An Assignment on

MANAGEMENT INFORMATION SYSTEM
MCA 3rd Semester

Prepared By
1 Management Information Systems | Bijay Mishra

Bijay Mishra

Q. No. (1). What is information system? Explain various types of information system resources.
An information system can be defined technically as a set of interrelated components that collect (or retrieve), process, store, and distribute information to support decision making and control in an organization. In addition to supporting decision making, coordination, and control, information systems may also help managers and workers analyze problems, visualize complex subjects, and create new products.

Figure: The Various types of information system resources Hardware Resources Today even the smallest firms, as well as many households, own or lease computers. These are usually microcomputers, also called personal computers. Large organizations typically employ multiple computer, from a few powerful mainframe machines (or even more powerful supercomputers) and minicomputers to widely deployed personal computers. Together with computer peripheral equipment, such as magnetic disks, input-output devices, and telecommunications gear, these constitute the hardware of information systems. The cost of hardware has steadily and rapidly decreased, while processing speed and storage capacity have increased vastly. Software Resources Computer software falls into two broad classes: system software and application software. The principal system software is known as the operating system. It manages the hardware, files, and other system resources and provides a systematic and consistent means for controlling the computer, most commonly via a graphical user interface (GUI). Application software is programs designed to handle specialized tasks; many

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Management Information Systems | Bijay Mishra

Explain the role of DSS for decision making. such as an office building or an academic campus. connecting millions of computers located on every continent. When decision making involves large amounts of information and a lot of processing. have begun to rent specialized application software on a per-use basis over the Web. Local area networks (LANs) join computers at a particular site. The computer experts. Anyone who has ever purchased something with a credit card—in person. The Internet is a network of networks. IS specialists. Some companies. and often within different organizations. known as application service providers (ASPs). Larger firms often develop their own application software or customize existing packages to meet specific needs. managers. and who has access to the output. Wide area networks (WANs) connect machines located at different sites. such as coworkers and people who share their professional or private interests. database managers. and to human resources. Hundreds of millions of people around the world are learning about information systems as they use the Web.of these programs are sold as ready-to-use packages. who is authorized to run it. In addition. systems analysts and designers. Examples include general-purpose spreadsheet and word processing programs. and tracks package deliveries. depending on the needs of an organization. analysts. or network. routes. and many other computer professionals who utilize the computer-based information systems are the personnel in a management information system Q. personal computer users gain access to information resources. Particularly valuable are customer databases that can be “mined” for information in order to design and market new products more effectively. Typical examples of databases include employee records and product catalogs. operating. etc. A database is a collection of interrelated data (records) organized so that individual records or groups of records can be retrieved that satisfy various criteria. computer programmers. procedures need to be established to run a payroll program. and maintaining an information system are part of its documentation. including when to run it. They include end-users. an application that schedules. (2). and computer operators. For example. Human resources Qualified people are a vital component of any information system. No. as well as “vertical” applications that serve a specific industry segment—for instance. Through networking. users. Technical personnel include development and operations managers. Various computer network configurations are possible. computer systems and transmit information. programmers. 3 Management Information Systems | Bijay Mishra . workers in an organization must be trained to utilize the capabilities of information systems. Data Resources Many information systems are primarily delivery vehicles for databases. or over the Web—is included within some of the numerous customer databases. Network Resources Telecommunications are used to connect. computer-based systems can make the process efficient and effective. such as large databases. People Resources Procedures for using. The success of an organization largely depends on the quality of the decisions that its employees make. by mail order.

decision makers make a choice. and other tools that systematically reduce the alternatives to a manageable number. models. Third. the facts might be millions of pieces of data. when there is a reduced number of alternatives. Models are simplified representations. in the Intelligence phase. in the Design phase. and goal-seeking analysis. Figure: Decision Support Framework 4 Management Information Systems | Bijay Mishra . In business. described decision making as a threephase process. The methods are sequences of steps. a researcher of management and decision making. there can be dozens.A decision is easy to make when one option will clearly bring about a better outcome than any other. Decisions become more difficult when more than one alternative seems reasonable and when the number of alternatives is great. DSSs also employ mathematical models. First. they have the related capabilities of sensitivity analysis. of reality. they select the most promising alternative. in the Choice phase. decision makers collect facts. formulas. Decision support systems can enhance learning and contribute to all levels of decision making. In business. to manipulate these data. DSS are designed to enable business managers and analysts to access data interactively. Finally. or abstractions. what-if analysis. or even millions of different courses of action available to achieve a desired result. and to conduct appropriate analyses. beliefs. that is. Decision support systems (DSS) combine models and data in an attempt to solve semistructured and some unstructured problems with extensive user involvement. The problem is deciding on the best alternative. Herbert Simon. the method for considering the data is designed. and ideas. hundreds. Second.

