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Master of Business Administration-MBA Semester II MB0047 Management Information Systems 4 Credits (Book ID: B1136) Assignment Set- 1 (60

60 Marks)

1. What is MIS? Define the characteristics of MIS? What are the basic Functions of MIS? Give some Disadvantage of MIS?

Answer : A management information system (MIS) is a system that provides information needed to manage organizations effectively. Management information systems involve three primary resources: technology, information, and people. It's important to recognize that while all three resources are key components when studying management information systems, the most important resource is people[according to whom?]. Management information systems are regarded as a subset of the overall internal controls procedures in a business, which cover the application of people, documents, technologies, and procedures used by management accountants to solve business problems such as costing a product, service or a business-wide strategy. Management information systems are distinct from regular information systems in that they are used to analyze other information systems applied in operational activities in the organization.[2] Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making.

characteristics of MIS The Basic characteristics of an effective Management Information System are as follows: I. Management-oriented: The basic objective of MIS is to provide information support to the management in the organization for decision making. So an effective MIS should start its journey from appraisal of management needs, mission and goal of the business organization. It may be individual or collective goals of an organization. The MIS is such that it serves all the levels of management in an organization i.e. top, middle and lower level. II. Management directed: When MIS is management-oriented, it should be directed by the management because it is the management who tells their needs and requirements more effectively than anybody else. Manager should guide the MIS professionals not only at the stage of planning but also on development, review and implementation stages so that effective system should be the end product of the whole exercise in making an effective MIS.

III.

Integrated: It means a comprehensive or complete view of all the sub systems in the

organization of a company. Development of information must be integrated so that all theoperational and functional information sub systems should be worked together as a singleentity. This integration is necessary because it leads to retrieval of more meaningful anduseful information. I V. Common data flows: The integration of different sub systems will lead to a common data flow which will further help in avoiding duplicacy and redundancy in data collection, storage and processing. For example, the customer orders are the basis for many activities in an organization viz. billing, sales for cashing, etc. Data is collected by a system analyst from its original source only one time. Then he utilizes the data with minimum number of processing procedures and uses the information for production output documents and reports in small numbers and eliminates the undesirable data. This will lead to elimination of duplication that simplify the operations and produce an efficient information system. IV. Heavy planning-element: The preparation of MIS is not a one or two day exercise. It usually takes 3 to 5 years and sometimes a much longer period. So the system expert has to keep 2 things in mind one is that he has to keep future objectives as well as the firms information well in advance and also he has to keep in mind that his MIS will not be obsolete before it gets into action. V. Sub System concept: When a problem is seen in 2 sub parts, then the better solution to the problem is possible. Although MIS is viewed as a single entity but for its effective use, it should be broken down in small parts or subsystems so that more attention and insight is paid to each sub system. Priorities will be set and phase of implementation will be made easy. While making or breaking down the whole MIS into subsystems, it should be kept in mind that the subsystems should be easily manageable. VI. Common database: This is the basic feature of MIS to achieve the objective of using MIS in business organizations. It avoids duplication of files and storage which leads to reduction in costs. Common database means a Super file or Master file which consolidates and integrates data records formerly stored in many separate data files. The organization of the database allows it to be accessed by each subsystem and thus, eliminates the necessity of duplication in data storage, updating, deletion and protection. VII. Computerized: MIS can be used without a computer. But the use of computers increases the effectiveness and the efficiency of the system. The queries can be handled more quickly and efficiently with the computerized MIS. The other benefits are accuracy, storage capacity and timely information. VIII. User friendly/Flexibility: An MIS should be flexible i.e. there should be room for

further modification because the MIS takes much time in preparation and ourenvironment is dynamic in nature.MIS should be such that it should be usedindependently by the end user so that they do not depend on the experts. IX. Information as a resource: Information is the major ingredient of any MIS. So, an MIS should be treated as a resource and managed properly basic Functions of MIS

There are many different functions involved in a successful Management Information Systems (MIS) department. There has to be people skilled in both software and hardware installations. All employees must also maintain good people skills. The Surry County MIS Department deals with every department in the County in some form or another. The MIS department is responsible for all computers that are on the Surry County Network. At the present time the number of PCs that are supported by MIS Department is around 300 and is growing everyday. Not only does the MIS department support PCs we also maintain County servers. These servers control the Tax, Finance, E911, Sheriff, EMS, Fire Marshal, and many other departments' daily activities. Without these servers in proper working order things in Surry County would be a lot different than you know them to be.

Breakdown Of Departmental Functions

There are 10 basic functions of an Management Information Systems department. These functions consist of the following: help desk, support teams, service and support, training, networking, purchasing, installations, research and development, operations, planning, budget. Explaining Each Of The Functions

Help Desk: Service support calls and help solve problems. All calls entered into helpdesk database for quick update and retrieval. Support Teams: Teams assigned to different department and projects to better offer ongoing knowledge and expertise in any single area. Service and Support: Repair hardware, software support, warranty service. Provide onsite service to all County sites. Provide phone support. Act as liaison between the department head and the vendor support team.

