Spring 2012 Master of Computer Application (MCA) Semester IV MC0076 Management Information Systems 4 Credits (Book ID: B0901)

Assignment Set 1 (60 Marks)

======================================================================================= Each question carries six marks 10 x 6 = 60. 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 unanalyzed numbers. When the data are analyzed, 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. The acquisition of information is a first step in its use. We can obtain information from either formal or informal sources. Formal sources provide information in a relatively organized and predictable fashion, for example, business forms; electronic monitoring equipment such as digital thermometers; and machine-readable purchased data such as an encyclopedia (Personal records, corporate annual reports, summarized transaction histories) on a compact disc. Informal sources provide information in a less structured way and include conversations with customers, suppliers, and other employees, as well as general observations of personal and organizational activities. Generally, acquiring information through informal sources costs less, but the information acquired may be harder to organize and use effectively. Data acquisition can occur manually or electronically. Managers often hand-write evaluation reports or salespeople maintain written records of customer orders. Increasingly, managers can enter evaluation data directly into the computer, and salespeople can use point-of-sale terminals to record detailed sales information electronically. Experts estimate that electronic forms for capturing data cost at least 70 percent less to design, purchase, use, carry, and revise than the equivalent paper forms. Processing information describes transforming it into a usable form. Processing typically occurs at two times: first, between the acquisition and storage of information, and second, between its retrieval and communication. The processing that occurs between acquisition and storage generally requires a large amount of personal labor. Manual processing, involves duplicating, sorting, and filing data. Electronic processing, such as with electronic scanners, involves transforming and entering the data into an electronic form. Although both manual and computerized processing may require significant clerical time and incur high costs, electronic processing can reduce these costs. Processing occurs between storing and communicating information for both manual and computerized systems. In manual systems, filing clerks typically perform the processes of retrieval, formatting, and display. When summaries or special analyses are required, analysts with special skills, such as skills in finance or accounting, may process the data. Manual information processing involves high labor and time costs but low equipment costs. Manual processing of large volumes of data tends to be more expensive than computer processing. In computerized systems the processing between retrieval and communication allows more analysis and display possibilities in a shorter time. The costs of computerized processing include rental or depreciation of computer equipment, the labor costs of operating the equipment, and the costs associated with programming software to retrieve, format, and display information. Computerized processing involves lower labor and time costs but higher equipment costs than manual processing. 2. How do you retrieve information from manual system? Ans. An information retrieval process begins when a user enters a query into the system. Queries are formal statements of information needs, for example search strings in web search engines. In information retrieval a query does not uniquely identify a single object in the collection. Instead, several objects may match the query, perhaps with different degrees of relevancy. An object is an entity that is represented by information in a database. User queries are matched against the database information. Depending on the application the data objects may be, for example, text documents, images, audio, mind maps or videos. Often the documents themselves are not kept or stored directly in the IR system, but are instead represented in the system by document surrogates or metadata. Most IR systems compute a numeric score on how well

