MB0031: Management

Information Systems
[Assignment SET1 & SET2]

Name : P. Srinath
SMDUE ID : 520923307
Center : Mehbub College Campus, Secunderabad
Subject Code : MB0031
Subject : Management Information Systems
 ASSIGNMENT MBA SEM II Subject Code:
MB0031 SET 1
1. a. Explain the impact of MIS in the area of police Information
system.
b. What are the functions and disadvantages of MIS?

MIS is an Information system which helps in providing the

management of an organization with information which is used by
management for decision making.

A management information system (MIS) is a subset of the overall

internal controls of a business covering the application of people, documents,
technologies, and procedures by management accountants to solving
business problems such as costing a product, service or a business-wide
strategy. Management information systems are distinct from regular
information systems in that they are used to analyze other information
systems applied in operational activities in the organization. Academically,
the term is commonly used to refer to the group of information management
methods tied to the automation or support of human decision making, e.g.
Decision Support Systems, Expert systems, and Executive information
systems.

During the period of preindustrial revolution most of the data

processing was done manually.It was after the industrial revolution that the
computers slowly started replacing manual labour. The modern digital
computer was basically designed to handle scientific calculations. During the
period 1940 to 1960 computers were commercially used for census and
payroll work. This involved large amount of data and its processing. Since
then the commercial application exceeded the scientific applications for
which the computer were mainly intended for. MIS is an Information system
which helps in providing the management of an organization with information
which is used by management for decision making.

Impact of MIS MIS has a major impact on the functions of any

organization. The organization derives benefits from the systems in the
following form:
(a) Speedy access to information,
(b) Interpretation of data,
(c) Quick decisions,
(d) Speedy actions,
(e) Increased productivity and thereby increase in the profit
(f) Reduced transaction cost

The usage of Electronic media for data storage and processing the
data is an integral part of MIS. The texts and images in electronic forms are
effective in communicating ideas from source to destination. It is technology
driven in the sense it revolves around wireless electronic gadgets, internet,
money cards credits cards, debit cards, id cards, atm cards etc.

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 MIS is very significant in modern day education system where we come
across usage of LCDs, Smart boards, internet etc in class rooms. In the
tourism MIS has led to radical changes in booking system, tourist information
system, hotel facilities, accommodation facilities, transportation modes
available, images of the facilities that could be provided etc.

Transportation
Teaching
planning
methodolog
y

Better
Office
Tourists
automation
Information MIS

Increased
Better Production
Banking
system

Function of MIS: The main function of MIS is to help the managers and the
executives in the organization in decision making.

Large quantities of data like customers information, competitors

information, personnel records, sales data, accounting data etc is
collected from internal sources like the company records and external
sources like annual reports and publications.
The collected data is organized in the form of a database.
The data from the database is processed and analysed by using
different tools and techniques.
The results of the analysis is properly presented to the
managers to help them in decision making.

Disadvantages of MIS

Highly senstive requires constant monitoring.

Budgeting of MIS extremely difficult.
Quality of outputs governed by quality of inputs.
Lack of flexiblity to update itself.
Effectiveness decreases due to frequent changes in top management
Takes into account only qualitative factors and ignores non-qualitative
factors like morale of worker, attitude of worker etc...

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 2. A. Write a scenario which shows the applications of OLAP systems.
B. How does Information technology influence the organizations
goals?

Online Analytical Processing (OLAP): OLAP refers to a system

in which there are predefined multiple instances of various modules used in
business applications. Any input to such a system results in verification of the
facts with respect to the available instances. A nearest match is found
analytically and the results displayed form the database. The output is sent
only after thorough verification of the input facts fed to the system.

The system goes through a series of multiple check of the

various parameters used in business decision making. OLAP is also referred
to as a multi dimensional analytical model. Many big companies use OLAP to
get good returns in business. The querying process of the OLAP is very
strong. It helps the management take decisions like which month would be
appropriate to launch a product in the market, what should be the production
quantity to maximize the returns, what should be the stocking policy in order
to minimize the wastage etc.

Deman
d

Region

Sales

Model of OLAP
IT influences Organizations goals There is always a mention about
what IT contributes to corporate strategy. It was recognized that corporation
achieved a significant competitive advantage by adopting suitable IT
concepts in building

While many people think of decision support systems as a specialized

part of a business, most companies have actually integrated this system into
their day to day operating activities. For instance, many companies
constantly download and analyze sales data, budget sheets and forecasts
and they update their strategy once they analyze and evaluate the current

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 results. Decision support systems have a definite structure in businesses, but
in reality, the data and decisions that are based on it are fluid and constantly
changing.

Types of DSS

Data-Driven DSS take the massive amounts of data available through

the company's TPS and MIS systems and cull from it useful information which
executives can use to make more informed decisions. They don't have to
have a theory or model but can "free-flow" the data. The first generic type of
Decision Support System is a Data-Driven DSS. These systems include file
drawer and management reporting systems, data warehousing and analysis
systems, Executive Information Systems (EIS) and Spatial Decision Support
Systems. Business Intelligence Systems are also examples of Data-Driven
DSS. Data-Driven DSS emphasize access to and manipulation of large
databases of structured data and especially a time-series of internal company
data and sometimes external data. Simple file systems accessed by query
and retrieval tools provide the most elementary level of functionality. Data
warehouse systems that allow the manipulation of data by computerized
tools tailored to a specific task and setting or by more general tools and
operators provide additional functionality.

Data-Driven DSS with Online Analytical Processing (OLAP) provide the

highest level of functionality and decision support that is linked to analysis of
large collections of historical data.

Model-Driven DSS: A second category, Model-Driven DSS, includes

systems that use accounting and financial models, representational models,
and optimization models. Model-Driven DSS emphasize access to and
manipulation of a model. Simple statistical and analytical tools provide the
most elementary level of functionality. Some OLAP systems that allow
complex analysis of data may be classified as hybrid DSS systems providing
modeling, data retrieval and data summarization functionality. Model-Driven
DSS use data and parameters provided by decision-makers to aid them in
analyzing a situation, but they are not usually data intensive. Very large
databases are usually not needed for Model-Driven DSS.

