Information System Management
(MIS)
Chapter One: The importance of The MIS
Dr. Baha’eddin Alhaj Hasan
Department of Industrial Engineering
Motivation
Graduated students realize how valuable for the job
market it is to have skills related to information systems.
In this course you will learn what information systems
are all about and why they are so fundamental to
business and society.
Our journey will be exciting filled with revelations about
business strategies, technology trends and innovations,
and also tips that will help you work smarter as a student
What is an Information System (IS)?
At the heart of every organization is its information
system.
Either it is on the cutting edge of technology company
like Google, Facebook …, or those that don’t seem very
high tech (family owned restaurant or a fitness gym
Can hardly survive without information systems or
without people who know how to build and manage
them.
What is an Information System (IS)?
A set of interrelated components that collect, manipulate,
store, and disseminate data and information and provide
a feedback mechanism to meet an objective (Stair and
Reynolds, 2010).
The Information Systems major is for people who want to
solve problems businesses face and create new
opportunities by using the latest computer technology.
They help organizations use technology to operate more
efficiently. They work with other business and IT people
to build systems for executives and managers that
support their decisions (University of Arkansas).
What is an Information System (IS)?
The study of complementary networks of hardware
and software that people and organizations use to
collect, filter, process, create, and distribute data
(https://en.wikipedia.org/wiki/Information_system).
Combinations of hardware, software, and
telecommunications networks that people build and
use to collect, create, and distribute useful data,
typically in organizational settings (Information
Systems for Business & Beyond, 2019).
Remember
Data, Information and Knowledge
Data are raw facts.
Data is pure values which themselves do not have
much significance.
Data may be in the form of numbers, letters,
characters, images and graphics, audios, or
videos.
Information is processed, manipulated, and
مفسر
interpreted data.
Knowledge: is an interface or conclusion drawn from
the information.
Example
Transforming Data to Knowledge:
A patient’s single high-temperature reading at a
24-hour walk-in clinic
But entered into the clinic’s information system
and combined with the patient’s other symptoms
and previous medical records, it becomes far
more valuable as a diagnostic tool
Combining it with data from other patients
entering all clinics that week.
The patterns may warn of a flu outbreak or
even a major epidemic
Centers for Disease Control and Prevention draw
on data like this to map the spread of diseases
and take swift action to protect the public.
Data Information Knowledge
Characteristics of Information
Accurate: Information must not contain errors
Accessible: authorized users should be abel to
access the information.
Complete: Information must contain all important
elements.
Economical: Information should be economical to
produce in terms of both time and cost.
Format: available in the desired format.
Flexible: ability to transform information from one
form to another and flexibility to be used for different
purposes
Characteristics of Information …
Cont’d
Reliable: Information is dependable, should be
generated using correct data
Relevant: Information must be relevant
Secure: saved in safe places with appropriate access
authorization
Simple: Information must be easily understandable
and usable.
Timely: Information must be available when it is
needed and up to date.
Verifiable: there should be means to cross check the
information
Six Major Roles of Information Systems
Managing Operations
Operations Management: involves the design,
operation, and improvement of the systems and
processes the organization uses to deliver its goods
and services.
Information systems
Are crucial for tracking employee payroll, taxes,
benefits ..
Accounting information systems are essential to
track accounts receivable, to process transactions,
to procure goods and services, and to pay the
suppliers.
Back-office Information Systems keep all details
about the company and operations.
Commercial information systems software
packages: SAP, Oracle, NetSuite, or QuickBooks.
Industry Specific Operations
Information Systems are needed to manage industry specific
operations
Manufacturers need systems to manage assembly lines,
product quality, production schedules, and just-in-time supply
deliveries
Industry Specific Operations …
Cont’d
Colleges and universities need systems to manage
student academic records, class scheduling, faculty
assignments, and student financial aid.
Industry Specific Operations …
Cont’d
Transportation companies rely on information
systems equipped with GPS to track their fleets,
optimize routes, and conserve gas.
Companies that buy products from suppliers around
the globe need real-time updates on their global
supply chains to manage inventories and reduce
costs
Supporting Customer Interactions
Customer Relationship Management (CRM) systems,
(discussed in Chapter 5), build and maintain relationships
and support all the processes that underlie them.
Identifying each product in the shopper’s basket, tallies
the total, feeds the data to the inventory system.
Strategies to prevent theft.
Web-based shopping and self service:
less phone calls
Web application helps understanding the motives and
desires of each person (suggestions, special
discounts, wish list …)
Making Decisions
Making Decisions … Cont’d
Managers make decisions every day, and many rely
mainly on their own judgment.
A survey showed that 40% of major corporate
decisions were based on instincts (intuition)
Good decisions those which are based on data (data-
driven decision making)
Information systems provides this information.
Large number of pieces of data to reveal important
trends and patterns.
Example: the sales system will show how much
the restaurant makes in the last hour of business
manager makes a good decision about closing
early.
Making Decisions … Cont’d
Business intelligence refers to all the information
managers use to make decisions
This information can come from many sources
beyond the organization’s own information
systems.
The restaurant manager, for example, might
combine customer records with publicly available
information about income levels by area code to
help make a smart decision about where to open
another branch.
Decision support systems and business intelligence,
blends rapid analysis of information sources with
artificial intelligence and human knowledge.
Collaborating on Teams
Collaboration and teamwork
Innovative information systems that allow people
to work together at any time and from any place.
Participants can hold online meetings, share
documents and applications, and interact using
microphones, video cameras, and whiteboards.
Social networking sites support online
communities: Facebook, Twitter …
Services that target business users, such as
Microsoft’s SharePoint, offer additional useful
services such as shared calendars and group
document editing.
Remember
Improving Individual Productivity
To improve productivity at work, people can choose
from a bewildering variety of computer software and
electronic devices, but more is not necessarily better.
You should select carefully, with an eye to the
functions you need most, ease of use, and short
learning curves.
For example: using the reference manager for
citations
Data
It is all about data
Formats of data: numbers, letters, ….
