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July 2011 Master of Computer Application (MCA) Semester 4 MC0076 Management Information Systems 4 Credits (Book ID: B0901)

1. Explain with relevant examples the concept of business process. Also mention their elements. For initiating business re-engineering, one is required to make some very basic and fundamental changes in ones conventional thinking. The business is re-engineered through process reengineering and the business has a number of processes which together produce the business results. You concentrate on the process and not on the task when it comes to reengineering. The business process is defined as a set of activities performed across the organization creating an output of value to the customer. Every process has a customer who may be internal or external to the organization. The scope of the process runs across the departments and functions and ends up in substantial value addition which can be measured against the value expectation of a customer. For example, the order processing scope in the traditional sense is within the marketing department. But when it comes to re-engineering, the scope expands to manufacturing, storing, delivering and recovering the money. Likewise, the scope of the bill payment is not limited to the accounts and finance departments but it covers ordering the vendors, receipt and acceptance or goods and paying the bill amount. In a classical organizational set-up, the different processes are handled in parts within the four walls of the department and the functions are limited to the responsibility assigned to them. When the bill payment process is to be re-engineered, it will be re-engineered right from the purchase ordering to cheque payment to the vendor. The reason for covering the

MCA 4th Sem Assignments

Management of Information System-MC0076

purchase ordering as a part of the bill payment process, is that the purchase order information decides the number of aspects of bill payment. The basic element of the processes is motivation to perform certain activities. In the process execution, the data is gathered, processed and stored. The data is used in the process to generate the information which would be checked, validated and used for decision making. The decision is then communicated. The process is executed through the basic steps such as receiving the input, measuring the input, analysing the document, performing, processing, recording, accessing data, producing the results and communicating them. Basic elements of business process are: Motivation to perform, Data gathering, processing and storing, Information processing, Checking, validating and control, Decision making, Communication.

All these relate to human initiative. A business process in any area of the business organization performs through basic steps, such as, receive input, measure, analyze, document, perform, process, record / store, access, produce and communicate. These steps are performed a number of times across the execution process. When the process is performed, it consumes resources and time. The re-engineering approach attempts to eliminate or shorten the steps so that resource consumption is reduced and time of process execution is shortened. It eliminates redundancy by eliminating the steps, which do not contribute, to the value customer is looking for. A business process defined for re-engineering has a clear cut start and end, resulting into a business result. In organization, there are long Page 1 of 16

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processes and short processes. There are critical processes and not so critical processes. The critical business processes are those, which contribute to the value significantly. While the non-critical processes do not contribute much to the value, the customer is looking for. For example, the process of receiving a visitor in the organization could be considered as noncritical. But the process of new product development from the concept to the prototype is critical as it is expected to contribute high value to the customer. If the external customer focus is taken as a criterion for process selection, then all the processes which generate and add value to the customer are called the value stream processes. The value stream processes are critical and become the immediate candidates for reengineering. The other processes in the organization contribute to the overheads of performing the business function. For example, the processes involving attendance, leave, payment of wages, security, travelling and accounting are not value stream processes as the resources employed in them do not create a value or improve a value to the customer. Such processes are a second priority as far as re-engineering is concerned. Every process is made of a series of activities. In each activity some work is done which produces some result for processing into the next activity. If the work done under any activity is analyzed, it will be seen that the people are moving papers and products to achieve some result. In the process they collect the information for decision making and then carry out a physical activity of pushing the product or the output using the paper for record, document and communication.

2. Explain the control issues in management information systems. Control procedures must be set up to ensure that information is correct and relevant an institution's MIS should be designed to achieve the following goals: Enhance communication among employees, Deliver complex material throughout the institution, Page 2 of 16

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Provide an objective system for recording and aggregating information. Management Information Systems 2 Comptroller's Handbook Reduce expenses related to labor-intensive manual activities, Support the organization's strategic goals and direction. MIS is a critical component of the institution's overall risk management strategy. MIS supports management's ability to perform such reviews. MIS should be used to recognize, monitor, measure, limit, and manage risks. Risk management involves four main elements: Policies or practices, Operational processes, Staff and management, Feedback devices. Frequently, operational processes and feedback devices are intertwined and cannot easily be viewed separately. The most efficient and useable MIS should be both operational and informational. As such, management can use MIS to measure performance, manage resources, and help an institution comply with regulatory requirements. One example of this would be the managing and reporting of loans to insiders. MIS can also be used by management to provide feedback on the effectiveness of risk controls. Controls are developed to support the proper management of risk through the institution's policies or practices, operational processes, and the assignment of duties and responsibilities to staff and managers. Comptroller's Handbook 3 Management Information Systems Technology advances have increased both the availability and volume of information management and the directors have available for both planning and decision making. Correspondingly, technology also increases the potential for inaccurate reporting and flawed decision making. Because data can be extracted from many financial and transaction systems, appropriate Page 3 of 16

