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CHAPTER-ONE

INTRODUCTION

1.1 Management Information System

Management Information Systems are primarily meant for providing information from

the data after processing them. The information systems do not generate data. The dataare generated, collected, recorded, stored, processed and retrieved after it has been

generated by business operations in an organization.

MIS is a planned system of the collecting, processing, storing and disseminating data inthe form of information needed to carry out the functions of management. MIS is designs

for providing important information to personnel in the organization. MIS is managing

information system and organized combination of people, hardware, software,communication networks and a data resource that collects, transform and disseminates

information in an organization.

MIS is a subset of the over all internal controls of a business covering the application ofpeople, documents, technologies and procedures by management accountants to solving

business problems such as costing a product, service or a business-wide strategy. They

are distinct from regular information systems in that they are used to analyze otherinformation systems applied in operational activities in the organization. Academically,

the term is commonly used to refer to the group of information management methods tied

to the automation or support of human decision making, e.g. Decision Support Systems,

Export Systems and Executive Information Systems. MIS generate information formonitoring performance and maintaining coordination. MIS extract process and

summarize data from the TPS and provide periodic reports to managers.

1.2 Information System Components

A system is a set of related components that produces specific result. An information

system has five key components. They are as follows:

Hardware

Software Data Processes People

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Fig 1: Information System Components

Hardware

Hardware refers to the physical layer of the information system. It includes all the

physical devices and materials used in information processing. It includes computers,networks, communications equipment, scanners, digital capture devices and other

technology based infrastructure.

Software

Software includes all sets of information processing instructions. It consists of system

software and application software. System software controls the computer and includesthe operating system, device drivers that communicate with hardware and utilities that

handle tasks such as converting data into a different format, virus protection, and creating

backup. Application software consists of programs that support users and enablecompanies to carry out business functions.

Data

Data are the raw materials that do not give any meaning. An information system

transforms these data into useful information.

Informationsystem

People

Hardware

NetworksData

Software

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Processes

Processes or procedures describe the tasks that users, managers and IT staff members

perform. Processes necessary to support a specific business model are described in

written documentation manuals and online reference materials.

People

People include end users and IS specialist. End users include employees, customers,vendors and others who interact with an information system. Internal users include

managers, technicians, sales representatives and corporate officers. External users include

customers who track their orders on the companys Web site, suppliers who use a

customers system to plan their manufacturing schedules and employees who log on to

the companys intranet from home to check their e-mail messages.

1.3 Objectives of MIS

The objectives of MIS are as follows:

To help and enhance the business process and performance of business firm. It takes raw data as input, process it out and gives information as output at each

level of management to carry out their functions.

It facilitates the decisions-making process by furnishing information in the propertime frame.

Support decision-making in both structured and unstructured problemenvironments.

Provide a system of people, computers, procedures, and interactive facilities,documents for collecting, storing, retrieving and transmitting information to theusers.

1.4 Limitations of MIS

The limitations of MIS are as follows:

MIS cannot replace managerial judgments in decision-making and is only aneffective tool for managers in decision-making and problem solving.

MIS may not have enough flexibility to update itself quickly. The quality of output of MIS directly proportional to the quality of input and

processes.

MIS is less effective due to frequent changes in the top management,organizational structure and operational staff.

MIS is less useful for making non-programmed decisions. MIS takes only quantitative factors into account.

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MIS is less effective in organizations where information is not being shared withothers.

1.5 Information System Framework for Business Professionals

An understanding of the effective and responsible use in management of information

system and technology is important for the managers; business professionals and other

knowledge worker in todays inter network enterprises. IS plays a vital role in the E-business and E-commerce operations, enterprise collaborations and management, and

strategic success of business that must operate inter-network global environment.

The IS knowledge that a business managers or a professionals need to know includes:

Foundation concepts Information Technology Business Application Development Process Management Challenges

Foundation concepts

It defines the fundamental behavioral, technical business and managerial concepts like

system components and functions or competitive strategies. The fundamental concept of

competitive advantage done through information technology and strategic information

system uses information technology to help an organization gain a competitiveadvantage.