Regardless of the initial form, data is converted into
digital format.
https://www.youtube.com/watch?v=c36M6oJS8sc
https://www.youtube.com/watch?v=X3paOmcrTjQ
IoT
It is becoming the main source for data; as billions of
devices are connected.
https://www.youtube.com/watch?v=WCfwEYaPuDQ
Devices Connected (IoT)
Devices Connected (IoT)
Information Systems, the
Discipline
The study of information systems: how people,
technology, processes, and data work together—is a
lively discipline involving university faculty, private-
sector analysts, government researchers, and more.
Management Information Systems (MIS): a type of
information system that supports decision making at
the managerial level
Why do Industrial Engineering
learn this topic?
The field draws researchers and practitioners from
business, computer science, psychology, sociology,
public administration, and many other fields
They all are interesting in creating systems to help
organizations do more with less
Make companies more competitive, increase
productivity.
Major Research Topics in MIS
Why do Industrial Engineering
learn this topic?
ويسعى الباحثون جاهدين ملواكبة التغيرات واالتجاهات السريعة،نظام املعلومات اإلدارية هو تخصص شاب
MIS is a young discipline, and researchers strive to
keep up with the rapid changes and trends
IoT
Generating big data
Need analytical tools
e-Marketplaces:
Threatening traditional players
Airbnb
– booking rooms provided by individuals
– Competitive
– Own zero rooms
Uber …
Big data
Volume of data generated online per second:
Emails: 2,314,084 sent
Tweets: 7,231 sent
Instagram: 1,129 images uploaded
Tumblr: 1,352 posts
Skype: 1,473 calls
Internet: 22,148 GB of traffic
Google: 44,490 searches
YouTube: 84,841 videos watched
Facebook: 30,000 likes, 5 new profiles
Source: How Business Works, 2015, p262-263
Information Systems throughout
the Organization
The “people” component of information systems is
critical; Just making technology work is not enough to
create a successful information system.
Information Systems throughout the
Organization
Why should you learn about information systems?
“My career is marketing, developing creative ad
campaigns. Those IT folks speak their own
language, and I speak mine.”
“I’m in human resources—the only system we use
is the one the company set up. It’s really a
disaster, too. We really need a way to train new
people faster, before the ones who have all the
knowledge here leave.”
“We’re a nonprofit volunteer organization. We
can’t spend money on expensive overhead like IT,
so what’s the point? We don’t need anything
fancy—just email and word processing.”
Information Systems throughout
the Organization
These people don’t realize the importance of inf.
systems and the individuals who know about it, and
how it can contribute to the organization’s success
1
Systems, Roles, and
Development Methodologies
Systems Analysis and Design, 8e
Kendall & Kendall
Global Edition
Copyright © 2011 Pearson Education
Learning Objectives
• Recall the basic types of computer-based systems
that a systems analyst needs to address.
• Understand how users working in context with new
technologies change the dynamics of a system.
• Realize what the many roles of the systems analyst
are.
• Comprehend the fundamentals of three development
methodologies: SDLC, the agile approach, and
object-oriented systems analysis and design .
• Understand what CASE tools are and how they help a
systems analyst.
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Information—A Key Resource
• Fuels business and can be the critical
factor in determining the success or
failure of a business
• Needs to be managed correctly
• Managing computer-generated
information differs from handling
manually produced data
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Major Topics
• Fundamentals of different kinds of
information systems
• Roles of systems analysts
• Phases in the systems development life
cycle as they relate to Human-
Computer Interaction (HCI) factors
• Computer-Aided Software Engineering
(CASE) tools
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Systems Analysts Recommend, Design, and
Maintain Many Types of Systems for Users
• Transaction Processing Systems (TPS)
• Office Automation Systems (OAS)
• Knowledge Work Systems (KWS)
• Management Information Systems (MIS)
• Decision Support Systems (DSS)
• Expert Systems (ES)
• Executive Support Systems (ESS)
• Group Decision Support Systems (GDSS)
• Computer-Supported Collaborative Work Systems
(CSCWS)
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A systems analyst
may be involved with
Strategic
Level
any or all of these
systems at each
organization level.
Higher
Level
Knowledge
Level
Operational
Level
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Operational Level
نظام معالجة املعامالت
• Transaction Processing System (TPS)
• Process large amounts of data for routine business
transactions
• Boundary-spanning
• Support the day-to-day operations of the company
• Examples: Payroll Processing, Inventory
Management
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Knowledge Level
(OAS) نظام التشغيل اآللي للمكاتب
• Office Automation System (OAS)
• Supports data workers who share information, but do not
usually create new knowledge
• Examples: word processing, spreadsheets, desktop
publishing, electronic scheduling, communication through
voice mail, email, teleconferencing
• Knowledge Work System (KWS)
• Supports professional workers such as scientists, engineers,
and doctors
• Examples: computer-aided design systems, virtual reality
systems, investment workstations
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Higher Level
• Management Information System (MIS)
• Supports a broad spectrum of organizational tasks including
decision analysis and decision making
• Examples: profit margin by sales region, expenses vs. budgets
• Decision Support System (DSS)
• Aids decision makers in the making of decisions
• Examples: financial planning with what-if analysis, budgeting with
modeling
• Expert System (ES) and Artificial Intelligence
• Captures and uses the knowledge of an expert for solving a
particular problem which leads to a conclusion or recommendation
• Researching understanding natural language and the ability to
reason through a problem to its logical conclusion
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Strategic Level
(ESS) نظام الدعم التنفيذي
• Executive
• Support System (ESS)
• Helps executives to make unstructured strategic decisions in
an informed way
• Examples: drill-down analysis, status access
• Group Decision Support System (GDSS)
• Permit group members to interact with electronic support.
• Examples: email, Lotus Notes
• Computer-Supported Collaborative Work System
(CSCWS)
• CSCWS is a more general term of GDSS.
