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Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.

37

MISCELLANEOUS TOPICS

(i )

Distinguish between application program and utility program.

i.
Application programs are written to solve a specific problem depending on the need of the organisation. These are
developed by using one or more programming languages. The main aim of application program is to process the
transaction data efficiently. Application programs can further be classified as general purpose or special purpose.
Utility programs are available for the purpose of supporting data processing activity. These are also used in
developing application software. It acts as a tool to data processing activity. It is normally supplied by manufacturer
of the hardware device. Some examples of utility programs are: screen saver, disk de-fragmentation, anti-virus
programs, data compression, etc.

(ii )

Enumerate various information which are required for analysis and support of sales

ii.
Information required by a marketing system. The information required for the purpose of planning in the case of
marketing system can be classified into three broad types:
a. Environmental information
i. Political and Governmental considerations
ii. Demographic and social trends
iii. Economic trends
b. Competitive information. Data relating to business operations of competing firms is quite useful for
forecasting individual firm’s product demand and making decisions and plans to achieve the forecast.
c. Internal information
i. Sales forecast
ii. Financial plan
iii. Supply factors
iv. Policies

(iii )

Discuss in brief the various tangible and intangible benefits that can result from the development of a computerised
system.

iii.
Tangible benefits:–
5.38 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
 Low operating cost
 Increased productivity
 Reduced workforce
 Lower computer costs
 Lower outside vendor costs
 Reduced rate of growth in expenses
 Reduced facility costs
Intangible Benefits:–
 Improved organisational planning
 Improved organisational flexibility
 Improved decision making
 Improved operations
 Improved asset utilization
 Enhanced employee morale
 Increased job satisfaction
 Higher customer satisfaction
 Improved organisation image

(iv )

How is computer fraud different from conventional fraud?

iv.
Computer frauds have been defined as an illegal Act for which knowledge of computer technology is essential for
its perpetration, investigation or prosecution.
Traditionally, computer fraud is defined as ‘using a computer to commit fraud’, or ‘using a computer to cause
prejudice, in the sense of financial and/or reputation damage to a business’.
Difference between computer and conventional fraud —
 Computer fraud is early hidden and hard to detect unlike conventional fraud. There may be no easily
recognizable audit trail and the fraud is likely to be hidden in enormous volumes of data.
 Evidence of computer crime is not only hard to find, but also difficult to present to a court in a way which
is effective or legally admissible
 It is easily committed in ways that may not be obvious
o It involves the manipulation of invisible data
o A few key strokes and a few seconds of time, are all what is needed
o Business computers can be remotely accessed, both by employees and outsiders

(v )
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.39
Briefly describe the major steps of building a website.

v.
The major steps in building website are —
• identify the target audience
• establish the jobs that need to be done and design the structure of the site, accordingly
• create an effective visual design
• assemble the content
• develop and test a functional shell
• fill the content
• test and evaluation the publication

(vi )

What is Business Process Re-engineering?

vi.
Business Process Re-engineering is defined as the analysis and design of workflow and processes within and
between organisations; the critical analysis and radical redesign of existing business processes to achieve
breakthrough.
BPR involves the following seven steps —
 Study of the current system
 Defining processes, organisation structure and procedures
 Designing the new system
 Developing and customising the software
 Training the people
 Implementing the new system
 Monitoring and re-evaluating the new system
The significance of BPR is far-reaching, not just to change, but to re-invent acknowledging those implications of
ERP, which are so widespread as to necessitate redrawing processes all over again. The idea is not just to look for
cost savings or speed or quality improvement in current operations but to question why things are being done at all,
and to re-design the whole business process.
BPR entails the analysis and design of workflows and processes within and among organisations. This necessitates
a corresponding change on organisational structure.

(vii )

Star Batteries (P) Ltd. is manufacturer or a wide variety of batteries. The company has already evaluated the
offerings of standard accounting packages and found that none met their requirements for production scheduling,
costing and stock control of both raw materials and finished goods. The company also needs sales and purchases
5.40 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
order processing with multiple suppliers for each material and individual price lists for each customer. Their
requirements further include multiple levels of discount. The solution should ensure that raw materials are available
as and when they are needed. It should alert the management to shortfalls and surpluses and should include a
procedure for batch number tracking. The company has requested you to advise a comprehensive solution to
provide overall management control of this manufacturing business.

vii.
• This case study is about integration of business with multiple suppliers; management of inventory and final
products; and automation of internal business processed.
• In order to automate production system, stock system, etc., the company has to re-think its current operation
procedures through Business Process Re-engineering (BPR), aiming for Business Integration and ERP.
• There should be an option (though not required to be implemented at the present moment), of EDI
• Since standard packages do not work, the company has to go for customised packages. The company has to
deal with multiple parties/suppliers. Therefore a web-based customised package is the best offering.
• We understand that this company has most transactions with suppliers/customers. Therefore, the web-based
customised package should contain a B2B solution, and should also be able to serve a B2C situation (at
times).
• Thus we can guess that there is a greatest possibility of need for electronic payments, etc. Therefore, the
web-site needs to be highly secured one.

(viii )

What is a Multimedia System and what are its major applications?

viii.
Multimedia is the convergence of computer with multiple Media (such as video, film, sound, graphics, animation,
photo and text). The various media are digitised (i.e. digitally reproduced) so that a computer can understand and
manipulate them, allowing the user to control the presentation of information.
Major applications of Multimedia System. The important applications and advantages of multimedia include the
following:
a. Commercial applications.
b. Consumer and home entertainment.
c. Government. E-governance, video conferencing, etc.
d. 3D effect can be created.
e. Presentation purpose for launch of a product, etc.
f. Explore creativity (in music, video applications, animations, etc.)
g. Electronic greetings.
h. Tutorials (electronic learning purpose).

(ix )

Write note on the following


Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.41
a. Smart Card
b. Artificial intelligence and expert system.

ix.
Part (a) Smart card.
Smart cards are credit card sized. A smart card is a plastic credit card with an embedded 8-bit microprocessor that
can be programmed to accept, store and send data. Most smart cards manage binary text and numeric data. Special
hardware is usually required to read the information stored on the card. It can be used in all banking transactions. It
can also be used as an electronic purse in which monetary value can be loaded.
Smart cards may have up to 1 kilobyte of RAM, 24 kilobytes of ROM, 16 kilobytes of programmable ROM, etc.
Most common start card applications are:
 Credit cards
 Electronic cash
 Computer security systems
 Wireless communication
 Loyalty systems (like frequent flyer points)
 Banking
 Satellite TV
 Government identification
Part (b) ‘Artificial intelligence’ and ‘Expert systems’
Artificial Intelligence is an effort to develop computer based systems that can behave like humans, with the ability
to learn languages, accomplish physical tasks, use a perceptual apparatus and emulate human expertise and
decision-making. From the perspective of intelligence, artificial intelligence is making machines intelligent, acting,
as we would expect people to act. From a research perspective, artificial intelligence is the study of how to make
computers do things, which, at the moment, people do better. The primary areas of artificial intelligence research
and applications today include robotics, computer vision, speech recognition, natural language processing, expert
system and neural networks.
As against this, the expert systems are knowledge intensive computer programs that capture the expertise of a
human in a limited domain of knowledge and experience. The users of an expert system are the people who do
value added work, which requires a special skill or expertise. It provides tools, information and structured methods
for decision-making. It stores and provides expert knowledge to support decisions in specific areas. An expert
system is a computer program dedicated to solving problems and giving advice within a specialised area of
knowledge. A good system can match the performance of a human specialist. The field of expert systems is the
most advanced part of AI and expert systems are in wide commercial use.
We can, however, conclude that expert systems are just an application of Artificial Intelligence.

(x )

Define Database.

x.
Database is consolidation of many files, which contain the data of the organisation. The data in a database is
organised in such a way that access to the data is improved and data redundancy is reduced. It also increases the
data-integrity.
Database —
5.42 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
 Avoids uncontrolled data redundancy and inconsistency
 Program-data independence
 Flexible access to shared data
 Reliability
 Centralised control of data

(xi )

Write notes on:


a. Personal Computer
b. Internet

xi.
a. A Personal Computer (PC) is at the lower end of the range of computers. It provides up to 640 megabytes of
main memory, a computing power of 0.5 million instructions per seconds (MIPS), and supports one or two
diskette drives of 360 kilobytes each. It also supports a standard keyboard, a visual display unit
(monochrome, i.e. black and white or colour monitor), and a dot matrix printer. The IBM PC compatible
machines fall in this category. A PC is generally meant for a single user.
Upgrading a personal microcomputer to provide more computing power gave rise to increasing the main
memory capacity and supporting hard disks of larger capacity. The computers falling in this category are
compatible with the IBM PC/XT (Extended Technology). Both a PC and a PC/XT offer a processing speed
of 0.5 MIPS.
One level of improvement over PC/XT is provided by computers compatible with IBM PC/AT (Advanced
Technology) systems. These computers are based on more powerful microprocessors and are capable of
executing 1 MIPS. They also support hard disks of larger capacity and provide simultaneous access to
multiple users.
b. Internet is worldwide network of databases and users. Any member of the Internet can access any of the
databases through his personal computer. Each user is given an ID number. The user can download texts,
graphs and data from other databases. Similarly the user can create database which can be accessed by
others. Internet facilitates international trade and commerce. Internet helps in sharing of knowledge and
enables effective, cheap and fast communication across the world. It requires a modem, a personal
computer, a telephone and the services of a service provider.

