Master of Business Administration- MBA Semester 2

MB0047 –Management Information System
Assignment Set – 2
1. How hardware & software support in various MIS activities of the organization? Explain the transaction stages from manual system to automated systems? Ans. Hardware support for MIS Generally hardware in the form of personal computers and peripherals like printers, fax machines, copier, scanners etc are used in organization to support various MIS activities of the organization. Advantages of a PC : Advantages a personal computer offers are – a) Speed – A PC can process data at a very high speed. It can process millions of instructions within fraction of seconds. b) Storage – A PC can store large quantity of data in a small space. It eliminates the need of storing the conventional office flat files and box files which requires lots of space. The storage system in a PC is such that the information can be transferred from place to another place in electronic form. c) Communication – A PC on the network can offer great support as a communicator in communicating information in the forms of text and images. Today a PC with internet is used as a powerful tool of communication for every business activity. 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. It is possible to obtain mathematical results correct up to a great degree of accuracy. e) Conferencing – A PC with internet offers facility of video conferencing worldwide. Business people across the globe travel a lot to meet their business partner, colleagues, and customers etc to discuss about business activities. By video conferencing inconvenience of traveling can be avoided. A block diagram of a computer may be represented as

Input unit is used to give input to the processor. Examples of input unit – Keyboard, scanner, mouse, bar code reader etc. A processor refers to unit which processes the input received the way it has been instructed. In a computer the processor is the CPU – Central Processing Unit. It does all mathematical calculations, logical tasks, storing details in the memory etc. Output unit is used to give output s from the computer. Examples of output unit – Monitor, printer, speakers etc.

rejection is communicated instantaneously to the customer. These enabling capabilities of technology have given rise to four business models that together work in an E enterprise organization. It also provides email and other communication capabilities to plan. Internet has enabled organizations to change their business process and practices. 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. and provide access to everybody from anywhere. track. These basic capabilities of Internet have given rise to number of business models. virtual and universal standards of Internet technology make it a driving force to change conventional business model to E business enterprise model. and is a resident on the network. facilitate communication. information can flow seamlessly from any location to any other location.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. Such order is then placed directly on the order board for scheduling and execution. product information is available on an organization website which also has a feature of order placement. For example. An order placed is processed at the backend and status of acceptance. interpret and use rules and guidelines for decision-making. Some of them are given in Table . monitor and control the business operations through the workers located anywhere. It is capable of linking to disparate systems such as logistics. data acquisition and radio frequency used systems and so on. Essentially Internet and networks enable integration of information. its sending and storing. It has dramatically reduced cost of data and information processing. Low cost connectivity physical. Information and information products are available in electronic media. Once everyone is connected electronically. And software solutions make them faster and self-reliant as they can analyze data information. commodities and services.

transparent and cheaper. The technology adds speed and intelligence in the business process improving quality of service to the customer.The Internet and networks provide platform and various capabilities whereby communication. resource and enable faster decision making. The business process of serving the customer to offer goods. • 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 . products or services is made up of the following components. collaboration. and conversion has become significantly faster. These technologies help to save time.

We go into details of each one of them. Explain the various behavioural factors of management organization? As per Porter. improved customer loyalty and retention and better quality offer to the customer. Change in interpersonal relationships 4. Four major applications mentioned earlier make this achievement possible. Uncertainty or unfamiliarity or misinformation 7. 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. Trading. User resistance is a major behavioral factor associated with the adoption of new systems. Learning. Change in job content 2. how can performance of individual corporations be determined? Ans: Management organizations: An organization is a structure that uses the resources from the environment like manpower. Further. competitive advantage. Job security The major behavioral factors are a) Decision styles symbolic processing of AI is heuristic; DSS and ANN are analytic . Change in decision making approach 6. Loss of power 5. It provides important strategic. Auctioning • Manufacturing. the technology is flexible and capable of handling any business models such as: • Retailing. The following are compiled by Jiang et al. Subcontracting • Servicing. It constitutes the rules. A transformation had to necessarily go through the following stages a) Appraisal of the procedures b) Types of documents c) Storage systems d) Formulations and coding e) Verification and validation f) Review g) Documentation 2. Training. responsibilities and procedures that are adopted by the organization. Distribution & Selling • Outsourcing. raw materials. Loss of status 3.The entire process in parts or full can be handled through these technologies and software solutions. (2000) ; Reasons that employees resist new systems: 1. Consulting The resultant effect is the reduction in cost of business operations. capital and returns the output like products and services to the environment. 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. policies.

