmetric encryption, firewalls 55. Digital
signature, certifying authorities for signatures, legal status of
e-commerce transactions 15. Payment 56. Payment systems in
e-commerce, cheque systems in epayment, credit card payments,
e-cash commerce payments. 16. Complete 57. Complete system analysis
and design case system analysis studies, a system for journal
acquisition in and design case libraries, walk through the entire
life cycle studies
1 0.5 0.5 4 1 2 1 1 1.5 3 1.5
2
2
2
5
5
V.Rajaraman/IISc, Bangalore
V1/1-6-04/5
MODULE 1
INFORMATION FOR MANAGEMENTOBJECTIVE QUESTIONS
There are 4 alternative answers to each question. One of them is
correct. Pick the correct answer. Do not guess. A key is given at
the end of the module for you to verify your answer
LEARNING UNIT 1
1.1
Information is (a) Data (c) Manipulated input
(b) Processed Data (d) Computer output
1.2
Data by itself is not useful unless (a) It is massive (b) It is
processed to obtain information (c) It is collected from diverse
sources (d) It is properly stated For taking decisions data must be
(a) Very accurate (b) Massive (c) Processed correctly (d) Collected
from diverse sources Strategic information is needed for (a) Day to
day operations (b) Meet government requirements (c) Long range
planning (d) Short range planning
1.3
1.4
1.5 Strategic information is required by (a) Middle managers (b)
Line managers (c) Top managers (d) All workers
1.6 Tactical information is needed for (a) Day to day operations
(b) Meet government requirements (c) Long range planning (d) Short
range planning 1.7 Tactical information is required by (a) Middle
managers (b) Line managers (c) Top managers (d) All workers 1.8
Operational information is needed for (a) Day to day operations (b)
Meet government requirements (c) Long range planning (d) Short
range planning 1.9 Operational information is required by (a)
Middle managers (b) Line managers (c) Top managers (d) All
workers
1.10 Statutory information is needed for (a) Day to day
operations (b) Meet government requirements (c) Long range planning
(d) Short range planning 1.11 In motor car manufacturing the
following type of information is strategic (a) Decision on
introducing a new model (b) Scheduling production (c) Assessing
competitor car (d) Computing sales tax collected 1.12 In motor car
manufacturing the following type of information is tactical (a)
Decision on introducing a new model (b) Scheduling production (c)
Assessing competitor car (d) Computing sales tax collected
1.13 In motor car manufacturing the following type of
information is operational (a) Decision on introducing a new model
(b) Scheduling production (c) Assessing competitor car (d)
Computing sales tax collected
1.14 In motor car manufacturing the following type of
information is statutory (a) Decision on introducing a new model
(b) Scheduling production (c) Assessing competitor car (d)
Computing sales tax collected
1.15 In a hospital information system the following type of
information is strategic (a) Opening a new childrens ward (b) Data
on births and deaths (c) Preparing patients bill (d) Buying an
expensive diagnostic system such as CAT scan
1.16 In a hospital information system the following type of
information is tactical (a) Opening a new childrens ward (b) Data
on births and deaths (c) Preparing patients bill (d) Buying an
expensive diagnostic system such as CAT scan
1.17 In a hospital information system the following type of
information is operational (a) Opening a new childrens ward (b)
Data on births and deaths (c) Preparing patients bill (d) Buying an
expensive diagnostic system such as CAT scan
1.18 In a hospital information system the following type of
information is statutory (a) Opening a new childrens ward (b) Data
on births and deaths (c) Preparing patients bill (d) Buying an
expensive diagnostic system such as CAT scan
LEARNING UNIT 21.19 A computer based information system is
needed because (i) The size of organization have become large and
data is massive (ii) Timely decisions are to be taken based on
available data (iii) Computers are available (iv) Difficult to get
clerks to process data (a) (ii) and (iii) (c) (i) and (iv) (b) (i)
and (ii) (d) (iii) and (iv)
1.20 Volume of strategic information is (a) Condensed (b)
Detailed (c) Summarized (d) Irrelevant
1.21 Volume of tactical information is (a) Condensed (b)
Detailed (c) Summarized (d) relevant
1.22 Volume of operational information is (a) Condensed (b)
Detailed (c) Summarized (d) Irrelevant
1.23 Strategic information is (a) Haphazard (b) Well organized
(c) Unstructured (d) Partly structured
1.24 Tactical information is (a) Haphazard (b) Well organized
(c) Unstructured (d) Partly structured
1.25 Operational information is (a) Haphazard (b) Well organized
(c) Unstructured (d) Partly structured
LEARNING UNIT 31.26 Match and find best pairing for a Human
Resource Management System (i)Policies on giving bonus
(iv)Strategic information (ii)Absentee reduction (v)Tactical
information (iii)Skills inventory (vi)Operational Information (a)
(b) (c) (d) (i) and (v) (i) and (iv) (ii) and (iv) (iii) and
(v)
1.27 Match and find best pairing for a Production Management
System (i) Performance appraisal of machines (iv)Strategic
information to decide on replacement (ii)Introducing new production
(v)Tactical information technology (iii)Preventive maintenance
schedules (vi)Operational information for machines (a) (a)(i) and
(vi)
(b) (ii) and (v) (c) (i) and (v) (d) (iii) and (iv) 1.28 Match
and find best pairing for a Production Management System (i)
Performance appraisal of machines (iv)Strategic information to
decide on replacement (ii)Introducing new production (v)Tactical
information technology (iii)Preventive maintenance schedules
(vi)Operational information for machines (a) (iii) and (vi) (b) (i)
and (iv) (c) (ii) and (v) (d) None of the above
1.29 Match and find best pairing for a Materials Management
System (i) Developing vendor performance (iv) Strategic information
measures (ii) Developing vendors for critical (v) Tactical
information items (iii)List of items rejected from a vendor
(vi)Operational information (a) (i) and (v) (b) (ii) and (v) (c)
(iii) and (iv) (d) (ii) and (vi)
1.30 Match and find best pairing for a Materials Management
System (i)Developing vendor performance (iv)Strategic information
measures (ii)Developing vendors for critical (v)Tactical
information items (iii)List of items rejected from a vendor
(vi)Operational information (a) (i) and (iv) (b) (i) and (vi) (c)
(ii) and (iv) (d) (iii) and (v)
1.31 Match and find best pairing for a Materials Management
System (i)Developing vendor performance (iv)Strategic information
measures (ii)Developing vendors for critical (v)Tactical
information items (iii)List of items rejected from a vendor
(vi)Operational information (a) (i) and (vi) (b) (iii) and (vi) (c)
(ii) and (vi) (d) (iii) and (iv)
1.32 Match and find best pairing for a Finance Management System
(i)Tax deduction at source report (iv)Strategic information
(ii)Impact of taxation on pricing (v)Tactical information (iii)Tax
planning (vi)Operational information (a) (i) and (v) (b) (iii) and
(vi) (c) (ii) and (v) (d) (ii)) and (iv)
1.33 Match and find best pairing for a Finance Management System
(i)Budget status to all managers (iv)Strategic information
(ii)Method of financing (v)Tactical information (iii)Variance
between budget and (vi)Operational information expenses (a) (i) and
(v) (b) (iii) and (vi) (c) (ii) and (v) (d) (ii) and (iv)
1.34 Match and find best pairing for a Marketing Management
System (i)Customer preferences surveys (iv)Strategic information
(ii)Search for new markets (v)Tactical information (iii)Performance
of sales outlets (vi)Operational information (a) (i) and (iv) (b)
(ii) and (v) (c) (iii) and (vi) (d) (ii) and (v)
1.35 Match and find best pairing for a Marketing Management
System (i)Customer preferences surveys (iv)Strategic information
(ii)Search for new markets (v)Tactical information (iii)Performance
of sales outlets (vi)Operational information (a) (iii) and (iv) (b)
(i) and (vi) (c) (i) and (v) (d) (iii) and (v)
1.36 Match and find best pairing for a Research and Development
Management System (i)Technical collaboration decision (iv)Strategic
information (ii)Budgeted expenses Vs actuals (v)Tactical
information (iii)Proportion of budget to be (vi)Operational
information allocated to various projects (a) (i) and (iv) (b) (ii)
and (v) (c) (iii) and (vi) (d) (iii) and (iv)
1.37 Match and find best pairing for a Research and Development
