MIS FINAL ASSIGNMENT

OLD CAMPUS - SE AFTERNOON

44

Name: Akasha Shahid

Roll No: BSEF16A019
Name: Alishba Atther
Roll No: BSEF16A020

Bachelor of Software Engineering

Faculty of Computer Science

Punjab University College of Information Technology

May 2020
Question 1: What is management information system? Explain in detail MIS
subsystems.

Introduction
Information system are the collection of people, software, hardware, network components and
data resources which collects and gives output for a specific purpose. Purpose varies from
reporting system to transaction processing system. Each different purpose leads to a new
subsystem which is a subset of larger and bigger system.

Definition
“MIS is a system that provides people either with data or information relating to an
organization’s operations”

Example
Sales and Marketing Systems, Human Resource Management Systems etc
A system is a unit which collects data and return information after processing on data. Similarly,
management information systems collect organization’s data and after processing generates
information related to specific aspect like employee’s data can produce information related to
human resource management that kind of system will be called HRM systems.

MIS subsystems:
Office Information System (OIS)
Transaction Processing System (TPS)
Management Reporting System (MRS)
Decision Support System (DSS)
Expert Systems – ERPs (ES)

Office Information System (OIS):

Office Information System (OIS) include the use of such computer based, office-oriented
technologies as word processing, electronic mail, video teleconferencing.
Transaction Processing System (TPS):
A firm’s Transaction Processing System (TPS) comprises of the routine, day-to-day
transactions, like accounts receivable, accounts payable, inventory control etc. TPS supports the
monitoring, collection, storage, processing, and dissemination of the organization’s basic
business transactions

Management Reporting System:

Management Reporting System (MRS) generates reports better than TPS that are more helpful
for managers to run operations in a better way

Decision Support System (DSS):

Decision Support System (DSS) provides a set of easy to use reporting capabilities so that
people can generate the information they feel will be useful to them for making decisions

Expert Systems – ERPs (ES):

Enterprise Resource Planning Systems use data from all the departments of the
organization. Further, ERP Systems plan and manage all of an organization’s resources. Also, it
includes future planning using forecasting techniques

Conclusion
MIS supports the activities of employees, owners, customers and other key people in the
organization’s environment - either by efficiently processing data to assist with the transaction
work load or by effectively supplying information to authorized people in a timely manner. It has
some particular subsystem which focus on specific niche of management.
Question 2: What are goals of management information system?

Decision making is one of the most important thing to grow the business or to have
competitive advantage therefore MIS main goals are to help an organization executive or
decision makers to make important decisions that can improve the agenda of the organization
and incorporate the organizational structure to have a competitive advantage in the market. MIS
also helps taskforce to do their daily operations successfully.
Information systems perform three vital roles in business firms. They support:
•Business processes and operations
•Business decision making
•Strategic competitive advantage
Followings are the main objectives of a management information system,
1. Data Storage - it is important to store information or processed data for future use.
2. Data Retrieval - the data should be smoothly retrieved from storage devices whenever
needed by different users.
3. Data Propagation - data should be distributed periodically through the organizational
network to its users.
4. A system of efficient and effective planning - MIS controls functions of management to
provide quick and timely information to the management. The process is very effective to
make decisions.
5. An MIS's goals are to incorporate the company's organizational structure and processes in
order to better control the enterprise and maximize the information system's potential for
competitive advantage.
6. Graphical reports - give an idea about the performance of different resources employed
in the organization.
7. Controlling the organization - MIS helps control the organization to provide the latest
information as well as historical data whenever required.
8. Standard and budgeted performance - Through matching actual performance with
standard and budgeted performance, MIS brings variances to management attention that
can be resolved by taking remedial action.
9. MIS provides the notification of the organization's management power to take advantage
of available opportunities.
10. MIS reports on re-production statistics which helps management people to take fruitful
decisions.

The manager's decision-making plays the main role. It lets management people make
decisions based on the information that is being processed. Only input data change, it is an
acceptable repeat to support various forms of decision-making by managers. Automation
capabilities of MIS can improve your companies perform
MIS system helps manager through providing information to find the root problem and
provide solution to it as well. Because MIS gather and store data from different departments, it can
help the staff of each department to get valuable reports. And when decision making is done through
MIS it helps the company to improve its performance and to achieve strategic objectives.
 Question 3: What are different key issues/Challenges in management
information system?

As MIS is the collection of people, software, hardware, network components all these things can
bring different issues for the systems. But as people cover the major portion of MIS people are
involved in development of MIS as well as usage, they have major impact on MIS.

MIS understanding is attained through:

•An understanding of people and their behaviours
•A current knowledge of technology-based disciplines such as computers and communications
•An understanding of planning

Technology:
MIS incorporates a wide variety of knowledge areas includes accounting, finance,
marketing, manufacturing etc.
Technology and technology-related products are evolving at an extremely fast and
unpredictable pace, making it difficult for people who must be up-to-date about
information technology because no one can be proficient in all new technologies

Rapid Evolution:
Many of the terms used in MIS environments are imprecise and controversial because of the
rapid evolution
Body of knowledge in MIS is relatively recent unlike other sound disciplines
No fix guidelines have been established regarding how much to Invest in information
technologies or other areas of MIS
Planning
The fact that MIS is relatively complex area of study raises some points
First, because so many areas of study are involved, MIS professionals need to be
creative enough to identify opportunities in which new technologies can solve old
problems
Second, there is a question of which areas of study are most critical to MIS
professionals, technology or management

Attracting and Retaining Top Talent:

For at least the past couple decades, the growth in technology has outpaced the number of
people entering the field. Over the past seven out of 10 years, IT positions have been in
the top 10 of jobs with the most hiring challenges, as documented by ManpowerGroup.
The professionals most in demand include developers and programmers, database
administrators and IT leaders and managers.
Even as an increasing number of businesses shift to cloud software, the IT shortage
continues to affect businesses. If cloud technology providers have difficulty finding
professionals to support the applications their clients use, the businesses will see issues.
Even with cloud technology, though, many organizations find they still need to have an
MIS specialist on staff to ensure the business meets its goals

So, as mentioned above all of the key issues are related to people. People should evolve their
knowledge as rapidly as MIS are growing. They need to be creative in order to make plan for
complex systems. Top talented people are required in the market but they are less in count as
compared to the demand in the market. Most of the time people building the MIS need to have
diverse knowledge because usually a tech enthusiast is not as good in finance but MIS have
modules for finance in it.
 Q 4: What are different people factors we need to consider in MIS?

People cover a major portion of information system, if we consider the interactions with these
systems people develop these systems, support these systems and later on use those systems. So
it shows that the success and the failure of information system largely depend upon the people
working or somehow using it.

Some of the characteristics of people that effect Information Systems:

Physiological Factors
Ergonomics
Workers Skills and
Abilities User Interfaces
Memory Processes
Learning
Psychological Factors

Physiological Factors
MIS jobs can physically affect people, e.g. a person used to work on input of data can
suffer from eyestrain, headaches, neck and back problems due to long sitting against
display terminals
Worker’s physical workspace can also poorly designed or the lighting factor may disturb
the people
Workspace built in noisy geological area can affect lead to hearing problems and
workspaces made in extremely cold or hot places can make people sick.

Ergonomics: The field that studies computer workspaces and their effects on users is
known as ergonomics
Ergonomics attempts to overcome the problems associated with poorly designed
computer workspaces that causes unnecessary physical and mental stress.

Workers Skills and Abilities

Organizational Behaviour researchers have recognized that many on the job behaviours
are affected by the skills and abilities that worker posses
 An employee capability maybe restricted due to mental or physical limitation for example
some blind employee tend not to work in those project area which need precise or
accurate vision capabilities.

User Interfaces
Many of the interfaces for workers who enter Transaction Processing Data are typically
designed for the lowest capability workers
At McDonalds or KFC, the terminals have special keyboards to facilitate fast and
accurate data entry, e.g. if a customer buys a burger, the clerk have to only press the key
that has a picture of the item the customer ordered, the key with picture of burger

Memory Processes
People differ in both their ability to memorize and in speed which they recall the facts
that are saved to memory. It can be either short term, long term or external memory.