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control procedures must be set up to ensure that information is correct and relevant. In addition, since MIS often originates from multiple equipment platforms including mainframes, minicomputers, and microcomputers, controls must ensure that systems on smaller computers have processing controls that are as well defined and as effective as those commonly found on the traditionally larger mainframe systems. All institutions must set up a framework of sound fundamental principles that identify risk, establish controls, and provide for effective MIS review and monitoring systems throughout the organization. Commonly, an organization may choose to establish and express these sound principles in writing. The OCC fully endorses and supports placing these principles in writing to enhance effective communications throughout the institution. If however, management follows sound fundamental principles and governs the risk in the MIS Review area, a written policy is not required by the OCC. If sound principles are not effectively practiced, the OCC may require management to establish written MIS policies to formally communicate risk parameters and controls in this area. Sound fundamental principles for MIS review include proper internal controls, operating procedures and safeguards, and audit coverage.

3. Discuss the function for manager. A manager's most basic responsibility is to focus people toward performance of work activities to achieve desired outcomes Planning Managers engage in a variety of planning activities that occur over short- medium and long-term periods. Driven in part by the need to respond to competition, the changing environment, and customer demands, managers develop the organizations mission: goals and the means to accomplish them. Planning usually refers to both the specific of goals and the blueprint for achieving them. It can occur at the individual, group, organizational, or extraorganizational level. Managers may engage in strategic, tactical, or Page 4 of 16

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operational planning. They also engage in decision making, in which they allocate resources and act as negotiators, problem solvers, change agents, and disturbance handlers. Organizing Managers must structure their organization and coordinate the organizations resources to accomplish its goals. Organizing generally means establishing a formal reporting structure and a system of accountability among workers; it means forming employees into meaningful work groups with appropriate supervision. Defining the hierarchy of authority determining the location of decision making, and providing for coordination all contribute to the organizing process. First-line supervisors and middle managers generally establish a network of contacts within and even outside the organization to gather information. The manager may use interactions with coworkers or colleagues in other organizations to improve their job performance. Managers at all levels attempt to build effective work teams by encouraging cooperation and handling conflict that arises. Managing work groups generally calls for the open exchange of information and ideas. Managers and workers may jointly develop group goals congruent with organizational goals and orchestrate collaborative activities. Increasingly managers must supervise multicultural teams of workers; managing these heterogeneous groups requires special information about the impact of cultural differences on job performance and the techniques for handling them. Leading Leading generally refers to taking actions that direct and motivate employees to accomplish personal and organizational goals. Top executives, middle managers, and first-line supervisor help subordinates develop the skills, knowledge, materials, equipment, and time to perform their jobs. They offer guidance to subordinates about the best way to perform various job related activities. Managers also evaluate their subordinates, and sometimes even peers and superiors, as part of their leadership responsibilities. Page 5 of 16

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The manager acquires information about how individuals view the goals the manager has set and seeks information about what would encourage subordinates to accept these goal and work hard to achieve them. What information does a manager need to handle the problem of a poorly performing worker? The manager might need data about the employees skill level and attitude, the jobs requirements, and any job-related goals set. The manager might also need information about unusual factors, such as family illness or defective equipment that might have affected the workers performance. The manager might also need information about training programs in which the worker has participated. Subordinates also acquire information about how the manager perceives their efforts and adjust their performance and priorities accordingly. In many organizations, formal human resource management systems provide mechanisms for this feedback. Controlling Ensuring Managers must also monitor the quality and impact of managerial actions. Controlling means that performance meets established standards, that workers activities occur as planned, and that the organization proceeds toward its established goals. Controlling requires comparative information about the optimal way to implement organizational processes and their actual implementation. In the control process, managers establish standards and methods for measuring performance, assess performance, and then compare performance with the standards. They require information about the organizations functioning to help them anticipate and handle organizational problems and challenges. Managers commonly use information provided in budgets and financial controls to guide and constrain organizational activities. They also use cost information to maintain profitability. Executives at Russell Reynolds Associates, Inc., an executive search firm with offices worldwide, determined that top management required consistent and more detailed information from all offices. The director of international finance there led a design project that resulted in standard accounting procedures that conformed to USA, and international regulations.