Management System (i)Technical collaboration decision (iv)Strategic
information (ii)Budgeted expenses Vs actuals (v)Tactical
information (iii)Proportion of budget to be (vi)Operational
information allocated to various projects (a) (i) and (v) (b) (iii)
and (v) (c) (ii) and (v) (d) (i) and (vi)
1.38 Organizations are divided into departments because (a) it
is convenient to do so (b) each department can be assigned a
specific functional responsibility (c) it provides opportunities
for promotion (d) it is done by every organization
1.39 Organizations have hierarchical structures because (a) it
is convenient to do so (b) it is done by every organization (c)
specific responsibilities can be assigned for each level (d) it
provides opportunities for promotions
1.40 Which of the following functions is the most unlikely in an
insurance company. (a) Training (b) giving loans (c) bill of
material (d) accounting
1.41 Which of the following functions is most unlikely in a
university (a) admissions (b) accounting (c) conducting examination
(d) marketing
1.42 Which of the following functions is most unlikely in a
purchase section of an organization. (a) Production planning (b)
order processing (c) vendor selection (d) training
1.43 Which is the most unlikely function of a marketing division
of an organization. (a) advertising (b) sales analysis (c) order
processing (d) customer preference analysis
1.44 Which is the most unlikely function of a finance section of
a company. (a) Billing (b) costing (c) budgeting (d) labor
deployment
LEARNING UNIT 41.45 Match quality of information and how it is
ensured using the following list QUALITY HOW ENSURED (i) Accurate
(ii) Complete (iii)Timely (a) (i) and (v) (b) (ii) and (vi) (c)
(iii) and (vi) (d) (i) and (iv) (iv) Include all data (v) Use
correct input and processing rules (vi) Include all data up to
present time
1.46 Match quality of information and how it is ensured using
the following list QUALITY HOW ENSURED (i) Accurate (ii) Complete
(iii) Timely (a) (ii) and (v) (b) (ii) and (vi) (c) (ii) and (iv)
(d) (iii) and (iv) (iv) Include all data (v) Use correct input and
processing rules (vi) Include all data up to present time
1.47 Match quality of information and how it is ensured using
the following list QUALITY HOW ENSURED (i)Up-to-date (ii) Brief
(iii) Significance graphical charts (a) (i) and (v) (b) (ii) and
(vi) (c) (iii) and (vi) (d) (i) and (vi) (iv) Include all data to
present time (v) Give at right time (vi) Use attractive format and
understandable
1.48 Match quality of information and how it is ensured using
the following list QUALITY HOW ENSURED (i)Up- to-date (ii)Brief
(iii) Significance graphical charts (a) (i) and (iv) (b) (ii) and
(v) (c) (iii) and (iv) (d) (ii) and (iv) (iv) Include all data to
present time (v) Give at right time (vi) Use attractive format and
understandable
1.49 Match quality of information and how it is ensured using
the following list QUALITY HOW ENSURED (i)Brief (ii)Relevant (iii)
Trustworthy (a) (i) and (iv) (b) (ii) and (v) (c) (iii) and (vi)
(d) (i) and (v) (iv) Unpleasant information not hidden (v)
Summarize relevant information (vi) Understands user needs
1.50 Match quality of information and how it is ensured using
the following list QUALITY HOW ENSURED (i)Brief (iv) Unpleasant
information not hidden (ii)Relevant (v) Summarize relevant
information (iii)Trustworthy (vi) Understands user needs (a) (ii)
and (vi) (b) (i) and (iv) (c) (iii) and (v) (d) (ii) and (iv)
1.51 The quality of information which does not hide any
unpleasant information is known as (a) Complete (b) Trustworthy (c)
Relevant (d) None of the above
1.52 The quality of information which is based on understanding
user needs (a) Complete (b) Trustworthy (c) Relevant (d) None of
the above
LEARNING UNIT 51.53 Every record stored in a Master file has a
key field because (a) it is the most important field (b) it acts as
a unique identification of record (c) it is the key to the database
(d) it is a very concise field
1.54 The primary storage medium for storing archival data is (a)
floppy disk (b) magnetic disk (c) magnetic tape
(d) CD- ROM
1.55 Master files are normally stored in (a) a hard disk (b) a
tape (c) CD ROM (d) computers main memory
1.56
Master file is a file containing (a) all master records (b) all
records relevant to the application (c) a collection of data items
(d) historical data of relevance to the organization
1.57
Edit program is required to (a) authenticate data entered by an
operator (b) format correctly input data (c) detect errors in input
data (d) expedite retrieving input data
1.58 Data rejected by edit program are (a) corrected and re-
entered (b) removed from processing (c) collected for later use (d)
ignored during processing
1.59 Online transaction processing is used because (a) it is
efficient (b) disk is used for storing files (c) it can handle
random queries. (d) Transactions occur in batches
1.60 On-line transaction processing is used when i) it is
required to answer random queries ii) it is required to ensure
correct processing
iii) all files are available on-line iv) all files are stored
using hard disk a) i ,ii b) i, iii c) ii ,iii, iv d) i , ii
,iii
1.61 Off-line data entry is preferable when i) data should be
entered without error ii) the volume of data to be entered is large
iii) the volume of data to be entered is small iv) data is to be
processed periodically a) i, ii b) ii, iii c) ii, iv d) iii, iv
1.62 Batch processing is used when i) response time should be
short ii) data processing is to be carried out at periodic
intervals iii) transactions are in batches iv) transactions do not
occur periodically a) i ,ii b) i ,iii,iv c) ii ,iii d) i , ii
,iii
1.63 Batch processing is preferred over on-line transaction
processing when i) processing efficiency is important ii) the
volume of data to be processed is large iii) only periodic
processing is needed iv) a large number of queries are to be
processed
a) i ,ii b) i, iii c) ii ,iii d) i , ii ,iii 1.64 A management
information system is one which (a) is required by all managers of
an organization (b) processes data to yield information of value in
tactical management (c) provides operational information (d) allows
better management of organizations
1.65 Data mining is used to aid in (a) operational management
(b) analyzing past decision made by managers
(c) detecting patterns in operational data (d) retrieving
archival data
1.66. Data mining requires (a) large quantities of operational
data stored over a period of time (b) lots of tactical data (c)
several tape drives to store archival data (d) large mainframe
computers
1.67 Data mining can not be done if (a) operational data has not
been archived (b) earlier management decisions are not available
(c) the organization is large (d) all processing had been only
batch processing
1.68. Decision support systems are used for (a) management
decision making (b) providing tactical information to management
(c) providing strategic information to management (d) better
operation of an organization
1.69 Decision support systems are used by (a) line managers. (b)
top-level managers. (c) middle level managers. (d) system users
1.70. Decision support systems are essential for (a) dayto-day
operation of an organization. (b) providing statutory information.
(c) top level strategic decision making. (d) ensuring that
organizations are profitable.
Key To Objective Questions 1.1 1.7 1.13 1.19 1.25 1.31 1.37 1.43
1.49 1.55 1.61 1.67 a c a b a b b b b b c d 1.2 1.8 1.14 1.20 1.26
1.32 1.38 1.44 1.50 1.56 1.62 1.68 b a d a b c b d a b c c 1.3 1.9
1.15 1.21 1.27 1.33 1.39 1.45 1.51 1.57 1.63 1.69 c b d c c d c a b
c d b 1.4 1.10 1.16 1.22 1.28 1.34 1.40 1.46 1.52 1.58 1.64 1.70 c
b a b a c c c c a b c 1.5 1.11 1.17 1.23 1.29 1.35 1.41 1.47 1.53
1.59 1.65 c a c c a c d c b c c 1.6 1.12 1.18 1.24 1.30 1.36 1.42
1.48 1.54 1.60 1.66 d c b d c a a a c b a
System Analysis and Design / Data and Information
Motivation
Motivation Large number of jobs today for computer science and
engineering graduates is in creating information systems for
managing organizations we thus need methods to design complex
systems. Students should know what information is and how it is
different from data. Should know types of information needed to
manage organizations. Should know nature of organizations and their
structure to design appropriate information system. Should know
management structure and needs of each level of management. Should
know functional areas of management information needs for each
area.
