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Page 1: KopyKitab · CHIPS Clearing House Inter-bank Payment System CIS Computer based Information System xi CIM Computer Integrated Manufactur-ing CIO Chief Information Officer CNC Computerized

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Page 2: KopyKitab · CHIPS Clearing House Inter-bank Payment System CIS Computer based Information System xi CIM Computer Integrated Manufactur-ing CIO Chief Information Officer CNC Computerized

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MANAGEMENT INFORMATION SYSTEMSA Concise Study

Second Edition

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MANAGEMENTINFORMATION SYSTEMS

A Concise Study

(Second Edition)

S.A. KELKARAdjunct Professor,

Department of Computer Science and EngineeringIndian Institute of Technology

Mumbai

New Delhi-1100012008

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MANAGEMENT INFORMATION SYSTEMS A Concise Study (2nd Edition)S.A. Kelkar

© 2008 by PHI Learning Private Limited, New Delhi. All rights reserved. No part of this book may bereproduced in any form, by mimeograph or any other means, without permission in writing from thepublisher.

ISBN-978-81-203-3765-7

The export rights of this book are vested solely with the publisher.

Published by Asoke K. Ghosh, PHI Learning Private Limited, M-97, Connaught Circus,New Delhi-110001 and Printed by

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Preface to the First Edition vii

Preface ix

Abbreviations xi

Unit One INFORMATION SYSTEMS BASICS

1. Managing in 21st Century ...................................................................................................... 1

2. Information, Systems, and IS ............................................................................................... 27

3. Classification of IS ................................................................................................................. 45

4. E-Business, CRM, ERP, and SCM ...................................................................................... 79

Unit Two MANAGING WITH INFORMATION

5. Strategic Planning ................................................................................................................ 117

6. Justification for IT/IS ............................................................................................................ 145

7. IS for Decision Support ...................................................................................................... 167

8. Quality and Privacy Issues ................................................................................................. 195

Unit Three MANAGING INFORMATION RESOURCES

9. Information Resources Management ................................................................................. 219

10. Strategic Planning for IS Function ..................................................................................... 247

11. Security, Control and Audit ................................................................................................. 279

Suggested Reading .................................................................................................................... 301

v

CONTENTS

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With the growth of Internet, the availability of information on any subject has increasedmanifold. The problem lies in selecting what to read?, how much to read?, and howto retain what you read?. This book is aimed at partly answering these questions byproviding just the adequate amount of material in concise form.

The text is organized in three parts: Information Basics, Managing with Information,and Managing Information Resources. Some ‘basic’ material on related topics, such asIT, Software Development, Quantitative Techniques, Theory of Organizations, andBehavioural Sciences, had to be omitted from this text in order to keep it concise. Thismaterial on manage-ment information systems is presented in the form of a concisestudy that makes it usable by students and professionals alike. Motivation for thisbook stems from an observation that the readers first read a book in narrative formand then abstract it for a variety of reasons. This book is aimed at doing away with thisrework. It is designed to project the conceptual framework across to the readers. Carehas been taken to ensure that (except in a few cases) no concept, or an idea, or anissue stretches beyond one page.

This text is well suited for teaching an academic course (of one semester) onMIS, or for conducting an equivalent training programme for professionals. Althoughno book can be a substitute for the wide and varied experience of an instructor, thisbook will help the instructors to concentrate on teaching rather than worrying about thestudents’ reading material. In its present form, the book is equally useful to any busyprofessional who wishes to grasp the essentials without attending a formal instructionalcourse.

S.A. KELKAR

vii

PREFACE TO THE FIRSTEDITION

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Basic structure of this book remains the same in its second edition, though all thechapters have been revamped. Following chapters from the first edition have beenmerged and repositioned: Impact of IT with Managing in 21st Century; IS for KnowledgeWork with IS for Decision Support; Information Needs for Strategic Planning withStrategic Planning and IS; and IT/IS facilities and Operations with Information ResourcesManagement. A new chapter has been added on e-business, CRM, ERP, and SCM.

Happy reading!