Model-Driven DSS were isolated from the main Information Systems of

the organization and were primarily used for the typical "what-if" analysis.
That is, "What if we increase production of our products and decrease the
shipment time?" These systems rely heavily on models to help executives
understand the impact of their decisions on the organization, its suppliers,
and its customers.

Knowledge-Driven DSS: The terminology for this third generic

type of DSS is still evolving. Currently, the best term seems to be Knowledge-
Driven DSS. Adding the modifier driven to the word knowledge maintains a
parallelism in the framework and focuses on the dominant knowledge base
component. Knowledge-Driven DSS can suggest or recommend actions to
managers. These DSS are personal computer systems with specialized

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 problem-solving expertise. The "expertise" consists of knowledge about a
particular domain, understanding of problems within that domain, and "skill"
at solving some of these problems. A related concept is Data Mining. It refers
to a class of analytical applications that search for hidden patterns in a
database. Data mining is the process of sifting through large amounts of data
to produce data content relationships.

Document-Driven DSS: A new type of DSS, a Document-Driven DSS

or Knowledge Management System, is evolving to help managers retrieve
and manage unstructured documents and Web pages. A Document-Driven
DSS integrates a variety of storage and processing technologies to provide
complete document retrieval and analysis. The Web provides access to large
document databases including databases of hypertext documents, images,
sounds and video. Examples of documents that would be accessed by a
Document-Based DSS are policies and procedures, product specifications,
catalogs, and corporate historical documents, including minutes of meetings,
corporate records, and important correspondence. A search engine is a
powerful decision aiding tool associated with a Document-Driven DSS.

Communications-Driven and Group DSS: Group Decision Support

Systems (GDSS) came first, but now a broader category of Communications-
Driven DSS or groupware can be identified. This fifth generic type of Decision
Support System includes communication, collaboration and decision support
technologies that do not fit within those DSS types identified. Therefore, we
need to identify these systems as a specific category of DSS. A Group DSS is
a hybrid Decision Support System that emphasizes both the use of
communications and decision models. A Group Decision Support System is an
interactive computer-based system intended to facilitate the solution of
problems by decision-makers working together as a group. Groupware
supports electronic communication, scheduling, document sharing, and other
group productivity and decision support enhancing activities We have a
number of technologies and capabilities in this category in the framework
Group DSS, two-way interactive video, White Boards, Bulletin Boards, and
Email.

The five levels Scott Morton proposes five levels of complexity at

which reconfiguration can be applied. The following five levels indicates how
it is possible to reconfigure strategic information system based on the
influence of IT.

Localised exploitation: This is part of the Evolutionary level and

exists within individual business functions. It addresses the local efficiency
and effectiveness of a information system.
Internal integration: This is part of the evolutionary level and exists
between different systems and applications. It evolves out of rationalization
using a common IT platform. Efficiency and effectiveness are enhanced by
coordination and cooperation within the enterprise;
Business process redesign: This is part of the revolutionary level. It
involves more thorough reevaluation of the enterprise valuechain and the
production process.

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 Business network redesign: This is also part of the revolutionary
level. It involves reconfiguration of the scope and tasks of the business
network. It also helps in the creation and delivery of products and services.
Coordination and cooperation extend, selectively, beyond the enterprise's
boundaries; and
Business scope redefinition: It is also part of the revolutionary
level. It involves migration of functions across the enterprise's boundaries. It
may change the organization's conception of the business.

Scott Morton's Five Levels of ITInduced Reconfiguration (Scott Morton

1991)

(b) Software Development Life Cycle (SDLC)

India Outsourcing > Software Development Life Cycle

As in any other engineering discipline, software engineering also has

some structured models for software development. This document will
provide you with a generic overview about different software development
methodologies adopted by contemporary software firms. Read on to know
more about the Software Development Life Cycle (SDLC) in detail.

Curtain Raiser: Like any other set of engineering products,

software products are also oriented towards the customer. It is either market
driven or it drives the market. Customer Satisfaction was the buzzword of the
80's. Customer Delight is today's buzzword and Customer Ecstasy is the
buzzword of the new millennium. Products that are not customer or user
friendly have no place in the market although they are engineered using the
best technology. The interface of the product is as crucial as the internal
technology of the product.

Market Research: A market study is made to identify a potential

customer's need. This process is also known as market research. Here, the
already existing need and the possible and potential needs that are available
in a segment of the society are studied carefully. The market study is done
based on a lot of assumptions. Assumptions are the crucial factors in the
development or inception of a product's development. Unrealistic
assumptions can cause a nosedive in the entire venture. Though assumptions
are abstract, there should be a move to develop tangible assumptions to
come up with a successful product.

Research and Development: Once the Market Research is carried

out, the customer's need is given to the Research & Development division
(R&D) to conceptualize a cost-effective system that could potentially solve
the customer's needs in a manner that is better than the one adopted by the
competitors at present. Once the conceptual system is developed and tested
in a hypothetical environment, the development team takes control of it. The
development team adopts one of the software development methodologies
that is given below, develops the proposed system, and gives it to the
customer.

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 The Sales & Marketing division starts selling the software to the
available customers and simultaneously works to develop a niche segment
that could potentially buy the software. In addition, the division also passes
the feedback from the customers to the developers and the R&D division to
make possible value additions to the product.

While developing a software, the company outsources the non-core

activities to other companies who specialize in those activities. This
accelerates the software development process largely. Some companies work
on tie-ups to bring out a highly matured product in a short period.

Popular Software Development Models The following are some

basic popular models that are adopted by many software development firms

1. System Development Life Cycle (SDLC) Model

2. Prototyping Model
3. Rapid Application Development Model
4. Component Assembly Model

A. System Development Life Cycle (SDLC) Model This is also

known as Classic Life Cycle Model (or) Linear Sequential Model (or) Waterfall
Method. This model has the following activities.

1. System/Information Engineering and Modeling As

software is always of a large system (or business), work begins by
establishing the requirements for all system elements and then allocating
some subset of these requirements to software. This system view is essential
when the software must interface with other elements such as hardware,
people and other resources. System is the basic and very critical requirement
for the existence of software in any entity. So if the system is not in place,
the system should be engineered and put in place. In some cases, to extract
the maximum output, the system should be re-engineered and spruced up.
Once the ideal system is engineered or tuned, the development team studies
the software requirement for the system.