• May include software support called groupware for team
collaboration via network computers
• Example: video conferencing, Web survey system
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Integrating New Technologies into
Traditional Systems
التجارة اإللكترونية
• Ecommerce and Web Systems
• Enterprise Resource Planning Systems
• Wireless and Mobile Systems
• Open Source Software
• Need for Systems Analysis and Design
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Systems Analysts Need to Be Aware that
Integrating Technologies Affects all Types of
Systems (Figure 1.2)
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Ecommerce and Web Systems
التجارة اإللكترونية وأنظمة الويب
• Benefits
• Increasing user awareness of the availability of a
service, product, industry, person, or group
• The possibility of 24-hour access for users
• Improving the usefulness and usability of interface
design
• Creating a system that can extend globally rather
than remain local, thus reaching people in remote
locations without worry of the time zone in which
they are located
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مشروع
Enterprise Resource Planning
Systems (ERP)
• Performs integration of many
information systems existing on
different management levels and within
different functions
• Example: SAP, Oracle
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Wireless and Mobile Systems
• A system analyst may be asked to design
standard or wireless and mobile
communication networks that integrate voice,
video, and email into organizational intranets
or industry extranets.
• A system analyst may also be asked to
develop intelligent agents.
• Example: iPhone, iPod, BlackBerry
• Wireless communication is referred to as m-
commerce (mobile commerce).
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Open Source Software
• An alternative of traditional software
development where proprietary code is
hidden from the users
• Open source software is free to distribute,
share, and modify.
• Characterized as a philosophy rather than
simply the process of creating new software
• Example: Linux Operating System, Apache
Web Server, Mozilla Firefox Web Browser
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Need for Systems Analysis and
Design
• Installing a system without proper planning
leads to great user dissatisfaction and
frequently causes the system to fall into
disuse.
• Lends (help) structure to the analysis and
design of information systems
• A series of processes systematically
undertaken to improve a business through
the use of computerized information systems
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Roles of the Systems Analyst
أدوار محلل األنظمة
• The analyst must be able to work with
people of all descriptions and be
experienced in working with computers.
• Three primary roles:
• Consultant
• Supporting expert
• Agent of change
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Qualities of the Systems Analyst
• Problem solver
• Communicator
• Strong personal and professional ethics
• Self-disciplined and self-motivated
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Systems Development Life Cycle
(SDLC)
• The systems development life cycle is a
phased approach to solving business
problems.
• Developed through the use of a specific
cycle of analyst and user activities
• Each phase has unique user activities.
Kendall & Kendall Copyright © 2011 Pearson Education 1-20
Systems Development Life
Cycle (SDLC)
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BjVzpqk
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The Seven Phases of the Systems
Development Life Cycle (Figure 1.3)
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Incorporating Human-Computer
Interaction (HCI) Considerations
• The demand for دمج
analysts who are
capable of incorporating HCI into the
systems development process keeps
increasing, as companies begin to
realize that the quality of systems and
the quality of work life can be improved
by taking a human-centered approach
at the outset of a project.
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Identifying Problems,
Opportunities, and Objectives
• Activity:
• Interviewing user management
• Summarizing the knowledge obtained
• Estimating the scope of the project
• Documenting the results
• Output:
• Feasibility report containing problem definition and
objective summaries from which management can
make a decision on whether to proceed with the
proposed project
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Determining Human Information
Requirements
• Activity:
• Interviewing
• Sampling and investing hard data
• Questionnaires
• Observe the decision maker’s behavior and environment.
• Prototyping
• Learn the who, what, where, when, how, and why of the
current system.
• Output:
• The analyst understands how users accomplish their work
when interacting with a computer; and begin to know how
to make the new system more useful and usable. The
analyst should also know the business functions and have
complete information on the people, goals, data, and
procedure involved.
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Analyzing System Needs
• Activity:
• Create data flow, activity, or sequence
diagrams.
• Complete the data dictionary.
• Analyze the structured decisions made.
• Prepare and present the system proposal.
• Output:
• Recommendation on what, if anything,
should be done
Kendall & Kendall Copyright © 2011 Pearson Education 1-26
Designing the Recommended
System
• Activity:
• Design procedures for data entry.
• Design the human-computer interface.
• Design system controls.
• Design database and/or files.
• Design backup procedures.
• Output
• Model of the actual system
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Developing and Documenting
Software
• Activity:
• System analyst works with programmers to develop any
original software.
• Works with users to develop effective documentation.
• Programmers design, code, and remove syntactical errors
from computer programs.
• Document software with help files, procedure manuals,
and Web sites with Frequently Asked Questions.
• Output:
• Computer programs
• System documentation
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Testing and Maintaining the
System
• Activity:
• Test the information system.
• System maintenance.
• Maintenance documentation.
• Output:
• Problems, if any
• Updated programs
• Documentation
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Implementing and Evaluating the
System
• Activity:
• Train users.
• Analyst plans smooth conversion from old
system to new system.
• Review and evaluate system.
• Output:
• Trained personnel
• Installed system
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Some Researchers Estimate that the Amount of Time Spent
on Systems Maintenance May Be as Much as 60 Percent of
the Total Time Spent on Systems Projects (Figure 1.4)
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The Impact of Maintenance
• Maintenance is performed for two
reasons:
• Removing software errors
• Enhancing existing software
• Over time the cost of continued
maintenance will be greater than that of
creating an entirely new system. At that
point it becomes more feasible to
perform a new systems study.
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Resource Consumption over the
System Life (Figure 1.5)
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Approaches to Structured Analysis and Design
and to the Systems Development Life Cycle
• Traditional systems development
life cycle
• CASE systems development life
cycle
• Object-oriented systems analysis
and design
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Computer-Aided Software
Engineering (CASE) tools
• CASE tools are productivity tools for
systems analysts that have been created
explicitly to improve their routine work
through the use of automated support.
• Reasons for using CASE tools
• Increasing analyst productivity
• Improving analyst-user communication
• Integrating life cycle activities
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Case Tool Classifications
• Upper CASE tools perform analysis
and design.
• Lower CASE tools generate
programs from CASE design.
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Upper CASE Tools
• Create and modify the system
design.
• Help in modeling organizational
requirements and defining system
boundaries.
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Lower CASE Tools
• Lower CASE tools generate
computer source code from the
CASE design.
• Source code is usually generated in
several languages.