(xii )

Answer the following:


a. What factors affect the Security of the Computer System of an organisation?
b. What is a virus? How many different types of viruses have been encountered so far? How does it differ from
a Bug?

xii.
Part (a)
Factors which affect the computer security may be divided into three groups:–
i) Physical factors:
• Threat to computer hardware from theft, fire, flood, dust, humidity, earthquakes, electric
fluctuations etc.
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.43
• Threat to computer software from the same as above.
• Threat to computer facility from fire, floods, earthquakes, etc.
ii) System factors:
• Threat due to loss of data, loss of software, damage to equipments.
• Threat due to malfunctioning of the system due to errors or failures of hardware and software.
• Non-availability of backups of data/software hardware
iii) Human factors:
• Risk from inside/outside the organisation due to intentional/unintentional acts of others.
Unintentional acts may be accidental wrong changes to data, wrong deletion of files, running of a
wrong program, forgetting particular passwords, etc. Intentional acts may be setting up of fake
accounts causing unauthorised payments, deletion/corruption of data/files etc.
Part (b)
A Virus is a program written by a programmer and is generally introduced into a computer system as a foreign
body. A virus generally consists of two programs with independent functions e.g. the first program's goal is to
reproduce the virus program while the second executes some action to either destroy data or simply show its
presence to scare the user.
Two types of viruses have been encountered so far:
 Executable file viruses
 Boot sector viruses
A Bug, on the other hand is a logical error that creeps into a program inadvertently when it is being written by a
programmer. Bug tracer routines are being provided in the compilers which assist in debugging the program.

(xiii )

Explain the concept of Data Base Management System. What are its benefits?

xiii.
Concept of DBMS — Data Base Management System (DBMS) is a tool for managing information as a resource
which overcomes the limitations of traditional file design. Its main focus is on ease of file creation, re-organisation
summary, report generation and updations. In short it aims at easing the transaction processing routine and
information access. It seeks to avoid duplicate data creation. Information is the resource of a Company. Hence it is
essential that the discipline and importance traditionally apply to the management to the other resources like man,
machine, materials and money are applied to information too. Database management systems manage the data of a
company in such a way that the data are structured and related, and hence obtainable in a more orderly and logical
fashion.
In traditional file design, files are designed for a specific reporting requirement with little regard to files designed
for other reports. For example, one analyst designed a customer master file for an accounts receivable system
without any regard to the customer file designed in a related system like sales order processing which also maintain
data about customers. As a result, there were inconsistencies and redundancies of data among various information
systems. In the DBMS environment there are two individual files for a particular system. Rather, a centralised data
base is created and controlled which becomes common to all information systems.
Generally DBMS performs the following functions:
 Organises data in a manner most suitable to each application
 Integrates data by establishing relationship between data elements.
5.44 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
 Separates data by distinguishing between logical description and relationship of data from the way the data
is physically stored.
 Controls how and when data is physically stored
 Locates and provides data to the programs
 Protects data from unauthorised accesses, operating system failures. Inconsistencies in updates etc.
Benefits of DBMS:
 Reduced programming costs because many input/output routine normally coded by programmers are
handled by DBMS itself.
 Reduced system maintenance cost because of many common causes of system failures like input/output,
file description, etc are handled via DBMS.
 Reduced data redundancy because each element of data is maintained by a single source.
 Increased reliability of data because of checks and control mechanisms inherent in DBMS.
 Consistency of data because of each element of data is maintained in one place only.
 Easy retrieval of data through query language.

(xiv )

What is automated office? List down the components of the automated office and their major functions.

xiv.
It is a new way of preparing documents. It is enhanced communications method. It is placing the power of the
computer in the hands of office workers. It is a new way of filing, storing and retrieving documents. Equipment is
very much at the heart of the automated office. It includes word processing for the preparation, storage, revision,
and printing of documents, computer based communication systems such as electronic mail, voice mail, facsimile,
teleconferencing, and telecommunicating for electronic communications, personal computers that support the work
of office workers, computer terminal, that give office workers access to electronically field documents and other
forms of support and micrographs equipment for the efficient filing, storing, and retrieving of documents.
An automated office is a multifunction, integrated computer-based system that allows many office activities to be
performed in an electronic mode.
The components of the automated office and the major function that they serve are given below :–
• Word processing – Facilitates the preparation of typed documents.
• Electronic mail – Allows typed messages to be sent electronically.
• Voice mail – Allows spoken messages to be sent electronically.
• Facsimile – Allows any document to be sent electronically.
• Teleconferencing – Electronically brings conference participants together without travel.
• Personal computing – Places computational decision support at workers' fingertips.
• LAN – Provides access to electronically filed materials and other components in the automated office.
• Micrographics – Store documents on microfilm for easy retrieval.
• Reprographics – A combination of automated machines for providing multiplicates of documents, like
photocopiers, scanners, laser printers, etc.
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.45
(x v )

Choose the correct word:


(a) Information is
(i) Textual form of data.
(ii) Summarisation process of data.
(b) Top level managers use
(i) Strategic information
(ii) Tactical information.
(c) Assembly language is
(i) Machine independent
(ii) Machine dependent.
(d) Which of the following devices can be used to directly input printed text?
(i) OCR
(ii) MICR.
(e) The protection feature of an operating system is required in
(i) Single user system only
(ii) Single and multi-user system only.
(f) Conversion of computer generated results into human acceptable form is a function of —
(i) Output interface
(ii) Input interface.
(g) Data transfer rate in serial communication, related to duration of voltage signal used to represent the binary
digit is given as —
(i) Baud
(ii) Bytes per second.
(h) Computers send data to peripherals with the help of —
(i) Parallel I/O interface
(ii) Serial I/O interface
(i) A CPU holds the instruction in
(i) Index register
(ii) Instruction register
(j) A transaction file is a type of
(i) Master file
(ii) Data file

xv.
(a) (ii)
(b) (i)
(c) (ii)
(d) (ii)
5.46 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
(e) (ii)
(f) (i)
(g) (i)
(h) (i)
(i) (ii)
(j) (ii)

(x vi)

Complete the following statements by filling in the blanks.


(a) Results are obtained from computer through its —————— unit.
(b) Calculations are made in computer with the help of its —————.
(c) Circuits that provide a communication path between a CPU, storage and peripherals may be known as ——.
(d) A computer which is used to draw the sketches and figures is known as ———
(e) A beam of ———— light is used to record and retrieve data on optical disks.
(f) In a Computer, RAM is used as a short memory because it is —————.
(g) Data stored on disks can be accessed in either a direct or —————— way.

xvi.
(a) output
(b) Arithmetic and Logic Unit
(c) Bus
(d) CAD
(e) laser
(f) volatile
(g) sequential

(x vii )

What are the different types of files?

xvii.
The following are the broad categories of data files used in any Information System.
• Master
• Transaction
• Work
• Backup
• Security
• Audit
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.47
• Transaction Files

(x viii)

Answer the following:


(a) What is Internet?
(b) Write short notes on:
i) DHTML
ii) JAVA
iii) e-mail
iv) Extranet
v) World Wide Web.

xviii.
Part (a)
Internet is a worldwide network of networks. It is a conglomeration of smaller networks and other connected
machines spanning the entire globe. It consists of over thirty thousand networks in 71 countries. Around the world,
each country has at least one backbone network that operates at a very high speed and carries the bulk of the traffic.
Other smaller networks connect to that backbone.
Internet has no central authority – networks on the Internet simply agree to cooperate with each other. Individual
computers on these networks can share files and transmit information. Various networks connected to the Internet
format messages with Internet Protocol (IP). IP is often used in conjunction with TCP (Transmission Control
Protocol). The combinations of TCP/IP have made the Internet robust and flexible.
Part (b)
i) DHTML (Dynamic Hyper Text Markup Language): This is the latest version of HTML that is still being
designed. DHTML solves a huge list of problems associated with laying out webpage designs.
ii) JAVA: This is a new language, destined to change the Internet in a way very wonderful. This language can
allow you to do incredibly versatile things via web pages running programs.
iii) e-mail: Electronic mail - It is an electronic means of sending message from one computer to another in an
organised fashion. Sending e-mail uses the SMTP protocol
iv) Extranet: An extension of a corporate internet. It connects the internal network of one company with the
internets of its customers and suppliers. This make it possible to create e-commerce applications that link all
aspects of a business relationship, from ordering to payment.
v) World Wide Web: It is also known as just “the web” or WWW , this is perhaps the main reason for the
internet’s growing popularity in recent years. Based on a client server architecture, the web consists of
numerous servers on the internet. A server is identified by an address in a special format, called the Uniform
Resource Locator.
A web site is a computer server with databases and connectivity. It has homepages of its own or for its customers on
rent. A homepage can be set up at customer’s own site with appropriate information. The homepage can serve as a
mirror of an organisation that provides financial data, on-line order forms etc.