2. Software Requirement Analysis This process is also

known as feasibility study. In this phase, the development team visits the
customer and studies their system. They investigate the need for possible
software automation in the given system. By the end of the feasibility study,
the team furnishes a document that holds the different specific
recommendations for the candidate system. It also includes the personnel
assignments, costs, project schedule, target dates etc.... The requirement
gathering process is intensified and focussed specially on software. To
understand the nature of the program(s) to be built, the system engineer or
"Analyst" must understand the information domain for the software, as well
as required function, behavior, performance and interfacing. The essential
purpose of this phase is to find the need and to define the problem that
needs to be solved.

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 3. System Analysis and Design In this phase, the
software development process, the software's overall structure and its
nuances are defined. In terms of the client/server technology, the number of
tiers needed for the package architecture, the database design, the data
structure design etc... are all defined in this phase. A software development
model is thus created. Analysis and Design are very crucial in the whole
development cycle. Any glitch in the design phase could be very expensive to
solve in the later stage of the software development. Much care is taken
during this phase. The logical system of the product is developed in this
phase.

4. Code Generation The design must be translated into a

machine-readable form. The code generation step performs this task. If the
design is performed in a detailed manner, code generation can be
accomplished without much complication. Programming tools like compilers,
interpreters, debuggers etc... are used to generate the code. Different high
level programming languages like C, C++, Pascal, Java are used for coding.
With respect to the type of application, the right programming language is
chosen.

B. Prototyping Model This is a cyclic version of the linear

model. In this model, once the requirement analysis is done and the design
for a prototype is made, the development process gets started. Once the
prototype is created, it is given to the customer for evaluation. The customer
tests the package and gives his/her feed back to the developer who refines
the product according to the customer's exact expectation. After a finite
number of iterations, the final software package is given to the customer. In
this methodology, the software is evolved as a result of periodic shuttling of
information between the customer and developer. This is the most popular
development model in the contemporary IT industry. Most of the successful
software products have been developed using this model - as it is very
difficult (even for a whiz kid!) to comprehend all the requirements of a
customer in one shot. There are many variations of this model skewed with
respect to the project management styles of the companies. New versions of
a software product evolve as a result of prototyping.

C. Rapid Application Development (RAD) Model The RAD

modelis a linear sequential software development process that emphasizes
an extremely short development cycle. The RAD model is a "high speed"
adaptation of the linear sequential model in which rapid development is
achieved by using a component-based construction approach. Used primarily
for information systems applications, the RAD approach encompasses the
following phases:

1. Business modeling The information flow among business

functions is modeled in a way that answers the following questions:

What information drives the business process?

What information is generated?
Who generates it?

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 Where does the information go?
Who processes it?

2. Data modeling The information flow defined as part of the

business modeling phase is refined into a set of data objects that are needed
to support the business. The characteristic (called attributes) of each object is
identified and the relationships between these objects are defined.

3. Process modeling The data objects defined in the data-

modeling phase are transformed to achieve the information flow necessary to
implement a business function. Processing the descriptions are created for
adding, modifying, deleting, or retrieving a data object.

4. Application generation The RAD model assumes the use of

the RAD tools like VB, VC++, Delphi etc... rather than creating software using
conventional third generation programming languages. The RAD model works
to reuse existing program components (when possible) or create reusable
components (when necessary). In all cases, automated tools are used to
facilitate construction of the software.

5. Testing and turnover Since the RAD process emphasizes

reuse, many of the program components have already been tested. This
minimizes the testing and development time.
Back to top

D. Component Assembly Model Object technologies provide the

technical framework for a component-based process model for software
engineering. The object oriented paradigm emphasizes the creation of
classes that encapsulate both data and the algorithm that are used to
manipulate the data. If properly designed and implemented, object oriented
classes are reusable across different applications and computer based
system architectures. Component Assembly Model leads to software
reusability. The integration/assembly of the already existing software
components accelerates the development process. Nowadays many
component libraries are available on the Internet. If the right components are
chosen, the integration aspect is made much simpler.

3. A. Explain the role of systems analyst in SDLC. Explain with a

scenario.
B. Draw a data flow diagram for an hospital management system.

SDLC: System development cycle stages are sometimes known as

system study. System concepts which are important in developing business
information systems expedite problem solving and improves the quality of
decisionmaking. The system analyst has to do a lot in this connection. They
are confronted with the challenging task of creating new systems an planning
major changes in the organization.

The system analyst gives a system development project, meaning and

direction. The typical breakdown of an information systems life cycle includes

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 a feasibility study, requirements, collection and analysis, design, prototyping,
implementation, validation, testing and operation. It may be represented in
the form of a block diagram as shown below:

1. Feasibility study It is concerned with determining the cost

effectiveness of various alternatives in the designs of the information system
and the priorities among the various system components.
2. Requirements, collection and analysis It is concerned
with understanding the mission of the information systems, that is, the
application areas of the system within the enterprise and the problems that
the system should solve.
3. Design It is concerned with the specification of the information
systems structure. There are two types of design, database design and
application design. The database design is the design of the database design
and the application design is the design of the application programs.
4. Prototyping A prototype is a simplified implementation that is
produced in order to verify in practice that the previous phases of the design
were well conducted.
5. Implementation It is concerned with the programming of the
final operational version of the information system. Implementation
alternatives are carefully verifies and compared.
6. Validation and testing It is the process of assuring that each
phase of the development process is of acceptable quality and is an accurate
transformation from the previous phase.

Data Flow Diagram Data flow diagrams represent the logical flow of
data within the system. DFD do not explain how the processes convert the
input data into output. They do not explain how the processing takes place.
DFD uses few symbols like circles and rectangles connected by arrows to
represent data flows. DFD can easily illustrate relationships among data,
flows, external entities an stores. DFD can also be drawn in increasing levels
of detail, starting with a summary high level view and proceeding more
detailed lower level views.

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4. What are the features contributing to success and failures of MIS
models?

