Master of Business Administration

MBA II Semester
MB0046 – Management Information Systems Assignment Set- 1

Q 1: What is MIS? Define the characteristics of MIS? What are the basic Functions of MIS? Give some Disadvantage of MIS? Ans: MIS systems are extensively used in generating statistical report of any organization which can be used to study management by behavior. They set objectives to their employees using ratio analysis. Management also uses MIS for decision making from the low level management to top level management. In order to perform task using Information systems use of technical support is required. So it is the combination of 3 components i.e. organization, technology and management. MIS characteristics • • • • • • • It supports transaction handling and record keeping. It is also called as integrated database Management System which supports in major functional areas. It provides operational, tactical, and strategic level managers with east access to timely It supports decision –making function which is a vital role of MIS. It is flexible which is needed to adapt to the changing needs of the organization. It promotes security system by providing only access to authorized users. MIS not only provides statistical and data analysis but also works on the basis on MBO (management by objectives). MIS is successfully used for measuring performance and making necessary change in the organizational plans and procedures. It helps to build relevant and measurable objectives, monitor results, and send alerts.

Function of MIS

The main functions of MIS are: i. ii. Data Processing: Gathering, storage, transmission, processing and getting output of the data. Making the data into information is a major task. Prediction: Prediction is based on the historical data by applying the prior knowledge methodology by using modern mathematics, statistics or simulation. Prior knowledge varies on the application and with different departments. Planning: Planning reports are produced based on the enterprise restriction on the companies and helps in planning each functional department to work reasonably. Control: MIS helps in monitoring the operations and inspects the plans. It consists of differences between operation and plan with respect to data belonging to different functional department. It controls the timely action of the plans and analyzes the reasons for the differences between the operations and plan. Thereby helps managers to accomplish their decision making task successfully. Assistance: It stores the related problems and frequently used information to apply them for relative economic benefits. Through this it can derive instant answers of the related problem.

iii. iv.

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Disadvantages of MIS The following are some of the disadvantages of MIS: a) MIS is highly sensitive: MIS is very helpful in maintaining logging information of an authorized user. This needs to monitor constantly. b) Quality of outputs is governed by quality of inputs. c) MIS budgeting: There is difficulty in maintaining indirect cost and overheads. Capturing the actual cost needs to have an accrual system having true costs of outputs which is extremely difficult. It has been difficult to establish definite findings. d) MIS is not flexible to update itself for the changes. e) The changes in the decision of top level management decrease its effectiveness. f) Information accountability is based on the qualitative factors and the factors like morality, confidence or attitude will not have any base. Q.2. Explain Knowledge based system? Explain DSS and OLAP with example?

Ans.: Knowledge Based System (KBS) : KBS are the systems based on knowledge base. Knowledge base is the database maintained for knowledge management which provides the means of data collections, organization and retrieval of knowledge. The knowledge management manages the domain where it creates and enables organization for adoption of insights and experiences. There are two types of knowledge bases. a. Machine readable knowledge bases: The knowledge base helps the computer to process through. It makes the data in the computer readable code which makes the operator to perform easier. Such informations are used by semantic web. Semantic web is a web that will make a description of the system that a system can understand. b. Human readable knowledge bases: They are designed to help people to retrieve knowledge. The information need to be processed by the reader. The reader can access the information and synthesize their own. Decision Support Systems (DSS) DSS is an interactive computer based system designed to help the decision makers to use all l the resources available and make use in the decision making. In management many a time problems arise out of situations for which simple solution may not be possible. To solve such problems you may have to use complex theories. The models that would be required to solve such problems may have to be identified. DSS requires a lot of managerial abilities and managers judgment. You may gather and present the following information by using decision support application: • • • • Accessing all of your current information assets, including legacy and relational data sources, cubes, data warehouses, and data marts Comparative sales figures between one week and the next Projected revenue figures based on new product sales assumptions The consequences of different decision alternatives, given past experience in a context that is described.

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

There may be people who do this transaction or tools. Latest software is used and accordingly the business procedures are modified. Many big companies use OLAP to get good returns in business. There are six faces of the box.: BPR : The existing system in the organization is totally reexamined and radically modified for incorporating the latest technology. Signification of BPR Business process are a group of activities performed by various departments. We all do them at one point or another either as a supplier or customer. what should be the stocking policy in order to minimize the wastage etc. This process of change for the betterment of the organization is called as Business process re-engineering. The system goes through a series of multiple checks of the various parameters used in business decision making. what should be the production quantity to maximize the returns. The querying process of the OLAP is very strong. It is used to gain an understanding the process of business and to understand the process to make it better and re-designing and thereby improving the system.g. A nearest match is found analytically and the results displayed form the database.: Region. Sales & demand. Q. Product etc. Each adjoining faces with common vertex may be considered to represent the various parameter of the business situation under consideration. This is known as workflow management. BPR is mainly used for change in the work process. E. A model of OLAP may be well represented in the form of a 3D box. The output is sent only after thorough verification of the input facts fed to the system. It is .3. You will really appreciate the need of process improvement or change in the organizations conduct with business if you have ever waited in the queue for a longer time to purchase 1 kilo of rice from a Public Distribution Shop (PDS-ration shop). BPR directly affects the performance. various organizations or between individuals that is mainly used for transactions in business. It helps the management take decisions like which month would be appropriate to launch a product in the market. The process is called the check-out process. This process is mainly used to modernize and make the organizations efficient. so that documents are worked upon more easily and efficiently.to the available instances. What are Value Chain Analysis & describe its significance in MIS? Explain what is meant by BPR? What is its significance? How Data warehousing & Data Mining is useful in terms of MIS? Ans. OLAP is also referred to as a multi dimensional analytical model.