Learning
Acquisition of knowledge or skills through study, experience, or being taught.
How people learn is an important consideration when building or upgrading computer
systems

Psychological Factors
A large number of psychological factors contribute to the success or failure of an Information
Systems:
Perception: People think and perceive differently depending upon their different past
experiences.
Attitudes
Risk Taking Tendencies: Some people avoid taking risk because they don’t feel
comfortable or they may have some kind of fear. While the other one are risk taker who
tend to exploit every opportunity.
Willingness to Change: Some people are rigid and very conservative about their thoughts.
While some are flexible, mold themselves according to the situation or we can say they
go with the flow.
Now we know all these factors can affect the MIS which include physical to psychological
factors and workspaces and environment factors. We can say that people with growth mindset
are best suited for MIS. Growth mindset means people with flexible attitude and who find
opportunity and just jump on it. While some of the things are in the hand of the organization like
workspace environment and trainings for their employees.
 Question 5: What are different needs of people?
Aaccording to Maslow, human beings have different types of needs that can be categorized into
five levels, from the lowest to the highest:
1. Physiological needs
2. Safety needs
3. Love/Belonging needs
4. Esteem needs
5. Self-Actualization needs

According to the theory, only when lower level needs are satisfied, does an individual desire for
higher level needs.

Level 1: Physiological needs:

These are basic needs such as air, water, food etc, without which it is impossible to survive.It
also includes basic needs of clothing and shelter to protect the body from the elements. The need
for sex is also quite a strong need.
Level 2: Safety needs:

When physical needs are satisfied, the person looks to fulfill his security needs.

Safety needs include personal security, financial security, health etc.

Level 3: Love and belonging needs:

After safety needs are satisfied, an individual looks for love and belonging. there is a basic need
to love and to be loved, both sexually and non-sexually by others. Lack of love can lead to
loneliness and depression. Sometimes the need for love even overcomes the physiological and
security needs.

Level 4: Esteem needs:

This includes self-respect and self-esteem. Self esteem is the normal human desire to be accepted
and valued by others. There is a need to engage themselves to gain recognition and have an
activity that gives the person a sense of contribution, to feel accepted and self-valued. These are
split into two types of needs:

Lower self-esteem needs are the need for:

Respect of
others Status
Recognition
Fame
 Prestige

Some higher self-esteem needs are the need for:

Self-respect
Strength
Competence
Mastery
Self-confidence
Independence
Freedom.

All the above levels of needs are called “Deficiency needs”, as a person is motivated to act by
the lack of something that he values.

Level 5: Self-Actualization needs:

This is realizing a person’s full potential. Note that this is not meant in the spiritual perspective
of gaining enlightenment, although it may come down to that for some people. Each person’s
purpose is different, and also this can change as a person matures. Self-actualizing people are
gratified in all their basic needs. Here the person is motivated for personal growth more than
anything else. Here, there is no perceived lack, and hence Maslow calls this “Being-Needs”. The
people who fall in this category are driven by purpose and are devoted to a task “outside
themselves”. They can be particularly talented at what they do.

If we consider it from MIS perspective, we can say that organization can provide the needs on
level 1 and level 2. But other 3 levels are in the hand of the people and their willingness to fulfill
those needs. There are some motivations for each level of need which grow with passage of time
and on the level they currently on.
Question 6: What are types of organizations? How centralized and decentralized
organizations affect MIS design and development?

“Relatively long term, output producing entity that consists of one or more people, has one or
more goals and conducts itself to achieve these goals”

Examples:
General Motors, National Wildlife Foundation, Shaukat Khanam, Nestle etc.

Types of organization:
Profit / Non-Profit Organizations
Public / Private
Centralized / decentralized
Centralized:

Centralization is a business structure in which one individual makes the important decisions
(such as resource allocation) and provides the primary strategic direction for the company.
E.g. Apple
Effect on MIS:
These companies believed in autocratic decision-making policy which carry its on merits and
demerits. For instance, in autocratic decision making we use the potential of only single person
and don’t take benefit of large pool of people and their diverse opinion so our knowledge pool is
restricted and limited in Centralized. While the major merit of it include minimum confusion and
clarity of strategy. MIS demand creative decision making which is most of the time possible with
diverse opinion only. A single person doesn’t know every technology so it’s analysis of
technology for the use in MIS will not be accurate. Unavailability of
Decentralized:
Decentralization is a business structure in which the decision-making is made at various levels of
the organization. Typically, decentralized businesses are divided into smaller segments or groups
in order to make it easier to measure the performance of the company and the individuals within
each of the sub-groups.
Effect on MIS:
Decentralization helps gather larger pool of ideas for planning of information system. It majorly
helps to grow our system creatively. Employees start getting self confidence and ownership of
the company. On the other hand, it may lead to confusion due variety of opinion.
 Question 7: How organizational behavior is important for MIS developers?

Organizational Behavior?
Organizational behavior (OB) is the academic study of the ways people act within groups. Its
principles are applied primarily in attempts to make businesses operate more effectively.

Organizational behavior includes areas of research dedicated to improving job performance,

increasing job satisfaction, promoting innovation, and encouraging leadership. Each of the above
area can be improved through variety of ways but we’ll discuss its importance for MIS developer.

Organization Politics: It can affect the performance of the developer because someone may not
feel comfortable working in the environment where he/she gets criticism just due to politics. It
also affects the team work in the organization, everyone in the team work for individual success.

Leadership: It positively impact the MIS developer as it gives freedom to developer to present
creative and unique idea which may lead to effective decision making and efficient development
of MIS.

Innovation: As we know that technology is rapidly growing and in order to develop an information
system according to current market and technology in the world and to get competitive advantage as
well organization need to promote innovation because it helps the developer to grow their knowledge
in the field of technology and to develop a cutting edge information system.

Job Satisfaction: Job satisfaction can be considered as a need of MIS developer. A satisfied
employee will use full potential for the growth of the information system. Job satisfaction also
eliminates other limiting factors like mental stress and attitude.
 Question 8: What is a system? Explain its components
System: Group of interrelated components with a common goal of accepting inputs and
producing output using transformation process
Example: All information system HRM which collect employee’s data and make performance
reports on that data.
Three basic functions of a system
Input
Processing
Output

System Characteristics:
Subsystem: It’s a component of larger system it’s considered to be a one functional part
of a whole system.
Boundary - the limits of a system
Interface - shared boundary with another system
Open System – connects to (interacts with) other systems, providing input or output
Data - raw facts or observations about business transaction (attributes about an entity - a
person, place, thing or event) for example information of a single employee is a data or a
fact.
Information - processed data that has meaning and usefulness for an end user. For
example, average of all employees is a meaningful information which was get when data
undergo through a process.

Stored facts Presented facts

Inactive (they exist) Active (it enables doing)
Technology based Business based

Gathered from various sources Transformed from data

Types of Knowledge
Explicit
Data, documents, things written down and stored on computers it can read and
change while changing it in the storage device.
Tactical
“How-to” of knowledge, which resides in workers. It can be changed after
training and teaching workers again.
 Question 9: What are different modeling systems? Explain types of models.?
A model is an abstraction of something it represents (some phenomenon), called an entity. For
example, if a model represents a firm, then the firm is an entity.
Types of Models:
1. Physical Models: It is a model that exists in three-dimensional form. For example, clay
model of a new automobile developed by designers.
2. Narrative Models: It is created by verbal or written description. Also, these can be created
anywhere without much resources hence they are most popular.
3. Graphs:
It is usually a two-dimensional diagram. For example, graphs and charts.
4. Mathematical Models: It uses symbolic notations and mathematical equations to represent a
system. It can be represented by 3-D also. Following are the types of mathematical models:
Influence of Time: Static Model does not include time as a variable whereas, Dynamic
Model allows the changes of system attributes to be derived as a function of time.
Degree of Certainty: A probability is a chance of occurring something will happen.
Probabilities ranges from 0 to 1. A model that includes probabilities is called
Probabilistic model, otherwise it is called a Deterministic model.
Ability to Achieve Optimization: Optimizing Model selects the best solution
among the alternatives. A SUB-OPTIMIZING MODEL permits the manager to enter
a set of decisions, once this step is completed the model will project an outcome. It
leaves the decision task on the manager.
Components of MIS Model:
1. Organizational Problem Solvers: Outputs are used by persons who are responsible for
solving the firm’s problems (say managers).
2. Database: Its contents are used by software that produces report as well as mathematical
model.
3. Mathematical Model: It produces information as a simulation of firm’s operation.
4. Report Writing Software: It produces both periodic and special report.
5. Environment: The environment is of great importance to the firm. It is the very reason
of the firm’s existence.
Advantages:
Can be a learning experience.
Provides predictive power.
Less expensive than trial and error method.
Speed allows consideration of more options.