3) The ideal Decision Support System in sharp contrast to previous method of designing applications should not be a 'system' at all in the strict sense of the term. With this capability. the power of advanced Distributed Processing System will go untapped as they typically have in the past. 7) The support tool must interface with several different systems and capabilities. It should also be able to access standard 'flat' files indirectly using the power of the host computer to facilitate both the user interface and data access without changing existing files. Equally important this tool must provide the professional with access to an organization's raw data and it must allow the access to be accomplished in one step using a single uncomplicated procedure or command and without having to re-key non summary data.Some important roles of the Decision Support System are: 1) The most important consideration is the Decision Support System's ease of use . This adaptive tool must allow quick design changes if the original design does not closely match a person's information gathering style or needs. The best way to accomplish such flexible data presentation is through a work station. 4) To adequately support the human element. The single greatest and most enduring problem with computers has been their inflexibility. Instead the resource should be distributed to all of the people and part of an organization needing it without widespread access. their inability to let the person who actually needs the data to deal directly with the computer. display screen and an interface to a printer which could print everything from straight text to graphics like pie charts. the decision support generator should ideally be able to interface with word processing software. Rather. 6) The Decision Support Generator should let the user decide whether information should be displayed on the CRT screen for immediate use or whether it should be printed for later use. The management or professional information workstation would incorporate a keyboard. 5) The organizations need to access original data sometimes because efficiency is related to how well the original data is organized in the system. the DSS becomes the critical link between data processing and office automation.its ability to allow non technical people to deal with it directly. integrating both functions in an easily-used. the tool must provide users with a single easily used language to access manipulate and present data in a way that will best support the end-user. it should be a highly adaptive decision support generator that can easily be used by professionals to quickly design data support prototypes suited to each specific decision-making task. extremely powerful system. the Decision Support Generator should be able to interface with a true DBMS. 2) The ability to access information should not be restricted to only the part of an organization or to only certain managerial or professional groups. bar charts and line charts. this highly adaptive support capability must be able to provide access to operational data and as well as to summary data that already has been processed by application programs designed for other specific operational tasks. straight forward. 5 Management Information Systems | Bijay Mishra . 8) To facilitate formatting and manipulating displayed data. it must be compatible with all of them.

" Management Information System (MIS) is the study of information and its impact on the individual. and disseminates information to support decision making and control. What is management information system? Explain its major components with merits and demerits. Personnel The computer experts. According to Kenneth C.Q. which an organization establishes for the use of a computer-based information system. (3). the organization and the society. It facilitates planning: MIS improves the quality of plants by providing relevant information for sound decision-making. processed and retrieved after it has been generated by business operation in an organization. Due to increase in the size and complexity of organizations. database. processes. programmers. No. Procedures Procedures are sets of rules or guidelines. analysts. database managers. Laudon and Jane Price Laudon an information system is "a set of procedures that collects (or retrieves). managers. stored. users. The data are generated. and many other computer professionals who utilize the computer-based information systems are the personnel in a management information system. managers have lost personal contact with the scene of operations. Hardware Input and output devices constitute the hardware components of MIS. The information systems do not generate data. Components of MIS The physical components of MIS comprise the computer and communications hardware. The primary goal of MIS is to support organizational decision making. Database Many information systems are primarily delivery vehicles for databases. personnel. Software The programs and applications that convert data into machine-readable language are known as software. and procedures. Management information systems are primarily meant for providing information from the data after processing them. A database is a collection of interrelated data (records) organized so that individual records or groups of records can be retrieved that satisfy various criteria. stores. Merits of MIS 1. 6 Management Information Systems | Bijay Mishra . recorded. collected. software.

MIS encourages decentralization: Decentralization of authority is possibly when there is a system for monitoring operations at lower levels.  MIS cannot provide tailor made information packages. evaluates and disseminates the information. It makes control easier: MIS serves as a link between managerial planning and control. It connects all decision centers in the organization.  Highly sensitive and requires constant monitoring. It is required to analysis the available information before decision-making. 4.  Quality of outputs governed by quality of inputs.  MIS takes only quantitative factors into account. It minimizes information overload: MIS change the larger amount of data in to summarize form and there by avoids the confusion which may arise when managers are flooded with detailed facts.  MIS is less effective in organizations where information is not being shared with others. organizational structure and operational staff.2. MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. 3.  Budgeting of MIS extremely difficult.  MIS is less effective due to frequent changes in top management.  Easy for upper-level executives to use.  MIS is less useful for making non-programmed decisions. The used computers has increased the data processing and storage capabilities and reduced the cost. It is merely an effective tool for the managers in decision-making and problem solving. Some other merits are:  MIS assembles. process. It improves the ability of management to evaluate and improve performance.  Effectiveness decreases due to frequent changes in top management 7 Management Information Systems | Bijay Mishra . retrieves. stores. extensive computer experience is not required in operations  Provides timely delivery of company summary information  Information that is provided is better understood  Filters data for management  Improves to tracking information  Offers efficiency to decision makers Demerits of MIS  MIS cannot replace managerial judgments in decision-making. It brings coordination: MIS facilities integration of specialized activities by keeping each department aware of the problem and requirements of other departments.  In a fast changing and complex environment.  The quality of output of MIS is directly proportional to the quality of input and processes. 5.  Lack of flexibility to update itself. MIS may not have enough flexibility to update itself quickly.

