TOPIC ONE: INTRODUCTION TO MANAGEMENT INFORMATION SYSTEMS

(MIS)
Definition of MIS
Management information system is a system consisting of people, machines, procedures,
databases and data models, as its elements. The system gathers data from the internal and
external sources of an organization.
MEANING:
Management information system is an acronym of three words, viz., Management,
information, system .in order to fully understand the term MIS, let us try to understand these
three words.
1. Management:
Management is the art of getting things done through and with the people in formally
organized groups.
Managerial function:
Planning
Organising
Staffing
Directing and
Controlling

Management hierarchy:
 2. Information:
Information is data that is processed and is presented in a form which assists decision
making.it may contain an element of surprise, reduce uncertainty or provoke a manager to
initiate an action.
Data usually take the form of historical records. In contrast to information, raw data may
not be able to surprise us, may not be organised and may not add anything to our knowledge.
DATA-------→PROCESSING-------→INFORMATION
3. System:
The term system is the most loosely held term in management literature because of its use
in different contexts. However, a system may be defined as a set of elements which are joined
together to achieve a common objective. The elements are interrelated and interdependent.
The set of elements for a system may be understood us input, process and output. A
system has one are multiple inputs; these inputs are processed through a transformation process
to convert these input into outputs. The three elements of a system are
INPUT------→PROCESS--------→OUTPUT

LESSON TWO: Components of MIS

Components /resources of information system.

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 An information system depends on the resources of people, hardware, software, data and
networks to perform input, processing, output, storage and control activities that convert data
resources into information.
IS consists of 5 major resources:
1. People resources:
People are the essential ingredient for the successful operation of all information systems. This
people resource includes: End users are also called users or clients are people who use an
information system or the information it produces. They can be customers, salespersons,
engineers etc... Most of us are IS end users.
IS SPECIALISTS are people who develop and operate information system. They include system
analysists, software developers, system operators and other managerial, technical and clerical IS
personnel.
2. Hardware resources:
It includes all physical devices and materials used in information processing.
Examples of hardware in computer based information system are:
Computer system which consists of central processing units containing microprocessors and a
variety of interconnected peripheral devices. Example: handheld, laptop, midrange computer
systems and large mainframe computer systems. Computer peripherals which are devices such
as a keyboard or electronic mouse for input of data and commands a video screen or printer for
output of information and magnetic or optical disks for storage of data resources.
3. Software resources:
It includes all set of information processing instructions. It includes not only the set of operating
instructions called programs. Examples are
System software such as an operating system program which controls and supports the
operations of computer system. Application software which are programs that direct processing
for a particular use of computers by end users. Example sales analysis program, a payroll
program and a word processing system.
4. Data resources:
Data resources of information systems are typically organised, stored and accessed
by a variety of data resources mgt technologies into:
Database that hold processed and organised data. Knowledge bases the hold knowledge in
variety of forms such as facts, rules, and case.
5. Network resources:

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 Telecommunications technologies and networks like the internet, intranets and
extranets. The concept of network resources emphasizes that communications technologies and
networks are a fundamentals resource component of all information systems. Network resources
include:
Communications media is includes twisted pairs wire, coaxial and fiber optic cables and
microwave, cellular and satellite wireless technologies. Network infrastructure this generic
category emphasizes that many hardware, software and data technologies are needed to support
the operation and use of a communication networks.
Role of information in an organization
For an organization to act, it needs to have information about itself, its customer and supplier (if
any), and the environment that it operates in.

Operations: A business information system carries out specific functions in support of

operations, including payroll, employee record storage, preparing and storing company
documents and credit card processing. If your company operates a manufacturing line, the
information system can schedule tasks and processes while keeping quality records. Some
companies, such as graphic designers or advertising companies, use the information system to
produce their products and services. In supporting operations, the information system can
increase efficiency and improve employee productivity.
Controls: Monitoring and controlling the activities of employees is a core function of
information systems. This is especially true of financial transactions in which management has a
duty to prevent fraud and theft. In this role, the security of the information system is critical, as
managers rely on it to track payments received from customers and invoices from suppliers. The
system imposes its control functions by allowing only authorized employees to log in and access
the relevant functions. For example, only a few employees may be authorized to generate a
company check. In addition to limiting who can perform such functions, the system keeps track
of who logged in and carried out the task.
Decisions: A third fundamental role for information systems is management support in making
decisions. Managers can get all the information they need about company activities from the
system. Complete, accurate information means management decisions are more effective. More
sophisticated systems can go beyond supplying data to running scenarios:

Qualities of good information

• Good information must be :
– Accurate – good information is based on correct and complete data, and it has
been processed correctly as expected. Accuracy is crucial; managers must be able
to rely on the results of their information systems. The IS function can develop a

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 bad reputation in the organization if a system is known to produce inaccurate
information.
– Timely – Information should be given in a timely manner. A report that is 6
weeks late is most likely useless. In that case, the information would have been
received well after decisions for that material have all ready been made. Ex:
Shipping goods to a customer when the information system says not to. Can you
think of any?
– Relevant – Information should be relevant both to the context and to the subject.
If you’re the CEO, you may need information that is summarized to an
appropriate level for your job. A list of hourly wage is unlikely to be useful.
Instead, you would need the average wage information by department or division.
Also, make sure that it is relevant to the subject at hand. If you need short term
interest rates for a possible line of credit, than a paper with 15 year mortgage
interest rates is useless. Has this ever happened to you at your place of work?
– Just barely sufficient – Information needs to be sufficient for the purpose it is
generated, but just barely so. There is a lot of information out there in the world
and as you grow in management you need to decide what material to ignore and
what to use.
– Worth its cost- Information is not free. It costs money to develop a system, and to
maintain it. For information to be worth its cost there must be an appropriate
relationship between the cost of information and its value. Can you think of an
example?
Qualities of good information system
1. Functional: Adopts/conforms to industry best practices • Reduces data burden on users •
Promotes evidence-based decision making – Reports, indicators/KPIs • Cost effective
2. Usable: Correctness: The software should meet all the stated specifications. •
Usability/learnability: The amount of effort or time required to learn how to use the
software; how user-friendly the software is. • Integrity: Software should not have/create
any adverse side effects.
3. Operational: Reliability: Software should be defect-free. It should not fail during
execution. • Efficiency: Software should make effective use of resources. • Security:
Software should not cause ill effects on data and hardware. The data should be kept
secure from external threats.
4. Revision: Maintainability: Software maintenance should be easy for any kind of user. •
Flexibility: Changes in software should be easy to make. • Testability: Testing the
software should be easy. • Extensibility: Enhancing functionality should be easy.
5. Scalable: Scalability: Easily upgradeable for more work or for larger number of users •
Extensibility : Accessible across multiple platforms/devices • Modularity: Separate
independent units/modules that can be modified and tested independently

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 APPROACHES TO SYSTEM CLASSIFICATION
 classification By organizational level supported
 classification By functional area supported
 classification By support provided
 classification By management activity supported

In any given organization information system can be classified based on the usage of the
information. Therefore, an information system in an organization can be divided into operations
support system and management support system.

1. Operations support system

In an organization, data input is done by the end user which is processed to generate
information products i.e. reports, which are utilized by internal and or external users.
Such a system is called operation support system.

The purpose of the operation support system is to facilitate business transaction, control
production, support internal as well as external communication and update organization
central database. The operation support system is further divided into a transaction-
processing system, processing control system and enterprise collaboration system.

a. Transaction Processing System (TPS)

In manufacturing organization, there are several types of transaction across department.
Typical organizational departments are Sales, Account, Finance, Plant, Engineering,
Human Resource and Marketing. Across which following transaction may occur sales
order, sales return, cash receipts, credit sales; credit slips, material accounting, inventory
management, depreciation accounting, etc.

Assignment These transactions can be categorized into batch transaction processing,

single transaction processing and real time transaction processing.

b. Process Control System

In a manufacturing organization, certain decisions are made by a computer system
without any manual intervention. In this type of system, critical information is fed to the
system on a real-time basis thereby enabling process control. This kind of systems is
referred as process control systems.

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 c. Enterprise Collaboration System
In recent times, there is more stress on team effort or collaboration across different
functional teams. A system which enables collaborative effort by improving
communication and sharing of data is referred to as an enterprise collaboration system.

2. Management Support System

Managers require precise information in a specific format to undertake an organizational
decision. A system which facilitates an efficient decision making process for managers is
called management support system.

Management support systems are essentially categorized as management information

system, decision support system, expert system and accounting information system.