or reducing the edge of. e) Resistance to change – can be strong in MSS because the impacts may be significant.b) Need for explanation – ES provides explanation. Competitive strategy is an enterprise's plan for achieving sustainable competitive advantage over. 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. . 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; b) The bargaining power of buyer; c) The threat of new entrants; d) The threat of substitute products; And e) Rivalry among existing firms. Another alternative sees competition as a process linked to innovation in product. Porter's classic diagram representing these forces is indicated below. ANN does not. Performance of individual corporations: Out of many possible interpretations of a strategy an organization adopts in business. and defending them against imitation by other firms. Strategic information systems theory is concerned with the use of information technology to support or sharpen an enterprise's competitive strategy. its adversaries. Over expectation was observed in most early intelligent systems. Competition means cultivating unique strengths and capabilities. DSS may provide partial explanation. it is found that a majority is concerned with competition between corporations. market. or technology.

the geographic areas in which it sells. Under Porter's framework. i. the distribution channels it employs.e. the types of buyers it serves. They are: a) Cost leadership; b) Differentiation; c) Cost focus; And d) Focused differentiation. the range of product varieties it offers. Another important consideration in positioning is 'competitive scope'. and the array of related industries in which it competes. Porter's representation of them is indicated below .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. enterprises have four generic strategies available to them whereby they can attain above average performance.

warranties. To gain competitive advantage over its rivals. or perform activities in a unique way that creates greater buyer value and commands a premium price (differentiation). transport) ; And 4. Place (channels. coverage. enlarging the system scope and meeting the varying information needs. scientists in the laboratory designing products or processes. 3. returns) ; 2. publicity). and treasurers raising capital. Price (list. sizes. quoted in Wiseman 1988many differentiation bases can be classified as 4 P’s as given below: 1. and formalization in the system and procedures which . Development of Information Systems a) Development and Implementation of the MIS Once the plan of MIS is made. The choice of the system or the subsystem depends on its position in the total MIS plan. Product (quality. style. The various attributes listed above can be sharpened the firms product by the support of a suitable information technology. payment period. features. brand name. competitive advantage grows out of the way an enterprise organizes and performs discrete activities. options. The ultimate value an enterprise creates is measured by the amount customers are willing to pay for its product or services. Compare various types of development aspect of Information System? Explain the various stages of SDLC? Ans. 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. Promotion (advertising. sales promotion. Determining the position of the system in the MIS is easy. allowances. The real problem is the degree of structure. the development of the MIS calls for determining the strategy of development. credit terms) ; 3. but perform activities more efficiently than its competitors (lower cost). inventory. a firm must either provide comparable value to the customer. personal selling. By performing these activities. the size of the system. The designer first develops systems independently and starts integrating them with other systems. A firm is profitable if this value exceeds the collective cost of performing all of the required activities. service technicians performing repairs.According to Porter. As per Borden 1964. discounts. As discussed earlier. the plan consists of various systems and subsystems. enterprises create value for their customers. locations. packaging. services. the user's understanding of the systems and the complexity and its interface with other systems. The operations of any enterprise can be divided into a series of activities such as salespeople making sales calls.

