Management Information Systems - IGNOU PDF

MMPO-004 Management School of Management Studies Information Systems BLOCK 1 OVERVIEW OF MANAGEMENT INFORMATION SYSTEM 7 BLOCK 2 BUSINESS INTELLIGENCE & DECISION MAKING 49 BLOCK 3 RELATIONAL DATABASE MANAGEMENT SY...

MMPO-004 Management School of Management Studies Information Systems BLOCK 1 OVERVIEW OF MANAGEMENT INFORMATION SYSTEM 7 BLOCK 2 BUSINESS INTELLIGENCE & DECISION MAKING 49 BLOCK 3 RELATIONAL DATABASE MANAGEMENT SYSTEM 149 BLOCK 4 EMERGING TECHNOLOGIES FORM BUSINESS 199 COURSE DESIGN AND PREPARATION TEAM Prof. K. Ravi Sankar Prof. Sourbhi Chaturvedi Director, School of Management Studies, Faculty of Management Studies, IGNOU, New Delhi Ganpat University, Mehsana, Gujarat Prof. Deepak Jaroliya* Prestige Institute of Management and Research, Dr. P. Mary Jeyanthi* Indore Associate Professor - Business Analytics Jaipuria Institute of Management, Dr.Shaheen* Jaipur Associate Professor - IT & Analytics Institute of Public Enterprise Prof. Anurag Saxena Hyderabad SOMS, IGNOU New Delhi Course Coordinator and Editor Dr. Venkataiah Chittipaka Associate Professor School of Management Studies IGNOU, New Delhi Acknowledgement: The persons marked with (*) were the original contributors, and the profiles are as they were on the initial print date. PRINT PRODUCTION Mr. Tilak Raj Assistant Registrar MPDD, IGNOU, New Delhi May 2023 © Indira Gandhi National Open University, 2023 ISBN: All rights reserved. No part of this work may be reproduced in any form, by mimeograph or any other means, without permission in writing from the Indira Gandhi National Open University. Further information on the Indira Gandhi National Open University courses may be obtained from the University’s Office at Maidan Garhi, New Delhi – 110 068 Printed and published on behalf of the Indira Gandhi National Open University, New Delhi, by the Registrar, MPDD, IGNOU. Laser typeset by Tessa Media & Computers, C-206, A.F.E-II, Jamia Nagar, New Delhi -110025  Content BLOCK 1 OVERVIEW OF MANAGEMENT INFORMATION 7 SYSTEM Unit 1 Introduction to Information Systems 9 Unit 2 Introduction to MIS 21 Unit 3 System Development Life Cycle (SDLC) 33 BLOCK 2 BUSINESS INTELLIGENCE & DECISION MAKING 49 Unit 4 Introduction to Business Intelligence 51 Unit 5 Information & Decision Making 76 Unit 6 Spread Sheet Analysis 93 BLOCK 3 RELATIONAL DATABASE MANAGEMENT 149 SYSTEM (RDBMS) Unit 7 Organizing Data 151 Unit 8 Structured Query Language (SQL) 168 Unit 9 DBMS Implementation and Future Trends 185 BLOCK 4 EMERGING TECHNOLOGIES FOR BUSINESS 199 Unit 10 Cloud Computing 201 Unit 11 Big Data 222 Unit 12 ERP 240 Unit 13 Applications of IOT, AI & VR 258 Unit 14 Block Chain 305 COURSE INTRODUCTION The contents of this course are practical, relevant, and current. All the topics discussed in this course are simple and intuitive. This course may help the learners to improve their knowledge and skills in management information systems. This course consists of four blocks spread over 14 units. Block 1 is an overview of the Management Information System consisting of three units. Unit 1 Introduction to Information Systems discusses the most important aspects of information systems every business organization, people and society should understand what an information system is and how it can be used to bring a competitive advantage. In Unit 2, Introduction to MIS is introduced. In this unit, the learners may realise the importance of Management Information Systems (MIS) by understanding an MIS can have a wide range of functions, from providing basic reports to conducting complex data analysis and decision-making support. It involves the use of hardware like computers and servers, and software like databases and reporting tools. Unit 3 System Development Life Cycle (SDLC) discusses the importance of SDLC in MIS. In this unit, the learners may understand that the system development life cycle (SDLC) is a complex project management model that includes 7 stages: planning, analysis, design, development, testing, implementation, and maintenance. It should be tailored to the needs of the project, team, and stakeholders involved in the process. Block 2 is on Business Intelligence & Decision Making and consists of three units. Unit 4 Introduction to Business Intelligence, this unit provides a thorough overview of Business Intelligence and its significance in modern business operations. It focuses on the key concepts, strategies, and technologies involved in business intelligence and explains how they can be used to gain a competitive advantage. Unit 5 Information & Decision Making, focuses on how to effectively manage data and make informed decisions in a variety of situations. It also discusses how important information and decision-making are in today's society, and how these skills are needed in fields ranging from healthcare to finance to education. Unit 6 Spread Sheet Analysis discusses how to navigate, input data, use formulas and functions, format data, and use built-in features of spreadsheet software like Excel. It also discusses, how to analyse and organise data and understand the essential functions and formulas in Excel. Further, it focuses on how to create charts, graphs, and other visualisations to help communicate insights and trends in the data. Block 3 is on Relational Database Management System (RDBMS) consisting of three units. In Unit 7, we discussed Organizing Data. In this unit, we discussed the nature of quantitative and qualitative data, the various methods of representing the quantified data graphically etc. Unit 8 Structured Query Language (SQL) discusses query languages, which allow easy access to the information stored in the database. This unit also illustrates the syntax used in SQL to run queries on single tables as well as multiple tables. Embedding SQL statements in a host programming language for batch processes is also discussed. Unit 9 DBMS Implementation and Future Trends, this unit deals with the real-life managerial issues of product selection and acquisition of emerging standards, and human aspects of organizational resistance to DBMS tools. Block 4 is on Emerging Technologies for Business consisting of five units. Unit 10 Cloud Computing, this unit focuses on understanding cloud computing architecture and comprehending the platforms for the development of cloud applications and listing the applications of cloud services. Also discusses the features and associated risks of different cloud deployment and service models. Unit 11 Big Data unit deals with the concept of Big Data, its characteristics, and the challenges associated with it. Also, familiarizing with the Hadoop ecosystem and its components. Further, it also deals with the basics of machine learning algorithms for Big Data analytics. Unit 12 ERP focuses on understanding the basics of ERP concepts, principles, components, and architecture of ERP systems, as well as their benefits and limitations. further, it also focuses on how to implement and configure an ERP system and manage ERP projects to optimize business processes using ERP systems. Unit 13 Applications of IoT, AI & VR, focuses on understanding the architecture of the Internet of Things and illustrates the real-time IoT applications to make the smart world. Further, it discusses AI history, explores its evolution, and contributes to comprehending what led to the AI impacts we have in society today. Lastly, this Unit 14 Block Chain discusses the fundamental concepts of blockchain technology, including decentralized architecture, consensus mechanisms, and cryptographic algorithms. Also analyses the real-world use cases of blockchain, such as cryptocurrencies, supply chain management, digital identity, and smart contracts. Further, it also discusses the economic and social impact of blockchain technology.  BLOCK 1 OVERVIEW OF MANAGEMENT INFORMATION SYSTEM  Introduction to UNIT 1 INTRODUCTION TO Information System INFORMATION SYSTEM Objectives After studying this unit, you will be able to: Define what an information system is by identifying its major components. Understand the information subsystems which could be defined within a typical organization. Differentiate between various types and levels of information systems. Structure 1.1 Introduction 1.2 Defining Information System 1.3 Types of Information 1.4 Dimensions of information system: 1.5 Operating Elements of Information Systems: 1.6 Types of Information Systems: 1.7 The Components of Information Systems 1.8 Major processing functions in information systems: 1.9 How to Apply Information Systems in Business? 1.10 Facts of information systems 1.11 Summary 1.12 Self-Assessment Exercises 1.13 Further Readings 1.1 INTRODUCTION Information systems (IS) are critical to the operation of modern organizations. They are interconnected networks of hardware, software, data, people, and procedures designed to collect, process, store, and disseminate information to aid in decision-making, coordination, and control. The rise of digital technologies, as well as the increased use of computers and the internet, has altered how organizations operate and interact with their stakeholders. In a rapidly changing business environment, information systems have become critical tools for organizations of all sizes and types to remain competitive, efficient, and effective. They assist organizations in achieving their objectives by enhancing internal operations, facilitating communication and collaboration, and assisting in strategic decision-making. Information systems study is multidisciplinary, combining elements of computer science, management, and information technology. 