(xix )

Answer the following:–


a. What are the main objectives of MIS?
5.48 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
b. What is multimedia processor?

xix.
Part (a)
A Management Information System (MIS) should provide –
i. Current information for monitoring and control.
ii. Accurate information about the system
iii. Timely information out of large volume of data.
iv. Economical information (low cost )
v. Relevant information for decision making.
Part (b)
Multi Media Processor. Most of the present computers have in–built multimedia capabilities which enhance the
capability of computers to process audio, video, in addition to data processing. The Pentium range of computers are
with multimedia capabilities which means you can also have audio and video information in addition to data.

(x x )

Answer the following:


a. Briefly describe the functions of a virus scanner.
b. Compare and contrast the www and HTML.

xx.
Part (a)
Virus scanners are products designed to help identify viruses within files, boot sectors, master boot sectors ,
memory and other hiding places to name them and potentially to help remove them. The capability to detect and
identify a virus is probably the most important feature of a scanner.
A scanner is critical for providing a precise identification of a virus in PC system. Without a precise identification,
one cannot know the best course of action for removing it.
A scanner is one kind of anti-virus program that can spot a virus before virus can harm it. Scanners are always out
of date. Most scanners are usually somewhat incomplete when they are released. No virus researcher has access to
every virus on earth.
Part (b)
WWW refers to World Wide Web which is a network of databases situated across the world connected through
world wide network. It is otherwise known as Internet. HTML refers to Hyper Text Markup Language which is a
language used in internet to represent data and link different database.

(x xi)

State the full form of the following —


a. MRP
b. ERP
c. OLTP
d. OLAP
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.49
e. CAATS

xxi.
MRP — Material Requirements Planning.
ERP — Enterprise Resource Planning.
OLTP — On-line transaction processing.
OLAP — On-line analytical processing.
CAATS — Computer Assisted Audit Techniques.

(x xii )

Answer the following:


a. How is a network managed?
b. Which are the 5 pillars upon which a computer-based information system rests?
c. What is Y2 K problem?

xxii.
Part (a)
Network Management. The key to network management is the planning of documentation. Several factors
combine to make modern networks increasingly complex and hard to manage effectively. These factors include the
following:
i. Software and hardware from multiple vendors.
ii. Multiple protocols running on the same network.
iii. Multiple cabling systems.
iv. Several types of workstations, many running different versions of the same operating system.
Make sure that all aspects of network are written down clearly and in detail. Keep records of every major network
device attached to the network. These parts include:
i. File servers.
ii. Workstations.
iii. Printers.
iv. Uninterrupted Power supply (UPS).
v. Hubs.
vi. Routers.
vii. Bridges.
viii. Repeaters.
ix. Network interface cards.
In addition, maintain a complete description of the operating system, application environment, and network
software configuration on each of the network stations.
Part (b)
The computer based information system rests upon the following pillars:
i. Persons: Collection to end use of results through processing persons are involved.
ii. Procedures: Guidelines to be followed while using data, hardware and software.
5.50 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
iii. Hardware: Computer equipment.
iv. Software: Programs or step by instructions to the computer on how to do its work.
v. Data: Unprocessed facts, relating to transactions and entities in a system, that must be manipulated.
Part (c)
Y2K Problem. As the year is 2000, this is also known as “Year 2000 Problem”. The reason being-majority of
computer systems cannot handle the change of data from 1999 to 2000. Thus when there is change of data from the
year 1999 to 2000, the year element of dates will change “99” to “00”. Hence, when calculations are performed
using a two–digit year code, the results will range from the misleading to the disastrous. This will have obvious
effects on any processing which is date dependent or calculations where dates are involved.

(x xiii)

Complete the following statements by filling in the blanks:–


i. The five operations performed by all data processing system are ————, ————, ————, ————, and ———— .
ii. The documents on which original data are recorded are called ———— and the documents on which final
results are distributed are called ———— .
iii. A collection of files is called a ———— .
iv. ———— is made up of eight bits
v. Instructions to computer are given through ———— .
vi. A configuration of equipment including a computer and peripheral devices is referred to as ———— .
vii. Laser printer is a printer ———— .
viii. Each storage cell in the computer is associated with a unique ———— .
ix. A ———— is a subset of instructions that appears over and again in the program or finds application in several
programs.
x. ———— memory is a high speed memory capable of keeping up with the CPU
xi. A reflexive marker, called the ———— , marks the beginning of usable magnetic tape.
xii. ———— is a device that enables several devices to share communication line.
xiii. Execution of two or more programs that all reside in primary storage is called as ————
xiv. ———— is a device that enables several devices to share communication line.
xv. ———— is a collection of computers and terminal devices connected together by a communication systems
xvi. The ———— is a hybrid between sequential and direct access file organisations.
xvii. Placing several records into one larger record is called ————
xviii. Once the data has been written onto the ———— , it can only be read, not be updated or changed
xix. ———— is a unit of measuring data transmission speed.
xx. ———— computers processing data input in a continuous form.

xxiii.
i. Inputting, storing, processing, outputting, controlling
ii. source document, report document
iii. record
iv. byte
v. program
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.51
vi. hardware
vii. inkjet printer
viii. address
ix. subroutine
x. Cache
xi. load point
xii. Modem
xiii. multiprogramming
xiv. Multiplexer
xv. Network
xvi. indexed sequential file organisation
xvii. blocking
xviii. CD–ROM
xix. Baud
xx. Analog

(x xiv )

Arrange the following four measures of time from the smaller to larger:
» Microsecond
» Millisecond
» Picosecond
» Nanosecond

xxiv.
Picosecond, Nanosecond, Microsecond, Millisecond.

(x xv )

Expand the following:


a. A/D
b. SCSI
c. PROLOG
d. COM
e. BIOS

xxv.
a. Analog to digital
b. Small Computer System Integration
c. Programming in Logic
d. Computer Output Microfilm
5.52 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
e. Basic Input Output System

(x xvi )

There are scrambled words at the end of each sentence. Rearrange the letters to spell out the correct word with
reference to computer system and data processing and fill in the blank space indicated.
a. ——— system is a positional system (N.R.A.B.I.Y)
b. Magnetic disc is widely used as a memory device ———— (R.A.I.Y.L.A.X.I.U)
c. The control unit of a computer obtains ————— from mail memory, interprets them and decides action
to be taken (S.I.T.O.N.U.R.C.T.S.I.N)

xxvi.
a. Binary
b. Auxiliary
c. Instructions

(x xvii )

Select True/False from the following statements:–


a. All managers in a big organisation use the same type of information
b. Sequential files are suited for on-line inquiry processing
c. E-mail reaches its destination instantly
d. A computer is an electronic data processing machine used by several persons at a time.
e. In LAN each computer can fulfill a function.
f. There is no difference between a LAN and a computer network.
g. CD-ROM are produced on a mass scale
h. All hardwares features are available to an assembly language programmer
i. Memory is used to store data, programs and results
j. CPU can read information directly from secondary memory
k. Only executable files can be infected by virus
l. Processing is done in the primary storage unit
m. Light pens and Joysticks are both pointing devices
n. To start an accessory, after positioning the pointer, double click the left mouse button.
o. On-line processing and real-time processing are same.

xxvii.
a. F
b. F
c. F
d. T
e. T
f. F
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.53
g. T
h. T
i. T
j. F
k. F
l. F
m. T
n. T
o. F

(x xviii
)

Following are scrambled words – rearrange the scrambled words and expand the words if any :–
i. PDD
ii. CS
iii. MORE
iv. UPC
v. SDS
vi. LSDC
vii. LSD
viii. GRP
ix. STOREFAW

xxviii.
i. DDP – Distributed Data Processing
ii. SC – Sequential Code
iii. EROM – Erasable Read Only Memory
iv. CPU – Central Processing Unit
v. DSS – Decision Support System
vi. SDLC – System Design Life Cycle
vii. LSD – Logical System Design
viii. RPG – Report Program Generator
ix. SOFTWARE

(x xix )

Match words and phrases in left column with the nearest meaning in the right column.
(i) Arrangement of records in file (a) E-mail
(ii) Processing has fixed time constraints (b) File organisation
(iii) Transmission of letter, message, memos over (c) Operating system
5.54 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
communication net works.
(iv) Processing information of physical nature (d) Protocol
(v) Transferring programs from main memory to disk
(e) Baud rate
storage and back
(vi) Device dependent software (f) Icon
(vii) A program/utility under Windows (g) Swapping
(viii) Transmission speed of communication channel (h) Link
(ix) Any device to offer service to LAN users (i) Real-time processing
(x) Set of rules for orderly transfer of data among (j) Server network users.

xxix.
(i) b
(ii) i
(iii) a
(iv) h
(v) g
(vi) c
(vii) f
(viii) e
(ix) j
(x) d

(x xx )