It enables these companies to determine relationships among "internal" factors such as price. or staff skills.4. paying amount and receiving the receipt of purchase and the process ends up with the exit from the store.retail. It is the transaction between customer and supplier. communication. receiving the needed item form the shop. and corporate profits. Data Warehousing :– Data Warehouse is defined as collection of database which is referred as relational database for the purpose of querying and analysis rather than just transaction processing. it enables them to "drill down" into summary information to view detail transactional data. This concept is useful for big companies having plenty of data on their business processes. Data Mining :– Data mining is primarily used as a part of information system today. And. The data stored and the subsequent report generated out of a querying process enables decision making quickly. customer satisfaction. by companies with a strong consumer focus . financial. Explain DFD & Data Dictionary? Explain in detail how the information requirement is determined for an organization? Ans. at a single site. The system starts with forming a queue. stored under a unified scheme. This becomes a convenient way to handle the information being generated by various processes. This data is stored for a long time permitting the user an access to archived data for years. Finally. product positioning.called process because uniform standard system has been maintained to undertake such a task. and customer demographics. By mining demographic data from comment or warranty cards. and "external" factors such as economic indicators. Data warehousing is usually used to generate reports. Big companies have bigger problems and complex problems. and marketing organizations. payment which involves billing. the retailer could develop products and promotions to appeal to specific customer segments. competition. Data warehouse is usually maintained to store heuristic data for future use. Decision makers require access to information from all sources. it enables them to determine the impact on sales. getting it billed. a retailer could use point-of-sale records of customer purchases to send targeted promotions based on an individual's purchase history. Setting up queries on individual processes may be tedious and inefficient. Data warehouse is an archive of information collected from wide multiple sources. With data mining. either tabular listings (queries) with minimal formatting or highly formatted "formal" reports on business activities. Integration and separation of data are the two basic features need to be kept in mind while creating a data warehousing.: Data Flow Diagram : . Q. The main output from data warehouse systems are.

format for storage and other characteristics. It can also have software to update itself and to produce reports on its contents and to answer some of the queries. Q.  Avoid over complex DFD. entailing continual readjustments in production. DFD can also be drawn in increasing levels of detail.  Number the processes consistently. as . Rectangle represents external agents.: 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.5. external entities an stores. location. Arrow represents data flows. What is ERP? Explain its existence before and its future after? What are the advantages & Disadvantages of ERP? What is Artificial Intelligence? How is it different from Neural Networks? Ans. sometimes called files or databases.the boundary of the system.Data flow diagrams represent the logical flow of data within the system.  Make sure the diagrams are balanced Data Dictionary The data dictionary is used to create and store definitions of data. The numbers do not imply the sequence. starting with a summary high level view and proceeding o more detailed lower level views. inputs and outputs to end from the processes. flows. such as entities. DFD uses few symbols like circles and rectangles connected by arrows to represent data flows. The data dictionary can be used to retrieve the definition of data that has already been used in an application. Rounded rectangles represent processes that transform flow of data or work to be done. DFD can easily illustrate relationships among data. DFD do not explain how the processes convert the input data into output. It is source or destination of data. Around 1980. The open-ended boxes represent data stores. The data dictionary also stores some of the description of data structures. A number of guideline should be used in DFD  Choose meaningful names for the symbols on the diagram. These data stores correspond to all instances of a single entity in a data model. attributes and relationships. over-frequent changes in sales forecasts. They do not explain how the processing takes place.

departments within an organization (for example. reporting structure. The financial department would typically store financial transactions for the organization. This provided complications. combined the data of formerly separate applications. The payroll department would typically calculate and store paycheck information. The HR computer system (often called HRMS or HRIS) would typically contain information on the department. the payroll department. payments for employee benefits to providers. The financial system was not interested in the employee-level data.well as the unsuitability of the parameters fixed by the system. such as the tax payments to various authorities. a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. and so on. an employee number would need to be assigned and remain static between the two systems to accurately identify an employee. This made the worry of keeping numbers in synchronization across multiple systems disappears. and the financial department) would have their own computer systems. ERP Before and After Before Prior to the concept of ERP systems. a person could not be paid in the payroll system without an employee number. but only in the payouts made by the payroll systems. For instance. 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). It standardized and reduced the number of software specialties required within larger organizations. Advantages and Disadvantages Advantages – In the absence of an ERP system. Tasks that need to interface with one another may involve:      A totally integrated system ability to streamline different processes and workflows The ability to easily share data across various departments in an organization Improved efficiency and productivity levels Better tracking and forecasting . After ERP software. among other things. Each system would have to rely on a set of common data to communicate with each other. For the HRIS to send salary information to the payroll system. and personal details of employees. the human resources (HR)) department.

as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and how it is used. here are some of the most common obstacles experienced: Usually many obstacles can be prevented if adequate investment is made and adequate training is involved. Here in AI. the main idea is to make the computer think like human beings. conclude and solve problems. Artificial Intelligence and Neural Networks . It was said that the computer don’t have common sense. so that it can be then said that computers also have common sense. analyze. success does depend on skills and the experience of the workforce to quickly adapt to the new system.  Lower costs Improved customer service Disadvantages – Many problems organizations have with ERP systems are due to inadequate investment in ongoing training for involved personnel. It can reason. including those implementing and testing changes. Artificial Intelligence Artificial Intelligence is the science and technology based on various functions to develop a system that can think and work like a human being.      Customization in many situations is limited The need to reengineer business processes ERP systems can be cost prohibitive to install and run Technical support can be shoddy ERP's may be too rigid for specific organizations that are either new or want to move in a new direction in the near future. learn. While advantages usually outweigh disadvantages for most organizations implementing an ERP system. however. The systems which use this type of intelligence are known as artificial intelligent systems and their intelligence is referred to as artificial intelligence. More precisely the aim is to obtain a knowledge based computer system that will help managers to take quick decisions in business.

