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Management Information Systems

Course MBA – 2nd Semester

Subject Management Information Systems

Assignment MB0047 – Set 1

Q1. What is MIS? Define the characteristics of MIS? What are the basic Functions of MIS? Give
some Disadvantage of MIS?
Ans. Definition :

Organized approach to the study of information needs of a management at every level in making
operational, tactical, and strategic decisions. Its objective is to design and implement man-machine
procedures, processes, and routines that provide suitably detailed reports in an accurate, consistent, and
timely manner. Modern, computerized systems continuously gather relevant data, both from inside and
outside the organization. This data is then processed, integrated, and stored in a centralized database (or
data warehouse) where it is constantly updated and made available to all who have the authority to access
it, in a form that suits their purpose.

Characteristics of MIS:
MIS is mainly designed to take care of the needs of the managers in the organization.
MIS aids in integrating the information generated by various departments of the organization.
MIS helps in identifying a proper mechanism of storage of data.
MIS also helps in establishing mechanism to eliminate redundancies in data.
MIS as a system can be broken down into sub systems.

The role and significance of MIS in business and its classification is explained. It is possible to understand
the various phases of development in MIS based on the type of system required in any organization.

Functions of MIS

1. Data processing
It includes the collection, transmission, storage, processing and output of data. It simplifies the statistics
and reduces to the lowest cost by supplying an unified format.
2. Function of prediction
It predicts the future situation by applying modern mathematics, statistics or simulation.

3. Function of plan
It arranges reasonably the plans of each functional department in accordance with the restrictions afforded
by enterprises and provides the appropriate planning reports according to different management.

4. Function of control
It monitors and inspects the operation of plans and comprises with the differences between operation and
plan in accordance with the data afforded by every functional department, and be assistant to managers to
control timely each method by analyzing the reasons why the differences comes into being.

5. Function of assistance
It derives instantly the best answers of related problems by applying to various of mathematics’ mode and
analyzing a plentiful data stored in computers in the hope of using rationally human resource, financial
resource, material resource and information resource for relative abundant economic benefits.


including legacy and relational data sources. Decision Support Systems (DSS) DSS is an interactive computer based system designed to help the decision makers to use all l the resources available and make use in the decision making.highly senstive requires constant monitoring. This will strengthen the DSS to take decisions in future.g. it becomes difficult to take a decision. 4. It can be used to generate reports of various lever management activities. Also it based on the methods and techniques of artificial intelligence and their core components are the knowledge base and the inference mechanisms. Q2. the manager can chose to update the database with such decisions. It is capable of performing mathematical calculations and logical calculation depending upon the model adopted to solve the problem.effectiveness decreases due to frequent changes in top management 6. A system which consists of database pertaining to decision making based on certain rules is known as decision support system. Manager may sometimes find it difficult to solve such problems. and data marts • Comparative sales figures between one week and the next • Projected revenue figures based on new product sales assumptions • The consequences of different decision alternatives. DSS is a consistent decision making system. It would take some trials to select a best strategy. It can work in the interactive mode in order to enable managers to take quick decisions. A DSS has the capability to update its decision database. DSS requires a lot of managerial abilities and managers judgment. 5. data warehouses.buddgeting of MIS extremely difficult.. It is a flexible system which can be customized to suit the organization needs. You can summarize the benefits of DSS into following: • Improves personal efficiency • Expedites problem solving • Facilitates interpersonal communication -2- .. To solve such problems you may have to use complex theories. The models that would be required to solve such problems may have to be identified.Quality of outputs governed by quality of inputs. You can consider decision support systems as the best when it includes high-level summary reports or charts and allow the user to drill down for more detailed information. Knowledge-based system focuses on systems that use knowledge-based techniques to support human decision-making. given past experience in a context that is described. learning and action it is a computer system that is programmed to imitate human problem-solving by means of artificial intelligence and reference to a database of knowledge on a particular subject. But the strategy to select the one most suitable under conditions prevailing in the market. 2. Since any of the multiple optima would give optimum results. Explain Knowledge based system? Explain DSS and OLAP with example? Ans. – In a sales problem if there is multiple decision variables modeled as a simple linear problem but having multiple optima. attitude of worker etc. You may gather and present the following information by using decision support application: • Accessing all of your current information assets. 3. cubes. There is no scope for errors in decision making when such systems are used as aid to decision making.takes into account only qualitative factors and ignores non-qualitative factors like morale of worker. Whenever manager feels that a particular decision is unique and not available in the system. In management many a time problems arise out of situations for which simple solution may not be possible. E. Under such circumstances it would be easy to take decision if a ready system of databases of various market conditions and corresponding appropriate decision is available. requires skills beyond the model.lack of flexiblity to update itself.Management Information Systems Disadvantages of MIS 1.

