Unit 01

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MBA 2nd Semester, Management Information System

MIS Unit 01

“Information systems are a set of interconnected elements working


together to collect, process, store, and distribute information to help
coordination, visualization in an organization, analysis, and decision-making”

Meaning of Business Information System:


Business information systems are sets of inter-related procedures using IT
infrastructure in a business enterprise to generate and disseminate desired
information.

Such systems are designed to support decision making by the people


associated with the enterprise in the process of attainment of its objectives.

The business information system gets data and other resources of IT


infrastructure as input from the environment and process them to satisfy the
information needs of different entities associated with the business enterprise.

There are systems of control over the use of IT resources and the
feedback system offers useful clues for increasing the benefits of information
systems to business. The business information systems are sub-systems of
business system and by themselves serve the function of feedback and control in
business system.

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MBA 2nd Semester, Management Information System

Features of Business Information System:

1. The business information systems are subject to the dynamics of business


environment and need to be flexible enough to absorb the inevitable changes in
the information needs of business. They have to be efficient to satisfy the
demanding and „hard task masters,‟ the business managers. Thus, there is need
to balance the conflicting objectives in the process of designing business
information systems.

2. Business information systems need to be proactive. They should anticipate


changes in information needs of users and accordingly adapt themselves to suit
their needs. This has become important because of the fact that the managers get
involved in the routine activities to the extent that the decision making becomes
a matter of imitating what competitors are doing or planning to do, rather than
making an informed choice.

3. The purpose of business information system is to cater to the information


needs for decision making in business.

4. The business information systems have to be designed keeping in view the


availability of financial and human resources to the business enterprise.

5. The cost effectiveness is a matter of prime concern in the development and


maintenance of business information systems. Economic justification for
investment in IT infrastructure for business information systems is a pre-
condition for its existence and sustenance.
Components of Information System

1. Hardware
2. Software
3. Data
4. Procedures
5. People
6. Feedback

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MBA 2nd Semester, Management Information System

1. Hardware
Hardware means equipment and machinery. This category encompasses
the computer and all of its supporting equipment in modern information
systems. The supporting devices contain input and output devices,
communication devices and storage device. Hardware in pre-computer
information systems may contain ledger books and ink.

2. Software
In an information system, software means computer programs as well as
the manuals which support them. Computer program means the machine-
readable instructions that tell circuitry in the system's hardware to work to
generate helpful information from the data. In most cases, programs are stored
on an input/output medium, such as a tape or disk. The software which is for
pre-computer information systems comprised instruction for using them means
the guidebook for a card cata log and the information regarding how the
hardware was configured for use such as columns headings in the ledger book.

3. Data
Data means facts that systems use to generate valuable knowledge. Data
is usually stored in machine-readable form on tape or disk until the computer
requires them. The data in pre-computer information systems is usually stored
in a human-readable format.

4. Procedures
Procedures mean rules which govern how an operation is performed in
information system. "Procedures are for people what software is for hardware"
is a general analogy that we used to clarify the importance of procedures in a
system.

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MBA 2nd Semester, Management Information System

5. People
Every system requires individuals if the system is to be beneficial. People
are often the most neglected part of the system, and they are possibly the factor
that has the greatest impact on the success or failure of information systems.
This contains clients, yet additionally the individuals who operate as well as
service the computers, those who support the network of computers, and the
individuals who keep up the information.

6. Feedback

Another component of an information system is feedback, which


determines that an information system can be offered with feedback. However,
this component is not needed to function.
Advantages of Information System
o Communication
o Availability
o Creation of new types of jobs
o Globalization and cultural gap

Communication
Using information technology, instant messaging, emails, voice, and
video calls, communication become inexpensive, faster, and effective.

Availability
With the help of the Information system, it is possible for businesses
around the world to be open around the clock. This implies that a business can
be open anytime, anyplace, making buys from various nations simpler and more
helpful. It likewise implies that you can have your products delivered right to
your doorstep without making more effort.

Creation of New Types of Jobs


The creation of new and exciting jobs is another advantage of the
information system. We can create various opportunities using IT such as
computer programmers, Hardware and Software developers, Web designers,
and Systems analysers.

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MBA 2nd Semester, Management Information System

Globalization and Cultural Gap


We may reduce semantic, Geological, and some social constraints by
implementing an information system. Sharing data, information, knowledge,
communication, and connections between different nations, societies, and
dialects are a lot easier.

Introduction to Databases

In layperson‟s terms, the database is a big container where data is stored in a


structured format. We cannot store semi-structured or unstructured data in a database.

A database is an organized collection of data that can be modified, retrieved, or


updated. Data, DBMS, and applications associated with them together form the database
concept. The data, stored in the database, is in the row and column format, which is called a
table. Every website, which needs us to sign up, uses a database. There is no internet without
databases.