• Decreases maintenance time
• Generates error-free code
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The Agile Approach
• Based on:
• Values
• Principles
• Core practices
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Agile Values
• Communication
• Simplicity
• Feedback
• Courage
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Four Agile Resources
• Resources are adjusted to ensure
successful project completion.
• Time
• Cost
• Quality
• Scope
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Five Stages of Agile Development
خمس مراحل من التطور السريع
• االستكشاف
• Exploration
• التخطيط
• التكرارات حتى اإلصدار األول
• Planning • اإلنتاج
• Iterations to the first release
• الصيانة
• Productionizing
• Maintenance
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Agile Project Development
Process (Figure 1.7)
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The Agile Approach
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Object-Oriented (O-O) Systems
Analysis and Design
• Alternate approach to the structured approach of
the SDLC that is intended to facilitate the
development of systems that change rapidly in
response to dynamic business environments
• Analysis is performed on a small part of the
system followed by design and implementation.
• The cycle repeats with analysis, design, and
implementation of the next part and this repeats
until the project is complete.
• Examines the objects of a system
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Object-Oriented (O-O)
Systems Analysis and Design
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7OO8OK4
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Unified Modeling Language (UML)
Phases
• Define the use case model:
• Use case diagram
• Use case scenarios
• Create UML diagrams.
• Develop class diagrams.
• Draw statechart diagrams.
• Modify the UML diagrams.
• Develop and document the system.
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Choosing a Method
• Choose either:
• SDLC
• Agile
• Object-oriented methodologies
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When to Use SDLC
• Systems have been developed and
documented using SLDC.
• It is important to document each step.
• Upper level management feels more
comfortable or safe using SDLC.
• There are adequate resources and time to
complete the full SDLC.
• Communication of how new systems work is
important.
Kendall & Kendall Copyright © 2011 Pearson Education 1-49
When to Use Agile
• There is a project champion of agile methods in the
organization.
• Applications need to be developed quickly in
response to a dynamic environment.
• A rescue takes place (the system failed and there is
no time to figure out what went wrong).
• The customer is satisfied with incremental
improvements.
• Executives and analysts agree with the principles of
agile methodologies.
Kendall & Kendall Copyright © 2011 Pearson Education 1-50
When to Use Object-Oriented
• The problems modeled lend themselves to
classes.
• An organization supports the UML learning.
• Systems can be added gradually, one
subsystem at a time.
• Reuse of previously written software is a
possibility.
• It is acceptable to tackle the difficult
problems first.
Kendall & Kendall Copyright © 2011 Pearson Education 1-51
Summary
• Information is a key resource.
• Systems analysts deal with many types of
information systems.
• Integration of traditional systems with new
technologies
• Roles and qualities of the systems analyst
• The systems development life cycle
• CASE tools
• Agile systems development
• Object-oriented systems development
Kendall & Kendall Copyright © 2011 Pearson Education 1-52
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright © 2011 Pearson Education
1-53
Information System Management
(MIS)
Chapter Three:
Information Systems Organization and Strategy
Dr. Baha’eddin Alhaj Hasan
Department of Industrial Engineering
Information Systems and Organizations
The interaction between information technology and
organizations is complex and is influenced by many
mediating factors.
.عوامل التوسط
The Two-Way Relationship between Organizations and Information Technology
Common Features of Organizations
• All organizations have some similar “structural”
features:
تقسيم واضح للعمل
Clear division of labour
التسلسل الهرمي
Hierarchy
Explicit rules and procedures القواعد واإلجراءات الصريحة
Impartial judgments أحكام محايدة
Technical qualifications for positions املؤهالت الفنية للمناصب
Maximum organizational efficiency أقصى قدر من الكفاءة التنظيمية
Routines and Business Processes
• Routines are patterns of individual behavior.
• Business processes are a collection of routines.
• Business firms are a collection of business
processes.
• Business processes enable organizations to cope
with all recurring expected situations.
.تمكني املنظمات من التعامل مع جميع املواقف املتوقعة املتكررة
Routines, Business Processes, and Firms
Organizational Culture
• What products the organization should produce
• How and where it should be produced
• For whom the products should be produced
Unique Features of Organizations
• Structures
• الهياكل
• Goals • األهداف
• Constituencies • الدوائر االنتخابية
• Leadership styles • أساليب القيادة
• املهام
• Tasks
• البيئات املحيطة
• Surrounding environments
Organizations and Environments
متبادل
• Organizations and environments have a reciprocal
relationship.
• Organizations are open to, and dependent on, the
social and physical environment.
• Organizations can influence their environments.
.يمكن للمنظمات أن تؤثر على بيئاتها
Organizations and Environments
Organizations and Environments
Environments shape what organizations can do,
but organizations can influence their
environments and decide to change
environments altogether.
Information technology plays a critical role in
helping organizations perceive environmental
change and in helping organizations act on their
environment.
Other Differences Among Organizations
• Ultimate goals
• Different groups and constituencies
• Nature of leadership
• Tasks and technology
Organizing the IT Function
The information systems department is
responsible for maintaining:
• Hardware
• Software
• Data storage
• Networks
Information Technology Services
Figure 3-6
Information Technology Services
Includes Specialists:
• Programmers: Highly trained, writers of the software
instructions for computers
• Systems analysts: Translate business problems into
solutions, act as liaisons between the information
systems department and rest of the organization
• Information system managers: Leaders of various
specialists
Information Technology Services
Includes Specialists: (Continued)
• Chief Information Officer (CIO): Senior manager in
charge of information systems function in the firm
• End users: Department representatives outside the
information system department for whom applications
are developed
Economic Impacts
• IT changes both the relative costs of capital and the
costs of information.
• Information systems technology is a factor of
production, like capital and labor.
Economic Impacts
:نظرية تكلفة املعامالت
• Transaction cost theory: Firms seek to economize on
the cost of participating in markets (transaction
costs).
• IT lowers market transaction costs for firm, making it
worthwhile for firms to transact with other firms rather
than grow the number of employees.