No. several adjacent offices. Households might set up LANs to share a broadband link to the Internet and to transmit digital music. or a mobile phone and a hands-free headset. It is smaller than a Metropolitan Area Network but larger than a Local Area Network. pictures. What is networking? Explain its advantages and limitations along with its types. Computer networks are classified according to their reach and complexity. attitude of worker etc. usually a city and its major suburbs. LANs A computer network within a building. the LAN in a chemistry lab might be linked to a research hospital’s LAN and to a pharmaceutical company’s LAN several miles away in the same city to form a MAN. and hard to manage Need good internal processes for data management May lead to less reliable and less secure data Q. which encompass connections between personal digital devices such as a computer and its keyboard or mouse. and other computer equipment for an office. a network is a combination of devices or nodes (computers or communication devices) connected to each other through one of the communication media. is called a local area network. continent.         Takes into account only qualitative factors and ignores non-qualitative factors like morale of worker. Some people also include a fourth category: PANs (personal area networks). The CAN incorporates several LANs and usually has connections to a MAN or WAN. The three basic types of networks are LANs (local area networks). In the context of data communications. and WANs (wide area networks). LANs are set up by organizations to enhance communications among employees and to share IT resources. 8 Management Information Systems | Bijay Mishra . CANs A CAN or Campus Area Network is a network that is restricted to a small geographic area such as a building complex or a college campus. System dependent Limited functionality. which connect computers. A metropolitan area network (MAN) usually links multiple LANs within a large city or metropolitan region and typically spans a distance of up to 50 kilometers (about 30 miles). or worldwide. For example. Its geographic scope falls between a WAN and a LAN. printers. MANs (metropolitan area networks). (4). LANs are usually established by a single organization with offices within a radius of roughly 5–6 kilometers (3–4 miles). which connect systems in an entire nation. an entire building or a campus. or LAN. which span a greater distance than LANs and usually have more complicated networking equipment for midrange communications. by design Information overload for some managers Benefits hard to quantify High implementation costs System may become slow. large. and video from one part of a home to another. or a campus of adjacent buildings. MANs A metropolitan area network (MAN) is a network that spans a metropolitan area.

4-GHz band. A virtual private network can be contrasted with a system of owned or leased lines that can only be used by one company. VPNs A virtual private network (VPN) is a private data network that makes use of the public telecommunication infrastructure. radio-based communication and can transmit up to 722 Kbps in the 2. states. or the entire globe.15 wireless networking standards. Computers connect to a WAN through public networks. A wide area network (WAN) is a far-reaching system of networks. and tablet or laptop computers. Large WANs might have many constituent LANs and MANs on different continents. One WAN is composed of multiple LANs or MANs that are connected across a distance of more than approximately 48 kilometers (or 30 miles). It links up to eight devices within a 10-meter area using low-power. Transmission speed is slow to moderate. A more complex WAN is a satellite linkup between LANs in two different countries. The most well-known WAN is the Internet. continents. which is useful for creating small personal area networks (PANs). 9 Management Information Systems | Bijay Mishra . WANs can be public or private. PANs A personal area network (PAN) is a wireless network designed for handheld and portable devices such as PDAs. The telephone network and the Internet are examples of public WANs. maintaining privacy through the use of a tunneling protocol and security procedures.WANs Wide area networks (WANs) span broad geographical distances—entire regions. Bluetooth is the popular name for the 802. The simplest WAN is a dial-up connection to a network provider’s services over basic telephone lines. and the maximum distance between devices is generally 10 meters (33 feet). such as the telephone system or private cable systems. The most universal and powerful WAN is the Internet. cell phones. The idea of the VPN is to give the company the same capabilities at much lower cost by using the shared public infrastructure rather than a private one. or through leased lines or satellites. A private WAN might use either dedicated lines or satellite connections. and is intended for use by only one or two people.

files can be stored in a centralized location. centralized backup. HANs A Home Area Network is a network contained within a user's home that connects a person's digital devices. Some other advantages are:  A user can logon to a computer anywhere on the network and access their work files from the file server  Computers can be managed centrally . an organization can share a modem or dial-up connection to access the Internet or other dial up services. "smart" appliances. Using technology known as Virtual Private Networking (VPN). plotters.it is much faster to install an application once on a network . In addition. A more recently developed benefit of networks with the advent of the Internet is the remote access of email and files. The use of dial-up services and the Internet has grown tremendously.for example websites visited or documents printed . For example. modems etc.and copy it across the network to every workstation  Sharing printers. Instead of having multiple iterations of documents and spreadsheets on disparate computers. You can set up a VPN yourself (Windows 2000 server has settings to establish a VPN) or you can purchase one as a service from another company.this can be done using software running on the server 10 Management Information Systems | Bijay Mishra . televisions. be it via dialup using a modem. fax machines and other digital devices that are wired into the network. VCRs. ISDN. and CD-ROMs are just a few of the devices that can be shared over a network. saves money and time  Security . This helps ensure the long term integrity of the data. a state. It provides a secure network connection for distance computers and does not require laying cable to supply the connection.A VPN connects computers located at various places throughout a city.the Network Manager can allocate usernames and passwords to all users to try to prevent unauthorized access  It is easy and convenient to monitor users . Cable Modem or T-1 line. This growth has often necessitated the installation of a modem on each computer. or even globally.with the same software installed on each one  Time . home security systems. an organization’s files can be backed up daily onto high capacity tapes. encrypted channel by means of either a dialup or Internet connection. modems. Using a network. video games. DSL. printers. scanners. an organization can access its network remotely via a secure. Advantages of Networking Centralized storage of files is often the initial and primary justification for a network. This then allows another benefit of networking. networks can help to reduce other capital investment costs as well. An inexpensive device called a router facilitates the sharing of your network’s dedicated Internet connection. With a centralized backup system. from multiple computers and their peripheral devices to telephones.