You are the Marketing Executive of Star Computer Consultancy Services having a track record of three decades in
the IT field both as manufacturer and software house with a good setup for training and after sales services. Of late
you have also started dotcom services and can handle total E-commerce affairs for any client. You have obtained an
appointment for half-an-hour with the C. & M.D. of a Government Company, having five manufacturing units in
and around Kolkata. Their present state of computerisation is in a low-key. They would like to have time-bound
approach towards a total IT solution within a reasonable time.
a. You are required to highlight the major points to be covered within the brief interview on:
i. Introducing your company and
ii. Total IT solution for the client.
b. How do you allot time slice for each part of presentation?
c. What may be the various equipment and facilities required for such type of presentation? How do you
choose the best alternative for an effective presentation?

xxx.
Part (a)
i. Introducing the company :
» Background and scope of service to be provided.
» Reliability and stability stressing continuity for 3 decades in the field.
» Capabilities of providing total IT solution – hardware system development, software
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.55
implementation, training, maintenance of software and hardware and future up gradation.
» Expertise in E-commerce services.
» Clientele - national and international projects handled
ii. Total IT solution for the client :
» Overview of the client's company and client's need.
» Present shortcomings and probable steps to overcome the shortcomings.
» Objectives of the study, approach methodology and work plan.
» Scopes under Total IT solution phases and time frame.
» E-commerce services reasonability of the service charge compared to the substantial benefit to the
client prospect for immediate implementation etc.
» Future plans and programs concerning the client's company.
Part (b)
Allotment of time slice:
» Courtesy exchange and introduction of self and accompanying colleagues before formal presentation.
» Introduction of Star Consultancy Services.
» About the client's company and present shortcomings.
» Objective of the study, approach, methodology and work-plan.
» Scope under total IT Solution' phases and time frame.
» E-commerce services.
» Question-answer session.
» Thanks giving.
(This is a hypothetical pattern and answers may vary according to perception and stress).
Part (c)
Overseeing a software development Project: Depending on the quality and approach to presentation, the
following may be various equipment/ facilities to be required. Only oral presentation may be uninteresting and
unimpressive.
» Collar Mike as the presentation is expected to be arranged in a spacious Board/Conference room before
top level executives.
» Overhead Projector with screen.
» Flip Chart Board.
» Slide Projector.
» Laptop with LCD projector.
» Voltage stabilizer, modem and telephone facility for Internet connection .
» Electrical connection facilities.
» Electronic pointers.
Audio-visual presentation with the help of laptop (having multimedia features) with LCD projection screen will be
most effective specially when it is meant for top level executives. Impression is to be created within the precious
allotted time of 30 minutes and the quality of presentation is to be superb and match with current technological
standard. Internet connection may be established for visiting Website of your company and explaining E-commerce
services.
5.56 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
(x xxi )

Answer the following:


a. During the earthquake of Gujarat on January 26, 2001, the computer department of a large chemical
company collapsed completely. The department housed the servers and all devices storing company’s data
and software. As a result, the company had to fall back on manual systems till new software could be
developed and implemented over the next six months. What precautions the company should have taken if it
were to avoid that mishap?
b. What is Data processing? Describe the basic components of a computerised data processing system.

xxxi.
Part (a)
Disaster can strike any time. With companies becoming more and more dependent on computers and information
technology, taking precautionary measures for disaster avoidance becomes very critical.
To ensure that the business does not suffer due to a disaster, a company can take the following measures to
safeguard their dependency on IT and computers.
i. The company should have had a strict policy of taking regular, periodical backups. The back up copies
should have been kept in a secure area and at least one copy away from the main data center building.
ii. The company could have invested in an alternate set up which could be used at the time of disasters.
iii. The company could have made arrangements with other companies having similar set up for a mutual
arrangement that one would use other's resources should disaster strike any of them.
iv. The company could enter into a regular service agreement with a company who hire out their resources for
such eventualities.
Part (b)
Data Processing means sorting, merging, calculating and summarizing data to produce certain information. It also
involves certain operations carried out on the results of processing viz. storing and retrieving, printing, transmitting
etc.
The basic components of a computerized Data Processing System are —
» Input: It is actually a device which provides man to machine communication with computer.
» Output: Involves printouts from the system
» Processing: There are basically three methods of data processing, namely batch, on-line and real time
processing.
» Control: The sequence of operations to be performed inside the CPU needs to be coordinated, and
hardware needs to be controlled.

(x xxii )

Answer the following:


a. What is an interface device? Describe three such devices that are commonly available.
b. Describe briefly the basic components of a computer. If you wish to use your computer for internet surfing
and e-mailing, what would be the additional requirements in respect of hardware and software? Draw a
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.57
diagram showing the connectivity with the internet.

xxxii.
Part (a)
An interface device is a device for communication between computer and human beings. Three such devices are
• Mouse: This is the most common interface device on PCs. It has a rubber ball at the bottom and two or
three switches at the top. When the mouse is moved on the desktop or on a pad, the pointer on the computer
(mouse pointer) also moves on the screen of the computer. The rubber ball provides the movement of
direction and a click on a switch on the mouse triggers action command to the computer.
• Trackball: This is similar to the mouse. The difference is that unlike the mouse the trackball is fixed on a
case on the computer (usually on the base of the computer). The trackball is more common in portable
computers.
• Joystick: With this, moving a lever on the base of computer carried out the movement of the pointer on the
computer.
• Cursor: It is a communication device between the user and the machine
Part (b)
The basic components of a computer are –
• Input device (e.g. Mouse, Keyboard etc.)
• Processing Unit consisting of Memory, Arithmetic / Logic Unit and Control Unit.
• Output device (e.g. printer).
For Internet surfing or e-mailing, the additional units that will be required are ( I) Modem (ii) Telephone Line (c)
Browser software like Internet explorer or Netscape Navigator. In addition, one will have to subscribe to an Internet
Service Provider (ISP).

C o m p u ter M o d em T elep h o n e IS P

(x xxiii
)

Write short notes on ‘Distributed Data Processing’.

xxxiii.
Distributed Data Processing (DDP) is a system in which the computing and other resources are decentralized
instead of being located at just one place. The points at which the resources are located are interconnected and
although may act autonomously at times also at cooperatively in handling common problems.
A DDP system therefore has a number of characteristics:–
• Computer hardware and user are decentralized.
• There is some form of communication linkage between location where the computer resources and user are
situated.
• Users tend to have responsibility for their own data and data processing - they tend to 'own' their system.
• When the system is not operating as a whole, quite often some data processing can continue locally at
individual user sites.
5.58 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

(x xxiv )

State ‘True’ or ‘False’


i. “Power Point” is not spreadsheet software.
ii. A computer virus and a program bug are not synonymous.
iii. Data security and Data privacy mean the same thing.

xxxiv.
i. True
ii. True
iii. False.

(x xxv)

As a Sales Representative, you are required to send the order details everyday to the head office by a courier. A
friend suggests that you could use the internet to send the order details. Suggest at least two ways in which you
could do this. What facilities you should have to implement this idea? What would be the advantages of this over
the current method?

xxxv.
Two ways in which the Sales Representative can send the order details are as follows –
i. E mail by which the Sales Representative can send e-mails detailing each order.
ii. Data submission on the website. The Sales Representative can submit data on a form that could be designed
on the website of the company.
Prerequisites:
i. Sales Representative should have the facility of using the internet
ii. For e-mailing, the company should have an e-mail facility accessible by all Sales Representative.
iii. For entering data on the website, the company should have an website which should provide or a Order
Form to be filled in by the Sales Representative.
iv. The company should ensure proper training on the use of the above to all Sales Representative and
concerned persons in the Head Office.
v. The company has to modify its Sales Order Processing system to download data from the website and feed
into the system.
Advantages:
i. Time saving
ii. Cost saving
iii. Faster response to customers’ queries.
iv. Faster delivery
v. Business growth
vi. Better image of the company
vii. Less paper work
viii. Scientific maintenance of records
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.59

(x xxvi )

“A business graph is a visual representation of numerical business data in an analytical manner so as to facilitate
quick grasping of the inherent features.” Name any five types of business graphs commonly used.

xxxvi.
Five types of commonly used business graphs are:
i. Column Chart.
ii. Bar Chart
iii. Line Chart
iv. Pie Chart
v. Stacked bar Chart.

(x xxvii
)

In the context of internet, define:


a. E-commerce.
b. E-money,
c. E-mail
d. Webmaster,
e. Yahoo!
f. Information highway.

xxxvii.
Part (a)
Electronic Commerce refers to the business by way of sale of goods and provision of services transacted
electronically over the Internet. It is an on-line approach to conducting business with customers including
advertising marketing order entry and processing, payment, and customer support. The Internet is an open system
and the users can hardly be traced. Important features of e-business are :-
Five types of commonly used business graphs are —
• Electronic signature.
• Cryptography
• Authentication and
• Certification.
Part (b)
E-money refers to the digital version of currency and exchange. Digital money moves through a multiplicity of
networks rather than via current banking system. Electronic currency substitutes for money on on-line transaction,
including secured credit cards, electronic cheques and digital coins.
Part (c)
5.60 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
E-mail is system that enables a person to compose a message on a computer and transmit it through a computer
network to another computer user.
Part (d)
Webmaster is the individual responsible for maintaining and updating the content of a World Wide Web document.
Webmasters are the creative force behind the World Wide Web.
Part (e)
Yahoo ! It is one of the most popular website having lot of facilities like Browsing, E-mail, Chat etc. It also has a
search Engine
Part (f)
The Information highway refers to the interconnected series of networks that provides the infrastructure for
transporting information throughout the world.