decision making and the understanding of the overall business activity. of the state of art. Such systems. This process. have a life and they can be developed in a systematic manner. . questioning the information needs. the development strategy is Prototyping of the System. and assess the problems of development and implementation. for significant modification. as a corporate resource. For example. that is. if any. trying it out on a smaller scale with respect to the data and the complexity. a definite set of outputs in terms of the contents and formats. of all personnel. This may call upon changing the prototype of the system. and they are very much structured and rule based. These details more or less remain static from the day the system emerges and remains in that static mode for a long time.determine the timing and duration of development of the system. helps considerably. Their emergence may be sudden or may be a part of the business need. the designer's task becomes difficult. The designer then takes steps to remove the inadequacies. which is used in accounts and inventory management. The development becomes a method of approach with certainty in input process and outputs. b) Prototype Approach When the system is complex. it is observed that the user's and the designer's interaction is smooth. In the prototyping approach. the departmental. developing methodology. and all have to contribute as per the designated role by the designer to fulfil the corporate information needs. and can be reviewed after a year or two. therefore. and their needs are clearly understood and respected mutually. ensuring that it satisfies the needs of the users. inadequacies in the prototype vis-à-vis Fulfilment of the information needs. greater is the stabilization of the rules. experience. in overcoming the problem of changing the attitudes of the multiple users and the originators of the data. The qualification. identifies the problem areas. They have 100% clarity of inputs and their sources. 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. Bringing the multiple users on the same platform and changing their attitudes toward information. and an understanding of the corporate business. knowledge. 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. to appreciate that the information is a corporate resource. the procedures. streamlining the operational systems and procedures and move user interaction. is the managerial task of the system designer. When it comes to information the functional. It requires. Here. a lot of input data comes from the purchase department. The attitudes of various users and their role as the originators of the data need to be developed with a high degree of positivism. c) Life Cycle Approach There are many systems or subsystems in the MIS which have a life cycle. therefore. they have birth and death. when there are multiple users of the same system and the inputs they use are used by some other users as well. Prototyping is a process of progressively ascertaining the information needs. Higher the degree of structuredness and formalization. the personal boundaries do not exist.

It brings about organizational change; it affects people and changes their work style. . These systems have a fairly long duration of survival and they contribute in a big way as sources of data to the Corporate MIS. order processing. Therefore. and so on. In the process of implementation. basic financial accounting. Table below shows the difference between the two approaches helping the designer select an approach. their role is important and needs to be designed from the view point as an interface to the Corporate MIS. d) Implementation of the Management Information System The implementation of the system is a management process. share accounting. the system designer acts as a change agent or a catalyst.Examples of such systems are pay roll. finished goods accounting and dispatching. The process evokes a behaviour response which could be either favorable or unfavorable depending upon the strategy of system implementation.

he is his best guide on the complex path of development. Impress upon the user that the change. Realize that through serving the user. 2. the work design may make the new job impersonal. Conduct periodical user meetings on systems where you get the opportunity to know the on-going difficulties of the users. and a fear complex may get reinforced that the career prospects may be affected. On many occasions. therefore. The designer should not recommend modifications of the needs. He should try to develop suitable design with appropriate technology to meet the information needs. Impress upon the user the global nature of the system design which is required to meet the current and prospective information need. 16. Ensure that he appreciates that his commitments contribute largely to the quality of the information and successful implementation of the system. The user of the system has a certain fear complex when a certain cultural work change is occurring. Not to challenge the application of the information in decision making. Not to forget that his role is to offer a service and not to demand terms. The second fear is about the role played by the person in the organization and how the change affects him. The system designer should not question beyond a limit the information need of the user. 12. 16. 6. 13. 9. 4. It is the sole right of the user to use the information the way he thinks proper. the designer should be prepared to change the system specifications or even the design during the course of development.For a successful implementation he has to handle the human factors carefully. 7. There are certain guidelines for the systems designer for successful implementation of the system. which is easily possible in manual system. Not to expect perfect understanding and knowledge from the user as he may be the user of a Non computerized system. Care has to be taken to assure the user that such fears are baseless and the responsibility. 1. rests with the designer. 14. Ensure that the overall system effort has the management's acceptance. the new role may reduce his importance in the organization. 3. the designer should respect the demands of the user. 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. is not as easy in the computer system as it calls for changes in the programs at cost. Impress upon the user that the quality of information depends on the quality of input. so that he is emotionally involved in the process of development. Not to mix up technical needs with the information needs. Impress upon the user that perfect information is nonexistent; His role therefore still has an importance in the organization. unless technically infeasible. 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. Enlist the user's participation from time to time. Hence. In short. 8. 15. 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. 11. Train the user in computer appreciation and systems analysis as his perception of the computerized information system will fall short of the . 10. Ensure that the user makes commitment to all the requirements of the system design specifications. Ensure that the other organization problems are resolved first before the MIS is taken for development. 5.