the more difficult it is to manage. the video-sharing Internet site.facebook. the video ad disappears unless the user clicks it. for example. then users may not be able to run application programs  A fault on the network can cause users to loose data (if the files being worked upon are not saved)  If the network stops operating. pricing decisions.  WANs are vulnerable to hackers and viruses.for example when listening to music files or watching video clips . etc.  As traffic increases on a network. novices or industrial espionage  Decisions on resource planning tend to become centralized. and others. what word processor is used. No. (5). Time Warner. Marketing functions are increasingly being performed on the Internet. Software can measure how many customers see the advertising. and sales forecasting.that there is no paper in the printer!  Users may use up too much of the storage space and this may cause problems on the network  Users may use too much bandwidth . A marketing information system (MkIS) supports managerial activities in product development.  A fault with the server will prevent the whole network from working. the performance degrades unless it is designed properly  Resources may be located too far away from some users  The larger the network becomes. then it may not be possible to access various resources  Users work-throughput becomes dependent upon network and the skill of the systems manager  It is difficult to make the system secure from hackers.preventing others from using the network facilities properly Q. BMW.Disadvantages of Networking  Local Area Networks which provide high speed communication are limited in geographic area  Wide Area Networks which serve large geographic area have speed limitations  No single network technology satisfies all needs  If a network file server develops a fault. Some companies use a software product called SmartLoyalty to analyze customer loyalty. a social-networking site. are starting to advertise their products and services on Facebook (www. Some marketing departments are actively using the Internet to advertise their products and services and keep customers happy. including Ford. YouTube. for example.  Security measures are needed to restrict access to the network. Explain about the marketing information system.  If something goes wrong with the file server the whole network is unable to operate  The technical skills needed to manage a network are much higher than working on a stand-alone computer  It would take a long time to install software applications on each computer . what printers are bought. promotional effectiveness.  Networks that have grown with little thought can be inefficient in the long term. Companies.one at a time!  It can be frustrating to print to a printer in another room . distribution. sells video ads on its site to companies.and then find after a long trek .  Cabling can be expensive to install and replace. After about ten seconds.com). 11 Management Information Systems | Bijay Mishra .

questionnaires. Product development: Product development involves the conversion of raw materials into finished goods and services and focuses primarily on the physical attributes of the product. These subsystems and their outputs help marketing managers and executives increase sales. and outputs of a typical marketing MIS. and interviews. Promotion and advertising: One of the most important functions of any marketing effort is promotion and advertising. including plant capacity. Product success is a direct function of the types of advertising and sales promotion done. engineering factors. and materials are important in product development decisions.The figure below shows the inputs. labor skills. Subsystems for the marketing MIS include marketing research. product development. Marketing research: The purpose of marketing research is to conduct a formal study of the market and customer preferences. 12 Management Information Systems | Bijay Mishra . reduce marketing expenses. pilot studies. Many factors.38 Computer systems are used to help conduct and analyze the results of surveys. promotion and advertising. subsystems. and develop plans for future products and services to meet the changing needs of customers. and product pricing.

as well as the physical technology and formal capabilities of these systems. The study of information systems is a multidisciplinary field. they require substantial social. Technical Approach: The technical approach to information systems emphasizes mathematically based models to study information systems. No. The figure below illustrates the major disciplines that contribute problems. management science. and operations research. Operations research focuses on mathematical techniques for optimizing selected parameters of organizations. devices. and methods of efficient data storage and access. Contemporary approaches to information systems include technical and behavioral approaches. issues. (6). methods of computation. Information systems are sociotechnical systems. and transaction costs. and solutions in the study of information systems. No single theory or perspective dominates. The disciplines that contribute to the technical approach are computer science. such as transportation. Though they are composed of machines. Explain the contemporary approaches of information system. inventory control. wholesale price. sales personnel. and “hard” physical technology. and intellectual investments to make them work properly. 13 Management Information Systems | Bijay Mishra . Management science emphasizes the development of models for decision-making and management practices. Several reports can be generated to help marketing managers make good sales decisions.Product pricing: Product pricing is another important and complex marketing function. and customers that contribute to profits and those that do not. Q. and price discounts must be set. Sales analysis: Computerized sales analysis is important to identify products. Retail price. Computer science is concerned with establishing theories of computability. organizational.