Training: Train employees on computer basics, office productivity software and specialized software individual to each department. Provide training facility for vendor use. Networking: LAN / WAN design, implementation and support. File, print, e-mail, www server support. Backup and anti-virus server support. Ethernet, and fiber optic support. Purchasing: Specifying purchasing specs. Maintaining standards for purchases. Provide quote, assist in maintaining fixed assets, assist in grant proposals. Installations: New hardware and software. Research and Development: Review of current trends in the industry, attend training in new technology, and evaluating new systems. Operations: Daily, weekly, and monthly maintenance such as backups, server auditing, and system usage checks. Light data entry and modifications. Planning and Budget: Maintaining relationships with departments and their priority areas. Planning for long and short-term projects and budget review for future years. Disadvantages
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Depending on organization deployment, usage and extraneous factors, some disadvantages related to Management Information Systems can come to the fore. Allocation of budgets for MIS upgrades, modifications and other revisions can be quite tricky at times. If budgets are not allocated uniformly or as per immediate requirements, key functionalities might get effected and benefits might not be realized consistently. Integration issues with legacy systems can affect the quality of output and vital business intelligence reports. Constant Monitoring Issues

Change in management, exits or departures of department managers and other senior executives has a broad effect on the working and monitoring of certain organization practices including MIS systems. Since MIS is a critical component of an organization's risk management strategy and allied systems, constant monitoring is necessary to ensure its effectiveness. Quality of inputs into MIS needs to be monitored; otherwise consistency in the quality of data and information generated gets effected. Managers are not able to direct business, operational and decision-making activities with the requisite flexibility. 2. Explain Knowledge based system? Explain DSS and OLAP with example? Answer : Knowledge based system are the systems based on knowledge base. Knowledge base is the database maintained for knowledge management which provides the means of data collections, organization and retrieval of knowledge. The knowledge management manages the domain where it creates and enables organization for adoption of insights and experiences.

There are two types of knowledge bases.

a. Machine readable knowledge bases: The knowledge base helps the computer to process through. It makes the data in the computer readable code which makes the operator to perform easier. Such information sare used by semantic web. Semantic web is a web that will make a description of the system that a system can understand. b. Human readable knowledge bases: They are designed to help people to retrieve knowledge. The information need to be processed by the reader. The reader can access the information and synthesize their own. A decision support system (DSS) is a computer-based information system that supports business or organizational decision-making activities. DSSs serve the management, operations, and planning levels of an organization and help to make decisions, which may be rapidly changing and not easily specified in advance. DSSs include knowledge-based systems. A properly designed DSS is an interactive software-based system intended to help decision makers compile useful information from a combination of raw data, documents, personal knowledge, or business models to identify and solve problems and make decisions. online analytical processing, or OLAP is an approach to swiftly answer multi-dimensional analytical queries.[1] OLAP is part of the broader category of business intelligence, which also encompasses relational reporting and data mining.[2] Typical applications of OLAP include business reporting for sales, marketing, management reporting, business process management (BPM),[3] budgeting and forecasting, financial reporting and similar areas, with new applications coming up, such as agriculture.[4] The term OLAP was created as a slight modification of the traditional database term OLTP (Online Transaction Processing).

3. What are Value Chain Analysis & describe its significance in MIS? Explain what is meant by BPR? What is its significance? How Data warehousing & Data Mining is useful in terms of MIS? Answer : The value chain is a systematic approach to examining the development of competitive advantage. It was created by M. E. Porter in his book, Competitive Advantage (1980). The chain consists of a series of activities that create and build value. They culminate in the total value delivered by an organisation. The 'margin' depicted in the diagram is the same as added value. The organisation is split into 'primary activities' and 'support activities. Business process re-engineering is the analysis and design of workflows and processes within an

organization. According to Davenport (1990) a business process is a set of logically related tasks performed to achieve a defined business outcome. Re-engineering is the basis for many recent developments in management. The cross-functional team, for example, has become popular because of the desire to re-engineer separate functional tasks into complete cross-functional processes. How Data warehousing & Data Mining is useful in terms of MIS? Data mining is primarily used as a part of information system today, by companies with a strong consumer focus - retail, financial, communication, and marketing organizations. It enables these companies to determine relationships among "internal" factors such as price, product positioning, or staff skills, and "external" factors such as economic indicators, competition, and customer demographics. And, it enables them to determine the impact on sales, customer satisfaction, and corporate profits. Finally, it enables them to "drill down" into summary information to view detail transactional data. With data mining, a retailer could use point-of-sale records of customer purchases to send targeted promotions based on an individual s purchase history. By mining demographic data from comment or warranty cards, the retailer could develop products and promotions to appeal to specific customer segments. Data Mining is a collaborative tool which comprises of database systems, statistics, machine learning, visualization and information science. Based on the data mining approach used, different techniques form the other discipline can be used such as neural networks, artificial intelligence, fuzzy logic, knowledge representation, high performance computing and inductive logic programming. Data Warehouse is defined as collection of database which is referred as relational database for the purpose of querying and analysis rather than just transaction processing. Data warehouse is usually maintained to store heuristic data for future use. Data warehousing is usually used to generate reports. Integration and separation of data are the two basic features need to be kept in mind while creating a data warehousing. The main output from data warehouse systems are; either tabular listings (queries) with minimal formatting or highly formatted "formal" reports on business activities. This becomes a convenient way to handle the information being generated by various processes. Data warehouse is an archive of information collected from wide multiple sources, stored under a unified scheme, at a single site. This data is stored for a long time permitting the user an access to archived data for years. The data stored and the subsequent report generated out of a querying process enables decision making quickly.

