MC0076 Assignment set 1 1(a) Information is a complex concept that has a variety of meanings depending on its context and

d the perspective in which it is studied. It could be described in three ways 1) as processed data, 2) as the opposite of uncertainty, and 3) as a meaningful signal-to illustrate the richness of the concept of information.

1(b) Organizations may use information as a resource, as an asset, or as a commodity. (i) Information as a Resource We generally think of organizations using money, people, raw materials, machinery, or even time as resources-inputs to the production of outputs. Information can also be viewed as a resource. Social workers use information about clients in helping them become more functional. Physicians use case histories of patients as inputs to diagnosis and prescription. Resources can also substitute for one another to some degree. Capital in the form of automated equipment can reduce labour required for production. Similarly, information can replace either capital or labour. Organizational members may also use information to decrease the cost or increase the quality of the final product or service. (ii) Information as an Asset An asset is the property of a person or an organization that is used to produce a companys outputand does not get used up as a resource does. Some resources are converted to assets that can beused over an extended period, such as the use of capital to purchase equipment that, in turn,becomes an asset. The information resource is similar, but not identical, to other resources in thisrespect. Information, even if used immediately, is rarely actually consumer. (iii) Information as a Commodity Like corn, automobiles, washing machines, or other commodities, information is a saleable product.Some companies use information primarily to sell it.

1(c) Although information can be valuable, it is costly to use. Acquiring, processing, storing, retrieving,and communicating information each have costs. (i) Acquiring Information The acquisition of information is a first step in its use. We can obtain information from either formalor informal sources. Formal sources provide information in a relatively organized and predictablefashion (ii) Processing Information

Processing information describes transforming it into a usable form. Processing typically occurs at two times: first, between the acquisition and storage of information, and second, between its retrieval and communication. (iii) Storing Information The primary cost of storing information is the cost of the storage medium and space on computerized storage uses paper, microform, or both. These media require much more physical storage space than electronic media and typically incur a greater cost for leasing or buying space than do electronic media. Computerized storage uses a variety of media, including hard disks, diskettes, pen drives and CD-ROM, depending on the amount of information to be stored and the desired speed of retrieval. The organizational overhead to monitor and control information storage, including staff salaries and physical equipment, adds to the cost of information storage. (iv) Retrieving Information Retrieving desired data from manual systems can be time consuming and expensive executives spend approximately six weeks a year on average looking for misplaced material. (v) Communicating Information Manual transmission of information occurs frequently and easily in most organizations. Most organizational members rely on face-to-face communication in formal or informal setting or unwritten publications for much of the information they require to do their jobs. Bu t face-to-face communication requires extensive amounts of time, a scarce resource in most organizations.

2 (a) Because of the value of information to organizational performance, most organizations develop procedures to ensure that important information is collected, captured accurately, and organized effectively. Individual jobholders, various types of computer equipment, and an array of computer software facilitate such information management.

2(b) Transportation and communication networks spanning the globe have removed the protective space and time buffers shielding companies from competition. This calls for constant innovation. Complexity, turbulence, and a high volume of knowledge with potential impact on the companys operations characterize the operational environment of todays organization. An infrastructure is the structure of facilities and services necessary for organizations and economies to function and grow. Fast and relatively inexpensive means of transportation, telecommunications networks, and global financial markets are all components of the infrastructure of the information society. These means of rapidly moving goods, information, and money have shrunk the world. They have removed the advantages provided by the remoteness of potential business competitors in the early industrial economy. Largely, firms no longer compete solely against a known handful of other companies: they must develop a general competitive capability. Runners may appreciate the analogy to the difficulty of achieving a record result running alone as compared with running against others in a race. Not

only has the space buffer that formerly shielded companies from their remote competitors been removed, but paced by computerized information systems, life cycles for product development have been shortened dramatically. 3(a) Value Stream is an end-to-end set of activities, which collectively create value for a customer. Value streams are often cross-functional. Basis for value added or differentiation strategies Who is our customer? What is valued by customer? Who are our competitors? How difficult is our product to imitate? Problems with value chains No owner for value stream Nobody focuses on customer satisfaction Long time delays Pass on problems to each other Seepages through the cracks Considerable rework (i) Michael Porters Value Chains Value chains help in developing leverage points where the costs needs to be contained and the value can be enhanced. Value activities do not operate independently. They have linkages amongst themselves. It can add value by supporting the linkages. (ii) Michael Porters Competitive Force Model Illustrations for overcoming threats Reduce bargaining power of customers. Putting terminals into customers offices Reduce bargaining power of suppliers having alternative sources of supply Threat of new entrants putting in a high cost of IS support system Threat of substitute products putting up flexible manufacturing facilities (iii) Michael Porters Generic Strategies for Competitive Advantage