This process is accomplished by a type of systems software called a compiler. must be translated into binary digits for processing. Programming languages allow people to write instructions that tell computers what to do. No. digital computers only understand 0’s and 1’s. programming languages require a high degree of precision and completeness. Also. are no longer in use or in limited use. which are typically discussed in the fields of sociology. design. It is also concerned with behavioral issues surrounding the development. Third-generation languages (3GLs) 3GLs are considered “procedural” because the programmer has to detail a logical procedure that solves the problem at hand. But even then. such as RPG and COBOL. The study of management information systems (MIS) arose to focus on the use of computer-based information systems in business firms and government agencies. Ultimately. and operations research with a practical orientation toward developing system solutions to real-world problems and managing information technology resources. They required lengthy written code for even the simplest procedures. economics. They are the means by which all systems and application software are developed. Some of them. and C. shorter. Hindi. What is a computer programming language? Explain its type with example. In third. and impact of information systems. management science. Q. MIS combines the work of computer science. Third-generation languages reduced the programmer’s time spent producing code. Pascal. all computer languages. 14 Management Information Systems | Bijay Mishra . and psychology. more human-friendly commands replaced lengthy code. and management cannot be explored usefully with the models used in the technical approach. the so-called natural language would have to be translated by another program into machine language. or binary digits. COBOL. First-generation (machine language) and second-generation (assembly) languages were quite inefficient tools for code writing. implementation. it would be nice to be able to program using the daily grammar of your native language—English. Issues such as strategic business integration. BASIC. Therefore. (7). Some common procedural languages include FORTRAN. optimal organizational performance is achieved by jointly optimizing both the social and technical systems used in production. Adopting a sociotechnical systems perspective helps to avoid a purely technological approach to information systems. except machine language. utilization.Behavioral Approach: An important part of the information systems field is concerned with behavioral issues that arise in the development and long-term maintenance of information systems.and fourth-generation languages. Other behavioral disciplines contribute important concepts and methods. use. Because computers do exactly what they are told. RPG. or any other language. Sociotechnical Approach: In this view. One 3GL statement is equivalent to 5–10 assembly language statements. Nepali.

and Java. These languages use a modular approach. They can then use a flexible tool to shape and color these objects. was an early object-oriented programming language. and therefore to dozens of assembly statements. such as Microsoft Visual Basic. The most popular OOP languages are Smalltalk. Object Pascal. developed by Xerox. Object-Oriented Programming An increasing amount of software is developed using object-oriented programming (OOP) languages. and Visual C++. and manipulate the data. Borland Delphi. which offers two great advantages: ease of maintenance and efficiency in applications development. Visual Programming To accelerate their work. scroll-down menus. populate them with data. ASNA Visual RPG. Many routine procedures are preprogrammed and can be recalled by including a single word in the code. and other objects by simply choosing the proper icon from a palette.The table below provides a description of common categories of programming languages. Micro Focus COBOL. 15 Management Information Systems | Bijay Mishra . Smalltalk. C++. These languages let programmers create field windows. click buttons. programmers can use one of several visual programming languages. Fourth-generation languages (4GLs) 4GLs make application development even easier. They are built around database management systems that allow the programmer to create database structures. A single 4GL statement is equivalent to several 3GL statements.

For example. (8). use to make choices to guide their behaviors. 16 Management Information Systems | Bijay Mishra . No. and business ethics. an organization of computing professionals. A code of ethics is a collection of principles that is intended to guide decision making by members of the organization. Their different stages of development are known as generations. For this reason. the Association for Computing Machinery (www. has a thoughtful code of ethics for its members. Ethics refers to the principles of right and wrong that individuals. political.The figure below shows how programming languages have evolved dramatically over the years.acm. Deciding what is right or wrong is not always easy or clear-cut. What is ethics? Discuss about social.org). Q. many companies and professional organizations develop their own codes of ethics. individual. acting as free moral agents.

and political issues in an information society The introduction of new information technology has a ripple effect. Figure: The relationship between ethical. What information rights do individuals and organizations possess with respect to themselves? What can they protect?  Property rights and obligations. Responsibility means that you accept the consequences of your decisions and actions. Ethical issues in information systems have been given new urgency by the rise of the Internet and electronic commerce. social. property rights and obligations. quality of life. The major ethical. Accountability refers to determining who is responsible for actions that were taken. social. or systems. Ethical. and accountability and control. and political issues that must be dealt with on the individual. system quality. The ethical dilemma you may face as a manager of information systems typically is reflected in social and political debate. social. and political levels.Fundamental principles of ethics include responsibility. How will traditional intellectual property rights be protected in a digital society in which tracing and accounting for ownership is difficult and ignoring such property rights is so easy? 17 Management Information Systems | Bijay Mishra . and liability. social. These issues have five moral dimensions: information rights and obligations. raising new ethical. social. and political issues are closely linked. accountability. Liability is a legal concept that gives individuals the right to recover the damages done to them by other individuals. organizations. and political issues raised by information systems include the following moral dimensions:  Information rights and obligations.