Give two examples in each case

Management information system provides information to manager facilitating the routine

decision-making process. Decision support system provides information to manager facilitating
specific issue related solution

Social-technical view of information systems

A socio-technical system (STS) is one that considers requirements spanning hardware, software,
personal, and community aspects. It applies an understanding of the social structures, roles and
rights (the social sciences) to inform the design of systems that involve communities of people
and technology. Examples of STSs include emails, blogs, and social media sites such as
Facebook and Twitter.

The basis of STSs is general systems theory, which describes what the disciplines of science
have in common—i.e., that they all refer to systems: sociologists see social systems,
psychologists cognitive systems, computer scientists information systems, and
engineers hardware systems. In general systems theory, no discipline has a monopoly on science
—all are valid.

These disciplinary perspectives on computing allow us to view computing through distinct levels
and trace its evolution. Computing began at the mechanical level (hardware devices), evolved an
information level (devices + software), then acquired a human level (IT + human-computer
interaction), and finally a community level (STSs). A community works through people using
technology, as people work through software using hardware. Consequently, social requirements
are now an important part of computing design.

While sociologists study the social level alone as if it were apart from physicality, and
technologists study technology as if it were not part of society,

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Socio-technology is a distinct field of inquiry on how personal and social requirements can
be met by IT system design. As such, STSs seek to merge people and technology, viewing the
integration of computers into societal systems as the next evolutionary step of humanity. An STS
approach to design raises the cost of development but results in complex systems, like social
networks, that have far more performance potential. Exploring a design problem by rising to an
STS mindset can reveal further dimensions of a design’s use potential and inspire development.

TOPIC TWO: USE OF INFORMATION SYSTEM IN MANAGEMENT

Meaning and Importance of Management

Definition of Management
Definition of Louis A. Allen

Management is what a manager does .

Definition of Henxy Fayol:

To manage is to forecast and plan, to organize, to command, to coordinate and to control.

Definition of F.N. Taylor:

Management is the art of knowing what you want to do…. in the best and cheapest way.
The definition for management is more comprehensive and much wider in its scope. From the
definitions referred above, it is clear that management is getting things done through the efforts
of other people.

Functions of Management

1. Planning:
According to Terry and Franklin, “Planning is selecting information and making assumptions
regarding the future to formulate the activities necessary to achieve organizational objectives.”
“Planning involves selecting missions and objectives and the actions to achieve them; it requires
decision-making that is, choosing from among alternative future courses of action.” Planning is
done at all levels of management. At higher levels, plans are long-term in nature and at lower
levels they are short-term in nature. Planning, in simple terms, is setting targets and objectives to
be achieved, devising ways to achieve them and selecting the best action to achieve the goals.

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2. Organizing:
Organizing is:
a. Identification and classification of objectives,
b. Grouping of activities necessary to attain objectives,
c. Assignment of each grouping to a manager with the authority (delegation) necessary to
supervise it, and
d. Coordinating the activities horizontally (at the same or similar organizational level) and
vertically (for example, corporate headquarter, division and department) in the
organization structure. “Organization is the structure and process by which a
cooperative group of human beings allocates its tasks among its members, identifies
relationships, and integrates its activities towards common objectives.”
3. Directing:
“Directing is telling people what to do and seeing that they do it to the best of their ability. It
includes making assignments, corresponding procedures, seeing that mistakes are corrected;
providing on-the-job instructions and, of course, issuing orders.”
According to Unvick and Brech “directing is the guidance, the inspiration, the leadership of
those men and women that constitutes the real core of responsibility of management.”
Directing is, thus, activating. It is bringing plans into action by motivation, communication,
leadership, supervision and team building of the organizational members.
4. Staffing:
Staffing means identifying human resource needs, filling the organizational structure and
keeping it filled with competent people. According to Massie, “The staffing function includes the
process by which the right person is placed in the right organizational position.”

5. Controlling:
“Control is the process that measures current performance and guides it towards some pre-
determined goal. The essence of control lies in checking existing actions against some desired
results determined in the planning process.”
“Controlling is determining what is being accomplished, that is, evaluating the performance and,
if necessary applying corrective measures so that the performance takes place according to
plans”.
Contribution of management to society
The management contributes in the following ways to a complex society:

1. It tries to make effective utilization of resources,

2. It develops various resources,

3. It balances the pressures from various interest groups,

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4 It provides stability in the society by changing and modifying the resources as per the changing
environment of the society, and

5. It provides integration between traditions and new inventions and protects the society from the
mal-effects of inventions so that continuity in the social process may be maintained.

Importance of Management
The significance of ‘Management’ may be enumerated in the following paragraphs:

1. Meeting the Challenge of Change

Challenge of change has become intense and critical in recent years. The complexities of modern
business can be overcome only through scientific management.

2. Effective Utilization of the Seven M’s

There are seven M’s in business, such as Men, Materials, Money, Machines, Methods, Markets
and Management. Management stands at the top of all these M’s and determines and controls all
other factors of business.

3. Directs the Organization

Just as the mind which directs and controls the body to fulfill its desires, management also
directs and controls the organization to achieve the desired goal

4. Integrates Various Interests

In the group efforts, there are various interest groups which put pressure over other groups for
maximum share in the final output. Management by balancing these pressures integrates the
various interests.

5. Provides Stability
It provides stability in the society by changing and modifying the resources to cope up with the
demanding needs of the every changing environment of the society.

6. Provides Innovation
Management provides new ideas, imaginations and visions to the organization and necessary life
for better and greater performance.

7. Establishes Team-spirit
Management coordinates the activities of the various departments in an organization and
establishes team-spirit among the personnel.

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8. Tackles Business Problems
Good management serves as a friend, philosopher and guide in tackling business problems. It
provides a tool for the best way of doing a task.

9. Acts as a Tool of Personality Development

Management is not the direction of things, but the development of men. It makes the personality
of the people. Management strives to improve quality, efficiency and productivity.

Limitations of Management
Like other social sciences, management is also subject to certain limitations. They are as follows:

1. Management techniques and policies should be adjusted according to specific circumstances.

One principle may be good for one enterprise, but it may not be suitable for another enterprise.
Likewise, a technique may be extremely useful in England, but it may be unworkable in India.

2. Principles of management are not static in nature. The concepts about management changes
with the development of science and technology. New ideas are innovated, new products being
put on the market, new likes and dislikes are developing every year. So what was successful in
2015 may lead to failure in 2016. Thus, a great deal of adjustment is to be done to cope with the
changing times.

3. Management is concerned with human element in an organization. Different groups and

different persons even in the same group, behave differently under different circumstances. This
human aspect of management provides the greater challenge to its scientific treatment. As
written by 0liver Sheldon,

Where human beings are concerned, Management principles may be so much waste paper.

TOPIC THREE: MEANING AND USE OF IS IN MANAGEMENT

Meaning of IS

 “Information systems (IS) is the study of complementary networks of hardware and

software that people and organizations use to collect, filter, process, create, and
distribute data.”
 “Information systems are combinations of hardware, software, and telecommunications
networks that people build and use to collect, create, and distribute useful data, typically
in organizational settings.”

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  “Information systems are interrelated components working together to collect, process,
store, and disseminate information to support decision making, coordination, control,
analysis, and visualization in an organization.”

Use of IS in Management

i. The MIS helps in strategic planning, management control, operational control and
transaction processing. The MIS helps in the clerical personal in the transaction
processing and answers the queries on the data pertaining to the transaction, the status
of a particular record and reference on a variety of documents.

iii. The MIS helps the junior management personnel by providing the operational data for
planning, scheduling and control , and helps them further in decision-making at the operation
level to correct an out of control situation.

iv. The MIS helps the middle management in short term planning, target setting and controlling
the business functions. It is supported by the use of the management tools of planning and
control.

v. The MIS helps the top level management in goal setting, strategic planning and evolving the
business plans and their implementation.

vi. The MIS plays the role of information generation, communication, problem identification and
helps in the process of decision-making. The MIS, therefore, plays a vital role in the
management, administration and operation of an organization.
Use of IS in management decision making
1. Information from Company Operations

When you base your decisions on data available from management information systems, they
reflect information that comes from the operations of your company. Management information
systems take data generated by the working level and organize it into useful formats.
Management information systems typically contain sales figures, expenses, investments and
workforce data. If you need to know how much profit your company has made each year for
the past five years to make a decision, management information systems can provide accurate
reports giving you that information.

2. Capability to Run Scenarios

The capability to run scenarios is a key decision-making tool. Some management information
systems have this feature built in, while others can provide the information required for

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running scenarios on other applications, such as spreadsheets. Your decision is influenced by
what happens if you decide a certain way. What-if scenarios show you how different variables
change when you make a decision.

You can enter reduced staff levels or increased promotion budgets and see what happens to
revenue, expenses and profit for different levels of cuts or increases. Management information
systems play a critical role in making realistic scenarios possible.