Disadvantages:
Difficult to model a business system.
High degree of mathematical skills required.
 Question 10: What is management? Explain its characteristics in detail.

“Management can be defined as the process of administering and controlling the affairs of
the organization, irrespective of its nature, type, structure and size.”

The main purpose of a management is to maintain an environment where the employees of the
organization can work to achieve organizations objectives efficiently and effectively.
Management acts as a guide to a group of people working in the organization and coordinating
their efforts, towards the attainment of the common objective.
In other words, it is concerned with optimally using 5M’s, i.e. men, machine, material, money
and methods and, this is possible only when their proper direction, coordination and integration
of the processes and activities, to achieve the desired results.

Characteristics of Management

 Universal: All the organizations, whether it is profit-making or not, they require

management, for managing their activities. Hence it is universal in nature.

 Goal Oriented: Every organization is set up with a predetermined objective and management
helps in reaching those goals timely, and smoothly. 
 Continuous Process: It is an ongoing process which tends to persist as long as the
organization exists. It is required in every sphere of the organization whether it is production,
human resource, finance or marketing.

 Multi-dimensional: Management is not confined to the administration of people only, but it
also manages work, processes and operations, which makes it a multi-disciplinary activity.

 Group activity: An organization consists of various members who have different needs,
expectations and beliefs. Every person joins the organization with a different motive, but after
becoming a part of the organization they work for achieving the same goal. It requires
supervision, teamwork and coordination, and in this way, management comes into the picture.

 Dynamic function: An organization exists in a business environment that has various factors
like social, political, legal, technological and economic. A slight change in any of these
factors will affect the organization’s growth and performance. So, to overcome these changes
management formulates strategies and implements them.

 Intangible force: Management can neither be seen nor touched but one can feel its existence,
in the way the organization functions.

Conclusion:
Precisely, all the functions, activities and processes of the organization are interconnected to one
another. And it is the task of the management to bring them together in such a way that they help
in reaching the pre decided results or strategic objective of the company. It should also manage
things effectively and efficiently because it saves resource and help company in getting
competitive edge over other companies through improved performance.
 Question 11: What are different levels of managers?

Managers are organizational members who are responsible for the work performance of other
organizational members. Manger handle the organization resources and make decision through a
formal authority.
In organizations, there are typically three levels of management: top-level, middle-level, and
first-level. These three main levels of managers form a hierarchy, in which they are ranked in
order of importance.
Each of these management levels is described below in terms of their possible job titles and their
primary responsibilities and the paths taken to hold these positions. Additionally, there are
differences across the management levels as to what types of management tasks each does and
the roles that they take in their jobs.

TOP-LEVEL MANAGERS:
Top-level managers, or top managers, are also called senior management or executives.
These individuals are at the top one or two levels in an organization, and hold titles such
as: Chief Executive Officer (CEO), Chief Financial Officer (CFO), Chief Operational
Officer (COO), Chief Information Officer (CIO), Chairperson of the Board, President,
Vice president, Corporate head.
Often, a set of these managers will constitute the top management team, which is
composed of the CEO, the COO, and other department heads. Top-level managers make
decisions affecting the entirety of the firm. Top managers do not direct the day-to-day
activities of the firm; rather, they set goals for the organization and direct the company to
achieve them. Top managers are ultimately responsible for the performance of the
organization, and often, these managers have very visible jobs.
Top managers in most organizations have a great deal of managerial experience and have
moved up through the ranks of management within the company or in another firm. An
exception to this is a top manager who is also an entrepreneur; such an individual may
start a small company and manage it until it grows enough to support several levels of
management. Many top managers possess an advanced degree, such as a Masters in
Business Administration, but such a degree is not required.
Some CEOs are hired in from other top management positions in other companies.
Conversely, they may be promoted from within and groomed for top management with
management development activities, coaching, and mentoring. They may be tagged for
promotion through succession planning, which identifies high potential managers.
MIDDLE-LEVEL MANAGERS:
Middle-level managers, or middle managers, are those in the levels below top managers.
Middle managers' job titles include: General manager, Plant manager, Regional manager,
and Divisional manager.
Middle-level managers are responsible for carrying out the goals set by top management.
They do so by setting goals for their departments and other business units. Middle
managers can motivate and assist first-line managers to achieve business objectives.
Middle managers may also communicate upward, by offering suggestions and feedback
to top managers. Because middle managers are more involved in the day-to-day workings
of a company, they may provide valuable information to top managers to help improve
the organization's bottom line.
Jobs in middle management vary widely in terms of responsibility and salary. Depending
on the size of the company and the number of middle-level managers in the firm, middle
managers may supervise only a small group of employees, or they may manage very
large groups, such as an entire business location. Middle managers may be employees
who were promoted from first-level manager positions within the organization, or they
may have been hired from outside the firm. Some middle managers may have aspirations
to hold positions in top management in the future.

FIRST-LEVEL MANAGERS:
First-level managers are also called first-line managers or supervisors. These managers
have job titles such as: Office manager, Shift supervisor, Department manager,
Foreperson, Crew leader, Store manager.
First-line managers are responsible for the daily management of line workers—the
employees who actually produce the product or offer the service. There are first-line
managers in every work unit in the organization. Although first-level managers typically
do not set goals for the organization, they have a very strong influence on the company.
These are the managers that most employees interact with on a daily basis, and if the
managers perform poorly, employees may also perform poorly, may lack motivation, or
may leave the company.
In the past, most first-line managers were employees who were promoted from line
positions (such as production or clerical jobs). Rarely did these employees have formal
education beyond the high school level. However, many first-line managers are now
graduate of a trade school, or have a two-year associates or a four-year bachelor's degree
from college.

MANAGERIAL FUNCTIONS
Managers at different levels of the organization engage in different amounts of time on the four
managerial functions of planning, organizing, leading, and controlling.
Planning is choosing appropriate organizational goals and the correct directions to achieve those
goals. Organizing involves determining the tasks and the relationships that allow employees to
work together to achieve the planned goals. With leading, managers motivate and coordinate
employees to work together to achieve organizational goals. When controlling, managers
monitor and measure the degree to which the organization has reached its goals.
The degree to which top, middle, and supervisory managers perform each of these functions is
presented in Exhibit 1. Note that top managers do considerably more planning, organizing, and
controlling than do managers at any other level. However, they do much less leading. Most of
the leading is done by first-line managers. The amount of planning, organizing, and controlling
decreases down the hierarchy of management; leading increases as you move down the hierarchy
of management.
Question 12: What is leadership? What are different leadership styles?
Introduction:
Leadership is a process by which an executive can direct, guide and influence the behavior and
work of others towards accomplishment of specific goals in a given situation. Leadership is the
ability of a manager to induce the subordinates to work with confidence. Leadership is the
potential to influence behavior of others. It is also defined as the capacity to influence a group
towards the realization of a goal. Leaders are required to develop future visions, and to motivate
the organizational members to want to achieve the visions.

