SYSTEM DEVELOPMENT PROCESS Computer Information Systems serve many different purposes.

But how do such complex information systems come into existence? To be of any use, a computer based information system must function properly, be easy to us and suit the organisation for which it has been designed. If a system helps people to work more efficiently, they will use it. If not, they will surely avoid it. Systems development can generally be thought of as having two major components : Systems Analysis & Systems Design. Systems Design is the process of planning a new businesssystem or one to replace or complement an existing system. But before this planning can be done, one must thoroughly understand the old system and determine how computers can be used to make its operation more effective. Systems analysis, then is the process of gathering and interpreting facts, diagnosing problems and using the information to recommend improvements to the system. This is the job of the System Analyst. System Analyst do more than just solve current problems. They assess, as carefully as possible, what the future needs of the system will be and what changes should be considered to meet these needs. They may recommend alternatives for improving the situation. For each alternative, they consider its suitability to the particular organisation setting; he support it may get from the employees, time involved in its development and costs and benefits of the system in question. Based on these facts, the analysts recommend to the management, after consulting various managers and employees in the organisation, which alternative to adopt. The management then decides which alternative to accept. Once this decision is made, a plan is developed to implement the recommendations. The plan includes all systems design features, file specifications, operating procedures, design features and equipment and personnel requirements. The system design is like the blue print for a building, it specifies all the features that should be there in the finished product.

SYSTEM DEVELOPMENT LIFE CYCLE(SDLC) The process of system development starts when management or sometimes system development personnel realise that a particular business system needs improvement. The system development life cycle method can be thought of as a set of activities that analysts, designers and users carry out to develop and implement an information system. The SDLC method consists of the following : 1. Preliminary Investigation 2. Requirement analysis or System analysis 3. Design of system 4. Development of Software 5. Systems testing 6. Implementation and maintenance

1. Preliminary Investigation : A preliminary investigation is undertaken when users come across a problem or opportunity and submit a formal request for a new system to the MIS dept. This activity consists of three parts : request clarification, feasibility study and request approval. Generally, the requests which are submitted to the MIS department are not clearly stated. Hence, before any systems investigations can be considered, the system request must be examined to determine precisely what the originator wants. Thereafter, the analyst tries to examine whether the system requested is feasible or not. The third part relates to approval of the request. Based on the observation of the analysts, the management decides which system should be taken up for development. 2. Requirement Analysis or System Analysis :

If the management decides to go ahead, the needs of the users are studied. Analysts work closely with the employees and managers of the organisation for determining information requirements of the users. Several fact finding techniques and tools such as quesationnaires, interviews, observations etc are used for understanding the requirements. As details are gathered, the Analysts study the present system to identify its problems and short comings and identify the features which the new system should include to satisfy the new or changed user application environment. This step is also referred to as System Analysis 3. Design of the System : During system design, the user requirements that arose from analyzing the user applications environment are incorporated into a new systems design. The design of an information system produces the details that state how a system will meet the requirements identified. The analyst designs various reports/outputs, data entry procedures, inputs, files and databases. He also selects file structures and data storage devices. These detailed design specifications are then passed on to the programming staff so that software development can begin. 4. Acquisition & Development of Software : After system design details are resolved, resource needs such as hardware, software, services etc are determined. Choices regarding which products to buy or lease from which vendors are taken. Software are customised for implementation. The analysts works closely with the programmers if the software is to be developed in-house. Analyst also interacts with users to develop documentation for software including, various manuals. 5. Systems Testing : Before the information system can be used, it must be tested. System testing is done experimentally to ensure that the software does not fail i.e. it will run according to specifications of the users. Test data are input for processing and results examined. If found satisfactory, actual data from current systems are migrated. 6. Implementation & Maintenance : After the system is found to be fit, it is implemented with the actual data. Hardware is installed and users are then trained on the new system and eventually work on it is carried out independently. The results are monitored. The system is maintained and when necessary, modified to adapt to changing user needs and business needs to make the system useful to the organisation continuously.

MANAGEMENT INFORMATION SYSTEM INTRODUCTION:Management information system deals with information, which is critical for the success of any business organisation. since time immemorial managers have been using information for discharging important management functions of planning, organizing, staffing, directing and controlling to be useful, information must be capable of being uses for informative or inference purposes ,argument ,or as a basis for forecasting or decision making. Thus, it is imperative for an organisation to provide right information, in right quantity, to right persons (managers) at right time. As organisation expands, problems associated with the data collection and recording, retrieval and its effective communication increase in proportion to the size of the organisation. Hence, a special system has to be instituted to ensure the flow of correct information at regular intervals to various hierarchical management to various hierarchical management levels. This objective can be achieved by employment MIS.