4. Explain DFD & Data Dictionary? Explain in detail how the information requirement is determined for an organization? Answer : A data dictionary is a structured repository of data about data. It is a set of rigorous definitions of all DFD data elements and data structures. Most of the data flow in the DFD are specified here. Some of the most obvious ones are not shown here. The data dictionary entry for weekly timesheet specifies that this data flow is composed of three basic data entities - the employee name, employee ID and many occurrences of the two - tuple consisting of regular hours and overtime hours. The data dictionary for this DFD is shown below: Weekly timesheet = Emplyee_Name + Employee_ID + {Regular_hours + overtime_hours} Pay_rate = {Horly | Daily | Weekly} + Dollar_amount

1. 2. 3. 4. 5. 6.

Employee_Name = Last + First + Middle_Initial Employee_ID = digit + digit + digit + digit Once we have constructed a DFD and its associated data dictionary, we have to somehow verify that they are "correct". There can be no formal verification of a DFD, because what the DFD is modeling is not formally specify anywhere against which verification can be done. Human processes and rule of thumb must be used for verification. In addition to the walkthrough with the client, the analyst should look for common errors. Some common errors are Unlabeled data flows. Missing data flows: Information required by a process is not available. Extraneous data flows: Some information is not bein used in the process Consistency not maintained during refinement Missing processes Contains some control information The DFDs should be carefully scrutinized to make sure that all the processes in the physical environment are shown in the DFD. It should also be ensured that none of the data flows is actually carrying control information.

5. What is ERP? Explain its existence before and its future after? What are the advantages & Disadvantages of ERP? What is Artificial Intelligence? How is it different from Neural Networks? Answer : Enterprise resource planning (ERP) integrates internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, CRM, etc. ERP systems automate this activity with an integrated software application. Its purpose is to facilitate the flow of information between all business functions inside the boundaries of the organization and manage the connections to outside stakeholders, ERP came to represent a larger whole, reflecting the evolution of application integration beyond manufacturing.[7] Not all ERP packages were developed from a manufacturing core. Vendors variously began with accounting, maintenance and human resources. ERP systems initially focused on automating back office functions that did not directly affect customers and the general public. Advantages of ERP The fundamental advantage of ERP is that integrating the myriad processes by which businesses operate saves time and expense. Decisions can be made more quickly and with fewer errors. Data becomes visible across the organization. Tasks that benefit from this integration include[23]: Sales forecasting, which allows inventory optimization Order tracking, from acceptance through fulfillment Revenue tracking, from invoice through cash receipt Matching purchase orders (what was ordered), inventory receipts (what arrived), and costing (what the vendor invoiced) Disadvantages of ERP Customization is problematic. Re engineering business processes to fit the ERP system may damage competitiveness and/or divert focus from other critical activities ERP can cost more than less integrated and/or less comprehensive solutions.

High switching costs increase vendor negotiating power vis a vis support, maintenance and upgrade expenses. Overcoming resistance to sharing sensitive information between departments can divert management attention. Integration of truly independent businesses can create unnecessary dependencies. Extensive training requirements take resources from daily operations. Artificial Intelligence Artificial intelligence (AI) is the intelligence of machines and the branch of computer science that aims to create it. AI textbooks define the field as "the study and design of intelligent agents"[2] where an intelligent agent is a system that perceives its environment and takes actions that maximize its chances of success.[3] John McCarthy, who coined the term in 1956,[4] defines it as "the science and engineering of making intelligent machines. Theoretical and computational neuroscience is the field concerned with the theoretical analysis and computational modeling of biological neural systems. Since neural systems are intimately related to cognitive processes and behaviour, the field is closely related to cognitive and behavioural modeling. The aim of the field is to create models of biological neural systems in order to understand how biological systems work. To gain this understanding, neuroscientists strive to make a link between observed biological processes (data), biologically plausible mechanisms for neural processing and learning (biological neural network models) and theory (statistical learning theory and information theory).

6. Distinguish between closed decision making system & open decision making system? What is What if analysis? Why is more time spend in problem analysis & problem definition as compared to the time spends on decision analysis? Answer: CLASSIFICATION OF DECISION MAKING SYSTEMS The decision making systems can be classified in a number of ways. There are two types of systems based on the managers knowledge about the environment. A. Closed decision making system: If the manager operates in a known environment then it is a closed decision making system. The conditions of the closed decision making system are: (a) The manager has a known set of decision alternatives and knows their outcomes fully in terms of value, if implemented. (b) The manager has a model, a method or a rule whereby the decision alternatives can be generated, tested, and ranked. (c) The manager can choose one of them, based on some goal or objective. A few examples are: 1. 2. a product mix problem, an examination system to declare pass or fail, or

3.

an acceptance of the fixed deposits.