given past experience in a context that is described.g. Decision Support Systems (DSS) DSS is an interactive computer based system designed to help the decision makers to use all l the resources available and make use in the decision making.Management Information Systems • Promotes learning or training • Increases organizational control • Generates new evidence in support of a decision • Creates a competitive advantage over competition • Encourages exploration and discovery on the part of the decision maker • Reveals new approaches to thinking about the problem space Online Analytical Processing (OLAP) OLAP refers to a system in which there are predefined multiple instances of various modules used in business applications. A nearest match is found analytically and the results displayed form the database. The models that would be required to solve such problems may have to be identified. Product etc. cubes. The system goes through a series of multiple checks of the various parameters used in business decision making. You may gather and present the following information by using decision support application:  Accessing all of your current information assets. This process is mainly used to modernize and make the organizations efficient. what should be the stocking policy in order to minimize the wastage etc. Many big companies use OLAP to get good returns in business. The querying process of the OLAP is very strong. It helps the management take decisions like which month would be appropriate to launch a product in the market. Sales & demand. Any input to such a system results in verification of the facts with respect to the available instances. what should be the production quantity to maximize the returns. In management many a time problems arise out of situations for which simple solution may not be possible. The output is sent only after thorough verification of the input facts fed to the system. A model of OLAP may be well represented in the form of a 3D box. Q3. This process of change for the betterment of the organization is called as Business process re-engineering. It is used to gain an understanding the process of business and to understand the process to make it better and re-designing and thereby improving the system. data warehouses.What are Value Chain Analysis & describe its significance in MIS? Explain what is meant by BPR? What is its significance? How Data warehousing & Data Mining is useful in terms of MIS? Answer:- BPR The existing system in the organization is totally reexamined and radically modified for incorporating the latest technology. E.: Region. OLAP is also referred to as a multi dimensional analytical model. and data marts  Comparative sales figures between one week and the next  Projected revenue figures based on new product sales assumptions  The consequences of different decision alternatives. BPR directly affects the performance. To solve such problems you may have to use complex theories. -3- . There are six faces of the box. Each adjoining faces with common vertex may be considered to represent the various parameter of the business situation under consideration. including legacy and relational data sources. DSS requires a lot of managerial abilities and managers judgment.

paying amount and receiving the receipt of purchase and the process ends up with the exit from the store. flows. either tabular listings (queries) with minimal formatting or highly formatted “formal” reports on business activities. The data stored and the subsequent report generated out of a querying process enables decision making quickly. so that documents are worked upon more easily and efficiently. You will really appreciate the need of process improvement or change in the organizations conduct with business if you have ever waited in the queue for a longer time to purchase 1 kilo of rice from a Public Distribution Shop (PDS-ration shop). The main output from data warehouse systems are. And. Setting up queries on individual processes may be tedious and inefficient. payment which involves billing. or staff skills. It is called process because uniform standard system has been maintained to undertake such a task. With data mining. it enables them to determine the impact on sales. They do not explain how the processing takes place. customer satisfaction.Management Information Systems BPR is mainly used for change in the work process. There may be people who do this transaction or tools. Data warehouse is an archive of information collected from wide multiple sources. Explain DFD & Data Dictionary? Explain in detail how the information requirement is determined for an organization? Answer:- Data flow diagrams represent the logical flow of data within the system. and marketing organizations. competition. Data Mining – Data mining is primarily used as a part of information system today. This becomes a convenient way to handle the information being generated by various processes. getting it billed. We all do them at one point or another either as a supplier or customer. DFD uses few symbols like circles and rectangles connected by arrows to represent data flows. This is known as workflow management. the retailer could develop products and promotions to appeal to specific customer segments. Data Warehousing – Data Warehouse is defined as collection of database which is referred as relational database for the purpose of querying and analysis rather than just transaction processing. and corporate profits. Q4. various organizations or between individuals that is mainly used for transactions in business. at a single site. it enables them to “drill down” into summary information to view detail transactional data. Latest software is used and accordingly the business procedures are modified. Data warehousing is usually used to generate reports. a retailer could use point-of-sale records of customer purchases to send targeted promotions based on an individual’s purchase history. Signification of BPR Business process are a group of activities performed by various departments. Data warehouse is usually maintained to store heuristic data for future use. Decision makers require access to information from all sources. product positioning. DFD can easily illustrate relationships among data. receiving the needed item form the shop. This concept is useful for big companies having plenty of data on their business processes. and customer demographics. The process is called the check-out process. The system starts with forming a queue. external entities an stores. It enables these companies to determine relationships among “internal” factors such as price. by companies with a strong consumer focus – retail. It is the transaction between customer and supplier. DFD do not explain how the processes convert the input data into output. By mining demographic data from comment or warranty cards. and “external” factors such as economic indicators. This data is stored for a long time permitting the user an access to archived data for years. Big companies have bigger problems and complex problems. communication. Integration and separation of data are the two basic features need to be kept in mind while creating a data warehousing. stored under a unified scheme. DFD can also be drawn in -4- . Finally. financial.