V. Rajaraman/IISc. Bangalore
//V1/July 04/1
MODULE 1
INFORMATION FOR MANAGEMENT
1.1 Data and Information, types of information : Operational,
tactical, strategic, Statutory 1.2 Why do we need information
systems, management structure, requirements of information at
different levels of management 1.3 Functional allocation of
management, requirements of information for various functions. 1.4
Qualities of information 1.5 Varieties of information system
Systems Analysis And Design
V. Rajaraman
MOTIVATIONLarge number of jobs today for computer science and
engineering graduates is in creating information systems for
managing organizations Students should know what is information and
how it is different from data Should know types of information
needed to manage organizationsSystems Analysis And Design
V. Rajaraman
1 of 50
MOTIVATIONShould know nature of organizations and their
structure to design appropriate information system. Should know
management structure and needs of each level of management Should
know functional areas of management and information needs for each
area
Systems Analysis And Design
V. Rajaraman
2 of 50
LEARNING GOALS 1. Distinction between Data and Information 2.
Description of types of Information: Tactical, Operational,
Strategic, Statutory. 3. Division of Management into different
hierarchical levels. 4. Type of Information needed at different
levels of management. 5. Division of organizations into several
functional areas and their information requirements 6. Attributes
of Information.Systems Analysis And Design
V. Rajaraman
3 of 50
DATA AND INFORMATION
DATA : Raw Material Data collection costs money Collect only
necessary and sufficient data Data is generally used by machines
Data is useless unless it is processed to create INFORMATION
1.1.1
System Analysis And Design
V. Rajaraman
4 of 50
DATA AND INFORMATION
INFORMATION : Processed data Data processed by machines giving
information Information is used to run an organization efficiently
Information used by managers to initiate actions
1.1.2
System Analysis And Design
V. Rajaraman
5 of 50
EXAMPLE OF INFORMATION NEEDED BY A SHOPKEEPER Daily sales
account List of low stock items to be re-ordered List of overstock
items Long overdue payments Profit and loss account Used to
streamline day to day operations called Operational information
1.1.3
System Analysis And Design
V. Rajaraman
6 of 50
EXAMPLE OF INFORMATION NEEDED BY A SHOPKEEPER (CONTD)
Slow or fast moving items Reliable supplier of items Sales
trends Used to improve profitability of shop called Tactical
information
1.1.4
System Analysis And Design
V. Rajaraman
7 of 50
EXAMPLE OF INFORMATION NEEDED BY A SHOPKEEPER (CONTD)
Whether to stock different varieties of items Whether to
diversify Whether to start a new branch in a different locality
Whether to start an e-shop Information to expand business and
explore new opportunities Known as Strategic Information
1.1.5
System Analysis And Design
V. Rajaraman
8 of 50
EXAMPLE OF INFORMATION NEEDED BY A SHOPKEEPER (CONTD)
Income tax account Sales tax account Used to provide information
to the government Known as Statutory Information
1.1.6
System Analysis And Design
V. Rajaraman
9 of 50
TYPES OF INFORMATION
STRATEGIC : Needed for long range planning and directions. This
is less structured.
TACTICAL : Needed to take short range decisions to improve
profitability and performance.
1.1.7
System Analysis And Design
V. Rajaraman
10 of 50
TYPES OF INFORMATION OPERATIONAL : Needed for day to day
operations of the organization. Eg: Daily Sales, Billing. STATUTORY
: Needed by law to sent to government authorities. Eg: Sales tax
return.
1.1.8
System Analysis And Design
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MANAGEMENT HIERARCHY AND INFORMATION NEEDSVolume of
InformationLow condensed Medium moderately processed
Type of InformationUnstructured Moderately structured Top
Managers Middle Managers Line managers
StrategicLong range planning Tactical Short range
improvement
Highly Large structured Detailed Reports
Operational Day to day policies
1.1.9
System Analysis And Design
V. Rajaraman
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NEED FOR INFORMATION SYSTEMS Increasing size of organizations
thus data volume increases Timely processing for fast action Better
competitiveness with better information . Increasing of complexity
of organizations require innovative processing Distributed
organizations Same data can be processed in different
ways1.2.1System Analysis And Design
V. Rajaraman
13 of 50
MANAGEMENT STRUCTUREChief Executive (Strategical)
(Tactical)Production manager Marketing manager Materials manager
Finance manager Human Resource manager
(Operational) Line managers
1.2.2
System Analysis And Design
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MANAGEMENT STRUCTURE (CONTD) TOP MANAGEMENT Chief Executive
known as CEO Executive Directors for each functional areas such as
Production, Finance, HRD etc. Take strategic decisions
1.2.3
System Analysis And Design
V. Rajaraman
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MANAGEMENT STRUCTURE (CONTD) MIDDLE MANAGEMENT General managers,
divisional managers,Vice presidents etc Each functional area may
have 2 to 3 middle level managers reporting to top management Take
Tactical decisions
1.2.4
System Analysis And Design
V. Rajaraman
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MANAGEMENT STRUCTURE (CONTD) LINE MANAGERS Group managers,
Assistant Group managers, Assistant managers Each functional area
may have several line managers reporting to middle level managers.
Take Operational decisions
1.2.5
System Analysis And Design
V. Rajaraman
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MANAGEMENT STRUCTURE (CONTD)
FUNCTIONAL AREAS PRODUCTION MARKETING MATERIALS purchase, stores
FINANCE Accounts HUMAN RESOURCE DEVELOPMENT(HRD) RESEARCH AND
DEVELOPMENT (R&D)
1.3.1
System Analysis And Design
V. Rajaraman
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MANAGEMENT STRUCTURE (CONTD)
FUNCTIONAL AREAS All organizations need not have identical
functional areas However some are common such as - MARKETING -
FINANCE - HUMAN RESOURCE DE VELOPMENT(HRD)
1.3.2
System Analysis And Design
V. Rajaraman
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INFORMATION FOR MANAGEMENTProduction Management Strategic
Information
Yearly and monthly production quotas and alternate schedules
Policies on machine replacement, augmentation, and modernization.
Identifying best product mix.
1.3.3
System Analysis And Design
V. Rajaraman
20 of 50
INFORMATION FOR MANAGEMENTProduction Management Tactical
Information
Identifying and controlling areas of high cost. Identifying
critical bottlenecks in production. Identifying alternate
production schedules based on tools, machines etc. Performance
measures of machines to decide replacement.
1.3.4
System Analysis And Design
V. Rajaraman
21 of 50
INFORMATION FOR MANAGEMENTProduction Management Operational
Information
Monitoring up to date production information by examining
assemblies, detecting likely shortages and giving early warning.
Scheduling better production dynamically. Preventive maintenance
schedules. Monitoring tool, machine and personnel availability
1.3.5
System Analysis And Design
V. Rajaraman
22 of 50
INFORMATION FOR MANAGEMENTMarketing Management Strategic
Information
Search for new markets and marketing strategies. Analysis of
competitors strategy. Technology and demographic forecasts and
product changes.
1.3.6
System Analysis And Design
V. Rajaraman
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INFORMATION FOR MANAGEMENTMarketing Management Tactical
Information
Advertising techniques and analysis of their impact. Customer
preference surveys. Correlation of prices and sales. Sales force
deployment and targets. Exploring alternate marketing channels.
Timing of special sales campaigns.
1.3.7
System Analysis And Design
V. Rajaraman
24 of 50
INFORMATION FOR MANAGEMENTMarketing Management Operational
Information
Sales analysis by regions,customer class, sales person. Sales
target versus achievement. Market share and trends. Seasonal
variations. Effect of model changes. Performance of sales outlets
Costs of campaigns and benefit.1.3.8System Analysis And Design
V. Rajaraman
25 of 50
INFORMATION FOR MANAGEMENTMaterial Management Strategic
Information
Developing vendors for critical items. Determining optimal
levels of inventory Determining proportion of material needed
Reducing varieties of inventory.
1.3.9
System Analysis And Design
V. Rajaraman
26 of 50
INFORMATION FOR MANAGEMENTMaterial Management Tactical
Information
Developing vendor performance measures. Determining optimal
reorder levels. Determining issues of items to shops versus
standard needs. Controlling high value of inventory. Determining
impact on material cost and procurement with design changes and new
product introduction.1.3.10System Analysis And Design
V. Rajaraman
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INFORMATION FOR MANAGEMENTMaterial Management Operational
Information
List of excess & deficient items received. List of items
rejected. Critical items received. Stores in transit and in
inspection. Value of inventory in hand. Goods received, rejected
and issued.