B. Open decision making system: If the manager operates in an environment not known to him, then the decision making system is termed as an open decision making system. The conditions of this system are: (a) The manager does not know all the decision alternatives. (b) The outcome of the decision is also not known fully. The knowledge of the outcome may be a probabilistic one. (c) No method, rule or model is available to study and finalize one decision among the set of decision alternatives. (d) It is difficult to decide an objective or a goal and, therefore, the manager resorts to that decision, where his aspirations or desires are met best. Deciding on the possible product diversification lines, the pricing of a new product, and the plant location, are some decision making situations which fall in the category of the open decision making systems. The MIS tries to convert every open system to a closed decision making system by providing information support for the best decision. The MIS gives the information support, whereby the manager knows more and more about the environment and the outcomes, he is able to generate the decision alternatives, test them and select one of them. A good MIS achieves this. What if analysis The real power in Excel comes in its ability to perform multiple mathematical calculations for you. One of the tools in Excel that you can use to perform these calculations is a Data tool called What-If Analysis. What-If analysis allows you to see the effect that different values have in formulas. Problem-Solving and Decision-Making Process Problem solving is a process in which we perceive and resolve a gap between a present situation and a desired goal, with the path to the goal blocked by known or unknown obstacles. In general, the situation is one not previously encountered, or where at least a specific solution from past experiences is not known. In contrast, decision making is a selection process where one of two or more possible solutions is chosen to reach a desired goal. The steps in both problem solving and decision making are quite similar. In fact, the terms are sometimes used interchangeably.

Personality Type and Problem Solving Researchers have investigated the relationship of Jung's theory of individuals' preferences and their approach to problem solving and decision making The following is a summary of their findings.

When solving problems, individuals preferring introversion will want to take time to think and clarify their ideas before they begin talking, while those preferring extraversion will want to talk through their ideas in order to clarify them. In addition, Is will more likely be concerned with their own understanding of important concepts and ideas, while Es will continually seek feedback from the environment about the viability of their ideas. Sensing individuals will be more likely to pay attention to facts, details, and reality. They will also tend to select standard solutions that have worked in the past. Persons with intuition preferences, on the other hand, will more likely attend to the meaningfulness of the facts, the relationships among the facts, and the possibilities of future events that can be imagined from these facts. They will exhibit a tendency to develop new, original solutions rather than to use what has worked previously. Individuals with a thinking preference will tend to use logic and analysis during problem solving. They are also likely to value objectivity and to be impersonal in drawing conclusions. They will want solutions to make sense in terms of the facts, models, and/or principles under consideration. By contrast, individuals with a feeling preference are more likely to consider values and feelings in the problemsolving process. They will tend to be subjective in their decision making and to consider how their decisions could affect other people. The final dimension to be considered describes an individual's preference for either judging (using T or F) or perceiving (using S or N). Js are more likely to prefer structure and organization and will want the problem-solving process to demonstrate closure. Ps are more likely to prefer flexibility and adaptability. They will be more concerned that the problem-solving process considers a variety of techniques and provides for unforeseen change. Master of Business Administration-MBA Semester II MB0047 Management Information Systems 4 Credits (Book ID: B1136) Assignment Set- 2 (60 Marks) 1. How hardware & software support in various MIS activities of the organization? Explain the transaction stages from manual system to automated systems? Answer : 1. How hardware & software support in various MIS activities of the organization? Explain the transaction stages from manual system to automated systems? Answer: Hardware support for MIS Generally hardware in the form of personal computers and peripherals like printers, fax machines, copier, scanners etc are used in organization to support various MIS activities of the organization. Advantages of a PC: you can find the following advantages a personal computer offers: a)S p eed A PC can process data at a very high speed. It can process millions of instructions within fraction of seconds. b)S t orage A PC can store large quantity of data in a small space. It eliminates the need of storing the conventional office flat files and box files which requires lots of

space. The storage system in a PC is such that the information can be transferred from one place to another place in electronic form. c)Commu n i cat i on A PC on the network can offer great support as a communicator in communicating information in the form of text and images. Today a PC with internet is used as a powerful tool of communication for every business activity. d)Accu ra cy A PC is highly reliable in the sense that it could be used to perform calculations continuously for hours with a great degree of accuracy. It is possible to obtain mathematica results correct up to a great degree of accuracy. e)Con feren ci n g A PC with internet offers facility of video conferencing worldwide. Business people across the globe travel a lot to meet their business partner, colleagues, and customers etc to discuss about business activities. By video conferencing inconvenience of traveling can be avoided. A block diagram of a computer may be represented as Block diagram of a Computer Input unit is used to give input to the processor. Examples of input unit Keyboard, scanner, mouse, bar code reader etc. A processor refers to unit which processes the input received the way it has been instructed. In a computer the processor is the CPU Central Processing Unit. It does all mathematical calculations, logical tasks, storing details in the memory etc. Output unit is used to give output s from the computer. Examples of output unit Monitor, printer, speakers etc. Transformation stage Manual systems to automated systems The value of Information is not present day discovery. We have always observed that the Information is the asset of any organization. The existence of information is since the Big bang happened and then on it went on. But the value of information is being used only after the industrial revolution. Before, it was only in the record which we are using now in an efficient way. The first information was binary. Information is generated by interactions; information is by interaction, as without comparison, without a context, without interaction, there is nothing. Traditional information systems are said to contain data, which is then processed. The processed data is called information. The processing of data takes place by selecting the required fact and organizing it in a way to form meaningful information which is used for some organizational needs.