and personal details of employees. ERP Before and After Before Prior to the concept of ERP systems. It can also have software to update itself and to produce reports on its contents and to answer some of the queries. inputs and outputs to end from the processes. Each system would have to rely on a set of common data to communicate with each other. The data dictionary can be used to retrieve the definition of data that has already been used in an application.Management Information Systems increasing levels of detail. starting with a summary high level view and proceeding o more detailed lower level views. The payroll department would typically calculate and store paycheck information. entailing continual readjustments in production. such as entities. The data dictionary also stores some of the description of data structures. attributes and relationships.  Make sure the diagrams are balanced Data Dictionary The data dictionary is used to create and store definitions of data. The numbers do not imply the sequence. departments within an organization (for example. led MRP (Material Requirement Planning) to evolve into a new concept : Manufacturing Resource Planning (or MRP2) and finally the generic concept Enterprise Resource Planning (ERP). Rounded rectangles represent processes that transform flow of data or work to be done.the boundary of the system. Q5. The HR computer system (often called HRMS or HRIS) would typically contain information on the department.  Avoid over complex DFD. For the HRIS to send salary information to the payroll system. format for storage and other characteristics. and the financial department) would have their own computer systems. over-frequent changes in sales forecasts. an employee number would need to be assigned and remain static between the two systems to accurately identify an employee. Around 1980. location. The financial department would typically store financial transactions for the organization. sometimes called files or databases. the human resources (HR)) department. as well as the unsuitability of the parameters fixed by the system. What is ERP? Explain its existence before and its future after? What are the advantages & Disadvantages of ERP? What is Artificial Intelligence? How is it different from Neural Networks? Answer:- Manufacturing management systems have evolved in stages over the few decades from a simple means of calculating materials requirements to the automation of an entire enterprise.  Number the processes consistently. Arrow represents data flows. The open-ended boxes represent data stores. the payroll department. These data stores correspond to all instances of a single entity in a data model. reporting structure. It is source or destination of data. The -5- . Rectangle represents external agents. A number of guideline should be used in DFD  Choose meaningful names for the symbols on the diagram.

however. here are some of the most common obstacles experienced: Usually many obstacles can be prevented if adequate investment is made and adequate training is involved.  Customization in many situations is limited  The need to reengineer business processes  ERP systems can be cost prohibitive to install and run  Technical support can be shoddy  ERP’s may be too rigid for specific organizations that are either new or want to move in a new direction in the near future. success does depend on skills and the experience of the workforce to quickly adapt to the new system. and so on. a large manufacturer may find itself with many software applications that do not talk to each other and do not effectively interface. For instance.Management Information Systems financial system was not interested in the employee-level data. as well as a lack of corporate policy protecting the integrity of the data in the ERP systems and how it is used. payments for employee benefits to providers. After ERP software. Artificial Intelligence -6- . including those implementing and testing changes. It standardized and reduced the number of software specialties required within larger organizations. combined the data of formerly separate applications. This provided complications. such as the tax payments to various authorities. While advantages usually outweigh disadvantages for most organizations implementing an ERP system. Tasks that need to interface with one another may involve:  A totally integrated system  The ability to streamline different processes and workflows  The ability to easily share data across various departments in an organization  Improved efficiency and productivity levels  Better tracking and forecasting  Lower costs  Improved customer service Disadvantages – Many problems organizations have with ERP systems are due to inadequate investment in ongoing training for involved personnel. but only in the payouts made by the payroll systems. This made the worry of keeping numbers in synchronization across multiple systems disappears. Advantages and Disadvantages Advantages – In the absence of an ERP system. a person could not be paid in the payroll system without an employee number. among other things.