Information Technology

It signifies major concepts, development or management issues regarding hardware,

software data and network technology. It also explains that the database managementsoftware helps business professionals and supports the operations and management.

Business Application

The major use of IT for business process, operation, decision making and strategicadvantage of a business including e-commerce, e-business, collaboration and decision-

making using the internet, intranet and extranet. It also describes how internet and other

technologies support the business processes.

Development process

It talks about how end user operator and IS specialist plan, develop and implementbusiness, IT solutions to the problems and opportunities as arising in the business. In this

process, there is role of planning and business models in the development of business

applications and management solutions for new IT-based business strategies.

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Management Challenges

It describes how to effectively and ethically manage the information system functions and

IT resources to achieve top performance of the business. It helps business managers and

professional to identify the harmful effects and increase the beneficial effects of the use

of information technology.

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CHAPTER-TWO

ORGANIZATION OVERVIEW

2.1 Introduction of AWON LIBRARYActive women who make a difference

AWON library is one of the institute of AWON club (other two institutes are: the

Kalimati Clinic and the AWON Scholarship for Girl Children in the outlying villages in

Nepal) established by Dr. Bethel Fleming in 1955 with five lady friends. They named it

AWON (then called American Women of Nepal) with a vision to promote interaction,fellowship, and understanding among expatriate women living and working in Nepal. 49

years later the organization is bigger and better than ever, Making a difference to the

lives of Children and Women in Nepal as their motto reads. The organization wasrenamed Active Women of Nepal a couple of years ago to include all nationalities.

The AWON library has been in existence for over 40 years and has moved several times.

It now occupies a two-storied building opposite and down the hill a bit from the HotelHimalaya (Patan side) in Kupondole. This library is a relatively inexpensive (nearly free)

service to Nepalese and expatriates. It is run on a purely voluntary basis, mostly by

Nepali volunteers. Its books are mostly gotten from donations of interested andconcerned people. The library has thousands of volumes (mostly paperbacks), in every

category: literature, history, travel, biography, mystery, adventure... and a HUGE

children's book and magazine section. With well over 1,000 members, this library has the

largest collection of childrens books in English, as well as an excellent collection foradults. There are valuable books on Nepal along with books on a large variety of subjects

both fiction and non-fiction. Ram Shrestha has been working here since the beginning

and manages the place. Keshuman, (yes, the one with a 100 volt smile) is there everready to assist you. At the helm of the committee is Sandra Coughlin, the Library

Chairperson and in her absence Sudeshna Bose, Co Chairperson.

For details: 552-0803 or e-mail at mlsms@mail.com.np

The rules of joining and using the AWON LIBRARY are easy. Individual membership

costs Rs. 250 with 5 books to issue at a time and family membership costs Rs.500 which

allows to issues 20 books at a time. You can join in several categories -- individual and

family, and local and "out of valley". If you life in Biratnagar, for example, you can jointhe Kathmandu AWON Library and check out books for up to 3 months to be taken and

read "out of valley" (they are marked "OV"). If you live in the Kathmandu Valley, anduse the books there, I think you have a month's time on each item checked out.

AWON Library is a tremendous service to the community. On Saturdays it is packedwith patrons (mostly Nepali)... it is very busy. Turnover is huge, as is the number of

volumes. It is worth checking into, for individual and family.

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2.2 Objectives of AWON Library

Encourage reading habits among general people Provide the books of English writers Facilitate learning habits Improve English communication of Nepalese Provide spacious and comfortable place for studying

2.3 Organizational Structure of AWON library

Fig 2: Organizational structure of AWON Library

Librarians Cleanliness staffs Maintenance staff

Manager

(Ram Shrestha)

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CHAPTER-THREE

SYSTEM DEVELOPMENT PROCESS

3.1 Prototyping

Prototyping involves the creation of an early working version of the information system

or its components. It is rapidly application development tools to develop the software for

such an organization which requirements are changes frequently according as needs ofusers. So, a rapid application development tool (prototyping) fulfills the usersrequirements, those requirements changes dynamically within the shorter period of time.