3. Projections to Assist in Decision Making

Any decisions you make result in changes in the projected company results and may require
modifications to your business strategy and overall goals. Management information systems
either have trend analysis built in or can provide information that lets you carry out such an
analysis. Typical business strategies include projections for all fundamental operating results.

A trend analysis allows you to show what these results would be in the current situation and
how they will change once you have implemented the decisions you have taken. The new
values form the basis of your strategic approach going forward.

4. Implementation and Evaluation

While you make your decisions with specific goals in mind and have the documentation from
management information systems and trend analysis to support your expectations, you have to
track company results to make sure they develop as planned. Management information systems
give you the data you need to determine whether your decisions have had the desired effect, or
whether you have to take corrective action to reach your goals. If specific results are not on
track, you can use management information systems to evaluate the situation and decide to
take additional measures if necessary.

5. An enterprise information system (EIS) is any kind of information

system which improves the functions of an enterprise business processes by
integration. ... An EIS is currently used in conjunction with customer relationship
management and supply chain management systems to automate business
processes

6. Decision support systems (DSS) are interactive software-based systems intended

to help managers in decision-making by accessing large volumes of information
generated from various related information systems involved in organizational
business processes, such as office automation system, transaction processing
system, 

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Attributes of a DSS (Produce notes or send via whatsaap)

 Adaptability and flexibility

 High level of Interactivity
 Ease of use
 Efficiency and effectiveness
 Complete control by decision-makers
 Ease of development
 Extendibility
 Support for modeling and analysis
 Support for data access
 Standalone, integrated, and Web-based
Characteristics of a DSS
 Support for decision-makers in semi-structured and unstructured problems.
 Support for managers at various managerial levels, ranging from top executive to line
managers.
 Support for individuals and groups. Less structured problems often requires the
involvement of several individuals from different departments and organization level.
 Support for interdependent or sequential decisions.
 Support for intelligence, design, choice, and implementation.
 Support for variety of decision processes and styles.
 DSSs are adaptive over time.
Benefits of DSS
 Improves efficiency and speed of decision-making activities.
 Increases the control, competitiveness and capability of futuristic decision-making of the
organization.
 Facilitates interpersonal communication.
 Encourages learning or training.
 Since it is mostly used in non-programmed decisions, it reveals new approaches and sets
up new evidences for an unusual decision.
 Helps automate managerial processes.

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Components of a DSS
Following are the components of the Decision Support System −
 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.
Support Tools − Support tools like online help; pulls down menus, user interfaces,
graphical analysis, error correction mechanism, facilitates the user interactions with the
system.
Classification of DSS
There are several ways to classify DSS. Hoi Apple and Whinstone classifies DSS as follows −
 Text Oriented DSS − It contains textually represented information that could have a
bearing on decision. It allows documents to be electronically created, revised and
viewed as needed.
 Database Oriented DSS − Database plays a major role here; it contains organized and
highly structured data.
 Spreadsheet Oriented DSS − It contains information in spread sheets that allows create,
view, modify procedural knowledge and also instructs the system to execute self-
contained instructions. The most popular tool is Excel and Lotus 1-2-3.
 Solver Oriented DSS − It is based on a solver, which is an algorithm or procedure
written for performing certain calculations and particular program type.
 Rules Oriented DSS − It follows certain procedures adopted as rules.
 Rules Oriented DSS − Procedures are adopted in rules oriented DSS. Export system is
the example.
 Compound DSS − It is built by using two or more of the five structures explained
above.
Types of DSS
Following are some typical DSSs −
 Status Inquiry System − It helps in taking operational, management level, or middle
level management decisions, for example daily schedules of jobs to machines or
machines to operators.

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 Data Analysis System − It needs comparative analysis and makes use of formula or an
algorithm, for example cash flow analysis, inventory analysis etc.
 Information Analysis System − In this system data is analyzed and the information
report is generated. For example, sales analysis, accounts receivable systems, market
analysis etc.
 Accounting System − It keeps track of accounting and finance related information, for
example, final account, accounts receivables, accounts payables, etc. that keep track of
the major aspects of the business.
 Model Based System − Simulation models or optimization models used for decision-
making are used infrequently and creates general guidelines for operation or
management
Types of Decision Making
The types of decisions can be arranged based on various points of view and broadly
known three types of decisions, namely:
 Decisions based on importance In general, an institution including an educational
institution has a management hierarchy. The hierarchy is divided into three
levels, namely top management, middle management and lower level
management. Top level management deals with strategic planning (Strategic
Planning). Middle level management handles oversight issues and is more
administrative in nature. The lowest level management is operational
management, related to the activities of daily operations.
 Decisions based on Rational Decisions put forward by Simon (19950 are divided
into programmed decisions and non-programmable decisions. Programmed
decisions, these decisions are routine and repetitive by means of counter
measures that have been determined to solve problems through procedures, rules
and policies. Decision is not programmed, this decision is not routine and is used
to solve problems that are not structured.
 Decisions based on the environment This decision is divided into the following
four groups: a. Decision making under certain conditions b. Decision making in
risk conditions c. Decision making in uncertain conditions d. Decision making in
conflict conditions Management Information Systems have a very important role
in an organization. Because it is very influential on the back and forth of an
organization. Every organization, both large and small, must have different
information systems, depending on the needs and problems that occur in that
organization.

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 Decisions Making

Decision-making is a cognitive process that results in the selection of a course of action among
several alternative scenarios.

Types of Decisions

o Unstructured decisions: These decisions require judgement, evaluation and insight to

solve the problem. Unstructured means “decision processes that have not been encountered in
quite the same form and for which no predetermined and explicit set of ordered responses exists
in the organization”.  (Mintzberg, et al., 1976, 246)  These decisions are seen as novel, important
and non routine. There is no well understood procedure for making them. An example of an
unstructured decision that management may face could be deciding if the company should enter
into a new market or would it be more beneficial for them to stay in just their current market.
Information systems help to make such decisions. 
o Semistructured decisions: these decisions have elements of both structured and semi
structured decisions. Only part of the problem has a clear-cut answer provided by accepted
procedure. A semi structured decision is one which is partially programmable but still requires
human judgement. There are three dimensions to a semi structured decision:
1. Degree of decision-making skill required.

2. Degree of problem complexity

3. Number of criteria considered

o Structured decisions: means having processes in place to handle a situation.  The

implication is that structured problems are recurring ones.  Because they recur, we put processes
and procedures in place to handle them. These decisions are repetitive and routine. They involve
definite procedures for answering. Therefore they don’t need to be treated as new each time the
decision has to be made. A good example of a structured decision would be the hiring process in
a company. its important to create structure around repetitive situations so that a lot of time is not
spent on very minor decisions

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 Decision Making Cycle

A decision cycle is a sequence of steps used by an entity on a repeated basis to reach and
implement decisions and to learn from the results

Following are the important steps of the decision-making process. Each step may be supported
by different tools and techniques.
 Identify the decision. The first step in making the right decision is recognizing the
problem or opportunity and deciding to address it. Determine why this decision will make a
difference to your customers or fellow employees.
 Gather information. Next, it’s time to gather information so that you can make a
decision based on facts and data. This requires making a value judgment, determining what
information is relevant to the decision at hand, along with how you can get it. Ask yourself what
you need to know in order to make the right decision, then actively seek out anyone who needs
to be involved.
 Identify alternatives. Once you have a clear understanding of the issue, it’s time to
identify the various solutions at your disposal. It’s likely that you have many different options
when it comes to making your decision, so it is important to come up with a range of options.
This helps you determine which course of action is the best way to achieve your objective.
 Weigh the evidence. In this step, you’ll need to “evaluate for feasibility, acceptability
and desirability” to know which alternative is best, according to management experts Phil
Higson and Anthony Sturgess. Managers need to be able to weigh pros and cons, then select the
option that has the highest chances of success. It may be helpful to seek out a trusted second
opinion to gain a new perspective on the issue at hand.
 Choose among alternatives. When it’s time to make your decision, be sure that you
understand the risks involved with your chosen route. You may also choose a combination of
alternatives now that you fully grasp all relevant information and potential risks.
 Take action. Next, you’ll need to create a plan for implementation. This involves
identifying what resources are required and gaining support from employees and stakeholders.
Getting others onboard with your decision is a key component of executing your plan effectively,
so be prepared to address any questions or concerns that may arise.
 Review your decision. An often-overlooked but important step in the decision making
process is evaluating your decision for effectiveness. Ask yourself what you did well and what
can be improved next time

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 Information system concept

Information is an increment in knowledge: it contributes to the general framework of concepts

and facts that we know. Information relies on the context and the recipient's general knowledge
for its significance.