9 Overview of Management In today's business, information systems are critical because they allow Information System organizations to collect, store, and process data to make informed decisions. These systems can be used to improve internal and external communication and collaboration, as well as gain insights into customer behavior and market trends. Furthermore, by providing real-time data and analysis, they can help businesses become more agile, responsive to market changes, and competitive. Information systems are critical for businesses to operate effectively and efficiently in today's fast-paced and data-driven environment. The combination of hardware, software, data, people, and procedures that organizations use to collect, process, store, and disseminate information is referred to as an information system. These systems aid in decision-making, coordination, and control, and they assist organizations in achieving their objectives. Simple manual systems to complex computer-based systems that automate many business processes are examples of information systems. Activity A Write down examples of an information system that you know in real-time or in your real life. ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… 1.2 DEFINING INFORMATION SYSTEM “An information system is a set of interrelated components that work together to collect, process, store, and breakdown the information to support decision making.” “Information system (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.” “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.” These definitions focus on two distinct aspects of information systems: the components that comprise an information system and their role in an organization. 10  Introduction to 1.3 TYPES OF INFORMATION Information System Internal information and external information are the two broad categories of information. The illustration below depicts the scope of internal and external information in the context of business organizations. Internal Information: Internal Information is defined as information generated by the organization's operations at various management levels in various functional areas. Internal information is summarized and processed as it progresses from the lowest to the highest levels of management. Internal information is always about the organization's various operational units. Production figures, sales figures, personnel, account, and material information are all examples of internal information. This type of information is typically consumed by middle and junior management levels. However, top-level management consumes summarized internal in format on. Fig 1.1: Types of information External Information: External information is typically gathered from the business organization's surroundings. External information is defined as information that comes from outside the organization and has an impact on its performance. External information includes government policies, competition, economic status, and international market conditions. External information is typically required by top management cadres and is useful in developing long-term policy plans for organizations. 1.4 DIMENSIONS OF INFORMATION SYSTEM The dimensions of information systems can be viewed as a framework for analyzing and designing information systems. They are: Organizational Dimension: Organizations include information systems. The standard operating procedure and culture of an organization will be embedded in an information system. Functional specialities, business processes, culture, and political interest groups are all part of this. This refers to the people, policies, and procedures that govern how an organization's information system is used and managed. This refers to how the information system fits into the organizational structure and how it supports the organization's goals and objectives. A sales management system, for example, is part of the organizational dimension 11 Overview of Management because it helps to improve sales performance. Information System Management Dimension: Managers perceive environmental business challenges. Information systems provide managers with the tools and information they need to allocate, coordinate, and monitor their work, make decisions, create new products and services, and make long-term strategic decisions. The policies, procedures, and rules that govern the use of the information system are referred to as this. The management dimension includes things like passwords, backup procedures, and data security policies. Technology Dimension: Management makes use of technology to carry out their duties. Computer hardware/software, data management technology and networking/telecom technology are all part of it. It is one of many tools used by managers to deal with change. This includes the hardware, software, data, and network components that comprise an information system's technical infrastructure. A server, a personal computer, and database software, for example, are all examples of technical dimensions. Strategic Dimension: This entails aligning information systems with an organization's overall goals and strategies. This includes decision-making processes as well as the impact of information systems on the competitiveness and success of the organization. User dimension: This refers to the information system's end users and how they interact with it. An e-commerce website, for example, is part of the user dimension because it allows customers to purchase goods and services. Each of these dimensions is interconnected and has an impact on an information system's overall performance and effectiveness. To ensure that an information system meets the needs of the organization and its users, it should take into account all three dimensions. 1.5 OPERATING ELEMENTS OF INFORMATION SYSTEMS The components that allow an information system to function effectively and efficiently are known as its operating elements. They are as follows: Hardware: A system's physical components, such as computer equipment, peripheral devices, and other supporting equipment. Software: A set of instructions that instructs the hardware on what to do. System software (such as the operating system) and application software are both included. Data: Information that the system stores and processes. It can include 12 both structured (like a database) and unstructured data (such as a text  Introduction to document). Information System Procedures: The steps and processes that are followed to complete specific tasks such as data entry, information processing, and report generation. People: Those who use the system as well as those who support and maintain it. Network: The communication channels that connect the various system components and allow them to work together. Policies and security measures: The guidelines and measures that ensure the system's information's confidentiality, integrity, and availability. The following are the major processing functions in information systems: Business transaction processing: Capture, collect, record, store, and process events of business interest so that their impact is reflected in organizational performance records. Master file updates: The effect of these transactions is carried over to the organizational performance status files. At any given time, master files must reflect the status of any entity after incorporating the impact of current transactions. Information report generation: After processing transactions and updating master files, information reports are generated to assist managers in making decisions. Processing of interactive inquiries: Online information processing systems allow managers to respond to business queries raised on data files, both master and transaction files. Providing interactive analytical support: Key decision makers require not only interaction with data files for data extraction using scientific and planning models but also online processing support to analyze the impact of some potential actions. A Decision Support System is created when the system can extract data from relevant files and address it to the models selected by the user. 1.6 TYPES OF INFORMATION SYSTEMS Information systems can be classified into several types based on their functions, organizational level, and nature of data processed: Transaction Processing Systems (TPS) Management Information Systems (MIS) Decision Support Systems (DSS) Executive Information Systems (EIS) Expert Systems (ES) Artificial Intelligence Systems (AI) Enterprise Resource Planning Systems (ERP) 13 Overview of Management Supply Chain Management Systems (SCM) Information System Customer Relationship Management Systems (CRM) Knowledge Management Systems (KMS) Transaction Processing System (TPS): A transaction processing system is an information system that processes data resulting from business transactions. Their goals are to provide transactions so that records can be updated, and reports can be generated, i.e., to perform storekeeping functions. The transaction is carried out in two stages: batch processing and online transaction processing. Examples: Bill system, payroll system, Stock control system. Management Information System (MIS): A Management Information System is intended to take relatively raw data available through a Transaction Processing System and summarize and aggregate it for the manager, usually in the form of a report. Middle management and operational supervisors are likely to use its reports. MIS generates a wide range of report types. A summary report, an on-demand report, an ad-hoc report, and an exception report are among the reports available. Examples: Sales management systems, Human resource management systems. Decision Support System (DSS): A Decision Support System (DSS) is an interactive information system that provides information, models, and data manipulation tools to assist decision- making in semi-structured and unstructured situations. The end user is more involved in creating DSS than an MIS because DSS includes tools and techniques to assist in gathering relevant information and analyzing