1.3.11
System Analysis And Design
V. Rajaraman
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INFORMATION FOR MANAGEMENTFinance Management Strategic
Information
Methods of financing. Pricing policies. Tax planning.
1.3.12
System Analysis And Design
V. Rajaraman
29 of 50
INFORMATION FOR MANAGEMENTFinance Management Tactical
Information
Variations between budget and expenses. Large outstanding
payments/Receipts. Credit and payment status. Cost increases and
pricing. Impact of taxation on pricing
1.3.13
System Analysis And Design
V. Rajaraman
30 of 50
INFORMATION FOR MANAGEMENTFinance Management Operational
Information
Periodic financial report. Budget status to all functional
managers. Tax returns. Share transfers. Profit and loss account.
Payments and receipts. Payroll,provident fund accounts.
1.3.14
System Analysis And Design
V. Rajaraman
31 of 50
INFORMATION FOR MANAGEMENTHuman Resource Management Strategic
Information
Long range human resource requirements. at different levels.
Policies on human resource development and training Policies on
personnel welfare and facilities
1.3.15
System Analysis And Design
V. Rajaraman
32 of 50
INFORMATION FOR MANAGEMENTHuman Resource Management Tactical
Information
Performance appraisal. Demographic make-up of personnel and its
impact on retirement. Production incentives. Morale of personnel.
Absentee reduction. Leave and overtime policies. Personnel
deployment policies.1.3.16System Analysis And Design
V. Rajaraman
33 of 50
INFORMATION FOR MANAGEMENTHuman Resource Management Operational
Information
Routine assessment. Skills inventory. Loan/advances and
recoveries. Leave record.
1.3.17
System Analysis And Design
V. Rajaraman
34 of 50
INFORMATION FOR MANAGEMENTResearch Design & development
Management Strategic Information
Which products are to be developed? What types of improvements
are required? What long range research is more promising? What
technical collaboration would be appropriate?
1.3.18
System Analysis And Design
V. Rajaraman
35 of 50
INFORMATION FOR MANAGEMENTResearch Design & development
Management Tactical Information
Setting intermediate goals. Checking availability of equipment
& appropriate selection Determining proportions of resources to
be allocated to different projects. Deployment of personnel to
projects. Information on similar and related research projects
undertaken by other companies1.3.19System Analysis And Design
V. Rajaraman
36 of 50
INFORMATION FOR MANAGEMENTResearch Design & development
Management Operational Information
Progress against goals. Budgeted expenses versus actual
expenses. Status of outstanding orders for equipment and
components.
1.3.20
System Analysis And Design
V. Rajaraman
37 of 50
QUALITIES OF INFORMATION
Quality
How to ensure quality
Accurate
Ensure correct input and processing rules. Include all data.
Give at right time
Complete Timely
1.4.1
System Analysis And Design
V. Rajaraman
38 of 50
QUALITIES OF INFORMATIONQuality How to ensure quality
Trustworthy
Do not hide unpleasant information. Understand user needs.
Summarize relevant information.
Relevant Brief
1.4.2
System Analysis And Design
V. Rajaraman
39 of 50
QUALITIES OF INFORMATION
Quality
How to ensure quality
Up-to-date
Include all data up to present time. Use attractive format &
graphical charts.
Significance
1.4.3
System Analysis And Design
V. Rajaraman
40 of 50
VARIETIES OF INFORMATION SYSTEMS Business Data processing
Operational information Management information system Tactical
information Decision support system(DSS) strategic information
1.5.1
System Analysis And Design
V. Rajaraman
41 of 50
Business data processing system
Enter data to be processed Edit, check input data Control check
to see if the data is correct and reasonable Store clean data as an
organized data base in a storage
1.5.2
System Analysis And Design
V. Rajaraman
42 of 50
Business data processingThere are 2 methods of business data
processing 1. On-line transaction processing(OLTP) 2. Batch
processing OLTP is used for query processing and rapid actions to
requests Example: Finding balance in ones bank account Booking
railway tickets Batch processing used for periodic data processing
of massive data Example: Processing university exam results at the
end of each semester Payroll computation each month
1.5.3
System Analysis And Design
V. Rajaraman
43 of 50
Online transaction processing
Database (or master file) available online on disk Request in
specified format accepted from requestor Check request for validity
Retrieve record from database Take appropriate action
1.5.4
System Analysis And Design
V. Rajaraman
44 of 50
Batch processingCollect a batch of requests Key in Validate
Create request file Called transaction file Update master file
using transaction file Create result file Print responses for
requests
1.5.5
System Analysis And Design
V. Rajaraman
45 of 50
OLTP Vs BATCHResponse time Throughput (No of transaction/unit
time) Enquiry systems Periodic processing Once a day Once a month
OLTP FAST BATCH HIGH ONLINE BATCH STORES ISSUES PAYROLL
1.5.6
System Analysis And Design
V. Rajaraman
46 of 50
MANAGEMENT INFORMATION SYSTEMAnalyse outputs of routine data
processing using statistical or operations research tools Eg:
-Observe periodic demands by statistical analysis & use for
tactical decisions -Use operations research tools to decide product
mix using demand and cost data to maximize profit
1.5.7
System Analysis And Design
V. Rajaraman
47 of 50
DECISION SUPPORT SYSTEM
Unstructured and difficult to obtain precise information Use of
analytical and simulation models Aids to conceptualise through
graphs ,animation etc Use of archival data to infer trends and
rules Some artificial intelligence tools may be used
1.5.8
System Analysis And Design
V. Rajaraman
48 of 50
DECISION SUPPORT SYSTEM
Data mining a useful tool What is data mining? Data collected
during routine data processing archived over a long period-massive
amount(Tera Bytes) Some hypothetical rules guessed by experienced
managers and correlated with archival data-called data mining
1.5.9
System Analysis And Design
V. Rajaraman
49 of 50
DECISION SUPPORT SYSTEMExample of data mining From archival data
a rule guessed by managers that in some months there are long
waiting lists for sleeper berths is verified-Data mining gives
precise quantitative data Action Increase number of sleeper coaches
or Introduce special trains Unexpected results of analysis of
archival data more valuable for DSS1.5.10System Analysis And
Design
V. Rajaraman
50 of 50
MODULE 1
INFORMATION FOR MANAGEMENTMotivation
Large number of jobs today for computer science and engineering
graduates is in creating information systems for managing
organizations. Students should know what is information and how it
is different from data, should know nature of organizations and
their structure to design appropriate information system, should
know management structure and needs of each level of management
& should know functional areas of management and information
needs for each area
LEARNING UNIT 1
Data and Information, types of information : Operational,
tactical, strategic, Statutory
DATA AND INFORMATION
DATA is a raw material with which we begin. Collecting data
costs money and hence one must collect necessary and sufficient
data. Data is generally used by machines and is useless unless it
is processed to create INFORMATION. INFORMATION is Processed data,
used by managers to initiate actions and to run the organization
efficiently. The data processed by machines gives information
TYPES OF INFORMATION
STRATEGIC : Needed for long range planning and directions. This
is less structured. TACTICAL : Needed to take short range decisions
to improve profitability and performance. OPERATIONAL : Needed for
day to day operations of the organization. Eg: Daily Sales,
Billing. STATUTORY : Needed by law to sent to government
authorities. Eg: Sales tax return.
MANAGEMENT HIERARCHY AND INFORMATION NEEDS
Volume of Information Low condensed Medium moderately processed
Large Detailed Reports
Type of Information Unstructured StrategicLong range
planning
Top Managers Middle Managers Line managers
Moderately structured Highly structured
Tactical Short range improvement Operational Day to day
policies
LEARNING UNIT 2
Why do we need information systems, management structure,
requirements of information at different levels of management
NEED FOR INFORMATION SYSTEMS Information systems are needed when
timely processing for fast action is needed, same data has to be
processed in different ways and when organizations require
innovative processing. MANAGEMENT STRUCTURE
Chief Executive (Strategical)
Production manager
Marketing manager
Materials manager
Finance manager
Human Resource manager
Line managers
Functional areas of management are as follows:
PRODUCTION MARKETING MATERIALS purchase, stores FINANCE Accounts
HUMAN RESOURCE DEVELOPMENT(HRD) RESEARCH AND DEVELOPMENT
(R&D)
INFORMATION FOR MANAGEMENT
A Production ManagementThe following type of information is
needed in production management:
Strategic Information: 1)Yearly and monthly production quotas
and alternate schedules 2)Policies on machine replacement,
augmentation and modernization. 3)Identifying best product mix.