Data are only the raw facts, the material for obtaining information. Information systems use data
stored in computer databases to provide needed information. A database is an organized
collection of interrelated data reflecting a major aspect of a firm's activities.

1. Information systems capture data from the organization (internal data) and its environment
(external data).

2. They store the database items over an extensive period of time.

3. When specific information is needed, the appropriate data items are manipulated as necessary,
and the user receives the resulting information.

4. Depending on the type of information system, the information output may take the form a
query response, decision outcome, expert-system advice, transaction document, or a report.

Formal information systems rely on procedures (established and accepted by organizational

practice) for collecting, storing, manipulating, and accessing data in order to obtain information.
Formal systems do not have to be computerized, but today they usually are. Informal information
systems also exist within an organization (interpersonal networking, water cooler gossip, etc.)

Features of quality information

1. Timely Available when needed and not outdated when made available

2. Complete Includes all the user needs to know about the situation where the information will be
used

3. Concise Does not include elements unneeded by the user

4. Relevant Has direct bearing on the situation

5. Precise Offers quantitative information with a degree of exactness appropriate to the

underlying data

6. Form The level of detail, tabular versus graphic display, and quantitative versus qualitative
form are selected in accordance with the situation Internal and External Information

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An information system is a specific type of system in general. A system is a set of components
(subsystems) that operate together to achieve certain objectives. The objectives of a system are
realized in its outputs. In particular, the objective of an information system is to provide the
appropriate outputs to the members of the organization

Components of Information Systems

Information systems consist of the following general components:

1. Hardware

Multiple computer systems: microcomputers, minicomputers, mainframes, together with their

peripherals. Computer system components are: a central processor(s), memory hierarchy, input
and output devices.

Computer processor: The central processor carries out the instructions of a program, translated
into a simple form.

Memories: Included in a computer system form a hierarchy. They range from the fast electronic
units, such as the main memory, to the slower secondary storage devices such as magnetic disks.

Moore's Law The increases in the number of transistors on chips correspond to the increase in
the microprocessor speed and memory capacity, and thus the growth of the processing power.

Downsizing In information systems, transferring some or all of the organization;s computing

from centralized processing on mainframes or minicomputers to systems built around networked
microcomputers (often in a client/server configuration).

2. Software

Computer software falls into two classes: systems software and applications software.

Systems Software: Manage the resources of the computer system and simplifies programming.
An operating system is the principal system software. It manages all the resources of a computer
system and provides an interface through which the system's user can deploy these resources.

Application Software: Are programs that directly assist end users in doing their work. They are
purchased as ready-to-use packages. Applications software directly assists end users in doing
their work.

3. Databases

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Databases are organized collections of interrelated data used by applications software. Databases
are managed by systems software known as database management systems (DBMS) and shared
by multiple applications.

4. Telecommunications

Telecommunications are the means of electronic transmission of information over distances.

Today, computer systems are usually interconnected into telecommunications networks. Various
network configurations are possible, depending upon an organization's need. These include:

1. Local area networks (LAN) 2. Metropolitan area networks (MAN) 3. Wide area networks
(WAN)

A Network Information System: Three-Tier Architecture:

1. Mainframe computer as the top-level machine

2. Several minicomputers or powerful microcomputers in the middle level.

3. End -users in the third tier.

A Downsized Networked Information System: Client/Server Architecture:

1. Users' microcomputers (clients) share the more powerful machines (servers)

2. Each server is dedicated to a particular task i.e., it is providing a certain service

3. The client machines provide the user interface that makes it easy to use the facilities of the
network.

4. When needed, the software running on the client calls remotely upon the software running on
the server to perform its task, to access the specified data from a database.

Systems Architecture for Remote Access from Virtual Offices:

5. Human Resources

Professional information systems personnel include development and maintenance managers,

systems analysts, programmers, and operators, often with highly specialized skills.

End users are the people who use information systems or their information outputs, that is, the
majority of people in today's organizations. The hallmark of the present stage in organizational

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computing is the involvement of end users in the development of information systems. End-user
computing, or control of their information systems by end users and the development of systems
by end users, has become an important contributor to information systems in organizations.

6. Procedures

Procedures are the policies and methods to be followed in using, operating, and maintaining an
information system. Specifications for the use, operation, and maintenance of information
systems, collected in help facilities, user manuals, operator manuals, and similar documents,
frequently delivered in an electronic form.

Types of Information Systems

Organizations employ several types of information systems. These include:

1. Transaction Processing Systems (TPS)

2. Management Reporting Systems (MRS)

3. Decision Support Systems (DSS)

4. Executive Information Systems (ESS)

5. Office Information Systems (OIS)

6. Professional Support Systems

Transaction Processing Systems

Transaction processing systems today generally work in on-line mode by immediately

processing a firm's business transactions. A Transaction is an elementary activity conducted
during business operations.

TPS may work either in batch mode, processing accumulated transactions at a single time later
on, or in on-line mode, processing incoming transactions immediately. Today, most TPS work in
the on-line mode.

Management Reporting Systems

The objective of management reporting systems is to provide routine information to managers.

Managers receive performance reports within their specific areas of responsibility. Generally,

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these reports provide internal information rather than spanning corporate boundaries. They report
on the past and the present, rather than projecting the future.

In order to prevent information overloads, managers may resort to using demand or exception
reports. Demand reports are requested when needed. Exception reports are produced only when
preestablished out-of-bounds conditions occur and contain only the information regarding these
conditions.

Decision Support Systems

Explains the structure of a decision support system. Decision support systems directly support a
decision-making session. These systems facilitate a dialog between the user, who is considering
alternative problem solutions, and the system that provides built-in models and access to
databases. The DSS databases are often extracts from the general databases of the enterprise or
from external databases.

Executive Information Systems

Executive information systems support top managers with conveniently displayed summarized
information, customized for them. They make a variety of internal and external information
readily available in a highly summarized and convenient form. EIS are used to:

1. Monitor the performance of the organization

2. Assess the business environment

3. Develop strategic directions for the company's future

Office Information Systems

The main objective of OIS is to facilitate communication between the members of an

organization and between the organization and its environment. OIS are used to:

1. Help manage documents represented in an electronic format

2. Handle messages, such as electronic mail, facsimile, and voice mail

3. Facilitate teleconferencing and electronic meetings

4. Facilitate the use of the Internet for communication and access to information

5. Facilitate the use of task-oriented teams through the use of groupware

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Professional Support Systems

Professional support systems help in tasks specific to various professions. As both organizational
and individual experience with information systems grow, more and more specialized categories
of professional support systems emerge.

Expert Systems in Information Systems

Expert systems are system that employs knowledge about its application domain and uses an
inferencing (reason) procedure to solve problems that would otherwise require human
competence or expertise. The essential component of the knowledge base is heuristics - informal,
judgemental elements of knowledge within the expert system's domain, such as oil exploration or
stock valuation. The knowledge base is developed by working with domain specialists. It is
further enhanced as the system is used.

2.5 Supporting Managers with Information Systems:

A variety of information systems support managers as they play their interpersonal,

informational, and decisional roles. The three management-oriented types of systems
(management reporting systems, decision support systems, and executive information systems)
provide different kinds of support to the three levels of management:

1. Strategic

2. Tactical

3. Operational

What Managers Do and How Information Systems Can Help

The fundamental functions of management include:

1. Planning establishing goals and selecting the actions needed to achieve them over a specific
period of time.

2. Controlling measuring performance against the planned objectives and initiating corrective
action, if needed.

3. Leadership including the people in the organization to contribute to its goals.

4. Organizing establishing and staffing an organizational structure for performing business

activities.

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Mintzberg classified all managerial activities into ten roles falling into three categories:

1. Interpersonal Role

2. Informational Role

3. Decisional Role

Information Systems for Management Support:

The objectives of the three levels of corporate management are:

1. Operations Management: performed by supervisors of smaller work units concerned with

planning and control of short-term (typically, a week or six months) budgets and schedules.

2. Tactical Management: performed by middle managers responsible for acquisition and

allocation of resources for projects according to tactical plans, set out for one or two years.

3. Strategic Management: Carried out by top corporate executives and corporate boards
responsible for setting and monitoring long-term directions for the firm for three or more years
into the future.

Information System Resources

An Information System is generally integrated and co-ordinate a network of components, which

combine together to convert data into information. The information system provides access of
information when it is required. The information system is a set of the component which
generally helps a system.
There are 5 resources of information system which are given below:
1. Hardware Resources:
The system components which can physically touch – the system unit (tower, desktop,
laptop), internal devices and peripheral devices (keyboards and monitors) – are called
hardware and it is important to remember that basic definition: The hardware are the parts of
the computer that are tangible and can be touched.
Peripheral devices are provided in many other ways, but think of them as hardware that
surrounds the system unit. These peripherals devices may be connected by wired or wireless
technology to the system unit. Generally peripherals devices communicate with the interior
components of the system unit via installed software. The software itself is intangible and
can’t be touched physically.