Factors Contributing to Success of MIS The following features

contributing a lot for the success of MIS and are listed below:-
1. The MIS is integrated into the managerial functions. It sets clear
objectives to ensure that the MIS focuses on the major issues of the
business. Also adequate development resources are provided and the
human and organisational barriers to progress are removed.
2. An appropriate information processing technology required to meet the
data processing and analysis needs of the users of the MIS is selected.
3. The MIS is oriented, defined and designed in terms of the users
requirements and its operational viability is ensured.
4. The MIS is kept under continuous surveillance, so that its open system
design is modified according to the changing information needs.
5. MIS focuses on the business results and goals, and highlights the
factors and reasons for non-achievement.
6. MIS is not allowed to end up into an information generation mill
avoiding the noise in the information and the communication system.
7. The MIS recognises that manager is a human being and therefore, the
systems must consider all the human behavioural factors in the process of
the management.
8. The MIS recognises that the different information needs for different
objectives must be met with. The globalisation of information in isolation
from the different objectives leads to information overload and its non-
use.
9. The MIS is easy to operate and, therefore, the design of the MIS has
such features which make up a user-friendly design.

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 10.MIS recognises that the information needs become obsolete and new
needs emerge. The MIS design, therefore, has a basic potential capability
to quickly meet new needs of information.
11.The MIS concentrates on the developing the information support to
manage critical success factors. It concentrates on the mission critical
applications serving the needs of the top management.

Factors Contributing to Failure of MIS The common observed features

which are responsible for the failure of MIS is as follows:-

1. The MIS is conceived as a data processing and not as an information

processing system.
2. The MIS does not provide that information which is needed by the
managers but it tends to provide the information generally the function
calls for. The MIS then becomes an impersonal system.
3. Underestimating the complexity in the business systems and not
recognising it in the MIS design leads to problems in the successful
implementation.
4. Adequate attention is not given to the quality control aspects of the
inputs, the process and the outputs leading to insufficient checks and
controls in the MIS.
5. The MIS is developed without streamlining the business processing
systems in the organisation.
6. Lack of training and appreciation that the users of the information and
the generators of the data are different, and they have to play an
important responsible role in the MIS.
7. The MIS does not meet certain critical and key factors of its users such
as a response to the query on the database, an inability to get the
processing done in a particular manner, lack of user-friendly system and
the dependence on the system development personnel.
8. A belief that the computerised MIS can solve all the management
problems of planning and control of the business.
9. Lack of administrative discipline in following the standardised systems
and procedures, wrong coding and deviating from the system
specifications result in incomplete and incorrect information.
10.The MIS does not give perfect information to all the users in the
organisation. Any attempt towards such a goal will be unsuccessful
because every user has a human ingenuity, bias, certain assumptions not
known to the designer. The MIS cannot make up these by providing
perfect information.

5. What are the limitations of ERP systems? How do ERP packages help
in overcoming theses limitations?

Enterprise Resource Planning Manufacturing management

systems have evolved in stages over the few decades from a simple means
of calculating materials requirements to the automation of an entire
enterprise. Around 1980, over frequent changes in sales forecasts, entailing

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 continual readjustments in production, as well as the unsuitability of the
parameters fixed by the system, led MRP (Material Requirement Planning) to
evolve into a new concept : Manufacturing Resource Planning (or MRP2) and
finally the generic concept Enterprise Resource Planning (ERP)

The initials ERP originated as an extension of MRP (material

requirements planning then manufacturing resource planning). ERP systems
now attempt to cover all basic functions of an enterprise, regardless of the
organization's business or charter. Nonmanufacturing businesses, nonprofit
organizations and governments now all utilize ERP systems. To be considered
an ERP system, a software package must provide the function of at least two
systems. For example, a software package that provides both payroll and
accounting functions could technically be considered an ERP software
package.

However, the term is typically reserved for larger, more broadly based
applications. The introduction of an ERP system to replace two or more
independent applications eliminates the need for external interfaces
previously required between systems, and provides additional benefits that
range from standardization and lower maintenance to easier and/or greater
reporting capabilities.

Some organizations -typically those with sufficient inhouse IT skills to

integrate multiple software products - choose to implement only portions of
an ERP system and develop an external interface to other ERP or standalone
systems for their other application needs. For example, one may choose to
use the HRMS from one vendor, and the financials systems from another, and
perform the integration between the systems themselves.

Ideally, ERP delivers a single database that contains all data for the
software modules, which would include:

Enterprise Resource Planning is a term originally derived from

manufacturing resource planning that followed material requirements
planning . MRP evolved into ERP when "routings" became a major part of the
software architecture and a company's capacity planning activity also
became a part of the standard software activity. ERP systems typically handle
the manufacturing, logistics, distribution, inventory, shipping, invoicing, and
accounting for a company. Enterprise Resource Planning or ERP software can
aid in the control of many business activities, like sales, marketing, delivery,
billing, production, inventory management, quality management, and human
resource management.

ERP systems saw a large boost in sales in the 1990s as companies

faced the Y2K problem in their legacy systems. Many companies took this
opportunity to replace their legacy information systems with ERP systems.
This rapid growth in sales was followed by a slump in 1999, at which time
most companies had already implemented their Y2K solution.

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 ERPs are crossfunctional and enterprise wide. All functional
departments that are involved in operations or production are integrated in
one system. In addition to manufacturing, warehousing, logistics, and
information technology, this would include accounting, human resources,
marketing, and strategic management.

The Ideal ERP System

An ideal ERP system is when a single database is utilized and contains
all data for various software modules. These software modules can include:

1. Manufacturing: Some of the functions include; engineering,

capacity, workflow management, quality control, bills of material,
manufacturing process, etc.
2. Financials: Accounts payable, accounts receivable, fixed assets,
general ledger and cash management, etc.
3. Human Resources: Benefits, training, payroll, time and
attendance, etc
4. Supply Chain Management: Inventory, supply chain planning,
supplier scheduling, claim processing, order entry, purchasing, etc.
5. Projects: Costing, billing, activity management, time and expense,
etc.
6. Customer Relationship Management: sales and marketing,
service, commissions, customer contact, calls center support, etc.
7. Data Warehouse: Usually this is a module that can be accessed by
an organizations customers, suppliers and employees.