Tactical Information 1)Identifying and controlling areas of high
cost. 2) Identifying critical bottlenecks in production. 3)
Identifying alternate production schedules based on tools, machines
etc. 4) Performance measures of machines to decide replacement.
Operational Information 1)Monitoring up to date production
information by examining assemblies, detecting likely shortages and
giving early warning. 2) Scheduling better production dynamically.
3) Preventive maintenance schedules. 4) Monitoring tool, machine
and personnel availability
B Marketing ManagementStrategic Information: 1) Search for new
markets and marketing strategies. 2) Analysis of competitors
strategy 3) Technology and demographic forecasts and product
changes Tactical Information: 1)Advertising techniques and analysis
of their impact. 2)Customer preference surveys. 3)Correlation of
prices and sales. 4)Sales force deployment and targets. 5)Exploring
alternate marketing channels. 6)Timing of special sales
campaigns.
Operational Information: 1) Sales analysis by regions, customer
class, sales person. 2) Sales target versus achievement. 3) Market
share and trends. 4) Seasonal variations. 5) Effect of model
changes. 6) Performance of sales outlets 7) Costs of campaigns and
benefit.
C Material ManagementStrategic Information: 1) Developing
vendors for critical items 2) Determining optimal levels of
inventory 3) Determining proportion of material needed 4) Reducing
varieties of inventory
Tactical Information: 1) Developing vendor performance measures.
2) Determining optimal reorder levels. 3) Determining issues of
items to shops versus 4) standard needs. 5) Controlling high value
of inventory. 6) Determining impact on material cost and 7)
procurement with design changes and new 8) product
introduction.
Operational Information: 1) List of excess & deficient items
received. 2) List of items rejected. 3) Critical items received. 4)
Stores in transit and in inspection. 5) Value of inventory in hand.
6) Goods received, rejected and issued.
D Finance Management
Strategic Information: 1) Methods of financing. 2) Pricing
policies 3) Tax planning. Tactical Information: 1) Variations
between budget and expenses. 2) Large outstanding
payments/Receipts. 3) Credit and payment status. 4) Cost increases
and pricing. 5) Impact of taxation on pricing
Operational Information: 1) Periodic financial report. 2) Budget
status to all functional managers. 3) Tax returns. 4) Share
transfers. 5) Profit and loss account. 6) Payments and receipts. 7)
Payroll,provident fund accounts.
E Human Resource ManagementStrategic Information:
1) Long range human resource requirements at different levels.
2) Policies on human resource development and training 3) Policies
on personnel welfare and facilities Tactical Information: 1)
Performance appraisal. 2) Demographic make-up of personnel and its
impact on retirement. 3) Production incentives. 4) Morale of
personnel. 5) Absentee reduction. 6) Leave and overtime policies.
7) Personnel deployment policies.
Operational Information: 1) Routine assessment. 2) Skills
inventory. 3) Loan/advances and recoveries. 4) Leave record.
System Analysis and Design / Data and Information
Multiple Choice Questions
1.1
Information is a. Data
b. Processed Data c. Manipulated input
d. Computer output 1.2 Data by itself is not useful unless a. It
is massive b. It is processed to obtain information c. It is
collected from diverse sources d. It is properly stated 1.3 a b c d
1.4 a b c d 1.5 a b c d 1.6 a b c d For taking decisions data must
be Very accurate Massive Processed correctly Collected from diverse
sources Strategic information is needed for Day to day operations
Meet government requirements Long range planning Short range
planning Strategic information is required by Middle managers Line
managers Top managers All workers Tactical information is needed
for Day to day operations Meet government requirements Long range
planning Short range planning
1.7 Tactical information is required by
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
a b c d 1.8
Middle managers Line managers Top managers All workers
Operational information is needed for a b c d Day to day operations
Meet government requirements Long range planning Short range
planning
1.9
Operational information is required by a b c d Middle managers
Line managers Top managers All workers
1.10
Statutory information is needed for a b c d Day to day
operations Meet government requirements Long range planning Short
range planning
1.11
In motor car manufacturing the following type of information is
strategic a b c d Decision on introducing a new model Scheduling
production Assessing competitor car Computing sales tax
collected
1.12
In motor car manufacturing the following type of information is
tactical a Decision on introducing a new model b Scheduling
production c Assessing competitor car d Computing sales tax
collected
1.13
In motor car manufacturing the following type of information is
operational
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
a Decision on introducing a new model b Scheduling production c
d 1.14 Assessing competitor car Computing sales tax collected
In motor car manufacturing the following type of information is
statutory a Decision on introducing a new model b Scheduling
production c Assessing competitor car d Computing sales tax
collected
1.15
In a hospital information system the following type of
information is strategic a Opening a new childrens ward b Data on
births and deaths c Preparing patients bill d Buying an expensive
diagnostic system such as CAT scan
1.16
In a hospital information system the following type of
information is tactical a Opening a new childrens ward b Data on
births and deaths
c Preparing patients bill d 1.17 Buying an expensive diagnostic
system such as CAT scan
In a hospital information system the following type of
information is operational a Opening a new childrens ward b Data on
births and deaths c Preparing patients bill d Buying an expensive
diagnostic system such as CAT scan
1.18
In a hospital information system the following type of
information is statutory a Opening a new childrens ward b Data on
births and deaths c Preparing patients bill d Buying an expensive
diagnostic system such as CAT scan
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
1.19
A computer based information system is needed because (i) The
size of organization have become large and data is massive (ii)
Timely decisions are to be taken based on available data (iii)
Computers are available (iv) Difficult to get clerks to process
data a (ii) and (iii) b (i) and (ii) c (i) and (iv) d (iii) and
(iv)
1.20
Volume of strategic information is a Condensed b Detailed c
Summarized d Irrelevant
1.21
Volume of tactical information is a Condensed
b Detailed c Summarized d relevant 1.22 Volume of operational
information is a Condensed b Detailed c Summarized d Irrelevant
1.23 Strategic information is a Haphazard b Well organized c
Unstructured d 1.24 Partly structured
Tactical information is a Haphazard
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
b Well organized c Unstructured d Partly structured 1.25
Operational information is a Haphazard b Well organized c
Unstructured d Partly structured 1.26 Match and find best pairing
for a Human Resource Management System (i)Policies on giving bonus
(ii)Absentee reduction (iii)Skills inventory a (i) and (v) b (i)
and (iv) c (ii) and (iv) d (iii) and (v) 1.27 Match and find best
pairing for a Production Management System (i) Performance
appraisal of machines (iv)Strategic information to decide on
replacement (ii)Introducing new production (iii)Preventive
maintenance schedules (v)Tactical information technology
(vi)Operational information for machines a (i) and (vi) b (ii) and
(v) c (i) and (v) d (iii) and (iv) 1.28 Match and find best pairing
for a Production Management System (i) Performance appraisal of
machines (iv)Strategic information to decide on replacement
(ii)Introducing new production (v)Tactical information technology
(iv)Strategic information (v)Tactical information (vi)Operational
Information
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
(iii)Preventive maintenance schedules
(vi)Operational information for machines
a b c
(iii) and (vi) (i) and (iv) (ii) and (v)
d None of the above 1.29 Match and find best pairing for a
Materials Management System (i) Developing vendor performance (iv)
Strategic information measures (ii) Developing vendors for critical
(iii)List of items rejected from a vendor a (i) and (v) b (ii) and
(v) c (iii) and (iv) d (ii) and (vi) 1.30 Match and find best
pairing for a Materials Management System (i)Developing vendor
performance (ii)Developing vendors for critical (iii)List of items
rejected from a vendor a (i) and (iv) b (i) and (vi) c (ii) and
(iv) d (iii) and (v) 1.31 Match and find best pairing for a
Materials Management System (i)Developing vendor performance
(ii)Developing vendors for critical (iii)List of items rejected
from a vendor a (i) and (vi) b (iii) and (vi) c (ii) and (vi) d
(iii) and (iv) (iv)Strategic information measures (v)Tactical
information items (vi)Operational information (iv)Strategic
information measures (v)Tactical information items (vi)Operational
information (v) Tactical information items (vi)Operational
information
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
1.32
Match and find best pairing for a Finance Management System