Software Resources:
We know that, the hardware needs to know what to do, and that is the role of software. The

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software may be divided into two types: first system software and second application software.
Primary piece of system software is the operating system, such as Windows or iOS, which
manages the hardware’s operation. Application software is perform for specific tasks, such as
handling a spreadsheet, creating a document, or designing a Web page.

People Resources:
The human element is the most important component of information system and the people
that are needed to run the system and the procedures they follow so that the knowledge in the
huge databases and data warehouses can be turned into learning that can interpret what has
happened in the past and guide future action.
Data Resources:
Data is one of the most important component which is generally store in form of information in
a database system and a database is a place where data is collected and from which it can be
retrieved by querying it using one or more specific criteria.All types of data store in warehouse
without knowing whatever form that an organization needs. The databases and data
warehouses have assumed even greater importance in information systems with the emergence
of “big data, ” a term for the truly massive amounts of data that can be collected and analyzed.
Network Resources:
The network is defined as a system in which more than the system is connected through a
transmission media. It provides an interface to receive a piece of information or send an
information. It is also one of the best resources in the information system.

Importance of managing information system resources

 Information is the life blood of any business or organisation. It helps dictate how
businesses form strategies, and implement processes based on them. It is at the heart of
business growth, which is why so much effort and resources are pumped into it
developing efficient information management systems, and qualified professionals to
help implement them. For businesses, improving efficiency and gaining a competitive
advantage, means increasing profits!
 And of course there’s another side. With access to vast amounts of information comes
great responsibility. We share information both voluntarily and involuntary with
organisations every day
 Organisations are under increasing pressure to handle information responsibly and
ethically, and to comply with evolving legal regulations. More transparency is being
demanded by people and their governments, therefore managing the information about
people that organisations hold is more important than ever, and the need for efficient,

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 safe, and effective Management Information Systems is more pertinent than ever. Failure
to comply with these regulations can land businesses in big trouble, with huge fines
potentially imposed, which is a further reason why organisations take information
management so seriously.

Information Society

The term information society and related concepts, such as information age and

knowledge economy, describe a social system greatly dependent on information
technologies to produce and distribute all manner of goods and services.

What are the key characteristics of an Information Society?

Up-to-date

Not always reliable

Widely available

Depend on information; can’t live without it

Creates power structures that can be projected into other countries (US creates this need
elsewhere)

Macintosh and Windows primarily in English—World Englishes (Dell computer)

65% of Internet in English

Space doesn’t matter as much and time (Negroponte—extension of Ong)—public vs. private
space (personal space brought into public space on the cell phone)

The network to bring the world together: create a global society—but we don’t necessarily do
that

The government (and school) budgets spends more and more money on technology and
maintenance

Intellectual property—who owns the information?

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Everything becomes free—democratic

Also creates information overload

Requires education to help students handle all of this information, determine its accuracy, its
ownership, its reliability.

Challenges of information society

1. Problem of Sustainability and scale
2. Lack of knowledge
3. Pace of change
4. Changing roles and norms
5. Dominant culture
6. Social implication
7. Projection of our privacy is another extremely challenge to information society
8. Challenge of trusts and confidence
Assignment state 10 importance of information system society

TOPIC FOUR : INFORMATION SYSTEM PLANNING

Information System Planning (ISP) is a structured approach developed by IBM to assist
organizations in establishing a plan to satisfy their short and long
term information requirements
Stage model of Information System planning

1. Strategic planning:
a. Derivation from the organizational plan.
b. Strategic fit with organizational culture.
c. Strategy set transformation.
2. Information requirement analysis:
a. Define underlying organizational requirements.
b. Develop sub system matrix.
c. Define and evaluate information requirements for organizational sub-systems.
3. Resource allocation:
a. Return on investment
b. Charge out
c. Portfolio approach

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 d. Steering committees.
4. Project planning
a. milestones
b. Critical path method
c. Gantt chart

To sum up, The Information Systems Planning is a key process for the success and
competitiveness of companies in present business environment.
Plans explain the structure and content of information system and the way it is developed.
The major aim of Information Systems Planning is to recognize the stages of IS planning in the
organization.
The Process of Development of Information System: A Typical Software Development Life
Cycle
The process of development of information systems in an organization may vary from case to
case but ideally the stages of development can be clearly demarcated. The process of
development of information system involves the following stages:
1. Planning-planning is required as without planning the outcome will be below
expectations. Planning sets the objectives of the system in clear and unambiguous terms so that
the developer may conform to a well laid set of deliverables rather than a high-sounding
statement that may mean little to him. Planning also enables the development process to be
structured so that logical methodology is used rather than working in fits and starts. It ensures
user participation and helps in greater acceptability and a better outcome from the development
process. It leads to a system that is well balanced in both the managerial and technical aspects.
2. Analysis-is an activity of technical representation of a system. Over the years many
methods have been developed of which the structured analysis and object oriented analysis are
most widely used. This step or activity is the first technical representation in abstract terms of the
system.
3. Design-is the stage where the model or representation of an entity or a system is done (in
detail). It is based on the idea that the developer will be able to develop a working system
conforming to all the specifications of the design document which would satisfy the user. ·It is a

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 concept which has been borrowed from other branches in engineering where the blueprint of a
system or entity to be built later is first created on a piece of paper or digitally to help developers
in conceptualization of the system and to understand the specifications of the system.
4. Coding-is the actual stage of writing codes to develop the application software according
to the specifications as set by the design document. The programming done at this stage to build
the system is dictated by the needs of the design specifications. The programmer cannot go
beyond the design document.
5. Testing-is the testing of the system to check if the application is as per the set
specification and to check whether the system will be able to function under actual load of data.
The testing is also done to remove any bugs or errors in the code.
6. Implementation-is the stage when the system is deployed in the organization. This is a
process which often is a difficult one as it involves some customization of the code to fit context
specific information in the system.
Before commencing IS planning, one must also identify the need for new information system.
The above figure gives a flow chart to find out if the existing IS is fulfilling the objectives of the
organization with respect to IS.
Sometimes, an existing IS can be tweaked or redesigned to align it with the changing objectives
and business needs of the organization but sometimes, that become too costly or technically
infeasible, in which case, one has to start the process for a new IS.
The diagram below shows a flowchart that gives us tools to use to understand whether our
existing Information System is relevant for our business operations.

Why you need to align information system plan to organization Plan:

Developing strategy takes time and resources. It requires the time and commitment of some of
the most highly paid and highly experienced people in your organization. So, if your team isn’t

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willing to invest what is needed, I recommend that you don’t do it. Poor planning is often worse
than no planning at all.

So, why do you need align information system? Why take time for planning? There are many
reasons. The following are the reasons for aligning information system to organization plan

1) To set direction and priorities:

First and foremost, you need a strategy because it sets the direction and establishes priorities for
your organization. It defines your organization’s view of success and prioritizes the activities that
will make this view your reality. The strategy will help your people know what they should be
working on, and what they should be working on first.

Without a clearly defined and articulated strategy, you may very well find that your priority
initiatives—the ones that will drive the highest successare being given secondary treatment.

2) To get everyone on the same page:

If you find that you have departments working to achieve different aims, or going in different
directions, you need a strategy.

Once you define your strategic direction, you can get operations, sales, marketing,
administration, manufacturing, and all other departments moving together to achieve the
organization’s goals.

3) To simplify decision-making:

If your leadership team has trouble saying no to new ideas or potential initiatives, you need a
strategy. Why? Your strategy will have already prioritized the activities necessary for success.
Priorities make it easier to say no to distracting initiatives.

4) To drive alignment:

Many organizations have hard-working people putting their best efforts into areas that have little
to no effect on strategic success. They’re essentially majoring in the minors—because their
activities aren’t aligned with the priorities. Your strategy serves as the vehicle for answering the
question, “How can we better align all our resources to maximize our strategic success?”

5) To communicate the message:

Many leaders walk around with a virtual strategy locked in their heads—they know where their
organization needs to be and the key activities that will get it there. Unfortunately, the strategy

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isn’t down on paper and hasn’t been communicated thoroughly. As a result, few people are
acting on it.
When your staff, suppliers, and even customers know where you’re going, you allow even
greater opportunities for people to help you maximize your success in getting there.

Once you recognize the need to plan, you now have the role of becoming the catalyst: for
facilitating the buy-in and commitment of your leadership team and the rest of your organization.
I’ve found that very few executives truly understand how to maximize their role in facilitating
strategy. This chapter is focused on you, the leader of the organization, and on the vital role you
play in facilitating strategy throughout your organization. Let’s get started.