In Manual systems, a series of action takes which may be similar as well as different to processing in traditional systems. For instance, in hospital information systems the patient details can be viewed by the administrator as well as patient. But the views perceived by these are different. One may view it as a record to take print and other may be the source of his ailment description. What is common to the two systems is the idea of transformation. Transformation occurs when systems participants are faced with cues from their environment, which may be data or situations, and the participants then define and redefine what to do next, either processing data or developing a situation, altering the system each time to transform it to a state closer to the participants goal or objective. When a fact from either type of system is presented for manipulation, a transformation can occur. Thus, transformation is common to both types of systems. A transformation had to necessarily go through the following stages a) appraisal of the procedures b) types of documents c) storage systems d) formulations and coding. 2. Explain the various behavioral factors of management organization? As per Porter, how can performance of individual corporations be determined? Answer: Behavioral factors The implementation of computer based information systems in general and MSS in particular is affected by the way people perceive these systems and by how they behave in accepting them. User resistance is a major behavioral factor associated with the adoption of new systems. The following are compiled by Jiang et al. (2000); reasons that employees resist new systems: Change in job content Loss of status Change in interpersonal relationships Loss of power Change in decision making approach Uncertainty or unfamiliarity or misinformation Job security The major behavioral factors are a) Decision styles symbolic processing of AI is heuristic; DSS and ANN are analytic

b) Need for explanation ES provides explanation, ANN does not, DSS may provide partial explanation. Explanation can reduce resistance to change c) Organizational climate some organizations lead and support innovations and new technologies whereas others wait and lag behind in making changes. d) Organizational expectations over expectation can result in disappointments and termination of innovation. Over expectation was observed in most early intelligent systems. e) Resistance to change can be strong in MSS because the impacts may be significant. Performance Out of many possible interpretations of a strategy an organization adopts in business, it is found that a majority is concerned with competition between corporations. Competition means cultivating unique strengths and capabilities, and defending them against imitation by other firms. Another alternative sees competition as a process linked to innovation in product, market, or technology. Strategic information systems theory is concerned with the use of information technology to support or sharpen an enterprise s competitive strategy. Competitive strategy is an enterprise s plan for achieving sustainable competitive advantage over, or reducing the edge of, its adversaries. The performance of individual corporations is determined by the extent to which they manage the following (as given by Porter) a) the bargaining power of suppliers; b) the bargaining power of buyer; c) the threat of new entrants; d) the threat of substitute products; and e) Rivalry among existing firms. Porter s classic diagram representing these forces is indicated below

3. Compare various types of development aspect of Information System? Explain the various stages of SDLC? Answer: a) Development and Implementation of the MIS Once the plan for MIS is made, the development of the MIS, calls for determining the strategy of development. As discussed earlier, the plan consists of various systems and subsystems. The development strategy determines where to begin and in what sequence the development can take place with the sole objective of assuring the information support. The choice of the system or the sub-system depends on its position in the total MIS plan, the size of the system, the user s understanding of the systems and the complexity and its interface with other systems. The designer first develops systems independently and starts integrating them with other systems, enlarging the system scope and meeting the varying information needs.

Determining the position of the system in the MIS is easy. The real problem is the degree of structure, and formalisation in the system and procedures which determine the timing and duration of development of the system. Higher the degree of structured-ness and formalisation, greater is the stabilisation of the rules, the procedures, decision-making and the understanding of the overall business activity. Here, it is observed that the user s and the designer s interaction is smooth, and their needs are clearly understood and respected mutually. The development becomes a method of approach with certainty in input process and outputs. b) Prototype Approach When the system is complex, the development strategy is Prototyping of the System. Prototyping is a process of progressively ascertaining the information needs, developing methodology, trying it out on a smaller scale with respect to the data and the complexity, ensuring that it satisfies the needs of the users, and assess the problems of development and implementation. This process, therefore, identifies the problem areas, inadequacies in the prototype vis--vis fulfilment of the information needs. The designer then takes steps to remove the inadequacies. This may call upon changing the prototype of the system, questioning the information needs, streamlining the operational systems and procedures and move user interaction. In the prototyping approach, the designer s task becomes difficult, when there are multiple users of the same system and the inputs they use are used by some other users as well. For example, a lot of input data comes from the purchase department, which is used in accounts and inventory management. The attitudes of various users and their role as the originators of the data need to be developed with a high degree of positivism. It requires, of all personnel, to appreciate that the information is a corporate resource, and all have to contribute as per the designated role by the designer to fulfil the corporate information needs. When it comes to information the functional, the departmental, the personal boundaries do not exist. This call upon each individual to comply with the design needs and provide without fail the necessary data inputs whenever required as per the specification discussed and finalised by the designer. Bringing the multiple users on the same platform and changing their attitudes toward information, as a corporate resource, is the managerial task of the system designer. The qualification, experience, knowledge, of the state of art, and an understanding of the corporate business, helps considerably, in overcoming the problem of changing the attitudes of the multiple users and the originators of the data.

