MC0076- Management Information Systems

Assignment Set- 1
1. What do you understand by Information processes data? Ans:Data are generally considered to be raw facts that have undefined uses and application; information is considered to be processed data that influences choices, that is, data that have somehow been formatted, filtered, and summarized; and knowledge is considered to be an understanding derived from information distinctions among data, information, and knowledge may be derived from scientific terminology. The researcher collects data to test hypotheses; thus, data refer to unprocessed and unanalysed numbers. When the data are analysed, scientists talk about the information contained in the data and the knowledge acquired from their analyses. The confusion often extends to the information systems context, and the three terms maybe used interchangeably.

2. How do you retrieve information from manual system? Ans:Information retrieval (IR) is the area of study concerned with searching for documents, for information within documents, and for metadata about documents, as well as that of searching structured storage, relational databases, and the World Wide Web. There is overlap in the usage of the terms data retrieval, document retrieval, information retrieval, and text retrieval, but each also has its own body of literature, theory, praxis, and technologies. IR is interdisciplinary, based on computer science, mathematics, library science, information science, information architecture, cognitive psychology, linguistics, statistics and law. Key Drawbacks in Manual Paper Based Systems No transparency. Limited accountability. Cant retrieve information quickly. Chance of loss. Cant track or monitoring status of file processing. Scope for tampering contents. Not able to answer customer questions. Status of file is not known to the applicant. Entire organization is dependent on the file custodian for answers. Manual processes can be unreliable, slow and error prone. Errors reduce confidence in the organization. Restricted to onsite working hours and geography. Manual data entry, searching for lost files, and manual rework waste time and valuable resources. Papers can be lost at any point along the process, exposing potentially sensitive data. Physical papers can be hard to track and take up physical space for storage

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3. What are the challenges of information management? Ans: - Challenges of Information Management In identifying their information management requirements, individuals face four major challenges in addition to securing the most appropriate information. First, they must deal with large quantities of information that may create overload. Second, they may face insufficient or conflicting information. Third, they must find ways to enhance their personal productivity. Fourth, they must acquire and maintain the technical skills needed for effective personal information management. 1. Dealing with Quantities of Information The gap between the amount of information that an organization can collect and the ability of its employees to make sense of that information has been widening rather than narrowing. The early fear that computers would so improve a persons ability to process and manage information that a job holder would need only one-third to one-half the time to do his or her job has been dispelled The reverse has occurred. Often employees face an infoglut, an overload of information. As individuals move higher in the organizational hierarchy and assume more managerial responsibility, information overload become an even more significant challenge. To avoid such overload individuals must carefully asses their information needs and then find effective ways of managing the required and available information. They must also find ways to manage data better. 2. Facing Insufficient or Conflicting Information Although computers can make large quantities of information available to individuals, such information may not address their needs. Ramesh, ASM of Airtel, may wish to do some library research about competitors products. In spite of the large amount of information in the librarys electronic catalog, she may not be able to secure the precise information she needs. Because computers process input from diverse sources, users may also obtain conflicting information if one source updates information more frequently than another does. 3. Enhancing Personal Productivity Employees in any organization increasingly use information technology to improve their personal productivity. To ensure high productivity, employees must know how to use computers to facilitate, not hinder, their performance. They must know how to access the information they require and recognize when manual data collection and processing is adequate. Often employees must lobby their employers to add new technology that will help increase personal productivity. The ability to show the cost-effectiveness of additional expenditures for diagnosing and meeting information needs is critical. Employees must also understand and demonstrate when advanced technology is a detriment rather than an asset. 4. Maintaining Technical Skills
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Finally, using information technology effectively requires continuous updating of technical skills. Although many companies provide training to their employees, others do not. Ensuring that employees have the appropriate skills has both financial and time cost implications. As a result, employees may find their mobility and productivity limited by the extent to which they can learn new technical skills independently of their employer. 4. Explain the different components of MIS. Ans:- The components of MIS The physical components of MIS comprise the computer and communications hardware, software, database, personnel, and procedures. Almost all organizations employ multiple computer systems, ranging from powerful mainframe machines (sometimes including supercomputers) through minicomputers, to widely spread personal computers (also known as microcomputers). The use of multiple computers, usually interconnected into networks by means of telecommunications, is called distributed processing. The driving forces that have changed the information processing landscape from centralized processing, relying on single powerful mainframes, to distributed processing have been the rapidly increasing power and decreasing costs of smaller computers. Though the packaging of hardware subsystems differs among the three categories of computers (mainframes, minicomputers, and microcomputers), all of them are similarly organized. Thus, a computer system comprises a central processor (though multiprocessors with several central processing units are also used), which controls all other units by executing machine instructions; a hierarchy of memories; and devices for accepting input (for example, a keyboard or a mouse) and producing output (say, a printer or a video display terminal). The memory hierarchy ranges from a fast primary memory from which the central processor can fetch instructions for execution; through secondary memories (such as disks) where on-line databases are maintained; to the ultra high capacity archival memories that are also employed in some cases. COMPONENT DESCRIPTION Hardware Multiple computer systems: mainframes, minicomputers, personal computers Computer system components are: central processor(s), memory hierarchy, input and output devices Communications: local area networks, metropolitan area networks, and wide area networks Software Database Personnel Systems software and applications software Organized collections of data used by applications software Professional cadre of computer specialists; end users in certain aspects of their work