and inventories as well as decreased customer satisfaction. information. A supply chain refers to the flow of materials. Figure: Supply Chain Management 18 Management Information Systems | Bijay Mishra . Like other functional areas. and shipping of goods. and cost in the supply chains for procurement of raw materials. What values should be preserved in an information. SCM utilizes information systems. or friction. reduce uncertainty and risks by decreasing inventory levels and cycle time and improving business processes and customer service. and services from raw material suppliers. along the supply chain. organize. Friction can involve increased time. (9). including the costs of managing resources and controlling inventory. The function of supply chain management (SCM) is to plan. then. and optimize the various activities performed along the supply chain. speed. money.and knowledge-based society? Which institutions should we protect from violation? Which cultural values and practices are supported by the new information technology? Q. A supply chain also includes the organizations and processes that create and deliver products. through factories and warehouses. costs. information. Supply chain management systems optimize workload. Who can and will be held accountable and liable for the harm done to individual and collective information and property rights? System quality. The goal of SCM systems is to reduce the problems. to the end customers. All of these benefits make the organization more profitable and competitive. What standards of data and system quality should we demand to protect individual rights and the safety of society? Quality of life. SCM systems. No. What is supply chain management? Explain its components and applications. and services to end customers. SCM systems have been instrumental in reducing manufacturing costs. manufacturing.   Accountability and control.

supply chain managers must develop a set of pricing. 19 Management Information Systems | Bijay Mishra . testing. For example. wholesaler relationships are vital. and in the automotive industry. Delivering: This is the step where the goods stored in the warehouses are delivered to the customers through an efficient distribution system as soon as the company receives the order from the customers and it is referred as logistics. The vendors should supply the inventory as per the demand and the SCM managers should also take care of the quality of the material supplied. SCM planning is to be developed in such a way that it costs effective and delivers high quality and value to customers.g.. in the retail sector. organizations can condense or even prevent costly overruns and/or product shortages. Sourcing: Companies need to choose reliable suppliers or vendors to deliver the goods and services with which the company creates the product. By doing this. This also includes an invoicing system to receive payments. packaging and preparation for delivery. Making: This is the manufacturing step in the SCM and the supply chain managers schedule the activities necessary for production. and verify shipments. transfer them to the manufacturing facilities and authorizing supplier payments. Therefore. Applications of SCM Supply chain management (SCM) helps businesses to enhance and understand the activities that endow with component level material for their finished product. with internal suppliers and external vendors). production output and worker productivity. In this step companies can measure quality levels. By focusing on SCM. Return: This is the step in the supply chain where the company receives back defective and excess products from the customers. corporations can significantly get better operational efficiency.Components of SCM A basic supply chain management system has five components: Planning: It is the strategic activity of SCM and the companies need a perfect planning for managing all the resources that meet the customers demand for their product or service and satisfies the customer. The fundamental matter is the necessity to understand customer demand and bring into line it with the supply side of the business. To effectively implement this process supply chain planners have to create a responsive and flexible network as it can be a problematic part of the supply chain for many companies. SCM seeks to help businesses control costs by uncovering the difficulties in their key relationships (e. delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships. part supplier relationships can influence the manufacturer’s capability to construct a car on time.

In these networks all the internal websites can be fully accessed by all the workers dealing win an organization. include smart phones. and extranet on business application. For the Internet. SCM links suppliers to databases that show forecasts. Instead. Many educational and governmental institutes are using intra network framework for communicating at different campuses of same institutions. called nodes. shipping. No. at no charge to the senders. The senders. LANs. and features in the daily routine of almost 2 billion people. Memos and circulars can be circulated easily by using the intra networks 20 Management Information Systems | Bijay Mishra . (10). or logistics timeframes within the customer organization. Participating computer systems. collaborate. and exchange information seamlessly around the world. the supplier can adjust shipping to make certain that their customers have the inventory necessary to meet their customers’ needs. Discuss the role of Internet. the Internet has become a necessity in the conduct of modern business. and collaboration. Thus. and mainframes. Q. Organizations must pay a small fee if they wish to register their names. using a common communications protocol. intranet. PCs. pay the telephone bills for using either the backbone or regular telephone lines. Intranets support discovery (easy and inexpensive browsing and search). they can well again meet their customers’ demands. Thus. regardless of the source. The organizations are obliged to move any data or information that enters their organizational network. to their destination. No central agency manages the Internet. communication. the cost for any one organization is small. current inventory. Suppliers can download forecasts into their own manufacturing systems to automate their internal processes as well. of course. and they need to have their own hardware and software to operate their internal networks. including Antarctica. databases. the Internet enables people to access data in other organizations and to communicate. Fundamentally. As a network of networks. By giving those suppliers such access. Regardless of location intra networks are an effective way for information sharing. For example. The Internet (“the Net”) is a global WAN that connects approximately 1 million organizational computer networks in more than 200 countries on all continents. TCP/IP. quickly and inexpensively. Intranet: An intranet is a network designed to serve the internal informational needs of a single organization.SCM software achieves these outcomes in a diversity of ways and a variety of implementations. Internet: The Internet is a global network of computer networks. the cost of its operation is shared among hundreds of thousands of nodes. the backbone is a fiber-optic network that is operated primarily by large telecommunications companies.