Limitations of ERP Success depends on the skill and

experience of the workforce, including training about how to make the
system work correctly. Many companies cut costs by cutting training budgets.
Privately owned small enterprises are often undercapitalized, meaning their
ERP system is often operated by personnel with inadequate education in ERP
in general, such as APICS foundations, and in the particular ERP vendor
package being used.

1. Personnel turnover; companies can employ new managers lacking

education in the company's ERP system, proposing changes in business
practices that are out of synchronization with the best utilization of the
company's selected ERP.
2. Customization of the ERP software is limited. Some customization
may involve changing of the ERP software structure which is usually not
allowed.
3. Reengineering of business processes to fit the "industry standard"
prescribed by the ERP system may lead to a loss of competitive advantage.
4. ERP systems can be very expensive to install often ranging from
30,000 US Dollars to 500,000,000 US Dollars for multinational companies.
5. ERP vendors can charge sums of money for annual license renewal
that is unrelated to the size of the company using the ERP or its profitability.
6. Technical support personnel often give replies to callers that are
inappropriate for the caller's corporate structure. Computer security concerns
arise, for example when telling a non programmer how to change a database

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 on the fly, at a company that requires an audit trail of changes so as to meet
some regulatory standards.
7. ERPs are often seen as too rigid and too difficult to adapt to the
specific workflow and business process of some companies this is cited as
one of the main causes of their failure.
8. Systems can be difficult to use.
9. Systems are too restrictive and do not allow much flexibility in
implementation and usage.
10. The system can suffer from the "weakest link" problem an
inefficiency in one department or at one of the partners may affect other
participants.
11. Many of the integrated links need high accuracy in other
applications to work effectively. A company can achieve minimum standards,
then over time "dirty data" will reduce the reliability of some applications.
12. Once a system is established, switching costs are very high for any
one of the partners (reducing flexibility and strategic control at the corporate
level).
13. The blurring of company boundaries can cause problems in
accountability, lines of responsibility, and employee morale.

14. Resistance in sharing sensitive internal information between

departments can reduce the effectiveness of the software.
15. Some large organizations may have multiple departments with
separate, independent resources, missions, chainsofcommand, etc, and
consolidation into a single enterprise may yield limited benefits.
16. There are frequent compatibility problems with the various legacy
systems of the partners.
17. The system may be overengineered relative to the actual needs of
the customer.

Before ERP systems, each department in an organization would most

likely have their own computer system, data and database. Unfortunately,
many of these systems would not be able to communicate with one another
or need to store or rewrite data to make it possible for cross computer
system communication. For instance, the financials of a company were on a
separate computer system than the HR system, making it more intensive and
complicated to process certain functions. Once an ERP system is in place,
usually all aspects of an organization can work in harmony instead of every
single system needing to be compatible with each other. For large
organizations, increased productivity and less types of software are a result.

6. Explain the relationship between artificial intelligence and neural

networks with
the help of a scenario.

Ans:- Artificial Intelligence is the science and technology based on

various functions to develop a system that can think and work like a human
being. It can reason, analyze, learn, conclude and solve problems. The
systems which use this type of intelligence are known as artificial intelligent
systems and their intelligence is referred to as artificial intelligence. It was

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 said that the computer dont have common sense. Here in AI, the main idea
is to make the computer think like human beings, so that it can be then said
that computers also have common sense. More precisely the aim is to obtain
a knowledge based computer system that will help managers to take quick
decisions in business.

Artificial Intelligence can be classified into various branches like

Natural Language Processing (NLP), Speech Recognition, Automated
Programming, Machine Learning, Pattern Recognition and Probabilistic
Networks. Most of the software developed for AI have been through Prolog,
C++, Java and LISP. These programming languages provide facility of
creating various functions of business activity, extension of a function,
handling dynamic situations in business, providing uniformity in application
etc.

A neuron is a micro cell which is connected to thousands of

other micro cells in the brain and all the other parts of the human body
containing nerves. It is a system which tries to learn from the database and
the manager then decides what the right answer is. The entire neural
network is realized in the form of software. The software renders the
computer as a problem solver. The neural networks goes on building strong
database for problem solving depending upon the decisions taken by the
manager in the form of response confirmation given to the system by the
manager. Neural networks can be used in various business applications like
forecasting, stock analysis, market analysis etc.

Advantages of Neural Networks Neural networks are used to

forecast some complex data patterns. When designed properly, they can be
used as experts for a particular project. They have the ability to adjust to the
changing environment and thus are very flexible. For example, it can forecast
net asset values of mutual funds.

Artificial intelligence is a field of science and technology based on

disciplines such as computer science, biology, psychology, linguistics,
mathematics and engineering. The goal of AI is to develop computers that
can simulate the ability to think, see, hear, walk, talk and feel. In other words,
simulation of computer functions normally associated with human
intelligence, such as reasoning, learning and problem solving. AI can be
grouped under three major areas: cognitive science, robotics and natural
interfaces. Cognitive science focuses on researching on how the human brain
works and how humans think and learn. Applications in the cognitive science
area of AI include the development of expert systems and other knowledge-
based systems that add a knowledge base and some reasoning capability to
information systems. Also included are adaptive learning systems that can
modify their behavior based on information they acquire as they operate.
Chessplaying systems are some examples of such systems.
Fussy logic systems can process data that are incomplete or
ambiguous. Thus, they can solve semi structured problems with incomplete
knowledge by developing approximate inferences and answers, as humans
do.

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 Neural network software can learn by processing sample problems and
their solutions. As neural nets start to recognize patterns, they can begin to
program themselves to solve such problems on their own. Neural networks
are computing systems modeled after the human brains mesh like network
of interconnected processing elements, called neurons. The human brain is
estimated to have over 100 billion neuron brain cells. The neural networks
are lot simpler in architecture. Like the brain, the interconnected processors
in a neural network operate in parallel and interact dynamically with each
other.
This enables the network to operate and learn from the data it
processes, similar to the human brain. That is, it learns to recognize patterns
and relationships in the data. The more data examples it receives as input,
the better it can learn to duplicate the results of the examples it processes.
Thus, the neural networks will change the strengths of the interconnections
between the processing elements in response to changing patterns in the
data it receives and results that occur.
For example, neural network can be trained to learn which credit
characteristics result in good or bad loans. The neural network would
continue to be trained until it demonstrated a high degree of accuracy in
correctly duplicating the results of recent cases. At that point it would be
trained enough to begin making credit evaluations of its own.