each object in the database match the query, and rank the objects according to this value. The top ranking objects are then shown to the user. The process may then be iterated if the user wishes to refine the query 3. What are the challenges of information management? 4. Explain the different components of MIS. Ans. The environment in which organizatio ns op erate from the in formatio nal p ersp ectiv e in terms proposed by George Huber of the University of Texas, who has studied the organizational design required by an information society. His conclusions provide a framework for determining what is required of an organizational information system. These, according to Huber, are the hallmarks of an information society: 1) Dramatic Increase of Available Knowledge: Whether measured in terms of the number of scholarly journals, patents and copyrights, or in terms of the volumes of corporate communications, both the production and the distribution of knowledge have undergone a manifold increase. 2) Growth of Complexity: Huber characterizes complexity in terms of numerosity, diversity, and interdependence. A growing world population and the industrial revolution combined to produce numerosity, or a growing number of human organizations. To succeed, people and organizations learned to specialize: they do things differently and organize themselves differently to accomplish specialized tasks. These differences lead to diversity. Two principal factors have led to increased interdependence. The first as been the revolution in the infrastructure of transportation and communication. The second factor is specialization in firms that make narrowly defined products, as opposed to the self-sufficiency of companies producing a complex product down to its minute elements. A companys product is typically a part of a larger system, produced with contributions from a number of interdependent firms (consider a car or a computer). Moreover, interdependence has increased on a global scale. Even the most isolated of countries participates in some way in the international division of labor. Organizations operating in the public sector, while rarely in a competitive situation, are still governed by the demands of society. Pressures on the public sector in democratic societies, along with the pressures conveyed from the private sector, also make the environment in which public organizations operate more complex. 3) Increased Turbulence: The pace of events in an information society is set by technologies. The speeds of todays computer and communication technologies have resulted in a dramatic increase in the number of events occurring within a given time. Consider the volumes and speed of trades in the securities and currency markets. Widespread use of telefacsimile, as another example, has removed the "float"-the lag between sending and receiving-in written communications. Equally important, because of the infrastructure discussed earlier, the number of events that actually influence an organizations activities (effective events) has also grown rapidly. The great amount of change and turbulence pressuring organizations today thus calls for rapid innovation in both product and organizational structure. To thrive, an organization must have information systems able to cope with large volumes of information in a selective fashion. Huber concludes that these factors an increase of available knowledge, growth of complexity, and increased turbulence-are not simply ancillary to a transition to the new societal form. Rather, they will be a permanent characteristic of the information society in the future. Moreover, we should expect that these factors would continue to expand at an accelerating rate (a positive feedback exists). Bar ring some catastrophic event, we expect that the rapidly changing environment will be not only "more so" but also "much more so." To succeed in an information society, organizations must be compatible with this environment 5. Mention different characteristics of MRS. Ans. Characteristics of MRS are: 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 pre specified 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 are: a. Serve additional customer groups b. Enter new markets or segments c. Expand product line to meet broader range of customer needs d. Diversify into related products e. Vertical integration f. Falling trade barriers in attractive foreign market g. Complacency among rival firms h. Faster market growth Potential Internal Weakness are: a. No clear strategic direction b. Obsolete facilities c. Lack of managerial depth and talent d. Missing key skills or competence e. Poor track record in implementing strategy f. Plagued with internal operating problems g. Falling behind in R&D h. Too narrow a product line i. Weak market image j. Weaker distribution network k. Below-average marketing skills l. Unable to finance needed changes in strategy m. Higher overall unit costs relative to key competitors 7. What are the technology evaluation factors that need to be considered during ERP selection. Ans. List are as follows: a. Client server architecture and its implementation-two tier or three tier. b. Object orientation in development and methodology. c. Handling of server and client based data and application logic. d. Application and use of standards in all the phases of development and in the product. e. Front end tools and back end database management system tools for the data, process presentation management. Interface mechanism: Data transfer, real time access, OLE/ODBC compliance. f. Use of case tool, screen generators, report writers, screen painter and batch processor. g. Support system technologies like bar coding, EDI, imaging, communication, network. h. Down loading to PC based packages, MS-Office, lotus notes, etc. i. Operating system and its level of usage in the system. j. Hardware-software configuration management. 8. What are the common business exposures and risk of using internet by organization. Ans. 1. Internet can be used in illegal ways, as there are no laws related to its use. Many servers contain illegal, immoral, defamatory information (which cannot be legally communicated using facilities like TV, radio, etc.).

2. There is minimal or no control over the Internet (unlike telephone, radio, TV, etc.) Limited banning of material in Internet is not possible i.e. all-or-none rule. 3. Free speech advocates say that screening of incoming material is the resp onsibility of the receiving end 4. There is no law against Spamming i.e. sending unsolicited mail 5. Massive flaming of large quantity of e-mail to one address. The question arises Is sending/receiving large quantity of mail ethical? Risk of internet to Organization: Contracting viruses 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. 10. Explain the link between MIS and BPR.

Ans. Any exercise towards building design of the management information system will be processed by an exercise of business re-engineering. Building the MIS is a long term project. It is, therefore, essential to have a relook at the organizational where the mission and goals of the organization are likely to be replaced. The business itself would undergo a qualitative change in terms of the change in the platform of business calling for different MIS. The MIS will be concentrated more on the performance parameter evaluation which is different in the parameter evaluation which is different in the re-engineered organization. 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 automation in its execution. The MIS in the re-engineered organization would be more of a performance monitoring tool to start with and them a control for the performance. The traditional MIS in function-centered like finance, production, material, etc. The Management Information System in a re-engineered organization would be process centered, evaluating customer satisfaction, expectation and perceptions. The role of Management Information Systems 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 organization in terms of knowledge, learning and strategic effectiveness

Spring 2012 Master of Computer Application (MCA) Semester IV MC0076 Management Information Systems 4 Credits (Book ID: B0901) Assignment Set 2 (60 Marks)
======================================================================================= Each question carries six marks 10 x 6 = 60. 1. Explain the needs for information in the following areas

