NOTES ON

MANAGEMENT INFORMATION SYSTEM

BY: AviHada

Cloud Computing
Cloud computing means storing and accessing data and programs over the Internet
instead of your computer's hard drive. The cloud is just a metaphor for the Internet. Eg:
Web-based e-mail service like Hotmail, Yahoo! Mail or Gmail.

We can broadly divide the cloud architecture into two parts: front end and the back end. They
connect to each other through a network ,usually the Internet.
The front end includes the client's computer (or computer network) and the application required
to access the cloud computing system. Example - Web Browser.
The back end refers to the cloud itself. It consists of all the resources required to provide cloud
computing services. On the back end of the system are the various computers, servers and data
storage systems that create the "cloud" of computing services.
Pros:

No loss of data: Your data on the cloud is backed up continuously on multiple servers.
It's virtually going to be there whenever you want or need it.

Cost Efficient: Cloud computing is probably the most cost efficient method to use,
maintain and upgrade. Traditional desktop software costs companies a lot in terms of
finance.
Easy Access to Information: Once you register yourself in the cloud, you can access the
information from anywhere, where there is an internet connection.
Scalability: As your business grows, your available space on the cloud grows with it.
There is no need for additional investment.
Automatic software updates: Your system will regularly be updated with the latest
technology. This could include up-to-date versions of software, as well as upgrades to
servers and computer processing power.
Increased collaboration: Cloud computing increases collaboration by allowing all
employees wherever they are to sync up and work on documents and shared apps
simultaneously, and follow colleagues and records to receive critical updates in real
time.

Cons:

If your internet connection is unstable there may be problems accessing your services.
Privacy is another matter. If a client can log in from any location to access data and
applications, it's possible the client's privacy could be compromised.
Storing information in the cloud could make your company vulnerable to external hack
attacks and threats.
The other major issue while in the cloud is that of security issues . Before adopting this
technology, you should know that you will be surrendering all your companys sensitive
information to a third party cloud service provider. This could potentially put your
company to great risk.

Extranet
An extranet is a private network that uses Internet technology and the public
telecommunication system to securely share part of a business's information or operations with
suppliers, vendors, partners, customers, or other businesses. An extranet can be viewed as part
of a company's intranet that is extended to users outside the company.
Pros:

Increased productivity: As you automate processes that were traditionally done

manually, bottlenecks will disappear and your companys productivity will increase.
Timely and accurate information
Shorter time to market: An extranet can help you get your products to market more
quickly by making proposals and specifications available to suppliers, and giving clients
and partners up-to-date information on current projects.

Build customer satisfaction: Extranets make business easier for your customers. The
more you make timely, accurate information available to your customers, the more
likely it is youll keep their business.
Enables a company to offer new kinds of interactive Web-enabled services to their
business partners, thus helping to build strategic relationship with partners and
suppliers.
Better Communication and collaboration with suppliers, partners and other businesses.

Cons:

Extranets can be expensive to implement and maintain within an organization (e.g.,

hardware, software, employee training costs), if hosted internally rather than by an
application service provider.
Security of extranets can be a concern when hosting valuable or proprietary
information.

Further reading from book: Fig 6.9(as per 10th edition.) and Fig 1.5(10th edition) use of
internet, intranet and extranet in business.

Agile Company/Enterprise:
Fast moving, flexible and robust firm capable of rapid response to unexpected challenges,
events, and opportunities.
Pros:

First-mover advantage: Probably the biggest advantage of taking an agile approach is

that you can have first-mover advantage over your competitors. While theyre busy
planning and perfecting, youre out there making sales.
Motivates the team: Working at that speed, and iterating quickly is incredibly exciting
and motivating for all of your employees.
Customer Satisfaction: Your customers get a constant sense that your company is
growing because you keep releasing new features. It also allows you to adjust to
customers demands, keeping them happy and with you longer.
Competitive Advantage: The company is given a competitive advantage since it is
continuously changing its approach to satisfy its customers.

Cons:

To become an agile manufacturer the company will need to invest in trained and highly
skilled labourers who are competent to be agile.
Intensive planning and management of such systems is required, since a shift is being
introduced from mass production ideology to agile manufacturing.
Increased costs.

Further reading from book.

Virtual Company
An organization that uses information technology to link people, organizations, assets and
ideas.
An organization that uses computer and telecommunications technologies to extend its
capabilities by working routinely with employees or contractors located throughout the
country or the world.
Using e-mail, faxes, instant messaging, data and videoconferencing, it implies a high degree
of telecommuting as well as using remote facilities.
Pros:

Reduce costs in employment, transportation and monthly bills.