The Transaction Cost Theory of the Impact of
Information Technology on the Organization
نظرية تكلفة املعامالت لتأثير تكنولوجيا املعلومات على املنظمة
Figure 3-7
Economic Impacts
:نظرية الوكالة الشركة هي العالقة
• Agency theory: Firm is nexus of contracts among
self-interested parties requiring supervision.
• Firms experience agency costs (the cost of managing
and supervising).
• IT can reduce agency costs, making it possible for
firms to grow without adding to the costs of
supervising, and without adding employees.
The Agency Cost Theory of the Impact of
Information Technology on the Organization
Figure 3-8
Organizational and Behavioral Impacts
:منظمات تسطيح تكنولوجيا املعلومات
IT Flattens Organizations:
• Facilitates flattening of hierarchies
• Broadens the distribution of timely information
• Increases the speed of decision making
• Empowers lower-level employees to make decisions
without supervision and increase management
efficiency
• Management span of control (the number of
employees supervised by each manager) will also
grow.
Flattening Organizations
Figure 3-9
Postindustrial Organizations and Virtual Firms
:منظمات ما بعد الصناعة
.تعتمد السلطة بشكل متزايد على املعرفة و الكفاءة
Postindustrial Organizations:
.• تشجع تكنولوجيا املعلومات املنظمات التي تعمل على شبكة فرقةالعمل
• Authority increasingly relies on knowledge and
competence.
• Information technology encourages task
force-networked organizations.
Postindustrial Organizations and Virtual Firms
:الشركات االفتراضية
Virtual Firms:
• Use networks to link people, assets, and ideas
يمكن أن تتحالف مع
• Can ally with suppliers, customers to create
and distribute new products and services
• Not limited to traditional organizational boundaries
or physical locations
How Information Systems Impact Organizations
and Business Firms
Increasing Flexibility of Organizations:
• Information systems give both large and small
organizations additional flexibility to overcome the
limitations posed by their size.
• Small organizations use information systems to acquire
some of the muscle and reach of larger organizations.
How Information Systems Impact Organizations
and Business Firms
Increasing Flexibility of Organizations: (Continued)
• Large organizations use information technology to
خفة حركة
achieve some of the agility and responsiveness of small
organizations.
• Customization and personalization: IT makes it possible
to tailor products and services to individuals.
How Information Systems Impact Organizations
and Business Firms
Understanding Organizational Resistance to Change:
• Information systems become bound up in organizational
politics because they influence access to a key resource.
• Information systems potentially change an organization’s
structure, culture, politics, and work.
• Most common reason for failure of large projects is due to
organizational and political resistance to change.
How Information Systems Impact Organizations
and Business Firms
Organizational Resistance and the Mutually Adjusting Relationship
between Technology and the Organization
Source: Reprinted by permission of
James G. March.
Figure 3-10
How Information Systems Impact Organizations
and Business Firms
How Information Systems Impact Organizations
and Business Firms
The Internet and Organizations
• The Internet increases the accessibility, storage,
distribution of information and knowledge for business
firms.
• The Internet lowers the transaction and agency costs of
firms.
• Businesses are rapidly rebuilding their key business
processes based on Internet technology. Example: online
order entry, customer service, and fulfillment of orders.
The Impact of IT on Management
Decision Making
Implications for the Design and Understanding of Information
Systems
Factors to consider while planning a new system:
• Organizational environment
• Organizational structure, hierarchy, specialization, routines,
and business processes
• The organization’s culture and politics
The Impact of IT on Management
Decision Making
• The type of organization and its style of leadership
• Groups affected by the system and the attitudes of workers
who will be using the system
• The kinds of tasks, decisions, and business processes that
the information system is designed to assist
The Impact of IT on Management
Decision Making
Characteristics to be kept in mind while Designing
Systems:
• Flexibility and multiple options for handling data and
evaluating information
• Capability to support a variety of management styles, skills,
and knowledge
• Capability to keep track of many alternatives and
consequences
• Sensitivity to the organization’s bureaucratic and political
requirements
The Impact of IT on Management
Decision Making
Business strategy decisions of the firms will
determine the following:
• The products and services a firm produces
• The industries in which the firm competes
• Competitors, suppliers, and customers of the firm
• Long-term goals of the firm
Information Systems and Business
Strategy
Business-Level Strategy: The Value Chain Model
The most common generic business level strategies are:
• Become the low-cost producer
• Differentiate your product from competitors’ products
• Change the scope of competition by enlarging the market
or narrowing it to a specialized niche
Information Systems and Business
Strategy
Value Chain Model:
• Highlights the primary or support activities that add
business value
• A good tool for understanding strategy at the business firm
level
Primary Activities:
• Directly related to the production and distribution of a firm’s
products or services
Information Systems and Business
Strategy
Support Activities:
• Make the delivery of primary activities possible
• Consist of the organization’s infrastructure, human
resources, technology, and procurement
Value Chain
Figure 3-5
What Is a Value Chain?
Network of value-creating activities
Primary activities
Support activities
Linkages
Primary Activities
Five activities
Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service
Stages accumulate costs and add value to product
Net result is total margin of chain
Support Activities
Four activities
Firm infrastructure البنية التحتية للشركة
Human resources املوارد البشرية
Technological development التطور التكنولوجي
Procurement املشتريات
Contribute indirectly to production, sale, and service
Add value and costs
Produce margin that is difficult to calculate
Linkages
Interactions across value activities
Sources of efficiencies
Readily supported by information systems
Reduce inventory costs
Benefits of value chains
Support decisions for various business activities.
Diagnose points of ineffectiveness for corrective action.
Understand linkages and dependencies between
different activities and areas in the business. For
example, issues in human resources management and
technology can permeate nearly all business activities.
Optimize activities to maximize output and minimize
organizational expenses.
Potentially create a cost advantage over competitors.
Understand core competencies and areas of
improvement.
Information Systems and Business
Strategy
The Firm Value Chain and the Industry Value Chain
Figure 3-11
Information Systems and Business
Strategy
Strategic question:
• How can IT be used at each point in the value chain to
lower costs, differentiate products, and change the scope
of competition?