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 ASSIGNMENT MBA SEM II Subject Code:
MB0031 SET 2
1. Explain the different business models that work together in an E-
enterprise system. Give example for each.

Managing an E-business & Challenges before an E-business -Due to

Internet capabilities and web technology, traditional business organization
definition has undergone a change where scope of the enterprise now
includes other company locations, business partners, customers and vendors.
It has no geographic boundaries as it can extend its operations where
Internet works. All this is possible due to Internet and web moving traditional
paper driven organization to information driven Internet enabled E-business
enterprise. E-business enterprise is open twenty-four hours, and being
independent, managers, vendors, customers transact business anytime from
anywhere. Internet capabilities have given E-business enterprise a cutting
edge capability advantage to increase the business value. It has opened new
channels of business as buying and selling can be done on Internet. It
enables to reach new markets across the world anywhere due to
communication capabilities. It has empowered customers and vendors /
suppliers through secured access to information to act, wherever necessary.
The cost of business operations has come down significantly due to the
elimination of paper-driven processes, faster communication and effective
collaborative working. The effect of these radical changes is the reduction in
administrative and management overheads, reduction in inventory, faster
delivery of goods and services to the customers.

In E-business enterprise traditional people organization based on

'Command Control' principle is absent. It is replaced by people organization
that is empowered by information and knowledge to perform their role. They
are supported by information systems, application packages, and decision-
support systems. It is no longer functional, product, and project or matrix
organization of people but E-organization where people work in network
environment as a team or work group in virtual mode. E-business enterprise
is more process-driven, Technology-enabled and uses its own information and
knowledge to perform. It is lean in number, flat in structure, broad in scope
and a learning organization. In E-business enterprise, most of the things are
electronic, use digital technologies and work on databases, knowledge bases,
directories and document repositories. The business processes are conducted
through enterprise software like ERP, SCM, and CRM supported by data
warehouse, decision support, and knowledge management systems. Today
most of the business organizations are using Internet technology, network,
and wireless technology for improving the business performance measured in
terms of cost, efficiency, competitiveness and profitability. They are using E-
business, Ecommerce solutions to reach faraway locations to deliver product
and services. The enterprise solutions like ERP, SCM, and CRM run on Internet
(Internet / Extranet) & Wide Area Network (WAN). The business processes
across the organization and outside run on E-technology platform using

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 digital technology. Hence today's business firm is also called E-enterprise or
Digital firm.
The paradigm shift to E-enterprise has brought four transformations,
namely:
1. Domestic business to global business.
2. Industrial manufacturing economy to knowledge-based service
economy.
3. Enterprise Resource Management to Enterprise Network Management.
4. Manual document driven business process to paperless, automated,
electronically transacted business process.

These transformations have made conventional organization design

obsolete.

In E-enterprise, business is conducted electronically. Buyers and sellers

through Internet drive the market and Internet-based web systems. Buying
and selling is possible on Internet. Books, CDs, computer, white goods and
many such goods are bought and sold on Internet. The new channel of
business is well-known as Ecommerce. On the same lines, banking,
insurance, healthcare are being managed through Internet E-banking, E-
billing, E-audit, & use of Credit cards, Smart card, ATM, E-money are the
examples of the Ecommerce application. The digital firm, which uses Internet
and web technology and uses E-business and Ecommerce solutions, is a
reality and is going to increase in number.

MIS for E-business is different compared to conventional MS design of

an organization. The role of MIS in E-business organization is to deal with
changes in global market and enterprises. MIS produces more knowledge-
based products. Knowledge management system is formally recognized as a
part of MIS. It is effectively used for strategic planning for survival and
growth, increase in profit and productivity and so on. To achieve the said
benefits of E-business organization, it is necessary to redesign the
organization to realize the benefits of digital firm. The organization structure
should be lean and flat. Get rid of rigid established infrastructure such as
branch office or zonal office. Allow people to work from anywhere. Automate
processes after reengineering the process to cut down process cycle time.
Make use of groupware technology on Internet platform for faster response
processing. Another challenge is to convert domestic process design to work
for international process, where integration of multinational information
systems using different communication standards, country-specific
accounting practices, and laws of security are to be adhered strictly. Internet
and networking technology has thrown another challenge to enlarge the
scope of organization where customers and vendors become part of the
organization. This technology offers a solution to communicate, coordinate,
and collaborate with customers, vendors and business partners. This is just
not a technical change in business operations but a cultural change in the
mindset of managers and workers to look beyond the conventional
organization. It means changing the organization behaviour to take
competitive advantage of the E-business technology.

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 The last but not the least important is the challenge to organize and
implement information architecture and information technology platforms,
considering multiple locations and multiple information needs arising due to
global operations of the business into a comprehensive MIS. E-COMMERCE is
a second big application next to ERP. It is essential deals with buying and
selling of goods. With the advent of intent and web technology, E-Commerce
today covers an entire commercial scope online including design and
developing, marketing, selling, delivering, servicing, and paying for goods.
Some E-Commerce application add order tracking as a feature for customer
to know the delivery status of the order.

E-Collaboration helps work effectively on applications like calendaring

and scheduling tasks, event, project management, workflow application, work
group application. E-collaboration system components are internet, Intranet,
Extranet and LAN, WAN networks for communication through GroupWare
tools, browser.

Let us illustrate the model using an event in the business such as

receipt of material for a job to be processed on the shop floor. In this event
there is a transaction receipt of material, which needs to be processed, and
then a workgroup will use this information of material receipt. Each member
of this workgroup has a different goal.

2. What are the different emerging fields in MIS? Explain with an

application of your own for each.

A Strategic Information System (SIS) is a system to manage

information and assist in strategic decision making. A strategic information
system has been defined as, "The information system to support or change
enterprise's strategy."