Management Information Systems Artificial Intelligence is the science and technology based on various functions to develop a system that can think and work like a human being. This enables the network to operate and learn from the data it processes. Thus. The goal of AI is to develop computers that can simulate the ability to think. -7- . The human brain is estimated to have over 100 billion neuron brain cells. The systems which use this type of intelligence are known as artificial intelligent systems and their intelligence is referred to as artificial intelligence. It can reason. Chess-playing systems are some examples of such systems. biology. The more data examples it receives as input. Neural networks are computing systems modeled after the human brain’s mesh like network of interconnected processing elements. linguistics. the interconnected processors in a neural network operate in parallel and interact dynamically with each other. Also included are adaptive learning systems that can modify their behavior based on information they acquire as they operate. Distinguish between closed decision making system & open decision making system? What is ‘what – if‘analysis? Why is more time spend in problem analysis & problem definition as compared to the time spends on decision analysis? Answer:- If the manager operates in an environment not known to him. such as reasoning. similar to the human brain. hear. The conditions of this system in contrast closed decision-making system are: a) The manager does not know all the decision alternatives. the better it can learn to duplicate the results of the examples it processes. robotics and natural interfaces. Neural network software can learn by processing sample problems and their solutions. the main idea is to make the computer think like human beings. so that it can be then said that computers also have common sense. simulation of computer functions normally associated with human intelligence. Artificial Intelligence and Neural Networks Artificial intelligence is a field of science and technology based on disciplines such as computer science. called neurons. see. As neural nets start to recognize patterns. as humans do. learn. Applications in the cognitive science area of AI include the development of expert systems and other knowledge-based systems that add a knowledge base and some reasoning capability to information systems. conclude and solve problems. It was said that the computer don’t have common sense. psychology. Like the brain. The neural networks are lot simpler in architecture. analyze. In other words. More precisely the aim is to obtain a knowledge based computer system that will help managers to take quick decisions in business. they can solve semi- structured problems with incomplete knowledge by developing approximate inferences and answers. it learns to recognize patterns and relationships in the data. then the decision-making system is termed as an open decision-making system. learning and problem solving. Here in AI. Thus. walk. Fussy logic systems can process data that are incomplete or ambiguous. Cognitive science focuses on researching on how the human brain works and how humans think and learn. That is. the neural networks will change the strengths of the interconnections between the processing elements in response to changing patterns in the data it receives and results that occur Q 6. AI can be grouped under three major areas: cognitive science. they can begin to program themselves to solve such problems on their own. mathematics and engineering. talk and feel.

rule or model is available to study and finalise one decision among the set of decision alternatives. The model is analysed in four ways. c) No method. a decision is made but such decision needs to be analysed for conditions and assumptions considered in the decision model. if the considered values of variables or relationship change.’ Decision Analysis by Analytical Modelling Based on the methods discussed.  What if analysis • Goal Seeking Analysis  Sensitivity analysis • Goal Achieving analysis -8- . What if analysis Decisions are made using a model of the problem for developing various solution alternatives and testing them for best choice. The knowledge of the outcome may be a probabilistic one. This method of analysis is called ‘what if analysis. The process is executed through analytical modelling of problem and solution.Management Information Systems b) The outcome of the decision is also not known fully. The model is built with some variables and relationship between variables considered values of variables or relationship in the model may not hold good and therefore solution needs to be tested for an outcome.