Information Systems and Business
Strategy
Value Web:
Internet-enabled Web of cooperating firms
• Customer-driven network of independent firms
• Uses information technology to coordinate value chains of
separate firms for collectively producing a product or
service
Information Systems and Business
Strategy
The Value Web
Figure 3-12
Information Systems and Business
Strategy
Information Systems Products and Services
Systems that Create Product Differentiation:
• Firms can use IT to develop differentiated products.
• Create brand loyalty by developing new and unique
products and services
• Product and services not easily duplicated by competitors
Examples: Dell, Orbitz
Information Systems and Business
Strategy
Systems that Support Focused Differentiation:
• Uses intensive analysis of customer data to support new
ways of contacting and serving the customer
• Enables development of new market niches for specialized
products or services
• A niche market is a segment of a larger market that can be
defined by its own unique needs, preferences, or identity
that makes it different from the market at large.
Information Systems and Business
Strategy
Porter’s Five Forces Model
In the larger environment, there are five main forces or
threats:
• New market entrants
• Substitute products and services
• Suppliers
• Customers
• Other firms competing directly
Information Systems and Business
Strategy
Porter’s Competitive Forces Model
Figure 3-15
Information Systems and Business
Strategy
IT and the Internet can greatly change the strength of
these competitive forces:
• Encourage new entrants. Example: NetFlix (offers
thousands of movies and TV shows for a flat monthly rate)
vs. Blockbuster (a pay-per-view video-on-demand service
(you rent or buy each title individually)
• Increase customer bargaining power. Example:
Expedia.com ( travelling agency) and others.
Information Systems and Business
Strategy
IT and the Internet can greatly change the strength of these
competitive forces: (Continued)
• Decrease in supplier power. Example: eCampus.com
increases the efficiency of used textbook market, reducing
publisher profits
• Substitute products. Example: online music lowers value
of record stores
https://www.youtube.com/watch?v=fO4hzG4u3-Q
https://www.youtube.com/watch?v=QU3dRhXmC_8
Organizational Strategy
Determines organization’s goal and objectives
Developed from organizational structure
Creates the value chain for organization
Establishes the structure, features, and functions of
information systems
What Is Competitive Strategy?
Organization’s response to structure of its industry
structure:
The structure of the industry refers to the nature of
barriers to entry and competitive dynamics in the
industry.
Four characteristics of industry structure are
particularly important to the performance of new firms
in the industry:
Capital intensity
Advertising intensity,
Concentration,
Average firm size.
Organizational Strategy
Porter identified four competitive strategies:
Cost leadership across industry
Cost leadership focused on particular industry segment
Differentiation across industry
Differentiation focused on particular industry segment
Porter says goals, objectives, culture, and activities
must be consistent with strategy
Achieving Competitive Advantage
Businesses determine competitive strategies
Create processes to achieve strategies
Information systems developed to support business
processes
Help organizations achieve competitive advantage
Need to avoid creating systems that are unrelated to
organization’s strategy
Business Functions
Fundamental Types of Information Systems
within Organizations
Calculation systems
Functional systems
Cross-functional systems
Calculation Systems
Antiquates system
Relieved workers of repetitive calculations
Labor-saving devices
Produced little information
Examples: systems that computed payroll and wrote
paychecks; inventory tracking
Functional Systems
Facilitates work of single department or function
Functions added to calculation system programs to
provide more value
Islands of automation
• Work independently from each other
• Effective as independent functions
• Inefficient working in cooperation with other processes
across entire business
Examples: human resources; financial reporting
Functional Systems
Functional Silos
صوامع وظيفية
Functional Systems
Data Integrity Issues:
Functional Systems
Costly Functional Systems
Integrated, Cross-Functional Systems
Cross-department systems operate across
departmental boundaries
• Increased functionality
Process-based systems support complete business
processes
• Integrated processing systems are more efficient
• Needs clear line of authority
Integrated, Cross-Functional Systems
Functional Systems Problems
Systems provide tremendous benefits, but are limited
because they operate in isolation
• Data duplication results from each application having own
database
• Potential lack of data integrity
• Business processes disjointed across functions
• Produces lack of integrated enterprise information
• Limited information available at any one source
• Inefficient decisions based on limited knowledge
• Increased costs to organization
Cross-Functional Systems and the Value
Chain
Cross-functional systems designed to overcome
problems in functional systems
Customer relationship management systems (CRM)
• Integrates all of the primary business activities
• Makes the organization customer-centric
• All customer data stored in single database
Enterprise resource management systems (ERP)
• Integrates primary value chain activities with human
resources and accounting
• Enterprise-wide systems
Business Process Design
Porter’s idea
Create integrated, cross-departmental business
systems
Do not automate or improve existing systems
Instead, create new processes:
• Integrate activities of all departments
• Across entire value chain
Business Processes
Network of activities, resources, facilities, and
information
Accomplish a business function
Implement value chains or portions of value chains
Organizational Strategy Determines
Information Systems
Figure 3-1
Competitive Advantage via Products
Organizations gain a competitive advantage by:
• Creating new products or services
• Enhancing existing products or services
• Differentiating their products or services
Competitive Advantage via Business
Processes
Organizations can gain a competitive advantage by
implementing business systems
Locking in customers
• High switching costs
Locking in suppliers
• Making it easy to connect to and work with
organization
Competitive Advantage via Business
Processes, continued
Create entry barriers
• Making it expensive for new competition to
enter market
Establish alliances
• Establish standards
• Promote product awareness
Reducing costs
• Increased profitability
#Second Exam
Information System Management
(MIS)
Chapter Four Business Processes and
Information Systems
Dr. Baha’eddin Alhaj Hasan
Department of Industrial Engineering
How Did This Stuff Get Here?