A SIS is a type of Information System that is aligned with business

strategy and structure. The alignment increases the capability to respond
faster to environmental changes and thus creates a competitive advantage.
An early example was the favourable position afforded American and United
Airlines by their reservation systems, Sabre and Apollo. For many years these
two systems ensured that the two carriers' flights appeared on the first
screens observed by travel agents, thus increasing their bookings relative to
competitors. A major source of controversy surrounding SIS is their
sustainability.

SISs are different from other comparable systems as:

they change the way the firm competes.

they have an external (outward looking) focus.
they are associated with higher project risk.
they are innovative (and not easily copied).

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 It is mainly concerned with providing and organization and its
members an assistance to perform the routine tasks efficiently and
effectively. One of the major issue before any organization is the challenge of
meeting its goals and objectives. Strategic IS enable such organization in
realizing their goals. Strategic Information System (SIS) is a support to the
existing system and helps in achieving a competitive advantage over the
organizations competitors in terms of its objectives. This unit deals with the
critical aspects of the strategic information system. This units indicates the
theoretical concepts and the way in which the same are realized in practice.
The flow of the unit is in such a way that it starts with the development of
contemporary theory about strategic uses of corporations' internal
information systems leading to systems which transcend the boundaries of
particular organizations. The process whereby strategic information systems
are created or identified is then examined. A number of weaknesses in the
existing body of theory are identified, and suggestions made as to directions
in which knowledge is or may be progressing. A strategic information system
is concerned with systems which contribute significantly to the achievement
of an organization's overall objectives. The body of knowledge is of recent
origin and highly dynamic, and the area has an aura of excitement about it.
The emergence of the key ideas, the process whereby strategic information
systems come into being is assessed, areas of weakness are identified, and
directions of current and future development suggested.

Information system is regarded as a tool to provide various services to

different management functions. The tools have been developing year by
year and the application of the tool has become more and more diverse. In
management it is now a very power means to manage and control various
activities and decision making process. The original idea of automating
mechanical processes got quickly succeeded by the rationalization and
integration of systems. In both of these forms, IS was regarded primarily as
an operational support tool, and secondarily as a service to management.
Subsequent to the development, it was during the last few years that an
additional potential was discovered. It was found that, in some cases,
information technology (IT) had been critical to the implementation of an
organization's strategy. An organizations strategy supported by information
system fulfilling its business objectives came to be known as Strategic
Information System. The strategic information system consists of functions
that involved gathering, maintenance and analysis of data concerning
internal resources, and intelligence about competitors, suppliers, customers,
government and other relevant organizations.

3. How is MIS used for decision making in the organization?

Todays managers depend on information systems for decision making.
The managers have handful of data around them but manually they cannot
process the data accurately and with in the short period of time available to
them due to heavy competition in modern world. Therefore mangers depend
on information systems.

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 The concept of MIS

Management: Management has been defined in a variety of ways,

but for our purposes it comprises the process or activities what managers do
in the operation of their organization: Plan, Organize, Initiate and Control
operations.

Information Data are facts and figures that are not currently being
used in a decision processes and usually take the form of historical records
that are recorded and filed without immediate intent to retrieve for decision
making.
Information consists of data that have been retrieved, processed or
otherwise used for information or inference purposes, argument, or as a basis
for forecasting or decision making.
System can be described simply as a set of elements joined together
for a common objective. A subsystem is Part of a larger system with which we
are concerned. All systems are part of larger systems.
The objective of an MIS (Management Information System) is to
provide information for decision making on planning, initiating, organizing,
and controlling the operations of the subsystems of the form and to provide a
synergetic organization in the process.

Decision Support System: It is sometimes described as the next

evolutionary step after Management Information Systems (MIS) . MIS support
decision making in both structured and unstructured problem environments..
It supports decision making at all levels of the organization .IS (Information
Systems) are intended to be woven into the fabric of the organizations , not
standing alone. IS support all aspects of the decision making process.MIS are
made of people, computers, procedures, databases, interactive query
facilities and so on. They are intended to be evolutionary/adaptive and easy
for people to use.

Methods of Decision Making:MIS is a technique for making

programmed decisions. If we include the computer and management science
as integral parts or tools of computer based information systems, the
prospects for a revolution in programmed decision making are very real. Just
as a manufacturing process is becoming more and more automated so is the
automation of programmed decisions increasing to support this production
and other information needs throughout the organization.

4. Below is the list of data from a sample project

Most Immediate
Acti likely Predecesso
vity duration rs to
(Days) activity
A 4 E,B
B 7 A,E

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 C 5 ---
D 11 C
E 9 ---

a. Draw the PERT network for the above data. Also draw the critical
path for the network.
b. Given the optimistic time estimate as 3, the most likely time
estimate as 12 and the pessimistic time estimate as 21, calculate
the activity time estimate.

Ans:- (a) The critical path is that path which takes the longest time for start to
end. The critical path for the above mentioned network is as follows:-

C
2 5
A E

0
4
D 3
B

(b) to the optimistic time estimate = 3

tm the most likely time estimate = 12

tp the pessimistic time estimate = 21

te the activity time estimate = to + 4tm +tp

- ,- = 3 + 4(12) + 21

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 6

-,- = 12

5. Explain the difference between Intranet and Extranet

Information Systems have grown powerful year after year.

The role of the traditional MIS has been obscured by newer software
applications. Various applications known collectively as
enterprise resource planning (ERP) software has taken a dominant
position among large business applications. These packages, which
typically come in functional modules such as an accounting module,
a human resources module, and a manufacturing supply chain
module, serve many of the functions that a traditional MIS would, and
they tend to be more flexible, integrated, and user-friendly
than legacy MIS. While early implementations of ERP suites were largely
cross functional databases with minimal high-level management tools,
later upgrades have added decision support and
data manipulation tools to facilitate a wide range of analyses.

In future, MIS is likely to be verbal and qualitative in nature. It will depe

nd upon the strength of the organizations Information Systems. Most of the e
nterprises are growing and their systems also have to grow. The ever growing
demands of the systems will force out the old conventional systems by newer
systems. The next decade is going to witness several fundamental and qualit
ative changes in the practice of management of commercial enterprises
and other types of organizations. These changes would be necessitated
by better rates of economic growth, intensification of
competition, diversified and rapid technological developments, continuing
fluidity in economicpolitical environments, and sociopolitical changes
involving the values and attitudes of people working in organizations
at all levels.