(x xxvii
i)

“The success of a computer based information system greatly depends on a good coding system”. What is a code ?
What are the characteristics of a good coding system? Describe at least three methods of structuring codes with
examples.

xxxviii.
Code consists of a number of digits to denote a specific entity. Thus a lengthy description may be expressed by
unique code, which facilitates designing input documentation, and computerized processing. Even in a manual
system, use of codes are useful in day-to-day transaction and communication e.g. work order no., sales invoice no.,
purchase order no., form no. etc. Employees may have identification no./ ticket no./ employee no. and selected few
letters from the name. Thus employee no. may be matched with the selected letters for validation process for the
sake of accuracy. There are other methods of validation process also. Codes representing major key fields are
matched between the master file and the transaction file in a computerized environment for data processing
purpose.
A good coding system should have the following characteristics:–
 Each code should be unique, compact and meaningful.
 Size of the code should be precise, and of fixed length with flexibility to facilitate insertion or expansion as
may be envisaged.
 A code of a major key field may have a check digit embedded in it to ensure accuracy of processing.
 Codes should consist of numeric digits as much as possible to facilitate validation and faster processing.
The following three methods of structuring codes are more commonly used –
• Sequential Code: Codes are allotted as consecutive numbers to data entities e.g., employee number,
invoice number, purchase order no., bill no. etc.
• Block Code: Under this method, entities are classified into groups and blocks of numbers are assigned to
each group. The block size depends on number of items expected to be in use in the classified groups with
flexibility for future insertion/exception. For example, an organization with 7000 employees may have a 5-
digit employee number where the left most digit may indicate category of employees viz., 1 for officers, 2
for supervisors, 3 for clerical staff and 4 to 9 for workmen. The right most digits may be reserved for check
digit. Thus a block of 1000 numbers are reserved for each of the three categories of officers, supervisors,
and clerks and rest 6000 numbers for workmen (first 1000 numbers beginning with left most ')' are left un
allotted at present).
• Bar Code: Such codes are popular in companies running departmental stores and consist of vertical line of
various thicknesses to represent digits 0-9. The code identifies the product, the manufacturer, and the price
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.61
of the product on which it is affixed. The line symbols are easily read by the computer and converted into
numbers that represent the code. One of the popular methods is UPC or Universal Product Code.

(x xxix )

Distinguish between — Sorting and Merging of files.

xxxix.
Sorting constitutes arranging records in a file in either ascending or descending order of a key field.
Merging involves combining two or more fields into a single file considering one or a combination of key fields as
the sequence number.
Sorting and merging is an essential element of data processing activity.

(xl )

Match the following two columns —


(i) Search Engine (a) A method used to make hypertext documents readable on the
World Wide Web.
(ii) HTML (b) A place where users can experiment with Internet services
available, take expert assistance, undertake training courses, etc.
(iii) Web Browser (c) A list of common questions and sometimes with answers.
(iv) FAQ (d) A Web site enabling users to access various levels of
information.
(v) HTTP (e) Web sites that allow users to communicate with various other
users on-line.
(vi) JAVA (f) A program that enables a computer to download and view pages
of the Web.
(vii) Chat Rooms format (g) An encoding scheme used to create a Web document.
(viii) Cyber cafe (h) A language system that delivers programs to users which can
then be run on the users’ machines.
(ix) Microsoft Excel (i) A programming language.
(x) C++ (j) Spreadsheet package.

xl.
(i) (d)
(ii) (g)
5.62 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
(iii) (f)
(iv) (c)
(v) (a)
(vi) (h)
(vii) (e)
(viii) (b)
(ix) (j)
(x) (i)

(xli )

Define a URL in the context of Internet. What role does it play?

xli.
URL is the acronym of Uniform Resource Locator. It contains information about the location of a document. When
a user clicks on a link, the URL provides the information about the link to the browser. It assists in implementing
any link from one document to another.

(xlii )

“Digital signatures do for electronic documents what handwritten documents do for printed documents.” What is a
digital signature? How is it created and verified?

xlii.
‘Digital signature’ means authentication of any electronics record by a subscriber by means of an electronic method
or procedure.
Digital signature is created by using a hash result which is unique to both the signed message and a given private
key. For the hash result to be created there must be only negligible possibility that the same digital signature could
be created by the combination of any other message or private key.
Digital signature is verified by the process of checking the digital signature by reference to the original message
and a given public key and determining whether the digital signature was created for that same message using the
private key that corresponds to the referenced public key.

(xliii)

State ‘True’ and ‘False’ and the basis for your decision:
i. A System Designer ends his job where a System Analyst begins.
ii. The higher the management, more structured are the problems.
iii. ‘Data’ and ‘Information’ are synonymous.

xliii.
i. False. The System Analyst is concerned with analyzing the existing system and preparing specifications for
the proposed system, which are passed on to the System Designer for detailed designing.
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.63
ii. False. Generally lower level management deal with structured problems, Middle level is concerned with
tactical planning while top level management deal with strategic planning and control having nature of
unstructured or semi-structured problems.
iii. False. Data pertain to raw facts that are assembled, analyzed and summarized to produce information,
which is meaningful for the recipient.

(xliv )

State the full form of the following acronyms


i. FTP
ii. HTTP
iii. AI
iv. ROM
v. DBA
vi. TP
vii. ISP

xliv.
i. FTP - File Transfer Protocol
ii. HTTP - Hyper Text Transfer Protocol
iii. AI - Artificial Intelligence
iv. ROM - Read Only Memory
v. DBA - Data Base Administration
vi. TP - Transaction Processing
vii. ISP - Internet Service Provider.

(xlv )

You have been engaged as Management Consultant for the computerisation plan undertaken by a large
manufacturing company. Before assessing the information needs, you have requested to identify at least three major
activities under each of the following functions of the company:
i. Manufacturing;
ii. Marketing;
iii. Finance and Accounting.

xlv.
i. Manufacturing:
• An order schedule (to hold shipping schedules, manufacturing and delivery schedules, for each
order)
5.64 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
• A sub-assembly pole (listing all intermediate assembles for final products)
• A price list file (listing all component required by each assembly), and
• An availability file (containing information about availability of all the required components and
sub-assemblies).
ii. Marketing :
• Order filing (including order entry shipping and billing)
• Order getting (sales promotion, customer relations, advertising)
• Information and analysis
• Planning (using techniques such as forecasting, simulation etc.)
iii. Finance and Accounting :
• Logistics-related activities
• Collection and dissemination of financial information
• Analytical activities
• Share accounting
• Budget and finance planning
• Tax planning
• Resource mobilization

(xlvi )

Name three principal methods of creating databases. Describe any one method in detail.

xlvi.
Three principal methods of creating databases are:–
i) Hierarchical (or tree) databases :
In this type of database, records are arranged in the construction of an organization chart, i.e., an
inverted tree in which the top record may be viewed as the root, with the next level having several
nodes (or child records), with the child record becoming a parent for the records (nodes) at the
next level, and so on. When a parent record has no child, the latter is termed as a leaf.
ii) Network Database :
This is also a kind of hierarchical database but with certain differences. In this type of database
each node (or child) may have several parents. The nodes are interconnected in a multidimensional
manner by means pointers which are established by using one of the fields in each record to
contain address of the physical medium of the next record in a logical sequence. DBMS software
makes it possible to reach any node for the purposes of data retrieval.
iii) Relational Database :
The relational structure is the most popular, (particularly with PCs), and is, possibly, the most
flexible type of data organization for database construction. This type of database is built around
the concept that data contained in the conventional files can, with some duplication, be
transformed into two dimensional tables. Each such table may have any number of rows, but may
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.65
have only few columns. Data in each column has to be of uniform size, residing a field in a record,
for example customers' name.

(xlvii)

Write short notes on — types of databases by ownership criteria;

xlvii.
Part (a)
Types of Databases by ownership criteria are :–
• Individual databases
• Company (or shared databases)
• Distributed databases
• Proprietary databases.

(xlviii
)

Explain the concept of database Management System. What is a Relational Database System?

xlviii.
The term Database Management System or DBMS is applied to a specialized kind of software that makes it
possible to create and modify a database and allows access to the data stored in the database. It essentially consists
of two parts viz. Data Dictionary and Query Language. The data dictionary describes structure of data in the
database and also the characteristics of data viz. length, type etc. The query language part provides access to data in
the database. It also helps generate reports.
The relational structure is the most popular, (particularly with PCs), and is, possibly, the most flexible type of data
organization for database construction. This type of database is built around the concept that data contained in the
conventional files can, with some duplication, be transformed into two dimensional tables. Each such table may
have any number of rows, but may have only few columns. Data in each column has to be of uniform size, residing
a field in a record, for example customers’ name.

