Preface... iii Introduction... xvii Chapter 1: Introduction to Management Information System... 1

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1 Table of Contents Preface... iii Introduction... xvii Chapter 1: Introduction to Management Information System Introduction Concept of Information System (IS) Computer Literacy and IS Literacy IS Components Trends in IS Classification of IS Framework of IS in an Organization IS and Business Organization Human Body as an Information System IS Failures and Causes Management Information System (MIS) Nature and Scope of MIS Characteristics of MIS Need of MIS Role of MIS Functions of MIS Adopting MIS in Organizations Future of MIS Structure of MIS Physical Components Information Processing Management Functions Decision Support Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions... 20

2 vi Table of Contents Chapter 2: Applications and Strategic Advantages of MIS Introduction Applications of MIS in Finance and Accounting Accounting Information System Financial Management Information System Integrated Financial Management Information System (IFMIS) Applications of MIS in Marketing Advantages of Marketing Information System Functions of Marketing Information System Strategic Marketing Information System Application of MIS in Production Application of MIS in Human Resource Management Advantages of HRIS Tactical HRIS Strategic Human Resource Development System Strategic Management Information System Strategy Levels Industry Level Strategy and MIS Firm Level Strategy and MIS Business Level Strategy and MIS Application of MIS for Strategic Advantage Customer Relationship Management (CRM) System Supply Chain Management (SCM) System Business Process Re-Engineering (BPR) Systems Enterprise Resource Planning (ERP) System Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 3: Introduction to Computer Systems Introduction Defining Computer History of Computer and Its Pioneers Abacus ENIAC and EDVAC IBM Personal Computer Blaise Pascal Charles Babbage Exploring the Generations of Modern Computer First Generation Computers ( ) Second Generation Computers ( )... 51

3 Table of Contents vii Third Generation Computers ( ) Fourth Generation Computers (1971-Present) Fifth Generation Computers (Present and Beyond) Exploring the Basic Components of a Computer Exploring the Basic Structure of a Computer System Unit Basic Input Output System (BIOS) Memory Cards Switch-Mode Power Supply Computer Hardware Input/ Output devices Input Devices Output Devices Other Hardware Devices Describing Computer Software System Software Application Software Categorizing Computers Computer for Individuals Computer for Organizations Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 4: Management of Data Resources Introduction Concept of Data Logical and Physical Views of Data Characteristics of Data Types of Data Data Resources Data Administration Concept of Database Types of Databases Data Warehouse Data Mining Data Models Designing Database and Database Modeling Database Models Database Designing Process... 86

4 viii Table of Contents 4.5 DBMS Features of DBMS Database and DBMS Components of DBMS Functions of DBMS Trends in DBMS DBMS Architecture Basic DBMS Concepts Relationships Keys Normalization DBMS Facilities SQL RDBMS Data Processing Information Concept Difference between Data and Information Characteristics of Information Types of Information Quality of Information Functions of Information Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 5: Communication Technology and Network Introduction Understanding Communication Technology Communication Technology in Organization Communication System Telecommunication Networking - Convergence of Computing and Communication Basics of Networking Need for Networking Components of a Network Architecture of Networks The OSI Model of Network Communication Types of Networks Network Topologies Hardware and Software Used for Networking Networking Cables Networking Devices

5 Table of Contents ix Network Interface Card Network Protocols Applying Communication Networks in Organization Intranet Extranet Describing the Internet Concept of Internet Connecting to the Internet World Wide Web Internet in Business Broadband Technology Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 6: Decision Support System (DSS) Introduction Concept of Decision Making Types of Decisions Decision Making Process Individual Model of Decision Making Simon s Model of Decision Making Techniques of Decision making The Delphi Method Reactive Decision Making Understanding Decision Support System (DSS) Problem Solving and DSS Evolution of DSS Components of DSS DSS Architecture Analytical Models in DSS Characteristics of DSS Types of DSS Model-driven DSS Communication-driven DSS Data-driven DSS Document-driven DSS Knowledge-driven DSS Web-based DSS Tools and Technologies Supporting DSS

6 x Table of Contents 6.6 DSS and Outsourcing Group Decision Support Systems Elements of GDSS Characteristics of GDSS Executive Support Systems (ESS) Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 7: System Development and Design Introduction The System Approach The Concept of System Characteristics of a System Types of Systems Elements of a System Decomposition and Integration of a System Developing Information System Waterfall Model Prototyping Approach Evolutionary Model Spiral Model Incremental Model Traditional System Development Lifecycle System Investigation Prototyping Feasibility Analysis System Design System Testing System Implementation System Maintenance Advantages of SDLC Disadvantages of SDLC Concept of System Analysis Data Flow Diagram Context Diagram Data Dictionary Entity-relationship Diagram System Analyst System Design Conceptual Design