options and alternatives. Examples: Financial planning systems, Bank loan management systems. Experts System: Experts systems include expertise to assist managers in diagnosing and solving problems. These systems are based on artificial intelligence research principles. Experts Systems is a data-driven information system. It acts as an expert consultant to users by applying its knowledge of a specific area. An expert system's components are a knowledge base and software modules. These modules perform knowledge inference and provide answers to user questions. Office Automation System: An office automation system is a type of information system that automates various administrative processes such as documenting, data recording, and office transactions. The administrative and clerical activities are separated in 14 the office automation system. Email, voice mail, and word processing are  Introduction to some of the business activities performed by this type of information system. Information System Executive Support System: An Executive Support System (ESS) assists top-level executives in planning and controlling workflow as well as making business decisions. It is similar to the Management Information System (MIS). It provides great telecommunication, better computing capabilities, and effective display options to executives, among other things. It provides information to them in the form of static reports, graphs, and textual information on demand. It helps monitor performance, track competitor strategies, and forecast future trends, among other things. 1.7 THE COMPONENTS OF INFORMATION SYSTEMS An information system is a collection of hardware, software, and telecommunication networks that people construct to collect, create, and distribute useful data, usually within an organization. It defines the information flow within the system. An information system's goal is to provide appropriate information to the user, gather data, process data, and communicate information to the system's user. Fig 1.2: Components of Information Systems The components of the information system are as follows: Computer Hardware: Physical equipment is used for input, output, and processing. The hardware structure depends upon the type and size of the organization. It consists of an input and an output device, an operating system, a processor, and media devices. This also includes computer peripheral devices. 15 Overview of Management Computer Software: Information System The programs/ application program is used to control and coordinate the hardware components. It is used for analyzing and processing the data. These programs include a set of instructions used for processing information. 1.8 MAJOR PROCESSING FUNCTIONS IN INFORMATION SYSTEMS In information systems, processing functions refer to the operations performed on data, such as data input, manipulation, storage, and retrieval, to produce meaningful information. It entails converting raw data into a format that can be used for decision-making, reporting, or analysis. The goal is to support an organization's information needs by making data accessible, accurate, and useful. The following are the primary functions of information systems: Input and capture of data: It is the process of entering data into a computer system. This can be accomplished through a variety of methods, including manual entry, scanning, and electronic transfer. Data Storage and retrieval: This is the process of storing data in a system for later use. The data can be saved in a database, a file system, or in the cloud. Data processing and analysis: This is the process of converting raw data into useful information. Data validation, sorting, and calculation is examples of such tasks. Decision-making and problem-solving: The process of selecting the best option from a set of alternatives. The process of identifying and resolving a problem or issue is known as problem-solving. Both processes necessitate gathering information, weighing options, making a decision, and putting a solution in place. Critical thinking and clear, logical reasoning are required for effective decision-making and problem-solving. Information output and dissemination: This is the process of presenting processed data in a meaningful way, such as by creating reports, visualizations, or sending notifications. Data Maintenance: This is the process of updating and managing data in a system. Backups, data archiving, and data deletion are examples of such tasks. Data security and protection: This refers to the process of preventing unauthorized access to and modification of data stored in a system. Encryption, authentication, and access control are examples of such tasks. These functions collaborate to ensure that data is collected, processed, stored, and presented in a way that meets an organization's needs. 16  Introduction to 1.9 HOW TO APPLY INFORMATION SYSTEMS Information System IN BUSINESS? Here are some of the business activities that require the intervention of an information system. Enterprise resource planning (ERP): Enterprise Resource Planning (ERP) is a type of software that integrates different functions of an organization into a single system. The purpose of ERP is to streamline and automate business processes, such as financials, human resources, procurement, supply chain management, and customer relationship management. The goal of ERP is to provide a single source of truth for an organization's data and to improve decision-making by giving executives and managers real-time access to accurate information. ERP systems can vary in complexity and scope, ranging from basic systems that handle simple tasks to complex, multi-module systems that can manage the entire operations of a large enterprise. Many ERP systems are web-based and can be accessed from anywhere with an internet connection. ERP implementation can be a complex and time- consuming process, but it can bring many benefits to an organization, including increased efficiency, reduced errors, better visibility into business operations, and improved decision-making. However, it is important to carefully evaluate an organization's needs and choose an ERP system that is appropriate for the organization's size, budget, and goals. Supply chain management (SCM): Supply Chain Management (SCM) is the coordination and management of activities involved in the production and delivery of products and services to customers. It involves managing the flow of materials, information, and financial capital from suppliers, through the organization, and out to customers. SCM encompasses a wide range of activities, including procurement, production planning, inventory management, transportation, warehousing, and customer service. The goal of SCM is to optimize the flow of goods and services, improve the efficiency of the supply chain, and enhance the overall customer experience. Effective SCM requires collaboration and communication between all participants in the supply chain, including suppliers, manufacturers, distributors, and customers. This can be achieved through the use of technologies such as electronic data interchange (EDI), RFID (Radio Frequency Identification), and cloud-based collaboration tools. In today's fast-paced business environment, managing the supply chain is becoming increasingly complex and challenging. Companies must be able to respond quickly to changes in demand, minimize the risk of supply chain disruptions, and meet the evolving needs of customers. A well-designed and efficiently managed supply chain can help companies to improve their bottom line and achieve a competitive advantage in their markets. 17 Overview of Management Customer relationship management (CRM): Information System Customer Relationship Management (CRM) is a strategy that organizations use to manage their interactions with customers and potential customers. The goal of CRM is to create and maintain strong, lasting relationships with customers by understanding their needs and behaviors and by delivering the products, services, and experiences that they value. CRM is typically achieved through the use of software and technology. CRM systems can collect and store data about customers, including demographic information, purchase history, and interaction history with the organization. This information can be used to inform business decisions, such as which products to develop or which customers to target with marketing campaigns. CRM can encompass a wide range of activities, including sales management, marketing, customer service and support, and customer analytics. By centralizing customer data and automating many of the processes involved in managing customer interactions, organizations can improve the efficiency of their customer-facing operations and provide a better customer experience. In today's business environment, the effective management of customer relationships is critical to success. With the increasing competition and the rise of digital channels, companies must be able to effectively manage their interactions with customers to build strong, long-lasting relationships and stay ahead of the competition. Activity B What is the role of information systems in business and society? ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… ………………………………………………………………………………… 1.10 FACTS OF INFORMATION SYSTEMS The products of information technology are part of our daily lives. Here are some of the facts about information systems. Necessary for businesses to grow Every organization has computer-related operations that are critical to getting the job done. In a business, there may be a need for computer software, implementation of network architecture to achieve the company’s objectives, or designing apps, websites, or games. So, any company that is looking to secure its future needs to integrate a well- designed information system. 