Neural networks are computing systems modeled after the human brain’s mesh like network of interconnected processing elements. linguistics. The goal of AI is to develop computers that can simulate the ability to think. In other words. Also included are adaptive learning systems that can modify their behavior based on information they acquire as they operate. Chess-playing systems are some examples of such systems. Thus. Fussy logic systems can process data that are incomplete or ambiguous. Thus. 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. learning and problem solving. they can begin to program themselves to solve such problems on their own. Cognitive science focuses on researching on how the human brain works and how humans think and learn. The neural networks are lot simpler in architecture. mathematics and engineering. Q. such as reasoning. the interconnected processors in a neural network operate in parallel and interact dynamically with each other. as humans do. That is. walk. Neural network software can learn by processing sample problems and their solutions. 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. they can solve semistructured problems with incomplete knowledge by developing approximate inferences and answers. The human brain is estimated to have over 100 billion neuron brain cells. robotics and natural interfaces. simulation of computer functions normally associated with human intelligence. biology. talk and feel. it learns to recognize patterns and relationships in the data.Artificial intelligence is a field of science and technology based on disciplines such as computer science. the better it can learn to duplicate the results of the examples it processes. called neurons. As neural nets start to recognize patterns. see. similar to the human brain. This enables the network to operate and learn from the data it processes. AI can be grouped under three major areas: cognitive science. Distinguish between closed decision making system & open decision making system? What is ‘what –if ‘analysis? Why is more time spend in problem analysis & problem definition as compared to the time spends on decision analysis? Ans.: Closed decision making system & open decision making system . psychology. Like the brain. hear. The more data examples it receives as input.6.

This method of analysis is called 'what if analysis. Sensitivity analysis and 4.If the manager operates in an environment not known to him.1. The conditions of this system in contrast closed decision-making system are: a) The manager does not know all the decision alternatives. The model is analyzed in four ways. What if analysis Decisions are made using a model of the problem for developing various solution alternatives and testing them for best choice. How hardware & software support in various MIS activities of the organization? Explain the transaction stages from manual system to automated systems? . **************** Set 2 Q. c) No method. The model is built with some variables and relationship between variables considered values of variables or relationship in the model may not hold good and therefore solution needs to be tested for an outcome. The process is executed through analytical modelling of problem and solution. rule or model is available to study and finalize one decision among the set of decision alternatives. Goal Seeking Analysis 3. then the decision-making system is termed as an open decision-making system. Goal Achieving analysis . 1. b) The outcome of the decision is also not known fully.' Decision Analysis by Analytical Modeling Based on the methods discussed. a decision is made but such decision needs to be analysed for conditions and assumptions considered in the decision model. The knowledge of the outcome may be a probabilistic one. What if analysis 2. if the considered values of variables or relationship change.

Ans. colleagues. It is possible to obtain mathematical results correct up to a great degree of accuracy. A block diagram of a computer may be represented as . Business people across the globe travel a lot to meet their business partner.: Hardware support for MIS Generally hardware in the form of personal computers and peripherals like printers. Advantages of a PC : Advantages a personal computer offers are – a) Speed – A PC can process data at a very high speed. copier. By video conferencing inconvenience of traveling can be avoided. e) Conferencing – A PC with internet offers facility of video conferencing worldwide. The storage system in a PC is such that the information can be transferred from place to another place in electronic form. It can process millions of instructions within fraction of seconds. fax machines. d) Accuracy – A PC is highly reliable in the sense that it could be used to perform calculations continuously for hours with a great degree of accuracy. Today a PC with internet is used as a powerful tool of communication for every business activity. It eliminates the need of storing the conventional office flat files and box files which requires lots of space. and customers etc to discuss about business activities. c) Communication – A PC on the network can offer great support as a communicator in communicating information in the forms of text and images. scanners etc are used in organization to support various MIS activities of the organization. b) Storage – A PC can store large quantity of data in a small space.

Examples of output unit – Monitor. It does all mathematical calculations. track. information can flow seamlessly from any location to any other location. Information and information products are available in electronic media. They are: • E business • E communication • E commerce • E collaboration These models work successfully because Internet technology provides the infrastructure for running the entire business process of any length. commodities and services. A processor refers to unit which processes the input received the way it has been instructed. and provide access to everybody from anywhere. These enabling capabilities of technology have given rise to four business models that together work in an E enterprise organization. printer. interpret and use rules and guidelines for decision-making. storing details in the memory etc. It also provides email and other communication capabilities to plan. In a computer the processor is the CPU – Central Processing Unit. And software solutions make them faster and self-reliant as they can analyze data information. scanner. logical tasks. speakers etc. Examples of input unit –Keyboard. It has dramatically reduced cost of data and information processing. product information is available on an organization website which . monitor and control the business operations through the workers located anywhere. Low cost connectivity physical. mouse. For example. Essentially Internet and networks enable integration of information. and is a resident on the network. Internet has enabled organizations to change their business process and practices. Once everyone is connected electronically. data acquisition and radio frequency used systems and so on.Input unit is used to give input to the processor. its sending and storing. Organization of Business in an E enterprise – Software Applications in MIS Internet technology is creating a universal bench or platform for buying and selling of goods. Output unit is used to give output s from the computer. bar code reader etc. virtual and universal standards of Internet technology make it a driving force to change conventional business model to E business enterprise model. facilitate communication. It is capable of linking to disparate systems such as logistics.

rejection is communicated instantaneously to the customer. Such order is then placed directly on the order board for scheduling and execution. collaboration. The business process of serving the customer to offer goods. The technology adds speed and intelligence in the business process improving quality of service to the customer. and conversion has become significantly faster. An order placed is processed at the backend and status of acceptance. These technologies help to save time. .also has a feature of order placement. products or services is made up of the following components. transparent and cheaper. These basic capabilities of Internet have given rise to number of business models. Some of them are given in Table The Internet and networks provide platform and various capabilities whereby communication. resource and enable faster decision making.