Challenges faced in aligning information system plan to organization plan

Elevating IT Skills and Training as Strategic Assets

Firms need to expand their investments in information technology and skills, both absolutely and
as fraction of overall expenses. A substantial gap remains between the prices of the skills
organizations need and the typical organization’s current willingness or ability to pay. This may
be fundamental problem, stemming in part from the lack of appreciation by organization upper
management of the strategic potential of back-office information systems.

Organization information systems are obviously critical to the business success of mainstream
modern, high-tech banking, and investment firms; yet, in microfinance organizations, IT people
are, often thought of as ‘‘simply a helpdesk for assistance with running desktops.’’

Risk and security

Along with the increased strategic importance of information technologies to organizations

comes increased levels of risk should those systems fail or data security be compromised. Yet,
most organizations appear not to have ongoing risk management planning processes in place.
Thus, another target area for improving the sector IT is in improving risk and security
management. System security may need to be increased in proportion to what is protected. As
bank fund volumes, client numbers, and data volumes grow, system security and reliability (of
individual transactions, personal information, software applications, whole databases, and entire
data networks) should become on par with that expected in retail banking.

Promoting Complementary External Changes

Finally, some of the biggest barriers and highest potential payoff opportunities related to
business information systems are external, beyond the direct control of individual businesses.
However, with growth comes influence.

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Corporate strategy is unknown

A recurring issue seen in previous alignment research is that often corporate strategy is unknown
or, if known, is unclear and/or difficult to adapt. This poses a significant challenge because most
models of alignment presuppose an existing business strategy to which an IS organization can
align itself

Lack of awareness or belief in the importance of alignment

Although there is empirical support for the notion that alignment provides organizational value,
many business managers are unaware of the importance of IT alignment and/or have little belief
that IT can solve important business problems

Lack of industry and business knowledge

It is found that IT alignment was hindered by a lack of knowledge about the organization e.g.
Banking industry (not just skills and knowledge about IS) among banking managers. In
particular, it was found that IS alignment was negatively influenced by the following industry
factors:

(i) when awareness of the banking industry issues was low and
(ii) (ii) When the interaction of different aspects within the corporate strategy was not
well known to managers. Therefore, before managers could use IT solutions to help
solve their banking problems, a deeper knowledge of the banking industry itself was
required.

TOPIC 5: INFORMATION SYSTEM PROJECT MANAGEMENT

Project management system is a composition of several methods, methodology; procedure

and resources to support the project management.

The project management system is therefore a management and procedural model, and a
performance model for the successful project completion in a company

A project management system is a means of managing a project by planning, organizing, and

managing its different required aspects. Depending on the sophistication of the project
management system, it can include:

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  Estimation activities
 Scheduling
 Cost control and budget management
 Resource allocation
 Quality management
 Risk management
 Change control
 Decision-making managing

Project management systems fall into two very broad categories: general software applications
and project management software applications.

General Software Applications

General software applications are software used for a broad variety of tasks, not necessarily
project management related. Examples of general software applications include:

 Spreadsheets
 Word processing
 Graphics editing
 Databases

While general software applications aren't designed specifically for project management, they
can help plan, organize and manage projects. Spreadsheets are the most common manual project
management system. You can create documents that are easy to read and share with the project
team. If needed, the spreadsheet can be password protected for confidentiality.
Additionally, spreadsheets have some capabilities that are helpful in managing a project. You
can create separate tabs for the different aspects of the project. You may have a tab for the
schedule, one for the communication plan, one for identified risks, one for outstanding issues,
and one for the budget. You can easily update each section as required and share the whole
workbook or an individual tab as required. Spreadsheets can also contain formulas and macros
that will automate some functions, making them easier to use.
Using general software applications is a good choice when the project is:

 Short term
 Low risk
 Simple

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Given this criteria, a spreadsheet would work nicely for a project such as updating well-tested
firmware on a small number of servers in a single location. In this project, the risks are minimal
because the firmware has been previously tested, there is a small number of servers to deploy the
firmware, and the impact of failure would be limited because it's a single location. For this, the
schedule would likely be fairly simple and straightforward with only a few resources, and
extensive or complicated coordination and tracking of other project aspects is unlikely.
However, the more complex the project, the more difficulty you will have in managing all the
different aspects of the project. For this, a software application specifically designed for project
management would make your job easier.

Project management tools and techniques

Problems arise in every organization. Such problems as what products/systems to develop,

should capacity be expanded, or should a computer be purchased are just a few of an endless
number of continuing problems about which management must concern itself if the firm is to
survive. These problems and their alternative solutions establish some elements of change
around which the organization must adapt. Projects are generally established to carry out these
changes and someone is always responsible for each project's successful completion

Every project is unique in terms of the problems that arise, the priorities and resources assigned
it, the environment in which it operates, and the project manager's attitude and style used to
guide and control project activities. Therefore, the organizational structure for the project must
be designed to fit within that project's operating constraints. The organizational structure
implemented may not be the same structure used throughout the life cycle of the project due to
changes in priorities, available resource, project personnel, laws, and other contingencies.
Regardless of the project management structure chosen, management must realize that a dynamic
state of equilibrium between limited personnel and financial resources and the objectives of the
project will be necessary if project management is to be successful in their particular
organization. Before touching on the major tools and techniques of project management, let's get
to the bottom of what project management truly is. Later, I will list the benefits that the tools and
techniques of project management bring to the systems analysis process.

Projects

A project is defined as a planned undertaking of related activities to reach an objective that has a
beginning and an end.

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 All projects solve some type of problem, but projects may also be established simply to
determine and define feasible alternative solutions to problems. Seven primary characteristics of
a project include:

1. Objective: Each has a specific goal to reach.

2. Schedule: Point in time in which they must be accomplished.
3. Complexity: Does the technology exist to achieve the project objectives?
4. Size and Nature of Task: Step-by-step plan of action.
5. Resources: Labor, personnel, equipment, materials, facilities, etc.
6. Organizational Structure: The 'meshing' of project requirements into the existing
organization.
7. Information and Control Systems: These must be structured to handle problems through
the typical lines of authority

Project Management

Project Management Be Defined as "…the application of a collection of tools and techniques…

to direct the use of diverse resources toward the accomplishment of a unique, complex, one-time
task within time, cost, and quality constraints. Each task requires a particular mix of these tools
and techniques structured to fit the task environment and life cycle (from conception to
completion) of the task.

Employing project management technologies minimizes the disruption of routine business

activities in many cases by placing under a single command all of the skills, technologies, and
resources needed to realize the project. The skills required depend on each specific project and
the resources available at that time. The greater the amount of adjustments a parent organization
must make to fulfill project objectives, the greater chance exists for project failure. The form of
project management will be unique for every project endeavor and will change throughout the
project.

The project management process typically includes four key phases:

 Initiating the project

 Planning the project
 Executing the project
 Closing the project.

An outline of each phase is provided below.

Initiating the Project

The project management techniques related to the project initiation phase include:

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 1. Establishing the project initiation team. This involves organizing team members to assist
in carrying out the project initiation activities.
2. Establishing a relationship with the customer. The understanding of your customer's
organization will foster a stronger relationship between the two of you.
3. Establishing the project initiation plan. Defines the activities required to organize the
team while working to define the goals and scope of the project.
4. Establishing management procedures. Concerned with developing team communication
and reporting procedures, job assignments and roles, project change procedure, and how
project funding and billing will be handled.
5. Establishing the project management environment and workbook. Focuses on the
collection and organization of the tools that you will use while managing the project.

Planning the Project

The project management techniques related to the project planning phase include:

1. Describing project scope, alternatives, and feasibility. The understanding of the content

and complexity of the project. Some relevant questions that should be answered include:
o What problem/opportunity does the project address?
o What results are to be achieved?
o What needs to be done?
o How will success be measured?
o How will we know when we are finished?
2. Divide the project into tasks. This technique is also known as the work breakdown
structure. This step is done to ensure an easy progression between tasks.
3. Estimating resources and creating a resource plan. This helps to gather and arrange
resources in the most effective manner.
4. Developing a preliminary schedule. In this step, you are to assign time estimates to each
activity in the work breakdown structure. From here, you will be able to create the target
start and end dates for the project.
5. Developing a communication plan. The idea here is to outline the communication
procedures between management, team members, and the customer.
6. Determining project standards and procedures. The specification of how various
deliverables are produced and tested by the project team.
7. Identifying and assessing risk. The goal here is to identify potential sources of risk and
the consequences of those risks.
8. Creating a preliminary budget. The budget should summarize the planned expenses and
revenues related to the project.
9. Developing a statement of work. This document will list the work to be done and the
expected outcome of the project.