(xlix )

“While computerization has an array of advantages, it also exposes the company to a number of hazards.” Name
some of these hazards and some measures to avoid them.

xlix.
Some hazards of computerization are :
• Machine breakdown (due to some hardware parts problem)
• Due to virus infection data even can be destroyed
• Due to incompetence of staff the software can be erased from the machine and the data can be corrupted.
• Purposefully any body can damage the system or data can be tampered.
5.66 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
Some of the measures to avoid these hazards are:–
• Regular backup of the entire company data
• The computer should be protected from unauthorized user by restrictions on physical entry and it should be
password protected, so that, the system can not be started by any unauthorized person.
• The second level of password checking should be done by the software itself which is running for the
computation job.
• Data encryption
• Regular virus scanning and virus removal
• Proper method of data recovery and database recreation.
• Contingent planning.

(l )

You, as a member of a team formed to prepare specifications for a Sales Order Processing system, have been given
the responsibility to design the input forms that will be used in the system. What general features would you keep
in mind in designing the forms? What safeguards should be taken to ensure acceptance of the forms by the users?

l.
General features of designing the input forms are:
• The data source should contain full information with maximum utilization of the printing stationery.
• Form Items and their every characteristic should be separated by boxes. So that, they will be recognized
properly.
• To avoid errors, common data (or standard data) should be pre-printed on the printing stationary.
• The items should be in proper sequence.
• The single copy of the form should describe the entire sales order.
Safeguards to be taken:–
• All the staff that are going to use these forms are consulted and agreed upon.
• Trial run should be done before the actual implementation.

(li )

Match the following two columns:


Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.67
(i) Router (a) A programming language;
(ii) DAT (b) A data coding system;
(iii) ALU (c) A data transmission protocol;
(iv) Java (d) An operating system;
(v) HTTP (e) A networking peripheral;
(vi) BCD (f) A component of computers;
(vii) Windows NT (g) A type of data storage device;
(viii) ERP (h) A class of information system

li.
(i) (e)
(ii) (g)
(iii) (f)
(iv) (a)
(v) (c)
(vi) (b)
(vii) (d)
(viii) (h)

(lii )

You have already learnt how to send and receive E-Mails. On a particular day, you wish to send an E-Mail to your
Boss from your home computer via the Internet. Explain the steps involved in sending the message.

lii.
Steps in sending e-mail —
• Log on to the Internet by using proper user name and password.
• Type the message and save it.
• Open mailing related software. (It may be Outlook express or any other web site who provides to send e-
mail).
• Write down the destination e-mail address and subject of the letter.
• Send the letter.

(liii)

State ‘True’ or ‘False’ with justification for your answer:


i. The data residing in RAM are not lost even after the power is switched off.
ii. An Internet can be connected to the internet.
iii. An Intelligent Terminal can also be termed as a Dumb Terminal.
iv. Internet Explorer is Web browsing software.
5.68 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
v. MS Office is the operating system that runs Windows.

liii.
i. False. RAM is volatile in nature. Hence, the data will be lost after the power is switched off.
ii. True. Intranet is nothing but the Local Area Network (LAN) which can be easily connected to Internet.
iii. False. An intelligent terminal has some logic an programming capability and can perform editing or other
functions upon input and /or output independency while a Dumb terminal is a fixed function terminal
without any programming capability and is dependent upon the main computer in operation. Dumb
Terminal is also referred to as NPT or non-programmable terminal.
iv. True. Internet Explorer is such software by which we browse the web.
v. False. MS Office is application software and Windows is an operating system. In fact, Windows is an
operating system which runs MS Office.

(liv )

Differentiate between:
i. Syntax error and Logical error;
ii. Microsecond and Nanosecond

liv.
Part (a)
Syntax error: This error occurs when rules of the languages, in which the program is written, have been violated
as, for example, in BASIC and instruction like PRINTT is wrong, it should be PRINT.
Logical error: Logical errors arise from faulty programming logic, as for example, attempting to execute an
invalid sequence of instructions or attempting to execute valid instructions with invalid data.
Part (b)
Microsecond — 1/1,000,000th of a second,
Nanosecond — 1/1,000,000,000th of a second

(lv )

A Pharma company receives orders from its sales representatives all over India. Order forms are received through a
courier and are entered into the computer by a Data Entry operator. The IT manager of the company has mooted a
proposal to use the Internet for receiving order data from the reps. Suggest at least two ways in which the company
can use the Internet to receive the order data. What are the prerequisites for the company to use these options? What
would be the advantages of this over the current method?

lv.
Two ways in which the representatives can send the order details are the following –
• e-mail by which the representatives can send e-mails detailing each order
• data submission on the website. The representatives can submit data on a form that could be designed on the
website of the company.
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.69
Prerequisites:
• Representatives should have the facility of using the internet.
• For e-mailing, the company should have an e-mail facility accessible by all representatives.
• For entering data on the website, the company should have an website which should provide for a Order Form
to be filled in by the representatives.
• The company should ensure proper training on the use of the above to all representatives and concerned
persons in the Head Office.
• The company has to modify its Sales Order Processing system to download data from the website and feed into
the system.
Advantages:
• Time saving
• Cost saving
• Faster response to customers’ queries
• Faster delivery
• Business growth
• Better image of the company

(lvi )

State “True” and “False” with brief explanations for your answer:
i. All online systems involve real-time processing.
ii. HTML is a protocol used in Internet technology.
iii. MS-OFFICE is a spreadsheet software package.
iv. Trackballs in computers serve the same purpose as a Modem does.

lvi.
i. False.
ii. False. Protocol is such a software by which we can transfer data or instruction from one machine to another,
while by using HTML we can develop a web page. Hence, HTML (Hyper Text Markup Language) is
basically a language and not a protocol.
iii. False. Microsoft Office contains a spread sheet software viz. Excel. But this office suite also contains a
word processor called Microsoft Word, RDBMS software called Microsoft Access and presentation
software called Microsoft Power Point.
iv. False. Trackball is a device which rotates the sensor rollers in a mouse.

(lvii )

Trackball is a device which rotates the sensor rollers in a mouse.

lvii.
5.70 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
Prototyping is the process of quickly building a model of the final application system. It is primarily used as a
means of understanding and communicating the requirements of the users.
Advantages of Prototyping include faster development time, easier end-user learning, better functionality of the
software, better communication between users and analysts. The disadvantages include fostering of undue
expectations of users, providing users with something that may not get finally.
The two types of Prototyping approach are (i) Iterative (ii) Throwaway. In iterative type approach, the prototype is
developed, demonstrated to users and modified based on users feedback. This process is continued till the prototype
evolves into a final system which gets implemented.
In throwaway approach, the prototype is only a model of the final system. It is not what is implemented. Once the
prototype satisfies the users, a new system is developed based on the same.

(lviii)

Distinguish between File Retention and File Recovery.

lviii.
File Retention is the process of permanent storage of data. It can be done into two categories of devices - Random
and Sequential. Random devices allow access to information directly and not in the order in which they are stored.
Whereas in sequential devices storage and retrieval has to be done in the same order.
File Recovery is the process of retrieval of data which has been partially corrupted due to logical or physical errors
on the storage media. It is done using certain third party utilities.

(lix )

Write notes on:


a. Voice Mail
b. Decision Table;
c. Types of printers.

lix.
Part (a) Voice Mail.
It is a relatively new form E-Mail system. This system is easier to use for untrained staff and therefore called user
friendly system. You have to speak your message on the tape recording media. Message distribution can denote the
computer in digital electronic form after a user has left his call on the terminal. The message shall be transferred to
the remote terminal at another site(s) at appropriate time. The system is better than STD or lightening calls.
This system becomes effective where large number of employees is likely to be in conversation with each other like
Airline Reservation.
Part (b) Decision Table
Read § 4.2.4 (Chapter 1) for necessary details.

Part (c) Types of Printers


A classification of types of printers is given below.
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.71

P rin te r s

Im p a c t N o n -Im p a c t

C h a ra c te r N o n -C h a ra c te r D esk jet L aser P lo tter

D ais y W h eel D o t M a trix


P rin te r P rin te r

(lx )

Distinguish between Data Integrity, Security and Privacy in regard to computer databases.

lx.
Data integrity: Concerns about errors, duplicity and inconsistencies of data.
Security: Security refers to the protection of data from unauthorised access and use which could damage
organisational interest.
Privacy: Privacy refers to unauthorised access and use of data which could damage individuals interest.

(lxi )

Differentiate ERP from Extranet.

lxi.
The following points may be considered for distinguishing Extranet and ERP
i. ERP are more secure than Extranets
ii. ERP solutions are very expensive, but they have the capability to integrate and automate all operations
within and outside the organisation
iii. ERP solution can be compared with the best in the trade and can help the organisation to benchmark its
practices with the best in the industry
iv. ERP solutions take more time to implement at the dealer side and require setting up proper infrastructure in
place
v. ERP is software, whereas Extranet is a network, which includes hardware connectivity and software linking.
vi. ERP may require Extranet in course of its operation; but extranet does not require ERP to be operative.