Consulting The resultant effect is the reduction in cost of business operations. Subcontracting Servicing. the technology is flexible and capable of handling any business models such as: • • • • Retailing. Four major applications mentioned earlier make this achievement possible. It provides important strategic. Further. competitive advantage. We go into details of each one of them. improved customer loyalty and retention and better quality offer to the customer. Training.• • • • • • • • • • • • Enquiry processing Order preparation Order placement Order confirmation Order planning Order scheduling Order manufacturing Order status monitoring Order dispatching Order billing Order receivable accounting Order payment processing The entire process in parts or full can be handled through these technologies and software solutions. Transformation stage manual systems to automated systems The manual system which was prevalent in the organizations before industrial revolution was slowly transformed into digital form by means of computer and related electronic instruments. Trading. Learning. Distribution & Selling Outsourcing. Auctioning Manufacturing. A transformation had to necessarily go through the following stages .

responsibilities and procedures that are adopted by the organization. Reasons that employees resist new systems: 1.a) Appraisal of the procedures b) Types of documents c) Storage systems d) Formulations and coding e) Verification and validation f) Review g) Documentation Q. It constitutes the rules.2. User resistance is a major behavioral factor associated with the adoption of new systems. Uncertainty or unfamiliarity or misinformation . Change in job content 2. Explain the various behavioral factors of management organization? As per Porter. policies.: Management organizations: An organization is a structure that uses the resources from the environment like manpower. (2000) . The following are compiled by Jiang et al. capital and returns the output like products and services to the environment. Loss of power 5. Change in decision making approach 6. Behavioral factors The implementation of computer based information systems in general and MSS in particular is affected by the way people perceive these systems and by how they behave in accepting them. how can performance of individual corporations be determined? Ans. Change in interpersonal relationships 4. Loss of status 3. raw materials.

or technology. Over expectation was observed in most early intelligent systems. d) The threat of substitute products. Competitive strategy is an enterprise's plan for achieving sustainable competitive advantage over. c) The threat of new entrants. e) Resistance to change – can be strong in MSS because the impacts may be significant. And e) Rivalry among existing firms. The performance of individual corporations is determined by the extent to which they manage the following (as given by Porter) – a) The bargaining power of suppliers. DSS may provide partial explanation. Explanation can reduce resistance to change c) Organizational climate some organizations lead and support innovations and new technologies whereas other wait and lag behind in making changes d) Organizational expectations – over expectation can result in disappointments and termination of innovation. Strategic information systems theory is concerned with the use of information technology to support or sharpen an enterprise's competitive strategy. its adversaries.7. or reducing the edge of. Competition means cultivating unique strengths and capabilities. DSS and ANN are analytic b) Need for explanation – ES provides explanation. Another alternative sees competition as a process linked to innovation in product. ANN does not. b) The bargaining power of buyer. Performance of individual corporations: Out of many possible interpretations of a strategy an organization adopts in business. Job security The major behavioral factors are a) Decision styles symbolic processing of AI is heuristic. it is found that a majority is concerned with competition between corporations. and defending them against imitation by other firms. Porter's classic diagram representing these forces is indicated below. market. .

the distribution channels it employs. i.e.There are two basic factors which may be considered to be adopted by organization in their strategies: a) low cost b) product differentiation Enterprise can succeed relative to their competitors if they possess sustainable competitive advantage in either of these two. or the breadth of the enterprise's target markets within its industry. the types of buyers it serves. Another important consideration in positioning is 'competitive scope'. and the array of related industries in which it competes. the geographic areas in which it sells. the range of product varieties it offers. Under Porter's .

competitive advantage grows out of the way an enterprise organizes and performs discrete activities. They are: a) Cost leadership. And d) Focused differentiation. b) Differentiation. but perform activities more efficiently than its competitors (lower cost). As per Borden 1964. a firm must either provide comparable value to the customer. By performing these activities. service technicians performing repairs. c) Cost focus. To gain competitive advantage over its rivals. quoted in Wiseman 1988many differentiation bases can be classified as 4 P’s as given below: . enterprises create value for their customers. The ultimate value an enterprise creates is measured by the amount customers are willing to pay for its product or services.framework. Porter's representation of them is indicated below According to Porter. The operations of any enterprise can be divided into a series of activities such as salespeople making sales calls. A firm is profitable if this value exceeds the collective cost of performing all of the required activities. or perform activities in a unique way that creates greater buyer value and commands a premium price (differentiation). and treasurers raising capital. scientists in the laboratory designing products or processes. enterprises have four generic strategies available to them whereby they can attain above average performance.

credit terms) .1. it is observed that the user's and the designer's interaction is smooth. The choice of the system or the subsystem depends on its position in the total MIS plan. Product (quality. payment period. the size of the system. sizes. brand name. warranties. sales promotion. The development becomes a method of approach with certainty in input process and outputs. Determining the position of the system in the MIS is easy. options. Q.: Development of Information Systems a) Development and Implementation of the MIS : Once the plan of MIS is made.3. decision making and the understanding of the overall business activity. coverage. discounts. the procedures. greater is the stabilization of the rules. features. and formalization in the system and procedures which determine the timing and duration of development of the system. the user's understanding of the systems and the complexity and its interface with other systems. enlarging the system scope and meeting the varying information needs. b) Prototype Approach : . transport) . The designer first develops systems independently and starts integrating them with other systems. Place (channels. publicity). and their needs are clearly understood and respected mutually. Promotion (advertising. The development strategy determines where to begin and in what sequence the development can take place with the sole objective of assuring the information support. Here. services. Higher the degree of structuredness and formalization. locations. inventory. the development of the MIS calls for determining the strategy of development. allowances. The various attributes listed above can be sharpened the firms product by the support of a suitable information technology. The real problem is the degree of structure. 2. personal selling. Compare various types of development aspect of Information System? Explain the various stages of SDLC? Ans. the plan consists of various systems and subsystems. returns) . packaging. Price (list. And 4. As discussed earlier. style. 3.