Definition:
According to Keith Davis, “Leadership is the ability to persuade others to seek defined
objectives enthusiastically. It is the human factor which binds a group together and motivates it
towards goals.”

Example:
Volunteer/non-profit leadership: If you’ve volunteered at a local foundation or non-profit
and took a leadership role even in one task or for one day you can mention this as leadership
experience.
Direct reports: If you’ve ever had direct reports, this is the most powerful example you can
give. If you hired people, did annual reviews, and had them reporting to you on a regular
basis, this shows your employer trusted you at a very high level.
Training/mentoring newer team members: You don’t need to have a Manager or
Supervisor job title to play a lead role in a past job. If you were ever asked to help get a new
team member up to speed, train them on the basics, or watch over them on their first few
weeks, that’s a great example of leadership experience.

Characteristics of Leadership
1. It is an inter-personal process in which a manager is into influencing and guiding workers
towards attainment of goals.
2. It denotes a few qualities to be present in a person which includes intelligence, maturity
and personality.
3. It is a group process. It involves two or more people interacting with each other.
4. A leader is involved in shaping and molding the behavior of the group towards
accomplishment of organizational goals.
5. Leadership is situation bound. There is no best style of leadership. It all depends upon
tackling with the situations.
Explanation:
Effective leadership includes exhibiting a strong character. Leaders exhibit honesty, integrity,
trustworthiness, and ethics. Leaders act in line with how they speak and earn the right to be
responsible for others’ success in the company. Strong leadership involves clear communication
skills. Leaders speak with and listen to staff members, respond to questions and concerns, and
are empathetic. Leaders use effective communication skills for moving the company forward and
achieving new levels of success. True leadership sees where the company is headed and plans the
steps needed to get there. Visualizing what is possible, following trends in the industry, and
taking risks to grow the business are all required of leaders.

Leadership styles:
1. Coach:
A coaching leader is someone who can quickly recognize their team members’ strengths,
weaknesses and motivations to help each individual improve. This type of leader often assists
team members in setting smart goals and then provides regular feedback with challenging
projects to promote growth. They’re skilled in setting clear expectations and creating a positive,
motivating environment.

2. Visionary
Visionary leaders have a powerful ability to drive progress and usher in periods of change by
inspiring employees and earning trust for new ideas. A visionary leader is also able to establish a
strong organizational bond. They strive to foster confidence among direct reports and colleagues
alike.

3. Servant
Servant leaders live by a people-first mindset and believe that when team members feel
personally and professionally fulfilled, they’re more effective and more likely to produce great
work regularly. Because of their emphasis on employee satisfaction and collaboration, they tend
to achieve higher levels of respect.

4. Autocratic
Also called the authoritarian style of leadership, this type of leader is someone who is focused
almost entirely on results and efficiency. They often make decisions alone or with a small,
trusted group and expect employees to do exactly what they’re asked. It can be helpful to think
of these types of leaders as military commanders.

5. Laissez-faire or hands-off
This leadership style is the opposite of the autocratic leadership type, focusing mostly on
delegating many tasks to team members and providing little to no supervision. Because a laissez-
faire leader does not spend their time intensely managing employees, they often have more time
to dedicate to other projects.
6. Democratic
The democratic leadership style (also called the participative style) is a combination of the
autocratic and laissez-faire types of leaders. A democratic leader is someone who asks for input
and considers feedback from their team before making a decision. Because team members feel
their voice is heard and their contributions matter, a democratic leadership style is often credited
with fostering higher levels of employee engagement and workplace satisfaction.

7. Pacesetter
The pacesetting leadership style is one of the most effective for driving fast results. These leaders
are primarily focused on performance. They often set high standards and hold their team
members accountable for hitting their goals.

8. Transformational
The transformational leadership style is similar to the coach style in that it focuses on clear
communication, goal-setting and employee motivation. However, instead of placing the majority
of the energy into each employee’s individual goals, the transformational leader is driven by a
commitment to organization objectives.

9. Transactional
A transactional leader is someone who is laser-focused on performance, similar to a pacesetter.
Under this leadership style, the manager establishes predetermined incentives—usually in the
form of monetary reward for success and disciplinary action for failure. Unlike the pacesetter
leadership style, though, transactional leaders are also focused on mentorship, instruction and
training to achieve goals and enjoy the rewards.

10. Bureaucratic
Bureaucratic leaders are similar to autocratic leaders in that they expect their team members to
follow the rules and procedures precisely as written.

Conclusion:
we can conclude that leadership is the ability to direct a group of people in realizing a common
goal. This is done by people applying their leadership attributes. Leaders create commitment and
enthusiasm amongst followers to achieve goals. Leadership is achieved through interaction
between leader, follower and environment. Leaders create commitment and enthusiasm amongst
followers to achieve goals.
 Question 13: What is Transaction processing system?

Introduction:
A Transaction Processing System is a set of information which processes the data transaction in
database system that monitors transaction programs. The system is useful when something is
sold over the internet. It allows for a time delay between when an item is being sold to when it is
actually sold. An example is that of a sporting event ticket. While the customer is filling out their
information to purchase the seat ticket; the transaction processing system is holding the ticket so
that another customer cannot also buy it. It allows for a ticket not to be sold to two different
customers.

Definition:
Transaction processing is a way of computing that divides work into individual, indivisible
operations, called transactions. A transaction processing system (TPS) is a software system, or
software/hardware combination, that supports transaction processing.

Explanation:
A transaction process system and transaction processing are often contrasted with a batch
process system and batch processing, where many requests are all executed at one time. The
former requires the interaction of a user, whereas batch processing does not require user
involvement. In batch processing the results of each transaction are not immediately available.
Additionally, there is a delay while the many requests are being organized, stored and eventually
executed. In transaction processing there is no delay and the results of each transaction are
immediately available. During the delay time for batch processing, errors can occur. Although
errors can occur in transaction processing, they are infrequent and tolerated, but do not warrant
shutting down the entire system.

Advantages of the transaction processing system:

1. The TPS keeps a stable database and reduces risk of loss of user information in the
occurrence of terminal or network failure.
2. The TPS is able to effectively recover from operating system failure and also handle system
failures depending on what stage the transaction was in when the system failure occurred.
3. The TPS can process large amount of data in real time or batches.
4. The use of TPS in organizations is a key feature in improving customer service and satisfaction.
5. A TPS allows for the user/customer to have a level of reliability and confidence during
transactions.
6. TPS is swift and cost-effective.
7. The use of TPS in businesses minimizes the occurrence of error during data transactions.
8. TPS is available in both batch and real time process
9. The TPS is designed to be user friendly.
Disadvantages of Transaction processing system:
1. TPS must be designed to exclusively fit the business/Organization needs.
2. TPS may be expensive to set up and install.
3. The use of TPS lacks a standard format.
4. Installation of TPS may be disturbed by hardware and software incompatibility.
5. Maintenance of a TPS requires the use of specialized personnel.
6. A TPS can be difficult to handle if the business is not large enough to utilize it.
7. User may need a good internet connection to access its services.
8. Third party interference may occur in real time (such as hackers and theft of identity etc.) due
to its online nature. Firewalls must be constantly upgraded else it will lead to loss of
customers as a result of not being secure.
9. TPS requires a lot of staff working in groups to keep up inventory.

Types of Transaction processing system:

Batch processing: Processes several transactions at the same time, with a time delay.
Real-time processing: Deals with one transaction at a time and does not have a time delay.

Differences between real time and batch:

both processed in the same manner
Real time requires more availability of master file for updating and referencing
Real time has fewer errors, as in batch the data is organized and stored before
updating Infrequent, yet tolerable, errors can occur in batch
More computers are required in real time processing
More difficult to maintain a real time system

Examples of real time transaction processing

Reservation systems
Used in any type of business involved in setting aside a product or server for a
customer. Require an acceptable response time

Point of sale terminals

Used by retail stores to sell goods and services
Correct price of the product is received one the product number is entered

Library loan system

Used to keep track of borrowed items
Barcodes are scanned on user's card and the item
This is recorded on the database
Similar to reservation systems.
Examples of batch transaction processing
Cheque clearance:
Written order asking a bank to transfer an amount of money to an account.
People deposit them into their account.
Involves checking the person has the correct funds.
Money is withdrawn when cheque has been cleared.