Business processes must work together
Each business must
Obtain payment
Cover costs
Make profit
Business Processes
Network of:
Activities
Resources
Facilities
Information
Interact to achieve business function
Business Processes, continued
Business systems
Examples:
Inventory management processes
Manufacturing processes
Sales and support processes
Business System
Activities
Facility
Information
Resource
Inventory Management Business
System
Purchasing(activity) queries Inventory
Database(facility) obtains
QuantityOnHand(information)
If reorder needed, Purchasing generates
Order(information) to Supplier(resource)
Order Placement(activity) sends copy to
Receiving(activity)
Receiving puts goods into Inventory(facility)
Record sent to Inventory Database and
Payment(activity)
Inventory Management Business
System, continued
فاتورة الشحن
Supplier sends Shipping Invoice(information) to
Payment
Shipping Invoice compared to Order, generates
Check(information and resource)
Counter Sales(activity) interacts with
Customer(resource), Inventory(resource), and
Inventory Database
Portion of Inventory Management
Business System
Figure 2-1
What Are the Components of a
Business Process?
Activities
Resources
Facilities
Information
Activities
Transforms resources and information form one type
into another
Follows rules and procedures
Can be manual, automated, or combination
Example:
Payment(activity) transforms
QuantityReceived(information) and
ShippingInvoice(information) into
PaymentToSupplier(resource)
Resources
Items of value
External to organization
Examples:
Customers
Suppliers
Facilities
Structures used within business process
Examples:
Inventories
Databases
Factories
Equipment
Information
Used by activities
Determine how to transform inputs into outputs
Difficult to define
What is Information?
Knowledge derived from data
Data presented in meaningful context
Processed data
Data processed by summing, ordering, averaging,
grouping, comparing
A difference that makes a difference
What is Information?
Data
Recorded facts or figures
Not meaningful on its own
Good Information
Accurate
Correct and complete
Crucial for management
Cross-check information to ensure accuracy
Timely
Produced in time for intended use
Relevant
Context
Subject
Good Information, continued
بالكاد يكفي
يكفي للغرض الذي تم إنشاؤه من أجله
Just Barely Sufficient ال تحتاج إلى معلومات إضافية ودخيلة
Sufficient for purpose for which generated
Do not need additional, extraneous information
Worth Its Cost
Relationship between cost and value
Information systems cost money to develop,
maintain, and use
Must be worth the cost
Business Process Components
What Is the Role of Information in Business
Processes?
Business processes generate information:
Brings together items of data in a context
An opportunity to produce good information.
May be higher level
Useful for management and strategy decisions
How Do Information Systems
Support Business Processes?
Used by activities in a business process
Several activities may use one system
Activity may have own system
Activity may use several systems
Systems designers determine relationship of
activities to information systems
Relationship determined during systems
development
Use information to manage business process itself !
Business Process Manegement ( BPM)
What Does It Mean to Automate
a Process Activity?
Insert 2-3
Automation of Process Activity
Automation of processes
Transfer work done by people to computers
People follow procedures
Computers follow software instructions
Information System Supporting Counter
Sales
Figure 2-4
Information System Supporting
Counter Sales, continued
Fully automated
Cashiers do not require extensive training
Cashiers do not work directly with programs on
computer
Computer in cash register communicates with
computer that hosts Inventory Database
Programs record sales and makes changes
Information System to Support
Payment
Figure 2-5
Information System to Support
Payment, continued
Payment receives QuantityReceived and
ShippingInvoice and produces SupplierPayment
Mostly manual
Accounts Payable Clerk reads documents and
issues payment or investigates discrepancies
Processing exceptions complicated
Programming expensive
Probably not effective
Information System to Support
Purchasing
Figure 2-6
Information System to Support
Purchasing, continued
Purchasing clerk computer runs program that queries
database and identifies stock levels and generates
PurchaseOrder
Designers balanced work between automation and
manual activity
Searching database is repetitive
Automated process
Selecting suppliers is complicated
Manual process
Your Role in Information System
You are part of system (people)
Most important component
Must be able to use system
Quality of thinking
Decisions By Structure
Differentiation decisions according to the structure of
decision - making process not the structure of
problem or subject.
Decisions By Structure
Structured Decision:
Have an understood and accepted method to making
them.
decision is made based on a pre-defined preocess or
formula.
Decision is made by simplly plugging some data from
your business .
Example: a set of calculations to determine how
many bowls to order based on past sales.
Decisions By Structure
Unstructured Decision:
Do not have an agreed- upon decison –making
method or formula to follow.
Examples: predicting the stock market or evaluating
the quality of supplier’s goods while you are choosing
a supplier for your business.
More subjective depends on maneger rather than a
decision –making process.
Information System Management
(MIS)
Chapter Five: Part 1 - Database Concepts
Dr. Baha’eddin Alhaj Hasan
Department of Industrial Engineering
Why DATABASE
https://www.youtube.com/watch?v=j09EQ-xlh88
https://www.youtube.com/watch?v=x4Xt0M1mHbc
CMS: Information systems whose primary purpose is to provide an easy
way to manage and present information, for example a popular blog post content
Manegement system is wordpress. Wordpress makes it easy for blog authors
to creat edit format and disply content without having any understanding of
HTML (Hypertext Markup Language) or the database that being
used under the hood.
Data stored in the past in filing cabinets. Card catalogs and ledger books
More in past data was saved on rocks.
Good information has to be presented in good way so it will be useful!
Q1: What Is the Purpose of a
Database?
• Purpose: To organize and keep track of things
• Spreadsheets do that too
– Keeping lists of only a single theme per worksheet
• Example: Student test scores in a course
– Linking and managing multiple worksheets is a real pain
• Databases
– Keep lists that involve multiple themes
– Examples: Student grades, grades for all courses in a
department, courses offered in all departments, faculty
records, and so on
Q2: What Does a Database Contain?
• A self-describing collection of integrated records
• Hierarchy of data elements
– Bytes/data are grouped into columns/fields
– Columns grouped into rows/records
– Rows are grouped into tables/files
• Collection of tables plus relationships among rows
– Also includes “metadata”
• Describes the structure of the database and its data
• A database is a structured collection of records
stored in a computer system so that a computer
program or person using a query language can
consult it to answer queries.
Student Table
(a.k.a., File)
Relationships Among Records
• Database have multiple tables (one for each theme)
• Values in one table may relate to rows/records in
other tables
• Keys
– A column(s) that identify unique row in table
– Each table has a key
• Foreign keys
– Are keys of a different table than the one in which they
reside
• Relational databases
– Databases use tables, keys, and foreign keys to create
relationships
Example of Relationships
Among Three Tables
Figure 5-6
Example of Relationships
Among Three Tables
• These lines are not stored in the database, they are
just for illustrative purposes.