questioning the information needs. therefore. In the prototyping approach. inadequacies in the prototype visàvis Fulfillment of the information needs. This calls upon each individual to comply with the design needs and provide without fail the necessary data inputs whenever required as per the specification discussed and finalised by the designer. These details more or less remain static from the day the system emerges and remains in that static mode for a long time. to appreciate that the information is a corporate resource. ensuring that it satisfies the needs of the users. developing methodology. the development strategy is Prototyping of the System. Minor modifications or changes do occur but they are not significant in terms of handling either by the designer or the user of the system. For example. and an understanding of the corporate business. Bringing the multiple users on the same platform and changing their attitudes toward information. the departmental. The qualification. when there are multiple users of the same system and the inputs they use are used by some other users as well. This process. . that is. and they are very much structured and rule based. is the managerial task of the system designer. if any. c) Life Cycle Approach : There are many systems or subsystems in the MIS which have a life cycle. The attitudes of various users and their role as the originators of the data need to be developed with a high degree of positivism. identifies the problem areas. therefore. helps considerably. a definite set of outputs in terms of the contents and formats. and can be reviewed after a year or two. Such systems. knowledge. and all have to contribute as per the designated role by the designer to fulfill the corporate information needs. they have birth and death. for significant modification. as a corporate resource. and assess the problems of development and implementation. trying it out on a smaller scale with respect to the data and the complexity. the personal boundaries do not exist. of all personnel. which is used in accounts and inventory management. of the state of art. a lot of input data comes from the purchase department.When the system is complex. Their emergence may be sudden or may be a part of the business need. experience. the designer's task becomes difficult. The designer then takes steps to remove the inadequacies. This may call upon changing the prototype of the system. It requires. streamlining the operational systems and procedures and move user interaction. have a life and they can be developed in a systematic manner. They have 100% clarity of inputs and their sources. When it comes to information the functional. Prototyping is a process of progressively ascertaining the information needs. in overcoming the problem of changing the attitudes of the multiple users and the originators of the data.

These systems have a fairly long duration of survival and they contribute in a big way as sources of data to the Corporate MIS. .Examples of such systems are pay roll. share accounting. their role is important and needs to be designed from the view point as an interface to the Corporate MIS. basic financial accounting. order processing. Therefore. finished goods accounting and dispatching. Table below shows the difference between the two approaches helping the designer select an approach. and so on.

the new role may reduce his importance in the organization. Impress upon the user that the quality of information depends on the quality of input. It brings about organizational change. Impress upon the user that you are one of the users in the organization and that the information is a corporate resource and he is expected to contribute to the development of the MIS. 3. The second fear is about the role played by the person in the organization and how the change affects him. Not to forget that his role is to offer a service and not to demand terms. 4. The user of the system has a certain fear complex when a certain cultural work change is occurring. There are certain guidelines for the systems designer for successful implementation of the system. Impress upon the user the global nature of the system design which is required to meet the current and prospective information need. the system designer acts as a change agent or a catalyst. The system designer should not question beyond a limit the information need of the user. Ensure that he appreciates that his commitments contribute largely to the quality of the information and successful implementation of the system. unless technically infeasible. On many occasions.d) Implementation of the Management Information System The implementation of the system is a management process. 5. Not to challenge the application of the information in decision making. Care has to be taken to assure the user that such fears are baseless and the responsibility. therefore. the work design may make the new job impersonal. In short. 2. In the process of implementation. rests with the designer. . The process evokes a behavior response which could be either favorable or unfavorable depending upon the strategy of system implementation. Ensure that the user makes commitment to all the requirements of the system design specifications. 6. the designer should respect the demands of the user. Ensure that the overall system effort has the management's acceptance. 8. Not to mix up technical needs with the information needs. The first and the foremost fear is about the security to the person if the changeover from the old to new is not a smooth one. He should try to develop suitable design with appropriate technology to meet the information needs. and a fear complex may get reinforced that the career prospects may be affected. For a successful implementation he has to handle the human factors carefully. It is the sole right of the user to use the information the way he thinks proper. Remember that the system design is for the use of the user and it is not the designer's prerogative to dictate the design features. The designer should not recommend modifications of the needs. 1. it affects people and changes their work style. 9. 7.

where the change is consolidated and equilibrium is reinforced. is not as easy in the computer system as it calls for changes in the programs at cost. The second step is choosing a Course of action where the process begins and reaches the desired level of stability. Ensure that the other organization problems are resolved first before the MIS is taken for development.10. 12. SDLC System development cycle stages are sometimes known as system study. Impress upon the user that perfect information is nonexistent. 15. 14. 16. and participation. 13. which is easily possible in manual system. The resistance can occur due to three reasons. This change can occur in a number of ways. and the third step is Refreezing. Enlist the user's participation from time to time. so that he is emotionally involved in the process of development.. Hence. 16. and providing incentives to the users. he is his best guide on the complex path of development. viz. The first step is unfreezing the organization to make the people more receptive and interested in the change. This process is implemented through an external change agent. Many a times. The problem of resistance can be handled through education. Implementation of the MIS in an organization is a process where organizational transformation takes place. the factors inherent in the design of the system and the factors arising out of the interaction between the system and its users. and eliminating the organizational problems before implementing the system. Conduct periodical user meetings on systems where you get the opportunity to know the ongoing difficulties of the users. persuasion. System concepts which are important in developing business information systems expedite problem solving and improve . Impress upon the user that the change. The Lewin's model suggests three steps in this process. Train the user in computer appreciation and systems analysis as his perception of the computerized information system will fall short of the designer's expectation. the factors internal to the users of information. such as a consultant playing the role of a catalyst. His role therefore still has an importance in the organization. Realize that through serving the user. The significant problem in this task is the resistance to change. This itself can be achieved by improving the human factors. 11. the designer should be prepared to change the system specifications or even the design during the course of development. Not to expect perfect understanding and knowledge from the user as he may be the user of a Non computerized system.