(i)Tax deduction at source report (ii)Impact of taxation on pricing
(iii)Tax planning a (i) and (v) b (iii) and (vi) c (ii) and (v) d
(ii)) and (iv) (iv)Strategic information (v)Tactical information
(vi)Operational information
1.33
Match and find best pairing for a Finance Management System
(i)Budget status to all managers (ii)Method of financing
(iv)Strategic information (v)Tactical information
(iii)Variance between budget and (vi)Operational information
expenses a (i) and (v) b (iii) and (vi) c (ii) and (v) d (ii) and
(iv) 1.34 Match and find best pairing for a Marketing Management
System (i)Customer preferences surveys (ii)Search for new markets
(iii)Performance of sales outlets a b (i) and (iv) (ii) and (v)
(iv)Strategic information (v)Tactical information (vi)Operational
information
c (iii) and (vi) d 1.35 (ii) and (v)
Match and find best pairing for a Marketing Management System
(i)Customer preferences surveys (ii)Search for new markets
(iii)Performance of sales outlets a (iii) and (iv) b (i) and (vi) c
(i) and (v) (iv)Strategic information (v)Tactical information
(vi)Operational information
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
d (iii) and (v) 1.36 Match and find best pairing for a Research
and Development Management System (i)Technical collaboration
decision (ii)Budgeted expenses Vs actuals (iii)Proportion of budget
to be (iv)Strategic information (v)Tactical information
(vi)Operational information allocated to various projects a (i) and
(iv) b (ii) and (v) c (iii) and (vi) d (iii) and (iv) 1.37 Match
and find best pairing for a Research and Development Management
System (i)Technical collaboration decision (ii)Budgeted expenses
Vs actuals (iii)Proportion of budget to be various projects a (i)
and (v) (iv)Strategic information (v)Tactical information
(vi)Operational information allocated to
b (iii) and (v) c (ii) and (v) d (i) and (vi) 1.38 Organizations
are divided into departments because a it is convenient to do so b
each department can be assigned a specific functional
responsibility c it provides opportunities for promotion d it is
done by every organization 1.39 Organizations have hierarchical
structures because a it is convenient to do so b it is done by
every organization c specific responsibilities can be assigned for
each level d it provides opportunities for promotions
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
1.40
Which of the following functions is the most unlikely in an
insurance company. a Training b giving loans c bill of material d
accounting
1.41
Which of the following functions is most unlikely in a
university a admissions b accounting c conducting examination d
marketing
1.42
Which of the following functions is most unlikely in a purchase
section of an organization. a Production planning b order
processing c vendor selection d training
1.43
Which is the most unlikely function of a marketing division of
an organization. a advertising b sales analysis c order processing
d customer preference analysis
1.44
Which is the most unlikely function of a finance section of a
company. a Billing b costing c budgeting d labor deployment
1.45
Match quality of information and how it is ensured using the
following list QUALITY (i) Accurate HOW ENSURED (iv) Include all
data
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
(ii) Complete (iii)Timely a (i) and (v) b (ii) and (vi) c (iii)
and (vi) d (i) and (iv) 1.46
(v) Use correct input and processing rules (vi) Include all data
up to present time
Match quality of information and how it is ensured using the
following list QUALITY (i) Accurate (ii) Complete (iii) Timely a
(ii) and (v) b (ii) and (vi) c (ii) and (iv) d (iii) and (iv) HOW
ENSURED (iv) Include all data (v) Use correct input and processing
rules (vi) Include all data up to present time
1.47
Match quality of information and how it is ensured using the
following list QUALITY (i) Up-to-date (ii) Brief (iii) Significance
HOW ENSURED (iv) Include all data to present time (v) Give at right
time (vi) Use attractive format and understandable graphical charts
a (i) and (v) b (ii) and (vi) c (iii) and (vi) d (i) and (vi)
1.48
Match quality of information and how it is ensured using the
following list QUALITY (i)Up- to-date (ii)Brief HOW ENSURED (iv)
Include all data to present time (v) Give at right time
V. Rajaraman/IISc. Bangalore
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System Analysis and Design / Data and Information
Multiple Choice Questions
(iii) Significance
(vi) Use attractive format and understandable graphical
charts
a (i) and (iv) b (ii) and (v) c (iii) and (iv) d (ii) and (iv)
1.49 Match quality of information and how it is ensured using the
following list QUALITY (i)Brief (ii)Relevant (iii) Trustworthy a
(i) and (iv) b (ii) and (v) c (iii) and (vi) d (i) and (v) 1.50
Match quality of information and how it is ensured using the
following list QUALITY (i)Brief (ii)Relevant (iii)Trustworthy a
(ii) and (vi) b (i) and (iv) c (iii) and (v) d (ii) and (iv) 1.51
The quality of information which does not hide any unpleasant
information is known as a Complete b Trustworthy c Relevant d None
of the above 1.52 The quality of information which is based on
understanding user needs HOW ENSURED (iv) Unpleasant information
not hidden (v) Summarize relevant information (vi) Understands user
needs HOW ENSURED (iv) Unpleasant information not hidden (v)
Summarize relevant information (vi) Understands user needs
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System Analysis and Design / Data and Information
Multiple Choice Questions
a Complete b Trustworthy c Relevant d None of the above 1.53
Every record stored in a Master file has a key field because a it
is the most important field b it acts as a unique identification of
record c it is the key to the database d it is a very concise field
1.54 The primary storage medium for storing archival data is a
floppy disk b magnetic disk c magnetic tape d CD- ROM 1.55 Master
files are normally stored in a a hard disk b a tape c CD ROM d
computers main memory 1.56 Master file is a file containing a all
master records b all records relevant to the application c a
collection of data items d historical data of relevance to the
organization 1.57 Edit program is required to a authenticate data
entered by an operator b format correctly input data c detect
errors in input data d expedite retrieving input data 1.58 Data
rejected by edit program are a corrected and re- entered
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System Analysis and Design / Data and Information
Multiple Choice Questions
b removed from processing c collected for later use d ignored
during processing 1.59 Online transaction processing is used
because a it is efficient b disk is used for storing files c it can
handle random queries. d Transactions occur in batches 1.60 On-line
transaction processing is used when i) it is required to answer
random queries ii) it is required to ensure correct processing iii)
all files are available on-line iv) all files are stored using hard
disk a i ,ii b i, iii c ii ,iii, iv d i , ii ,iii 1.61 Off-line
data entry is preferable when i) data should be entered without
error ii) the volume of data to be entered is large iii) the volume
of data to be entered is small iv) data is to be processed
periodically a i, ii b ii, iii c ii, iv d iii, iv 1.62 Batch
processing is used when i) response time should be short ii) data
processing is to be carried out at periodic intervals iii)
transactions are in batches iv) transactions do not occur
periodically
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System Analysis and Design / Data and Information
Multiple Choice Questions
a i ,ii b i ,iii,iv c ii ,iii d i , ii ,iii 1.63 Batch
processing is preferred over on-line transaction processing when i)
processing efficiency is important ii) the volume of data to be
processed is large iii) only periodic processing is needed iv) a
large number of queries are to be processed a i ,ii b i, iii c ii
,iii d i , ii ,iii 1.64 A management information system is one
which a is required by all managers of an organization b processes
data to yield information of value in tactical management c
provides operational information d allows better management of
organizations 1.65 Data mining is used to aid in a operational
management b analyzing past decision made by managers c detecting
patterns in operational data d retrieving archival data 1.66 Data
mining requires a large quantities of operational data stored over
a period of time b lots of tactical data c several tape drives to
store archival data d large mainframe computers 1.67 Data mining
can not be done if a operational data has not been archived b
earlier management decisions are not available
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Multiple Choice Questions
c the organization is large d all processing had been only batch
processing 1.68 Decision support systems are used for a Management
decision making b Providing tactical information to management c
Providing strategic information to management d Better operation of
an organization 1.69 Decision support systems are used by a Line
managers. b Top-level managers. c Middle level managers. d System
users 1.70 Decision support systems are essential for a Dayto-day
operation of an organization. b Providing statutory information. c
Top level strategic decision making. d Ensuring that organizations
are profitable.