For instance, a college will have to keep the information about its students, including
roll number, name, age, blood group, etc. The college will also need to keep the details of the
professors and infrastructure. The details, which the college has, can be stored in a database
named College, or if it is just the student details, then it can be named Students. All such
details should be in a structured format, such as tables, in a hierarchy.

What is a Database Management System?

Database Management System (DBMS) is a software application that is used to create,


access, maintain, and manage databases. We can install it like any other application and
use SQL for all the operations that we intend to perform on databases. DBMS accepts the
incoming data either from an application or from a user who is manually entering it.

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MBA 2nd Semester, Management Information System

 It does not matter if it is a large or small DBMS, with its help, we can store and retrieve data
and make changes whenever we want to.
 Some commands are predefined in DBMS, and these commands can be used to manipulate
the database. These commands are also the interface between the database and end-users to
establish communication.

Database Management System Examples

Few examples of database are:

 Oracle – Oracle is a Relational Database Management System. It can be stored on-site


or in the cloud. It uses enterprise-scale technology to offer a wide range of features to
the users.
 MySQL – Used by platforms like YouTube, Twitter, and Facebook, MySQL is a
Relational Database Management System. It is often integrated with open-source
Content Management Systems (CMS).
 SQL Server – SQL Server is a Relational Database Management System developed
by Microsoft. It was based on SQL, a query language that helps users in data query
and database management.

Components of DBMS

There are five major components of DBMS:

 Hardware – Hardware includes the actual physical computer system that is used to access the
database. Mainframes to microcomputers are utilized in DBMS. Oftentimes large storage
devices are used to store the huge amount of data.
 Software – The DBMS is the Software here. It helps connect the physical database to the end
users. Whenever a user wants to access the database, access has to be granted by the software.

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MBA 2nd Semester, Management Information System

 Procedures – All the instructions that are given to access the DBMS, fall under Procedures.
From installing DBMS, to generating reports, all of these instructions are a part of the
procedures involved in DBMS.
 Data – Data is the information that is managed by DBMS. DBMS helps in managing data and
easing access to useful information. Meta data, the information stored in DBMS for better
comprehension of the data, is also stored in DBMS itself.
 Database Access Language – The language that is used to write commands on the DBMS to
access, utilize, manage, update and delete data, is called the Database Access Language.
Commands are written using the Database Access Language and submitted to the DBMS so
they can be executed by the DBMS.

Types of DBMS

There are broadly four categories or types of DBMS:

1. Hierarchical databases
2. Network databases
3. Relational databases (RDBMS)
4. Object-oriented databases

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 Hierarchical databases: This type of DBMS showcases a parent-child type of


relationship. This relationship forms a tree-like structure where the nodes (leaves) of
the tree represent records and the fields are represented by branches.
 Network databases: This style of DBMS embraces several partnerships where it is
possible to connect multiple user records at the same time in parallel.
 Relational databases (RDBMS): This type of DBMS helps users to locate and
manipulate data that has connections with another piece of data in the database. It
uses tables for storing the data in a row-and-column format.
 Object-oriented databases: In this type of DBMS, data is stored in individual
components called objects, where each object is a piece of data with some instructions
for the tasks that should be performed on that data.

Now, we have a fair idea about what DBMS is and the kind of versatility it provides to
developers. DBMS software can be used differently as there are various DBMS architectures.
Choosing a DBMS completely depends on end-user goals. Choosing the right DBMS for an
application will provide an edge that can make the application work seamlessly.

Application of DBMS
Sector Application
Universities Student information, courses, grades, etc.
Sales Customer information, sales, etc.
Finance Stock information, sales, bonds, etc.
Banking Customer information, account, activities, deposits, loans, etc.
Manufacturing Production information, suppliers, inventories, etc.
Airlines Customer information, schedules, reservations, etc.
HR Management Employee information, payroll, deduction, pay checks, etc.
Telecommunication Call records, bills, usage, etc.

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Advantages of DBMS
 Various formats of data can be stored, and data can be retrieved by a range of
methods in the Structured Query Language.
 As most databases are usually centralized in nature, they can be accessed quickly and
managed easily.
 We can set authorized users who can view, share, and access data. This ensures
security for data.
 DBMS facilitates the smooth incorporation of programming languages, such as C++,
Python, and PHP, to allow users to establish a connection with a web application or
third-party applications.
 To prevent data from being inaccessible when there is an overload, a recovery system
with automated backups is provided by almost every DBMS software.
 With minimum data duplicity and redundancy, DBMS provides data protection and
integrity.

Disadvantages of DBMS

 In some cases, DBMSs are highly complicated systems to set up and maintain.
 The cost of DBMS hardware and applications is comparatively high, exhausting an
organization‟s budget.
 In certain organizations, all information is integrated into a common database, which
may get destroyed due to electrical issues or it may get corrupted in storage media.
Having backups is preferred in such situations but that increases the cost.
 Certain DBMS systems cannot run complex queries as they slow down the other
processes that are running.

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