No need for set business hours

Lower maintenance
The work force can be more productive
Saves Time

Cons:

Social Isolation: No personal interaction with your employees and business

prospects.
Conflicts : Due to lack of face to face communication there are more chances of
clashes between virtual environment team member.
Get easily bored and stay unfocused.

Further reading from book.

Business Process Reengineering(BPR)

Restructuring and transforming a business process by a fundamental rethinking and
redesign to achieve dramatic improvements in cost, quality and speed.

Pros:

Growth of business
Improvement in organizational approach
Increases communication and collaboration

Further reading from book.

Intranet
An intranet is the generic term for a collection of private computer networks within an
organization. An intranet uses network technologies as a tool to facilitate communication
between people or work groups to improve the data sharing capability and overall knowledge
base of an organization's employees.

Further reading from book.

Internet
The Internet is the global system of interconnected computer networks that use the Internet
protocol suite (TCP/IP) to link billions of devices worldwide. It is a network of networks that
consists of millions of private, public, academic, business, and government networks of local to
global scope, linked by a broad array of electronic, wireless, and optical networking
technologies.
For simplicity's sake we will say that all computers on the internet can be divided into two
categories: servers and browsers.
Servers are where most of the information on the internet "lives". These are specialised
computers which store information, share information with other servers, and make this
information available to the general public.
Browsers are what people use to access the World Wide Web from any standard computer.
Chances are, the browser you're using to view this page is either Netscape
Navigator/Communicator or Microsoft Internet Explorer. These are by far the most popular
browsers, but there are also a number of others in common use.

When you connect your computer to the internet, you are connecting to a special type of
server which is provided and operated by your Internet Service Provider (ISP). The job of this
"ISP Server" is to provide the link between your browser and the rest of the internet. A single
ISP server handles the internet connections of many individual browsers - there may be
thousands of other people connected to the same server that you are connected to right now.

Further reading from book.

Local Area Network(LAN)

A telecommunication network that connects computers and other information processing
devices within a limited physical area such as office, classroom and building. A local area
network may serve as few as two or three users (for example, in a home network) or as many
hundreds of users. Ethernet and Wi-Fi are the two most commonly used LAN technologies.
Uses a variety of telecommunications media such as telephone wiring, coaxial cable, fiber optics
or wireless radio.

Client Server Networks

The type of computing system in which one powerful workstation serves the requests of other
systems called clients.
Three components:

Server: A computer server is the powerful computer, or the set of computers connected
to each other, which provide services to clients. They process the requests of client
machines. Features of Servers :1) They have large storage capacity.
2) They are able to provide information to many computers simultaneously, therefore
have large RAM.
3) Its processor speed is high, as it may have to execute multi-tasking too.
Client: Clients are PCs or workstations on which users run applications. Clients rely on
servers for resources, such as files, devices, and even processing power.
Network Devices : They connect the clients and servers.

Advantages:

Improved Data Sharing

Easy maintenance
Easy to understand
Cost effective

Cons:

Overloaded servers
Since its centralized if a critical server fails, client requests are not accomplished.

Peer to Peer Networks

A type of telecommunication networks where computers share equivalent responsibility for
processing data and either party can initiate a communication session. Unlike the
client/server model, in which the client makes a service request and the server fulfills the
request, the P2P network model allows each node to function as both a client and server.

Further reading from book.

Network Topologies
Bus topology: All devices share single communication line or cable. A device wanting to
communicate with another device on the network sends a broadcast message onto the wire
that all other devices see, but only the intended recipient actually accepts and processes
the message.
Pros:

Easy to install

Requires less cable than a star topology.

Cons:

Entire network shuts down if there is a break in the main cable.

Difficult to identify the problem if the entire network shuts down.

Star Topology: In a star network devices are connected to a central computer, called a hub.
Nodes communicate across the network by passing data through the hub . Many home
networks use the star topology.
Pros:

Easy to install.
One malfunctioning node doesn't affect the rest of the network.

Cons:

Requires more cable.

If the hub fails, nodes attached are disabled.

Ring Topology: All of the nodes are connected in a closed loop. All messages travel through
a ring in the same direction (either "clockwise" or "counterclockwise").
Pros:

It can span larger distances than other types of networks, such as bus networks,
because each node regenerates messages as they pass through it.

Cons:

A failure in any cable or device breaks the loop and can take down the entire
network.

Mesh Topology: Variation of ring topology. It uses direct communication lines to connect
some or all of the computers in a ring to one another.

TCP/IP Model VS OSI Model

TCP/IP

OSI

A communication protocol that allows for

connections of hosts to the internet.
Transmission Control Protocol is used by
Internet applications like email, world wide
web, FTP, etc. TCP/IP was developed by the
Department of Defense (DOD) to connect
various devices to a common network
(Internet).