3(b) (i) Potential Internal Strengths A distinctive competence Adequate financial resources Good competitive skill Well thought of by buyers An acknowledged market leader Well-conceived functional area strategies Access to economies of scale Insulated (at least somewhat) from strong competitive pressures Proprietary technology Cost advantages Better advertising campaigns Product innovation skills

(ii) Potential External Opportunities Serve additional customer groups Enter new markets or segments Expand product line to meet broader range of customer needs Diversify into related products Vertical integration Falling trade barriers in attractive foreign markets Complacency among rival firms Faster market growth (iii) Potential Internal Weaknesses No clear strategic direction Obsolete facilities Lack of managerial depth and talent Missing key skills or competence Poor track record in implementing strategy Plagued with internal operating problems Falling behind in R&D Too narrow a product line Weak market image Weaker distribution network Below-average marketing skills Unable to finance needed changes in strategy Higher overall unit costs relative to key competitors (iv) Potential External Threats Entry of lower-cost foreign competitors Rising sales of substitute products Slower market growth Adverse shifts in foreign exchange rates and trade policies of foreign governments Costly regulatory requirements Vulnerability to recession and business cycle Growing bargaining power of customers or suppliers Changing buyer needs and tastes Adverse demographic changes Situational analysis requires extensive internal and external data. To evaluate internal strengths and weaknesses,

4(a) Business decisions are becoming increasingly dependent on high quality information. Impact of discontinuity in service is: Competitive disadvantage, Loss of revenue, Problems with cash flow, increased costs, Fines and/or sanctions. In any organisation, management needs assurance that: Organizational goals are being achieved, Mitigation action has been taken to minimize risks to the system, and certain legal obligations have been met. All concerned need an assurance that the right information is being made available: Growing public awareness and concern Growing shareholder awareness and concern

5(a) Management information systems have evolved from offering generalized support to the controlling and, later, to the planning functions of management, to supporting the daily work of virtually every manager. Even the most computer-resistant managers are included in electronic mail networks and use reports produced by MIS. This leads us to a question: what are the activities of a manager? In answering this question, we will also answer another: what information-system support does manager need? Whereas the classical model of managerial functions derived from Fayols work provided us with summarized view of management activities, behavioural studies of managers give us a detailed view of how these activities are actually carried out. A realistic behavioural picture of a modern manager has emerged from the work of Henry Mintzberg(1973). He described the daily work of a manager as hundreds of brief activities of great variety, requiring rapid shifts of attention from one issue to another, very often initiated by emerging problems. Half of the activities of chief executives last less than 9 minutes, with only 10 percent of them taking more than an hour. Confirming these findings, Blake Ives and Margret he Olson have determined that the average activity of an information systems manager lasts 10.3 minutes. Managers have a "bias for action" (rather than reflection). They strongly prefer verbal media, which offer flexibility and responsiveness, and they spend most of their time in face-to-face meetings, where body language and nuance of expression enhance communication. The distribution of time spent by executives is shown below. Ives and Olson have determined that MIS managers distribute their time in a very similar fashion 5(b) the classical concept of a perfectly rational decision maker does not apply to the plethora of situations in organizational decision making. Most decision making is subject to bounded, limited rationality. Some of the limits arise from the way organizations function, some from our cognitive limitations as human individuals. The classical model of a decision maker was formulated in economic theory and is usually attributed to Adam Smith. This model is normative (prescriptive); that is, it describes how a person should make a decision. The process the model describes is known as rational decision-making. The model makes the following very strong assumptions: the rational decision maker seeks to maximize the payoff from a decision

6(a) the three principal DSS subsystems and their principal capabilities are shown below. Various commercial systems support DSS development and package these DSS capabilities in a variety of ways by distributing them among a series of optional modules. Components of DSS

6 (b) DSS can be broadly used throughout an organization. These systems can be classified by the management level they offer support to (operational, tactical, or strategic) or by the functional area they are used in (marketing, finance, and so forth). They can also be classified into personal and organizational systems. (i) Data Access Systems These systems (which Alter calls "file-drawer systems") can provide user-friendly ad hoc access to the database. This capability is equivalent to what is offered by most DBMS through a query language. (ii) Data Analysis Systems These systems help to analyze historical and current data, either on demand (ad hoc) or periodically. (iii) Forecast-Oriented Data Analysis Systems These systems (which Alter calls "analysis information systems") generally assist in developing product plans, including market segment forecasts, sales forecasts, and analyses of competitive actions. (iv) Systems Based on Accounting Models These are used to consider alternative options for planning purposes, based on accounting definitions and relationships. Such systems typically produce estimated (pro forma) income statements, balance sheets, or other measures of financial performance.