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All managers at all levels of every organization perform these functions, but the amount of time a manager spends on each one depends on both the level of management and the specific organization. Some of these functions include: Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for example, that the organization's goal is to improve company sales. The manager first needs to decide which steps are necessary to accomplish that goal. These steps may include increasing advertising, inventory, and sales staff. These necessary steps are developed into a plan. When the plan is in place, the manager can follow it to accomplish the goal of improving company sales. Organizing: After a plan is in place, a manager needs to organize her team and materials according to her plan. Assigning work and granting authority are two important elements of organizing. Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing by recruiting, selecting, training, and developing employees. A manager in a large organization often works with the company's human resources department to accomplish this goal. Leading: A manager needs to do more than just plan, organize, and staff his team to achieve a goal. He must also lead. Leading involves motivating, communicating, guiding, and encouraging. It requires the manager to coach, assist, and problem solve with employees. Controlling: After the other elements are in place, a manager's job is not finished. He needs to continuously check results against goals and take any corrective actions necessary to make sure that his area's plans remain on track.

4. Describe business plan Vs MIS plan Many corporations that installed the most advanced computer technology have found that the new capabilities have also forced them to make Page 7 of 16

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further changes--at a pace faster than desired. A fast, sophisticated tool can let people recognize, understand and fix problems, but it can also create other problems. Corporations, some observers say, must implement an enterprise model capable of managing change and forecasting the impact of anticipated problems on a business. MIS goals and objectives: It is necessary to develop the goals and objectives for the MIS which will support the business goals. The MIS goals and objectives will consider management philosophy, policy constraints, business risks, internal and external environment of the organization and the business. The goals and the objectives of the MIS would be so stated that they can be measured. The typical statements of the goals are as under:

Provide on-line information on the stocks, markets and the accounts balances, The query processing should not exceed more than three seconds, The focus of the system will be on the end user computing and access facilities, Information support will be the first in the strategic areas of management.

Table differentiating between Business Plan versus MIS Plan as below:

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MCA 4th Sem Assignments Business Plan

Management of Information System-MC0076 MIS Plan Management information system, objectives, consistent to the business goals and objectives. Information strategy for the business plan implementation playing a supportive role. Architecture of the Management Information system to support decisions. System development schedule, matching the plan execution Hardware and software plan for the procurement and the implementation.

Business goals and objectives.

Business plan and strategy

Strategy planning and decisions. Management Plan for execution and control. Operation plan for the execution.

Such statements of the goals and objectives enable the designer to set the direction and design implementation strategies for the MIS. Strategy for the plan achievement: The designer has to take a number of strategic decisions for the achievement of the MIS goals and objectives. They are: a. b. Development strategy: An online, a batch, a real time. System Development Strategy

: An approach to the system development Operational versus Functional; Accounting versus Analysis; Database versus Conventional Approach;

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Distributed versus Decentralized processing; one Database versus Multiple database SSAD vs. OOT. c. Resource for System Development: In-house versus external, customized development versus the use of packages. . 5. What are the different classes of information? In order to obtain useful information for your assignment you need to identify what kind of information you need. Different kinds of information can be found in different types of resources. The kind of information needed will then determine which resource is the most appropriate. Types of Information: Different sorts of questions require different types of information to answer. In order to gather evidence to support an argument, you first need an idea of what types of information are suitable. You can gain a sense of which types of information are appropriate for your project by answering the questions in this section. Contents: What is my assignment and what are my opportunities for research?

In order to research effectively you need a solid understanding of what sort of evidence your assignment requires and what is available. Which academic disciplines does my research touch upon?

Research papers are usually written with the goal of contributing to the dialogue of a particular discipline. To do so, a paper must follow the standards of research and evidence for that discipline. Description for different types of Information as follows:

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Primary, Secondary and Tertiary Information: Most information is generally divided into three main categories: Primary, Secondary and . Primary Information: Original material that has not been interpreted or analysied. Examples: Statistics, Research articles, Blogs, Websites Secondary Material: Created from primary material, interpreting original material. Examples: Textbooks, Review articles Tertiary Material: Acts as a tool in understanding and locating information. Examples: Databases, Subject Gateways, Dictionaries, Bibliographies Different types of Information Systems: Information systems are constantly changing and evolving as technology continues to grow. Very importantly the information systems described below are not mutually exclusive and some (especially Expert Systems, Management Information Systems and Executive Information Systems are can be seen as a subset of Decision Support Systems). However these examples are not the only overlaps and the divions of these information systems will change over time. At present there are five main types: Transaction Processing Systems (TPS), Decision Support Systems (DSS), Expert Information Systems (EIS), Management Information Systems (MIS), Office Automation Systems (OAS).