f) 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. implementation. prototyping. It may be represented in the form of a block diagram as shown below: A) 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. validation. collection and analysis. They are confronted with the challenging task of creating new systems and planning major changes in the organization. The database design is the design of the database design and the application design is the design of the application programs. that is. The system analyst has to do a lot in this connection. . There are two types of design: database design and application design. b) Requirements. d) 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. requirements. meaning and direction. e) Implementation It is concerned with the programming of the final operational version of the information system.the quality of decision making. testing and operation. c) Design It is concerned with the specification of the information systems structure. design. Implementation alternatives are carefully verifies and compared. the application areas of the system within the enterprise and the problems that the system should solve. The system analyst gives a system development project. collection and analysis It is concerned with understanding the mission of the information systems. The typical breakdown of an information systems life cycle includes a feasibility study.

E business enterprise is open twenty four hours. customers and vendors. broad in scope and a learning organization. and wireless technology for improving the business performance measured in terms of cost. It is no longer functional. E business enterprise is more process driven. directories and document repositories. All this is possible due to Internet and web moving traditional paper driven organization to information driven Internet enabled E business enterprise. and CRM supported by data warehouse. decision support. and decision support systems. They are supported by information systems. It is replaced by people organization that is empowered by information and knowledge to perform their role. business partners. It has no geographic boundaries as it can extend its operations where Internet works. managers. vendors. SCM. use digital technologies and work on databases. It is lean in number. faster delivery of goods and services to the customers. efficiency. wherever necessary. and being independent. Technology enabled and uses its own information and knowledge to perform. 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. The effect of these radical changes is the reduction in administrative and management overheads. most of the things are electronic. It enables to reach new markets across the world anywhere due to communication capabilities. Today most of the business organizations are using Internet technology. traditional business organization definition has undergone a change where scope of the enterprise now includes other company locations. flat in structure. and knowledge management systems. knowledge bases. The business processes are conducted through enterprise software like ERP. reduction in inventory. Internet capabilities have given E business enterprise a cutting edge capability advantage to increase the business value. In E business enterprise traditional people organization based on 'Command Control' principle is absent. In E business enterprise. It has empowered customers and vendors / suppliers through secured access to information to act. It has opened new channels of business as buying and selling can be done on Internet. competitiveness and profitability. product.4. They are using E business.Q. The cost of business operations has come down significantly due to the elimination of paper driven processes. Compare & Contrast E-enterprise business model with traditional business organization model? Explain how in E-enterprise manager role & responsibilities are changed? Explain how manager is a knowledge worker in E-enterprise? Ans: Managing the E enterprise Due to Internet capabilities and web technology. customers transact business anytime from anywhere. faster communication and effective collaborative working. application packages. network. .

namely: • Domestic business to global business. automated. The business processes across the organization and outside run on E technology platform using digital technology. The basis of conventional organization design is command & control which is now collaborates & control. workflows. These transformations have made conventional organization design obsolete. • ]Industrial manufacturing economy to knowledge based service economy. Hence today's business firm is also called E enterprise or Digital firm. and CRM run on Internet (Internet / Extranet) & Wide Area Network (WAN). The paradigm shift to E enterprise Has brought four transformations. This Change has affected the organization structure. electronically transacted business process. reporting mechanisms. and business processes at large. • Manual document driven business process to paperless. work practices. The comparison between conventional Organization design and E enterprise is summarized in Table . • Enterprise Resource Management to Enterprise Network Management. SCM.Ecommerce Solutions to reach faraway locations to deliver product and services. The enterprise solutions like ERP. scope of operations.

increase in profit and productivity and so on. This technology offers a solution to communicate. healthcare are being managed through Internet E banking.Comparison between Conventional Design and E Organization In E enterprise. ATM. Internet and networking technology has thrown another challenge to enlarge the scope of Organization where customers and vendors become part of the organization. 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. . Allow people to work from anywhere. insurance. MIS for E business is different compared to conventional MIS design of an organization. It is effectively used for strategic planning for survival and growth. The digital firm. white goods and many such goods are bought and sold on Internet. computer. Knowledge management system is formally recognized as a part of MIS. Smart card. E money are the examples of the Ecommerce application. CDs. country specific accounting practices. To achieve the said benefits of E business organization. The organization structure should be lean and flat. Buyers and sellers through Internet drive the market and Internet based web systems. and laws of security are to be adhered strictly. Get rid of rigid established infrastructure such as branch office or zonal office. E audit. Books. banking. coordinate. where integration of multinational information systems using different communication standards. Buying and selling is possible on Internet. On the same lines. & use of Credit cards. The role of MIS in E business organization is to deal with changes in global market and enterprises. and collaborate with customers. Make use of groupware technology on Internet platform for faster response processing. business is conducted electronically. is a reality and is going to increase in number. which uses Internet and web technology and uses E business And Ecommerce solutions. Another challenge is to convert domestic process design to work for international process. E billing. Automate processes after reengineering the process to cut down process cycle time. vendors and business partners. it is necessary to redesign the organization to realize the benefits of digital firm. It means changing the organization behavior to take competitive advantage of the E business technology. The new channel of business is well known as Ecommerce. MIS produces more knowledge based products. considering multiple locations and multiple information needs arising due to global operations of the business into a comprehensive MIS. The last but not the least important is the challenge to organize and implement information architecture and information technology platforms.