18  Introduction to Better data storage and access Information System Such a system is also useful for storing operational data, documents, communication records, and histories. As manual data may cost a lot of time, information systems can be very helpful in it. Information system stores data in a sophisticated manner, making the process of finding the data much easier. Better decision making Information system helps a business in its decision-making process. With an information system, delivering all the essential information is easier to make better decisions. In addition, an information system allows employees to communicate effectively. As the documents are stored in folders, sharing and accessing them with the employees is more accessible. 1.11 SUMMARY In this unit, you have been introduced to information systems. First, we have reviewed several definitions, focusing on the components of information systems: technology, people, and process. Next, we have studied how the business use of information systems has evolved over the years, from the use of large mainframe computers for number crunching, through the introduction of the PC and networks, all the way to the era of mobile computing. Software and technology innovations allowed businesses to integrate technology more deeply during each phase. We are now to a point where every company uses information systems and asks: Does it bring a competitive advantage? So, in the end, that is really what this course is about what every businessperson should understand, what an information system is and how it would use to bring a competitive advantage. 1.12 SELF-ASSESSMENT EXERCISES 1. Of the five primary components of an information system (hardware, software, data, people, process), which do you think is the most important to the success of a business organization? Write a one- paragraph answer to this question that includes an example from your personal experience to support your answer. 2. The Walmart case study introduced you to how that company used information systems to become the world’s leading retailer. Walmart has continued to innovate and is still looked to as a leader in the use of technology. Do some original research and write a one-page report detailing a new technology that Walmart has recently implemented or is pioneering. 3. "Internal information is used for day-to-day decision making whereas external information is crucial for long-term planning." Comment. 19 Overview of Management 1.13 FURTHER READINGS Information System 1. “Does IT Matter?” by Nicholas Carr 2. "Information Systems: A Manager's Guide to Harnessing Technology" by John Gallaugher 3. Wikipedia entry on "Information Systems," as displayed on August 19, 2012. Wikipedia: The Free Encyclopedia. San Francisco: Wikimedia Foundation. 4. Information Systems Today - Managing in the Digital World, fourth edition. Prentice-Hall, 2010. 5. Management Information Systems, twelfth edition, Prentice-Hall, 2012. 20  Introduction to UNIT 2 INTRODUCTION TO MANAGEMENT Management Information System INFORMATION SYSTEM Objectives After studying this unit, you will be able to: Understand the organizational and Strategic view of MIS. Understanding the depth of different components of MIS. Understand the various terms involved in MIS. Structure 2.1 Introduction to Management Information System (MIS) 2.2 Organizational & Strategic View of MIS 2.3 Information Systems and Technology 2.4 Database Management Systems 2.5 Data Analytics 2.6 Network and Telecommunication 2.7 Enterprise Resource Planning (ERP) Systems 2.8 Electronic Commerce (e-commerce) 2.9 Cybersecurity & Data Privacy 2.10 Business Intelligence 2.11 Project Management 2.12 System Development Life Cycle 2.13 IT Strategy and Management 2.14 Ethics and Legal Issues in Information Systems 2.15 Summary 2.16 Self-Assessment Exercises 2.17 Further Readings 2.1 INTRODUCTION TO MANAGEMENT INFORMATION SYSTEM (MIS) Definitions: Management: Management has been defined as a process, a function, and a profession concerned with the activity of accomplishing tasks with and through people. Managers perform a variety of tasks such as planning, directing, controlling, staffing, leading, and motivating. Information: Information can be defined as collections of facts, figures, and symbols that have been processed for the current decision-making situation. The information is thought to be important in a specific situation. 21 Overview of System: A system is defined as a collection of related components, activities, Management Information System processes, and humans interacting to achieve a common goal. When all three components are considered together, it is clear that Management Information Systems are collections of related processes, activities, individuals, or entities that interact to provide processed data to individual managers at various levels in various functional areas. Some of the characteristics that should be followed when defining Management Information Systems such as Management information systems are primarily intended to provide information derived from data after it has been processed; information systems do not generate data. After being generated by business operations in an organisation, data is generated, collected, recorded, stored, processed, and retrieved. The information systems adhere to the procedures established for processing the data generated within the organisation. Information systems are created for job positions rather than individuals. Regardless of who holds the job position, information systems are designed with the job responsibilities that the individual is supposed to perform in mind and are dependent on the information needs of the individual in the organisational hierarchy in mind. The information systems are designed for different levels of management; they are intended to meet the information needs of top, middle, and junior management decision-makers. The information systems are intended to provide information to managers in various functional areas. Managers in marketing, finance, production, personnel, materials, logistics, and other areas receive the information. Databases should be used to integrate information systems. Integrating information systems eliminates data storage, processing, and report generation redundancy. To reduce the likelihood of data integrity discrepancies, ensure single-point data entry and upkeep of master data files. Computers and other electronic devices help to facilitate information systems. Fig. 2.1: Overview of Information System The importance of MIS: Management Information System (MIS) refers to the use of information technology to support and manage organisational operations. It is an 22  Introduction to integrated approach to the use of technology, people, and data to provide Management relevant and accurate information for effective decision-making and problem- Information System solving. The importance of MIS can be understood through the following points: Improved Decision Making: MIS provides access to real-time data, which allows organisations to make informed decisions based on accurate and up-to-date information. Increased Efficiency: MIS automates many manual processes, freeing up time and resources and reducing the risk of human error. Better Collaboration: MIS enables employees to share information and collaborate on projects more effectively, regardless of physical location. Competitive Advantage: MIS helps organisations stay ahead of their competition by providing them with the tools and information they need to make strategic decisions. Improved Customer Service: MIS can help organisations understand customer needs and preferences, leading to improved customer satisfaction and increased customer loyalty. Cost Savings: MIS can help organisations reduce costs by automating manual processes, reducing errors, and improving operational efficiency. MIS plays a critical role in the success of modern organisations by providing the information and tools needed for effective decision-making, improved efficiency, and enhanced collaboration. Disadvantages of MIS: Management Information Systems (MIS) is a significant tool for organisations to help them manage their data and information effectively, but like any system, it has its disadvantages. Some of the major disadvantages of MIS are: High Cost: Implementing and maintaining an MIS system can be expensive. The costs involved include hardware, software, staffing, and training expenses. Complexity: MIS systems can be complex and difficult to use, especially for people with limited technical skills. Dependence on Technology: An MIS system relies on technology and can be vulnerable to system failures, software bugs, and security breaches. Inaccurate Data: The accuracy of the data in an MIS system depends on the quality of the data that is entered into it. If the data is inaccurate, the reports generated by the system will also be inaccurate. Resistance to Change: People within organisations may resist using an MIS system due to fear of change, lack of trust in technology, or difficulty in learning how to use it. 23 Overview of Maintenance Requirements: MIS systems require ongoing Management Information System maintenance and upgrades to keep them functioning effectively, and this can be time-consuming and costly. Limited Flexibility: MIS systems can be rigid and inflexible, making it difficult to accommodate changes in the organisation's needs or processes. 