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 10. Setting a baseline project plan. This should provide an estimate of the project's tasks and
resource requirements.

Executing the Project

The project management techniques related to the project execution phase include:

1. Executing the baseline project plan. The job of the project manager is to initiate the
execution of project activities, acquire and assign resources, orient and train new team
members, keep the project on schedule, and assure the quality of project deliverables.
2. Monitoring project progress against the baseline project plan. Using Gantt and PERT
charts, which will be discussed in detail further on in this paper, can assist the project
manager in doing this.
3. Managing changes to the baseline project plan.
4. Maintaining the project workbook. Maintaining complete records of all project events is
necessary. The project workbook is the primary source of information for producing all
project reports.
5. Communicating the project status. This means that the entire project plan should be
shared with the entire project 2team and any revisions to the plan should be
communicated to all interested parties so that everyone understands how the plan is
evolving.

Closing Down the Project

The project management techniques related to the project closedown phase include:

1. Closing down the project. In this stage, it is important to notify all interested parties of
the completion of the project. Also, all project documentation and records should be
finalized so that the final review of the project can be conducted.
2. Conducting post project reviews. This is done to determine the strengths and weaknesses
of project deliverables, the processes used to create them, and the project management
process.
3. Closing the customer contract. The final activity is to ensure that all contractual terms of
the project have been met.

The techniques listed above in the four key phases of project management enable a project team
to:

 Link project goals and objectives to stakeholder needs.

 Focus on customer needs.
 Build high-performance project teams.
 Work across functional boundaries.
 Develop work breakdown structures.

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  Estimate project costs and schedules.
 Meet time constraints.
 Calculate risks.
 Establish a dependable project control and monitoring system.

Tools

Project management is a challenging task with many complex responsibilities. Fortunately, there
are many tools available to assist with accomplishing the tasks and executing the responsibilities.
Some require a computer with supporting software, while others can be used manually.

Project managers should choose a project management tool that best suits their management
style. No one tool addresses all project management needs.

Program Evaluation Review Technique (PERT) and Gantt Charts are two of the most commonly
used project management tools and are described below. Both of these project management tools
can be produced manually or with commercially available project management software.

PERT is a planning and control tool used for defining and controlling the tasks necessary to
complete a project. PERT charts and Critical Path Method (CPM) charts are often used
interchangeably; the only difference is how task times are computed. Both charts display the
total project with all scheduled tasks shown in sequence. The displayed tasks show which ones
are in parallel, those tasks that can be performed at the same time. A graphic representation
called a "Project Network" or "CPM Diagram" is used to portray graphically the
interrelationships of the elements of a project and to show the order in which the activities must
be performed.

PERT planning involves the following steps

1. Identify the specific activities and milestones. The activities are the tasks of the project.
The milestones are the events that mark the beginning and the end of one or more
activities.
2. Determine the proper sequence of activities. This step may be combined with #1 above
since the activity sequence is evident for some tasks. Other tasks may require some
analysis to determine the exact order in which they should be performed.

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 3. Construct a network diagram. Using the activity sequence information, a network
diagram can be drawn showing the sequence of the successive and parallel activities.
Arrowed lines represent the activities and circles or "bubbles" represent milestones.
4. Estimate the time required for each activity. Weeks are a commonly used unit of time for
activity completion, but any consistent unit of time can be used. A distinguishing feature
of PERT is its ability to deal with uncertainty in activity completion times. For each
activity, the model usually includes three time estimates:
o Optimistic time - the shortest time in which the activity can be completed.
o Most likely time - the completion time having the highest probability.
o Pessimistic time - the longest time that an activity may take.

From this, the expected time for each activity can be calculated using the following
weighted average:

Expected Time = (Optimistic + 4 x Most Likely + Pessimistic) / 6

This helps to bias time estimates away from the unrealistically short timescales normally
assumed.

5. Determine the critical path. The critical path is determined by adding the times for the
activities in each sequence and determining the longest path in the project. The critical
path determines the total calendar time required for the project. The amount of time that a
non-critical path activity can be delayed without delaying the project is referred to as
slack time.

If the critical path is not immediately obvious, it may be helpful to determine the
following four times for each activity:

o ES - Earliest Start time

o EF - Earliest Finish time
o LS - Latest Start time
o LF - Latest Finish time

These times are calculated using the expected time for the relevant activities. The earliest start
and finish times of each activity are determined by working forward through the network and
determining the earliest time at which an activity can start and finish considering its
predecessor activities. The latest start and finish times are the latest times that an activity can
start and finish without delaying the project. LS and LF are found by working backward
through the network. The difference in the latest and earliest finish of each activity is that
activity's slack. The critical path then is the path through the network in which none of the
activities have slack.

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The variance in the project completion time can be calculated by summing the variances in the
completion times of the activities in the critical path. Given this variance, one can calculate the
probability that the project will be completed by a certain date assuming a normal probability
distribution for the critical path. The normal distribution assumption holds if the number of
activities in the path is large enough for the central limit theorem to be applied.

6. Update the PERT chart as the project progresses. As the project unfolds, the estimated
times can be replaced with actual times. In cases where there are delays, additional
resources may be needed to stay on schedule and the PERT chart may be modified to
reflect the new situation. An example of a PERT chart is provided below:

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Benefits to using a PERT chart or the Critical Path Method include:

 Improved planning and scheduling of activities.

 Improved forecasting of resource requirements.
 Identification of repetitive planning patterns which can be followed in other projects, thus
simplifying the planning process.
 Ability to see and thus reschedule activities to reflect inter project dependencies and
resource limitations following know priority rules.
 It also provides the following: expected project completion time, probability of
completion before a specified date, the critical path activities that impact completion
time, the activities that have slack time and that can lend resources to critical path
activities, and activity start and end dates.

Gantt charts are used to show calendar time task assignments in days, weeks or months. The tool
uses graphic representations to show start, elapsed, and completion times of each task within a
project. Gantt charts are ideal for tracking progress. The number of days actually required to
complete a task that reaches a milestone can be compared with the planned or estimated number.
The actual workdays, from actual start to actual finish, are plotted below the scheduled days.
This information helps target potential timeline slippage or failure points. These charts serve as a
valuable budgeting tool and can show dollars allocated versus dollars spent.

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To draw up a Gantt chart, follow these steps

1. List all activities in the plan. For each task, show the earliest start date, estimated length
of time it will take, and whether it is parallel or sequential. If tasks are sequential, show
which stages they depend on.
2. Head up graph paper with the days or weeks through completion.
3. Plot tasks onto graph paper. Show each task starting on the earliest possible date. Draw it
as a bar, with the length of the bar being the length of the task. Above the task bars, mark
the time taken to complete them.
4. Schedule activities. Schedule them in such a way that sequential actions are carried out in
the required sequence. Ensure that dependent activities do not start until the activities
they depend on have been completed. Where possible, schedule parallel tasks so that they
do not interfere with sequential actions on the critical path. While scheduling, ensure that
you make best use of the resources you have available, and do not over-commit
resources. Also, allow some slack time in the schedule for holdups, overruns, failures,
etc.
5. Presenting the analysis. In the final version of your Gantt chart, combine your draft
analysis (#3 above) with your scheduling and analysis of resources (#4 above). This chart
will show when you anticipate that jobs should start and finish. An example of a Gantt
chart is provided below:

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Benefits of using a Gantt chart include:

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  Gives an easy to understand visual display of the scheduled time of a task or activity.
 Makes it easy to develop "what if" scenarios.
 Enables better project control by promoting clearer communication.
 Becomes a tool for negotiations.
 Shows the actual progress against the planned schedule.
 Can report results at appropriate levels.
 Allows comparison of multiple projects to determine risk or resource allocation.
 Rewards the project manager with more visibility and control over the project.

The Future

Project management tools have evolved from simple spreadsheet products to sophisticated, Web-
based project information portals. The obvious trend in project management software, as with
almost everything in information technology, is a move toward Web-based systems. Most project
management tools can be accessed via browsers and those that do not currently have this
capability are moving in that direction. One product that allows users to take non-Web-based
project management tools and to then bring the data to a Web browser is mesa Vista from Mesa
Systems Guild, Warwick, R.I. The product acts as a portal development tool that allows firms to
view information from products such as Microsoft Project over the Web. These project
management portals are becoming more common as the collaboration capabilities of project
management tools improve

Another trend is the move toward hosted project management applications. For example, users
can outsource project management to product/service offerings such as on Project.com or from
Project.com. Washington D.C. onProject.com is an Internet workspace that allows users to share
and manage information associated with projects and their related tasks.

Project management tools continue to evolve in terms of capabilities and user interface. The
general direction is toward more integrated process and knowledge management systems, and
user interfaces with a "Web" look. Project management tools are gradually becoming integrated
project information portals with capabilities far beyond simple project tracking and reporting.