Bill generation:
Invoice given to a customer for a supplied goods or service
Generated at a scheduled time so the user can effectively manage their
time Done as a group

Credit card sales transactions(Manual)

Impression of customer's card is taken on a credit slip, to be filled by a sales
clerk Impression is sent to the bank as a group
Not processed immediately
Customers may view credit card transactions as real time, but the updating is batch

Characteristics of Transaction processing system

Rapid Response: The response time of a transaction processing system (TPS) is
important because a business cannot afford to have their customers waiting for long
periods of time before making a transaction.
Reliability: A good TPS must be very reliable because if it were to break down
businesses could lose a huge portion of revenue because customers would not be able to
purchase their products.
Inflexibility: The TPS must work the same way for every transaction as long as the TPS
is being used. The formality and structure should never change.
Controlled processing: The TPS must be able to allow authorized employees to be able
to access it at any time.

Conclusion:
A Transaction Processing System (TPS) is a type of information system that collects, stores,
modifies and retrieves the data transactions of an enterprise. Transaction processing systems also
attempt to provide predictable response times to requests, although this is not as critical as for
real-time systems.
 Question 14: What is transaction processing cycle?

Definition:
A cycle of basic transaction processing activities including data entry, transaction processing,
database maintenance, document and report generation, and inquiry processing.

Example:
The routines associated with general banking transactions typify the use of standard operating
procedures for the handling of deposits and withdraws, cashing of cheques, and other processes.

Explanation:
Transaction processing is a basic activity in organizations. It is a routine and repetitive activity
that triggers a few other activities like updating database and generation of documents forming a
cycle. The transaction processing cycle consists of six steps such as:
Data entry
Input data validation
Transaction processing and validation of results
File and database maintenance
Document and report
generation Inquiry processing

Stages of Transaction Processing Cycle:

Processing of inquiries: The system processes the inquiries made using the database.
Processing the transaction: Depending on the outcome of the inquiries, the system
processes the activity such as buying or selling.
Making decisions: The system uses application to support systems for planning,
analysis and decision making. Decisions are made on the transaction e.g. at what price
to sell.
Update master file: The system then stores the information relating to the transaction.
Produce reports: The system winds up by producing a report on the transaction

Conclusion:
Transaction Processing Cycle gives the complete detail about how the data will be entered,
validate, generation of the report, inquiry processing and database maintenance related to a
complete transaction. Hence it shows how a transaction will be completed in steps.
 Question 15: What is Decision Support System

Introduction:
A decision support system (DSS) is an information system that supports business or
organizational decision-making activities. DSSs include knowledge-based systems. A properly
designed DSS is an interactive software-based system intended to help decision makers compile
useful information from a combination of raw data, documents, and personal knowledge, or
business models to identify and solve problems and make decisions.

Definition:
A set of related computer programs and the data required to assist with analysis and decision-
making within an organization. DSS is intended to equip managers to generate information for
making right decisions. It is a system for decision making and problem solving.

Components of Decision Support System:

Organizational data: Relevant information and knowledge
A model: Mathematical and statistical formulae that represent the business and analyze data
A user interface: Dashboards or other interfaces allowing users to interact with and view
results

Classification of Decision Support System:

DSS components may be classified as:
Inputs: Factors, numbers, and characteristics to analyze
User knowledge and expertise: Inputs requiring manual analysis by the user
Outputs: Transformed data from which DSS "decisions" are generated
Decisions: Results generated by the DSS based on user criteria

Goals of Decision Support System:

Increase the effectiveness of the manager's decision-making process.
Supports the manager in the decision-making process but does not replace it.
Improve the Manager effectiveness of decision making.

Characteristics of Decision Support System:

• Incorporate both data and models
• Designed to assist managers in semi structured or unstructured decision-making processes
• Support, rather than replace, managerial judgment
• Aimed at improving the effectiveness (rather than efficiency) of decisions
Examples of Decision Support System:
GPS (analysis a help to choose fastest route or avoid toll/ police etc.)
Farmers use crop-planning tools to determine the best time to plant, fertilize and reap.
Medical diagnosis software that allows medical personnel to diagnose illnesses is another
example.

Advantages of Decision Support System:

Time savings. For all categories of decision support systems, research has demonstrated and
substantiated reduced decision cycle time, increased employee productivity and more timely
information for decision making.
Enhance effectiveness. A second category of advantage that has been widely discussed and
examined is improved decision making effectiveness and better decisions. Decision quality
and decision making effectiveness are however hard to document and measure.
Improve interpersonal communication. DSS can improve communication and collaboration
among decision makers. In appropriate circumstances, communications- driven and group DSS
have had this impact. Model-driven DSS provides a means for sharing facts and assumptions.
Competitive advantage. Vendors frequently cite this advantage for business intelligence
systems, performance management systems, and web-based DSS. Although it is possible to gain
a competitive advantage from computerized decision support, this is not a likely outcome.
Vendors routinely sell the same product to competitors and even help with the installation.
Cost reduction. Some researches and especially case studies have documented DSS cost
saving from labor savings in making decisions and from lower infrastructure or technology
costs. This is not always a goal of building DSS.
Increase decision maker satisfaction. The novelty of using computers has and may
continue to confound analysis of this outcome. DSS may reduce frustrations of decision
makers, create perceptions that better information is being used and/or creates perceptions
that the individual is a "better" decision maker.
Promote learning. Learning can occur as a by-product of initial and ongoing use of a DSS.
Two types of learning seem to occur: learning of new concepts and the development of a
better factual understanding of the business and decision making environment. Some DSS
serve as "de facto" training tools for new employees. This potential advantage has not been
adequately examined.
Increase organizational control. Data-driven DSS often make business transaction data
available for performance monitoring and ad hoc querying. Such systems can enhance
management understanding of business operations and managers perceive that this is useful.
What is not always evident is the financial benefit from increasingly detailed data.

Disadvantages of Decision Support System:

• Information Overload: A computerized decision making system may sometimes result in

information overload. Since it analyzes all aspects of a problem, it leaves a user in a dilemma
what to consider and what not to consider. Not each bite of information is necessary in
decision making. But when it’s present, a decision maker finds it difficult to ignore
information that is not a priority.
• Too much Dependence on DSS: It is true that decision support systems are integrated into
businesses to make everyday decisions faster and more easily. Some decision makers
develop a tendency to depend too much on computerized decision making and don’t want to
apply their own brains. Clearly, there is a shift in focus and decision makers may not hone
their skills further because of excessive dependence on DSS.
• Devaluation of Subjectivity: A decision support system promotes rational decision making
by suggesting alternatives basis the objectivity. While bounded rationality or restricted
irrationality plays a critical role in decision making, subjectivity cannot and should not be
rejected. A DSS promotes objectivity and relegates subjectivity, which can have serious
impact on a business.
• Overemphasis on Decision Making: Clearly the focus of computerized decision making is
on considering all aspects of a problem all the time, which may not be required in many of
the situations. It is essentially important to train the users to ensure effective and optimal use
of DSS.
• Cost of Development: The cost of decision making decreases once a decision support
system is installed. But development and implementation of a DSS requires a huge monetary
investment. Customization may attract higher cost. If you’re on a tight budget, you might not
get a customized DSS specific to your needs.