7 Table of Contents xi User Interface Design Designing Methodology Alternative System Building Methods End-User Development Outsourcing of System Rapid Application Development Component-based System Development System Development and Organizational Change Business Process Re-engineering Restructuring System Conversion in Organization Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 8: Knowledge Management and Artificial Intelligence in Business Introduction Knowledge in Business Dimensions of Knowledge Knowledge Culture Knowledge Management Shift from Information Age to Knowledge Age Knowledge Sources Knowledge Acquisition Knowledge Base Knowledge Support System Types of KSS Scope of KSS Knowledge Network Knowledge Worker Strategic Advantage with Knowledge Management Knowledge Creating Company Learning Organization Value Chain with KSS Protection of Corporate Knowledge Concept of Intelligence Artificial Intelligence Evolution of Artificial Intelligence Applications of Artificial Intelligence Applications in Computational Ability

8 xii Table of Contents Applications in Cognitive Science Applications in Robotics Applications in User Interface Generating Artificial Intelligence Neural Network Fuzzy Logic Fuzzy Control Systems Generic Algorithms Virtual Reality Intelligent Agents Expert Systems Swarm Intelligence (SI) Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 9: Information Technology and Globalization Introduction Information Technology Globalization and IT Advantages of Globalization Disadvantages of Globalization Breaking Business Barriers-International Business The MNC Culture Need of MIS in MNCs Challenges in International Business Managing Global Information System Criteria of GIS Challenges in Developing GIS GIS Development Methodologies Recent Global Business Trends Virtual Organizations Outsourcing Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions

9 Table of Contents xiii Chapter 10: E-Commerce Introduction E-Commerce and its Models The B2C E-Commerce The B2B E-Commerce The C2C E-Commerce The C2B E-Commerce The B2G E-Commerce The G2B E-Commerce The C2G E-Commerce The G2C E-commerce The G2E E-Commerce The B2E E-Commerce Generations of E-commerce Advantages of E-commerce E-Government E-Banking E-Tailing E-Marketplace Technology Problem Definition Research Process Identifying Factors to Enter E-marketplace Specifying Guidelines to Enter E-Marketplace Introducing EDI Standards of EDI Transmission Modes of EDI Disadvantages of EDI E-Commerce in India Scope of E-Commerce in India Key Factors to Attract Indian Online Customer Obstacles in the Way of E-commerce in India E-Commerce and the Government of India E-Cash and E-Payment Scheme E-Cash E-Payment Schemes Purchase Order Processing and Payment E-Transaction and Secure E-Transaction Encryption Digital Signature Certificate Issuance Cardholder Certificates Trader Certificates Acquirer and Issuer Certificates Recent Trends in Shopping

10 xiv Table of Contents Mobile Commerce Business Intelligence Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 11: MIS in Project Management Introduction Overview of Project Management Understanding Project Management Information System (PMIS) Role of PMIS in Project Management Characteristics of Information Provided by PMIS Challenges of PMIS Introduction to Project Management Software (PMS) Key Features of Project Management Software Classification of Project Management Software Advantages of the Project Management Software Disadvantages of Project Management Software Introduction to the Microsoft Project Software Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 12: Information System Security and Control Introduction Ethical Aspects in Information Technology Business Ethics in Information Technology Social Ethics in Information Technology Technological Ethics in Information Technology Importance of Ethics in IT Achieving Ethics in IT Privacy Control Security Ethical Challenges of IT Cyber Crime Hacking Cyber Theft Unauthorized Usage Software Piracy

11 Table of Contents xv Piracy of Other Intellectual Property Viruses and Worms Social Engineering and Phishing Security Management and Control Internet-worked Security Virus Protection Monitoring Other Security Issues Management of Risks Requirement of Regulatory System Security Policy Legal Actions Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions Chapter 13: General Technological Knowledge Introduction Operating Systems Windows Operating System Exploring Features of Windows OS Domain Name System Web Page Web Browser Web Server Website Website Hosting File Hosting Service Image Hosting Service Video Hosting Service Personal Accounts and Communication Microsoft Word Microsoft Excel Microsoft PowerPoint Summary Key Terms Exercise Multiple Choice Questions Short Answer Type Questions Long Answer Type Questions

12 xvi Table of Contents Case Studies Case Study-1: Innovative Business Idea: Amazon.com Case Study-2: Agricultural Effectiveness and DSS Case Study-3: ERP Implementation in IBM Case Study-4: Apple iphone 4S Case Study-5: Online Payment Experience for Mr. X Case Study-6: Information System at Frito-Lay Case Study-7: TrustSphere: An Innovation Case Study-8: Flipkart.com the Amazon of India Case Study-9: Recent Trends in the Operating Systems Case Study-10: Implementation of CRM in DfES Additional Questions Glossery Index What s on the CD-ROM