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Procedures Specifications for the use and operation of computerized information systems collected in user manuals, operator manuals, and similar documents

Multiple computer systems are organized into networks in most cases. Various network configurations are possible, depending upon an organizations need. Fast local area networks join machines, most frequently clusters of personal computers, at a particular organizational site such as a building or a campus. The emerging metropolitan area networks serve large urban communities. Wide area networks connect machines at remote sites, both within the company and in its environment. Through networking, personalcomputer users gain access to the broad computational capabilities of large machines and to the resources maintained there, such as large databases. This connectivity converts personal computers into powerful workstations. Computer software falls into two classes: systems software and applications software. Systems software manages the resources of the system and simplifies programming. Operating systems (UNIX, for example) control all the resources of a computer system and enable multiple users to run their programs on a computer system without being aware of the complexities of resource allocation. Even if you are just using a personal computer, a complex series of actions takes place when, for example, you start the machine, check out its hardware, and call up a desired program. All of these actions fall under the control of an operating system, such as DOS or IBM OS/2. Telecommunications monitors manage computer communications; database management systems make it possible to organize vast collections of data so that they are accessible for fast and simple queries and the production of reports. Software translators-compilers or interpreters, make it possible to program an application in a higher-level language, such as COBOL or C. The translator converts program statements into machine instructions ready for execution by the computers central processor. Many categories of applications software are purchased as ready-to-use packages. Applications software directly assists end users in their functions. Examples include generalpurpose spreadsheet or word processing programs, as well as the so-called vertical applications serving a specific industry segment (for example, manufacturing resource planning systems or accounting packages for small service businesses). The use of purchased application packages is increasing. However, the bulk of applications software used in large organizations are developed to meet a specific need. Large application systems consist of a, number of programs integrated by the database. To be accessible, data items must be organized so that individual records and their components can be identified and, if needed, related to one another. A simple way to organize data is to create files. A file is a collection of records of the same type. For example, the employee file contains employee records, each containing the same fields (for example, employee name and annual pay), albeit with different values. Multiple files may be organized into a database, or an integrated collection of persistent data that serves a number of applications. The individual files of a database are interrelated. Professional MIS personnel include development and maintenance managers, systems analysts, programmers, and operators, often with highly specialized skills. The hallmark of the present stage in organizational computing is the involvement of end users to a significant