A model that determines how messages

Implementation of OSI model

Reference model

Has only 5 layers

Has 7 layers

Considered more reliable than OSI

Less reliable

Follows horizontal approach

Follows vertical approach

Protocols were developed first and then the

model was developed

Model was developed before the

development of protocols

Supports only connectionless

communication in the network layer

Supports connectionless and connectionoriented communication in the network

layer

should be transmitted between any two

points in a telecommunication network.

Combines the session and presentation layer Has separate session and presentation layer
in the application layer

TCP/IP does not have very strict boundaries

OSI has strict boundaries

Protocol dependent standard

Protocol independent standard

VOIP
A VoIP phone call digitizes and breaks up a voice message into data packets that may travel
along different routes before being reassembled at the final destination. A processor nearest
the calls destination, called a gateway, arranges the packets in the proper order and directs
them to the telephone number of the receiver or the IP address of the receiving computer.

Further reading from book.

Distributed Database
A distributed database is a database in which portions of the database are stored on
multiple computers within a network. Users have access to the portion of the database at
their location so that they can access the data relevant to their tasks without interfering
with the work of others. A centralized distributed database management system (DDBMS)
manages the database as if it were all stored on the same computer.

Components of Data Warehouse

Operational Source System

Its the traditional OLTP systems which stores transaction data of the organizations business. Its
generally used one record at any time not necessarily stores history of the organizations
informations. Operational source systems generally not used for reporting like data
warehouse.
Data Staging Area
Data staging area is the storage area as well as set of ETL process that extract data from source
system. It is everything between source systems and Data warehouse.
Data staging are never be used for reporting purpose. Data is extracted from source system and
stored, cleansed, transformed in staging area to load into data warehouse.
Staging are not necessarily the DBMS. It could be flat files also. Staging area can be structured
like normalized source systems. It totally depends on choice and need of development process.
Data Presentation Area
Data presentation area is generally called as data warehouse. Its the place where cleaned,
transformed data is stored in a dimensionally structured warehouse and made available for
analysis purpose
Data Access Tools
once data is available in presentation area it is accessed using data access tools like Business
Objects.

Big Data

HRM

Decision Structure
Structured decisions are the decisions which are made under the established situations
(inventory control) while unstructured decisions are made under the emergent situation
(cash management) (What product to develop in next 5 yrs?). Structured decisions are the
programmable decisions and they are preplanned while unstructured decisions are creative
and they are not preplanned. Structured decisions are made in the situations which are fully
understood while in unstructured decisions the situations are uncertain and unclear.

Business Intelligence
Business intelligence (BI) is often described as "the set of techniques and tools for the
transformation of raw data into meaningful and useful information for business
analysis purposes. BI encompasses a variety of tools, applications and methodologies that
enable organizations to collect data from internal systems and external sources.

DSS Components

Database Management System (DBMS): To solve a problem the necessary

data may come from internal or external database. In an organization, internal
data are generated by a system such as TPS and MIS. External data come from
a variety of sources such as newspapers, online data services, databases
(financial, marketing, human resources).

Model Management System: It stores and accesses models that managers

use to make decisions. Such models are used for designing manufacturing
facility, analyzing the financial health of an organization, forecasting demand of
a product or service, etc.

User

Interface management System: The

user interface management

component allows you to communicate with the Decision Support System. It consists of
the user interface management system. The user interface is the part of the system you

see through it when enter information, commands, and models. This is the only
component of the system with which you have direct contract.

RAID SYSTEM

RAID is short for redundant array of independent disks.

Originally, the term RAID was defined as redundant array of inexpensive disks, but
now it usually refers to a redundant array of independent disks. RAID storage uses
multiple disks in order to provide fault tolerance, to improve overall performance,
and to increase storage capacity in a system. This is in contrast with older storage

devices that used only a single disk drive to store data.

RAID allows you to store the same data redundantly (in multiple paces) in a
balanced way to improve overall performance. RAID disk drives are used
frequently on servers but aren't generally necessary for personal computers.

How RAID Works

With RAID technology, data can be mirrored on one or more disks in the same
array, so that if one disk fails, the data is preserved. Thanks to a technique known
as striping (a technique for spreading data over multiple disk drives), RAID also
offers the option of reading or writing to more than one disk at the same time in
order to improve performance.
In this arrangement, sequential data is broken into segments which are sent to
the various disks in the array, speeding up throughput. A typical RAID array uses
multiple disks that appear to be a single device so it can provide more storage
capacity than a single disk.