c) Life Cycle Approach There are many systems or sub-systems in the MIS which have a life cycle, that is, they have birth and death. Their emergence may be sudden or may be a part of the business need, and they d) Implementation of the Management Information System The implementation of the system is a management process. It brings about organisational change; it affects people and changes their work style. The process evokes a behaviour response which could be either favourable or unfavourable depending upon the strategy of system implementation. In the process of implementation, the system designer acts as a change agent or a catalyst. For a successful implementation he has to handle the human factors carefully. The user of the system has a certain fear complex when a certain cultural work change is occurring. The first and the foremost fear is about the security to the person if the change-over from the old to new is not a smooth one. Care has to be taken to assure the user that such fears are baseless and the responsibility, therefore, rests with the designer. The second fear is about the role played by the person in the organisation and how the change affects him. On many occasions, the new role may reduce his importance in the organisation, the work design may make the new job impersonal, and a fear complex may get reinforced that the career prospects may be affected. There are certain guidelines for the systems designer for successful implementation of the system. The system designer should not question beyond a limit the information need of the user. 1. Not to forget that his role is to offer a service and not to demand terms. 2. Remember that the system design is for the use of the user and it is not the designer s prerogative to dictate the design features. In short, the designer should respect the demands of the user. 3. Not to mix up technical needs with the information needs. He should try to develop suitable design with appropriate technology to meet the information needs. The designer should not recommend modifications of the needs, unless technically infeasible. 4. Impress upon the user the global nature of the system design which is required to meet System development cycle stages are sometimes known as system study. System concepts which are important in developing business information systems expedite problem solving and improve the quality of decision-making. The system analyst has to do a lot in this connection. They are confronted with the challenging task of creating new systems an planning major changes in the organization. The system analyst gives a system development project, meaning and direction. The typical breakdown of an information systems life cycle includes a feasibility study, requirements, collection and analysis, design, prototyping, implementation, validation, testing and operation. It may be represented

4. Compare & Contrast E-enterprise business model with traditional business organization model? Explain how in E-enterprise manager role & responsibilities are changed? Explain how manager is a knowledge worker in E-enterprise? Answer: It is widely acknowledged today that new technologies, in particular access to the Internet, tend to modify communication between the different players in the professional world, notably:
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relationships between the enterprise and its clients, the internal functioning of the enterprise, including enterprise-employee relationships, the relationship of the enterprise with its different partners and suppliers.

The term "e-Business" therefore refers to the integration, within the company, of tools based on information and communication technologies (generally referred to as business software) to improve their functioning in order to create value for the enterprise, its clients, and its partners. E-Business no longer only applies to virtual companies (called click and mortar) all of whose activities are based on the Net, but also to traditional companies (called brick and mortar). The term e-Commerce (also called Electronic commerce), which is frequently mixed up with the term e-Business, as a matter of fact, only covers one aspect of e-Business, i.e. the use of an electronic support for the commercial relationship between a company and individuals. The purpose of this document is to present the different underlying "technologies" (in reality, organizational modes based on information and communication technologies) and their associated acronyms. Creation of value The goal of any e-Business project is to create value. Value can be created in different manners:
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As a result of an increase in margins, i.e. a reduction in production costs or an increase in profits. E-Business makes it possible to achieve this in a number of different ways: o Positioning on new markets o Increasing the quality of products or services o Prospecting new clients o Increasing customer loyalty o Increasing the efficiency of internal functioning As a result of increased staff motivation. The transition from a traditional activity to an e-Business activity ideally makes it possible to motivate associates to the extent that: o The overall strategy is more visible for the employees and favors a common culture o The mode of functioning implies that the players assume responsibilities o Teamwork favors improvement of competences As a result of customer satisfaction. As a matter of fact, e-Business favors: o a drop in prices in connection with an increase in productivity o improved listening to clients

products and services that are suitable for the clients' needs a mode of functioning that is transparent for the user As a result of privileged relationships with the partners. The creation of communication channels with the suppliers permits: o Increased familiarity with each other o Increased responsiveness o Improved anticipation capacities o Sharing of resources that is beneficial for both parties
o o

An e-Business project can therefore only work as soon as it adds value to the company, but also to its staff, its clients, and partners. Time To Market "Time To Market" is the time that is necessary to bring a product on the market from a time an idea was put forward. Worldwide, new technologies provide an incredible source of inspiration to formalize ideas while making Time-To-Market even more critical because of the rapid flow of information and speedy competition. Reduction of costs and ROI The use of new technologies for the functioning of an enterprise makes it possible to reduce the costs on the different levels of its organization in time. Nonetheless, implementation of such a project is generally very costly and necessarily leads to organizational changes, which may cause upheaval in the practices of its employees. It is therefore essential to determine the return on investment (ROI) of such a project, i.e. the difference between the expected profits and the required overall investment, taking into account the cost of human resources mobilized.