MIS is an old management tool; however, it has attained new dimensions after the advent of computers. The computer has helped in accurate processing of increased volumes of data at high speed, thereby permitting the consideration of more alternatives in decision making process. The MIS thus refers to processed data supplied to different department as an aid to the efficient planning, co-ordination and controls of an organisation, and as a basis for making sound business decisions. All organisation, whether social, political, religious or commercial are designed to achieve certain objective. Not withstanding the difference in the nature of their activities, the underlying management process is common. Their management must plan for and control the usage of various organizational resources namely, manpower, materials, production facilities and capital in the most effective manner to achieve the organizational objectives. The MIS aids quick decision making which is the essence of the managerial process . Advent of computer has given the process accuracy speed and choice of alternatives CONCEPT OF MIS What is MIS? MIS consists of three terms, viz: Management, information and system. Let us define each element separately to better understand the term MIS. Management :A manager may be required to perform following activities in an organisation 1) determination of organizational objectives and developing plans to achieve them 2) securing and organizing the human and physical resources so that these objectives could be accomplished 3) exercise adequate controls over the functions. 4) monitoring the result to ensure that accomplishment are proceeding according to plan. Thus, management comprises the process or activities that manager do, such as- plan, organize, initiate and control operations. Information: Information is data that have been put into a meaningful and useful context. System : The term system may be defined as a set of inter-related elements that operate collectively to accomplish some common purpose. For e.g. Human body is a system consisting of various parts designed for me purpose of living. A business is also a system where economic resources such as people, money, material, machines, etc are transformed by various organizational process into goods and services. The role of MIS is to recognize information as a resource and then using that resource for effective and better achievement of organizational objectives. Definition of MIS: As described by G. B. Davies, A definition of a MIS, as the term is generally understood, is an integrated, man-machine system for providing information to support the operations, management and decision making functions of an organisation. The system utilizes computer hardware and software, manual procedures, management and decision models and a database. According to him, managerial information structure must be of a paramedical shape and it should be in conformity with the paramedical pattern of one structure of particular organisation i.e. at higher levels, information needed is more filtered and brief but meaningful, but as the level becomes lower, the Information base should get broader.

The physical view of the MIS can be seen as an assembly of several sub system based on the data base in the organisation. At the first level, data is collected, collated, processed and validated. Data is stored in data based and basic and preliminary but detailed report are used primarily by the first live mangers for day to day planning activities As the second level, the data is further filtered and presented to the middle level management for shortterm planning, production and execution. These reports are not as detailed but help the middle manager in understanding their requirement. At the top level, the highest level of execution are presented with summarized reports pertaining to the board level of functional activities taking place in the organisation. There data is mostly presented through computer in precise and concise manner. The EIS systems developed, invariably help the top management in getting more detailed information of any aspect of the organisation operations through a drill-down method. Here, clicking on any of the parameters, given more detailed information which in turn provides hype-links for even more detailed information. Thus the top management gets not only a concise view but also detailed information even up to the transaction levels. He can also get specific information if the system provides parameter based queries for extracting specific data. For e.g. a company with all India presence can project on the EIS the all India sales figure along with data for the north, south, east and west regions along with corresponding data for previous periods. In order to drill down to the next level ,clicking on south zone will project similar data for the four southern states viz, A.P , Karnataka , Tamil Nadu and Kerala. Clicking on A.P. will give further details, district wise in A.P. Thus, data can be made available individual distributor wise and product wise. CHARACTERISTICS OF AN EFFECTIVE MIS:1) Management orientedAn MIS system is not necessarily for top management only. It should also meet the information requirements of middle level or operating level of management as well. The development of the MIS should start with an appraisal of management need and over all business objectives. 2) Management directedBecause of management orientation of MIS, it is necessary that management should actively direct the system development efforts. Mere one-time involvement is not enough. For systems effectiveness, it is necessary for management to devote sufficient time not only at the stage of designed system but for its review as well, to ensure that the implementation system meets the specifications of the designed system. In brief, management should be responsible for setting system specifications and it must play a key role in the subsequent trade off decisions that occur in system development. 3) IntegratedDevelopment of on MIS should be an integrated one. It means that all the functional and operational information sub-system should be tied together into one entity. An integrated information system has the capability of generating more meaningful information to management . the word integration here means taking a comprehensive view or a complete look at the inter locking sub-system that operate within a company. 4) Common data flowit means the use of common input, processing and output procedures and media whenever passable is desirable. the data is captured by system analysts only once and as close to its original source as possible. They , then ,try to utilize a minimum of data processing procedure and sub-system to process the data and strive to minimize the number of output documents and report produced by the system. This eliminates duplication in data collection and documents and procedures. It avoid duplication, also simplifies operations and produces an efficient MIS 5) Heavy planning elementan MIS usually takes 3 to 5 years and sometimes even longer to get establishment firmly in an organisation. Therefore, a heavy planning element must be present in MIS development. It means that MIS designer should