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System Analysis and Design / Data and Information
Multiple Choice Questions
Key to Objective Questions
1.1
b
1.2
b
1.3
c
1.4
c
1.5
c
1.6
d
1.7
a
1.8
a
1.9
b
1.10
b
1.11
a
1.12
c
1.13
b
1.14
d
1.15
d
1.16
a
1.17
c
1.18
b
1.19
b
1.20
a
1.21
c
1.22
b
1.23
c
1.24
d
1.25
b
1.26
b
1.27
c
1.28
a
1.29
a
1.30
c
1.31
b
1.32
c
1.33
d
1.34
c
1.35
c
1.36
a
1.37
b
1.38
b
1.39
c
1.40
c
1.41
d
1.42
a
1.43
c
1.44
d
1.45
a
1.46
c
1.47
c
1.48
a
1.49
d
1.50
a
1.51
b
1.52
c
1.53
b
1.54
c
1.55
a
1.56
b
1.57
c
1.58
a
1.59
c
1.60
b
1.61
c
1.62
c
1.63
d
1.64
b
1.65
c
1.66
a
1.67
a
1.68
c
1.69
b
1.70
c
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MODULE 1
INFORMATION FOR MANAGEMENTWORKED EXAMPLES1.1) If an information
system were to be designed for a hospital, what would be the
strategic and tactical information? Strategic information in
hospital 1.Cost-benefit of a new expensive diagnostic instrument.
(Such as CAT scanner). 2. Long-term forecasts for opening a ward
for old age patients. 3.Technical developments in routine
diagnostic instruments and decision to upgrade existing
instruments. Tactical information in hospital 1.Optimum replacement
periods and use of expensive instruments. 2.Optimum level of drugs
to be stocked keeping in view expiry dates of drugs. 3.Operation
theatre utilization data for improved performance
1.2)
For a hospital information system what would be the Operational
information required? 1. 2. 3. 4. List of patients discharged,
admitted in every department. Occupancy of beds and schedules for
admission of patients. Absenteeism data of nurses and technicians.
Operation theatre allotment and schedules.
1.3)
What is statutory information? What statutory information is
expected from a hospital? Information and reports that are required
by law to be sent to the government authority is called statutory
information. Statutory Information for Hospital 1. Birth and death
records. 2. Infectious diseases record. 3. Profit and loss
account.
1.4)
What type of Statutory information is to be provided by a
small-scale industry? Any information required by law to be sent to
government authorities such as: 1. Income Tax returns 2. Sales tax
returns 3. Excise duty 4. Employee state Insurance
1.5)
Is up-to-date information always timely? If not, give an example
of up-todate but not timely information? No, it is not necessary
that up-to-date information is always timely. For example giving
the correct information about the casualties and the damage caused
due to earthquake after a week. Another example is delivering a
newspaper dated 16 June with information Up-to-date a week
late.
Module 1: Data and Information 1.1 Distinguish between data and
information. Give two examples of data and information obtained by
processing data. 1.2 1.3 Give two examples of non-arithmetic data
processing. What is the main difference between strategic and
tactical information? If an information system is to be designed
for a hospital, what would be the strategic and tactical
information? 1.4 What is operational information? In what way is it
different from strategic information? For hospital information
system what would be the operational information required? 1.5 What
is statutory information? What statutory information is expected
from a hospital? 1.6 1.7 What type of statutory information is to
be provided by a small scale industry? What would you think are the
strategic, tactical and operational information needed by an
Electric Power Generation Corporation? 1.8 What would be the
strategic, tactical and operational information needs of a State
Road Transport Corporation? 1.9 1.10 1.11 What do you think are the
functional management areas in a large University? What do you
think are the functional management areas in a large student
hostel? What would be the strategic, tactical and operational
management responsibility assignments in a large hostel? What type
of information would be needed for managing the kitchen of the
hostel? 1.12 1.13 Give an example of incomplete information. What
is the difference between accuracy and trustworthiness of
information?
1.14
Is uptodate information always timely? If not, give an example
of uptodate but not timely information.
1.15 1.16 1.17 1.18
Does an attractive format of a report necessarily imply that it
is relevant? Why are organizations divided into departments and
sections? What are the primary functions of a marketing department
of an organization? In what ways do different departments in an
organization interact? Give an example.
1.19 1.20 1.21
Enumerate some functions which are common among many
organizations. Enumerate some functions which are common between a
hostel and a hospital. Explain how data will be processed to meet
the functional requirements of a purchase department.
1.22
Explain how data will be processed in a bank when a cheque is
presented by a customer and payment made to him (assume that the
bank uses computers).
1.23 1.24
Why is editing important in data entry? What is the difference
between on-line transaction processing and batch processing?
1.25 1.26 1.27 1.28 1.29 1.30 1.31 1.32
When is batch processing preferred? What is the basic difference
between business data processing systems and MIS? What type of
information is provided by MIS? What is the difference between MIS
and DSS? What will an MIS provide in a marketing function? What
will a DSS provide in a marketing function? What do you understand
by archival data? How can archival data be used? What is data
mining? Give an example of data mining.
System Analysis and Design/Information for Management
Case Study
INFORMATION PROCESSING FOR A STORE - AN OVERVIEW A Small Case
Example In what follows we will present a broad overview of how
data is processed to meet the functional requirements of a store.
The presentation below will be an overview. The important functions
of a store are: to keep an up to date ledger containing stock
positions, cater to requisitions for issue of items from the store,
initiate reorder of items whose stock is below a specified limit,
update stock register when items are received, and answer enquiries
regarding availability of items in stores.
In a computer based system the stock ledger is organized in a
suitable form for easy updating and retrieval and recorded on a
magnetic disk. Magnetic disk storage is the primary storage medium
for storing large data bases. This is due to the fact that any
record can be directly accessed. Magnetic tapes are used primarily
as a back-up storage unit for keeping copies of data on disk. Tapes
are also useful for storing old files and for interchanging files
between different computers.
In order to create a stock ledger for a computer-based system it
is necessary to first assign unique codes for each item in the
store. The unique code assigned to each item is known as the key of
the item record and identifies the record. After that it is
necessary to find out what data fields are needed for each item in
the stock. The fields are determined by working backwards, that is,
first asking what outputs are needed and based on that
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System Analysis and Design/Information for Management
Case Study
determining the data needed. The fields are organized as a
record and stored in a data base. This data base is the primary or
master file for the store. (It is the computer readable version of
a stock ledger used in a store). Once the record format for each
item in the store is determined, one record is created for each
item in the store. These records are entered manually by a data
entry operator who enters the records using a keyboard of a
terminal connected to the computer. This is called on-line data
entry. Data may also be entered on a separate computer such as
Personal Computer (PC) and stored on a floppy disk. This is called
off-line data entry.
In off-line data entry the data entry machine is a low cost
machine. If the volume of data to be entered is very large, then a
number of machines can be used and data prepared, checked and
corrected. As opposed to this, an on-line data entry method uses
terminals connected to the computer. In such a case the computer
should be timeshared. On-line data entry is appropriate for
inserting, deleting or correcting some records in fields.
The data on floppy disk can then be transferred to the disk
connected to the computer. Off-line entry is used when the data
base is very large and the computer used is a server or a mainframe
computer. If the data base is small, the PC itself may be used for
data entry and for data processing.
Before data is stored in the disk-file it must be ensured that
any errors made during data entry is detected and corrected. This
is done by a program called an edit program and a
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System Analysis and Design/Information for Management
Case Study
control total checking program. Such programs are essential to
ensure the validity of data in a master file.
A procedure similar to the one used to create the master file is
also used to keep the data in the master file up-to-date when new
items are received or new stock of items already in the ledger are
received. Table 1 summarizes the operations performed for other
functions. The format of a record for entering requests uses the
same item codes assigned in creating the master file. Other fields
are determined based on what outputs are needed. In this case a
reasonable format for requests is: (item code, item name, quantity
requested) Table 1 Operations Performed in Stores Information
Processing 1. Create stock ledger Codify items Determine data
fields needed for each item Create a record for each item Organize
the records as a data base Issues/Reorder Codify items Determine
data fields required in each request Determine data fields required
for each issue Create record format for requests and issues Create
record format for reorder Receipts Codify items Determine data
fields required in each receipt Create record format for receipts
Enquiry Codify items Record format for enquiry Record format for
response
2.
3.
4.