6. Explain the various cognitive style as identified by James McKinney and Peter Keen. Page 11 of 16

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Decision making is a cognitive activity, as are other phenomena such as learning or understanding language. In general, human cognition is human information processing. People display distinct cognitive styles in the ways they gather and evaluate information. In their analysis of how managers minds work, James McKinney and Peter Keen have classified the information related modes of thought along two dimensions: information gathering and information evaluation. The information-gathering: Dimension focuses on perception, on the way a person organizes the verbal and visual stimuli he or she encounters. Perceptive individuals bring to bear concepts ("precepts") to filter incoming stimuli; from the framework of these concepts, they look for specific conformities with or deviations from the concepts they have already formed. Receptive decision makers focus on details rather than on a pattern and attempt to form a general picture of the situation from these details (a characteristic of inductive thinking). Information evaluation: Relates to the way an individual brings information to bear in the process of decision making. A systematic (or analytic) decision maker approaches a problem by structuring it and applying a well-defined method expected to lead to a solution. An intuitive individual applies heuristics (rules of thumb) and shortcuts and uses trial and error to find a solution; these people are more willing to go with their "gut feeling" about the problem. McKinney and Keen stress that all of these modes of thought are appropriate in certain situations, and some combinations of them are particularly fit in certain occupations. While the importance of individual cognitive style in the design of MIS has been contested, the fact that significant differences exist among individual decision-making processes should inform the way systems are designed. In particular, developers of information systems tend to be systematic individuals and thus tend to assume that the users are (or should Page 12 of 16

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be) the same. End-user system development and a number of available packages have addressed the necds of intuitive (or heuristic) decision making. These systems allow the user to play out a variety of scenarios; the user is able to identify and test new alternatives. Such systems should not impose a preset processing order, but rather allow the user the freedom to set this order as he or she is working. It is desirable that the system allow an easy shift back and forth between summarized and detailed data (needed by receptive individuals). A variety of tabular and graphical output formats should also be available. Much of this wish list is now fulfilled in welldesigned DSS and EIS.

7. Bring out the table that indicate the various classes of information There are three types of information systems projects: manual, manual to automated, and re-automation. The last, re-automation, have four subtypes: system rewrite, system redesign and redevelopment, system enhancement, and system maintenance. Each of these involves different, and yet similar, work. The work is similar in that the development activities which are involved in each follow the same general phases and approach. They are different in that the environment that the analyst must examine has substantially different characteristics. This chapter examines each of the various types of analysis projects, along with a brief discussion of the Gibson-Nolan electronic data processing (EDP) stages of growth theory and its impact on the analysis process. In addition there is a brief discussion of the Anthony model of organizational structure. A definition Personal Computer (PC) - also known as microcomputers or workstations, by the model name of the specific vendor (i.e. Apple [1], Macintosh [2], or PS/2 [3]) or by the brand name, model and speed of the processor (i.e. Pentium, Intel or 486/33 [4]) Any combination of processor, Page 13 of 16

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input device and output device designed for use by a single individual. Personal computers may also be called workstations. Personal computers may have a character orientation, a graphical orientation, may be connected to other personal computers, or may operate in a stand alone mode, and may or may not have connectivity to a mainframe. Personal computer software is normally characterized by an operating system which provides basic file access, management and display services and well as application scheduling and management. Reasons for Initiating Information Systems Analysis Projects As part of a program of System Modernization. A change in the basic aspects of the user's functional role A change in company strategic objectives A need for increased performance, greater or different functionality, different operating characteristics, or increased user friendliness from the automated systems A need for more direct and immediate access to the firm's automated files. A need to upgrade the system to take advantage of more current technology. A need to clean up the system

The Three Types of Information Systems Analysis Projects The scope and magnitude of the functional and procedural changes may be fairly narrow or wide ranging. In some cases, aside from re-coding the system, there may be no changes in functionality at all. Given the variety of reasons for a project being undertaken, the starting point may also be quite different from project to project. These starting points reflect the differences in current user processing environments and the current level of user automation. Because of these differences in Page 14 of 16

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current user processing environments and user automation, information systems projects can be categorized into three types. 1 2 3 4 a) b) c) d) Manual, Manual to automated, Re-automation, The last, re-automation, has four subtypes. System rewrite, System redesign and redevelopment, System enhancement, System maintenance.

From an analysis perspective, each of these types of projects involves different, and yet similar, work. The work is similar in that the development activity.

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