Prototyping tests system concepts and provides an opportunity to examine input, outputand user interfaces before final decisions are made. It is the process of building an

experimental system quickly and inexpensively for demonstration and evaluation process

so that the user can better determine system.

3.1.1 Prototyping Process

The major steps involved in the prototyping process are as follows:

Identify the basic requirement Develop working prototype Use the prototype Revise and enhance the prototype

These steps of prototyping process are shown in the following diagram:

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3.2 System Development Life Cycle (SDLC)

SDLC is traditional approach to develop the new system which has number of activities

like system analysis, system design, programming i.e. coding, testing, conversion andproduction & maintenance. All activities of SDLC is also called as System Development

Life Cycle Stages. These different stages of SDLC must be completed sequentially with avery formal division of labor between end users and information system specialist.Various stages of SDLC are:

Identify the basic requirement

Develop Working Prototype

Use the Prototype

UserSatisfaction

Revise and Enhance Prototype

No

Yes

Operational

Prototype

Fig 3: The Prototyping Process

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System analysis System design/modeling System implementation/coding/programming System testing System conversion System maintenance

3.2.1 System Analysis

System analysis is initial stage of the SDLC in which system analyst analyzes the

problem of the organization and tries to solve with an information system. It consists of:

Defining the problems Identifying its cause Specifying the solution

System Analysis

System Design

Implementation

Testing

Conversion

Production and

Maintenance

Fig 4: System Development Life Cycle

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organizations functions, areas and process that are performed within and between the

organization and outside world.

Symbols used in context diagram:

ProcessBubbles or circles are used to indicate where incoming data flows are processed

and then transform into outgoing data flows.

DataflowArrows making the movement of data through the system indicate the data flows.

Data flow is transfer of data or flow of information between two entities throughprocessing.

Lin with arrowhead

EntitiesExternal entities represent the source of data as input to the system. They are alsodestination of the system data. External entities can call data stores outside the

system. There are represented by square or rectangles.

The following represents the context diagram of the library management system in the

Awon Library

data flow

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Fig 5: Context Diagram of Library Management System

Data Flow Diagram (DFD)

DFD is pictorial representation of flow of system data and transformation of process.DFD provides logical concept to implement the system through the programmer.

Programmer designs the error free code with the help of logical design as DFD. DFD

(logical design) is act as bridge between system analysis and system implementation.

Library

management

system

Librarian

Add member

Search member

Add book

Delete book

Delete member

Provide member list

Display book list

Member

Return book

Search book

Request book

Issue book

Display book list

Provide late payment bill

Pays bill

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Fig 6: Data Flow of Library Management System

Member

5. Issuing

/returning

book

4.Searching

information

of book

Issue/Return file

Search book

Display booklist

Issue book

Return book

6. Accounting

informationsystem

A/c info

Provide fine bill

Make payment

Supervise

3. Editinginformation

of book

Book info

1. Editing

information

of member

2. Searching

information

of member

Librarian Member info

Add member

Delete member

Search member

Display

member list

Add book

Delete book

Provide update information

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Entity-Relationship-Diagram (E-R-D)

It is a graphical tool that identifies and represents the entities in an enterprise or system

and logical relationships among these entities. An Entity-Relationship Diagram is a veryuseful to capture the data elements in a system. Database designers document the

conceptual data model with an entity relationship diagram. It contains the followingcomponents:

Rectangle-entities are shown Ellipse-attributes of the entity are shown Diamondrelationship between entities Lines- links between entities, attributes and relationships.