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degree in the development of information systems. Procedures to be followed in using, operating, and maintaining computerized systems are a part of the system documentation. 5. Mention different characteristics of MRS. Ans:- Characteristics of MRS 1) MRS are usually designed by MIS professionals, rather than end users, over an extensive period time, with the use of life-cycle oriented development methodologies (as opposed to first building a simpler prototype system and then refining it in response to user experience). Great care is exercised in developing such systems because MRS is large and complex in terms of the number of system interfaces with various users and databases. 2) MRS is built for situations in which information requirements are reasonably well known and are expected to remain relatively stable. Modification of such systems, like their development, is a rather elaborate process. This limits the informational flexibility of MRS but ensures a stable informational environment. 3) MRS does not directly support the decision-making process as a search for alternative solutions to problems. Naturally, information gained through MRS is used in the managers decision-making process. Well-structured decision rules, such as economic order quantities for ordering inventory or accounting formulas for computing various forms of return on equity, are built into the MRS itself. 4) MRS is oriented towards reporting on the past and the present, rather than projecting the future. 5) MRS generally has limited analytical capabilities-they are not built around elaborate models, but rather rely on summarization and extraction from the database according to given criteria. Based on simple processing of the data summaries and extracts, report information is obtained and printed (or, if of limited size, displayed as a screen) in a prespecified format. 6) MRS generally report on internal company operations rather than spanning the companys boundaries by reporting external information. 6. List down the Potential External Opportunities, potential internal Weaknesses. Ans:Potential External Opportunities

Serve additional customer groups Enter new markets or segments Expand product line to meet broader range of customer needs Diversify into related products Vertical integration Falling trade barriers in attractive foreign markets
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Complacency among rival firms Faster market growth Potential Internal Weaknesses No clear strategic direction Obsolete facilities Lack of managerial depth and talent Missing key skills or competence Poor track record in implementing strategy Plagued with internal operating problems Falling behind in R&D Too narrow a product line Weak market image Weaker distribution network Below-average marketing skills Unable to finance needed changes in strategy Higher overall unit costs relative to key competitors

7. What are the technology evaluation factors that need to be considered during ERP selection. Ans:are:The Technology Evaluation factors that need to be considered during ERP selection

1) Client server architecture and its implementation-two tier or three tier. 2) Object orientation in development and methodology. 3) Handling of server and client based data and application logic. 4) Application and use of standards in all the phases of development and in the product. 5) Front end tools and back end data based management system tools for the data, process presentation management.
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6) Interface mechanism: Data transfer, real time access, OLE/ODBC compliance. 7) Use of case tool, screen generators, report writers, screen painter and batch processor. 8) Support system technologies like bar coding, EDI, imaging, communication, network. 9) Down loading to PC based packages, MS-Office, lotus notes, etc. 10) Operating system and its level of usage in the system. 11) Hardware-software configuration management.

8. What are the common business exposures and risk of using internet by organization. Ans:Common Business Exposures Some of the Possible Causes

Business Exposure Erroneous keeping Unacceptable accounting Business interruption

record Incomplete or inaccurate processing of transactions Improper interpretation accounting practices Many factors including organizational databases or Willful disregard for

irreparable

damage

to

Erroneous management decisions Fraud embezzlement Statutory sanctions Excessive costs

Misleading information or failing to acquire necessary information

or Deliberate communication of wrong information Violation of laws or reporting regulations Failure to acquire approvals for high-value expenditures

Loss or destruction of Lack of adequate safeguards over organizational resources resources Loss of competitive Many factors including use of poor IS/IT to satisfy customer requirements advantage

Risks of Internet to Organizations Contracting viruses

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Interception of passwords by hackers Interception of sensitive/commercial data Illegal/objectionable use of site by users Inability to effectively disconnected Internet to own employees Misrepresentation of identity by site visitors Legal loopholes in electronic contracts No security against eavesdropping No security against interception Misuse of supplied/captured information Misrepresentation of identity of site