copier.Management Information Systems Course MBA – 2nd Semester Subject Management Information Systems Assignment MB0047 – Set 2 Q1. fax. PDA etc. Advantage of PC in Organization for MIS activities Speed: A PC can process data at a very high speed. Communication: PC with internet is used as a powerful tool of communication for every business activity. Business people across the globe travel a lot to meet their business partner. It supports various applications like MS-Office. colleague and customer etc to discuss about business activities. MS-Power Point: Power point is used for presentation -9- . Storage: A PC can store large amount of data in a small space. Accuracy: A PC is highly reliable in the sense that it could be used to perform calculations continuously for hours with a great degree of accuracy. Some of the types commonly used in business are desktop computer. Lotus Smart Suite. Information can easily transform from one place to another place. scanners etc are used in organization to support various MIS activities of the organization. Computers are widely used to support in MIS activities. machines. How hardware & software support in various MIS activities of the organization? Explain the transaction stages from manual system to automated systems? Ans. graphs. Software support in MIS activities MS-Windows: Windows is an operating system. It can process millions of instructions within fractions of seconds. Generally hardware in the form of personal computers and peripherals like printers. MS-WORD: It is used for letter drafting. Outlook etc. MS-Excel: It is used to make charts. notebook computer. Conferencing: A PC with internet offers facility of video conferencing worldwide. pivot tables and MIS reports etc.

ANN does not. Another alternative sees competition as a process linked to innovation in product. or technology. The following are compiled by Jiang et al. (2000). or reducing the edge of. Change in decision making approach · Uncertainty or unfamiliarity or misinformation · Job security The major behavioral factors are a) Decision styles symbolic processing of AI is heuristic.Management Information Systems Q2. and defending them against imitation by other firms. Over expectation was observed in most early intelligent systems. market. reasons that employees resist new systems: · Change in job content · Loss of status · Change in interpersonal relationships · Loss of power. its adversaries. it is found that a majority is concerned with competition between corporations. d) the threat of substitute products. Strategic information systems theory is concerned with the use of information technology to support or sharpen an enterprises competitive strategy. how can performance of individual corporations be determined? Ans: Behavioral factors The implementation of computer based information systems in general and MSS in particular is affected by the way people perceive these systems and by how they behave in accepting them. e) Resistance to change can be strong in MSS because the impacts may be significant. The performance of individual corporations is determined by the extent to which they manage the following (as given by Porter) a) the bargaining power of suppliers b) the bargaining power of buyer c) the threat of new entrants. Explanation can reduce resistance to change c) Organizational climate ± some organizations lead and support innovations and new technologies whereas others wait and lag behind in making changes d) Organizational expectations ± over expectation can result in disappointments and termination of innovation. Porters Forces Driving Industry Competition (Porter 1980) There are two basic factors which may be considered to be adopted by organization in their . Competition means cultivating unique strengths and capabilities. Competitive strategy is an enterprises plan for achieving sustainable competitive advantage over. User resistance is a major behavioral factor associated with the adoption of new systems. DSS and ANN are analytic b) Need for explanation ES provides explanation.10 - . DSS may provide partial explanation. Explain the various behavioral factors of management organization? As per Porter. and e) Rivalry among existing firms. Performance Out of many possible interpretations of a strategy an organization adopts in business.

Another important consideration in positioning isµ competitive scope. Under Porters framework. the users understanding of the systems and the complexity and its interface with other systems. Compare various types of development aspect of Information System? Explain the various stages of SDLC? Ans: Development of Information Systems a) Development and Implementation of the MIS Once the plan for MIS is made. the development strategy is Prototyping of the System. Prototyping is a process of progressively ascertaining the information needs. developing methodology. trying it out on a smaller scale with respect to the data and the complexity.Management Information Systems strategies: a) low cost b) product differentiation Enterprise can succeed relative to their competitors if they possess sustainable competitive advantage in either of these two. The real problem is the degree of structure. b) Prototype Approach When the system is complex. The development becomes a method of approach with certainty in input process and outputs. ensuring that it satisfies the needs of the users. enterprises have four generic strategies available to them whereby they can attain above-average performance. decision-making and the understanding of the overall business activity. . Here. and the array of related industries in which it competes. As discussed earlier. Higher the degree of structured-ness and formalisation. the procedures. the development of the MIS. and assess the problems of development and implementation. i. and their needs are clearly understood and respected mutually. the range of product varieties it offers. The designer first develops systems independently and starts integrating them with other systems. calls for determining the strategy of development. or the breadth of the enterprises target markets within its industry. enlarging the system scope and meeting the varying information needs. Q 3. the types of buyers it serves. and formalisation in the system and procedures which determine the timing and duration of development of the system. The development strategy determines where to begin and in what sequence the development can take place with the sole objective of assuring the information support. They are: a) cost leadership b) differentiation c) cost focus d) focused differentiation.e.11 - . Determining the position of the system in the MIS is easy. greater is the stabilization of the rules. the size of the system. the distribution channels it employs. The choice of the system or the sub-system depends on its position in the total MIS plan. the plan consists of various systems and subsystems. it is observed that the users and the designers interaction is smooth. the geographic areas in which it sells.