• Databases define these relationships through
primary and forigen key fields and the values they
contain in records.
Metadata
• Database is self-describing
– Contains descriptions of its data
• Metadata
– Data that describe data
– Makes databases more useful
– Makes databases easier to use
• Describes data by:
– Data type – text, number, date, etc.
– Field name
– Field properties
Access Metadata Report
Q3: What Is a DBMS and
What Does It Do?
• Database management system (DBMS)
– Program that creates, processes, and administers
databases البائعون
– Usually licensed from vendors
– Examples: Microsoft Access, Oracle, MySQL, DB2
• DBMS and database are two different things
– Database is a structured collection of records or data
stored in a computer system so a computer program or
person using a query language can consult it to answer
queries.
– Database management system (DBMS) is a computer
program used to manage and query a database
Components of a Database
Application System
Database Management Systems
• DBMS is used to create tables, relationships
in databases
• Applications use a DBMS to read, insert,
modify, and delete data
– Structured Query Language (SQL)
• International standard language for querying databases
• Allows users to interactively interrogate the database,
analyze its data and update it according to the users
privileges on data
• Also controls the security of the database
Creating the Database and Its Structure
Processing the Database
• DBMS perform four basic operations
1. Read data
2. Insert data
3. Modify data
4. Delete data
• Structured Query Language (Example)
INSERT INTO Student
([Student Number], [Student Name], HW1, HW2, MidTerm)
VALUES
(1000, ‘Franklin, Benjamin’, 90, 95, 100)
Administering the Database
• DBMS security features are used to set up
user accounts, passwords, permissions,
processing limits
– Permissions – data access rights for specific users
or groups of users
قاعدة البيانات النسخ االحتياطي والنسخ املتماثل
• Database backup and replication, adding
structures, removing unneeded data
Use of Multiple Database Applications
Q4: What Is a Database Application?
• Database application is the software we create
that actually utilizes our database.
• Collection of forms, reports, queries, and
application programs that process a database
• Databases can have multiple applications
• Applications can have multiple users
Forms, Reports, and Queries
• Forms
– Used to read, insert, modify, and delete data
• Reports
– Show data in structured context
– May compute values such as Totals, within a
report
استفسارات • Queries
– Are a means of getting answers from database
data
Forms, Reports, and Queries
Form
Forms, Reports, and Queries
Forms, Reports, and Queries
Forms, Reports, and Queries
Forms, Reports, and Queries
Database Application Programs
Database Application Programs
• Application programs
– Process logic specific to a business need
– May enable database processing over Internet
to:
• Serve as intermediary between Web server
and database
• Respond to events,
• Asks DBMS to read, insert, modify, delete
data
Example of a Query
Four Application Programs on a Web
Server Computer
Multiuser Processing Considerations
• Lost-update problem
– Occurs when an update made by one transaction is lost due to an
update made by another transaction.
1. Process A reads a customer a record from a file containing account
information, including customer's account balance and phone number.
2. Process B now reads same record from same file, now B has its own
copy.
3. Process A changes account balance in its copy of customer record and
writes record back to the file.
4. Process B—which still has the original value off account balance in its
copy of the customer record—updates customer's phone number and
writes customer record back to the file.
5. Process B has now written the old account balance value to the file,
causing the changes made by process A to be written over or lost.
Multiuser Processing Considerations
(cont’d)
• Preventing Lost Update problems using:
• Locking
– Used to ensure that a transaction does not
interfere with any other transaction. Locking
prevents the problem of lost update, uncommitted
data, and inconsistent data.
– By preventing another user or process to open a
record that is currenty being used by another user
or process.
Q5: What Is the Difference Between an
Enterprise DBMS and a Personal DBMS?
• Enterprise DBMS
– Processes large organizational and workgroup
databases
– Supports many users (thousands plus)
– Examples: DB2, SQL Server, Oracle, DB2
• Personal DBMS
– Designed for smaller, simpler database applications
– Supports fewer than 100 users (mostly 1-10 users)
– Examples: Access, dBase, FoxPro, Paradox, R-Base
Personal Database System
#End of Second
Information System Management
Chapter Five – Part 2:
Database Design
Dr. Baha’eddin Alhaj Hasan
Department of Industrial Engineering
Database Application Systems
Database application consists of:
Forms
Reports
Queries
Application programs
How Are Systems Developed?
Figure CE5-1
Database Application System
Development Process
Developers interview users
Develop requirements for new system
Analyze existing reports, forms, and user activities
Requirements summarized in data model
Logical representation of structure of data
Contains description of data and relationships
Users validate and approve model
Design implemented in a database
Database filled with user data
Database
Must include all data necessary for users to perform
jobs
Contains only that amount of data, and no more
Developers rely on users to:
Tell them what to include
Check data model
Verify correctness and completeness
Database Design
Process of converting data model
Transforms entities into tables
Expresses relationships
Defines foreign keys
Shows data constraints
Normalization
Process
Converts table into two or more tables
Changes from poorly structured to well-structured
Data integrity problems
Different names for the same entity
Produces incorrect and inconsistent information
Resolve by eliminating duplicated data
Normalized tables
Eliminate data duplication
Slower to process
Every table has single topic
Relational Database Design
Designer creates table for every entity
Entity identifier becomes primary key of table
Attributes of entity become columns
Tables normalized to single theme
Represent relationships between tables
Add foreign key to one or more tables
What Is the Users’ Role?
Final judges as to what data should be contained
Determine how records are related to each other
Need to review data model
Must insure that model reflects an accurate view of
business
Who Will Volunteer?
Consultant creates data model
Based on interviews with users
Data model reviewed and approved
Database tables constructed
Primary and foreign keys selected
Based on interviews
Microsoft Access database created
Relationships indicated
Forms and reports constructed
Information System Management
Chapter Five – Part 3:
Microsoft Access
Dr. Baha’eddin Alhaj Hasan
Department of Industrial Engineering