keep in view future objective and requirement of firms information in mind. The designer most avoid the possibility of system obsolescence before the system gets into operation. 6) Sub-system concepteven though the information system is viewed as a single entity, it must be broken down into digestible subsystem which can be implemented one at a time by developing a phasing plan. 7) Common DatabaseDatabase is the mortar that holds the functional system together. It is defined as a super file which consolidates and integrates data records formerly stored in many separate data. The organisation of a data allow it to be accessed by several information sub-system and thus eliminates the necessity of duplication in data storage, updating, deleting and protection. Although, it is passable to achieve the basic objective of MIS without a common database, thus paying the price of duplicate storage and duplicate file updating , database is a definite characteristic of MIS. 8) Computerizedit is possible to have MIS without using a computer. But use of computers increases the effectiveness of the system. In fact, its use equips the system to handle a wide variety of applications by providing the information requirement quickly. Other necessary attribute of the computer to MIS are accuracy and consistency in processing data and reduction in clerical staff. These attributes make computer a prime requirement in management information system.

Normalization
Normalization is a method for organizing data elements in a database into tables. Normalization Avoids Duplication of Data The same data is listed in multiple lines of the database Insert Anomaly (inconsistency) A record about an entity cannot be inserted into the table without first inserting information about another entity Cannot enter a customer without a sales order Delete Anomaly A record cannot be deleted without deleting a record about a related entity. Cannot delete a sales order without deleting all of the customers information. Update Anomaly Cannot update information without changing information in many places. To update customer information, it must be updated for each sales order the customer has placed Normalization is a three stage process After the first stage, the data is said to be in first normal form, after the second, it is in second normal form, after the third, it is in third normal form Before Normalization 1. Begin with a list of all of the fields that must appear in the database. Think of this as one big table. 2. Do not include computed fields 3. One place to begin getting this information is from a printed document used by the system. 4. Additional attributes besides those for the entities described on the document can be added to the database. Fields in the original data table will be as follows: SalesOrderNo, Date, CustomerNo, CustomerName, CustomerAdd, ClerkNo, ClerkName, ItemNo, Description, Qty, UnitPrice Think of this as the baseline one large table Normalization: First Normal Form Separate Repeating Groups into New Tables. Repeating Groups Fields that may be repeated several times for one document/entity

Create a new table containing the repeating data The primary key of the new table (repeating group) is always a composite key; Usually document number and a field uniquely describing the repeating line, like an item number.

First Normal Form Example The new table is as follows: SalesOrderNo, ItemNo, Description, Qty, UnitPrice The repeating fields will be removed from the original data table, leaving the following. SalesOrderNo, Date, CustomerNo, CustomerName, CustomerAdd, ClerkNo, ClerkName These two tables are a database in first normal form What if we did not Normalize the Database to First Normal Form? Repetition of Data SO Header data repeated for every line in sales order. Normalization: Second Normal Form Remove Partial Dependencies. Functional Dependency The value of one attribute in a table is determined entirely by the value of another. Partial Dependency A type of functional dependency where an attribute is functionally dependent on only part of the primary key (primary key must be a composite key). Create separate table with the functionally dependent data and the part of the key on which it depends. Tables created at this step will usually contain descriptions of resources.