viz. that is. such as a consultant playing the role of a catalyst. meaning and direction. The first step is unfreezing the organization to make the people more receptive and interested in the change. and eliminating the organizational problems before implementing the system. the application areas of the system within the enterprise and the problems that the system should solve. This itself can be achieved by improving the human factors.. and participation. collection and analysis It is concerned with understanding the mission of the information systems. Many a times. 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. This process is implemented through an external change agent. prototyping. The Lewin's model suggests three steps in this process. . implementation. The significant problem in this task is the resistance to change. where the change is consolidated and equilibrium is reinforced. The resistance can occur due to three reasons. Implementation of the MIS in an organization is a process where organizational transformation takes place. collection and analysis. The second step is choosing a Course of action where the process begins and reaches the desired level of stability. SDLC System development cycle stages are sometimes known as system study. This change can occur in a number of ways. The problem of resistance can be handled through education. They are confronted with the challenging task of creating new systems and planning major changes in the organization. testing and operation. persuasion. design. b) Requirements. and the third step is Refreezing. requirements. The system analyst gives a system development project. The typical breakdown of an information systems life cycle includes a feasibility study. System concepts which are important in developing business information systems expedite problem solving improve the quality of decision making. The system analyst has to do a lot in this connection. the factors internal to the users of information. the factors inherent in the design of the system and the factors arising out of the interaction between the system and its users. and providing incentives to the users.designer's expectation.

It has opened new channels of business as buying and selling can be done on Internet. It is lean in number. 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 and vendors. 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. It is replaced by people organization that is empowered by information and knowledge to perform their role. 4. It has no geographic boundaries as it can extend its operations where Internet works. It enables to reach new markets across the world anywhere due to communication capabilities. vendors; customers transact business anytime from anywhere. flat in structure. E business enterprise is open twenty four hours. application packages. and being independent. wherever necessary. traditional business organization definition has undergone a change where scope of the enterprise now includes other company locations. It is no longer functional. faster communication and effective collaborative working. It has empowered customers and vendors / suppliers through secured access to information to act. 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. faster delivery of goods and services to the customers. The cost of business operations has come down significantly due to the elimination of paper driven processes. E business enterprise is more process driven; Technology enabled and uses its own information and knowledge to perform. They are supported by information systems. broad in scope and a learning organization. The effect of these radical changes is the reduction in administrative and management overheads. reduction in inventory. In E business enterprise traditional people organization based on 'Command Control' principle is absent.c) Design It is concerned with the specification of the information systems structure. . The database design is the design of the database design and the application design is the design of the application programs. managers. There are two types of design: database design and application design. All this is possible due to Internet and web moving traditional paper driven organization to information driven Internet enabled E business enterprise. Implementation alternatives are carefully verifies and compared. e) Implementation It is concerned with the programming of the final operational version of the information system. Internet capabilities have given E business enterprise a cutting edge capability advantage to increase the business value. and decision support systems. product. and project or matrix organization of people but E organization where people work in network environment as a team or work group in virtual mode. business partners.

The enterprise solutions like ERP. The basis of conventional organization design is command & control which is now collaborates & control.In E business enterprise. namely: • Domestic business to global business. efficiency. healthcare are being managed through Internet E banking. The . insurance. CDs. banking. Buying and selling is possible on Internet. Smart card. Hence today's business firm is also called E enterprise or Digital firm. The paradigm shift to E enterprise. E audit. Today most of the business organizations are using Internet technology. SCM. • Enterprise Resource Management to Enterprise Network Management. workflows. competitiveness and profitability. The comparison between conventional Organization design and E enterprise is summarized in Table Comparison between Conventional Design and E Organization In E enterprise. white goods and many such goods are bought and sold on Internet. reporting mechanisms. SCM. network. knowledge bases. & use of Credit cards. and wireless technology for improving the business performance measured in terms of cost. Ecommerce Solutions to reach faraway locations to deliver product and services. decision support. electronically transacted business process. The new channel of business is well known as Ecommerce. work practices. They are using E business . This Change has affected the organization structure. business is conducted electronically. Books. Buyers and sellers through Internet drive the market and Internet based web systems. The business processes across the organization and outside run on E technology platform using digital technology. On the same lines. scope of operations. ATM. E billing. and CRM supported by data warehouse. use digital technologies and work on databases. Has brought four transformations. most of the things are electronic. E money are the examples of the Ecommerce application. automated. and CRM run on Internet (Internet / Extranet) & Wide Area Network (WAN). and knowledge management systems. The business processes are conducted through enterprise software like ERP. These transformations have made conventional organization design obsolete. directories and document repositories. • Manual document driven business process to paperless. and business processes at large. computer. • Industrial manufacturing economy to knowledge based service economy.