(lxii )

What is JAVA?

lxii.
5.72 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
The original idea behind JAVA was to provide an operating system to home appliances like washing machine,
microwave oven, etc. although that did not became successful, but JAVA became popular on the Internet. JAVA
helps to make web pages more lively and realistic. It is a part of dynamic programming on the Internet. It is used
for accessing information in a dynamic fashion (e.g. for checking the reservation status on Railway’s Computerised
system, one can enter PNR number.

(lxiii)

What is ‘Hacking’?

lxiii.
Hacking is the deliberate accessing of on-line systems by unauthorised persons. Often this activity is considered by
the offender as fun and may often not be done with malicious intent. As modems and micros have become more
widespread, the threat of hacking has increased. Many systems now have dial-up facilities due to changing working
practices; this facilities entry into the system by the hacker after the telephone number has been obtained, or by
means of an auto dialer. Once a number has been obtained, hackers may them make available over the Internet.
A knowledgeable hacker can hide any evidence of their deeds by disabling the journal or console logs of the main
CPU.
There are several damaging options available, once the hacker has gained access to the system — for example:
• gain access to the file that holds all the ID codes, passwords and authorisations
• discover the method used for generating/authorising passwords
• discover maintenance codes, which would render the system easily accessible
• develop a program to appropriate user’s IDs/passwords
• interface with the access control system, to provide the hacker with open access to the system
• generate information which is of potential use to a competitor organisation
• provide the basis for fraudulent activity
• cause data corruption by the introduction of unauthorised computer programs and processing onto the
system (computer viruses)
• alter or delete files

(lxiv )

What are the disadvantages of automation?

lxiv.
These are —
• Downsizing or redundancies. Jobs of human being replaced by machines may cause unemployment, social
problems affecting economy.
• Possibility that jobs may become dehumanized. Workers will be required to maintain machines rather than
perform more interesting jobs. This may have a negative impact on morale removing some of the
efficiencies gained by using new production process.
• High capital expenditure in respect of new robots and similar automation equipment
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.73
• Increased maintenance costs of the automation units.
• Risk and uncertainty resulting from change. Resulting in change taking place due to conversion from
human-oriented to machine-oriented functioning, higher degree of risk and uncertainty is introduced into the
organisation. The efficiency and safety of work may suffer as workers become concerned about their future
employment prospects.

(lxv )

What does ‘Office Automation System’ means and includes.

lxv.
Office Automation System (OAS) refers to the use of mechanical, electrical and electronic devices to enhance
communication in the workplace and increase the efficiency and productivity of knowledge workers. OAS
includes:
i) Word processing. It is the use of an electronic device that automatically performs many of the tasks
necessary to create written documents such as letters, memos, etc.
ii) E-mail.
iii) Voice mail. Voice mail is just like electronic mail and performs storing, accessing, retrieving and
distributing messages using the telephone.
iv) Audio conferencing.
v) Video conferencing.
vi) Computer conferencing. Computer conferencing is the use a networked computer to all members of a
problem-solving team to exchange information concerning the problem that is solved.
vii) Teleconferencing. Teleconferencing includes all three forms of electronically-aided conferencing —
audio, video and computer.
viii) Facsmile transmission. Also known as fax, is the transfer of written or pictorial information by the use
of special equipment that can read a document image at one end of a communication channel and make
a copy at the other end;
ix) Electronic calendaring. It is the use of a networked computer to store and retrieve a manager’s
appointment calendar.
x) Desktop publishing. Desktop publishing is the use of a computer to prepare printed output, using
software with sophisticated publishing capabilities.
xi) Videotex. Videotex is the use of optical character recognition to convert paper or microfilm records to a
digital format for storage in a secondary storage device for easy retrieval and processing.
xii) Multimedia System. Multimedia systems are well integrated systems that store, retrieve and process
different types of data such as text, graphics, images full motion video, audio and animation. It helps
users to create, process, share and display information in a broad variety of formats.

(lxvi )

Draw the chart showing the types of computers.


5.74 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS

lxvi.
Types of Computers
C o m p u ter s

A N A L O G D IG IT A L H Y B R ID

P ers o n al
O rg a n is a tio n - W o rk -g ro u p
I n fo r m a t i o n
w id e sy stem S y stem
S y stem

S u p e rc o m p u te rs M id an g e o r P C s/L ap to p s/
M a i n fr a m e s M in i N o teb o o k s .
co m p u ters H a n d -h e ld c o m p u te rs .
w o rk s tatio n s P e n -b a s e d c o m p u ters .

(lxvii)

What is visual programming?

lxvii.
Visual programming facilitates users to visualize their code and its impact on the system. The program allows a
user to download competitor’s advertised prices from an external database. It then compares the competitor’s prices
with those of the user’s organisation and graphically displays comparisons of the prices.
Microsoft Company has developed Visual BASIC, designed to allow users to integrate MS Windows applications.
This feature can reduce the development time for many applications. Visual BASIC serves as a common macro
language for Access, Power Point, Word and Excel.

(lxviii
)

These days, ‘Outsourcing’ has become a very common term. What is it?

lxviii.
Outsourcing is the hiring of outside professional services to meet the in-house needs of an organisation. In
Information Systems, outsourcing means using external agencies to create, process, manage and maintain IS and to
provide the firm with a wide range of information-related services. Organisations outsource for reasons that can be
classified into four broad categories: Strategic focus, economies of scale, market forces and technical
considerations. One of the main concerns that managers face when it comes to outsourcing is legacy systems,
which are large systems (usually on mainframes) that handle the firm’s payroll, inventory management and so on.
There are three main outsourcing options with regard to legacy systems:
i) Outsource the maintenance of legacy systems and use in-house staff to build new systems.
ii) Outsource the development of new systems and keep in-house staff to run and maintain legacy systems.
iii) Use in-sourcing for both legacy systems and new systems. This involved treating the IS department as a
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.75
‘business within the business’ and training the systems development staff to meet present and future
development needs.
Advantage of outsourcing is that the responsibility of developing and delivering high-quality Information Systems
is on the outsourcing vendor, not on the organisation. Reputable outsourcers may be hired to provide state-of-the-art
technologies.
Disadvantage is that, in case a wrong, or incorrect, or correct but inappropriate vendor is chosen; or due to internal
problems, the vendor cannot give timely quality output, progress is deeply hampered or even halted. There is less
control over the vendor, when compared to the same work being done by internal employees. Outsourcing often
results in job-losses; when it does, fewer employees end up carrying a higher workload. This can be demoralizing
and unproductive, and can result in high employee turnover. Therefore, a firm must carefully analyse and balance
the pros and cons of outsourcing and take into account not only its information needs, but also the organisational
culture, the managerial style and the strengths and weaknesses of its IS personnel.

(lxix )

Write down the units of memory size.

lxix.
Unit Size of Memory
Byte 8 bits
Kilobyte (KB) 1024 bytes or 210 bytes
Megabyte (MB) 1024 KB or 220 bytes
Gigabyte (GB) 1024 MB or 230 bytes
Terabyte 1024 GB or 240 bytes

(lxx )

What are the reasons which necessitated the formation and implementation of the Information Technology Act?
Concisely discuss the objectives of the Act.

lxx.
Computers are intensely getting involved in all business activities, with special mention in the communication
aspect of business activities. Businessmen are increasingly using computers to create, transmit and store
information in electronic form instead of traditional paper documents. It is cheaper, easier to store and retrieve,
speedier to communicate. Although people are aware of the advantages which the electronic form of business
provides, people are reluctant to conduct business or conclude and transaction in the electronic form due to lack of
appropriate legal framework. Electronic commerce eliminates the need of paper-based transactions. The two
principal hurdles which stand in the way of facilitating e-commerce and e-governance, are the requirements of
writing and signature for legal recognition. At present many legal provisions assume the existence of paper based
records and documents which should bear signatures. The Law of Evidence is traditionally based upon paper-based
records and oral testimony. Hence, to facilitate e-commerce, the need for legal changes has become an urgent
necessity.
The Government of India realised the need for introducing a new law and for making suitable amendments to the
existing laws to facilitate e-commerce and give legal recognition to electronic records and digital signatures. The
legal recognition to electronic records and digital signatures in turn will facilitate the conclusion of contracts and
the creation of legal rights and obligations through the electronic communication like Internet. This gave birth to
the Information Technology Bill, 1999. In May 2000, both the houses of the Indian Parliament passed the
Information Technology Bill. The Bill received the assent of the President in August 2000 and came to be known as
the Information Technology Act, 2000. Cyber laws are contained in the IT Act, 2000. This Act aims to provide the
5.76 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
legal infrastructure for e-commerce in India and would have a major impact for e-business and the new economy in
India. The Act states that unless otherwise agreed, an acceptance of contract may be expressed by electronic means
of communication and the same shall have legal validity and enforceability.
Objectives of the Act are:
i) to grant legal recognition for transactions carried out by means of electronic data interchange and other
means of electronic communication commonly referred to as ‘e-commerce’ in place of paper based methods
communication;
ii) to give legal recognition to Digital Signature for authentication of any information or matter which requires
authentication under any law;
iii) to facilitate electronic filing of documents with Government departments;
iv) to facilitate electronic storage of data;
v) to facilitate and give legal sanction to e-fund transfers between banks and financial institutions;
vi) to give legal recognition for keeping books of account by Bankers in electronic form;
vii) to amend the Indian Penal Code, the Indian Evidence Act, 1872, the Banker’s Book Evidence Act, 1891 and
the Reserve Bank of India Act, 1934.