HR. operation. the term SLA is sometimes used to refer to the contracted delivery time (of the service) or performance. responsibilities. there can be no "agreement" between third parties (these agreements are simply a "contract"). and not how the service provider delivers that service.5. guarantees. Each area of service scope should have the "level of service" defined. This practice has spread such that now it is common for a customer to engage a service provider by including a service-level agreement in a wide range of service contracts in practically all industries and markets. It is important to note that the "agreement" relates to the services the customer receives. or other attributes of the service. however. penalties may be agreed upon in the case of non-compliance of the SLA (but see "internal" customers below). In practice.: A service level agreement (frequently abbreviated as SLA) is a part of a service contract where the level of service is formally defined. The "level of service" can also be specified as "target" and "minimum. Operating Level Agreements or OLA(s). This internal benchmarking can also be used to . serviceability. One benefit of this can be to enable the quality of service to be benchmarked with that agreed to across multiple locations or between different business units. may be used by internal groups to support SLA(s). This can be a legally binding formal or informal "contract" (see internal department relationships). The SLA records a common understanding about services. Internal departments (such as IT. What do you understand by service level Agreements (SLAs)? Why are they needed? What is the role of CIO in drafting these? Explain the various security hazards faced by an IS? Ans. whilst providing a measurable (average) target value that shows the level of organization performance. various data rates. The SLA may specify the levels of availability.Q." which allows customers to be informed what to expect (the minimum). etc. such as billing. SLAs have been used since late 1980s by fixed line telecom operators as part of their contracts with their corporate customers. and warranties. MTTR. Contracts between the service provider and other third parties are often (incorrectly) called SLAs — as the level of service has been set by the (principal) customer. As an example. performance. priorities. internet service providers will commonly include service level agreements within the terms of their contracts with customers to define the level(s) of service being sold in plain language terms (typically the (SLA) will in this case have a technical definition in terms of MTTF. In some contracts.) A service level agreement (SLA) is a negotiated agreement between two parties where one is the customer and the other is the service provider. and Real Estate) in larger organization have adopted the idea of using service-level agreements with their "internal" customers — users in other departments within the same organization.

and develop metrics that track the performance of the information systems staff.market test and provide a value comparison between an in-house department and an external service provider. How many projects should the manager have had? Did he really have the capacity to handle 14 projects? A CIO should explore running their area more like a service operation rather than a cost center. 'I had 14 projects last year. "output" based — the result of the service as received by the customer is the subject of the "agreement. they should set up what is expected and what levels of service the equipment will provide. and there are other products that can monitor hardware performance.' But there is no real business measurement there. Service-level agreements are. as well as the equipment comprising the applications. and knowledge to deliver the service required." The (expert) service provider can demonstrate their value by organizing themselves with ingenuity. This latter type of requirement is becoming obsolete as organizations become more demanding and shift the delivery methodology risk on to the service provider. by their nature. through a specification (a service-level specification) and using subordinate "objectives" other than those related to the level of service. the staff needs to understand where the service is being used to be properly remunerated or to demonstrate where the value is. The first step. Organizations can also specify the way the service is to be delivered. particularly when it comes to apportioning staff time. It sets the expectation on the technical areas of the CIO's operations. This type of agreement is known as an "input" SLA. There are software’s to help with the people picture. but CIOs generally do not because IT has always been viewed as a cost center. Measurements in IT tend to be vague and lacking in context. perhaps in an innovative way. The systems department should not only focus on providing better service to the various lines of business but also help businesses operate better. If the CIO wants to be taken seriously. capability. they say. A major part of . The second part of the IT operations equation is computer equipment. At a minimum. and CIOs must have a firm handle on how that equipment is being used. and networks under the CIO's control. such as network and server uptime. is to implement service level agreements (SLAs) with business units. Role of CIO in drafting SLA’S One of the major responsibilities of the CIO is to establish the credibility of the systems organization. so that he can effectively measure his internal business performance. he needs to do what other executives do and have his own business metrics and performance measurements. Other business departments have them. For example. and I did them well. One of the major roles of the CIO is to make the organization information systems savvy and increase the technological maturity of the information systems organization. The underlying SLAs should be some sort of a chargeback system with business units. If information systems are now providing a service. infrastructure.

and when it needs to be refurbished. vi) Natural Disasters: Natural disasters are not controllable. lockout or there may be chances of riots in the area. There are power cuts and sometimes high voltage serge destroys a sensitive component of the computer. neglect and incompetence.the CIO's job is to make the users aware of the opportunities arising as a result of technical innovations. More dangerous are the problems which are created by human beings due to the omission. CIOs need to institute life cycle management with their applications and computer equipment. ii) Fraud and unauthorized access: This hazard is due to dishonesty. all the components of a system are involved. etc. flammable liquids etc. floods. and familiarizing them with computers and information systems applications. Examples are earthquake. Lacking this knowledge. This can be done through : a) Infiltration and industrial espionage b) Tapping data from communication lines c) Unauthorized browsing through lines by online terminals. replaced. and for companies to spend far too much money on maintaining ailing applications. Most IT organizations do not have any idea of the life cycle of an application – how long they want it to last. The information systems management also has the job of helping the end users adapt to the changes caused by information systems. iv) Fire hazard: it can happen because of electrical short circuits. They are not frequent hazards but if they happen they destroy the things or ruin them. tornadoes and lightening. or disposed of. Finally. cheating or deceit. and to encourage their use. Sometimes communication channel are busy or noisy. iii) Power and communication failure: In some locations they are the most frequent hazards than any other else because availability of both of them depends upon the location. . it is easy for applications to linger long after they should be gone. v) Sabotage and riots: sometimes the employees destroy the computer centre in case of strike. Security Hazards faced by an Information system: Security of the information system can be broken because of the following reasons: i) Malfunctions: In this type of security hazard. software and hardware errors course the biggest problem. how this can help them perform better. People.