This call upon each individual to comply with the design needs and provide without fail the necessary data inputs whenever required as per the specification discussed and finalised by the designer. collection and analysis. For example. There are two types of design: database design and application design. implementation. helps considerably. testing and operation. is the managerial task of the system designer. . They are confronted with the challenging task of creating new systems an planning major changes in the organization. It may be represented in the form of a block diagram as shown below: a)Feasibility study: It is concerned with determining the cost effectiveness of various alternatives in the designs of the information system and the priorities among the various system components. When it comes to information the functional. In the prototyping approach. identifies the problem areas. Stages of SDLC System development cycle stages are sometimes known as system study. System concepts which are important in developing business information systems expedite problem solving and improve the quality of decision-making. of the state of art. The system analyst gives a system development project. The qualification. the departmental. This may call upon changing the prototype of the system. b) Requirements. meaning and direction. d) Prototyping: A prototype is a simplified implementation that is produced in order to verify in practice that the previous phases of the design were well conducted. collection and analysis: It is concerned with understanding the mission of the information systems.12 - . as a corporate resource. The system analyst has to do a lot in this connection. that is. The attitudes of various users and their role as the originators of the data need to be developed with a high degree of positivism. The typical breakdown of an information systems life cycle includes a feasibility study. validation. inadequacies in the prototype vis-à-vis fulfillment of the information needs. It requires. The designer then takes steps to remove the inadequacies.Management Information Systems This process. the designers task becomes difficult. the application areas of the system within the enterprise and the problems that the system should solve. a lot of input data comes from the purchase department. c) Design: It is concerned with the specification of the information systems structure. which is used in accounts and inventory management. in overcoming the problem of changing the attitudes of the multiple users and the originators of the data. questioning the information needs. streamlining the operational systems and procedures and move user interaction. Bringing the multiple users on the same platform and changing their attitudes toward informa- tion. therefore. and an understanding of the corporate business. The database design is the design of the database design and the application design is the design of the application programs. and all have to contribute as per the designated role by the designer to fulfil the corporate information needs. of all personnel. requirements. design. experience. the personal boundaries do not exist. prototyping. when there are multiple users of the same system and the inputs they use are used by some other users as well. knowledge. to appreciate that the information is a corporate resource.

and knowledge management systems. E- business enterprise is open twenty-four hours. and being independent. technology-enabled and uses its own information and knowledge to perform. In E-business enterprise. SCM. It is lean in number. Q4. reduction in inventory. and CRM supported by data warehouse. E-business enterprise is more process-driven. Today most of the business organisations are using Internet technology. E-commerce solutions to reach faraway locations to deliver product and services. network. product. SCM.13 - . . Compare & Contrast E-enterprise business model with traditional business organization model? Explain how in E-enterprise manager role & responsibilities are changed? Explain how manager is a knowledge worker in E-enterprise? Ans: Managing the E-enterprise Due to Internet capabilities and web technology. It has empowered customers and vendors / suppliers through secured access to information to act. decision support. It is no longer functional. use digital technologies and work on databases. traditional business organisation definition has undergone a change where scope of the enterprise now includes other company locations.Management Information Systems e) Implementation : It is concerned with the programming of the final operational version of the information system. flat in structure. Internet capabilities have given E-business enterprise a cutting edge capability advantage to increase the business value. directories and document repositories. faster communication and effective collaborative working. customers transact business anytime from anywhere. competitiveness and profitability. It has opened new channels of business as buying and selling can be done on Internet. The effect of these radical changes is the reduction in administrative and management overheads. and CRM run on Internet (Internet / Extranet) & Wide Area Network (WAN). vendors. most of the things are electronic. It enables to reach new markets across the world anywhere due to communication capabilities. wherever necessary. The business processes are conducted through enterprise software like ERP. Implementation alternatives are carefully verifies and compared. The cost of business operations has come down significantly due to the elimination of paper-driven processes. It is replaced by people organisations that are empowered by information and knowledge to perform their role. broad in scope and a learning organisation. f) Validation and testing: It is the process of assuring that each phase of the development process is of acceptable quality and is an accurate transformation from the previous phase. The enterprise solutions like ERP. knowledge bases. business partners. and wireless technology for improving the business performance measured in terms of cost. application packages. In E-business enterprise traditional people organisation based on µCommand Control¶ principle is absent. managers. efficiency. Hence today¶s business firm is also called E- enterprise or Digital firm. They are supported by information systems. They are using E-business. All this is possible due to Internet and web moving traditional paper driven organisation to information driven Internet enabled E-business enterprise. and decision-support systems. customers and vendors. faster delivery of goods and services to the customers. The business processes across the organisation and outside run on E-technology platform using digital technology. and project or matrix organisation of people but E-organisation where people work in network environment as a team or work group in virtual mode. It has no geographic boundaries as it can extend its operations where Internet works.