Make use of groupware technology on Internet platform for faster response processing. 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. MTTR. It is effectively used for strategic planning for survival and growth. priorities. Another challenge is to convert domestic process design to work for international process. Get rid of rigid established infrastructure such as branch office or zonal office. and firm. This technology offers a solution to communicate. is a reality and is going to increase in number. it is necessary to redesign the organization to realize the benefits of digital firm. guarantees. 5. Operating Level Agreements or OLA(s). there can be no "agreement" between third parties (these agreements are simply a "contract"). In practice. which uses Internet and web technology and uses E business And Ecommerce solutions. responsibilities. etc. Internet and networking technology has thrown another challenge to enlarge the scope of Organization where customers and vendors become part of the organization. It means changing the organization behavior to take competitive advantage of the E business technology. where integration of multinational information systems using different communication standards. Knowledge management system is formally recognized as a part of MIS. Allow people to work from anywhere. however. The role of MIS in E business organization is to deal with changes in global market and enterprises. various data rates. To achieve the said benefits of E business 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. As an example. and collaborate with customers. MIS for E business is different compared to conventional MIS design of an organization. coordinate. may be used by internal groups to support SLA(s). MIS produces more knowledge based products. Automate processes after reengineering the process to cut down process cycle time. This can be a legally binding formal or informal "contract" (see internal department relationships). country specific accounting practices. The last but not the least important is the challenge to organize and implement information architecture and information technology platforms. Each area of service scope should . the term SLA is sometimes used to refer to the contracted delivery time (of the service) or performance. and laws of security are to be adhered strictly. increase in profit and productivity and so on.) A service level agreement (SLA) is a negotiated agreement between two parties where one is the customer and the other is the service provider. considering multiple locations and multiple information needs arising due to global operations of the business into a comprehensive MIS. vendors and business partners. 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:- A service level agreement (frequently abbreviated as SLA) is a part of a service contract where the level of service is formally defined. The SLA records a common understanding about services. 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. The organization structure should be lean and flat.

so that he can effectively measure his internal business performance. 'I had 14 projects last year. operation. performance." which allows customers to be informed what to expect (the minimum). This type of agreement is known as an "input" SLA. If information systems are now providing a service. The "level of service" can also be specified as "target" and "minimum. serviceability. whilst providing a measurable (average) target value that shows the level of organization performance. through a specification (a service-level specification) and using subordinate "objectives" other than those related to the level of service. 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. or other attributes of the service. In some contracts. If the CIO wants to be taken seriously. HR. particularly when it comes to apportioning staff time.have the "level of service" defined. This internal benchmarking can also be used to market test and provide a value comparison between an in-house department and an external service provider. Service-level agreements are. he needs to do what other executives do and have his own business metrics and performance measurements. by their nature. but CIOs generally do not because IT has always been viewed as a cost center. "output" based — the result of the service as received by the customer is the subject of the "agreement. and not how the service provider delivers that service. Other business departments have them. The underlying SLAs should be some sort of a chargeback system with business units.' But there is no real business measurement there. capability. they should set up what is expected and what levels of service the equipment will provide. they say. At a minimum. The first step. The systems department should not only focus on providing better service to the various lines of business but also help businesses operate better. 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. For example. Role of CIO in drafting SLA’S One of the major responsibilities of the CIO is to establish the credibility of the systems organization. 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. SLAs have been used since late 1980s by fixed line telecom operators as part of their contracts with their corporate customers. such as billing. This latter type of requirement is becoming obsolete as organizations become more demanding and shift the delivery methodology risk on to the service provider. as well as the equipment comprising the applications." The (expert) service provider can demonstrate their value by organizing themselves with ingenuity. and develop metrics that track the performance of the information systems staff. the . penalties may be agreed upon in the case of non-compliance of the SLA (but see "internal" customers below). It is important to note that the "agreement" relates to the services the customer receives. Measurements in IT tend to be vague and lacking in context. and knowledge to deliver the service required. Internal departments (such as IT. It sets the expectation on the technical areas of the CIO's operations. perhaps in an innovative way. The SLA may specify the levels of availability. 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. and I did them well. infrastructure. Organizations can also specify the way the service is to be delivered. and networks under the CIO's control. is to implement service level agreements (SLAs) with business units.