(lxxi )

Distinguish between the portable computing devices and their applications.

lxxi.
Portable computing devices and their applications.
Weight(
Category Description User type
)
Pocket devices < 454 g Pocket-size machine for A mobile user who does not
organisational applications need communication
capabilities
Hand-held computers < 454 g 8086-based machines that Field service person with data
contain an inexpensive entry applications.
docking station
Personal digital assistants < 1.4 kg A powerful hand-held Mobile users who desire two-
communication-intensive way communications for
device with a focus on ease business or personal use
of use
Notebooks < 1.8 kg A device with full PC User with heavy applications,
functionality but with a which may or may not require
reduced keyboard and non-random access memory.
screen and no floppy drive.
Pen-based devices < 2.5 kg A device with an input Field service person with data
stylus, using either the pen entry applications.
point or the pen windows
operating system.

 The weights indicated in this column are just an approximate figure (which can be more or less in reality, than what is
mentioned). The indicated weights give an overall view. The actual weight varies from models to models of the same
category and also from manufacturer to manufacturer.
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.77
(lxxii)

What is understood by “Digital Signature” and how is it used?

lxxii.
Meaning of Digital Signature.
Digital signature means use of some distinct digits in place of one’s signature. It is an electronic aid to authenticate
the identity of the sender. It is an extra data attached to a message that identifies and authenticates the sender and
ensures that the original message that identifies and authenticates the sender and ensure that the original message is
not altered in any manner.
Section 3 of Chapter III of the Act, describes the conditions subject to which an electronic record may be
authenticated by means of affixing digital signature. The digital signature is created in two distinct steps —
1. Message Digest.
a. First the electronic record is converted into a message digest by using a mathematical function
known as “hash function” which digitally freezes electronic record thus ensuring the integrity of
the content of the intended communications contained in the electronic record. Any tampering
with the contents of the electronic record will immediately invalidate the digital signature.
b. Use of Public key. Secondly, the identity of the person affixing the digital signature is
authenticated through the use of a private key, which attaches itself to the message digest and
which can be verified by anybody who has the public key corresponding to such private key. This
will enable anybody to verify whether the electronic record is retained intact or has been tampered
with since it was so fixed with the digital signature. It will also enable a person who has a public
key to identify the originator of the message.
2. Certification of Signatures. For transmitted public key safely and providing a proof that public key with
receiver belong to the person who has claimed for this, a certificate is obtained from a certifying authority
who gives Digital Certificate and ensure that public key actually belong to a person who has claimed for it.
Hash function means an algorithm mapping or translation of one sequence of bits into another, generally smaller,
set known as “hash result” such that an electronic record yields the same hash result every time the algorithm is
executed with the same electronic record as its input making it computationally infeasible means an algorithm
mapping or translation of one sequence of bits into another, generally smaller, set known as “hash result” such that
an electronic record yields the same hash result every time the algorithm is executed with the same electronic
record as its input making it computationally infeasible —
i) To derive or reconstruct the original electronic record from the hash result produced by the algorithm.
ii) Those two electronic records can produce the same hash result using the algorithm.
Thus, Hash function technique is used for checking the integrity of message.
Use of electronic signature is better due to following reasons —
i) These signature are safer as these cannot be forged.
ii) Authentication of full document is easy as in manual signatured document if it is signed by the parties only
on the last page, there is no way to check whether other pages are original as sighed by parties but digital
signatures in the same case ensures that the whole document (message) is intact.
iii) Lesser cost and time (high speed) in digital transmission of contracts and certificates than sending them
manually.
Hence, we understand how, why and where digital signatures are used and what are they.

(lxxiii
)
5.78 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
Discuss about some of the limitations of Digital Signature.

lxxiii.
Digital Certificates are safer and useful. Despite of becoming popular and getting legal approval, there are certain
limitations which hurdles their fast growth. Some of these limitations are as under.
• Digital signatures are issued for a particular duration, thereafter they have to be renewed by paying
necessary fees to the certifying authority. So, they involve recurring costs.
• Although digital signatures are much sage and secure, yet they are not free from the computer forgery
techniques like hacking, etc.
• They are not accepted uniformly like manual signatures. Manually, A person can use same signatures every
where but same is not the case with digital signatures; different authorities prescribe use of different digital
signature. For example, ICICI bank issues different signatures certificates to deal with its customers, and so
on. This increases cost for the user and is very inconvenient also.

(lxxiv )

What constitute the Criminal Offences under the Information Technology Act and what is the penalty for such
offences under the Act.

lxxiv.
Criminal Offences cover —
•Tampering with computer source documents (S. 65).
•Hacking computer system (S. 66)
•Publishing of information which is obscene in electronic form (S. 67)
•Electronic forgery, i.e. affixing of false digital signature, making false electronic record
•Electronic forgery for the purpose of harming reputation.
•Using as genuine a forges electronic record
•Publication of digital signature certificate for fraudulent purpose.
•Offences by companies.
•Breach of confidentiality and privacy.
•Publishing false Digital Signature Certificates (S. 73)
•Misrepresentation or suppressing of material fact.
For criminal offences, there are provisions of penalty under the IT Act, 2000; which includes monetary fine and/or
imprisonment.

(lxxv )

What is Digital Certificate and how is it issued? There are two types of Digital Certificates — Discuss.

lxxv.
Digital Certificates.
Chapter 5 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS 5.79
Digital Certificate is used to ensure the receiver that the sender’s public key is valid. For this purpose sender has to
obtain a Digital Certificate from an authority, known as Certification Authority. It is a proof that public key with
receiver belongs to the person who has claimed for this. Certification Authority certifies public key by digitally
signing sender public key with authority private key and authority put his sign on Digital Certificate. And any user
who wants to use some one’s public key can verify its validity by applying the certification authority public key to
the certificate. In this way, user would get actual public key of sender and can tally this public key and can tally this
public key with the public key supplied by sender.
Procedure for issuance of a Digital Signature Certificate. S. 35 lays down that an application for such certificate
shall be made in the prescribed form and shall be accompanied by a fee not exceeding Rs. 25,000. the fee shall be
prescribed by the Central Government, and different fees may be prescribed for different classes of applicants.
The section also provides that no Digital Signature Certificate shall be granted unless the Certifying Authority is
satisfied that —
» the applicant holds the private key corresponding to the public key to be listed in the Digital Signature
Certificate;
» The applicant holds a private key, which is capable of creating a digital signature;
» The public key to be listed in the certificate can be used to verify a digital signature affixed by the private
key held by the applicant.
No application shall be rejected unless the applicant has been given a reasonable opportunity of showing cause
against the proposed rejection.
S. 36 contains provisions regarding representations upon issuance of digital signature certificate by the C.A. While
issuing a Digital Signature Certificate the Certifying Authority should certify what it has complied with the
provisions of the Act, the rules and regulations made there under and also with other conditions mentioned in the
Digital Signature Certificate.
There are two types of digital certificates —
1. Personal Certificate. A personal certificate identifies the person to whom it is issued. It includes the name
and personal particulars of the person to whom it is issued. Its use can be associated with securing e-mail
messages and to access various websites without the use of username and password. Companies can take
these certificates for their employees who have to sign digitally for securing contracts and in other
dealings.
2. Server Certificates. A server certificate identifies a server or a computer. It includes the name of the host.
It is taken by the institutions for better securing purpose, to ensure that the information exchange by the
host with the other authorised computers is safe and cannot be accessed by any third person.

(lxxvi )

What is e-commerce? Which issues of e-commerce have been met by the Information Technology Act, and which
have not been addressed?

lxxvi.
E-commerce means filing of any form, application or other document, issue or grant of and license or permit or
payment in Government offices and its agencies may be done through electronic means or electronic form.
Chapter III of IT Act, 2000 describe the E-Governance. It has section 4 to 10 which specifies the procedures to be
followed for e-Governance. It provides the rules for following aspects of e-governance and e-records —
1. Legal recognition of electronic record. (S. 4)
2. Legal recognition of Digital Signature. (S. 5)
3. Use of electronic records and Digital Signature in Government and its agencies (S. 6)
4. Retention of electronic records (S. 7)
5.80 MANAGEMENT INFORMATION SYSTEMS IN MODERN BUSINESS
5. Publication of rule, regulation, etc. in electronic gazette (S. 8)
6. Power of the Central Government to make rules in respect of Digital Signature (S. 10).
However, the Act, has not address the following areas —
• Protection for domain names;
• Infringement of copyright laws;
• Jurisdiction aspect of electronic contracts (viz. Jurisdiction of Courts and tax authorities);
• Taxation of goods and services traded through e-commerce; and
• Stamp duty aspect of electronic contracts.