A service level agreement (frequently abbreviated as SLA) is a part of a service contractw here the level of service is formally defined. white goods and many such goods are bought and sold on Internet. MIS produces more knowledge-based products. & use of Credit cards. Knowledge management system is formally recognized as a part of MIS. This technology offers a solution to communicate. This is just not a technical change in business operations but a cultural change in the mindset of managers and workers to look beyond the conventional organisation. where integration of multinational information systems using different communication standards. which uses Internet and web technology and uses E-business and E-commerce solutions. work practices. What do you understand by service level Agreements (SLAs)? Why are they needed? What is the role of CIO in drafting these? Explain the various security hazards faced by an IS? Ans. This change has affected the organisation structure. Books. and laws of security are to be adhered strictly. automated. Another challenge is to convert domestic process design to work for international process. Buyers and sellers through Internet drive the market and Internet-based web systems. Automate processes after re-engineering the process to cut down process cycle time. country-specific accounting practices. Allow people to work from anywhere. Make use of groupware technology on Internet platform for faster response processing. increase in profit and productivity and so on. insurance. considering multiple locations and multiple information needs arising due to global operations of the business into a comprehensive MIS. In E-enterprise. The new channel of business is well-known as E-commerce. business is conducted electronically.Management Information Systems The paradigm shift to E-enterprise has brought four transformations. Buying and selling is possible on Internet. In practice. healthcare are being managed through Internet E-banking. To achieve the said benefits of E-business organisation. Internet and networking technology has thrown another challenge to enlarge the scope of organisation where customers and vendors become part of the organisation. computer. E-billing. namely: a) Domestic business to global business. CDs. E-money are the examples of the E- commerce application.tion to realize the benefits of digital firm. On the same lines. The basis of conventional organisation design is command & control which is nowcol l aborat es& cont rol . E-audit. It is effectively used for strategic planning for survival and growth. scope of operations. c) Enterprise Resource Management to Enterprise Network Management d)· Manual document driven business process to paperless. b) Industrial manufacturing economy to knowledge-based service economy. Get rid of rigid established infrastructure such as branch office or zonal office. internet service providers will commonly include service level agreements within the terms of their contracts with customers to define the level(s) of .14 - . workflows. Q5. The role of MIS in E-business organization is to deal with changes in global market and enterprises. the term SLA is sometimes used to refer to the contracted delivery time (of the service) or performance. As an example. The last but not the least important is the challenge to organise and implement information architecture and information technology platforms. it is necessary to redesign the organisa. MIS for E-business is different compared to conventional MIS design of an organisation. Smart card. electronically transacted business process. reporting mechanisms. vendors and business partners. banking. The organisation structure should be lean and flat. It means changing the organisation behaviour to take competitive advantage of the E-business technology. and collaborate with customers. is a reality and is going to increase in number. ATM. These transformations have made conventional organisation design obsolete. The digital firm. and business processes at large. co-ordinate.

