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Management Information System

BBA (205)


WINTER 2014-2015


ROLL NO. : - 1405010610

Q1. Define MIS. Describe the characteristics and functions MIS.

Ans: Meaning MIS (Management Information System)

Management Information System (MIS) is an integrated system which

provides information support for decision making in organisations.
There may be various definitions of MIS, but you can see all of them
defining MIS as a decision making methodology which helps in
control. MIS as a method of generating information which is used by
management or organizations for decision making control of activities
and operations etc.

Characteristics of MIS

1. It supports transaction handling and record keeping.

2. It is also called integrated Database Management System
which supports in major functional areas.
3. It provides operational, tactical, and strategic level managers
with easy access to timely and for the most part, structured
4. It supports decision-making which is a vital role of MIS.
5. It is flexible which is needed to adapt to the changing needs
of the organization.
6. MIS eliminates redundant data.
Functions of MIS

1. Data Processing: Gathering, storage, transmission,

processing and getting output of the data. Making the data
into information is a major task.
2. Prediction: Prediction is based on the historical data by
applying the prior knowledge methodology, by using modern
mathematics, statistics or simulating. Prior knowledge varies
on the application and with different departments.
3. Planning: Planning reports are produced based on the
enterprise restrictions on the companies and helps in
planning each functional department to work reasonably.
4. Control: MIS helps in monitoring the operations, and
inspects the plans. It contains in the differences between
operation and plan with respect to data belonging to different
functional departments. It controls the timely actions of the
plans and analyses the reasons for the differences between
the operations and the plans. Thereby, helps managers to
accomplish their decision making task successfully.
5. Assistance: It stores related problems and frequently used
information to apply them for relative economic benefits.
Through this it can derive instant answer to the related
6. Database: This is the most important function of MIS. All the
information needs a storage space which can be accessed
without causing without causing any anomalies in the data.
Database avoids the duplication of data and thereby reduces
redundancy and hence consistency will be increased.

Q2. What do you mean by ERP? Describe the situation before and
after the existence of ERP. Explain the challenge involve in ERP.

Ans: Definition of ERP (Enterprise Resource Planning)

It is integrated cross functional software that reengineers

manufacturing, distribution, finance, human resources and other
basic business processes of a company to improve its efficiency,
ability and profitability. ERP is built with a vision to providing
businesses with an integrated information system. ERP software
consists of integrated modules that give a company a real time cross
functional view of its core business processes such as population,
order processing and sales and its resources such as cash, raw
materials, production capacity and people.

Situation Before and After ERP


The concept of ERP systems, departments within an

organization department, the payroll department, and the
financial department would have their own computer systems.
The payroll department would typically calculate and store
paycheck information.


ERP software, among other things, combined the data of

formerly separate applications. This made the worry of keeping
numbers in synchronization across multiple systems
disappears. It standardizer and reduced the number of software
specialties required within large organizations.

Challenges in ERP

1. Personal turnover companies can employ new managers,

lacking education in the company’s ERP system, providing
changes in business practices that are out of
synchronization with the best utilization of the company’s
selected ERP.
2. Customization of the ERP software is limited. Some
customization may involve changing of the ERP software
structure which is usually not allowed.
3. Re-engineering of business processes to fit the “industry
standard” prescribed by the ERP system may lead to a loss
of competitive advantage.
4. ERP system can be very expensive to install often ranging
from 30,000 US Dollars to 500,000,000 US Dollars for
multinational companies.
5. ERP vendor can charge sums of money for annual license
renewal that is unrelated to the size of the company using
the ERP or its profitability.
6. Systems are too restrictive and do not allow much flexible in
implementing and usage.
7. The systems can suffer from the “weakest link” problem-
inefficiency in one department or in one of the partner may
affect other participants.

Q3. Explain the applications and systems used in E-communication.

Ans: Applications

E-communication system is a backbone of all processes whose role

is to be downloaded on access by the customer. It provides facilities
to store delete and search mails, supporting the references need of
the user. This system is popular when one to one communication is
needed. PC network is chosen or communication, and accessing
databases and processing and projecting them on the screen for
common viewing. This system is useful to solve some problems and
communication within small group.