Types of Decision Support System:

Following are some typical DSSs.
• Status Inquiry System − It helps in taking operational, management level, or middle level
management decisions, for example daily schedules of jobs to machines or machines to
operators.
• Data Analysis System − It needs comparative analysis and makes use of formula or an
algorithm, for example cash flow analysis, inventory analysis etc.
• Information Analysis System − In this system data is analyzed and the information report
is generated. For example, sales analysis, accounts receivable systems, market analysis etc.
• Accounting System − It keeps track of accounting and finance related information, for
example, final account, accounts receivables, accounts payables, etc. that keep track of the
major aspects of the business.
• Model Based System − Simulation models or optimization models used for decision-
making are used infrequently and creates general guidelines for operation or management.
Conclusion of Decision Support System:
DSS can be extremely beneficial to any organization’s overall performance. However, DSS can
also be the cause of great confusion, misperception and even inaccurate analysis – these systems
are not designed to eliminate “bad” decisions. DSS are there to facilitate a manager in making
operational decisions, but the ultimate burden of responsibility lies with the manger. Managers
can sometimes be over-optimistic in their expectations of a DSS and develop an unrealistic
reliance on the system.
 Question 16: What is management reporting system?

Introduction:
Management reporting systems help in capturing data that is needed by managers to run an
effective business. Data could range from financial data, employee headcount, client, accounts,
products, client assets in custody, investment performance, etc. The scope of a management
reporting system is wide.

Definition:
Management control system that provides business information. This information can be in the
form of reports and/or statements. The system is designed to assist members of the management
by providing timely pertinent information

Advantages:
Improve decision making
Improves management effectiveness
Improves responsiveness to issues
Improve efficiency of resources in the delivery of organizational
services Identifying the problem
Evaluate alternate solutions
Implement the best solution
Review implementation

Objectives of MRS:
Means of communication: A report is used as a means of upward communication. A report
is prepared and submitted to someone who needs that information for carrying out the
functions of management.
Satisfy interested parties: Interested parties of management report are top management,
executives, government agencies, shareholders, creditors, customers and general public.
Different types of management reports are prepared to satisfy above mentioned interested
parties.
Serve as a record: Reports provide valuable and important records for reference in the
future. As the facts and investigations are recorded with utmost care, they become a rich
source of information for the future.
Legal requirements: Some reports are prepared to satisfy the legal requirements.
Basis to measure performance: Performance of each employee is prepared in a report form.
Control: Reports are the basis of control process. On the basis of reports, actions are
initiated and instructions are given to improve the performance
Essentials of Good MRS:
The report must have a suitable title.
The report should be simple and easily understandable.
A report should be prepared on time.
Proper Form: A good report should have a comprehensive form with suggestive title,
heading, sub heading and number of paragraphs as and where necessary for easy and
quick reference.
Contents: Simplicity is one of the requisites of reporting in relation to the contents of a
report. Further the contents should follow a logical sequence. Wherever necessary the
contents should be represented in the form of visual aids such as charts and diagrams etc.
Accuracy: Information conveyed should be accurate. This means that the person
responsible for reporting should have sufficient care in preparing the report as correctly
as possible within the parameters of possible accuracy in this regard.
Comparability: In order to ensure that the furnished information is useful, it is essential
that reports are also meant for comparison. The report should provide information about
both the actual and the budgeted performance of the budget period.
Consistency: In order to make a meaningful and useful comparison, uniform accounting
principles and procedures should be followed on consistent basis over a period of time for
collection, classification and presentation of accounting information.

Reports Generated by MRS:

Internal Report: Internal report is meant for different levels of management. This can be
classified into three types:
  
Report meant for top level management
  
Report meant for middle level management
 
Report meant for lower level management.
 External report: Prepared for meeting the requirements of persons outside the business,
such as shareholders, creditors, bankers, government, stock exchange and so on. External
report is brief in size as compared to internal report and they are prepared as per the statutory
requirements.
Enterprise Report: These reports are prepared for the concerns as a whole. These reports
serve as a channel of communication with outsiders. It may include income tax returns,
balance sheet, income statement, employment report, chairman’s reports and so on.
Control report: It deals with two aspects. One relates to the personal performance and other
deals with economic performance. The types of report are prepared for controlling the
performance.
Investigating Report: These reports are linked with control reports. These reports are
prepared when there is some serious problem arises for investigating and analyzing the
situation.
Routine reports: These reports are prepared about day-to-day working of the concern. They
are periodically sent to various levels of management. These reports may relate to sales
information, production figures, capital expenditures, purchase of raw materials, market
trends etc.
Special reports: These reports are prepared according to the need of situation. Available
accounting information may not be sufficient, so data may have to be specially collected.
Financial reports: Such reports provide information about financial position of the
undertaking. These reports may be prepared annually to show the financial position for the
year as in the case of balance sheet or periodically to show the cash position for a given
period as in the case of fund flow analysis and cash flow analysis.
Operating reports: These reports provide information about operations of the concern.
These reports can be classified into three types:
o Control reports, which are prepared to exercise control over various operation of
the business
o Information report, which are prepared for facilitating planning and policy
formulation in a business
o Venture measurement report which is prepared to show the result of a specific
venture undertaken as for example a new product line introduced.

Conclusion:
Effective Management Reporting Systems require skill to develop and implement. Correct
standards should be identified and measured. As the reporting system requires experience and
time to set up and maintain, it is recommended that enterprises consult dedicated professionals to
fulfil the role.
 Question 17: What is executive information system?
Introduction:
An executive information system (EIS) is a decision support system (DSS) used to assist senior
executives in the decision-making process. It does this by providing easy access to important data
needed to achieve strategic goals in an organization. An EIS normally features graphical displays on
an easy-to-use interface. Executive information systems can be used in many different types of
organizations to monitor enterprise performance as well as to identify opportunities and problems.

Definition:
An Executive Information System is a kind of decision support system used in organizations to
help executives in decision making. It does so by providing easy access to important data needed
in an organization to achieve strategic goals.
Components of Executive Information System:
EIS components can typically be classified as:
Hardware: The executive must be put first and the executive's needs must be defined
before the hardware can be selected. The basic hardware needed for a typical EIS includes
four components:
o Input data-entry devices.
o The central processing unit.
o Data storage files.
o Output devices
Software: Choosing the appropriate software is vital to an effective EIS. A typical EIS
includes four software components:
o Text-handling software
o Database
o Graphic base
o Model base
User interface: An EIS must be efficient to retrieve relevant data for decision makers, so
the user interface is very important.
Telecommunications: Transmitting data from one place to another has become crucial
for establishing a reliable network.

The Characteristics of Executive Information System (EIS):

Summarizing, Filter, and obtain detailed data.
Provides trend analysis, exception reporting and drill-down capabilities.
Can integrate external and internal data.
Easy to use.

Explanation:
An Executive Information System (EIS) is a computer-based information system that is designed
to directly satisfy the special information needs of top managers. An EIS enables management to
track the organization's performance, to focus on potential problem areas, and to take action to
address specific issues. This paper discusses some key application concerns in planning an EIS.
In order to make the discussion more concrete, it illustrates the use of an EIS in a retail bank
setting where management has to ensure that customers are provided with a high level of service.

Applications of Executive Information System:

Manufacturing: Transformation of the raw materials into finished goods for sale, or
intermediate processes involving the production – or finishing of semi-manufactures.
Marketing: In an organization, marketing executives’ role is to create the future. The main
duty is managing available marketing resources to create.
Financial: A financial analysis is one of the most important steps to companies today. EIS
enables executives to focus more on the long-term basis of current year and beyond.

Advantages of Executive Information System:

Easy for upper-level executives to use, extensive computer experience is not required
in operations
Provides strong drill-down capabilities to better analyze the given information.
Information that is provided is better understood
EIS provides timely delivery of information. Management can make decisions promptly.
Improves tracking information
Offers efficiency to decision makers

Disadvantages of Executive Information System:

System dependent
Limited functionality, by design
Information overload for some managers
Benefits hard to quantify
High implementation costs
May lead to less reliable and less secure
data Excessive cost for small company

Difference Between ESS and DSS:

ESS
Status access, drill down
Senior executives
Tracking and control, opportunity
identification
User-friendliness is must for EIS
Graphics is must
DSS
Analysis, decision support
Analysis , professionals, managers
Planning, organizing, staffing and controlling
User-friendliness is not must
Graphics is not must

Conclusion:
Executive Support Systems (ESS) or Executive Information Systems (EIS) provide a generalized
computing and communication environment to senior managers to support strategic decisions.
They draw data from the MIS and allow communication with external sources of information.
 Question 18: What is Artificial Intelligence? Why it is needed? Explain its
applications.