This can be a legally binding formal or informal “contract” (see internal department relationships). Role of CIO in drafting SLAS One of the major responsibilities of the CIO is to establish the credibility of the systems organization. and to encourage their use. and develop metrics that track the performance of the information systems staff. The information systems management also has the job of helping the end users adapt to the changes caused by information systems. infrastructure. One of the major roles of the CIO is to make the organization information systems savvy and increase the technological maturity of the information systems organization. More dangerous are the problems which are created by human beings due to the omission. as well as the equipment comprising the applications. Most IT organizations do not have any idea of the life cycle of an application  how long they want it to last. CIOs need to institute life cycle management with their applications and computer equipment. software and hardware errors course the biggest problem. If the CIO wants to be taken seriously. . Other business departments have them. It sets the expectation on the technical areas of theCIO’s operations. it is easy for applications to linger long after they should be gone. such as network and server uptime. they should set up what is expected and what levels of service the equipment will provide. is to implement service level agreements (SLAs) with business units. There are softwares to help with the people picture. Finally. and for companies to spend far too much money on maintaining ailing applications. Security Hazards faced by an Information system: Security of the information system can be broken because of the following reasons: i)Malfunctions: In this type of security hazard. how this can help them perform better. so that he can effectively measure his internal business performance. the staff needs to understand where the service is being used to be properly remunerated or to demonstrate where the value is.Management Information Systems service being sold in plain language terms (typically the (SLA) will in this case have a technical definition in terms ofM TTF. The first step. or disposed of. they say. all the components of a system are involved. replaced.A major part of the CIO’s job is to make the users aware of the opportunities arising as a result of technical innovations. etc. The systems department should not only focus on providing better service to the various lines of business but also help businesses operate better. For example. If information systems are now providing a service. Measurements in IT tend to be vague and lacking in context. and networks under the CIO’s control. Lacking this knowledge. he needs to do what other executives do and have his own business metrics and performance measurements. neglect and incompetence. People. may be used by internal groups to support SLA(s). but CIOs generally do not because IT has always been viewed as a cost center.15 - . Operating LevelAgreements or OLA(s). and CIOs must have a firm handle on how that equipment is being used. The underlying SLAs should be some sort of a chargeback system with business units.At a minimum. and I did them well. particularly when it comes to apportioning staff time. ‘I had 14 projects last year. and familiarizing them with computers and information systems applications.M TT R.’ But there is no real business measurement there. How many projects should the manager have had? Did he really have the capacity to handle 14 projects? ACIO should explore running their area more like a service operation rather than a cost center.Contracts between the service provider and other third parties are often (incorrectly) called SLAs  as the level of service has been set by the (principal) customer. and when it needs to be refurbished. The second part of the IT operations equation is computer equipment. various data rates. however.) A service level agreement (SLA) is a negotiated agreement between two parties where one is the customer and the other is the service provider. there can be no “agreement” between third parties (these agreements are simply a “contract”). and there are other products that can monitor hardware performance.

16 - . cheating or deceit. iii) Power and communication failure: In some locations they are the most frequent hazards than any other else because availability of both of them depends upon the location. the hot-item printer if it is a hot sandwich or the bar printer if it is a drink. Q6. This may help later in management decisions. This ordering system eliminates the old three-carbon-copy guest check system as well as any problems caused by a waiters handwriting. This can be done through a) Infiltration and industrial espionage b) Tapping data from communication lines c) Unauthorized browsing through lines by online terminals. This gives the waiters faster feedback. A customers meal check-listing (bill) the items ordered and the respective prices are automatically generated.Management Information Systems ii) Fraud and unauthorized access: This hazard is due to dishonesty. The order is routed to a printer in the appropriate preparation area: the cold item printer if it is a salad. etc. Ans. This helps management plan menus according to customers tastes. the cooks send out an  out of stock message. and then enters it online via one of the six terminals located in the restaurant dining room. enabling them to give better service to the customers. allowing planning for tighter cost controls. All potential users were asked to give their impressions and ideas about the various systems available before one was chosen . CASE SUMMARY A waiter takes an order at a table. The system also compares the weekly sales totals versus food costs. Case Study: Information system in a restaurant. especially if the voids consistently related to food or service. which will be displayed on the dining room terminals when waiters try to order that item. Other system features aid management in the planning and control of their restaurant business. In addition. When the kitchen runs out of a food item. whenever an order is voided. the reasons for the void are keyed in. Sometimes communication channel are busy or noisy. Acceptance of the system by the users is exceptionally high since the waiters and waitresses were involved in the selection and design process. There are power cuts and sometimes high voltage serge destroys a sensitive component of the computer. The system provides up- to-the-minute information on the food items ordered and breaks out percentages showing sales of each item versus total sales.