Ans. cheating or deceit. There are power cuts and sometimes high voltage serge destroys a sensitive component of the computer. or disposed of. all the components of a system are involved. flammable liquids etc. 6. and CIOs must have a firm handle on how that equipment is being used. Lacking this knowledge. and to encourage their use. etc. More dangerous are the problems which are created by human beings due to the omission. 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. and for companies to spend far too much money on maintaining ailing applications. People. such as network and server uptime. ii) Fraud and unauthorized access: This hazard is due to dishonesty. tornadoes and lightening. how this can help them perform better. Examples are earthquake. The second part of the IT operations equation is computer equipment. and there are other products that can monitor hardware performance. vi) Natural Disasters: Natural disasters are not controllable. 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. lockout or there may be chances of riots in the area. The information systems management also has the job of helping the end users adapt to the changes caused by information systems. floods. A major part of the CIO's job is to make the users aware of the opportunities arising as a result of technical innovations. neglect and incompetence. Case Study: Information system in a restaurant. Case Summary: A waiter takes an order at a table. They are not frequent hazards but if they happen they destroy the things or ruin them. 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. and then enters it online via one of the six terminals located in the restaurant dining room. Most IT organizations do not have any idea of the life cycle of an application – how long they want it to last. and when it needs to be refurbished. replaced. vii) General hazards: this category covers many more hazards which are not covered anywhere and difficult to define and come spontaneously. software and hardware errors course the biggest problem. iv) Fire hazard: it can happen because of electrical short circuits. v) Sabotage and riots: sometimes the employees destroy the computer centre in case of strike. it is easy for applications to linger long after they should be gone. The order is routed to a printer . This can be done through – a) Infiltration and industrial espionage b) Tapping data from communication lines c) Unauthorized browsing through lines by online terminals. and familiarizing them with computers and information systems applications. Sometimes communication channel are busy or noisy. There are software’s to help with the people picture. CIOs need to institute life cycle management with their applications and computer equipment. Finally.staff needs to understand where the service is being used to be properly remunerated or to demonstrate where the value is.

This gives the waiters faster feedback. and relocation analysis are examples of decision-support systems and management information systems. An MIS helps decision making by providing timely. 3. Management information is an important input for efficient performance of various managerial functions at different organization levels. the hotitem printer if it is a hot sandwich or the bar printer if it is a drink. Strategic decisions are characterized by uncertainty. 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. The decisions may be the appropriate preparation area: the cold item printer if it is a salad. personnel and procedures. All potential users were asked to give their impressions and ideas about the various systems available before one was chosen. hardware. database. In the light of the system. whenever an order is voided. Tactical decisions cover both planning and controlling. A customer’s meal check-listing (bill) the items ordered and the respective prices are automatically generated. tactical or technical. software. cost analysis. Explain the probable effects that making the system more formal would have on the customers and the management. Questions to be analysed: 1. annual budgeting. which will be displayed on the dining room terminals when waiters try to order that item. This ordering system eliminates the old three-carboncopy guest check system as well as any problems caused by a waiter’s handwriting. communication networks and data sources that collects. . Management functions include planning. managerial control and operational control? What information would you require to make such decisions? 2. especially if the voids consistently related to food or service. the reasons for the void are keyed in. When the kitchen runs out of a food item. Decision making is the core of management and aims at selecting the best alternative to achieve an objective. Solution: 1. the cooks send out an ‘out of stock’ message. Other system features aid management in the planning and control of their restaurant business. describe the decisions to be made in the area of strategic planning. Sales region analysis. Technical decisions pertain to implementation of specific tasks through appropriate technology. controlling and decision making. There are 3 areas in the organization. A management information system (MIS) is an organized combination of people. This may help later in management decisions. relevant and accurate information to managers. They are strategic. managerial and operational control. transforms and distributes information in an organization. This helps management plan menus according to customers’ tastes. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. allowing planning for tighter cost controls. What would make the system a more complete MIS rather than just doing transaction processing. They are future oriented and relate directly to planning activity. The physical components of an MIS include hardware. The information system facilitates decision making. enabling them to give better service to the customers. In addition. The system also compares the weekly sales totals versus food costs.