2.2 ORGANIZATIONAL & STRATEGIC VIEW OF MIS Management Information Systems (MIS) organisational and strategic view is a top-down perspective that considers how the technology aligns with the company's overall goals and objectives. This viewpoint regards MIS as a tool for decision-making and assisting organisations in achieving their objectives. The emphasis is on how technology is used to support the company's strategies and how it is integrated into the overall organisational structure. According to this viewpoint, MIS is more than just a collection of technical systems; it is a critical component of overall business strategy. A retail company that uses customer data to drive its marketing and sales strategies is an example of an organisational and strategic view of MIS. Through its POS systems, website, and social media presence, the company collects data on customer purchases, demographics, and online behaviour. The MIS department then analyses this data to identify patterns and trends that can be used to inform the company's marketing decisions, such as targeted promotions and personalised advertising. The company can make data-driven decisions that can lead to increased sales, customer loyalty, and competitive advantage by integrating technology and data analysis into its overall business strategy. In this case, the MIS function is viewed as a critical component of the company's overall growth and success strategy. In the following ways, Management Information System (MIS) is related to organisations and strategy: Assists decision-making: MIS provides decision-makers with the pertinent information they require to make informed decisions. Aligns with organisational strategy: MIS is designed and implemented to support the overall strategy and goals of the organisation. Increases operational efficiency: MIS automates many business processes, which reduces errors and increases efficiency. Promotes communication and collaboration: MIS promotes communication and collaboration among departments and employees, thereby improving organisational coordination and alignment. Improves competitiveness: MIS assists organisations in remaining competitive by providing timely, accurate information and allowing them to respond quickly to changing market conditions. 24  Introduction to MIS is critical in assisting organisations in achieving their objectives by Management providing the information and tools required for effective decision-making Information System and operational performance. 2.3 INFORMATION SYSTEMS AND TECHNOLOGY Computer hardware, software, and data management are among the fundamentals of information systems and technology. Information Systems (IS) are a collection of interconnected components that work together to collect, process, store, and disseminate information to support decision- making and control within an organisation. The tools and techniques used to develop, operate, and maintain information systems are referred to as technology. Hardware, software, and telecommunications equipment, as well as the processes used to design, develop, and implement information systems, are all included. As managers, the majority of you will work for companies that heavily rely on information systems and make significant investments in information technology. You will undoubtedly want to learn how to invest this money wisely. Your company can outperform competitors if you make wise decisions. You will waste valuable capital if you make poor decisions. This book is intended to assist you in making informed decisions about information technology and information systems. Information technology (IT) encompasses all of the hardware and software that a company requires to meet its business objectives. This includes not only computer machines, storage devices, and handheld mobile devices, but also software such as the Windows or Linux operating systems, the Microsoft Office desktop productivity suite, and the many thousands of computer programmes found in the average large firm. "Information systems" are more complex and are best understood by examining them from both a technological and a business standpoint. The Management Information Systems (MIS) Information Systems and Technology (IS&T) perspective focuses on the technical and functional aspects of information systems. This point of view is concerned with the design, development, implementation, and maintenance of the technology infrastructure that supports the information needs of the organisation. Hardware, software, data management, and network systems are all included. The IS&T viewpoint is concerned with how information systems can be used to support an organisation's day-to-day operations, automate manual processes, and provide real-time access to information. This viewpoint regards information systems as a collection of tools that can be used to improve efficiency, cut costs, and boost productivity. Implementing an enterprise resource planning (ERP) system, developing a customer relationship management (CRM) system, and deploying a cloud-based data storage and management system are all examples of IS&T in the MIS context. These technologies can be used to support organisational operations, manage data, and provide information for decision-making. 25 Overview of Management 2.4 DATABASE MANAGEMENT SYSTEMS Information System Database Management Systems are concerned with the design, development, and administration of databases, including data models and SQL. A database is a collection of data that has been organised to efficiently serve many applications by centralising the data and controlling redundant data. Instead of storing data in separate files for each application, data is stored in such a way that it appears to users to be stored in only one location. A single database can support multiple applications. Instead of storing employee data in separate information systems and files for personnel, payroll, and benefits, a company could create a single common human resources database. A database management system (DBMS) is software that allows an organisation to centralise data, manage it efficiently, and provide application programmes with access to the stored data. The database management system (DBMS) serves as a bridge between application programmes and physical data files. When an application programme requests a data item, such as gross pay, the DBMS locates it in the database and returns it to the application. Using traditional data files, the programmer would need to specify the size and format of each data element used in the programme, as well as tell the computer where to find them. By separating the logical and physical views of the data, the DBMS relieves the programmer or end user of the task of understanding where and how the data are stored. The logical view depicts data as it would be perceived by end users or business specialists, whereas the physical view depicts data organisation and structure on physical storage media. Management Information Systems (MIS) from the Database Management Systems (DBMS) perspective focuses on the management and organisation of data within an organisation. This viewpoint regards the DBMS as the foundation for efficiently and effectively storing, organising, and retrieving data. The DBMS is in charge of ensuring the accuracy, reliability, and consistency of the data stored in the system in the context of MIS. It also includes tools for defining data relationships, enforcing data constraints, and restricting data access. Organisations can use a DBMS to simplify the process of storing, retrieving, and analysing data, resulting in more effective decision- making. The use of relational databases, such as Microsoft SQL Server and Oracle, for storing and retrieving data, as well as NoSQL databases, such as MongoDB and Cassandra, for storing and retrieving large amounts of unstructured data, are examples of DBMS in the MIS context. The DBMS chosen will be determined by the organisation's specific needs, such as the size of the data set, the complexity of the data relationships, and the system's performance requirements. 2.5 DATA ANALYTICS In the context of Management Information Systems (MIS), data analytics refers to the process of gathering, cleaning, analysing, and visualising data to 26 extract insights and inform decision-making. This entails employing several  Introduction to techniques and tools to identify patterns, relationships, and trends in data and Management converting this information into actionable insights. Data analytics is an Information System important component of the MIS function because it allows organisations to make data-driven decisions based on facts rather than intuition or assumptions. Data Analytics' goal is to provide meaningful information that can support decision-making, identify areas for improvement, and provide a competitive advantage. Examples of Data Analytics include the use of data mining to identify patterns in customer behaviour, predictive analytics to forecast future trends, and text analytics to extract insights from unstructured data such as social media posts and customer reviews. Data analytics can be used in many different business areas, including marketing, sales, customer service, and operations. 2.6 NETWORK AND TELECOMMUNICATIONS Management Information Systems (MIS) Network and Telecommunications perspective focus on the communication and information-sharing aspects of technology. This viewpoint takes into account the hardware and software that enable organisations to exchange information and collaborate, both internally and with external stakeholders. Network and telecommunications encompass a wide range of technologies in the context of MIS, including local and wide area networks, cloud computing, internet technologies, and mobile communications. According to this viewpoint, these technologies are critical enablers of information flow within the organisation and between the organisation and its stakeholders. Network and telecommunications examples in the MIS context include the deployment of a virtual private network (VPN) to allow remote workers to access the company's information systems, the use of cloud computing to store and access data and applications, and the implementation of mobile technologies to provide employees and customers with real-time access to information. In the context of MIS, the goal of networks and telecommunications is to support the flow of information and to enable organisations to collaborate and share information efficiently and effectively. 