E-communication systems are capable of sending messages,

documents, and files in any format over Internet. The communication
could be online in offline mode and online in real time mode. Portal is
web-based interface on an integrated internet/intranet/extranet
platform allowing customers to use applications and other services. It
provides secure access to all users and consumers to search for
information, analyses the situation and communicate.
Q4. There is an information explosion in today’s society. There are lot
of advantages of DBMS like proper maintenance of the data and
maintaining security. Explain the proper the data transition using
diagram and an example of your own.

Ans: Diagram of data transition

Process of data transition

1. Data represents a fact or statement of event without relation to

other things.
Example: It is raining
2. Information embodies the understanding of a relationship of some
sort, possibly cause and effect.
Example: The temperature dropped 15 degrees and then it
started raining.
3. Knowledge represents a pattern that connects and generally
provides a high level of what is described or what will happen next.
Example: If the humidity is very high and the temperature drops
substantially, the atmosphere is often unlikely to be able to hold
the moisture, so it rains.
4. Wisdom embodies more of an understanding of the fundamental
principles embodies within the knowledge that are essentially the
basis for the knowledge being what it is. Wisdom is essentially
Example: It rains because it rains. And this encompasses an
understanding of all the interaction that happens between raining,
evaporation, air currents, temperature gradients, changes, and

Process of DBMS (Database Management System)

1. Distributed query processing:

Distribution query processing means the ability to access
remote sites and transmit sites and transmit queries and data to
the various sites via the communication network.
2. Data tracing:
DDBMS should have the ability to keep track of the data
distribution, fragmentation and replication by maintaining
DDBMS catalog.
3. Distributed transaction management:
In DDBMS transactions that access data from more than one
site, synchronize the access to distributed data and maintain
integrity of the overall database.
4. Distributed database recovery:
The ability to recover from individual site crashes and from new
types of failures.
5. Security:
It must be executed with the proper management of the security
of the data and the authorization/access privileges of the users.
6. Distributed directory management:
A directory contains information about data in the database.
The directory may be global for the entire Distributed database,
or local for each site. The placement and distribution are design
and policy issues.

Q5. There are two investment plans in the market whose details are
given below based on which you need to decide which investment
plan you need to select. Suggest which investment plan you prefer.

Particular Plan A Plan B

Investment in Rs. million 3 2.7
Saving/gain per year in Rs. Million 1.0 0.75
No. of years saving or gain would occur 5 5
Discount Rate 12% 12%

Ans: Plan A

1+0.12 −5
PV= 1.0[1-[1 +[ ] ] =0.6
Plan B

1+0.12 −5
PV= 0.75[1-[1 +[ ] ] =0.00
Since Plan A has more NVP we should select plan A. Using these
concepts of the present value of future cash, a Decision Support
System can build considering the following factors:

 The number of investment proposals.

 Differential investments.
 Different cash inflow of savings.
 Different criteria for selection, i.e., the payback period, the rate
of return and the internal rate of return.
 Maximising the return by allowing limited funds to the several
investment proposals.

So, Plan A is better than Plan B.

Q6. Write short notes on the following:

(a) Transition Processing System (TPS)
(b) Knowledge Based System (KBS)

Ans: Transaction Processing System (TPS)

TPS may further be classified as online systems or batch systems. In

online systems there is direct interaction of the operator and the TPS
system. In batch system activities of the same type are batched into
groups and then processed. TPS process transaction very fast due to
the virtual transaction processing. To maximize efficiency of the
transaction, TPS interfaces consider identical data for every
transaction, irrespective of the customer. TPS is capable enough to
restrict the access to those who lack the skills of controlling the

Knowledge Based System (KBS)

KBS are the systems based on knowledge base. Knowledge base is

the database maintained for knowledge management which provides
the means for data collections, organization and retrieval of
knowledge. The knowledge management manages the domain where
it creates and enables an organization for adopting of insights and
experiences. KBS refers to a system of data and information used for
decision making. The system is automated to work on the knowledge
based data and information required in a particular domain of
management activity.