Introduction:
Artificial intelligence (AI) has received increased attention in recent years. Innovation, made
possible through the Internet, has brought AI closer to our everyday lives. These advances,
alongside interest in the technology’s potential socio-economic and ethical impacts, brings AI to
the forefront of many contemporary debates. The collection of “Big Data” and the expansion of
the Internet of Things (IOT), has made a perfect environment for new AI applications and
services to grow. Applications based on AI are already visible in healthcare diagnostics, targeted
treatment, transportation, public safety, service robots, education and entertainment, but will be
applied in more fields in the coming years. Together with the Internet, AI changes the way we
experience the world and has the potential to be a new engine for economic growth.

Definition:
The ability imparted to computers/devices to enable them to display intelligent, human-like
behavior. Artificial Intelligence is an approach to make a computer, a robot, or a product to think
how smart human think. And finally this study outputs intelligent software systems. The aim of
AI is to improve computer functions which are related to human knowledge, for example,
reasoning, learning, and problem-solving.

Why Artificial Intelligence is needed?

AI automates repetitive learning and discovery through
data. AI adds intelligence to existing products.
AI adapts through progressive learning algorithms to let the data do the programming. AI
analyzes more and deeper data using neural networks that have many hidden layers. AI
achieves incredible accuracy through deep neural networks – which was previously
impossible.
AI gets the most out of data. When algorithms are self-learning, the data itself can become
intellectual property. The answers are in the data; you just have to apply AI to get them out.
Artificial Intelligence will eliminate the need for you to perform tedious tasks.
AI is used to increase auto safety.

Applications of Artificial Intelligence:

Artificial Intelligence in Healthcare:
Companies are applying machine learning to make better and faster diagnoses than humans. One
of the best-known technologies is IBM’s Watson. It understands natural language and can
respond to questions asked of it. The system mines patient data and other available data sources
to form a hypothesis, which it then presents with a confidence scoring schema. AI is a study
 realized to emulate human intelligence into computer technology that could assist both, the
doctor and the patients in the following ways:
o By providing a laboratory for the examination, representation and cataloguing
medical information
o By devising novel tool to support decision making and research
o By integrating activities in medical, software and cognitive sciences
o By offering a content rich discipline for the future scientific medical communities.

Artificial Intelligence in business:

Robotic process automation is being applied to highly repetitive tasks normally performed by
humans. Machine learning algorithms are being integrated into analytics and CRM
(Customer relationship management) platforms to uncover information on how to better
serve customers. Chabot’s have already been incorporated into websites and e companies to
provide immediate service to customers. Automation of job positions has also become a
talking point among academics and IT consultancies.

AI in education:
It automates grading, giving educators more time. It can also assess students and adapt to
their needs, helping them work at their own pace.

AI in Autonomous vehicles:
Just like humans, self-driving cars need to have sensors to understand the world around them
and a brain to collect, processes and choose specific actions based on information
gathered.AI has several applications for these vehicles and among them the more immediate
ones are as follows:
o Directing the car to gas station or recharge station when it is running low on fuel.
o Adjust the trips directions based on known traffic conditions to find the quickest
route.
o Incorporate speech recognition for advanced communication with passengers.
o Natural language interfaces and virtual assistance technologies.
o AI for robotics will allow us to address the challenges in taking care of an aging
population and allow much longer independence. It will drastically reduce, may
be even bring down traffic accidents and deaths, as well as enable disaster
response for dangerous situations.

AI in Finance:
AI and finance industries are the best matches for each other. The finance industry is
implementing automation, Chabot, adaptive intelligence, algorithm trading, and machine
learning into financial processes.
AI in Data Security:
The security of data is crucial for every company and cyber-attacks are growing very rapidly
in the digital world. AI can be used to make your data safer and secure. Some examples such
as AEG bot, AI2 Platform, are used to determine software bug and cyber-attacks in a better
way.

AI in Social Media:
Social Media sites such as Facebook, Twitter, and Snapchat contain billions of user profiles,
which need to be stored and managed in a very efficient way. AI can organize and manage
massive amounts of data. AI can analyze lots of data to identify the latest trends, hashtag, and
requirement of different users.

AI in Travel & Transport:

AI is becoming highly demanding for travel industries. AI is capable of doing various travel
related works such as from making travel arrangement to suggesting the hotels, flights, and
best routes to the customers. Travel industries are using AI-powered chat bots which can
make human-like interaction with customers for better and fast response.

AI in Robotics:
Artificial Intelligence has a remarkable role in Robotics. Usually, general robots are
programmed such that they can perform some repetitive task, but with the help of AI, we
can create intelligent robots which can perform tasks with their own experiences without
pre-programmed.
Humanoid Robots are best examples for AI in robotics, recently the intelligent Humanoid
robot named as Erica and Sophia has been developed which can talk and behave like
humans.

AI in Entertainment:
We are currently using some AI based applications in our daily life with some entertainment
services such as Netflix or Amazon. With the help of ML/AI algorithms, these services show
the recommendations for programs or shows.

AI in Agriculture:
Agriculture is an area which requires various resources, labor, money, and time for best
result. Now a day's agriculture is becoming digital, and AI is emerging in this field.
Agriculture is applying AI as agriculture robotics, solid and crop monitoring, predictive
analysis. AI in agriculture can be very helpful for farmers.
Advantages of Artificial Intelligence:

AI would have a low error rate compared to humans, if coded properly. They would have
incredible precision, accuracy, and speed.
They won't be affected by hostile environments, thus able to complete dangerous tasks,
explore in space, and endure problems that would injure or kill us.
Replace humans in repetitive, tedious tasks and in many laborious places of work.
Predict what a user will type, ask, search, and do. They can easily act as assistants and can
recommend or direct various actions.
Can detect fraud in card-based systems, and possibly other systems in the future.
Organized and manages records.
Interact with humans for entertainment or a task as avatars or robots.
They can think logically without emotions, making rational decisions with less or no mistakes.
They don't need to sleep, rest, take breaks, or get entertained, as they don't get bored or tired.

Disadvantages of Artificial Intelligence:

Can cost a lot of money and time to build, rebuild, and repair. Robotic repair can occur to
reduce time and humans needing to fix it, but that'll cost more money and resources.
It's questionable: is it ethically and morally correct to have androids, human-like robots, or
recreate intelligence, a gift of nature that shouldn't be recreated? This is a discussion about AI
that's popular in the days.
Storage is expansive, but access and retrieval may not lead to connections in memory as well
as humans could.
Robots, with them replacing jobs, can lead to severe unemployment, unless if humans can fix
the unemployment with jobs AI can't do or severely change the government to communism.
As seen partially with smartphones and other technology already, humans can become too
dependent on AI and lose their mental capacities.
Machines can easily lead to destruction, if put in the wrong hands. That is, at least a fear of
many humans.

Conclusion:
AI has increased understanding of the nature of intelligence and provided an impressive array of
application in a wide range of areas. It has sharpened understanding of human reasoning, and of
the nature of intelligence in general.
 Question 19: What is financial information system?
Introduction:
A financial information system (FIS) accumulates and analyzes financial data used for optimal
financial planning and forecasting decisions and outcomes. An FIS is used in conjunction with a
decision support system, and it helps a firm attain its financial objectives because they use a
minimal amount of resources relative to a predetermined margin of safety. An FIS can be
thought of as a financial planner for electronic commerce that can also produce large amounts of
market and financial data at once obtained from financial databases worldwide.

Definition:
A financial information system is an organized approach to collecting and interpreting
information, which is usually computerized.