5. What do you understand by service level Agreements (SLAs)? Why are they needed? What is the role of CIO in drafting these? Explain the various security hazards faced by an IS? Answer: Security Hazards Security of the information system can be broken because of the following reasons: i)M alfu n ct i on s: In this type of security hazard, all the components of a system are involved. People, software and hardware errors cause the biggest problem. More dangerous are the problems which are created by human beings due to the omission, neglect and incompetence. ii)Fraud and unauthorized access: This hazard is due to dishonesty, cheating or deceit. This can be done through a) Infiltration and industrial espionage b) Tapping data from communication lines

c) Unauthorized browsing through lines by online terminals, etc. iii) Power and communication failure: In some locations they are the most frequent hazards than any other else because availability of both of them depends upon the location. Sometimes communication channel are busy or noisy. There are power cuts and sometimes high voltage surge destroys a sensitive component of the computer. iv)Fire hazard: it can happen because of electrical short circuits, flammable liquids etc ) Sabotage and riots: sometimes the employees destroy the computer centre in case of strike, lockout or there may be chances of riots in the area. vi) Natural Disasters: Natural disasters are not controllable. They are not frequent hazards but if they happen they destroy the things or ruin them. Examples are earthquake, floods, tornadoes and lightening. vii) General hazards: this category covers many more hazards which are not covered anywhere and difficult to define and come spontaneously. 15.3.1 SecurityTechniques Security can be maintained at two levels: physical and procedural. Physical Security Physical security is further divided into: a) Physical Controlled Access: Access control protection is the basis to a security system. If at entry level on can stop unwanted or unauthorized persons then half of the problems can be solved and harm can be reduced. This can be done with the help of following methods guard and special escorts, sign-in/sign out, badges, closed circuit monitors, paper shredders, one way emergency door and a combination of various approach or control devices. b) Physical location: Location of computer system is an important consideration in security planning. This can be achieved by having any one of them 1. Locating the computer centre at remote location that is distant from airport, heavy traffic, and steam boiler. 2. The computer centre can be located in a separate building 3. The computer site should not contain any sign identified by an outsider. 4. Power and communication lines are under ground. Air intake devices should be duly fenced and placed very high. 5. Back up of the system is kept at a distant or places other than computer centre. Procedural SecurityTechniques

Physical security deals with a number of hazards like fire, natural disaster, etc. while procedural controls deals with access control only. Sometimes procedural techniques take the help of physical techniques. Procedural techniques comprises of the following ways: a)In t egri t y In the context of security the integrity means the assurance that the system is functionally correct and complete. The absence of integrity makes other concept ineffective. If a user is authorized to use item A from a file, he has seen only item A and not any other item of the file. Integrity is also applicable when person has finished his work then his information should be erased from the screen. b)Iso lat i on In any system in which a high level of security is to be maintained, all components of the computer should be used in isolation. In computer based information system, this isolation should be maintained between users and information as well as between hardware and software resources and processes. c)Id en t i fi cat i on If a system uses the technique of isolation then they must have the ability to identify authorized and proper interfaces. The system must be able to distinguish which user can access the information or which cannot. d)Au th ori zat i on Once a person has been identified, the question arises what authority he has? To maintain the security, procedures must be set up to determine who has access to what files, who has the right to make addition and deletions, and who is responsible for administration of the database? e)Au t h ent i cat i on It is an action which determines the validity of something. For this one of the following processes must be followed1) Physical observation 2) Periodic disconnects and call back procedures 3) Periodic requests for further information or re-verification from the user. f)M on it orin g Monitoring is the act of watching or checking or guarding something. 6. Case Study: Information system in a restaurant. Answer: A waiter takes an order at a table, and then enters it online via one of the six terminals located in the restaurant dining room. The order is routed to a printer in the appropriate preparation area: the cold item printer if it is a salad, the hot-item printer if it is a hot sandwich or the bar printer if it is a drink. A customers meal check-listing (bill) the items ordered and the respective prices are automatically generated. This ordering system eliminates the old three-carbon-copy guest check system as well as any problems caused by a waiters handwriting. When the