All potential users were asked to give their impressions and ideas about the various systems available before one was chosen. This gives the waiters faster feedback. the hot-item printer if it is a hot sandwich or the bar printer if it is a drink. Ans. the cooks send out an ‘out of stock’ message. especially if the voids consistently related to food or service. Questions to be analysed: In the light of the system. This may help later in management decisions. whenever an order is voided. Q. The system also compares the weekly sales totals versus food costs. allowing planning for tighter cost controls. describe the decisions to be made in the area of strategic planning. This helps management plan menus according to customers’ tastes. the reasons for the void are keyed in.6. managerial control and operational control? What information would you require to make such decisions? What would make the system a more complete MIS rather than just doing transaction processing? Explain the probable effects that making the system more formal would have on the customers and the management.: Case Summary: A waiter takes an order at a table. When the kitchen runs out of a food item. Solution: . enabling them to give better service to the customers. The system provides up-to-the-minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales. A customer’s meal check-listing (bill) the items ordered and the respective prices are automatically generated. The order is routed to a printer in the appropriate preparation area: the cold item printer if it is a salad.vii) General hazards: this category covers many more hazards which are not covered anywhere and difficult to define and come spontaneously. and then enters it online via one of the six terminals located in the restaurant dining room. Other system features aid management in the planning and control of their restaurant business. This ordering system eliminates the old three-carbon-copy guest check system as well as any problems caused by a waiter’s handwriting. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. In addition. which will be displayed on the dining room terminals when waiters try to order that item. Case Study: Information system in a restaurant.

the reasons for the void are keyed in which later helps in management decisions.1. transforms and distributes information in an organization. It is basically a middle level where planning of menus is done and whenever an order is voided. annual budgeting. relevant and accurate information to managers. They are future oriented and relate directly to planning activity. There are 3 areas in the organization. The decisions to be made in the area of strategic planning are future oriented and relate directly to planning activity. and manpower planning. profit planning. Decision making is the core of management and aims at selecting the best alternative to achieve an objective. The item’s ordered list and the respective prices are automatically generated. hardware. The decisions may be strategic. The top level where strategic planning is done compares the weekly sales totals versus food costs. especially if the voids are related to food or service. and use advanced graphics and communications. Strategic decisions are characterized by uncertainty. Management information is an important input for efficient performance of various managerial functions at different organization levels. cost analysis. The cooks send ‘out of stock’ message when the . Management functions include planning. is done. software. support unstructured decision making. Executive support systems function at the strategic level. An MIS helps decision making by providing timely. personnel and procedures. They are strategic. Tactical decisions cover both planning and controlling. This is basically a lower level where the waiter takes the order and enters it online via one of the six terminals located in the restaurant dining room and the order is routed to a printer in the appropriate preparation area. operating plan development. objectives etc. The decisions to be made in the area of operational control pertain to implementation of specific tasks through appropriate technology. target markets. The physical components of an MIS include hardware. budget forecasting. A management information system (MIS) is an organized combination of people. Here basically planning for future that is budgets. Examples of executive support systems include sales trend forecasting. database. tactical or technical. Technical decisions pertain to implementation of specific tasks through appropriate technology. budget forecasting. policies. managerial and operational control. Sales region analysis. controlling and decision making. The managerial control that is middle level also gets customer feedback and is responsible for customer satisfaction. The information system facilitates decision making. Strategic decisions are characterized by uncertainty. allowing planning for tighter cost controls. and relocation analysis are examples of decision-support systems and management information systems. This is basically a top level where up-to-the minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales is provided. communication networks and data sources that collects. The decisions to be made in the area of managerial control are largely dependent upon the information available to the decision makers.

and securities trading. enabling them to give better service to the customers. The information required to make such decision must be such that it highlights the trouble spots and shows the interconnections with the other functions. facilitating interpersonal communication. which may be rapidly changing and not easily specified in advance. It must summarize all information relating to the span of control of the manager. expediting problem solving (speed up the progress of problems solving in an organization). revealing new approaches to thinking about the problem space and . Improving personal efficiency. promoting learning and training. which is basically displayed on the dining room terminals when waiter tries to order that item.kitchen runs out of a food item. Advantages of an online computer system: a) Eliminates carbon copies b) Waiters’ handwriting issues c) Out-of-stock message d) Faster feedback helps waiters to service the customers Advantages to management: a) Sales figures and percentages item-wise b) Helps in planning the menu c) Cost accounting details 2. plant scheduling. Decision support systems would also make the system a complete MIS as it constitutes a class of computer-based information systems including knowledge-based systems that support decision-making activities. it would make the system a more complete MIS and so the MIS should support this culture by providing such information which will aid the promotion of efficiency in the management services and operational system. machine control. generating new evidence in support of a decision. creating a competitive advantage over competition. Examples of transaction processing systems include order tracking. The information required to make these decisions can be strategic. If the management provides sufficient incentive for efficiency and results to their customers. increasing organizational control. encouraging exploration and discovery on the part of the decision maker. order processing. DSSs serve the management level of the organization and help to take decisions. Transaction processing systems function at the operational level of the organization. compensation. tactical or operational information. It is also necessary to study the keys to successful Executive Information System (EIS) development and operation. This basically gives the waiters faster feedback.

******************** . the organization must exchange valuable information across different functions. global environment. customer service. By making the system more formal. operational. The management system should be an open system and MIS should be so designed that it highlights the critical business. business units. To accomplish these goals. To make the system a success.helping automate the managerial processes would make the system a complete MIS rather than just doing transaction processing. any frauds can be easily taken care of and if anything goes missing then it can be detected through the system. As the inventory is always entered into the system. technological and environmental changes to the concerned level in the management. and speed to market. the organization can more efficiently exchange information among its functional areas. so that the action can be taken to correct the situation. An organization operates in an ever-increasing competitive. suppliers. The systems developed will have to be able to handle enormous amounts of information very fast. knowledge will have to be formalized so that machines worldwide have a shared and common understanding of the information provided. As the transactions are taking place every day. the system stores all the data which can be used later on when the hotel is in need of some financial help from financial institutes or banks. and business units. and customers. 3. Operating in a global environment requires an organization to focus on the efficient execution of its processes. levels.

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