As the sophistication of these products continues to grow, however, so too does their complexity.
It is important for project management software vendors to keep things simple and easy to use.
Project management tools should not become the focus of a project manager's life or add time to
project activities. If a project manager has to spend too much time learning a product's features,
their ability to actively manage the project process diminishes, totally defeating the purpose of
the tool.

Signs of a failing information system project

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1. Milestones Aren’t Met
When you first plan out your project, you set milestones. If the milestones aren’t being met, it’s
obvious that your project is falling behind. You need to figure out ways to get your project back
on track without causing more bugs.

2. Team Disinterest
Unfortunately, due to conflicting goals, a significant portion of the management/team is
oftentimes uncommitted to the project at hand. This lack of commitment (signaled by little
attention and participation at meetings) ensures that the project lacks the proper resources,
resources that will allow the project to meet goals and ultimately succeed. In order to combat
team disinterest, you need to make sure that everybody is on board with the direction of the
project as well as the long-term goals it supports. Sometimes, this can be cleared up by voicing
the goals and priorities and their correlating strengths and weaknesses.

3. Poor Communication
There’s a saying that goes, “If they’re communicating, they’re collaborating.” With this logic,
it’s no surprise that a project is likely to fail without proper communication.When upper-level
managers are kept in the dark about deadlines that weren’t met, and the low-men-and-women on
the totem pole aren’t sure what’s expected of them, a project will fail. It won’t be on time, and it
will fail to meet management’s expectations.

If the people in your project aren’t communicating, it’s a sign that your project may be on its
way to failure. Communicate with everyone who is involved with the project. Only by clearly
stating expectations and sharing bad news will a project be able to stay on track.

4. Inconsistent Management

If those leading the projects keep changing their tune, odds are a project is going to fail. If it
keeps changing course, how can it possibly meet its goals? It can’t. If you’re in a leadership
position, remain as consistent as possible. Otherwise, your project is likely to fail.

 5. Lots of Overtime

Is your team suddenly working a lot of overtime? If so, this could be a sign that the project is
running behind. Oftentimes, Project Managers will have the teamwork overtime, as it is a fast fix
that draws less attention than if they were to say that there is a problem.

 6. Your Team Gets Pulled On To Other Projects

In this case, this isn’t a sign that your project is failing – though your project will start failing if
people continue to steal your resources. While loaning your team members out once in a while

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doesn’t seem like a big deal, the time and resources diverted can add up. If your resources
continue to get diverted your project will shortly be in trouble, so be aware of this.

 7. Lack of Metrics

If your team doesn’t have any clear metrics, your project could be in trouble. You need these
analytics to keep your project on schedule, which ultimately keeps it on its path to success.

If you don’t have metrics, you have no way of knowing whether or not the project is failing.
You’ll just have to take people’s word for it. You know that you don’t want to do that.

 8. Disjointed Team

Not every team is a big old happy family. Loyalties or differences in techniques/beliefs can cause
your team to break down into competing factions, or even worse, into a free-for-all. If this
happens, your project will be in trouble as competition and a lack of communication will keep
the project from being on time.

 9. More Issues Added Than Resolved

With any project, there are going to be issues. However, if you are adding issues to the list faster
than they are being resolved, your project is on the fast track to going nowhere. While stopping a
project completely to resolve the issues may not be the direction you want to go, it may be the
only way to get the project back on track.

 10. Project Management and Business Management Aren’t On the Same Page

While project management and business management may initially collaborate on a project, that
initial agreement may not last long. If there is any disagreement, the project may be in danger of
being terminated, as business management tends to win out over IT.

 Causes of IS project failure

A project becomes a failure when it does not deliver what was required within the agreed-upon
budget and time. However, in most cases, the stakeholders decide if the project was a success or a
failure based on their judgment and satisfaction with the outcome.

Some projects are also considered a failure if they don’t meet the financial forecast or fails to meet
the ROI target.

Reasonswhyprojectsfailandhowtoavoidit
Here’s a look at some of the causes of project failure and how you can avoid them.

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1. Lack of resource planning
We plan timelines. We plan meetings. We plan structure and themes and interfaces. But sometimes,
in the midst of all that project planning, we forget to plan for our resources. It’s a huge contributor
to why projects fail. Project management involves resource management, often taking other projects
into consideration. Most of us know that financial resource planning is important.

2. Unclear Goals and Objectives

One way to almost guarantee project failure is to begin work without clear project objectives and
goals. After all, there’s no way to know whether you’ve succeeded when you aren’t completely sure
what you’re trying to accomplish.

How to prevent it:

Several popular frameworks for goal setting, such as SMART goals and CLEAR goals are there but
the essence is that your goals must be measurable and realistic. Don’t just say you want to “lose
weight,” say you want to lose fifteen pounds in the next four months. That’s both measurable and
realistic. The projects you manage are more complex than that, which is why it’s even more critical
to define your objectives clearly.

3. Lack of project visibility

No matter how well-planned your project is, lack of visibility can lead quickly to failure. It’s
essential to create a system that provides visibility, not just for the project manager but for all team
members. Visibility includes project transparency of task status, clear communication, and good
document management.

How to prevent it:

When everyone knows the status of each project task, they can assist or adjust accordingly. It
encourages proactive work and problem-solving. Document management doesn’t have to be
complicated. In fact, having a centralized, digital storage place for all project documents makes your
job as a project manager easier as well as promoting visibility.

4. Communication gaps
It should go without saying, but communication in project management is the key. The tools your
team uses to communicate should be explained and implemented from the outset of your project.

How to prevent it:

Whether it’s email, text messaging, a chat service, or some combination of things, make sure
everyone on the team understands what’s expected and can use the technology you’ve selected.
Beyond the method of communication, make sure to set clear expectations and guidelines on the
kinds of information that need to be communicated.

5. Scope creep
It seems so innocent at first. A simple customer request to add an item here, a brilliant idea to
expand a service there, and before you know it, your project scope has outgrown and your team is
over-extended. Scope creep happens when either

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How to prevent it:
The problem with scope creep is that it often contributes to project failure. You haven’t budgeted
the time or resources necessary to complete the extra tasks, so what might have been a smashing
success ends up a frustrating failure.

6. Unrealistic expectations
Sometimes disguised as dogged optimism, unrealistic expectations have destroyed many projects.
As a project manager, it’s absolutely essential to gain a clear picture of what your team can
accomplish and in what time frame. Once you have aligned your expectations with reality, you must
communicate them to the customer and often to your bosses.

How to prevent it:

With realistic expectations in place and understood by all the project stakeholders, your team has a
much better chance at successful project completion.

N/BHowKissflowProjectcanhelpyouavoidprojectfailure
While the pitfalls of project failure have been around for ages, there are new solutions thanks to
technology. Kissflow Project is a project management software for non-project management. Its
digital workspace is intuitive and enjoyable, a tool your whole team can utilize and appreciate. With
beautiful visual tools and built-in communication channels, Kissflow Project can help you make
your next project a success.

Control Measure and techniques for of resquing a failing IS project

1. Manage the goal. In avoiding project trouble the phrase “a stitch in time saves nine” has
never been more correct. Manage scope (do not try to control it), document the decisions (never
rely on an understanding), and give users what they need (rather than what they want).
Delivering to the original scope, schedule, and budget is far from a guarantee of a successful
project.  It is essential to work with the customer and ensure the project delivers value.

2. Educate the Customer: Nothing is free. There are three parameters that control a project—
scope, schedule, and budget. Trying to edict all three is the definition of a failure waiting to
happen. Only two of these attributes may be set; the other is derived. Educate the customer (and
maybe some corporate executive) on these constraints and how they work.

3. Beware of Technology. Technology makes almost anything more efficient. However, it is not

the answer, it is only a tool.  Before applying it, have the right people and the proper processes in
place; otherwise, trouble will come just as before—only faster and much more efficiently.

4. Select the Correct Methodology. “We have always done it that way” is the cry of someone
without enough drive or imagination to build new, lean, and innovative processes.  Since project
are temporary endeavors that create a unique product or service how can one process work for all
projects? Match the methodology to the product or service being built.

5. Negotiate the Solution. Negotiation is equal parts art and science. However, applying a
process will help teach the art. The key to win-win negotiation is striving to build value for both

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sides of the negotiation. Achieve this by knowing both parties’ true needs and wants and never
negotiating over just one item.  For instance, one strategy to stretch out a deadline with a client
would be to add one more item to the negotiation that will not make a huge impact to delivery.
For instance, adding an addition low cost product (maybe it has already been designed or built)
to the negotiation may provide them enough value to soften the blow of the delay.

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