The Internet-based extranet is far less costly than proprietary networks. check the status of those orders. An extranet is open to selected B2B suppliers. 21 Management Information Systems | Bijay Mishra . improved order entry and customer service. communicate. It also enables partners to perform self-service activities such as checking inventory levels. for communications. An extranet also allows external business partners to enter the corporate intranet. lower costs (for example. to access data.Extranets: Extranets use virtual private network (VPN) technology to make communication over the Internet more secure. Extranets link business partners to one another over the Internet by providing access to certain areas of one another’s corporate intranets. and collaborate. place orders. Extranets enable people who are located outside a company to work together with the company’s internally located employees. An extranet connects portions of the intranets of different organizations and allows secure communications among business partners over the Internet. and an overall improvement in business effectiveness. travel. and other business partners. and administrative overhead). It is a nonproprietary technical tool that can support the rapid evolution of electronic communication and commerce. customers. The major benefits of extranets are faster processes and information flow. These individuals access the extranet through the Internet. via the Internet. The primary goal of extranets is to foster collaboration between and among business partners.

The Hierarchical Database Model The hierarchical data model presents data to users in a treelike structure. The child then goes on to develop its own characteristics separate from the mother. Q. they must be carefully managed. A database management system (DBMS) is a software tool that enables us to construct databases. (11). What is DBMS? Explain its types with merits and demerits. managing security and user access. A child only has one mother and inherits some of her characteristics. Figure: A hierarchical database for a human resources system 22 Management Information Systems | Bijay Mishra . A database management system (DBMS) is a set of programs that provide users with tools to add. populate them with data. DBMSs also provide the mechanisms for maintaining the integrity of stored data. Think of a mother and her children. An organization can access the data by using query and reporting tools that are part of the DBMS or by using application programs specifically written to access the data. such as eye color or hair color. DBMSs are also a major part of enterprise applications. delete. Because databases and DBMSs are essential to all areas of business. Most DBMSs come with programming languages that can be used to develop applications that facilitate queries and produce reports. and recovering information if the system fails. and manipulate the data. A mother might have one or more children to which she passes some of her characteristics but usually not exact ones. access. and analyze data stored in one location.Figure: The structure of an extranet. No.

The tables are sometimes called files. characteristics from the parent are passed to the child by a pointer just as a human mother will have a genetic connection to each human child.e. These two types of databases i. As with hierarchical structures. The Relational Database Model A relational data model uses tables in which data are stored to extract and combine data in different combinations. For instance. In a relational database. You can see how this database pointer works by looking at the above figure. a parent can have many children and a child can have many parents. as the above figure demonstrates. The parents pass on certain characteristics to the children. the primary key from one table is stored in a related table as a secondary key. Now the parents aren't restricted to only one (the mother) but to many parents. since you can have multiple tables in one file. a unique identifier for each record. the size of the database can grow very quickly and cause maintenance and operation problems. in the Customer table the primary key is the unique Customer ID. But because these database structures use pointers. Figure: The network data model. the hierarchical and the network work well together since they can easily pass data back and forth. To make sure the tables relate to each other. which are actually additional data elements. Take the same scenario with one parent and many children and add a father and perhaps a couple of stepparents. 23 Management Information Systems | Bijay Mishra . but the children also have their own distinct characteristics.In a hierarchical database. each table contains a primary key. That primary key is then stored in the Order Table as the secondary key so that the two tables have a direct relationship. The Network Database Model A network data model is a variation of the hierarchical model. That is. although that is actually a misnomer. each relationship in a network database must have a pointer from all the parents to all the children and back.

Figure: Object-oriented database system composition An object-oriented database uses an object-oriented database management system (OODBMS) to provide a user interface and connections to other programs. Oracle licenses DBMSs by the company name. The combined storage of both data and the procedures that manipulate them is referred to as encapsulation. Through encapsulation.The major vendors of relational DBMSs (RDBMSs) are IBM. in addition to the attributes of an entity. The ability in object-oriented structures to create a new object automatically by replicating all or some of the characteristics of a previously developed object (called the parent object) is called inheritance. and Microsoft licenses SQL Server and Access. In objectoriented technology. an object also contains relationships with other entities and procedures to manipulate the data. The Object-Oriented Database Model The object-oriented database model uses the object-oriented approach to maintaining records. Oracle. IBM licenses DB2. 24 Management Information Systems | Bijay Mishra . an object consists of both data and the procedures that manipulate the data. an object can be “planted” in different data sets. and Microsoft. So.

Several software companies have developed popular ODBMSs. as well as data generated and used only at a user’s own site. Hypermedia Database As we move away from strictly text-based information systems and incorporate video and sound. Distributed databases are usually found in very large corporations that require multiple sites to have immediate. Figure: Hypermedia Database 25 Management Information Systems | Bijay Mishra . Among them are Objectivity/DB (Objectivity. Inc. The attraction to this type of database is that it allows the user to decide which path to follow from one node to another. Distributed Database These are databases of local work-groups and departments at regional offices. The below given figure helps explain the concept of a hypermedia database by showing how the various elements are networked. As the book points out. and Versant (Versant Corporation). branch offices. Inc. graphics and text. ObjectStore (Progress Software.). so you should be careful in determining if this is the right way for you to run your business. there are lots of disadvantages. the hypermedia database will become more common. manufacturing plants and other work sites. These databases can include segments of both common operational and common user databases.). fast access to data.