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Fig 7: E-R-D Diagram of Library

Members

Burrow /

Return

Name

Address

Telephone _no

Age

Gender

Date _of _joining

Book_id

Facilitates

Librarian

HasLibrary

SalaryName

Books

Publication

Author

Name

Issues

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3.2.3 System Implementation/Coding/Programming

Although a system may be well designed and properly developed, a major part of its

success is contingent on how well systems implementation is planned and executed. Thisis the process of translating the system specifications prepared during the stage into

program code. During the programming stage, system specifications that were preparedduring the design stage are translated into software program code. On the basis ofdetailed design documents for files, transactions and report layouts and other design

details specifications for each program and prepared. Organizations write their software

program themselves or purchase the software packages for this purpose.

3.2.4 System Testing

A system testing is a test of the entire information system using live data supplied by the

end users in an attempt to exercise all processing situations under typical conditions.

Testing stage answers the question will the system produce desired results under thenon condition? it is time consuming as test data must be carefully prepared result,

received result and corrections used in the system. Testing can be broken down into threetypes of activities:

Unit testingUnit testing is the process of testing each programmed separately in the system. It is

believed that purpose of such testing is to guarantee that programmed are error free.

System testingSystem testing tests the functioning of information system as a whole in order to

determine whether different modules will functions together as planned. It also examinesthat whether the system performance is timely, capacity of data storage, recovery and

restart capabilities.

Acceptance TestingIt provides the final certification that the system is ready to be used in production setting.

System test are evaluated by different level of users in organization and reviewed by

different level of management. When all parties are satisfied then the new system meetstheir standards then the system is formally accepted for installation.

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3.2.5 System conversion

System conversion is a process which replaces old system into new system. There is

different conversion strategy to convert old system into new system.

Parallel strategy Direct cut over strategy Phased strategy/Pilot strategy

Parallel strategyParallel strategy of system conversion is used to run both old system and new system

together for a long time until everyone is assured the new one functions correctly. This

approach is safe and conservative conversion approach in which backup systeminformation is recovered by the old system when new system is crashed. This approach is

very expensive because additional manpower is required to run the new system including

extra resources.

Direct cut over strategyDirect cut over strategy of system conversion is use to convert old system completely by

the new system. This approach is very risky because old system is completelycompressed into new system and if new system is crashed than all the data, information

of the organization is lost. There are no any backup recoveries to recover the information

of old system. This strategy is very economy because no additional manpower andresources are required.

Phased strategy/Pilot strategyPilot and phased strategy are use to convert the old system into the new system by

selecting the limited area of the organization as a single department or operating unit.

When this limited area or a single department is completed and works smoothly, it is

installed throughout the rest of the organizations unit either simultaneously or in thestages.

3.2.6 System Maintenance & Production

It is the stage after the new system is installed and the conversion is completed, duringthis time the system is reviewed by the users and technical specialist to determine how

well it has met its original goals. When we runt he system we have to increase the

working efficiency of the system by monitoring, evaluating and modifying theoperational business systems to make desirable necessary improvement is called as

system maintenance. It is also necessary for other failures and improvement for problems

that arise during the operation of the system. It is done by changing hardware, software,

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documentation or procedures to a production systems to correct errors, meet new

requirements, improve processing efficiency.

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CHAPTER FOUR

DECISION SUPPORT SYSTEM

4.1 Decision Support System (DSS)

DSS are specifically designed to help management make decisions in situations wherethere is uncertainty about the possible outcomes of those decisions. DSS comprise tools

and techniques to help gather relevant information and analyze the options and

alternatives. DSS often involve use of complex spreadsheet and database to create what -

if models. It provides support for the decision making process of managers and otherbusiness professionals. E.g.: Product pricing, profitability forecasting etc.

4.2 Executive Information System (EIS)

EIS is used by top level of management. EIS combines many features of MIS and DSS.The first goal of EIS is to provide top executives with immediate and easy access to

information about a firms critical success factors (CSF). EIS provide critical information

from many sources to the information needs of executives. E.g.: System for easy access

4.3 Transaction Processing System (TPS)

As the name implies, TPS are designed to process routine transactions efficiently and

accurately. TPS is used in operational level of organization which is used to perform day-

to-day operation in organization; transaction processing system performs and records

daily routine transactions necessary to conduct business. A business will have several(sometimes many) TPS; for e.g.:

Billing systems to send invoice to customers Systems to calculate the weekly and monthly payroll and tax payments Production and purchasing systems to calculate raw material requirements Stock control system to process all movements into, within and out of the

business.