and manpower planning. target markets. The managerial control that is middle level also gets customer feedback and is responsible for customer satisfaction. allowing planning for tighter cost controls. order processing. plant scheduling. Helps in planning the menu If the management provides sufficient incentive for efficiency and results to their customers. 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. policies. which is basically displayed on the dining room terminals when waiter tries to order that item. support unstructured decision making. budget forecasting. profit planning. Advantages of an online computer system: 1. tactical or operational information. The information required to make such decision must be such that it highlights the trouble spots and shows the interconnections with the other functions. Transaction processing systems function at the operational level of the organization. Waiters’ handwriting issues 3. operating plan development. the reasons for the void are keyed in which later helps in management decisions. is done. The top level where strategic planning is done compares the weekly sales totals versus food costs. The cooks send ‘out of stock’ message when the kitchen runs out of a food item. 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. Thisbasically gives the waiters faster feedback. The information required to make these decisions can be strategic. Sales figures and percentages item-wise 2. The decisions to be made in the area of managerial control are largely dependent upon the information available to the decision makers. It is also necessary to study the keys to successful Executive Information System (EIS) development and operation. It is basically a middle level where planning of menus is done and whenever an order is voided. Examples of executive support systems include sales trend forecasting. budget forecasting. Eliminates carbon copies 2. Faster feedback helps waiters to service the customers Advantages to management: 3. The item’s ordered list and the respective prices are automatically generated. and use advanced graphics and communications. and securities trading. machine control. enabling them to give better service to the customers. especially if the voids are related to food or service. Executive support systems function at the strategic level. Out-of-stock message 4. The decisions to be made in the area of strategic planning are future oriented and relate directly to planning activity.Strategic decisions are characterized by uncertainty. Cost accounting details 1. Here basically planning for future that is budgets. Decision support systems would also make the . Examples of transaction processing systems include order tracking. The decisions to be made in the area of operational control pertain to implementation of specific tasks through appropriate technology. objectives etc. It must summarize all information relating to the span of control of the manager. 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. compensation.

increasing organizational control. The management system should be an open system and MIS should be so designed that it highlights the critical business. creating a competitive advantage over competition. technological and environmental changes to the concerned level in the management. knowledge will have to be formalized so that machines worldwide have a shared and common understanding of the information provided. levels. encouraging exploration and discovery on the part of the decision maker. and speed to market. 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. the organization can more efficiently exchange information among its functional areas. so that the action can be taken to correct the situation. As the inventory is always entered into the system. and customers. Improving personal efficiency. which may be rapidly changing and not easily specified in advance. revealing new approaches to thinking about the problem space and helping automate the managerial processes would make the system a complete MIS rather than just doing transaction processing. expediting problem solving (speed up the progress of problems solving in an organization). . promoting learning and training. suppliers. and business units. any frauds can be easily taken care of and if anything goes missing then it can be detected through the system. An organization operates in an ever-increasing competitive. facilitating interpersonal communication. To make the system a success. global environment. business units.system a complete MIS as it constitutes a class of computer-based information systems including knowledge-based systems that support decision-making activities. To accomplish these goals. As the transactions are taking place every day. customer service. 3. By making the system more formal. the organization must exchange valuable information across different functions. operational. generating new evidence in support of a decision. Operating in a global environment requires an organization to focus on the efficient execution of its processes. The systems developed will have to be able to handle enormous amounts of information very fast. DSSs serve the management level of the organization and helpnto take decisions.

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