Designing Management Information Systems

Logical Processing Model (LPM)

LPM resulting from conversion of CPM by setting conversion of specific elements.

Thus, conversion from CPM to LPM is summarized below:

CPM LPM
Activities Activities
I/O Events I/O Events
Syncronization Syncronization
Complex Processes Operations or phases
Elementary Processes Actions or tasks
Rules of emission Rules of emission
- Frecvency of opperations
- Departments involved
- Type of operation (M – manual,
SA - semi-automatic, A - Automatic)

In developing the logical processing model we starts from the complex but unitary
information system, so that it helps ensure optimal functioning banking unit.
The system has homogeneous and specific processing. Processing provides specific
outcomes and results for analyzed compartments and sub-activities and results that constitute
the inputs data for further processing.

Example:
In the banking activity we define different activities, as deposits, settlements, cash operatios
regarding payments, intelements, lending contracts management, etc.
The updating of database is an recursive process, each database being subject to
operations as add, modify, delete, save or restore, plus processing operations and consultation
(calculation based on algorithms, indexing, sorting, completed by presenting results - list on
the screen or printer).

The operations have different frecvency (random frequency or a frequency determined

by rules and regulations in the financial-fiscal domain).

Example:
Operation regarding opening accounts, settlements are usually random frequency, at the
request of clients. Operations whereby is calculated numbers of interest are daily basis;
operations which create the trial balance, calculate depreciation, banking staff salaries have
frequency monthly; balance sheet have frequency semester.

For representing LPM can be used the block-operation representation or can be

adopted the complete tabular version (more practical option).
 Designing Management Information Systems

LPM for loans:

Code_op Name _op Type Frecvency

Op1 Request for loan M R
Op2 Final decision for loan M R
Op3 Preparation reimbursement A R
schedule
Op4 Credit repayment SA M
Op5 Bank indebtedness repayment SA R

Physical Modeling

Physical Communication Model (FCM)

FCM refer to LAN topology, related to MIS, where the number of workstations
depends on the number of functional departments and/or the number of employees
who will use the system.
FCM can be implemented using a mixed technology, starting from three basic LAN
topologies: star, ring and bus.

LAN General characterization

TOPOLOGY
STAR There is one common point of connection, which is also
the control point network (for example, a hub).
RING Nodes are connected by a continuous circle, physically
realized through a common transmission cable. Signals are
transmitted unidirectionally from one node to another via
transmission cable.
BUS Nodes are connected directly through a cable. Network has
a distributed control or central control. The bus has a
passive role because signals are not regenerated or
retransmitted or forwarded from/by each node.

FCM involves achieving the following specific elements:

1 - LAN interconnection topologies;
2 - LAN security.

1) LAN interconnection topologies specified at MLC has the following general

characteristics expected for banking/company level:
- computer networks located in a banking company are designed, produced and
managed from one central location;
 Designing Management Information Systems

- necessary interfaces for connection are dependent on the number of

interconnected functional departments, the number and the variety of workstations and
subsequent developments of MIS;
- various technologies are used to achieve computer network in order to create
interfaces;
- relative heterogeneity is present, dependent on the specific network topology and
the type of software used.

This interconnection of LAN topologies (defined by LCM) can be achieved in

several ways:
- direct interconnection, realized by two or more LANs that are physically in the
same office, bank, building floor or geographical area to form an extended LAN;
- interconnection using a backbone network , consists mainly of a LAN to which are
attached two or more other LANs, in which new network thus formed will have a
higher speed transmission than the speed of individual LANs;
- WAN interconnection, that assure connection for banking companies, subsidiaries,
agencies etc, located in different geographical areas.

2) LAN security is an extremely sensitive domain because it involves reading

operations, changing and updating applications and DBMS, under maximum security and
confidentiality. Must take into account all risks about unauthorized access both inside and
outside MIS for access, alteration or destruction of data.
Analysis considers security services offered and their implementation mechanisms.
ISO 7498-2 standard set up the following basic security services: access control,
authentication, data confidentiality, data integrity, non repudiating/rejecting data.

OSI (Open Systems Interconnection Basic Reference Model) was created by

International Standards Organization in 1984 to help companies to develop their
networks to work together. OSI is a security mechanisms that is focuses on the
following aspects:
- Encryption is an encoding process, performed by a security mechanism - using
public and private keys, used for traffic flow security and privacy;
- Digital Signature consists of a group of messages added to data source that allows
to a receiver to verify the issuer (user authentication) and data integrity;
- Access Control uses the authenticated identity to determine and validate the access
rights of that entity;
- Data integrity verifying data regarding to data field or data unit integrity;
- Authentication exchanges provide verification entity accessed through using
passwords;
- Completing Traffic involves generating a random traffic to achieve a constant rate
of traffic;
- Control allows directing physical solution of alternative communication;
- Writing data communicated between two or more entities involved their
authentication in terms of their origin, integrity, time and destination.
 Designing Management Information Systems

To illustrate the current situation FCM through direct interconnection, it uses Ethernet
LAN connection via a bridge (router).

Front Office Cash Desk

WS WS WS WS

Bridge/Router

WS WS WS WS

Loan Department Credit Committee

Physical Data Model (FDM)

FDM provides a description of all tables in the database.
Screens for inputs/outputs are used for updating database or for printing data as
reports or indicators/indexes.
Processing menus provides user interface by enabling automatic procedures for
processing or execution of a sequence of commands.

Example: FDM for loans.

 Designing Management Information Systems

Contracts
Endorses
No_contr, N, 6
Date_contr, D, 8 No_contr, N, 6
Value_contr, N, 9 CNP_e, N, 13
IR_contr, N, 3
Per_contr, N, 3

Clients Endorsers Payments

CNP_cl, N,13 CNP_e, N,13 Type_doc, T, 10

Name_cl, T,20 Name_e, T,20 No_doc, N, 6
First_name_cl, T,20 First_name_e, T,20 Date_doc, D, 8
District_cl, T,10 District_e, T,10 Ammount_doc, N, 9
City_cl, T, 10 City_e, T, 10 Expl_doc, T, 10
Str_cl, T, 10 Str_e, T, 10 CNP_cl, N,13
No_str_cl, N, 3 No_str_e, N, 3 CNP_e, N,13
Building_cl, T, 4 Building_e, T, 4
Appartment_cl, N, 3 Appartment_e, N, 3

Physical Processing Model (FPM)

FPM takes into account all the specific physical modeling elements (physical model
communications, physical data model, screens for inputs/outputs and processing menus)
and translate them into an operational system of automatic procedures, turn them into
processing model.

Criteria used in design MIS procedures are as follows:

a) Types and nature of specific processing core activities associated with a banking
company (opening accounts, cash receipts and payments, granting and repayment of
bank loans, bank closing day);
b) The nature and specificity of inputs, outputs and processing individual applications
that have been associated with specific core activities of a banking company;
c) The need to ensure a full centralized control of all processing performed on the
database by using efficient processing menus previously determined;
d) Minimize the number of procedures necessary for processing the database.