Second Normal Form Example The new table will contain the following fields: ItemNo, Description All of these fields except the primary key will be removed from the original table. The primary key will be left in the original table to allow linking of data: SalesOrderNo, ItemNo, Qty, UnitPrice Never treat price as dependent on item. Price may be different for different sales orders (discounts, special customers, etc.) Along with the unchanged table below, these tables make up a database in second normal form: SalesOrderNo, Date, CustomerNo, CustomerName, CustomerAdd, ClerkNo, ClerkName What if we did not Normalize the Database to Second Normal Form? Repetition of Data Description would appear every time we had an order for the item Delete Anomalies All information about inventory items is stored in the SalesOrderDetail table. Delete a sales order, delete the item. Insert Anomalies To insert an inventory item, must insert sales order. Update Anomalies To change the description, must change it on every SO. Remove transitive dependencies. Transitive Dependency A type of functional dependency where an attribute is functionally dependent on an attribute other than the primary key. Thus its value is only indirectly determined by the primary key. Create a separate table containing the attribute and the fields that are functionally dependent on it. Tables created at this step will usually contain descriptions of either resources or agents. Keep a copy of the key attribute in the original file.

Normalization: Third Normal Form

Third Normal Form Example The new tables would be:

CustomerNo, CustomerName, CustomerAdd ClerkNo, ClerkName All of these fields except the primary key will be removed from the original table. The primary key will be left in the original table to allow linking of data as follows: SalesOrderNo, Date, CustomerNo, ClerkNo Together with the unchanged tables below, these tables make up the database in third normal form. ItemNo, Description SalesOrderNo, ItemNo, Qty, UnitPrice What if we did not Normalize the Database to Third Normal Form? Repetition of Data Detail for Cust/Clerk would appear on every SO Delete Anomalies Delete a sales order, delete the customer/clerk Insert Anomalies To insert a customer/clerk, must insert sales order. Update Anomalies To change the name/address, etc, must change it on every SO.

Completed Tables in Third Normal Form Customers: CustomerNo, CustomerName, CustomerAdd Clerks: ClerkNo, ClerkName Inventory Items: ItemNo, Description Sales Orders: SalesOrderNo, Date, CustomerNo, ClerkNo SalesOrderDetail: SalesOrderNo, ItemNo, Qty, UnitPrice

Enterprise resource planning (ERP) systems integrate internal and external management of information across an entire organizationembracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application. The purpose of ERP is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders.[1]

Different Types of ERP Software Types of ERP SAP R/3, SAP B1, LN (BAAN), Microsoft Dynamics AX, Microsoft Dynamics NAV, JD Edwards, Oracle Financials, PeopleSoft. SAP R/3:is software from SAP. SAP is a world's leading provider of business software. SAP software runs in more than 120 countries world wide with more than 86000 customers. SAP solution is transforming your business process into a best-run business. SAP services are so good; they provide superior services and supports. SAP B1 (business one):software is also form SAP. It is made for SME (small and medium enterprise) segment to fulfill their requirement at lower cost. SAP B1 localization is quite good. It contains 15 core modules.

Report module is discontinued in 2009 due to purchase of Business Object, XL Reporter and Crystal Reports 2008 Basic(One Free License per customer) LN/BAAN:is software from Infor Global offers the breadth and depth of support for order-driven, project-based discrete manufacturing. It increase user productivity, operational efficiency, better control of processes, better communication and collaboration, enhance performance and scalability, leverage IT infrastructure and information assets and reduce costs. LN is ideal for companies in make-to-stock, assemble-to-order, make-to-order, or engineer-to-order environments. Microsoft Dynamics AX 2009 (Microsoft Axapta):is a comprehensive enterprise solution for mid-sized and larger organizations to help people improve productivity. Microsoft Dynamics ERP applications and services made for retailers, manufacturers, wholesale distributors, and service companies, doing business domestically or in multiple countries.

Microsoft Dynamics NAV (Microsoft Navision):is an ERP software to assist with finance, manufacturing, CRM (customer relationship management), SCM (supply chain management), analytics and e-commerce for small and medium-sized enterprises.

JD Edward EnterpriseOne:is an integrated applications suite of comprehensive enterprise resource planning software from Oracle that combines business value, standards-based technology, and deep industry experience into a business solution with a low total cost of ownership. Oracle E-Business Suite Financials :is easy to operate shared services across businesses and regions. It delivers pre-integrated financial and industry-specific processes. It provides consistent financial and operational information, dynamic planning, budgeting and forecasting, multi-dimensional profitability analysis, etc. Oracle PeopleSoft Enterprise:-

applications are designed for the most complex business requirements. They provide comprehensive business and industry solutions, enabling organizations to significantly improve performance, seamlessly integrate Web services into heterogeneous application environments, and a broad choice of technology infrastructure.