9. Explain with relevant example the concept of business process. Also mention their elements. Ans:Business process

For initiating business re-engineering, one is required to make some very basic and fund a- mental changes in ones conventional thinking. The business is re-engineered through process reengineering and the business has a number of processes which together produce the business results. You concentrate on the process and not on the task when it comes to reengineering. The business process is defined as a set of activities performed across the organisation creating an output of value to the customer. Every process has a customer who may be internal or external to the organisation. The scope of the process runs across the departments and functions and ends up in substantial value addition which can be measured against the value expectation of a customer. For example, the order processing scope in the traditional sense is within the marketing department. But when it comes to re-engineering, the scope expands to manufacturing, storing, delivering and recovering the money. Likewise, the scope of the bill payment is not limited to the accounts and finance departments but it covers ordering the vendors, receipt and acceptance or goods and paying the bill amount. In a classical organisational set-up, the different processes are handled in parts within the four walls of the department and the functions are limited to the responsibility assigned to them. When the bill payment process is to be re-engineered, it will be re-engineered right from the purchase ordering to cheque payment to the vendor. The reason for covering the purchase ordering as a part of the bill payment process, is that the purchase order information decides the number of aspects of bill payment.
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The basic element of the processes is motivation to perform certain activities. In the process execution, the data is gathered, processed and stored. The data is used in the process to generate the information which would be checked, validated and used for decision making. The decision is then communicated. The process is executed through the basic steps such as receiving the input, measuring the input, analysing the document, performing, processing, recording, accessing data, producing the results and communicating them. Basic elements of business process are: Motivation to perform Data gathering, processing and storing Information processing Checking, validating and control Decision making Communication All these relate to human initiative. A business process in any area of the business organisation performs through basic steps, such as, receive input, measure, analyze, document, perform, process, record / store, access, produce and communicate. These steps are performed a number of times across the execution process. When the process is performed, it consumes resources and time. The reengineering approach attempts to eliminate or shorten the steps so that resource consumption is reduced and time of process execution is shortened. It eliminates redundancy by eliminating the steps, which do not contribute, to the value customer is looking for. A business process defined for re-engineering has a clear cut start and end, resulting into a business result. In organisation, there are long processes and short processes. There are critical processes and not so critical processes. The critical business processes are those, which contribute to the value significantly. While the non-critical processes do not contribute much to the value, the customer is looking for. For example, the process of receiving a visitor in the organisation could be considered as noncritical. But the process of new product development from the concept to the prototype is critical as it is expected to contribute high value to the customer. If the external customer focus is taken as a criterion for process selection, then all the processes which generate and add value to the customer are called the value stream processes. The value stream processes are critical and become the immediate candidates for reengineering. The other processes in the organisation contribute to the overheads of performing the business function. For example, the processes involving attendance, leave, payment of wages, security, travelling and accounting are not value stream processes as the resources employed in them do not create a value or improve a value to the customer. Such processes are a second priority as far as re-engineering is concerned. Every process is made of a series of activities. In each activity some work is done which produces some result for processing into the next activity. If the work done under any activity is analyzed, it will be seen that the people are moving papers
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and products to achieve some result. In the process they collect the information for decision making and then carry out a physical activity of pushing the product or the output using the paper for record, document and communication.

Fig: Work model Figure above shows this work model comprising six elements. The people who manage the business are engaged in the series of such work modules distributed across the organisation. When such work modules are viewed together as a single entity, it is a business process. In such process, participating people are considered as a team working with the sole objective of achieving the customer expectation on value. In reengineering exercise all the six entities, viz., people, paper, activity, information, decision and product stand to scrutiny through a fundamental rethinking for radical redesign to produce dramatic results. 10. Explain the link between MIS and BPR. Ans:- MIS and BPR Any exercise towards building design of the management information system will be preceded by an exercise of business process re-engineering. Building the MIS is a long-term project. It is, therefore, essential to have a relook at the organisation where the mission and goals of the organisation are likely to be replaced. The business itself would undergo a qualitative change in terms of the business focus, work culture and style and the value system. This would change the platform of business calling for a different MIS. The MIS will concentrate more on the performance parameter evaluation which is different in the re-engineered organisation. The data capture, processing, analysis and reporting would be process central and performance efficiency would be evaluated in relation to the value generated by the processes. The decision support systems will be integrated in the business process itself, where triggers are used to move the process. The triggers could be business rules and stored procedures, enabling the process to become automotive in its execution. The MIS in the reengineered organisation would be more of a performance monitoring tool to start with and then a control for the performance. The traditional MIS is function-centered like finance, production, material, etc. The Management Information System in a re-engineered organisation would be process centred, evaluating customer satisfaction, expectations and perceptions.
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The role of Management Information System will be raised to a level where the following activities would be viewed for the management action: Control of process cycle time Work group efficiency Customer satisfaction index Process efficiency and effectiveness Effectiveness of the Management in enterprise management and not in enterprise resource The strength of the organisation in terms of knowledge, learning and strategic effectiveness The traditional role of the MIS as a decision supporter will continue, however.

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