kitchen runs out of a food item, the cooks send out an out of stock message, which will be displayed on the dining room terminals when waiters try to order that item. This gives the waiters faster feedback, enabling them to give better service to the customers. Other system features aid management in the planning and control of their restaurant business. The system provides up-to-the-minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales. This helps management plan menus according to customers tastes. The system also compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. In addition, whenever an order is voided, the reasons for the void are keyed in. This may help later in management decisions, especially if the voids consistently related to food or service. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. All potential users were asked to give their impressions and ideas about the various systems available before one was chosen. Questions: 1. In the light of the system, describe the decisions to be made in the area of strategic planning, managerial control and operational control? What information would you require to make such decisions? 2. What would make the system a more complete MIS rather than just doing transaction processing? 3. Explain the probable effects that making the system more formal would have on the customers and the management. Solution: 1. A management information system (MIS) is an organized combination of people, hardware, communication networks and data sources that collects, transforms and distributes information in an organization. An MIS helps decision making by providing timely, relevant and accurate information to managers. The physical components of an MIS include hardware, software, database, personnel and procedures. Management information is an important input for efficient performance of various managerial functions at different organization levels. The information system facilitates decision making. Management functions include planning, controlling and decision making. Decision making is the core of management and aims at selecting the best alternative to achieve an objective. The decisions may be strategic, tactical or technical. Strategic decisions are characterized by uncertainty. They are future oriented and relate directly to planning activity. Tactical decisions cover both planning and controlling. Technical decisions pertain to implementation of specific tasks through appropriate technology. Sales region analysis, cost analysis, annual budgeting, and relocation analysis are examples of decision-support systems and management information systems. There are 3 areas in the organization. They are strategic, managerial and operational control. Strategic decisions are characterized by uncertainty. The decisions to be made in the area of strategic planning are future oriented and relate directly to planning activity. Here basically planning for future that is budgets, target markets, policies, objectives etc. is done. This is basically a top level where up-to-the minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales is provided. The top level where

strategic planning is done compares the weekly sales totals versus food costs, allowing planning for tighter cost controls. Executive support systems function at the strategic level, support unstructured decision making, and use advanced graphics and communications. Examples of executive support systems include sales trend forecasting, budget forecasting, operating plan development, budget forecasting, profit planning, and manpower planning. The decisions to be made in the area of managerial control are largely dependent upon the information available to the decision makers. It is basically a middle level where planning of menus is done and whenever an order is voided, the reasons for the void are keyed in which later helps in management decisions, especially if the voids are related to food or service. The managerial control that is middle level also gets customer feedback and is responsible for customer satisfaction. The decisions to be made in the area of operational control pertain to implementation of specific tasks through appropriate technology. This is basically a lower level where the waiter takes the order and enters it online via one of the six terminals located in the restaurant dining room and the order is routed to a printer in the appropriate preparation area. The items ordered list and the respective prices are automatically generated. The cooks send out of stock message when the kitchen runs out of a food item, which is basically displayed on the dining room terminals when waiter tries to order that item. This basically gives the waiters faster feedback, enabling them to give better service to the customers. Transaction processing systems function at the operational level of the organization. Examples of transaction processing systems include order tracking, order processing, machine control, plant scheduling, compensation, and securities trading. The information required to make such decision must be such that it highlights the trouble spots and shows the interconnections with the other functions. It must summarize all information relating to the span of control of the manager. The information required to make these decisions can be strategic, tactical or operational information. Advantages of an online computer system:
y y y y

Eliminates carbon copies Waiters handwriting issues Out-of-stock message Faster feedback, helps waiters to service the customers

Advantages to management:
y y y

Sales figures and percentages item-wise Helps in planning the menu Cost accounting details

2. If the management provides sufficient incentive for efficiency and results to their customers, it would make the system a more complete MIS and so the MIS should support this culture by providing such information which will aid the promotion of efficiency in the management services and operational system. It is also necessary to study the keys to successful Executive Information System (EIS) development and operation. Decision support systems would also make the system a complete MIS as it constitutes a class of computer-based information systems including knowledge-based systems that support decision-making activities. DSSs

serve the management level of the organization and help to take decisions, which may be rapidly changing and not easily specified in advance. Improving personal efficiency, expediting problem solving (speed up the progress of problems solving in an organization), facilitating interpersonal communication, promoting learning and training, increasing organizational control, generating new evidence in support of a decision, creating a competitive advantage over competition, encouraging exploration and discovery on the part of the decision maker, revealing new approaches to thinking about the problem space and helping automate the managerial processes would make the system a complete MIS rather than just doing transaction processing. 3. The management system should be an open system and MIS should be so designed that it highlights the critical business, operational, technological and environmental changes to the concerned level in the management, so that the action can be taken to correct the situation. To make the system a success, knowledge will have to be formalized so that machines worldwide have a shared and common understanding of the information provided. The systems developed will have to be able to handle enormous amounts of information very fast. An organization operates in an ever-increasing competitive, global environment. Operating in a global environment requires an organization to focus on the efficient execution of its processes, customer service, and speed to market. To accomplish these goals, the organization must exchange valuable information across different functions, levels, and business units. By making the system more formal, the organization can more efficiently exchange information among its functional areas, business units, suppliers, and customers. As the transactions are taking place every day, the system stores all the data which can be used later on when the hotel is in need of some financial help from financial institutes or banks. As the inventory is always entered into the system, any frauds can be easily taken care of and if anything goes missing then it can be detected through the system.