2.7 ENTERPRISE RESOURCE PLANNING (ERP) SYSTEMS In the context of Management Information Systems (MIS), ERP Systems refer to integrated software systems that manage a company's core business processes such as finance, human resources, supply chain management, and customer relationship management. ERP systems are intended to provide a unified view of an organisation's data, obviating the need for separate systems and databases. ERP systems provide businesses with a centralised platform for managing operations, streamlining processes, and increasing efficiency. ERP systems enable organisations to make data-driven decisions, reduce manual processes, and improve information accuracy by integrating information from various 27 Overview of departments and functions. SAP, Oracle, and Microsoft Dynamics are Management Information System examples of ERP systems. These systems are used in a variety of industries, including manufacturing, retail, healthcare, and finance. The ERP system chosen will be determined by the organisation's specific needs, such as its size, the complexity of its operations, and the system's performance requirements. 2.8 ELECTRONIC COMMERCE This topic covers the principles of conducting business over the Internet, including e-commerce strategies, online payment systems, and digital marketing. E-commerce in the context of Management Information Systems (MIS) refers to the buying and selling of goods and services over the Internet. E-commerce enables organisations to reach a wider customer base, increase sales, and reduce the costs associated with traditional brick-and-mortar retail. From an MIS perspective, e-commerce requires the integration of a range of information systems, including payment systems, customer relationship management systems, and inventory management systems. This integration allows organisations to provide a seamless customer experience, from product discovery to purchase, and to manage the flow of information and goods between different parts of the organisation. Examples of e-commerce in the MIS context include online marketplaces, such as Amazon and eBay, and online retail stores, such as Walmart and Target. E-commerce also includes business-to-business (B2B) transactions, such as the purchase of raw materials or supplies by manufacturers. The growth of e-commerce has led to an increase in the use of mobile commerce, which enables customers to make purchases using their mobile devices. 2.9 CYBERSECURITY & DATA PRIVACY This topic discusses the various threats to computer systems and data, including viruses, hackers, and malware, and the measures organisations can take to protect their information systems. Cybersecurity refers to the protection of digital devices, networks, and data from unauthorised access, theft, and malicious attacks. In the context of Management Information Systems (MIS), it involves implementing measures to secure computer systems, networks, and data against cyber threats. Data privacy, on the other hand, refers to the protection of personal information and sensitive data. In MIS, it involves ensuring that data is collected, stored, and used in compliance with regulations and laws such as GDPR, HIPAA, and others and that the privacy rights of individuals are respected. Both cybersecurity and data privacy are critical aspects of MIS as they help protect an organisation's information assets, maintain the trust of customers and stakeholders, and comply with legal requirements. 28  Introduction to 2.10 BUSINESS INTELLIGENCE & DECISION Management Information System MAKING This topic focuses on using data and analytics to make informed business decisions, including data warehousing, business intelligence tools, and dashboards. Business Intelligence (BI) in the context of Management Information Systems (MIS) refers to the use of data, analytical tools, and technology to support informed decision-making in an organisation. The goal of BI is to turn data into actionable information that can inform and support strategic, tactical, and operational decision-making. This can include activities such as data collection and warehousing, data analysis, reporting, and visualisation. Decision-making in MIS involves using information and insights generated from BI to make informed decisions about various aspects of an organisation such as finance, operations, marketing, and others. The purpose of decision- making in MIS is to support an organisation's ability to achieve its goals and objectives by leveraging data and information to inform decisions. Both BI and decision-making in MIS play critical roles in the success of an organisation by providing the information and insights needed to make informed decisions, monitor performance, and drive continuous improvement. 2.11 PROJECT MANAGEMENT This topic covers the principles of managing projects, including project planning, budgeting, and risk management. Project Management in the context of Management Information Systems (MIS) refers to the application of tools, techniques, and methodologies to plan, execute, and control information technology (IT) projects. The goal of project management in MIS is to ensure that IT projects are delivered on time, within budget, and to the satisfaction of stakeholders. This can include activities such as project planning, project scheduling, resource allocation, risk management, project control, and project evaluation. MIS project management involves the coordination of technical and business resources to deliver IT solutions that support the goals and objectives of an organisation. Effective project management in MIS requires clear communication, collaboration, and alignment between technical and business teams, and a focus on delivering value to stakeholders. Project management in MIS is a critical aspect of the successful delivery of IT solutions and is essential for ensuring that IT projects are delivered effectively, efficiently, and to the satisfaction of stakeholders. 2.12 SYSTEM DEVELOPMENT LIFE CYCLE This topic explores the various stages of developing a software system, including requirements gathering, design, implementation, and testing. The System Development Life Cycle (SDLC) in Management Information Systems (MIS) refers to a process for creating and maintaining information systems. 29 Overview of It consists of the following phases: Management Information System Requirements gathering and analysis: This phase involves understanding the needs and requirements of the stakeholders. Design: In this phase, the system is designed based on the requirements gathered in the first phase. Development and testing: The system is developed and tested to ensure it meets the design specifications. Implementation: The system is put into use in this phase. Maintenance: The system is monitored, maintained, and updated as needed to keep it running smoothly. Retirement: The system is decommissioned when it is no longer needed. The SDLC helps ensure that the system is developed in a systematic and controlled manner, which reduces the risk of errors and improves the quality of the final product. We will discuss more about SDLC in Unit – 3. 2.13 IT STRATEGY AND MANAGEMENT This topic discusses the strategic role of information technology in an organisation, including IT governance, alignment with business objectives, and management of IT resources. IT strategy and management in the context of Management Information Systems (MIS) refer to the planning and implementation of technology systems to support and improve the organisation's overall goals and objectives. IT strategy defines the long-term direction for the use of technology in the organisation and involves the following steps: Assessing current IT infrastructure and capabilities Determining business requirements Developing a vision for the use of technology Defining goals and objectives for IT Developing an action plan to achieve the goals IT management involves the day-to-day operations and maintenance of the technology systems and infrastructure, including: Resource allocation Project management Monitoring and controlling the technology systems Ensuring the security and availability of data and systems Providing support to users The goal of IT strategy and management in the context of MIS is to align technology with the organisation's goals and objectives, improve operational efficiency, support decision-making, and enhance the overall competitiveness of the organisation. 30  Introduction to 2.14 ETHICS AND LEGAL ISSUES IN Management Information System INFORMATION SYSTEMS This topic covers ethical and legal considerations related to information technology, including data privacy, intellectual property, and cybercrime. Ethics and legal issues in Information Systems (IS) in Management Information Systems (MIS) are concerned with the responsible use and protection of information and technology. Ethics: Refers to moral principles and values that guide behaviour in the use of information and technology. This includes issues such as privacy, accuracy, security and intellectual property. Privacy: Protecting the confidentiality and personal information of individuals. Accuracy: Ensuring that the information stored and processed by IS is accurate, up-to-date and free from errors. Security: Protecting the confidentiality, integrity and availability of information and technology systems. Intellectual Property: Protecting the rights of creators and owners of information, such as copyrights and patents. Legal issues in IS in MIS include: Compliance with laws and regulations: Organisations must comply with laws and regulations related to information and technology, such as data protection laws and privacy regulations. Liability: Organisations can be held responsible for the misuse of information or technology systems. Electronic contracts: The legality and enforceability of electronic contracts and agreements. The goal of addressing ethics and legal issues in IS in MIS is to ensure the responsible and legal use of information and technology and to protect the rights and interests of individuals and organisations. 