Examples of FIS:
Ensure that there are sufficient funds on hand to pay for obligations as they come due for payment.
Put excess funds to use in appropriate and reasonably liquid investments.
Determine which customers, products, product lines and subsidiaries are the most and least
profitable. Locate the bottleneck areas within the business.
Determine the maximum amount of funds that can safely be distributed to investors in the
form of dividends.
Determine the maximum debt load that the organization can sustain.

Explanation of FIS:
Financial data analysis may be conducted through trend evaluations, ratio analyses and financial
planning modeling. Data outputs that are produced by FIS can include

Operating and capital budgets

Working capital reports
Accounting reports
Cash flow forecasts

The predictive analytics included in these applications may also narrow down exactly what could
be expected from a business interaction or transaction that has yet to take place. The
management of financial information in an e-commerce business is paramount in order to gain
maximum operating results in the shortest amount of time. An FIS can also yield huge amounts
of data for daily business operations. Broker investigating, investment and trade data along with
fiscal asset classes can be relayed through an FIS. FIS is a form of real-time operating system
that works to enhance financial information exchanges.
Characteristics of FIS:
The fundamental qualitative characteristics:
Relevance: Financial information is regarded as relevant if it is capable of influencing the
decisions of users.
Faithful representation: This means that financial information must be complete, neutral
and free from error.

The enhancing qualitative characteristics:

Comparability: It should be possible to compare an entity over time and with similar
information about other entities.
Verifiability: If information can be verified (e.g. through an audit) this provides assurance to
the users that it is both credible and reliable.
Timeliness: Information should be provided to users within a timescale suitable for their
decision making purposes.
Understandability: Information should be understandable to those that might want to review
and use it. This can be facilitated through appropriate classification, characterization and
presentation of information.

Advantages of FIS:
Relevant Data Generation
Standard and Custom Analysis
Straight-Forward Interface
Lower Reporting Costs
Task-Suited System
Consistent and Reliable Content
Standardized Performance Data
Analytics-Based Design
Multi-Level Reports
Lower IT Costs

Conclusion:
Financial accountants maintain a business' balances and accounts. They keep the business
records legal and financially stable. Financial accounts relate to the past performance of the
business. They give an important baseline of financial information for managers. However, this
information is also publicly available to anyone else, including competitors, suppliers,
government and investors. Managers need to be able to see how the business has performed in
the past to enable them to look to the future.
 Question 20: What is Marketing MIS?

Introduction:
A Marketing MIS is a system that analyzes and assesses marketing information, gathered
continuously from sources inside and outside an organization or a store. An overall Marketing
Information System can be defined as a set structure of procedures and methods for the regular,
planned collection, analysis and presentation of information for use in making marketing
decisions. The Marketing Information System refers to the systematic collection, analysis,
interpretation, storage and dissemination of the market information, from both the internal and
external sources, to the marketers on a regular, continuous basis.

Definition:
A marketing information system (MKIS) is a management information system (MIS) designed to
support marketing decision making. Jobber defines it as a "system in which marketing data is
formally gathered, stored, analyzed and distributed to managers in accordance with their
informational needs on a regular basis."

Components:
User interfaces: The essential element is the managers who will use the system and the
interface they need to effectively analyze and use marketing information. The design of
the system will depend on what type of decision managers need to make.
Application software: These are the programs that marketing decision makers, use to
collect, analyze, and manage data for the purpose of developing the information
necessary for marketing decisions.
Databases: A marketing database is a system in which marketing data files are
organized and stored.
System support: This component consists of system managers who manage and
maintain the system assets including software and hardware network, monitor
its activities and ensure compliance with organizational policies.
Internal Records: The Company can collect information through its internal records
comprising of sales data, customer database, product database, financial data, operations
data, etc.

Explanation:
The marketing information system distributes the relevant information to the marketers who can
make the efficient decisions related to the marketing operations viz. Pricing, packaging, new
product development, distribution, media, promotion, etc. Every marketing operation works in
unison with the conditions prevailing both inside and outside the organization, and, therefore,
there are several sources (viz. Internal, Marketing Intelligence, Marketing Research) through
which the relevant information about the market can be obtained.
Applications:
Evaluating Marketing Campaign: Return on Investment (ROI) is always a major concern
when it comes to marketing or any other business expense. The idea is to check whether the
money you put into your marketing plan has resulted in a profit.
Breakeven Analysis: The purpose of doing a breakeven analysis is to determine exactly
when you can expect your business to cover all expenses and start generating a profit which
is a crucial milestone in the early days of any company. A company’s breakeven point is the
point at which its sales exactly cover its expenses.

Characteristics of Good Market Research:

Is scientific
Is creative
Uses multiple methods
Realizes the interdependence of models & data
Acknowledges the cost & value of information
Maintains “healthy” skepticism

Advantages:
Well organized Data collection
A broad perspective
Avoidance of Crisis.
Good Co-ordination
Better Analysis and Planning
Full Control

Disadvantages:
Opportunities may be missed.
There may be a lack of awareness of environmental changes and competitors' actions.
Data collection may be difficult to analyze over several time periods.
Marketing plans and decisions may not be properly
reviewed. Data collection may be disjointed.
Previous studies may not be stored in an easy to use
format. Time lags may result if a new study is required.
Actions may be reactionary rather than anticipatory.

Conclusion:
Information Systems are indispensable to the business, industry, academia and any organization
to meet the future challenges. Marketing information system is an important factor in a growing
business today with increased competition and environmental changes affecting the consumer
world. It is Marketing MIS that decides whether the organization will keep continue to run its
business or not.
 Question 21: What is production MIS?

Definition:
Production means transformation of raw material into finished products for sale. According to E.
L. Brech, “Production MIS is the process of effective planning and regulating the operations of
that section of an enterprise which is responsible for the actual transformation of materials into
products.” Its objective is to provide manufacturing service to the organization.

Application:
Production management is performed through production planning and control, bill of material
processing etc.

Explanation:
Production information system performs an integrating role with in the production system of any
organization. Management of activities/operations in a production system is concerned with
decision making related to different components of the system so as to accomplish the desired
output. These decisions can be divided as periodic-decisions viz. selection, design and updating
of resources, transformation process and methods, and continual decisions about day-to-day
operation and control of various activities/operations in the system. These decisions can also be
divided in planning, implementation and control categories.

Characteristics of Production Information System:

It should always be tailored to the need of a particular organization. It can never be specific
or general.
The involvement of top management in the formulation of production information system is
essential.
Data base should be wide.
It must be flexible and should be supplied timely.
Data should be capable of easy interpretation & presentation.
The cost of procuring the information must not over-ride the relative advantage accrued.

Disadvantages:
production scheduling can be complex.
The production scheduler has to learn product numbers, part numbers and specific information to
make it work.
Another potential problem with using production scheduling is the cost of implementation.
When you implement a production scheduling system you may need to buy software and other
resources to help facilitate the process.
You will also have to pay to have someone trained so the software can be used.
Components:

Long Term Planning: This implies planning the conversion system specifying the sequence
of operations, capacity of the system, plant location and its layout aspects. The decisions
derived have long term impact and are difficult to undo once implemented. Information for
taking such decisions is compiled periodically for determination of appropriate product mix.
Annual Production Plan: These are meant to plan the use of transformation process. These
plans are drawn from sales programs by optimizing inventory-carrying costs, costs on labor
with hiring and firing of personnel etc. These plans are revised periodically.
Inventory Control: It is generally expressed in terms of money and number of units
produced. It deals with preparation of master inventory and production schedules.
Production Scheduling: These decisions are to determine: what to make, when to make, how to
make, how much time is required to make it, production plan, bill of materials and operations
sheets providing the necessary information for the preparation of production schedules.
Dispatching: Time standards are formulated through operation/route sheets supplied by
planning and engineering departments. Cost standards are calculated through cost cards and
job tickets and the quality standards are prescribed by design & engineering sections.

Conclusion:
There are few areas in production management which required information for reporting to
authority. This provides information on day to day events. This provides the planning and
procedures of complete product on how to make it.