S.A. KELKAR

ix

PREFACE

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4GL 4th Generation LanguageA/C AccountAI Artificial IntelligenceASP Applications Service Provider

b2b Business To BusinessB2B Business To Businessb2c Business To CustomerB2C Business To CustomerBEST Bombay Electric Supply and

TransportBPO Business Process OutsourcingBPR Business Process Reengineering

C3I Command, Control, Communi-cation and Intelligence

CAD Computer Assisted DesignCAD Computer Assisted DraftingCAM Computer Assisted ManufacturingCASE Computer Assisted Software

EngineeringCBT Computer Based TrainingCEO Chief Executive OfficerCHIPS Clearing House Inter-bank

Payment SystemCIS Computer based Information

System

xi

CIM Computer Integrated Manufactur-ing

CIO Chief Information OfficerCNC Computerized Numerically Cont-

rolled machineCPM Critical Path MethodCRM Customer Relationship Manage-

mentCSF Critical Success FactorCSS Control Support SystemCTO Chief Technology Officer

DBMS DataBase Management SystemDES Data Encryption StandardDM Data MiningDMZ DeMiliterized ZoneDP Data ProcessingDPR Disaster Preparedness and

RecoveryDSS Decision Support SystemsDW Data WarehousingDW/DM Data Warehousing and Data

Mining

E-business Electronic BusinessE-comm Electronic CommerceEDI Electronic Document Interchange

ABBREVIATIONS

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xii Abbreviations

EDP Electronic Data ProcessingEFT Electronic Funds TransferEIP Enterprise Information PortalEIS Executive Information SystemERP Enterprise Resources PlanningESS Executive Support SystemFAQ Frequently Asked QuestionFDI Foreign Direct Investment

GIS Geographical Information System

HR Human ResourcesHRD Human Resources DevelopmentHRM Human Resources ManagementHSS Health Sciences and ServicesHTML HyperText Markup LanguageHW Hardware

IO Input/OutputI/O Input/OutputIRM Information Resources Manage-

mentIRR Internal Rate of ReturnIS Information SystemsIS&T Information Systems And Tech-

nologyIS/IT Information Systems/Information

TechnologyISO International Standards

OrganizationISP Internet Service ProviderIT Information TechnologyITES Information Technology Enabled

ServicesIT/IS Information Technology/Infor-

mation SystemsITPM Information Technology Project

Management

JIT Just-In-Time inventory

LAN Local Area NetworkLTA Leave Travel Allovance

MBA Master of Business Administration

MES Manufacturing Execution SystemMICR Magnetic Ink Character Reco-

gnitionMIPS Millions of Instructions executed

Per SecondMIS Management Information SystemMNC Multi-National CompanyMOLAP Multidimensional OnLine Analytical

ProcessingMRP Maximum Retail Price

NIC Network Interface CardNPV Net Present ValueNPW Net Present Worth

OCR Optical Character RecognitionOEM Original Equipment ManufacturerOLAP OnLine Analytical ProcessingOR Operations ResearchOS Operating System

PC Personal ComputerPDM Precedence Diagramming MethodsPERT Project Evaluation and Review

TechniquePO Purchase OrderPPC Production Planning and ControlPSS Planning Support System

QA Quality AssuranceQC Quality ControlQMS Quality Management Systems

R&D Research and DevelopmentRDBMS Relational DataBase Manage-ment

SystemROI Return On InvestmentROLAP Relational OnLine Analytical

Processing

SBU STrategic Business UnitSCM Supply Chain ManagementSIS Strategic Information SystemSPSS Statistical Package for Social

Sciences

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Abbreviations xiii

SQL Structured Query LanguageSW SoftwareSWOT Strength Weakness Opportunity

Threat

TISS Tata Institute of Social SciencesTQM Total Quality ManagementTV Television

WAN Wide Area Network

WBS Work Breakdown StructureWIP Work-In-Progress inventoryWWW World Wide Web

XML Extensible Markup Language

Y2K Year 2000 (date problem)YTD Year-To-Date

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Management Information Systems: AConcise Study

Publisher : PHI Learning ISBN : 9788120337657 Author : S. A. Kelkar

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