2.15 SUMMARY Management Information System (MIS) is a systematic approach to studying the information needs and decision-making at all levels of an organization. It helps managers make informed decisions through reports, dashboards, and visualizations. An MIS can have a wide range of functions, from providing basic reports to conducting complex data analysis and decision-making support. It involves the use of hardware like computers and servers, and software like databases and reporting tools. Implementing an MIS can bring numerous benefits to an organization, including enhanced decision-making, increased efficiency, and better coordination among different departments. However, the effectiveness of an MIS largely depends on the quality and precision of the data used, as well as the organization's capability to utilize the information provided. 31 Overview of In conclusion, an MIS is essential for organizations of all sizes and industries. Management Information System Providing timely and accurate information to managers can help organizations to improve their operations, achieve their goals, and stay competitive in today's fast-paced business environment. 2.16 SELF-ASSESSMENT EXERCISES 1) What is the role played by business information in an organisation? 2) Define a Management Information System and discuss various characteristics expected of a good MIS. 3) How do Information Systems impact organisations and Business Firms? Explain with examples. 4) "Internal information is used for day-to-day decision making whereas external information is crucial for long-term planning". Comment. 5) "Finding better ways to innovate and develop new ideas is critical in a marketplace" – Justify. 6) You work as a project manager in a large retail company that uses various information systems to manage its operations, such as inventory management, customer relationship management, and financial reporting. As a project manager, you are responsible for ensuring that these systems are implemented effectively and that they meet the company's information needs. i) Analyse the organisation's various information systems. ii) Evaluate the data management and Examine decision-making 2.17 FURTHER READINGS Berlind, David. "Google Apps Refresh Sets up Death Match with Microsoft," Information Week, April 12, 2010. Easley, Robert F., Sarv Devaraj, and J. Michael Crant."Relating Collaborative Technology Use to Teamwork Quality and Performance: An Empirical Analysis." Journal of Management Information Systems 19, no. 4 (Spring 2003). Clemons, Eric. "The Power of Patterns and Pattern Recognition When Developing Information-Based Strategy. Journal of Management Information Systems 27, No. 1 (Summer 2010). 32  System Development UNIT 3 SYSTEM DEVELOPMENT LIFE Life Cycle (SDLC) CYCLE (SDLC) Objectives After studying this unit, you will be able to: Understand the importance of SDLC in MIS Learn in detail about the phases of SDLC Deep knowledge about Methodologies of System Development Life Cycle Structure 3.1 Introduction of System Development Life Cycle (SDLC) 3.2 Phases of SDLC 3.3 Methodologies of System Development Life Cycle 3.4 Benefits of System Development Life Cycle 3.5 Possible Drawbacks of SDLC 3.6 Summary 3.7 Self-Assessment Exercises 3.8 Further Readings 3.1 INTRODUCTION OF SYSTEM DEVELOPMENT LIFE CYCLE (SDLC) The system development life cycle (SDLC), which was first introduced in the 1960s, has its roots in developing the first software systems. So far, the SDLC has evolved into a complex software development process model that can be seen and used within a specific software development model. The systems development life cycle (SDLC) is a project management conceptual model describing the stages of an information system development project, from initial feasibility studies to application maintenance. SDLC applies to both technical and non-technical systems. In most cases, a system is an IT technology that includes both hardware and software. SDLC is typically attended by project and program managers, system and software engineers, development teams, and end users. Every hardware or software system will undergo a development process, which is an iterative process with multiple steps. SDLC provides a rigid structure and framework for defining the phases and steps involved in system development. SDLC stands for Synchronous Data Link Control and software development life cycle. The software development life cycle is very similar to the systems development life cycle, but it focuses solely on the software development life cycle. An effective System Development Life Cycle (SDLC) should result in a high-quality system that meets customer expectations, is completed on time and within budget, and works effectively 33 Overview of and efficiently in the current and planned information technology Management Information System infrastructure. SDLC is a conceptual model that includes policies and procedures for developing or changing systems throughout their life cycles. Analysts use SDLC to create an information system. SDLC activities include the following: Requirements Design Implementation Testing Deployment Operations Maintenance 3.2 PHASES OF SDLC The Systems Development Life Cycle is a systematic approach that explicitly breaks down the work required to implement a new or modified Information System into phases. The System Development Life Cycle (SDLC) is a comprehensive and systematic approach to developing and maintaining information systems. The following are the seven stages of SDLC as shown in fig 3.1: Fig 3.1: System Development Life Cycle (SDLC) Planning: The organization identifies the need for a new system and defines its objectives and scope during this stage. A feasibility study is carried out to determine whether or not the project is feasible and the resources required. Analysis: During this stage, the organization collects and analyses the system requirements. Gathering requirements from stakeholders and 34 developing a detailed system specification are part of this stage.  System Development Design: The system design is created during this stage, which includes Life Cycle (SDLC) the software and hardware architecture, database design, user interfaces, and system security. Development: This stage entails the actual coding and development of the system based on the previous stage's design. Developers design, develop, debug, and test the system. Integration & Testing: The system is tested during this stage to ensure that it meets the requirements and functions as expected. To validate the system, various types of testing are performed, including unit testing, integration testing, and acceptance testing. Implementation: The system is installed and deployed in a live environment for end-users to use at this stage. The system is deployed in a production environment and used by customers and end users. Maintenance: After the system has been deployed, this stage entails providing support for it. The system may require maintenance and bug fixes, as well as the addition of new features based on customer feedback. To summarise, the SDLC is a thorough and well-defined approach to system development that ensures systems are delivered on time, within budget, and with high quality. Stage #1. Planning – What Are the Existing Problems? Planning is one of the SDLC's core phases, covering nearly all of the upcoming steps that developers must complete for a successful project launch. This stage assists in setting up the problem or defining the pain that the software can target, defining the system's objectives, and sketching a rough plan of how the system will work. In other words, the planning process aids in developing an idea of how a specific problem can be solved using a specific software solution. This is critical for developers to better understand the project before beginning to build software. Furthermore, the planning stage includes an analysis of the resources and costs required to complete the project, as well as an estimate of the overall price of the software developed. Finally, the planning process clearly defines the outline of system development, including setting deadlines and time frames for each of the system development life cycle phases - all to launch the product on time and present it to the market. Stage #2. Analysis – What Do We Want? When the planning phase is complete, the research and analysis phase begins. This step entails gathering more specific data for your new system, such as initial system prototype draughts, market research, competition analysis, and so on. To complete the analysis and obtain all of the critical information for a specific project, developers can generate system requirements, prioritize them, draw alternatives, and determine the existing prototypes' pros and cons. Conducting market research to identify end-user pain points and needs, as well as developing concrete system goals and features to target. 