Different application software packages are used to perform day-to-day transactions inTPS level. For e.g.: MS-Excel, MS-Word, PowerPoint, tally, access, pumori, etc.

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4.4 Online Transaction Processing System (OLTPS)

OLTPS is used to perform day-to-day operation transaction processing, sharing of data

and information for the intra-network business. OLTPS perform their activities or

operation on remote data and remote information to share data, manipulate data, to

produce and dispatch the correct information. Different office automation tools are usedto perform the operation of data in the effective manner. With the help of OLTPS, we can

easily perform the operation like insert, delete and update on the remote data.

4.5 Artificial Intelligence (AI)

AI is connected with both the intelligence of machines and the branch of computer

science which aims to create it. AI is the study and design of intelligent agents, where

an intelligent agent is a system that perceives its environment through sensor and takes

actions using actuators which maximize its chances of success. John McCarthy, who

coined the term in 1956, defines it as the science and engineering of making intelligentmachines.

4.6 Expert System (ES)

An expert system is a software system that attempts to reproduce the performance of one

or more human experts, most commonly in a specific problem domain, and is a

traditional application and/ or subfield of artificial intelligence. A wide variety of

methods can be used to simulate the performance of the expert however common to mostor all are:

1. The creation of a so-called knowledgebase which uses some knowledgerepresentation formulism to capture the subject matter experts (SME) knowledge

and

2. A process of gathering that knowledge from the SME and codifying it accordingto the formalism, which is called knowledge engineering. ES may or may not

have learning components but a third common element is that once the system is

developed it is proven by being placed in the same real world problem solving

situation as the human SME, typically as an aid to human workers or a

supplement to some information system.

A good example of application of expert systems in banking area is expert systems for

mortgage.

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CHAPTER-FIVE

BUSINESS APPLICATIONS

5.1 Use of MIS in functional areas of business

5.1.1 Finance and Accounting Information System

Finance and accounting information system provides the following ideas:

Accounting information system records, reports and analyze business transactions andevents for the management of business enterprise

Example of common account information system includes order processing,inventory control account receivables, account payable, payroll and general ledger

systems. Information system in finance support financial managers in decisions regarding the

financing of business and allocation of financial resources within a business.

Financial information system includes cash management online investment, capitalbudgeting, actual budgeting, financial forecasting and planning

5.2.2 Sales and Marketing Information System

Sales and marketing information system provides the following ideas:

Marketing information system supports traditional and E-Commerce process andmanagement of the organizing functions.

Major types of marketing information system includes interactive marketing at E-Commerce websites, sales for automation, customer relationship management, salesmanagement, product management, advertising and promotion and market research.

It helps to increase sales and reach large number of audience.

5.2.3 Manufacturing and Production Information System

Manufacturing and production information system solves problems related to the

planning, development and delivery of product and services and control the flow of

production. Supply chain system provides information to coordinate, sourcing andprocurement, production scheduling, order fulfillment, inventory management, product

development, warehousing and customer service. Manufacturing and productioninformation system supply data to operate monitor and control the production process.

For example shipping, process control, robotics, engineering, operations, quality control

resource management.

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5.2.4 Human Resource Information System

Human Resource Information Systems supports human resource management in

organization which includes information system for staffing the organization, training

and development and compensation administration. This system mainly deals with

recruitment, placement, performance, compensation, evaluation and career developmentof firms employees.

5.2 E-Commerce

Electronic commerce consists of the buying, selling, marketing and servicing of productsor services over computer networks. The information technology industry might see it as

an electronic business application aimed at commercial transactions. An alternative

definition of e-commerce might view it as the conduct of business commercial

communications and management through electronic methods such as electronic data

interchange and automated data collection systems.