Figure: Advantages of DBMS 26 Management Information Systems | Bijay Mishra . Relational database management systems are more flexible. it's pretty hard to amend. you'll have to go back and fill in the missing information for the old records or just forget them altogether. But as you know. It is much easier for non-techies to create the query language in a relational system.Advantages and Disadvantages of Database Management Systems Hierarchical and network databases can be very efficient as long as you plan ahead. and neither one of these databases offers a lot of flexibility to change with business needs. needs change. It's sort of like parents and children. It's also easier to add new data elements. although if you do. once you establish the tie. especially if you keep the tables small.

credit decisions. such as sales. A transaction processing system (TPS) is an organized collection of people. hotel reservations. such as sales order entry. Transaction processing systems (TPS) provide this kind of information. sales to customers. payroll. and the flow of materials in a factory. processing business transactions was the first computer application developed for most organizations. and devices used to record completed business transactions. payroll. No. employee record keeping. software. Many of these early systems were designed to reduce costs by automating routine. manufacturing and production. you understand basic business operations and functions. decision-support systems. and human resources. A transaction is any business-related exchange such as payments to employees. A transaction processing system is a computerized system that performs and records the daily routine transactions necessary to conduct business. A typical business organization has systems supporting processes for each of the major business functions—systems for sales and marketing. receipts. finance and accounting. labor-intensive business transactions. Operational managers need systems that keep track of the elementary activities and transactions of the organization. No single system can provide all the information an organization needs. Thus. computers have been used to perform common business applications. These systems include transaction processing systems. and shipping. procedures. management information systems. and systems for business intelligence. If you understand a transaction processing system.Figure: Disadvantages of DBMS Q. databases. A business firm has systems to support different groups or levels of management. 27 Management Information Systems | Bijay Mishra . Explain various types of information system. (12). cash deposits. or payments to suppliers. Transaction Processing Systems Since the 1950s.

software. and other functional areas are supported by MISs and linked through a common database. Microsoft Office XP) or systems that allow employees to work from home or whilst on the move. The collection of data. weekly. rules. In many cases. People quickly recognized that computer systems could support additional decision-making activities. procedures. and relationships that must be followed to achieve value or the proper outcome is contained in the expert system’s knowledge base. and develop marketing plans for a new product or investment strategy. An MIS focuses on operational efficiency. It gathers analyses and summarizes the key internal and external information used in the business. Management Information Systems A management information system (MIS) is an organized collection of people. and devices that support problem-specific decision making. A decision support system (DSS) is an organized collection of people. and devices that provides routine information to managers and decision makers. monthly. Therefore. finance. databases. or yearly. ESS typically involves lots of data analysis and modeling tools such as "what-if" analysis to help strategic decision-making. design and configure IS components. Decision Support Systems By the 1980s.” a DSS helps a manager “do the right thing. databases. MISs was first developed in the 1960s and typically use information systems to produce managerial reports. procedures. or leaves for another job. locate possible repair problems. MISs typically provides standard reports generated with data and information from the TPS. Executive Support Systems An Executive Support System (ESS) is designed to help senior management make strategic decisions. production. perform medical diagnoses. They have been used to monitor nuclear reactors. they were no longer solely dependent on the IS department for all their information needs. these early reports were produced periodically—daily. procedures. People at all levels of organizations began using personal computers to do a variety of tasks. dramatic improvements in technology resulted in information systems that were less expensive but more powerful than earlier systems. perform credit evaluations. The focus of a DSS is on making effective decisions. A good way to think about an ESS is to imagine the senior management team in an aircraft cockpit . retires.Office Automation Systems Office Automation Systems are systems that try to improve the productivity of employees who need to process data and information. years of experience and specific skills are not completely lost when a human expert dies. software. 28 Management Information Systems | Bijay Mishra .g. helping enhance the performance of the novice user.” Expert Systems Expert systems give the computer the ability to make suggestions and function like an expert in a particular field.with the instrument panel showing them the status of all the key business activities. Marketing. Expert systems can be applied to almost any field or discipline. The unique value of expert systems is that they allow organizations to capture and use the wisdom of experts and specialists. Perhaps the best example is the wide range of software systems that exist to improve the productivity of employees working in an office (e. Whereas an MIS helps an organization “do things right.

For example. KMS are built around systems which allow efficient categorization and distribution of knowledge. These are typically used in a business where employees create new knowledge and expertise . To share the knowledge. a KMS would use group collaboration systems such as an intranet.which can then be shared by other people in the organization to create further commercial opportunities.Knowledge Management Systems Knowledge Management Systems (KMS) exist to help businesses create and share information. spreadsheets. Good examples include firms of lawyers. the knowledge itself might be contained in word processing documents. Internet pages or whatever. accountants and management consultants. 29 Management Information Systems | Bijay Mishra . PowerPoint presentations.

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