(v) Systems Based on Optimization Models Optimization models are developed by management scientists to determine optimal allocation of resources or best possible schedules, using the techniques of linear programming.

MC0076 Assignment set 2

I(a) 1) Better management of resources reducing the cost of operations. 2) Planning at function and process level. 3) Customer satisfaction increase due to shorter delivery cycle. 4) Simultaneous implementation of the decision centres because of instant inducement through triggers or updates. 5) Business operations transparency between business partners cutting down the execution time of critical business operation. 6) Intelligent ERP download the decision making at lower level, releasing the burden on the middle management. 7) Due to faster processing technology and SQL, management can see the information in their perspective and take different view of the business.

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

2(a) Computer- and communications-based information systems offer a set of capabilities to be brought out in the development of individual systems. As we will see, some of these capabilities help to provide dynamic action, while others help to maintain operational stability even as rapid change takes place. The principal capabilities of information systems include:

1) Fast and Accurate Data Processing, with Large-Capacity Storage and Rapid Communication between Sites. 2) Instantaneous Access to Information. 3) Means of Coordination. 4) Boundary Spanning 5) Supports for Decision Making 6) Formalization of Organizational Practice 7) Differentiations of Products or Services 8) Production Control

2(b) (i) Task-Related Needs Consider Ramesh, who is an Area Sales Manager of Airtel, uses information to perform a variety of tasks associated with his job. To identify potential customers he uses leads provided by his salesman ager, data published in trade journals and newspapers about the sales volume and number of employees in specific companies, and stories he hears from contacts with prospective customers and from salespeople in other fields. To build a rapport with various distributors, acquires information about their birthdays, the names of their family members, their favourite restaurants, and the types of entertainment they prefer. He also must know a great deal about his companys and his competitors products. (ii) Time Management Needs During a normal workday an Individual constantly makes decisions about the best way to handle his clients, (iii) Performance-Related Needs Not only do employees at all levels require information about the tasks they perform, they also can provide information to management about ways to improve task performance. (iv) Career-Related Needs Many individuals view their jobs in the context of a career. Personal information needs include lists of personal skills, job opportunities inside and outside the organization, and specifications for transfers or advancements.

2(c) In identifying their information management requirements, individuals face four major challenges in addition to securing the most appropriate information. First, they must deal with large quantities of information that may create overload. Second, they may face insufficient or conflicting information. Third, they must find ways to enhance their personal productivity. Fourth, they must acquire and maintain the technical skills needed for effective personal information management. (i) Dealing with Quantities of Information (ii) Facing Insufficient or Conflicting Information (iii) Enhancing Personal Productivity (iv) Maintaining Technical Skills Finally, using information technology effectively requires continuous updating of technical skills. Although many companies provide training to their employees, others do not. Ensuring that employees have the appropriate skills has both financial and time cost implications. As a result, employees may find their mobility and productivity limited by the extent to which they can learn new technical skills independently of their employer.

3(a) Four types of systems may make up an organizational MIS: Transaction Processing Systems (TPS), Management Reporting Systems (MRS), Executive Information Systems (EIS), and Office Information Systems (OIS). An information system in a large organization would typically include multiple systems of each type, serving, for example, different functional areas within the enterprise, as discussed later in this chapter. System types differ in their processing focuses, and main objectives. The focus defines the mission of a system. (i) Transaction Processing Systems Transaction processing systems support a companys business operations, and office information systems facilitate communication at all levels of a firm, while the remaining three system types support management functions. (ii) Office Information Systems Office Information Systems (OIS) support general knowledge work in the con text of a business office. The goal of OIS is to support multimedia communication within the firm and to offer gateways to the outside. Examples of activities supported by OIS include document processing, individual time scheduling and workflow coordination, project management, computer conferencing, and the exchange of messages in various formats. (iii) Information for Management Operational-level information systems support the conduct of business with data processing. The primary objective of management-oriented MIS components is to improve the effectiveness of managerial decision making by providing appropriate informational support.

(iv) Management Reporting Systems Management reporting systems (MRS) are the most elaborate of the management-oriented MIS components. Indeed, some writers call MRS management information systems, the name we reserve for the entire area of informational support of operations and management. The main objective of MRS is to provide lower and middle management with printed reports and inquiry capabilities to help maintain operational and management control of the enterprise.