5.2.1 Types of E-commerce

The major types of E-commerce are as follows:

Business to Consumer Commerce (B2C): involves retailing products and services toindividual shoppers. Amazon.com which sells books to consumers is an example of

B2C E-Commerce.

Business to Business Commerce (B2B): involves sales of goods and services amongbusinesses. There are different web site for buying and selling natural gas liquids,

refined and intermediate fuels, chemicals, and plastic is an example of B2B E-Commerce.

Consumer to Consumer Commerce (C2C): involves consumers selling directly toconsumers. For example e-bay enables people to sell their goods to other consumersby auctioning the merchandise off to the highest bidder.

Consumer to Business Commerce(C2B):involves

5.2.2 Importance of E-Commerce

The importance of E-Commerce is as follows:

It provides reliability and security. Parallel servers, hardware redundancy, fail-safetechnology, information encryption and firewalls can enhance this requirement. It provides value to customers. Vendors can achieve this by offering a product or

product line that attracts potential customers at a competitive price, as in non-

electronic commerce.

It provides service and performance as it offers a responsive, user friendly purchasingexperience

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It provides an incentive for customers to buy and to return. Sales promotion to thisend can involve coupons, special offers, and discounts.

It provides personal attention. Personalized websites, purchase suggestions andpersonalizes special offers may go some of the way to substituting for the face to face

human interaction found at a traditional point of sale.

5.3 E-Business

Electronic business is the use of the internet and other networks and informationtechnologies to support electronic commerce, enterprise communications and

collaboration, and web enabled business process both within an internet worked

enterprise and with its customers.

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CHAPTER-SIX

ETHICAL DIMENSIONS

6.1 Introduction

Ethics means the way which guide individual to judge their behavior as right or wrong.New different ethical issues are raised by the information system for both individual and

societies as information system creates new opportunities for individual and make easy in

lots of issues which make subject of legal operation. Ethical issue raised by informationsystem are: making accountability for consequence of information system, setting of

standards to maintain system quality that protect the safety of individuals and societies,

maintain values and institutions which are essential for the quality of life in an

information society.

6.2 Five Moral Dimensions of the Information AgeThe five dimensions of the information age are as follows:

Information rights and obligationsWhat information rights do individuals and organizations posses with respect to

information about themselves? What can they protect? What obligations do individuals

and organizations have concerning this information?

Property rightsHow will traditional intellectual property rights be protected in a digital society in whichtracing and accounting for ownership is difficult and ignoring such property rights is so

easy.

Accountability and controlWho can and will be held accountable and liable for the harm done to individuals and

collective information and property rights.

System qualityWhat standards of data and system quality should we demand to protect individual rights

and the safety of society by information system users.

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Quality of lifeWhat values should be preserved in information and knowledge based society whichinstitutions should we protected from violation, which cultural values and practices are

support by the new technologies.

6.3 Ethics in an Information Society

ResponsibilityResponsibility is the major element of ethical action. Responsibility means the

individual who makes the certain decisions accept the potential costs, duties and

obligations for his/her decisions.

AccountabilityAccountability is the feature of systems and social institutions. It assures that there aremechanisms for determining who took responsible action, which is responsible. It is very

difficult in some systems and institutions to find out who took what action.

LiabilityLiability is a feature of political systems which allows individuals who are done harm by

others (actors, systems or organization) to take action or to recover the damage done tothem.

Due processDue process is a process in which laws are established and made known and understood

and there is an ability to appeal to higher authorities to ensure that the laws are applied

correctly.

6.4 Ethical Issues for AWON Library

AWON contains detailed information about all its members including the library

members. As a member of the ethical society, it is AWONs responsibility to protect the

information of each of its individual members and not misuse it against them.

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CHAPTER-SEVEN

FORMS PREPARED IN VISUAL BASIC

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