a) Cost leadership Ans. A cost leadership strategy seeks to achieve competitive advantage by allowing the business unit to make more profit than its competitors when selling to customers at the same price. Complete information about costs makes costs easier to control and creates a competitive advantage. The company requires quality internal information to reduce costs by achieving efficiencies in production, distribution, and sales. Even hospitals can use information technology to reduce costs by eliminating paperwork and improving services. Bedside terminals can store patient records; electronic conferencing can bring the expertise of a team of physicians in remote locations to a single problem; home health terminals allow patients to consult with doctors online; and diagnostic systems can support physicians diagnoses, identify preferred treatments, and specify their cost benefits. b) Global corporation Ans. A global corporation has rationalized its international operations to achieve greater efficiencies through central control. Although its strategy and marketing are based on the concept of a global market, a headquarters organization makes all major decisions. A company pursuing a global strategy needs to transfer the operational and financial data of its foreign subsidiaries to headquarters in real time or on a frequent basis. A high level of information flows from subsidiary to parent, while limited data move from parent to subsidiary. c) ERP architecture Ans. Any information system has three basic components, viz., the Data Management, the Application Logic, and the Presentation. These components can be built with the client server role definitions. The client is a user and the server provides the services required by the user the to run the system. Since, the information needs are dynamically changing, the architecture required is to separate the data and its management from its application. The user requires the choice of using the data as it suits him the most. Hence, the application logic has to be separate from the data. There is also variability in the manner how the application logic is developed and presented. The architecture could be a two tier or three tier as shown in Fig below.

Client/Server model Architecture

d) Technology Evaluation Factor: Ans. Factors are:

a. b. c. d. e. f. g. h. i. j. k. Client server architecture and its implementation-two tier or three tier. Object orientation in development and methodology. Handling of server and client based data and application logic. Application and use of standards in all the phases of development and in the product. Front end tools and back end data based management system tools for the data, process presentation management. Interface mechanism: Data transfer, real time access, OLE/ODBC compliance. Use of case tool, screen generators, report writers, screen painter and batch processor. Support system technologies like bar coding, EDI, imaging, communication, network. Down loading to PC based packages, MS-Office, lotus notes, etc. Operating system and its level of usage in the system. Hardware-software configuration management.

2. How information is selected and organized? 3. Briefly explain components of MIS. Ans. 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 pow erful mainframe machines (sometimes including supercomputers) through minicomputers, to widely spread personal computers (also known as microcom puters). 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. COMPONENT DESCRIPTION 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 Systems software and applications software Database Personnel Procedures Organized collections of data used by applications software Professional cadre of computer specialists; end users in certain aspects of their work Specifications for the use and operation of computerized information systems collected in user manuals, operator manuals, and similar documents

Hardware Software

4. Explain with relevant examples the ascertaining the class of information need for the business execution. 5. How do you define Management Reporting Systems? Ans. Management reporting systems (MRS) are the most elaborates of the management-oriented MIS components. Indeed, some writers call MRS management information systems, the name we reserve for the entire area of informational support of operations and management. The main objective of MRS is to provide lower and middle management with printed reports and inquiry capabilities to help maintain operational and management control of the enterprise. 6. Explain with relevant examples the concept of business process. Also mention their elements. 7. What are the uses of Executive Information Systems?

Ans. Executive information systems (EIS) provide direct support for top managers. Characteristically, senior managers
employ a great variety of informal sources of information, so that computerized information systems are able to provide only limited assistance. However, the chief executive officer, senior and executive vice presidents, and the board of directors also need to be able to track the performance of their company and of its various units, assess the business environment, and develop strategic directions for the companys future. In particular, these executives need a great diversity of external information to compare their companys performance to that of its competition, and to investigate the general trends of the economies in the many countries where the company may be doing business. Frequently, top managers equip a special "war room" with large screens onto which the EIS projects color displays. 8. Explain various Organizational limits to Relational Decision Making. 9. Explain different components of DSS. Ans. The three principal DSS subsystems and their principal capabilities are shown in figure 10.1. Various commercial systems support DSS development and package these DSS capabilities in a variety of ways by distrib uting them among a series of optional modules.

Components of DSS

10. Write a note on a) Ethical and Social issues with E-Commerce. 1. Internet can be used in illegal ways, as there are no laws related to its use. Many servers contain illegal, immoral, defamatory information (which cannot be legally communicated using facilities like TV, radio, etc.). 2. There is minimal or no control over the Internet (unlike telephone, radio, TV, etc.). Limited banning of material in Internet is not possible i.e. all-or-none rule. 3. Free speech advocates say that screening of incoming material is the responsibility of the receiving end 4. There is no law against Spamming i.e. sending unsolicited mail 5. Massive flaming of large quantity of e-mail to one address. The question arises Is sending/receiving large quantity of mail ethical? b) Global corporation Ans. A global corporation has rationalized its international operations to achieve greater efficiencies through central control. Although its strategy and marketing are based on the concept of a global market, a headquarters organization makes all major decisions. A company pursuing a global strategy needs to transfer the operational and financial data of its foreign subsidiaries to headquarters in real time or on a frequent basis. A high level of information flows from subsidiary to parent, while limited data move from parent to subsidiary. e) Technology Evaluation Factor Ans. Factors are: 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.

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.