35 Overview of Additionally, the SDLC analysis stage includes the creation of the Software Management Information System Requirement Specification (SRS) document, which defines the upcoming system development's software and hardware, functional, and network requirements. In general, such a document shapes the project's strict regulations and establishes the exact software model you want in the result. Stage #3. Design – How It Should Look Like? Design and prototyping are the next stages of a system development project. Essentially, this process is a necessary precursor to the core developing stage, which is why it is sometimes confused with the development process itself. However, because of the outlining of the system interface, databases, core software features, user interface and usability, and network and its requirements, this SDLC step can significantly reduce the time required to develop the software. In general, these features aid in the finalization of the SRS document as well as the creation of the prototype of the software to get a general idea of how it should look. The design process also includes the first testimonials of previously drawn ideas, as well as brainstorming some new concepts and solutions that fit better - such an approach can significantly reduce the time and costs required for the actual development of the software. Thus, once the design and prototyping are completed and the operation plan is in place, the creators can begin programming! Stage #4. Development – Let’s Create It The SDLC development stage focuses on the system creation process: developers write code and build the app following the finalized requirements and specification documents. In other words, it encompasses both the front- end and the back-end development processes. Along with the core functions of the software, it includes the application's UX/UI design - all of the basic qualities the product must provide for its end-users. Developers can use a variety of tools and programming environments written in C++, PHP, Python, and other languages to fully meet the project specifications and requirements. Though this phrase may appear to be simple, it is still possible to implement minor changes and improvements if they exist. However, the efficiency of the finalized version of the system created can only be evaluated in the following stage - software testing. Stage #5. Testing – Is It the Exact One We Needed? The testing stage, like any other system development model, is one of the most critical phases of SDLC. After the software is built, it is even more critical to ensure that all of its features work correctly and coherently and that they do not negatively impact the user experience. This process involves detecting potential bugs, defects, and errors, searching for various vulnerabilities, and so on, and can sometimes take even longer than the app- building stage. Finally, developers usually produce a testing report that includes a test case that lists all of the issues that were discovered and resolved. You can also review the testing criteria to ensure that the software product meets all of the requirements outlined in the SRS document. 36  System Development Stage #6. Integration – How Will We Use It? Life Cycle (SDLC) When the product is finished, it is time to integrate it into the specific environment, which usually means installing it. At this point, the software has completed its final testing in the training environment and is ready for market presentation. As a result, the product is now available to a much larger audience! Stage #7. Maintenance – Let’s Make the Improvements The final but not least important stage of the SDLC process is maintenance, where the software is already in use by end users. Often, during the first few months, developers will encounter issues that were not detected in the testimonials, so they should immediately respond to the reported issues and implement the changes required for the software's stable and convenient use. This is especially important for large systems, which are typically more difficult to test during the debugging stage. 3.3 SIX METHODOLOGIES OF SYSTEM DEVELOPMENT LIFE CYCLE Now that you understand the fundamental SDLC phases and why they are important, it's time to delve into the core methodologies of the system development life cycle - the approaches that can assist you in delivering a specific software model based on its major characteristics and features. Overall, there are six popular SDLC methodologies that you can use. Let's go over the main distinctions and peculiarities of each: Waterfall Model The Waterfall Model was the first to be introduced as a Process Model as shown in Figure 3.2. Fig 3.2: Waterfall Model 37 Overview of A linear-sequential life cycle model is another name for it. It is extremely Management Information System simple to grasp and apply. In a waterfall model, each phase must be completed before the next one can begin, and the phases do not overlap. The Waterfall model was the first SDLC approach used in software development. The waterfall Model depicts the software development process in a sequential linear flow. This means that any phase of the development process can start only after the previous phase is finished. The phases in this waterfall model do not overlap. The Waterfall model's sequential phases are as follows: Gathering and analyzing requirements: In this phase, all possible requirements of the system to be developed are captured and documented in a requirement specification document. System Design: In this phase, the requirement specifications from the first phase are studied, and the system design is prepared. This system design aids in the specification of hardware and system requirements, as well as the definition of the overall system architecture. Implementation: Using system design inputs, the system is first developed in small programs called units, which are then integrated into the next phase. Unit Testing is the process of developing and testing each unit for functionality. Testing: After testing each unit, all of the units developed during the implementation phase are integrated into a system. Following integration, the entire system is tested for flaws and failures. System deployment: After functional and non-functional testing is completed, the product is deployed in the customer environment or released to the market. Maintenance: There are a few issues that arise in the client environment. Patches are released to address these issues. To improve the product, newer versions are released. Maintenance is performed to implement these changes in the customer environment. Iterative Model The Iterative model begins with a simple implementation of a small set of software requirements and iteratively improves the evolving versions until the entire system is implemented and ready for deployment. An iterative life cycle model does not attempt to begin with a complete set of requirements. Instead, development begins with specifying and implementing only a portion of the software, which is then reviewed to identify additional requirements. This process is then repeated, resulting in a new version of the software at the end of each model iteration. This includes a series of smaller "waterfalls" in which small portions of changes are carefully analyzed, tested, and delivered via repeating development cycles. Receiving early feedback from end users allows for the elimination of issues and bugs in the early stages of software development. 38  System Development Life Cycle (SDLC) Fig 3.3: Iterative model Iterative and incremental development is a development model that combines iterative design or iterative methods with an incremental build model. "More than one iteration of the software development cycle may be in progress at the same time during software development." This method is referred to as "evolutionary acquisition" or "incremental build." The entire requirement is divided into various builds in this incremental model. The development module goes through the requirements, design, implementation, and testing phases during each iteration. Each subsequent module release adds functionality to the previous release. The process is repeated until the entire system meets the requirements. The key to using an iterative software development lifecycle successfully is rigorous requirement validation, as well as verification and testing of each version of the software against those requirements within each cycle of the model. Tests must be repeated and extended as the software evolves through successive cycles to verify each version of the software. Spiral Model Fig 3.4: Spiral Model 39 Overview of The spiral model combines the idea of iterative development with the Management Information System waterfall model's systematic, controlled aspects. This spiral model is a hybrid of the iterative development process model and the sequential linear development model, also known as the waterfall model, with a heavy emphasis on risk analysis. It enables incremental product releases or incremental refinement with each iteration around the spiral. The spiral model is best suited for large projects with similar, more customized products, as it allows for repeated passage through the main phases in a "spiral" motion. It allows for the simultaneous incorporation of feedback on the first stages of a life cycle, significantly reducing the time and costs required to implement the changes. The spiral model is divided into four stages. A software project goes through these phases in iterations known as Spirals. Identification: This phase begins with gathering the baseline spiral's business requirements. This phase is used to identify system requirements, subsystem requirements, and unit requirements in subsequent spirals as the product matures. This phase also includes continuous communication between the customer and the system analyst to understand the system requirements. The product is deployed in the identified market at the end of the spiral. Design: The Design phase begins with conceptual design in the baseline spiral and progresses to architectural design, logical module design, physical product design, and final design in subsequent spirals. Construct or Build: At each spiral, the Construct phase refers to the production of the actual