The record format for a reorder request would be: item code,
item name)
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System Analysis and Design/Information for Management
Case Study
( The quantity to be reordered is normally stored in the file
maintained by the Purchase department) The record format for issues
would be : (item code, item name, quantity requested, quantity
issued) The request record is entered through a keyboard by a
requester. It is checked for validity by a program. A valid request
is forwarded to a retrieval program which
retrieves the data on the requested item from the Master file on
disk. The item code in the request is used as the key for
retrieval. If the requested number of items is available, then an
issue slip is printed; otherwise a reorder request is printed. Care
must, however, be taken to ensure that once a reorder is requested
it is not requested again till the item reordered is taken into
stock. Each request slip processed by the computer is called a
transaction. If each request is processed as and when it arrives
and the terminal on which the request is entered is connected to
the computer, then the processing method is called On-Line
Transaction Processing (OLTP). There is another method of
processing requests. A number of requests arriving during a day
(for example) are collected and formed into a batch. The data in
such a batch can be keyed-in off-line and a floppy disk created.
This floppy disk can then be used to enter requests on the computer
which has the Master file. The entire batch is processed and
outputs are printed. This mode of processing is called batch
processing. Batch
processing is usually more efficient. It, however, is not as
timely as on-line processing. In operations such as payroll
processing which is done periodically, batch processing is more
appropriate.
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Enquiry system is normally an on-line transaction processing
system as it is the most natural way of answering users' queries.
In an enquiry system also, a user's query is first checked for
validity of item code, etc. before it is processed. A variety of
information systems used in practice are primarily on-line
transaction processing systems. Common examples are airlines and
railway ticket reservation
systems. Designing such systems require special care to ensure
that response to enquiries are fast and that the system has a hot
standby if there is a failure. High reliability is required as
failures can be catastrophic (imagine many persons getting the same
berth reserved on a train). Similarly reliability and availability
is essential in on-line banking systems.
MIS and DSS for Stores The processing methods presented in the
last para are for routine data processing. The information they
provide is operational information. The system required to obtain
tactical information require further processing. Such systems are
known as Management Information Systems (MIS). In the stores
processing case study, some tactical decisions would be: at what
stock level should reorder be initiated? How much should be
reordered? These are determined based on data such as rate of
issue of each item, time needed for delivery from date of order,
transport cost, storage cost, shelf life, and loss incurred if an
item is out-of-stock. These data have to be collected separately
over a period of time, often as a byproduct of a routine data
processing system. In the stores case daily issues of some critical
items can be abstracted and the average issue can be computed. Data
on delivery times, transport cost etc. can be separately collected.
Well
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Case Study
known methods of operations research can then be used to compute
stock level for initiating reorder and the optimal quantity to be
reordered. Operational data collected over a period of time is
called data archives and the process of collecting it is called
data archiving. With the availability of massive disks in which
terabytes (1012 bytes) of data can be stored, it has become
feasible to analyse the archived data. Analyzing archived data to
observe patterns which assist in management decision making is
called data mining. A stores manager may, based on his experience,
think that in the months of October, December and April the sale of
sugar is very high compared to other months. This conjecture maybe
verified by data mining. In data mining a rule is formulated which
may say that in October sugar sale is 1.5 times the average, in
December it is 1.3 times normal and in April it is 1.4 times
normal. This rule may be verified within a specified margin of
error by examing the data archive. If the rule turns out to be
correct, a manager will be able to decide how much sugar is to be
stocked in these months. This is a simple example of the use of
archival data and data mining to assist in tactical management. As
another example of tactical information requirement, let us
consider the question of fixing credit limits for customers. In
order to arrive at this, the following inputs would be useful:
Customer details such as income, occupation etc. Customer payment
history Volume of purchase by customer Outstanding dues (if any)
from the customer.
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Case Study
Using these one may formulate some rules to arrive at the credit
limits and also predict their possible effect such as: anticipated
effect on sales caused by varying credit limits anticipated
loss/profit due to credit limits.
By analyzing the impact of credit limits as specified above, a
decision may be arrived at to fix credit limits. The primary point
to note is that one has to formulate a model and sometimes simulate
a system to obtain tactical information. The operational
information from routine
processing becomes an input to obtain tactical information.
Strategic information is obtained through what are known as
Decision Support Systems (DSS). In the stores example a strategic
decision would be to reduce variety in inventory by discontinuing
some items in store, deciding what new items to introduce in the
store, and when to open a new branch. Decisions such as these
require provisions for a variety of data transformations and
representations. Strategic information is often unstructured.
Strategic decisions are made after trying to answer questions such
as "What will be the profit if I take a decision and what will be
the long range loss if I don't take it?". In a complex decision
many parameters will be involved. Identifying these and predicting
their impact on a decision needs judgements coupled with analysis.
For example, taking a strategic decision of whether to open a new
branch or not would require the following information: Projected
demands in the new branch Impact on current branch Pricing in new
branch
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Case Study
Competition in new location Profitability of new branch
These have to be provided using analytical and simulation model
known as decision support models. These models are more difficult
to evolve than those needed in tactical information development.
Decision support systems should also provide aids to the manager
for conceptualization such as charts, graphs, etc. They should also
provide facilities to ask a variety of queries on the data base. A
variety of summary reports should be made available on request. The
overall purpose of decision support systems is to aid in strategic,
unstructured decision making. Developing such systems is much more
difficult than developing operational systems. They, however, are
the ones
required by the top management of organizations.
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MODULE 1 REFERENCE BOOKS 1. Most of the material in this chapter
has been taken from the book Analysis and Design of Information
Systems and the accompanying Self-Study guide written by
V.Rajaraman and published by Prentice Hall of India, new Delhi
(2002) (Permission of publisher taken). 2. The following books have
a good treatment of Information Systems: (i) Systems Analysis and
Design, by K.E.Kendall and J.E.Kendall, Pearson Education (Asia)
India reprint 2003 Chapter 1 pp.1 to 4 and Chapter 2 pp. 29 to 45
deal with the topic of understanding organizations. The examples
are more relevant to U.S.A. rather than our country. (ii) Modern
System Analysis and Design, by J.A.Hoffer, George J.F. and Valacich
J.S., Pearson Education (Asia) Indian Reprint 2002. pp.15-17 have a
very short treatment of what we give in Module1 (iii)Information
Systems Today by LiJessup and J.Valacich, Prentice Hall of India,
2003. Chapter 6, pp.168 to 198 deal with organizational structure.
(iv) Management Information Systems (The Managers View), by
R.Schultheis and M.Sumners, Tata McGraw Hill, 1999. Part III pp.356
to 457 have a very detailed discussion of operational, tactical and
strategic management and appropriate information systems. (v)
Management Information Systems, by K.E.Laudon and J.P.Laudon,
Pearson Education Asia, Indian Reprint 2004. Chapter 2, pp. 36 to
71 cover the topics discussed in Module in great detail.
SUMMARY OF MODULE 1
1.
Data and information are not synonymous. Information is
processed data. Data may be processed by performing arithmetic
operations on them. Data may also be processed by reorganizing them
by applying appropriate rules such as sorting, merging, selection,
matching, filtering etc.
2.
Information requirements for managing organizations may be
classified as strategic, tactical and operational.
3.
Strategic information is needed for long range planning. It is
less structured and difficult to obtain by processing raw data.
4.
Tactical information is used to take short range decisions and
for better control of the functioning of the organization. It
requires complex and ingenious processing of data.
5.
Operational information is used for day-to-day management of
organizations. It is obtained by simple processing of data, it is
well structured, and more voluminous.
6. 7.
Statutory information consists of reports to be sent to
government by law. Management of organizations is divided
functionally. Depending on the size of the organization, each
function maybe delegated to different managers.
8.
Large organizations would have a hierarchical management
structure with top level managers, middle level managers and line
managers.
9.
Top level managers are expected to make policies and need
strategic information. Middle level mangers direct and control the
functioning of organization to achieve optimal performance and need
tactical information. Line managers supervise day-
to-day operations and steer operations to meet targets set by
middle level managers. They need operational information. 10. The
primary functional areas of many organizations are: Human Resource
Development, Production, Materials, Finance, Marketing and
Research, Design and Development. Organizations are divided into
many departments, each with a specific set of 11. functions. 12.
Even though an organization may have some specialized functions,
many functions such as Accounts, Human resource development,
Stores, Purchase are common among organizations. 13. Each function
in an organization needs operational, tactical and strategic
information. 14. The information given to managers must be
accurate, complete and trustworthy. It must also be uptodate and
timely. It must be relevant, brief, attractively presented and its
significance understandable. 15. 16. 17. Operational data is
codified and stored in a M