To support these demands and meet newer challenges in

the business, organizations will have to resort to various technologies. This
unit is based on such possible technologies which
will enable the enterprises to support their MIS.

Extranet An extranet is a private network that uses the Internet

protocols and the public telecommunication system to securely share part of
a business's information or operations with suppliers, vendors, partners,
customers, or other businesses. An extranet can be viewed as part of a
company's intranet that is extended to users outside the company. An
extranet requires security and privacy.

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 A new buzzword that refers to an intranet that is partially accessible to
authorized outsiders. Whereas an intranet resides behind a firewall and is
accessible only to people who are members of the same company or
organization, an extranet provides various levels of accessibility to outsiders.
You can access an extranet only if you have a valid username and password,
and your identity determines which parts of the extranet you can view.

An extranet is somewhat very similar to an intranet. Extranets are

designed specifically to give external, limited access to certain files of your
computer systems to:

Certain large or privileged customers.

Selected industry partners.
Suppliers and subcontractors... etc.

Therefore, a carefully designed extranet can bring additional business to

your company. Intranets and extranets all have three things in common:

They both use secured Internet access to the outside world.

Both can drastically save your company or organization a lot of money.
Both need a user ID & password to control access to the whole system.

The professional development team at My Web Services has the expertise

and the right tools to design the right intranet or extranet that will meet your
exact needs, both for today and the future.

Intranet An internal use, private network inside an organisation that uses

the same kind of software which would also be found on the Internet. Inter-
connected network within one organization that uses Web technologies for
the sharing of information internally, not worldwide. Such information might
include organization policies and procedures, announcements, or information
about new products.

An intranet is a restricted-access network that works like the Web, but

isn't on it. Usually owned and managed by a company, an intranet enables a
company to share its resources with its employees without confidential
information being made available to everyone with Internet access. A
network based on TCP/IP protocols (an internet) belonging to an organization,
usually a corporation, accessible only by the organization's members,
employees, or others with authorization. An intranet's Web sites look and act
just like any other Web sites, but the firewall surrounding an intranet fends
off unauthorized access. Like the Internet itself, intranets are used to share
information.
An intranet is an information portal designed specifically for the internal
communications of small, medium or large businesses, enterprises,
governments, industries or financial institutions of any size or complexity.
Intranets can be custom-designed to fit the exact needs of businesses no
matter where they are situated. Users of intranets consists mainly of:

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 Members of the executive team.
Accounting and order billing.
Managers and directors.
Sales people and support staff.
Customer service, help desk, etc.

6. Explain the control issues in management information systems.

A management control systems (MCS) is a system which gathers and

uses information to evaluate the performance of different organizational
resources like human, physical, financial and also the organization as a whole
considering the organizational strategies. Finally, MCS influences the
behavior of organizational resources to implement organizational strategies.
MCS might be formal or informal. The term management control was given
of its current connotations by Robert N. Anthony (Otley, 1994).
According to Maciariello et al. (1994), management control is
concerned with coordination, resource allocation, motivation, and
performance measurement. The practice of management control and the
design of management control systems draws upon a number of academic
disciplines. Management control involves extensive measurement and it is
therefore related to and requires contributions from accounting especially
management accounting. Second, it involves resource allocation decisions
and is therefore related to and requires contribution from economics
especially managerial economics. Third, it involves communication, and
motivation which means it is related to and must draw contributions from
social psychology especially organizational behavior

Management control systems use many techniques such as

A. Balanced scorecard The balanced scorecard (BSC) is a strategic

performance management tool - a semi-standard structured report supported
by proven design methods and automation tools that can be used by
managers to keep track of the execution of activities by staff within their
control and monitor the consequences arising from these actions.
B. Total quality management (TQM) Total Quality Management (or
TQM) is a management concept coined by W. Edwards Deming. The basis of
TQM is to reduce the errors produced during the manufacturing or service
process, increase customer satisfaction, streamline supply chain
management, aim for modernization of equipment and ensure workers have
the highest level of training. One of the principal aims of TQM is to limit errors
to 1 per 1 million units produced. Total Quality Management is often
associated with the development, deployment, and maintenance of
organizational systems that are required for various business processes.
C. Kaizen (Continuous Improvement) Kaizen (Japanese for
"improvement" or "change for the better") refers to a philosophy or practices
that focus upon continuous improvement of processes in manufacturing,
engineering, supporting business processes, and management. It has been
applied in healthcare, government, banking, and many other industries.

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 D. Activity-based costing Activity-based costing (ABC) is a costing
model that identifies activities in an organization and assigns the cost of each
activity resource to all products and services according to the actual
consumption by each: it assigns more indirect costs (overhead) into direct
costs. In this way an organization can precisely estimate the cost of its
individual products and services for the purposes of identifying and
eliminating those which are unprofitable and lowering the prices of those
which are overpriced.
E. Target costing Target costing is a pricing method used by firms. It
is defined as "a cost management tool for reducing the overall cost of a
product over its entire life-cycle with the help of production, engineering,
research and design". A target cost is the maximum amount of cost that can
be incurred on a product and with it the firm can still earn the required profit
margin from that product at a particular selling price.
F. Benchmarking and Bench trending: Benchmarking is the process
of comparing one's business processes and performance metrics to industry
bests and/or best practices from other industries. Dimensions typically
measured are quality, time, and cost. Improvements from learning mean
doing things better, faster, and cheaper.

JIT: JIT may refer to:-

o Various meanings of Just In Time.

o Just-in-time compilation - a technique for improving the
performance of virtual machines in computing.
o Just-in-time (business) - a business inventory strategy.

G. Budgeting A budget (from old French bougette, purse) is generally a

list of all planned expenses and revenues. It is a plan for saving and
spending. A budget is an important concept in microeconomics, which uses a
budget line to illustrate the trade-offs between two or more goods. In other
terms, a budget is an organizational plan stated in monetary terms.
H. Capital budgeting Capital budgeting (or investment appraisal)
is the planning process used to determine whether a firm's long term
investments such as new machinery, replacement machinery, new plants,
new products, and research development projects are worth pursuing. It is
budget for major capital, or investment, expenditures.program management
techniques, etc.

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